Document:

EX-10.8

 Exhibit 10.8 

THIRD AMENDMENT TO 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 30th
day of September 2013 (the “Supplemental Effective Date”), by and between SILICON VALLEY BANK (“Bank”), MARIN SOFTWARE INCORPORATED, a Delaware corporation (“Marin”) whose
address is 123 Mission Street, 25th Floor, San Francisco, California 94105, MARIN SOFTWARE LIMITED, a company registered under the laws of England and Wales (“Marin Ltd”), and MARIN SOFTWARE LIMITED, a company incorporated in
Ireland (“Marin Ireland”; and together with Marin and Marin Ltd, individually and collectively, the “Borrower”). 

RECITALS 

A. Bank and Borrower have entered into that certain Amended and Restated Loan and Security Agreement dated as of December 9, 2011
(as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). 

B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement. 

C. Borrower has requested that Bank amend the Loan Agreement to extend the Revolving Line Maturity Date and make certain other revisions
to the Loan Agreement as more fully set forth herein. 
 D. Although Bank is under no obligation to do so, Bank is willing to extend
the Revolving Line Maturity Date and amend certain provisions of the Loan Agreement, all on the terms and conditions set forth in this Agreement, so long as Borrower complies with the terms, covenants and conditions set forth in this Agreement in a
timely manner. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 

1. Definitions. Capitalized terms used but not defined in this Amendment, including its preamble and recitals, shall have the
meanings given to them in the Loan Agreement. 
 2. Amendments to Loan Agreement. 

2.1 Section 2.1.1 (Revolving Advances). Section 2.1.1(a) of the Loan Agreement is hereby amended by deleting it in its
entirety and replacing it with the following: 
 (a) Availability. Subject to the terms and conditions of this
Agreement and to deduction of Reserves, Bank shall make Advances not exceeding the Availability 

 
Amount. Each LIBOR Advance, if any, must be in an aggregate principal amount of not less than One Million Dollars ($1,000,000) or a whole multiple of One Million Dollars ($1,000,000) in excess
thereof. Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 

2.2 Section 2.6 (Payment of Interest on the Credit Extensions). Section 2.6 of the Loan Agreement is hereby amended by
deleting it in its entirety and replacing it with the following: 
 2.6 Payment of Interest on the Credit Extensions. 

(a) Interest; Payment. Subject to Section 2.6(f), each Advance shall bear interest on the outstanding principal
amount thereof from the date when made, continued or converted until paid in full at a rate per annum equal to (i) for Prime Rate Advances, the Prime Rate plus the applicable Prime Rate Margin, and (ii) for LIBOR Advances, the LIBOR Rate
plus the applicable LIBOR Rate Margin. On and after the expiration of any Interest Period applicable to any LIBOR Advance outstanding on the date of occurrence of an Event of Default or acceleration of the Obligations, the amount of such LIBOR
Advance shall, during the continuance of such Event of Default or after acceleration, bear interest at a rate per annum equal to the Prime Rate plus five percent (5.00%). Pursuant to the terms hereof, interest on each Advance shall be paid in
arrears on each Interest Payment Date. Interest shall also be paid on the date of any prepayment of any Advance pursuant to this Agreement for the portion of any Advance so prepaid and upon payment (including prepayment) in full thereof. All accrued
but unpaid interest on the Advances shall be due and payable on the Revolving Line Maturity Date. 
 (b) Equipment
Advances. Subject to Section 2.6(f), the principal amount outstanding for each (i) Equipment Advance shall accrue interest at a fixed per annum rate equal to five and one half of one percent (5.50%) and (ii) Supplemental
Equipment Advance shall accrue interest at a fixed per annum rate equal to three percent (3.00%), which interest shall be payable monthly in accordance with Section 2.6(g) below. 

(c) Prime Rate Advances. Each change in the interest rate of the Prime Rate Advances based on changes in the Prime Rate
shall be effective on the effective date of such change and to the extent of such change. 
 (d) LIBOR Advances. The
interest rate applicable to each LIBOR Advance shall be determined in accordance with Section 3.5(a) hereunder. Subject to Sections 3.6 and 3.7, such rate shall apply during the entire Interest Period applicable to such LIBOR Advance, and
interest calculated thereon shall be payable on the Interest Payment Date applicable to such LIBOR Advance. 
 (e)
Computation of Interest. Any interest hereunder will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days in the case of any Credit Extension outstanding in any Currency other than

  
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Pounds Sterling, and a year of 365 days in respect of any Credit Extension outstanding in Pounds Sterling. In computing interest on any Credit Extension, the date of the making of such Credit
Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. 

(f) Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall
bear interest at a rate per annum which is five percentage points (5.0%) above the rate that is otherwise applicable thereto (the “Default Rate”). Fees and expenses which are required to be paid by Borrower pursuant to the Loan
Documents (including, without limitation, Bank Expenses) but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in
this Section 2.6(f) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 

(g) Payment; Interest Computation. Interest with respect to Equipment Advances is payable monthly on the last calendar
day of each month and shall be computed on the basis of a 360-day year for the actual number of days elapsed. In computing interest, (i) all payments received after 12:00 p.m. Pacific time on any day shall be deemed received at the opening of
business on the next Business Day, and (ii) the date of the making of any Credit Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is
made, such day shall be included in computing interest on such Credit Extension. 
 2.3 Section 2.7 (Fees). Section 2.7 of
the Loan Agreement is hereby amended by adding Sections 2.7(h) in its entirety immediately after Section 2.7(g) of the Loan Agreement as follows: 

(h) 2013 Revolving Commitment Fee. A fully earned, non-refundable commitment fee of Thirty-Seven Thousand Seven Hundred
Fifty Dollars ($37,500) (the “2013 Revolving Commitment Fee”) shall be paid to Bank on July 31, 2014. 
 2.4
Section 3.4 (Procedures for Borrowing). Section 3.4(a) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

3.4 Procedures for Borrowing. 

(a) Advances. 

(i) Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this
Agreement, an Advance shall be made upon Borrower’s irrevocable written notice delivered to Bank by electronic mail in the form of a Notice of Borrowing executed by an Authorized Signer or without instructions if any Advances is necessary to
meet Obligations which have become due. Such Notice of 

  
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Borrowing must be received by Bank prior to 12:00 p.m. Pacific time, (i) at least three (3) Business Days prior to the requested Funding Date, in the case of any LIBOR Advance, and
(ii) on the requested Funding Date, in the case of a Prime Rate Advance, specifying: (1) the amount of the Advance; (2) the Currency in which such Advance shall be denominated; (3) the requested Funding Date; (4) whether the
Advance is to be comprised of LIBOR Advances or Prime Rate Advances; and (5) the duration of the Interest Period applicable to any such LIBOR Advances included in such notice; provided that if the Notice of Borrowing shall fail to specify the
duration of the Interest Period for any Advance comprised of LIBOR Advances, such Interest Period shall be one (1) month. In addition to such Notice of Borrowing, Borrower must promptly deliver to Bank by electronic mail a completed Transaction
Report executed by an Authorized Signer together with such other reports and information, including without limitation, sales journals, cash receipts journals, accounts receivable aging reports, as Bank may request in its sole discretion. 

(ii) On the Funding Date, Bank shall credit proceeds of an Advance to the Designated Deposit Account denominated in the same
Currency as the Currency requested with respect to the Advance and, subsequently, shall transfer such proceeds by wire transfer to such other account as Borrower may instruct in the Notice of Borrowing. No Advances shall be deemed made to Borrower,
and no interest shall accrue on any such Advance, until the related funds have been deposited in the applicable Designated Deposit Account. 

2.5 Section 3 (Conditions of Loans). Section 3 of the Loan Agreement is hereby amended by adding Sections 3.5, 3.6 and 3.7 in
their entirety immediately after Section 3.4 of the Loan Agreement as follows: 
 3.5 Conversion and Continuation Elections. 

(a) So long as (i) no Event of Default exists; (ii) Borrower shall not have sent any notice of termination of this
Agreement; and (iii) Borrower shall have complied with such customary procedures as Bank has established from time to time for Borrower’s requests for LIBOR Advances, Borrower may, upon irrevocable written notice to Bank: 

(1) elect to convert on any Business Day, Prime Rate Advances into LIBOR Advances; 

(2) elect to continue on any Interest Payment Date any LIBOR Advances maturing on such Interest Payment Date; or 

(3) elect to convert on any Interest Payment Date any LIBOR Advances maturing on such Interest Payment Date into Prime Rate
Advances. 
 (b) Borrower shall deliver a Notice of Conversion/Continuation by electronic mail to be received by Bank prior
to 12:00 p.m. Pacific time (i) at least three (3) Business Days in advance of the Conversion Date or Continuation Date, if any Advances are to be converted into or continued as LIBOR Advances; and (ii) on the Conversion Date, if any
Advances are to be converted into Prime Rate Advances, in each case specifying the: 

  
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 (1) proposed Conversion Date or Continuation Date; 

(2) aggregate amount of the Advances to be converted or continued; 

(3) nature of the proposed conversion or continuation; and 

(4) if the resulting Advance is to be a LIBOR Advance, the duration of the requested Interest Period. 

(c) If upon the expiration of any Interest Period applicable to any LIBOR Advances, Borrower shall have timely failed to select
a new Interest Period to be applicable to such LIBOR Advances or request to convert a LIBOR Advance into a Prime Rate Advance, Borrower shall be deemed to have elected for any such Dollar Advances, to convert such LIBOR Advances into Prime Rate
Advances. 
 (d) Any LIBOR Advances shall, at Bank’s option, convert into Prime Rate Advances in the event that
(i) an Event of Default exists, or (ii) the aggregate principal amount of the Prime Rate Advances which have been previously converted to LIBOR Advances, or the aggregate principal amount of existing LIBOR Advances continued, as the case
may be, at the beginning of an Interest Period shall at any time during such Interest Period exceeds the lesser of the Revolving Line or the Borrowing Base. Borrower agrees to pay Bank, upon demand by Bank (or Bank may, at its option, debit the
Designated Deposit Account or any other account Borrower maintains with Bank) any amounts required to compensate Bank for any loss (including loss of anticipated profits), cost, or expense to the extent actually incurred by Bank, as a result of the
conversion of LIBOR Advances to Prime Rate Advances pursuant to this Section 3.5(d). 
 (e) Notwithstanding anything to
the contrary contained herein, Bank shall not be required to purchase Dollar deposits in the London interbank market or other applicable LIBOR market to fund any LIBOR Advances, but the provisions hereof shall be deemed to apply as if Bank had
purchased such deposits to fund the LIBOR Advances. 
 3.6 Special Provisions Governing LIBOR Advances.
Notwithstanding any other provision of this Agreement to the contrary, the following provisions shall govern with respect to LIBOR Advances as to the matters covered: 

(a) Determination of Applicable Interest Rate. As soon as practicable on each Interest Rate Determination Date, Bank
shall determine (which determination shall, absent manifest error in calculation, be final, conclusive and binding upon all parties) the interest rate that shall apply to the LIBOR Advances for which an interest rate is then being determined for the
applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to Borrower. 

(b) Inability to Determine Applicable Interest Rate. In the event that Bank shall have determined (which determination
shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with respect to any LIBOR Advance, that by reason of circumstances affecting the London interbank market adequate and fair means do not exist
for ascertaining the interest rate applicable to such 

  
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LIBOR Advance on the basis provided for in the definition of LIBOR, Bank shall on such date give notice (by facsimile or by telephone confirmed in writing) to Borrower of such determination,
whereupon (i) no Advances may be made as, or converted to, LIBOR Advances until such time as Bank notifies Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any Notice of Borrowing or Notice of
Conversion/Continuation given by Borrower with respect to LIBOR Advances in respect of which such determination was made shall be deemed to be rescinded by Borrower. 

(c) Compensation for Breakage or Non-Commencement of Interest Periods. If (i) for any reason, other than a default
by Bank or any failure of Bank to fund LIBOR Advances due to impracticability or illegality under Sections 3.7(c) and 3.7(d) of this Agreement, a borrowing or a conversion to or continuation of any LIBOR Advance does not occur on a date specified in
a Notice of Borrowing or a Notice of Conversion/Continuation, as the case may be, or (ii) any complete or partial principal payment or reduction of a LIBOR Advance, or any conversion of any LIBOR Advance, occurs on a date prior to the last day
of an Interest Period applicable to that LIBOR Advance, including due to voluntary or mandatory prepayment or acceleration, then, in each case, Borrower shall compensate Bank, upon written request by Bank, for all losses and expenses to the extent
actually incurred by Bank in an amount equal to the excess, if any, of: 
 (A) the amount of interest that would have accrued
on the amount (1) not borrowed, converted or continued as provided in clause (i) above, or (2) paid, reduced or converted as provided in clause (ii) above, for the period from (y) the date of such failure to borrow, convert
or continue as provided in clause (i) above, or the date of such payment, reduction or conversion as provided in clause (ii) above, as the case may be, to (z) in the case of a failure to borrow, convert or continue as provided in
clause (i) above, the last day of the Interest Period that would have commenced on the date of such borrowing, conversion or continuing but for such failure, and in the case of a payment, reduction or conversion prior to the last day of an
Interest Period applicable to a LIBOR Advance as provided in clause (ii) above, the last day of such Interest Period, in each case at the applicable rate of interest or other return for such LIBOR Advance(s) provided for herein (excluding,
however, the LIBOR Rate Margin included therein, if any), over 
 (B) the interest which would have accrued to Bank on the
applicable amount provided in clause (A) above through the purchase of a Eurodollar deposit bearing interest at the rate obtained pursuant to the definition of LIBOR Rate on the date of such failure to borrow, convert or continue as provided in
clause (i) above, or the date of such payment, reduction or conversion as provided in clause (ii) above, as the case may be, for a period equal to the remaining period of such applicable Interest Period provided in clause (A) above.

 Bank’s request shall set forth the manner and method of computing such compensation and such determination as to such
compensation shall be conclusive absent manifest error. 

  
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 (d) Assumptions Concerning Funding of LIBOR Advances. Calculation of all
amounts payable to Bank under this Section 3.6 and under Section 3.7 shall be made as though Bank had actually funded each relevant LIBOR Advance through the purchase of a Eurodollar deposit bearing interest at the rate obtained pursuant
to the definition of LIBOR Rate in an amount equal to the amount of such LIBOR Advance and having a maturity comparable to the relevant Interest Period; provided, however, that Bank may fund each of its LIBOR Advances in any manner it sees fit and
the foregoing assumptions shall be utilized only for the purposes of calculating amounts payable under this Section 3.6 and under Section 3.7. 

(e) LIBOR Advances After Default. After the occurrence and during the continuance of an Event of Default,
(i) Borrower may not elect to have an Advance be made or continued as, or converted to, a LIBOR Advance after the expiration of any Interest Period then in effect for such Advance and (ii) subject to the provisions of Section 3.6(c),
any Notice of Conversion/Continuation given by Borrower with respect to a requested conversion/continuation that has not yet occurred shall, at Bank’s option, be deemed to be rescinded by Borrower and be deemed a request to convert or continue
Advances referred to therein as Prime Rate Advances. 
 3.7 Additional Requirements/Provisions Regarding LIBOR
Advances. 
 (a) Borrower shall pay Bank, upon demand by Bank, from time to time such amounts as Bank may determine to be
necessary to compensate it for any costs incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any LIBOR Advances relating thereto (such increases in costs and
reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any Regulatory Change which: 

(i) changes the basis of taxation of any amounts payable to Bank under this Agreement in respect of any LIBOR Advances (other
than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its principal office); 

(ii) imposes or modifies any reserve, special deposit or similar requirements relating to any extensions of credit or other
assets of, or any deposits with, or other liabilities of Bank (including any LIBOR Advances or any deposits referred to in the definition of LIBOR); or 

(iii) imposes any other condition affecting this Agreement (or any of such extensions of credit or liabilities). 

Bank will notify Borrower of any event occurring after the Effective Date which will entitle Bank to compensation pursuant to
this Section 3.7(a) as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a statement setting forth the basis and amount of each request by Bank for
compensation under this Section 3.7(a). Determinations and allocations by Bank for purposes of this Section 3.7(a) of the effect 

  
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of any Regulatory Change on its costs of maintaining its obligations to make LIBOR Advances, of making or maintaining LIBOR Advances, or on amounts receivable by it in respect of LIBOR Advances,
and of the additional amounts required to compensate Bank in respect of any Additional Costs, shall be conclusive absent manifest error. 

(b) If Bank shall determine that the adoption or implementation of any applicable law, rule, regulation, or treaty regarding
capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance by Bank
(or its applicable lending office) with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or would have the effect of reducing the rate of
return on capital of Bank or any person or entity controlling Bank (a “Parent”) as a consequence of its obligations hereunder to a level below that which Bank (or its Parent) could have achieved but for such adoption, change, or
compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within five (5) days after demand by Bank, Borrower shall pay to Bank such additional amount or
amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation under this Section 3.7(b) and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error.

 Notwithstanding anything to the contrary in this Section 3.7, Borrower shall not be required to compensate Bank
pursuant to this Section 3.7(b) for any amounts incurred more than sixth (6) months prior to the date that Bank notifies Borrower of Bank’s intention to claim compensation therefor; provided that if the circumstances giving rise to
such claim have a retroactive effect, then such sixth-month period shall be extended to include the period of such retroactive effect. The obligations of the Borrower arising pursuant to this Section 3.7(b) shall survive the Revolving Line
Maturity Date, the termination of this Agreement and the repayment of all Obligations. 
 (c) If, at any time, Bank, in its
sole and absolute discretion, determines that (i) the amount of LIBOR Advances for periods equal to the corresponding Interest Periods are not available to Bank in the offshore currency interbank markets, or (ii) LIBOR does not accurately
reflect the cost to Bank of lending the LIBOR Advances, then Bank shall promptly give notice thereof to Borrower. Upon the giving of such notice, Bank’s obligation to make the LIBOR Advances shall terminate; provided, however, LIBOR Advances
shall not terminate if Bank and Borrower agree in writing to a different interest rate applicable to LIBOR Advances. 
 (d)
If it shall become unlawful for Bank to continue to fund or maintain any LIBOR Advances, or to perform its obligations hereunder, upon demand by Bank, Borrower shall prepay the LIBOR Advances in full with accrued interest thereon and all other
amounts payable by Borrower hereunder (including, without limitation, any amount payable in connection with such prepayment pursuant to Section 3.6(c)(ii)). Notwithstanding the foregoing, to the extent a determination by Bank as described above
relates to a LIBOR Advance then being requested by Borrower pursuant to a Notice of 

  
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Borrowing or a Notice of Conversion/Continuation, Borrower shall have the option, subject to the provisions of Section 3.6(c)(ii), to (i) rescind such Notice of Borrowing or Notice of
Conversion/Continuation by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such rescission on the date on which Bank gives notice of its determination as described above, or (ii) modify such Notice of Borrowing or
Notice of Conversion/Continuation to obtain a Prime Rate Advance or to have outstanding Advances converted into or continued as Prime Rate Advances by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such modification on
the date on which Bank gives notice of its determination as described above. 
 2.6 Section 6.2 (Financial Statements, Reports,
Certificates). Section 6.2 of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

6.2 Financial Statements, Reports, Certificates. 

Provide Bank with the following: 

(a) a Transaction Report (and any schedules related thereto), in the event that Borrower’s Net Cash is less than Fifty
Million Dollars (the “Net Cash Threshold”) and provided no Event of Default has occurred and is continuing, no later than thirty (30) days after the end of each month; 

(b) in the event that Borrower’s Net Cash is (i) greater than the Net Cash Threshold and there are outstanding
Obligations, within five (5) days of filing its Form 10-Q with the SEC, but no later than fifty (50) days after the end of each fiscal quarter, and (ii) less than the Net Cash Threshold and there are outstanding Obligations, no later
than thirty (30) days after the end of each month, (A) accounts receivable agings, aged by invoice date, for the applicable period, (B) accounts payable agings for the applicable period, aged by invoice date, and outstanding or held
check registers, if any, (C) reconciliations of accounts receivable agings for the applicable period (aged by invoice date), transaction reports and general ledger, and (D) Borrower’s Deferred Revenue report in form satisfactory to
Bank in its sole discretion, but reasonable discretion; provided, however, notwithstanding the foregoing requirements of this Section 6.2(b), in the event Borrower’s Net Cash is (i) greater than the Net Cash Threshold
and there are no outstanding Obligations, and (ii) less than the Net Cash Threshold and there are no outstanding Obligations, Borrower will not be required to provide the reports in clauses (A) through (D) of this Section and no
Advances shall be made under this Agreement until such time as Borrower shall provide to Bank the reports in clauses (A) through (D) not less than thirty (30) days prior to the request for an Advance; 

(c) as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared
consolidated and consolidating balance sheet and income statement covering Borrower’s consolidated and consolidating operations for such month certified by a Responsible Officer and in a form acceptable to Bank (the “Monthly Financial
Statements”); 

  
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 (d) within thirty (30) days after the last day of each month and together
with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and
setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank shall reasonably request, including, without limitation, a statement that at the end of such month there were
no held checks; 
 (e) [Reserved]; 

(f) as soon as available, but no later than forty-five (45) days after the end of each fiscal year approval by the Board
of Directors, (A) a business forecast for the following fiscal year (including quarterly projected balance sheets, income statements, and cash flow statements) for the following fiscal year and (B) Board approved financial projections for
the following fiscal year, commensurate in form and substance with those provided to Borrower’s venture capital investors; 

(g) As soon as available, within five (5) days of filing its Form 10-K with the SEC, but no later than ninety
(90) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified
public accounting firm acceptable to Bank in its reasonable discretion; 
 (h) as soon as available, within five
(5) days of filing its Form 10-Q with the SEC, and in any event within fifty (50) days after the end of each fiscal quarter of Borrower, company prepared consolidated balance sheet and income statement covering Borrower’s and each of
its Subsidiary’s operations for such quarter certified by a Responsible Officer and in a form acceptable to Bank (the “Quarterly Financial Statements”); 

(i) within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed
by Borrower with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant
to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such
documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address; 
 (j)
within five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; 

  
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 (k) prompt report of any legal actions pending or threatened in writing against
Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Two Hundred Fifty Thousand Dollars ($250,000) or more; and 

(l) other financial information reasonably requested by Bank. 

2.7 Section 6.3 (Accounts Receivable). Section 6.3(c) of the Loan Agreement is hereby amended by deleting it in its entirety
and replacing it with the following: 
 (c) Collection of Accounts. Borrower shall have the right to collect all
Accounts, unless and until an Event of Default has occurred and is continuing. Bank shall require that all proceeds of Accounts from Account Debtors which have their principal place of business in the United States be deposited by Borrower into a
lockbox account, or such other “blocked account” as specified by Bank, pursuant to a blocked account agreement in such form as Bank may specify in its good faith business judgment. Whether or not an Event of Default has occurred and is
continuing, Borrower shall immediately deliver all payments on and proceeds of such Accounts to an account maintained with Bank to be applied (i) prior to an Event of Default, pursuant to the terms of Section 2.8(b) hereof, and
(ii) after the occurrence and during the continuance of an Event of Default, pursuant to the terms of Section 9.4 hereof. Provided no Event of Default has occurred and is continuing and Borrower maintains a static loan balance under the
Revolving Line, funds in the blocked account will be remitted to Borrower’s Designated Deposit Account. 
 2.8 Section 6.9
(Financial Covenants). Section 6.9 of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following: 

6.9 Financial Covenants. 

Maintain at all times, to be tested as of the last day of each quarter, unless otherwise noted, on a consolidating basis with
respect to Borrower and its Subsidiaries 
 (a) Minimum Quarterly Recurring Revenue. Commencing with the quarter
ending June 30, 2013, and as of the last day of each quarter thereafter, for the trailing three (3) month period then ended, minimum Quarterly Recurring Revenue of at least (i) Fifteen Million Dollars ($15,000,000) at all times that
Borrower’s unrestricted cash on balance sheet exceeds Fifty Million Dollars ($50,000,000) or (ii) the following amounts at the following times at all times that Borrower’s unrestricted cash on balance sheet is less than Fifty Million
Dollars ($50,000,000): 
  

					
	 Quarter Ending
	  	Minimum Quarterly
Recurring Revenue	 
	 June 30, 2013
	  	$	15,500,000	  
	 September 30, 2013
	  	$	17,500,000	  
	 December 31, 2013
	  	$	19,500,000	  
	 March 31, 2014
	  	$	19,500,000	  

  
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 Commencing with the quarter ending June 30, 2014, Borrower’s
minimum Quarterly Recurring Revenue is subject to change based on Borrower’s annual financial projections approved by Borrower’s Board of Directors for the December 31, 2014 fiscal year and delivered to Bank no later than
February 14, 2014, which shall be equal to or greater than seventy-five percent (75%) of Borrower’s projected performance for each such quarter, as determined by Bank in its sole discretion (the “2014 MRR Covenant”).
Borrower’s failure to reach an agreement with Bank on the 2014 MRR Covenant and to execute and deliver to Bank an amendment to this Agreement on or by May 15, 2014 shall constitute an immediate Event of Default under this Agreement. 

(b) Adjusted Quick Ratio. Maintain at all times, to be tested as of the last day of each month on a consolidating basis
with respect to Borrower and its Subsidiaries an Adjusted Quick Ratio of at least 1.50 to 1.00 at all times that Borrower’s unrestricted cash on balance sheet is less than Fifty Million Dollars ($50,000,000). 

2.1 Section 12 (Termination Prior to Revolving Line Maturity Date). Section 12.1 of the Loan Agreement is hereby amended by
deleting it in its entirety and replacing it with the following: 
 12.1 Termination Prior to Revolving Line Maturity Date. 

This Agreement may be terminated prior to the Revolving Line Maturity Date by Borrower, effective three (3) Business Days
after written notice of termination is given to Bank. Notwithstanding any such termination, Bank’s lien and security interest in the Collateral shall continue until Borrower fully satisfies its Obligations. If such termination is at
Borrower’s election or at Bank’s election due to the occurrence and continuance of an Event of Default, Borrower shall pay to Bank, in addition to the payment of any other expenses or fees then-owing, a termination fee in an amount equal
to (i) One Hundred Fifty Thousand Dollars ($150,000) if such termination occurs prior to July 31, 2014 and (ii) Seventy-Five Thousand Dollars ($75,000) if such termination occurs on or after July 31, 2014, provided, that no
termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of Bank. 
 2.2
Section 13 (Definitions). 
 (a) The following terms and their respective definitions set forth in Section 13.1 of the Loan
Agreement are hereby amended by deleting them in their entirety and replacing them with the following: 
 “Authorized
Signer” is any individual listed in Borrower’s Borrowing Resolution who is authorized to execute the Loan Documents, including any Notice of Borrowing or other Advance request, on behalf of Borrower. 

  
 12 

 “Business Day” is any day that is not a Saturday, Sunday or
other day on which banking institutions in the State of California are authorized or required by law or other governmental action to close, except that if any determination of a “Business Day” shall relate to a LIBOR Advance, the term
“Business Day” shall also mean a day on which dealings are carried on in the London interbank market. 

“Closed Accounts” are, during any calendar quarter, the number of customer Accounts that are closed,
cancelled, or otherwise terminated. 
 “Prime Rate” is the rate of interest per annum from time to time
published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of
The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California
(such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors). 

“Revolving Line” is an Advance or Advances in an amount equal to Fifteen Million Dollars ($15,000,000). 

“Revolving Line Maturity Date” is July 31, 2015. 

(b) The following terms and their respective definitions are hereby added in alphabetical order to Section 13.1 of the Loan Agreement:

 “Adjusted Quick Ratio” means, as of the date of determination, a ratio of Quick Assets to Current
Liabilities. 
 “Continuation Date” means any date on which Borrower continues a LIBOR Advance into another
Interest Period. 
 “Conversion Date” means any date on which Borrower converts a Prime Rate Advance to a
LIBOR Advance or a LIBOR Advance to a Prime Rate Advance. 
 “Currency” is coined money and such other
banknotes or other paper money as are authorized by law and circulate as a medium of exchange. 
 “Current
Liabilities” are all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate amount of Borrower’s Total Liabilities that mature within one (1) year (excluding all Deferred Revenue). 

“Interest Payment Date” means, with respect to any LIBOR Advance, the last day of each Interest Period
applicable to such LIBOR Advance and, with respect to Prime Rate Advances, the last day of each month (or, if that day of the month does not fall on a Business Day, then on the first Business Day following such date), and each date a Prime Rate
Advance is converted into a LIBOR Advance to the extent of the amount converted to a LIBOR Advance. 

  
 13 

 “Interest Period” means, as to any LIBOR Advance, the period
commencing on the date of such LIBOR Advance, or on the conversion/continuation date on which the LIBOR Advance is converted into or continued as a LIBOR Advance, and ending on the date that is one, two, or three months thereafter, in each case as
Borrower may elect in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided, however, that (a) no Interest Period with respect to any LIBOR Advance shall end later than the Revolving Line Maturity Date, (b) the
last day of an Interest Period shall be determined in accordance with the practices of the LIBOR interbank market as from time to time in effect, (c) if any Interest Period would otherwise end on a day that is not a Business Day, that Interest
Period shall be extended to the following Business Day unless, in the case of a LIBOR Advance, the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period shall end on the
preceding Business Day, (d) any Interest Period pertaining to a LIBOR Advance that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period, and (e) interest shall accrue from and include the first Business Day of an Interest Period but exclude the last Business Day of such
Interest Period. 
 “Interest Rate Determination Date” means each date for calculating the LIBOR for
purposes of determining the interest rate in respect of an Interest Period. The Interest Rate Determination Date shall be the second Business Day prior to the first day of the related Interest Period for a LIBOR Advance. 

“LIBOR” means, for any Interest Rate Determination Date with respect to an Interest Period for any Advance to
be made, continued as or converted into a LIBOR Advance, the rate of interest per annum determined by Bank to be the per annum rate of interest at which deposits in Dollars are offered to Bank in the London interbank market (rounded upward, if
necessary, to the nearest 0.0001%) in which Bank customarily participates at 11:00 a.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest Period for a period approximately equal to such Interest
Period and in an amount approximately equal to the amount of such Advance. 
 “LIBOR Advance” means an
Advance that bears interest based at the LIBOR Rate. 
 “LIBOR Rate” means, for each Interest Period in
respect of LIBOR Advances comprising part of the same Advances, an interest rate per annum (rounded upward, if necessary, to the nearest 0.0001%) equal to LIBOR for such Interest Period divided by one (1) minus the Reserve Requirement for such
Interest Period. 
 “LIBOR Rate Margin” is three hundred (300) basis points. 

“Net Cash Threshold” is defined in Section 6.2(a). 

  
 14 

 “Notice of Borrowing” means a notice given by Borrower to Bank
in accordance with Section 3.4(a), substantially in the form of Exhibit G, with appropriate insertions. 

“Notice of Conversion/Continuation” means a notice given by Borrower to Bank in accordance with
Section 3.5, substantially in the form of Exhibit H, with appropriate insertions. 
 “Prime Rate
Advance” means an Advance that bears interest based at the Prime Rate. 
 “Prime Rate Margin” is
one quarter of one percent (.25%). 
 “Quarterly Recurring Revenue” means, for any period as at any date of
determination, the sum of the aggregate value of all (a) billed Accounts of Borrower for such period taken as a single accounting period under GAAP, plus (b) quarterly services performed by the Borrower on all service contracts for billed
Accounts, as reported by Borrower in its Quarterly Financial Statements delivered to the Bank pursuant to Section 6.2(h), minus (c) Closed Accounts, minus (d) one-time credits applied to any of Borrower’s Accounts. 

“Quick Assets” is, on any date, Borrower’s and its Subsidiaries’ consolidated, unrestricted cash and
Cash Equivalents, net billed accounts receivable (including earned but unbilled accounts that are expected to be billed within five (5) days of month-end) and short and long-term investments determined according to GAAP. 

“Regulatory Change” means, with respect to Bank, any change on or after the date of this Agreement in United
States federal, state, or foreign laws or regulations, including Regulation D, or the adoption or making on or after such date of any interpretations, directives, or requests applying to a class of lenders including Bank, of or under any United
States federal or state, or any foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof. 

“Reserve Requirement” means, for any Interest Period, the average maximum rate at which reserves (including
any marginal, supplemental, or emergency reserves) are required to be maintained during such Interest Period under Regulation D against “Eurocurrency liabilities” (as such term is used in Regulation D) by member banks of the Federal
Reserve System. Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any other reserves required to be maintained by Bank by reason of any Regulatory Change against (a) any category of liabilities which includes
deposits by reference to which the LIBOR Rate is to be determined as provided in the definition of LIBOR or (b) any category of extensions of credit or other assets which include Advances. 

“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on
Borrower’s and its Subsidiaries’ consolidated balance sheets, including all Indebtedness and all Subordinated Debt, but excluding all Deferred Revenue. 

  
 15 

 3. Compliance Certificate. The Compliance Certificate attached to the Loan Agreement as
Exhibit B is replaced in its entirety with the Compliance Certificate attached hereto as Exhibit B. From and after the Supplemental Effective Date, all references in the Loan Agreement to the Compliance Certificate shall mean the
Compliance Certificate in the form attached hereto as Exhibit B. 
 4. Notice of Borrowing. From and after the Supplemental
Effective Date, Exhibit G (Form of Notice of Borrowing) is hereby added to the Loan Agreement in its entirety in the form attached hereto as Exhibit G. From and after the Supplemental Effective Date, all references in the Loan
Agreement to the Notice of Borrowing shall mean the Loan Supplement in the form attached hereto as Exhibit G. 
 5. Notice of
Conversion/Continuation. From and after the Supplemental Effective Date, Exhibit H (Form of Notice of Conversion/Continuation) is hereby added to the Loan Agreement in its entirety in the form attached hereto as Exhibit H.
From and after the Supplemental Effective Date, all references in the Loan Agreement to the Notice of Conversion/Continuation shall mean the Loan Supplement in the form attached hereto as Exhibit H. 

6. Limitation of Amendments. 

6.1 The amendments set forth in Sections 2, 3, 4, and 5 above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 6.2 This Amendment shall be construed in connection with and as
part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 

6.3 In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any
covenant or agreement contained herein shall constitute an Event of Default and shall entitle the Bank to exercise all rights and remedies provided to the Bank under the terms of any of the other Loan Documents as a result of the occurrence of the
same. 
 7. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to
Bank as follows: 
 7.1 Immediately after giving effect to this Amendment (a) the representations and warranties contained in the
Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing; 

  
 16 

 7.2 Borrower has the power and authority to execute and deliver this Amendment and to
perform its obligations under the Loan Agreement, as amended by this Amendment; 
 7.3 The organizational documents of Borrower
delivered to Bank on the Supplemental Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

7.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly authorized; 
 7.5 The execution and delivery by Borrower of this Amendment
and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a
Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 

7.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on Borrower, except as already has been obtained or made; and 
 7.7 This Amendment has been duly executed and
delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other
similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 8. Integration. This
Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about
the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 9. Counterparts. This
Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

  
 17 

 10. Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto and (b) payment of Bank’s legal fees and expenses in connection with the negotiation and preparation of this Amendment. 

[Signatures Appear on the Following Page] 

  
 18 

 IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and delivered as of the date first written above. 
  

			
	BANK
	
	SILICON VALLEY BANK
		
	By:	 	/s/ Ryan Edwards
		 	Title: Vice President
	
	BORROWER
	
	MARIN SOFTWARE INCORPORATED
		
	By:	 	/s/ Christopher Lien
		 	Title: CEO
	
	MARIN SOFTWARE LIMITED
		
	By:	 	/s/ Christopher Lien
		 	Title: Director
	
	MARIN SOFTWARE LIMITED
		
	By:	 	/s/ John Kaelle
		 	Title: DirectorEX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
  

 
 EXCHANGE AGREEMENT 

by and between 
 MONARCH
COMMUNITY BANCORP, INC. 
 and 

THE UNITED STATES DEPARTMENT OF THE TREASURY 

Dated as of October 30, 2013 
  

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	
	ARTICLE I	  
	
	THE CLOSING; CONDITIONS TO THE CLOSING	 
			
	 Section 1.1
	 	 The Closing
	  	 	2	 
	 Section 1.2
	 	 Interpretation
	  	 	5	 
	
	ARTICLE II	  
	
	EXCHANGE	 
			
	 Section 2.1
	 	 Preferred Exchange
	  	 	5	 
	 Section 2.2
	 	 Exchange Documentation
	  	 	6	 
	 Section 2.3
	 	 Status of Preferred Shares after Closing
	  	 	6	 
	
	ARTICLE III	  
	
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	 
			
	 Section 3.1
	 	 Existence and Power
	  	 	6	 
	 Section 3.2
	 	 Authorization and Enforceability
	  	 	7	 
	 Section 3.3
	 	 Exchange Shares
	  	 	7	 
	 Section 3.4
	 	 Non-Contravention
	  	 	7	 
	 Section 3.5
	 	 Anti-Takeover Provisions and Rights Plan
	  	 	9	 
	 Section 3.6
	 	 No Company Material Adverse Effect
	  	 	9	 
	 Section 3.7
	 	 Offering of Securities
	  	 	9	 
	 Section 3.8
	 	 Brokers and Finders
	  	 	9	 
	
	ARTICLE IV	  
	
	COVENANTS	 
			
	 Section 4.1
	 	 Commercially Reasonable Efforts
	  	 	9	 
	 Section 4.2
	 	 Expenses
	  	 	9	 
	 Section 4.3
	 	 Intentionally Omitted
	  	 	10	 
	 Section 4.4
	 	 Access, Information and Confidentiality
	  	 	10	 
	 Section 4.5
	 	 Executive Compensation
	  	 	11	 
	 Section 4.6
	 	 Certain Notifications Until Closing
	  	 	12	 
	 Section 4.7
	 	 Monthly Lending Reports
	  	 	12	 
	 Section 4.8
	 	 Status Reports
	  	 	12	 
	 Section 4.9
	 	 Amendment of Subscription Agreements
	  	 	12	 
	 Section 4.10
	 	 Remaining Certification and Disclosure Requirements
	  	 	13	 
	 Section 4.11        
	 	 Transferability Restrictions Related to Long-Term Restricted Stock
	  	 	13	 

  
 -i- 

							
	ARTICLE V	 
	
	ADDITIONAL AGREEMENTS	 
			
	 Section 5.1
	 	 Unregistered Exchange Shares
	  	 	13	 
	 Section 5.2
	 	 Legend
	  	 	14	 
	 Section 5.3
	 	 Certain Transactions
	  	 	14	 
	 Section 5.4
	 	 Transfer of Exchange Shares
	  	 	14	 
	 Section 5.5
	 	 Registration Rights
	  	 	15	 
	 Section 5.6
	 	 Voting Matters
	  	 	15	 
	 Section 5.7
	 	 Restriction on Dividends and Repurchases
	  	 	15	 
	 Section 5.8
	 	 Intentionally Omitted
	  	 	17	 
	 Section 5.9
	 	 Bank Holding Company Status
	  	 	17	 
	 Section 5.10
	 	 Compliance with Employ American Workers Act
	  	 	17	 
	 Section 5.11
	 	 Observer to the Board of Directors
	  	 	17	 
	
	ARTICLE VI	  
	
	MISCELLANEOUS	 
			
	 Section 6.1
	 	 Termination
	  	 	18	 
	 Section 6.2
	 	 Survival of Representations and Warranties
	  	 	18	 
	 Section 6.3
	 	 Amendment
	  	 	18	 
	 Section 6.4
	 	 Waiver of Conditions
	  	 	19	 
	 Section 6.5
	 	 Governing Law; Submission to Jurisdiction, etc.
	  	 	19	 
	 Section 6.6
	 	 Notices
	  	 	19	 
	 Section 6.7
	 	 Definitions
	  	 	20	 
	 Section 6.8
	 	 Assignment
	  	 	22	 
	 Section 6.9
	 	 Severability
	  	 	23	 
	 Section 6.10
	 	 No Third-Party Beneficiaries
	  	 	23	 
	 Section 6.11
	 	 Entire Agreement, etc.
	  	 	23	 
	 Section 6.12
	 	 Counterparts and Facsimile
	  	 	23	 
	 Section 6.13        
	 	 Specific Performance
	  	 	23	 

 LIST OF ANNEXES 

ANNEX A: FORM OF OPINION 
 ANNEX B: FORM OF WAIVER 

ANNEX C: FORM OF COMMON STOCK SPA 
 LIST OF
SCHEDULES 
 SCHEDULE A: CAPITALIZATION 

  
 -ii- 

			
	 Term
	  	 Section

	Affiliate	  	6.7(b)
	Agreement	  	Preamble
	Bank	  	3.1(a)
	Benefit Plans	  	1.1(d)(viii)
	Business Combination	  	6.7(c)
	Capitalization Date	  	3.1(b)
	Closing	  	1.1(a)
	Closing Date	  	1.1(a)
	Code	  	3.4(c)
	Common Stock	  	Recitals
	Common Stock SPA	  	Recitals
	Company	  	Preamble
	Company Material Adverse Effect	  	6.7(d)
	Company Subsidiaries	  	4.4(a)
	Compensation Regulations	  	1.1(d)(viii)
	Designated Matters	  	6.7(e)
	EAWA	  	6.7(f)
	EESA	  	1.1(d)(viii)
	Exchange	  	Recitals
	Exchange Act	  	5.3(b)
	Exchange Shares	  	6.7(g)
	Governmental Entities	  	1.1(c)
	Information	  	4.4(c)
	Investor	  	Preamble
	Junior Stock	  	6.7(h)
	Observer	  	5.11
	Parity Stock	  	6.7(i)
	Permitted Repurchases	  	5.7(a)(ii)
	Preferred Shares	  	Recitals
	Preferred Stock	  	6.7(j)
	Primary Investor Consideration	  	6.7(k)
	Primary Investor Transactions	  	Recitals
	Regulatory Event	  	6.7(l)
	Relevant Period	  	1.1(d)(viii)
	Secondary Investor Consideration	  	Recitals
	Secondary Investor Transactions	  	Recitals
	Secondary Investors	  	Recitals
	Section 4.5 Employee	  	4.5(b)
	Securities Purchase Agreement	  	Recitals
	Senior Executive Officers	  	1.1(d)(viii)
	Subscription Agreements	  	Recitals
	subsidiary	  	6.7(a)
	Transaction Documents	  	6.7(n)
	Transfer	  	5.4

  
 -iii- 

 EXCHANGE AGREEMENT, dated as of October 30, 2013 (this “Agreement”) by and
between Monarch Community Bancorp, Inc., a Maryland corporation (the “Company”), and the United States Department of the Treasury (the “Investor”). All capitalized terms used herein and not otherwise defined shall
have the respective meanings ascribed to them in the Securities Purchase Agreement. 
 BACKGROUND 

WHEREAS, the Investor is, as of the date hereof, the beneficial owner of (i) 6,785 shares of the Company’s preferred stock
designated as “Fixed Rate Cumulative Perpetual Preferred Stock, Series A”, having a liquidation amount of $1,000 per share (the “Preferred Shares”) and (ii) a ten-year warrant (the “Warrant”)
to purchase up to 52,192.40 shares of the Company’s common stock, $0.05 par value (the “Common Stock”); 
 WHEREAS,
the Company issued the Preferred Shares and the Warrant pursuant to that certain Securities Purchase Agreement – Standard Terms incorporated into a Letter Agreement, dated as of February 6, 2009 (the “Securities Purchase
Agreement”); 
 WHEREAS, prior to the Closing, the Company intends to enter into subscription agreements (the “Subscription
Agreements”) with third parties, pursuant to which the third parties will purchase shares of Common Stock, at a purchase price per share equal to $2.00, from the Company in an amount of no less than the Primary Investor Consideration
(collectively, the “Primary Investor Transactions”); 
 WHEREAS, the Company and the Investor desire, in connection with
and subject to the completion of the Primary Investor Transactions, to exchange (the “Exchange”) the Warrant and all of the Preferred Shares beneficially owned and held by the Investor, including all accrued or accumulated and
unpaid dividends on the Preferred Shares, for the Exchange Shares; 
 WHEREAS, prior to the Closing, the Investor intends to enter into
separate securities purchase agreements, in substantially the form attached hereto as Annex C (each, a “Common Stock SPA”), pursuant to which the Investor will sell all of the Exchange Shares to third party purchasers
(collectively, the “Secondary Investors”) at the Closing for an aggregate purchase price equal to the dollar amount obtained by multiplying the Exchange Shares by $2.00 (the “Secondary Investor Consideration”)
(collectively, the “Secondary Investor Transactions”); and 
 WHEREAS, in connection with the Secondary Investor
Transactions, the Company shall enter into agreements pursuant to which the Company will provide to each Secondary Investor customary representations, warranties and indemnification with respect to the Company, the Exchange Shares and the applicable
Secondary Investor Transaction. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

 ARTICLE I 

THE CLOSING; CONDITIONS TO THE CLOSING 

Section 1.1 The Closing. 

(a) The closing of the Exchange (the “Closing”) will take place at the offices of Cadwalader,
Wickersham & Taft LLP, One World Financial Center, New York, New York, 10218, or remotely via the electronic or other exchange of documents and signature pages, as the parties may agree. The Closing shall take place
contemporaneous with or immediately following the closing of the Primary Investor Transactions, assuming all of the other conditions set forth in Section 1.1(c) and (d) shall have been satisfied or waived, or at such other place, time and
date as shall be agreed between the Company and the Investor. The time and date on which the Closing occurs is referred to in this Agreement as the “Closing Date”. 

(b) Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.1, at the Closing (i) the
Company will deliver the Exchange Shares to the Investor, as evidenced by one or more certificates dated the Closing Date and registered in the name of the Investor or its designee(s) (or if shares of Common Stock are uncertificated, cause the
transfer agent for the Common Stock to register the Exchange Shares in the name of the Investor and deliver reasonably satisfactory evidence of such registration to the Investor) and (ii) the Investor will deliver the Warrant and the
certificate representing the Preferred Shares to the Company. 
 (c) The respective obligations of each of the Investor and
the Company to consummate the Exchange are subject to the fulfillment (or waiver by the Company and the Investor, as applicable) prior to the Closing of the conditions that (i) any approvals or authorizations of all United States and other
governmental, regulatory or judicial authorities (collectively, “Governmental Entities”) required for the consummation of the Exchange shall have been obtained or made in form and substance reasonably satisfactory to each party and
shall be in full force and effect and all waiting periods required by United States and other applicable law, if any, shall have expired and (ii) no provision of any applicable United States or other law and no judgment, injunction, order or
decree of any Governmental Entity shall prohibit consummation of the Exchange as contemplated by this Agreement. 
 (d) The
obligation of the Investor to consummate the Exchange is also subject to the fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following conditions: 

(i) (A) the representations and warranties of the Company set forth in Article III of this Agreement shall be
true and correct in all respects as though made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which representations and warranties shall be true and correct in all respects as
of such other date) and (B) the Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing; 

  
 -2- 

 (ii) the Primary Investor Transactions shall have been completed and shall have
resulted in a minimum aggregate amount of not less than the Primary Investor Consideration in gross cash proceeds to the Company; 

(iii) each of the Common Stock SPAs shall be in full force and effect; 

(iv) the conditions to closing contained in each of the Common Stock SPAs (other than the condition relating to the Closing
hereunder) shall have been satisfied (or waived by the Investor) and the Secondary Investor Consideration shall have been deposited by the Secondary Investors in the amounts set forth in their respective Common Stock SPA (such deposits to be
irrevocable except in the case of termination of this Agreement as provided in Section 6.1) with an escrow agent acceptable to the Investor pursuant to an escrow agreement acceptable to the Investor, and all conditions to the release of such
amounts from escrow shall have been satisfied or waived; 
 (v) the Investor shall have received a certificate signed on
behalf of the Company by a senior executive officer certifying to the effect that the conditions set forth in this Section 1.1(d) have been satisfied; 

(vi) the Company shall have delivered certificates in proper form or, with the prior consent of the Investor, evidence in
book-entry form, evidencing the Exchange Shares to the Investor or its designee(s); 
 (vii) the Company shall have
delivered to the Investor written opinions from counsel to the Company, addressed to the Investor and dated as of the Closing Date, in substantially the form attached hereto as Annex A; and 

(viii) (A) the Company shall have effected such changes to its compensation, bonus, incentive and other benefit plans,
arrangements and agreements (including golden parachute, severance and employment agreements) (collectively, “Benefit Plans”) with respect to its Senior Executive Officers and any other employees of the Company or its Affiliates
subject to Section 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, or otherwise from time to time (“EESA”), as implemented by any guidance, rule or
regulation thereunder, as the same shall be in effect from time to time (collectively, the “Compensation Regulations”) (and to the extent necessary for such changes to be legally enforceable, each of its Senior Executive Officers
and other employees shall have duly consented in writing to such changes), as may be necessary, during the period in which any obligation of the Company arising from financial assistance under the Troubled Asset Relief Program remains outstanding
(such period, as it may be further described in the Compensation 

  
 -3- 

 
Regulations, the “Relevant Period”), in order to comply with Section 111 of EESA or the Compensation Regulations and (B) the Investor shall have received a certificate
signed on behalf of the Company by a Senior Executive Officer certifying to the effect that the condition set forth in Section 1.1(d)(viii)(A) has been satisfied; “Senior Executive Officers” means the Company’s
“senior executive officers” as defined in Section 111 of the EESA and the Compensation Regulations; 
 (ix)
none of the following shall have occurred with respect to the Company or any Company Subsidiary: 
 (A) the Company or any
Company Subsidiary shall have (1) dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) become insolvent or unable to pay its debts or failed or admitted in writing its inability generally to pay its debts as they
become due; (3) made a general assignment, arrangement or composition with or for the benefit of its creditors; (4) instituted or have instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief
under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition shall have been presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented
against it, such proceeding or petition shall have resulted in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; (5) had a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) sought or shall have become subject to the appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially all its assets; (7) had a secured party take possession of all or substantially all its assets or had a distress, execution, attachment, sequestration or other
legal process levied, enforced or sued on or against all or substantially all its assets; (8) caused or shall have been subject to any event with respect to it which, under the applicable laws of any jurisdiction, had an analogous effect to any
of the events specified in clauses (1) to (7) (inclusive); or (9) taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; 

(B) a Governmental Entity in any jurisdiction shall have (1) commenced an action or proceeding against the Company or any
Company Subsidiary; or (2) issued or entered a temporary restraining order, preliminary or permanent injunction or other order applicable to the Company or any Company Subsidiary, which in the case of (1) and (2) shall have had or
shall be reasonably expected to have a Company Material Adverse Effect; 

  
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 (C) any fact, circumstance, event, change, occurrence, condition or development
shall have occurred that, individually or in the aggregate, shall have had or shall be reasonably likely to have a Company Material Adverse Effect; or 

(D) any Regulatory Event not otherwise existing on the date hereof. 

Section 1.2 Interpretation. When a reference is made in this Agreement to “Recitals,” “Articles,”
“Sections,” “Annexes” or “Schedules” such reference shall be to a Recital, Article or Section of, or Annex or Schedule to, this Agreement, unless otherwise indicated. The terms defined in the
singular have a comparable meaning when used in the plural, and vice versa. References to “herein”, “hereof”, “hereunder” and the like refer to this Agreement as a whole and not to any particular section or provision,
unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of
this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All references to “$” or “dollars” mean the lawful currency of the United States of America. Except as expressly
stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations
promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section. References to a “business day” shall mean any day except Saturday, Sunday and any day on which banking institutions
in the State of New York or the State of Michigan generally are authorized or required by law or other governmental actions to close. 

ARTICLE II 

EXCHANGE 

Section 2.1 Preferred Exchange. 

(a) On the terms and subject to the conditions set forth in this Agreement, upon the Closing (i) the Company agrees to
issue to the Investor, in exchange for the Warrant and its 6,785 Preferred Shares, the Exchange Shares and (ii) the Investor agrees to deliver to the Company the Warrant and the Preferred Shares in exchange for the Exchange Shares. 

(b) Following consummation of the Exchange, no further cash dividends shall be payable in respect of the Preferred Shares
outstanding immediately prior to the Closing Date. 
 (c) In the event the Company at any time or from time to time prior to
the Closing effects a stock dividend, stock split, reverse stock split, combination, 

  
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reclassification or similar transaction, concurrently with the effectiveness of such stock dividend, stock split, reverse stock split, combination, reclassification or other similar transaction,
each per share amount and per share price set forth in the Transaction Documents (including with respect to the number of shares of Common Stock being purchased or exchanged hereunder or under any other Transaction Document and including the $0.40
per share purchase or exchange price set forth hereunder or in any of the Transaction Documents) shall be proportionally adjusted; provided that nothing in this Section 2.1(c) shall be construed to permit the Company to take any action
otherwise prohibited or restricted by any of the Transaction Documents. 
 Section 2.2 Exchange Documentation.
Settlement of the Exchange will take place on the Closing Date, at which time the Investor will cause delivery of the Warrant and the Preferred Shares to the Company or its designated agent and the Company will cause delivery of the Exchange Shares
to the Investor or its designated agent. 
 Section 2.3 Status of Preferred Shares after Closing. The Preferred Shares
exchanged for the Exchange Shares pursuant to this Article II are being reacquired by the Company and shall have the status of authorized but unissued shares of Preferred Stock of the Company undesignated as to series and may be designated or
redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Company; provided that such shares shall not be reissued as Preferred Shares. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Investor as of the date hereof and as of the Closing Date that: 

Section 3.1 Existence and Power. 

(a) Organization, Authority and Significant Subsidiaries. The Company is duly organized, validly existing and in good
standing as a corporation under the laws of the State of Maryland and has all necessary power and authority to own, operate and lease its properties and to carry on its business in all material respects as it is being currently conducted, and except
as has not, individually or in the aggregate, had and would not reasonably be expected to have a Company Material Adverse Effect, has been duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws
of the State of Michigan and of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification; each subsidiary of the Company that is a “significant subsidiary” within the
meaning of Rule 1-02(w) of Regulation S-X under the Securities Act, including, without limitation, Monarch Community Bank (the “Bank”), has been duly organized and is validly existing in good standing under the laws of its
jurisdiction of organization. The articles of incorporation and bylaws of the Company, copies of which have been provided to the Investor prior to the date hereof, are true, complete and correct copies of such documents as in full force and effect
as of the date hereof. 

  
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 (b) Capitalization. The authorized capital stock of the Company and the
outstanding capital stock of the Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the “Capitalization
Date”) is set forth on Schedule A. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights (and
were not issued in violation of any preemptive rights). As of the date hereof, the Company does not have outstanding any securities or other obligations providing the holder the right to acquire Common Stock that is not reserved for issuance as
specified on Schedule A, and the Company has not made any other commitment to authorize, issue or sell any Common Stock except pursuant to this Agreement and the Subscription Agreements. Since the Capitalization Date, except pursuant to
this Agreement and the Primary Investor Transactions, the Company has not issued any shares of Common Stock other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible
securities or warrants which were issued and outstanding on the Capitalization Date and disclosed on Schedule A and (ii) shares disclosed on Schedule A. 

Section 3.2 Authorization and Enforceability. 

(a) The Company has the corporate power and authority to execute and deliver this Agreement and to carry out its obligations
hereunder and thereunder (which includes the issuance of the Exchange Shares). 
 (b) The execution, delivery and performance
by the Company of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and its stockholders, and no further approval or authorization is
required on the part of the Company or its stockholders. This Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as enforcement may be limited by general principles of
equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies generally. 

Section 3.3 Exchange Shares. The Exchange Shares have been duly and validly authorized by all necessary action, and, when
issued and delivered pursuant to this Agreement, such Exchange Shares will be duly and validly issued and fully paid and nonassessable, will not be issued in violation of any preemptive rights, and will not subject the holder thereof to personal
liability. 
 Section 3.4 Non-Contravention. 

(a) The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby and thereby, and compliance by the Company with the provisions hereof and thereof, will not (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or
lapse of time or both, would constitute a default) under, 

  
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or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any lien, security interest,
charge or encumbrance upon any of the properties or assets of the Company or any Company Subsidiary under any of the terms, conditions or provisions of (i) its organizational documents or (ii) any note, bond, mortgage, indenture, deed of
trust, license, lease, agreement or other instrument or obligation to which the Company or any Company Subsidiary is a party or by which it or any Company Subsidiary may be bound, or to which the Company or any Company Subsidiary or any of the
properties or assets of the Company or any Company Subsidiary may be subject, or (B) subject to compliance with the statutes and regulations referred to in the next paragraph, violate any statute, rule or regulation or any judgment, ruling,
order, writ, injunction or decree applicable to the Company or any Company Subsidiary or any of their respective properties or assets except, in the case of clauses (A)(ii) and (B), for those occurrences that, individually or in the
aggregate, have not had and would not reasonably be expected to have a Company Material Adverse Effect. 
 (b) Other than
such filings and approvals as are required to be made or obtained under any state “blue sky” laws, and such filings, consents and approvals that have been made or obtained (or will be made or obtained prior to Closing), no notice to,
filing with or review by, or authorization, consent or approval of, any Governmental Entity is required to be made or obtained by the Company in connection with the consummation by the Company of the Exchange except for any such notices, filings,
reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 

(c) Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect,
(A) the execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby (including for this purpose the consummation of the Exchange) and compliance by the Company with the
provisions hereof will not (1) result in any payment (including any severance payment, payment of unemployment compensation, “excess parachute payment” (within the meaning of the Internal Revenue Code of 1986, as amended (the
“Code”)), “golden parachute payment” (as defined in the EESA, as implemented by the Compensation Regulations) or forgiveness of indebtedness or otherwise) becoming due to any current or former employee, officer or director
of the Company or any Company Subsidiary from the Company or any Company Subsidiary under any benefit plan or otherwise, (2) increase any benefits otherwise payable under any benefit plan, (3) result in any acceleration of the time of
payment or vesting of any such benefits, (4) require the funding or increase in the funding of any such benefits or (5) result in any limitation on the right of the Company or any Company Subsidiary to amend, merge, terminate or receive a
reversion of assets from any benefit plan or related trust and (B) neither the Company nor any Company Subsidiary has taken, or permitted to be taken, any action that required, and no circumstances exist that will require the funding, or
increase in the funding, of any benefits or resulted, or will result, in any limitation on the right of the Company or any Company Subsidiary to amend, merge, terminate or receive a reversion of assets from any benefit plan or related trust. 

  
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 Section 3.5 Anti-Takeover Provisions and Rights Plan. The Board of Directors
has taken all necessary action to ensure that the transactions contemplated by this Agreement and the consummation of the transactions contemplated hereby will be exempt from any anti-takeover or similar provisions of the Company’s articles of
incorporation and bylaws, and any other provisions of any applicable “moratorium”, “control share”, “fair price”, “interested stockholder” or other anti-takeover laws and regulations of any jurisdiction. The
Company has taken all actions necessary to render any stockholders’ rights plan of the Company inapplicable to this Agreement, the Exchange Shares and the consummation of the transactions contemplated hereby. 

Section 3.6 No Company Material Adverse Effect. Since December 31, 2012, no fact, circumstance, event, change,
occurrence, condition or development has occurred that, individually or in the aggregate, has had or would reasonably be likely to have a Company Material Adverse Effect. 

Section 3.7 Offering of Securities. Neither the Company nor any person acting on its behalf has taken any action
(including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of the Exchange Shares under the Securities Act and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder), which might subject the offering, issuance or sale of the Exchange Shares to the Investor pursuant to this Agreement to the registration requirements of the Securities Act. 

Section 3.8 Brokers and Finders. No broker, finder or investment banker is entitled to any financial advisory, brokerage,
finder’s or other fee or commission in connection with this Agreement or the transactions contemplated hereby based upon arrangements made by or on behalf of the Company or any Company Subsidiary for which the Investor could have any liability.

 ARTICLE IV 

COVENANTS 

Section 4.1 Commercially Reasonable Efforts. Subject to the terms and conditions of this Agreement, each of the parties will
use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, so as to permit consummation of the
Exchange, the Primary Investor Transactions and the Secondary Investor Transactions, as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby and thereby and shall use commercially reasonable efforts to
cooperate with the other party to that end. 
 Section 4.2 Expenses. If requested by the Investor, the Company shall pay
all reasonable out of pocket and documented costs and expenses associated with the Exchange, including, but not limited to, the reasonable fees, disbursements and other charges of the Investor’s legal counsel and financial advisors. 

  
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 Section 4.3 Intentionally Omitted. 

Section 4.4 Access, Information and Confidentiality. 

(a) From the date hereof until the date when the Investor no longer holds any debt or equity securities of the Company or an
Affiliate of the Company acquired pursuant to this Agreement, the Company will permit the Investor and its agents, consultants, contractors and advisors (i) acting through the Company’s Appropriate Federal Banking Agency, to examine the
corporate books and make copies thereof and to discuss the affairs, finances and accounts of the Company and the subsidiaries of the Company (the “Company Subsidiaries”) with the principal officers of the Company, all upon
reasonable notice and at such reasonable times and as often as the Investor may reasonably request and (ii) to review any information material to the Investor’s investment in the Company provided by the Company to its Appropriate Federal
Banking Agency. 
 (b) From the date hereof until the date when the Investor no longer holds any debt or equity securities of
the Company or an Affiliate of the Company acquired pursuant to this Agreement, the Company shall permit, and shall cause each of the Company’s Subsidiaries to permit (i) the Investor and its agents, consultants, contractors, (ii) the
Special Inspector General of the Troubled Asset Relief Program, and (iii) the Comptroller General of the United States, access to personnel and any books, papers, records or other data, in each case, to the extent relevant to ascertaining
compliance with the financing terms and conditions; provided that prior to disclosing any information pursuant to clause (ii) or (iii), the Special Inspector General of the Troubled Asset Relief Program and the Comptroller General of the
United States shall have agreed, with respect to documents obtained under this Agreement in furtherance of its function, to follow applicable law and regulation (and the applicable customary policies and procedures) regarding the dissemination of
confidential materials, including redacting confidential information from the public version of its reports and soliciting the input from the Company as to information that should be afforded confidentiality, as appropriate. 

(c) The Investor will use reasonable best efforts to hold, and will use reasonable best efforts to cause its agents,
consultants, contractors, advisors, and United States executive branch officials and employees, to hold, in confidence all non-public records, books, contracts, instruments, computer data and other data and information (collectively,
“Information”) concerning the Company furnished or made available to it by the Company or its representatives pursuant to this Agreement (except to the extent that such information can be shown to have been (i) previously known
by such party on a non-confidential basis, (ii) in the public domain through no fault of such party or (iii) later lawfully acquired from other sources by the party to which it was furnished (and without violation of any other
confidentiality obligation)); provided that nothing herein shall prevent the Investor from disclosing any Information to the extent required by applicable laws or regulations or by any subpoena or similar legal process. The Investor
understands that the Information may contain commercially sensitive confidential information entitled to an exception from a Freedom of Information Act request. 

(d) Nothing in this Section shall be construed to limit the authority that the Special Inspector General of the Troubled
Asset Relief Program, the Comptroller General of the United States or any other applicable regulatory authority has under law. 

  
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 Section 4.5 Executive Compensation. 

(a) Benefit Plans. During the Relevant Period, the Company shall take all necessary action to ensure that the Benefit
Plans of the Company and its Affiliates comply in all respects with, and shall take all other actions necessary to comply with, Section 111 of the EESA, as implemented by the Compensation Regulations, and neither the Company nor any Affiliate
shall adopt any new Benefit Plan (i) that does not comply therewith or (ii) that does not expressly state and require that such Benefit Plan and any compensation thereunder shall be subject to any relevant Compensation Regulations adopted,
issued or released on or after the date any such Benefit Plan is adopted. To the extent that EESA and/or the Compensation Regulations are amended or otherwise change during the Relevant Period in a manner that requires changes to then-existing
Benefit Plans, or that requires other actions, the Company and its Affiliates shall effect such changes to its or their Benefit Plans, and take such other actions, as promptly as practicable after it has actual knowledge of such amendments or
changes in order to be in compliance with this Section 4.5(a) (and shall be deemed to be in compliance for a reasonable period to effect such changes). In addition, the Company and its Affiliates shall take all necessary action, other than to
the extent prohibited by applicable law or regulation applicable outside of the United States, to ensure that the consummation of the transactions contemplated by this Agreement will not accelerate the vesting, payment or distribution of any
equity-based awards, deferred cash awards or any nonqualified deferred compensation payable by the Company or any of its Affiliates. 

(b) Additional Waivers. After the Closing Date and until the end of the Relevant Period, in connection with the hiring
or promotion of a Section 4.5 Employee and/or the promulgation of applicable Compensation Regulations or otherwise, to the extent any Section 4.5 Employee shall not have executed a waiver with respect to the application to such
Section 4.5 Employee of the Compensation Regulations, the Company shall use its best efforts to (i) obtain from such Section 4.5 Employee a waiver in substantially the form attached hereto as Annex B and (ii) deliver
such waiver to the Investor as promptly as possible, in each case, within sixty days of the Closing Date or, if later, within sixty days of such Section 4.5 Employee becoming subject to the requirements of this Section.
“Section 4.5 Employee” means (A) each Senior Executive Officer and (B) any other employee of the Company or its Affiliates determined at any time to be subject to Section 111 of EESA and the Compensation
Regulations. 
 (c) Clawback. In the event that any Section 4.5 Employee receives a payment in contravention of
the provisions of this Section 4.5, the Company shall promptly provide such individual with written notice that the amount of such payment must be repaid to the Company in full within fifteen business days following receipt of such notice or
such earlier time as may be required by the Compensation Regulations and shall promptly inform the Investor (i) upon discovering that a payment in contravention of this Section 4.5 has been made and (ii) following the repayment to the
Company of such amount and shall take such other actions as may be necessary to comply with the Compensation Regulations. 

  
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 (d) Limitation on Deductions. During the Relevant Period, the Company
agrees that it shall not claim a deduction for remuneration for federal income tax purposes in excess of $500,000 for each Senior Executive Officer that would not be deductible if Section 162(m)(5) of the Code applied to the Company. 

(e) Amendment to Prior Agreement. The parties agree that, effective as of the date hereof, Section 4.10 of the
Securities Purchase Agreement shall be amended in its entirety by replacing such Section 4.10 with the provisions set forth in this Section 4.5 and any terms included in this Section 4.5 that are not otherwise defined in the
Securities Purchase Agreement shall have the meanings ascribed to such terms in this Agreement. 
 Section 4.6 Certain
Notifications Until Closing. From the date hereof until the Closing, the Company shall promptly notify the Investor of (i) any fact, event or circumstance of which it is aware and which would reasonably be likely to cause any
representation or warranty of the Company contained in this Agreement to be untrue or inaccurate in any material respect or to cause any covenant or agreement of the Company contained in this Agreement not to be complied with or satisfied in any
material respect and (ii) any fact, circumstance, event, change, occurrence, condition or development of which the Company is aware and which, individually or in the aggregate, has had or would reasonably be likely to have a Company Material
Adverse Effect; provided, however, that delivery of any notice pursuant to this Section 4.6 shall not limit or affect any rights of or remedies available to the Investor; provided, further, that a failure to comply
with this Section 4.6 shall not constitute a breach of this Agreement or the failure of any condition set forth in Section 1.1 to be satisfied unless the underlying Company Material Adverse Effect or material breach would independently
result in the failure of a condition set forth in Section 1.1 to be satisfied. 
 Section 4.7 Monthly Lending
Reports. During the Relevant Period, the Company will detail in monthly reports submitted to the Investor the information required by the CPP Monthly Lending Reports, as published on www.financialstability.gov from time to time. 

Section 4.8 Status Reports. Until all of the Primary Investor Transactions have been consummated (or the Subscription
Agreements have been terminated in accordance with their terms), the Company shall provide the Investor with a reasonably detailed written report regarding the status of each of the Primary Investor Transactions at least once every two weeks and
more frequently if reasonably requested by the Investor. 
 Section 4.9 Amendment of Subscription Agreements. At least
three (3) Business Days prior to entering into any of the Subscription Agreements, the Company will deliver to the Investor a copy of the Subscription Agreement in substantially final form. The Company will not, without the prior written
consent of the Investor, (i) enter into any agreements relating to the Primary Investor Transactions or (ii) agree to any amendment, waiver or modification of the Subscription Agreements (other than corrections of obvious errors, if any,
or other ministerial amendments), in each case, to the extent such amendment, waiver, modification or agreement is adverse to the Investor’s interests under this Agreement. 

  
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 Section 4.10 Remaining Certification and Disclosure Requirements. The Company
acknowledges and agrees to continue to comply with the certification and disclosure requirements set forth in the Compensation Regulations, including without limitation those submissions that are required with respect to the final portion of the
Relevant Period (see, for example, Sections 30.7(c) and (d), Sections 30.11(b) and (c) and Section 30.15(a)(3) of the Compensation Regulations and FAQ-14 in the Frequently Asked Questions to the Compensation Regulations, available at
www.financialstability.gov). For this purpose, the Relevant Period will not end so long as the Investor holds Common Stock. 

Section 4.11 Transferability Restrictions Related to Long-Term Restricted Stock. The Company acknowledges that any
long-term restricted stock (as defined in Section 30.1 of the Compensation Regulations) awarded by the Company that has otherwise vested may not become transferable, or payable in the case of a restricted stock unit, at any time earlier than as
permitted under the schedule set forth in the definition of long-term restricted stock in Section 30.1 of the Compensation Regulations. For this purpose, (a) aggregate financial assistance received (for purposes of the definition of
long-term restricted stock) continues to include the full original liquidation amount with respect to 6,785 Preferred Shares regardless of the value of the Common Stock on the date of the conversion, and (b) repayments (as defined in
Section 30.1 of the Compensation Regulations) include the net proceeds received by the Investor upon the sale of the Common Stock (see FAQ-15 in the Frequently Asked Questions to the Compensation Regulations, available at
www.financialstability.gov). Following the Relevant Period, in the event that any long-term restricted stock awarded by the Company will not become transferable, or payable in the case of a restricted stock unit, under the terms of the
Compensation Regulations, the Company shall cancel such long-term restricted stock and/or restricted stock units. 
 ARTICLE V 

ADDITIONAL AGREEMENTS 

Section 5.1 Unregistered Exchange Shares. The Investor acknowledges that the Exchange Shares have not been registered
under the Securities Act or under any state securities laws. The Investor (a) is acquiring the Exchange Shares pursuant to an exemption from registration under the Securities Act solely for investment with no present intention to distribute
them to any person in violation of the Securities Act or any applicable U.S. state securities laws, (b) will not sell or otherwise dispose of any of the Exchange Shares, except in compliance with the registration requirements or exemption
provisions of the Securities Act and any applicable U.S. state securities laws, and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of
the Exchange and of making an informed investment decision. 

  
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 Section 5.2 Legend. 

(a) The Investor agrees that all certificates or other instruments representing the Exchange Shares will bear a legend
substantially to the following effect: 
 “THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.” 
 (b) In the event that any Exchange Shares
(i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall
issue new certificates or other instruments representing such Exchange Shares, which shall not contain the applicable legend in Section 5.2(a) above; provided that the Investor surrenders to the Company the previously issued certificates
or other instruments. 
 Section 5.3 Certain Transactions. 

(a) The Company will not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or
assets to, any other party unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant,
agreement and condition of this Agreement to be performed and observed by the Company. 
 (b) Without the prior written
consent of the Investor, until such time as the Investor shall cease to own any securities of the Company acquired pursuant to this Agreement (including, for the avoidance of doubt, the Exchange Shares), the Company shall not permit any of its
“significant subsidiaries” (as such term is defined in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) to (i) engage in any merger, consolidation, statutory share
exchange or similar transaction following the consummation of which such significant subsidiary is not wholly-owned by the Company, (ii) dissolve or sell all or substantially all of its assets or property other than in connection with an
internal reorganization or consolidation involving wholly-owned subsidiaries of the Company or (iii) issue or sell any shares of its capital stock or any securities convertible or exercisable for any such shares, other than issuances or sales
in connection with an internal reorganization or consolidation involving wholly-owned subsidiaries of the Company. 
 Section 5.4
Transfer of Exchange Shares. Subject to compliance with applicable securities laws, the Investor shall be permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the Exchange Shares at
any time, including in the Secondary Investor Transactions, and the Company shall take all steps as may be reasonably requested by the Investor to facilitate the Transfer of the Exchange Shares. 

  
 -14- 

 Section 5.5 Registration Rights. The Exchange Shares (and all securities
beneficially owned by the Investor and its Affiliates that are convertible into or exchangeable or exercisable for Common Stock without regard to any limits on conversion contained in the terms thereof) shall be Registrable Securities under the
Securities Purchase Agreement and, upon their issuance, the provisions of Section 4.5 of the Securities Purchase Agreement shall be applicable to them, including with the benefit, to the extent available, of the tacking of any holding period
from the date of issuance of the Preferred Shares. 
 Section 5.6 Voting Matters. 

(a) The Investor agrees that it will vote, or cause to be voted, or exercise its right to consent (or cause its right to
consent to be exercised) with respect to, all Exchange Shares beneficially owned by it and its controlled Affiliates (and which are entitled to vote on such matter) with respect to each matter on which holders of Common Stock are entitled to vote or
consent, other than a Designated Matter, in the same proportion (for, against or abstain) as all other shares of the Common Stock (other than those shares held by holders of greater than 20% of the Common Stock, as the case may be) are voted or
consents are given with respect to each such matter. The Investor agrees to attend all meetings of the Company’s stockholders in person or by proxy for purposes of obtaining a quorum. In order to effectuate the foregoing agreements, to the
maximum extent permitted by applicable law, the Investor hereby grants a proxy appointing each of the Chief Executive Officer and Chief Financial Officer of the Company attorney-in-fact and proxy for it and its controlled Affiliates with full power
of substitution, for and in the name of it and its controlled Affiliates, to vote, express consent or dissent, or otherwise to utilize such voting power in the manner and solely on the terms provided by this Section 5.6 with respect to the
Exchange Shares and the Investor hereby revokes any and all previous proxies granted with respect to the Exchange Shares for purposes of the matters contemplated in this Section 5.6; provided that such proxy may only be exercised if the
Investor fails to comply with the terms of this Section 5.6. The proxy granted hereby is irrevocable prior to the termination of this Agreement, is coupled with an interest and is granted in consideration of the Company entering into this
Agreement and issuing the Exchange Shares to the Investor. 
 (b) The Investor shall retain the right to vote in its sole
discretion all Exchange Shares beneficially owned by it and its controlled Affiliates (and which are entitled to vote on such matter) on any Designated Matter. 

Section 5.7 Restriction on Dividends and Repurchases. 

(a) Until such time as the Investor ceases to own any debt or equity securities of the Company or an Affiliate of the
Company acquired pursuant to this Agreement, neither the Company nor any Company Subsidiary shall, without the consent of the Investor: 

(i) declare or pay any dividend or make any distribution on the Common Stock (other than (A) regular quarterly cash
dividends of not more than the amount of the last quarterly cash dividend per share declared or, if lower, publicly announced an intention to declare, on the Common Stock prior to October 14, 2008, as adjusted for any stock split, stock
dividend, reverse stock split, reclassification or similar transaction, (B) dividends payable solely in shares of Common Stock and (C) dividends or distributions of rights or Junior Stock in connection with a stockholders’ rights
plan); or 

  
 -15- 

 (ii) redeem, purchase or acquire any shares of Common Stock or other capital
stock or other equity securities of any kind of the Company, or any trust preferred securities issued by the Company or any Affiliate of the Company, other than (A) redemptions, purchases or other acquisitions of shares of Common Stock (which
purchase shall be made on a pro rata basis as provided in Section 5.7(b)), (B) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock, in each case in this clause (B) in connection with the
administration of any employee benefit plan in the ordinary course of business (including purchases to offset the Share Dilution Amount (as defined below) pursuant to a publicly announced repurchase plan) and consistent with past practice;
provided that any purchases to offset the Share Dilution Amount shall in no event exceed the Share Dilution Amount, (C) purchases or other acquisitions by a broker-dealer subsidiary of the Company solely for the purpose of market-making,
stabilization or customer facilitation transactions in trust preferred securities of the Company or an Affiliate of the Company, Junior Stock or Parity Stock in the ordinary course of its business, (D) purchases by a broker-dealer subsidiary of
the Company of trust preferred securities or capital stock of the Company or an Affiliate of the Company for resale pursuant to an offering by the Company of such trust preferred securities or capital stock underwritten by such broker-dealer
subsidiary, (E) any redemption or repurchase of rights pursuant to any stockholders’ rights plan, (F) the acquisition by the Company or any of the Company Subsidiaries of record ownership in Junior Stock, Parity Stock or trust
preferred securities of the Company or an Affiliate of the Company for the beneficial ownership of any other persons (other than the Company or any other Company Subsidiary), including as trustees or custodians, and (G) the exchange or
conversion of Junior Stock for or into other Junior Stock or of Parity Stock or of trust preferred securities of the Company or an Affiliate of the Company for or into other Parity Stock (with the same or lesser aggregate liquidation amount) or
Junior Stock, in each case set forth in this clause (G), solely to the extent required pursuant to binding contractual agreements entered into prior to the date hereof or any subsequent agreement for the accelerated exercise, settlement or
exchange thereof for Common Stock (clauses (C) and (F), collectively, the “Permitted Repurchases”). “Share Dilution Amount” means the increase in the number of diluted shares outstanding (determined in
accordance with United States generally accepted accounting principles (“GAAP”), and as measured from the date of the Company’s most recently filed consolidated financial statements prior to the Closing Date) resulting from

  
 -16- 

 
the grant, vesting or exercise of equity-based compensation to employees and equitably adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction.

 (b) Until such time as the Investor ceases to own any debt or equity securities of the Company or an Affiliate of the
Company acquired pursuant to this Agreement, neither the Company nor any Company Subsidiary shall repurchase any Common Stock from any holder thereof, whether by means of open market purchase, negotiated transaction, or otherwise, other than
Permitted Repurchases, unless it offers to repurchase a ratable portion of Common Stock then held by the Investor on the same terms and conditions. 

(c) The parties agree that, effective as of the date hereof, Section 4.8 of the Securities Purchase Agreement shall be
amended in its entirety by replacing such Section 4.8 with the provisions set forth in this Section 5.7 and any terms included in this Section 5.7 that are not otherwise defined in the Securities Purchase Agreement shall have the
meanings ascribed to such terms in this Agreement. 
 Section 5.8 Intentionally Omitted. 

Section 5.9 Bank Holding Company Status. The Company shall maintain its status as a Bank Holding Company for as long as
the Investor owns any debt or equity securities of the Company or an Affiliate of the Company acquired pursuant to this Agreement. 

Section 5.10 Compliance with Employ American Workers Act. Until the Company is no longer deemed a recipient of funding
under Title I of EESA or Section 13 of the Federal Reserve Act for purposes of the EAWA, as the same may be determined pursuant to any regulations or other legally binding guidance promulgated under EAWA, the Company shall comply, and the
Company shall take all necessary action to ensure that its subsidiaries comply, in all respects with the provisions of the EAWA and any regulations or other legally binding guidance promulgated under the EAWA. 

Section 5.11 Observer to the Board of Directors. So long as the Investor and its Affiliates beneficially own at least 5%
of the issued and outstanding Common Stock (treating all securities beneficially owned by the Investor and its Affiliates that are convertible into or exchangeable or exercisable for Common Stock as converted, exchanged or exercised without regard
to any limits on conversion contained in the terms thereof), the Investor shall be entitled to designate one individual to serve as an observer (the “Observer”) to the Board of Directors of the Company, which designation may be
changed from time to time in the sole discretion of the Investor. The Observer shall be entitled to (i) attend all meetings of the Board of Directors of the Company and the board of directors of each subsidiary of the Company, including any
committee meetings of such boards of directors, (ii) receive notices of such meetings concurrently with the members of the Board of Directors of the Company or such boards of directors or committees thereof and (iii) receive all
information provided to members of the Board of Directors of the Company or such boards of directors or committees thereof at such meetings. 

  
 -17- 

 The Observer shall have no voting rights and his or her presence shall not be required for
determining a quorum at any meeting he or she is entitled to attend pursuant to this Section 5.11. 
 ARTICLE VI 

MISCELLANEOUS 

Section 6.1 Termination. This Agreement may be terminated at any time prior to the Closing: 

(a) by either the Investor or the Company if the Closing shall not have occurred by December 31, 2013; provided,
however, that in the event the Closing has not occurred by such date, the parties will consult in good faith to determine whether to extend the term of this Agreement, it being understood that the parties shall be required to consult only
until the fifth day after such date and not be under any obligation to extend the term of this Agreement thereafter; provided, further, that the right to terminate this Agreement under this Section 6.1(a) shall not be available to
any party whose breach of any representation or warranty or failure to perform any obligation under this Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such date; 

(b) by either the Investor or the Company in the event that any Governmental Entity shall have issued an order, decree or
ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable; or 

(c) by the mutual written consent of the Investor and the Company. 

In the event of termination of this Agreement as provided in this Section 6.1, this Agreement shall forthwith become void and there shall
be no liability on the part of either party hereto except that nothing herein shall relieve either party from liability for any breach of this Agreement. 

Section 6.2 Survival of Representations and Warranties. The representations and warranties of the Company made herein or
in any certificates delivered in connection with the Closing shall survive the Closing without limitation. 
 Section 6.3
Amendment. No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized representative of each of the Company and the Investor; provided that the Investor
may unilaterally amend any provision of this Agreement to the extent required to comply with any changes after the date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies
provided by law. 

  
 -18- 

 Section 6.4 Waiver of Conditions. The conditions to each party’s
obligation to consummate the Exchange are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver will be effective unless it is in a writing signed by a duly
authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver. 

Section 6.5 Governing Law; Submission to Jurisdiction, etc. This Agreement and any claim, controversy or dispute arising
under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) in
accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.
Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or
proceedings arising out of or relating to this Agreement or the Exchange contemplated hereby and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 6.6
and (ii) the Investor at the address and in the manner set forth for notices to the Company in Section 6.6, but otherwise in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby
unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Exchange contemplated hereby. 

Section 6.6 Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other
will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second business day following the date of dispatch if delivered
by a recognized next day courier service. All notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such notice. 

If to the Company: 
 Monarch
Community Bancorp, Inc. 
 375 North Willowbrook Road 

Coldwater, Michigan 49036 

Attention: Richard J. DeVries, President & CEO 

Telephone: 517.279.3978 

Facsimile: 517.279.0221 

  
 -19- 

 With a copy to: 

Howard & Howard Attorneys PLLC 

200 South Michigan Avenue, Suite 1100 

Chicago, Illinois 60604 

Attention: Joseph B. Hemker, Esq. 

Telephone: 312.456.3444 

Facsimile:  312.939.5617 

If to the Investor: 
 United
States Department of the Treasury 
 1500 Pennsylvania Avenue, NW 

Washington, DC 20220 
 Attention:
Chief Counsel Office of Financial Stability 
 Facsimile: (202) 927-9225 

Email: OFSChiefCounselNotices@do.treas.gov 

With a copy to: 
 Cadwalader,
Wickersham & Taft LLP 
 One World Financial Center 

New York, NY 10281 
 Attention:
William P. Mills 
 Telephone: (212) 504-6000 

Facsimile:  (212) 504-6666 

Section 6.7 Definitions. 

(a) When a reference is made in this Agreement to a subsidiary of a person, the term “subsidiary” means any
corporation, partnership, joint venture, limited liability company or other entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which a majority of the voting securities or other voting interests,
or a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar functions with respect to such entity, is directly or indirectly
owned by such person and/or one or more subsidiaries thereof. 
 (b) The term “Affiliate” means, with
respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether
through the ownership of voting securities by contract or otherwise. 

  
 -20- 

 (c) The term “Business Combination” means a merger,
consolidation, statutory share exchange or similar transaction that requires the approval of the Company’s stockholders. 

(d) The term “Company Material Adverse Effect” means a material adverse effect on the business, results
of operation or financial condition of the Company and its consolidated subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include: (i) the effects of (A) changes
after the date hereof in general business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United States
or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries or geographic areas in which the Company and its subsidiaries
operate, (B) changes or proposed changes after the date hereof in United States generally accepted accounting principles or regulatory accounting requirements, or authoritative interpretations thereof, (C) changes or proposed changes after
the date hereof in securities, banking and other laws of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (A), (B) and (C), other than changes or occurrences to the
extent that such changes or occurrences have or would reasonably be expected to have a materially disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial
services organizations), (D) changes in the market price or trading volume of the Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated subsidiaries (it being understood and agreed that the
exception set forth in this clause (D) does not apply to the underlying reason giving rise to or contributing to any such change); (E) actions or omissions of the Company or any Company Subsidiary expressly required by the terms of the
Exchange; or (ii) the ability of the Company to consummate the Exchange and the other transactions contemplated by this Agreement and perform its obligations hereunder on a timely basis. 

(e) “Designated Matters” means (i) the election and removal of directors, (ii) the approval of any
Business Combination, (iii) the approval of a sale of all or substantially all of the assets or property of the Company, (iv) the approval of a dissolution of the Company, (v) the approval of any issuance of any securities of the
Company on which holders of Common Stock are entitled to vote, (vi) the approval of any amendment to the articles of incorporation or bylaws of the Company on which holders of Common Stock are entitled to vote and (vii) the approval of any
other matters reasonably incidental to the foregoing subclauses (i) through (vi) as determined by the Investor. 

(f) The term “EAWA” means the Employ American Workers Act (Section 1611 of Division A, Title XVI of the
American Recovery and Reinvestment Act of 2009), Public Law No. 111-5, effective as of February 17, 2009, as may be amended and in effect from time to time. 

(g) The term “Exchange Shares” means shares of Common Stock equal to the number obtained by dividing
(i) the sum of three million fifty three thousand two hundred fifty dollars ($3,053,250) plus all accrued or accumulated and unpaid dividends on the 

  
 -21- 

 
Preferred Shares through the Closing Date by (ii) $0.40. In lieu of any fractional shares of Common Stock, any such fractions shall be rounded up to the nearest whole share and such whole
share shall be included in the Exchange Shares. 
 (h) The term “Junior Stock” means the Common Stock and
any other class or series of stock of the Company the terms of which expressly provide that it ranks junior to the Exchange Shares as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company. 

(i) The term “Parity Stock” means any class or series of stock of the Company the terms of which do not
expressly provide that such class or series will rank senior or junior to the Exchange Shares as to dividend rights and/or as to rights on liquidation, dissolution or winding up of the Company (in each case without regard to whether dividends accrue
cumulatively or non-cumulatively). 
 (j) The term “Preferred Stock” means any and all series of preferred
stock of the Company. 
 (k) The term “Primary Investor Consideration” means the amount equal to no less
than the difference of (i) sixteen million five hundred thousand dollars ($16,500,000) minus (ii) the Secondary Investor Consideration. 

(l) The term “Regulatory Event” means, with respect to the Company, that (i) the Federal Deposit
Insurance Corporation or any other applicable Governmental Entity shall have been appointed as conservator or receiver for the Company or any subsidiary; (ii) the Company or any subsidiary shall have been considered in “troubled
condition” for the purposes of 12 U.S.C. Sec. 1831i or any regulation promulgated thereunder; (iii) the Company or any subsidiary shall qualify as “Undercapitalized,” “Significantly Undercapitalized,” or
“Critically Undercapitalized” as those terms are defined in 12 U.S.C. Sec. 1831o or other applicable Law; or (iv) the Company or any subsidiary shall have become subject to any formal or informal regulatory action requiring the
Company or any subsidiary to materially improve its capital, liquidity or safety and soundness. 
 (m) The term
“Transaction Documents” means this Agreement, the Subscription Agreements and the Common Stock SPAs. 
 (n)
To the extent any securities issued pursuant to this Agreement or the transactions contemplated hereby are registered in the name of a designee of the Investor pursuant to Section 1.1 or 6.8 or transferred to an Affiliate of the Investor, all
references herein to the Investor holding or owning any debt or equity securities of the Company, Exchange Shares or Registrable Securities (and any like variations thereof) shall be deemed to refer to the Investor, together with such designees
and/or Affiliates, holding or owning any debt or equity securities, Exchange Shares or Registrable Securities (and any like variations thereof), as applicable. For the avoidance of doubt, this Section 6.7(n) shall not apply to designees or
transferees who are Secondary Investors. 
 Section 6.8 Assignment. Neither this Agreement nor any right, remedy,
obligation nor liability arising hereunder or by reason hereof shall be assignable by any 

  
 -22- 

 
party hereto without the prior written consent of each other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except
(a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which is the survivor of such Business Combination or the purchaser in such sale,
(b) as provided in Sections 5.4 and 5.5 and (c) an assignment by the Investor of this Agreement to an Affiliate of the Investor; provided that if the Investor assigns this Agreement to an Affiliate, the Investor shall be
relieved of its obligations under this Agreement but (i) all rights, remedies and obligations of the Investor hereunder shall continue and be enforceable and exercisable by such Affiliate, and (ii) the Company’s obligations and
liabilities hereunder shall continue to be outstanding. 
 Section 6.9 Severability. If any provision of this Agreement,
or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances
other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original
intent of the parties. 
 Section 6.10 No Third-Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person or entity other than the Company and the Investor any benefit, right or remedies, except that (i) the provisions of Section 4.4 shall inure to the benefit of the persons referred to in that
Section and (ii) the provisions of Section 5.5 shall inure to the benefit of the persons holding Exchange Shares during any tacked holding period, as contemplated by that Section. 

Section 6.11 Entire Agreement, etc. This Agreement (including the Annexes and Schedules hereto) constitutes the
entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, between the parties, with respect to the subject matter hereof. For the avoidance of doubt, the Securities Purchase
Agreement shall remain in full force and effect, but shall be deemed amended hereby, and any provisions in this Agreement that supplement, duplicate or contradict any provision of the Securities Purchase Agreement shall be deemed to supersede the
corresponding provision of the Securities Purchase Agreement from and after the effective date hereof. 
 Section 6.12
Counterparts and Facsimile. For the convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will
together constitute the same agreement. Executed signature pages to this Agreement may be delivered by facsimile and such facsimiles will be deemed as sufficient as if actual signature pages had been delivered. 

Section 6.13 Specific Performance. The parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled (without the necessity of posting a bond) to specific performance of the terms hereof, this being in
addition to any other remedies to which they are entitled at law or equity. 
 [Remainder of Page Intentionally
Left Blank] 

  
 -23- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written. 
  

					
	MONARCH COMMUNITY BANCORP, INC.
		
	By:	 	  

		 	Name:	 	Richard J. DeVries
		 	Title:	 	President & CEO
	
	UNITED STATES DEPARTMENT OF THE TREASURY
		
	By:	 	  

		 	Name:	 	Timothy G. Massad
		 	Title:	 	Assistant Secretary for Financial Stability

 [Signature Page to Exchange Agreement] 

 ANNEX A 

FORM OF OPINION 
 Subject to customary
limitations, qualifications, and exceptions to be set forth in the letter as delivered at Closing: 
  

	a)	The Company has been duly formed and is validly existing as a corporation and is in good standing under the laws of the jurisdiction of its organization. The Company has all necessary corporate power and authority to
own, operate and lease its properties and to carry on its business as it is being conducted. 

  

	b)	The Bank has been duly formed and is validly existing as a national association and is in good standing under the laws of the jurisdiction of its organization. The Bank has all necessary corporate power and authority to
own, operate and lease its properties and to carry on its business as it is being conducted. 

  

	c)	The Company has the corporate power and authority to execute and deliver the Agreement and to carry out its obligations thereunder (which includes the issuance of the Exchange Shares). 

 

	d)	The Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity. 

 

	e)	The execution, delivery and performance by the Company of the Agreement and the consummation of the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of the
Company and its stockholders, and no further approval or authorization is required on the part of the Company or its stockholders, including, without limitation, by any rule or requirement of any national stock exchange. 

 

	f)	The Exchange Shares have been duly and validly authorized, and, when executed and delivered pursuant to the Agreement, the Exchange Shares will be duly and validly issued, fully paid and nonassessable, and will not be
issued in violation of any preemptive rights. 

  

	g)	 The execution, delivery and performance by the Company of the Agreement and the consummation by the Company of the transactions contemplated thereby,
and compliance by the Company with the provisions thereof, will not (A) violate, conflict with, or result in a breach of any provision of the Company’s certificate of incorporation or bylaws or (B) constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any
lien, security interest, charge or encumbrance upon any of the 

  
 Annex A-1 

	 	
properties or assets of the Company or any Company Subsidiary under any of the terms, conditions or provisions of its organizational documents or any agreement, contract, indenture, lease,
mortgage, power of attorney, evidence of indebtedness, letter of credit, license, instrument, obligation, purchase or sales order, or other commitment, whether oral or written, to which the Company or Company Subsidiary is a party or by which the
Company or any Company Subsidiary is bound or to which any of the property or assets of the Company or any Company Subsidiary is subject, or (C) subject to compliance with the statute and regulations referred to in Section 3.4(b) of the
Agreement violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or decree applicable to the Company or any Company Subsidiary or any of their respective properties or assets known to us except, in the case of
clause (C), for those occurrences that, individually or in the aggregate, have not had and would not reasonably be expected to have a Company Material Adverse Effect. 

 

	h)	Other than such filings and approvals as are required to be made or obtained under any state “blue sky” laws and other than such filings and approvals that have been made or obtained, no notice to, filing
with, exemption or review by, or authorization, consent or approval of, any Governmental Entity is required to be made or obtained by the Company in connection with the consummation by the Company of the Exchange. 

 

	i)	The Company is not and, after giving effect to the issuance of the Exchange Shares pursuant to the Agreement and the other issuances of Common Stock pursuant to the Primary Investor Transactions, will not be on an
“investment company” required to register under the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder. 

  
 Annex A-2 

 ANNEX B 

FORM OF WAIVER 
 In consideration for the
benefits I will receive as a result of the participation of MONARCH COMMUNITY BANCORP, INC. (together with its subsidiaries and affiliates, the “Company”), which is either my employer or the sole shareholder of my employer, in the
United States Department of the Treasury’s (the “Treasury”) Capital Purchase Program and/or any other economic stabilization program implemented by the Treasury under the Emergency Economic Stabilization Act of 2008 (as
amended, supplemented, or otherwise modified, the “EESA”) (any such program, including the Capital Purchase Program, a “Program”), I hereby voluntarily waive any claim against the United States (and each of its
departments and agencies) or the Company or my employer, or any of their respective directors, officers, employees and agents for any changes to my compensation or benefits that are required to comply with the executive compensation and corporate
governance requirements of Section 111 of the EESA, as implemented by any guidance or regulations issued and/or to be issued thereunder, including without limitation the provisions for the Capital Purchase Program, as implemented by any
guidance or regulation thereunder, including the rules set forth in 31 C.F.R. Part 30, or any other guidance or regulations under the EESA and the applicable requirements of the Exchange Agreement, dated as of
            , 2013, by and between the Company and the Treasury (such requirements, the “Limitations”). 

I acknowledge that the Limitations may require modification or termination of the employment, compensation, bonus, incentive, severance, retention and other
benefit plans, arrangements, policies and agreements (including so-called “golden parachute” agreements), whether or not in writing, that I may have with the Company or my employer or in which I may participate as they relate to the period
the United States holds any equity or debt securities of the Company acquired through a Program or for any other period applicable under such Program or Limitations, as the case may be, and I hereby consent to all such modifications. 

This waiver includes all claims I may have under the laws of the United States or any other jurisdiction (whether or not in existence as of the date hereof)
related to the requirements imposed by the Limitations, including without limitation a claim for any compensation or other payments or benefits I would otherwise receive, any challenge to the process by which the Limitations are or were adopted and
any tort or constitutional claim about the effect of these Limitations on my employment relationship and I hereby agree that I will not at any time initiate, or cause or permit to be initiated on my behalf, any such claim against the United States,
the Company, my employer or their respective directors, officers, employees or agents in or before any local, state, federal or other agency, court or body. 

I agree that, in the event and to the extent that the Compensation Committee of the Board of Directors of the Company or similar governing body (the
“Committee”) reasonably determines that any compensatory payment and benefit provided to me, including any bonus or incentive compensation based on materially inaccurate financial statements or performance criteria, would cause the
Company to fail to be in compliance with the Limitations (such payment or benefit, an “Excess Payment”), upon notification from the Company, I shall repay such Excess Payment to 

  
 Annex B-1 

 
the Company within 15 business days. In addition, I agree that the Company shall have the right to postpone any such payment or benefit for a reasonable period of time to enable the Committee to
determine whether such payment or benefit would constitute an Excess Payment. 
 I understand that any determination by the Committee as to whether or not,
including the manner in which, a payment or benefit needs to be modified, terminated or repaid in order for the Company to be in compliance with Section 111 of the EESA and/or the Limitations shall be a final and conclusive determination of the
Committee which shall be binding upon me. I further understand that the Company is relying on this letter from me in connection with its participation in a Program. 

IN WITNESS WHEREOF, I execute this waiver on my own behalf, thereby communicating my acceptance and acknowledgement to the provisions herein. 

 

	
	Respectfully,
	
	  

	Name:
	Title:
	Date:

  
 Annex B-2 

 ANNEX C 

FORM OF COMMON STOCK SPA 

  
 Annex C-1 

 FORM OF 

SECURITIES PURCHASE AGREEMENT 

by and among 
 THE
UNITED STATES DEPARTMENT OF THE TREASURY, 
 [—] 

and, for the purposes of Section 4.02, Section 7.01 and Section 7.04 of this Agreement, 

MONARCH COMMUNITY BANCORP, INC. 

Dated as of [—], 2013 

 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
			
	 I
	 	 DEFINITIONS
	  	 	1	  
		 	 1.01.
	  	 Definitions of Certain Terms
	  	 	1	  
		 	 1.02.
	  	 Interpretation
	  	 	3	  
		 	 1.03.
	  	 Changes Affecting the Shares
	  	 	4	  
			
	 II
	 	 THE SECURITIES PURCHASE
	  	 	4	  
		 	 2.01.
	  	 Purchase and Sale of the Shares
	  	 	4	  
		 	 2.02.
	  	 Closing of the Securities Purchase
	  	 	4	  
			
	 III
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	5	  
		 	 3.01.
	  	 Representations and Warranties of the Purchaser
	  	 	5	  
			
	 IV
	 	 COVENANTS
	  	 	8	  
		 	 4.01.
	  	 Forbearances of the Seller
	  	 	8	  
		 	 4.02.
	  	 Further Action
	  	 	8	  
		 	 4.03.
	  	 Subscription Agreement
	  	 	8	  
			
	 V
	 	 CONDITIONS TO THE CLOSING
	  	 	8	  
		 	 5.01.
	  	 Conditions to Each Party’s Obligations
	  	 	8	  
		 	 5.02.
	  	 Condition to Obligations of the Seller
	  	 	9	  
			
	 VI
	 	 TERMINATION
	  	 	10	  
		 	 6.01.
	  	 Termination Events
	  	 	10	  
		 	 6.02.
	  	 Effect of Termination
	  	 	10	  
			
	 VII
	 	 MISCELLANEOUS
	  	 	11	  
		 	 7.01.
	  	 Waiver; Amendment
	  	 	11	  
		 	 7.02.
	  	 Counterparts
	  	 	11	  
		 	 7.03.
	  	 Governing Law; Choice of Forum; Waiver of Jury Trial
	  	 	11	  
		 	 7.04.
	  	 Expenses
	  	 	11	  
		 	 7.05.
	  	 Notices
	  	 	12	  
		 	 7.06.
	  	 Entire Understanding; No Third Party Beneficiaries
	  	 	13	  
		 	 7.07.
	  	 Assignment
	  	 	13	  
		 	 7.08.
	  	 Severability
	  	 	13	  

  
 i 

 SECURITIES PURCHASE AGREEMENT 

THIS SECURITIES PURCHASE AGREEMENT (as amended, supplemented or otherwise modified from time to time, this
“Agreement”) is dated as of [—], 2013 by and among the United States Department of the Treasury (the “Seller”),
[—], a [—] (the “Purchaser”), and, for the purposes of Section 4.02, Section 7.01 and Section 7.04 of this
Agreement, Monarch Community Bancorp, Inc., a Maryland corporation (the “Company”).  
 RECITALS 

WHEREAS, the Company and the Seller entered into an exchange agreement (the “Exchange Agreement”), pursuant to which
the Company will issue to the Seller shares of Common Stock (the “Shares”), in exchange for the Seller’s (i) 6,785 shares of the Company’s preferred stock designated as Fixed Rate Cumulative Perpetual Preferred Stock,
Series A, and (ii) a ten-year warrant to purchase up to 52,192.40 shares of Common Stock (the “Exchange”); 

WHEREAS, concurrently herewith, the Company is entering into a subscription agreement with the Purchaser (the “Subscription
Agreement”) pursuant to which, among other things, the Company will provide to the Purchaser customary disclosures with respect to the Company, the Purchased Shares (as defined below) and the Securities Purchase (as defined below); and 

WHEREAS, conditioned upon the closing of the Exchange, the Company and the Seller desire that the Seller sell to the Purchaser, and the
Purchaser desires to purchase from the Seller, subject to the terms and conditions contained in this Agreement, [—] Shares at a purchase price of $2.00 per Share (the “Securities
Purchase”). 
 NOW, THEREFORE, in consideration of the premises, and of the various representations, warranties, covenants
and other agreements and undertakings of the parties hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 

AGREEMENT 
  

	I	DEFINITIONS. 

 1.01. Definitions of Certain Terms. For purposes of this
Agreement, the following terms are used with the meanings assigned below (such definitions to be equally applicable to both the singular and plural forms of the terms herein defined): 

“Affiliate” means, with respect to any person, any person directly or indirectly controlling, controlled by or under common
control with, such other person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any person, means
the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise. 

 “Agreement” has the meaning set forth in the introductory paragraph of this
agreement. 
 “BHCA” shall mean the Bank Holding Company Act of 1956, as amended. 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banking organizations in the State of New
York or the State of Michigan are required or authorized by Law to be closed. 
 “Closing” has the meaning set forth in
Section 2.02(A). 
 “Closing Date” has the meaning set forth in Section 2.02(A). 

“Common Stock” means the Company’s common stock, par value $0.05 per share. 

“Company” has the meaning set forth in the recitals to this Agreement. 

“Company Material Adverse Effect” means a material adverse effect on the business, results of operation or financial
condition of the Company and its consolidated Subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include the effects of (i) changes after the date hereof in general
business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United States or foreign securities or credit
markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries in which the Company and its Subsidiaries operate, (ii) changes or proposed changes after
the date hereof in United States generally accepted accounting principles or regulatory accounting requirements, or authoritative interpretations thereof, (iii) changes or proposed changes after date hereof in securities, banking and other laws
of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (i), (ii) and (iii), other than changes or occurrences to the extent that such changes or occurrences have or would
reasonably be expected to have a materially disproportionate adverse effect on the Company and its consolidated Subsidiaries taken as a whole relative to comparable United States banking or financial services organizations), or (iv) changes in
the market price or trading volume of the Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated Subsidiaries (it being understood and agreed that the exception set forth in this clause (iv) does
not apply to the underlying reason giving rise to or contributing to any such change). 
 “Exchange Act” means the U.S.
Securities Exchange Act of 1934, as amended. 
 “Governmental Entity” means any court, administrative agency or commission
or other governmental or regulatory authority or instrumentality or self-regulatory organization. 
 “Law” means any law,
statute, code, ordinance, rule, regulation, judgment, order, award, writ, decree or injunction issued, promulgated or entered into by or with any Governmental Entity. 

“Liens” means any liens, licenses, pledges, charges, encumbrances, adverse rights or claims and security interests
whatsoever. 

  
 2 

 “Prohibited Investor” has the meaning set forth in
Section 3.01(E)(8). 
 “Purchase Price” has the meaning set forth in Section 2.01. 

“Purchased Shares” has the meaning set forth in Section 2.01. 

“Purchaser” has the meaning set forth in the introductory paragraph to this Agreement. 

“Regulatory Event” means, with respect to the Company, that (i) the Federal Deposit Insurance Corporation or any other
applicable Governmental Entity shall have been appointed as conservator or receiver for the Company or any Subsidiary; (ii) the Company or any Subsidiary shall have been considered in “troubled condition” for the purposes of 12 U.S.C.
Sec. 1831i or any regulation promulgated thereunder; (iii) the Company or any Subsidiary shall qualify as “Undercapitalized,” “Significantly Undercapitalized,” or “Critically Undercapitalized” as those terms are
defined in 12 U.S.C. Sec. 1831o or other applicable Law; or (iv) the Company or any Subsidiary shall have become subject to any formal or informal regulatory action requiring the Company or any Subsidiary to materially improve its capital,
liquidity or safety and soundness. 
 “Rule 144” means Rule 144 under the Securities Act. 

“Securities Act” means the U.S. Securities Act of 1933, as amended. 

“Securities Purchase” has the meaning set forth in the recitals in this Agreement. 

“Seller” has the meaning set forth in the introductory paragraph to this Agreement. 

“Shares” has the meaning set forth in the recitals to this Agreement. 

“Subscription Agreement” has the meaning set forth in the recitals in this Agreement. 

“Subsidiary” means, with respect to any person, any bank, corporation, partnership, joint venture, limited liability company
or other organization, whether incorporated or unincorporated, (i) of which such person or a subsidiary of such person is a general partner or managing member or (ii) at least a majority of the securities or other interests of which having
by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar functions with respect to such entity is directly or indirectly owned by such person and/or one or more subsidiaries thereof. 

“Transaction Documents” has the meaning given such term in the Exchange Agreement. 

1.02. Interpretation. The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The term “person” as used in this Agreement shall mean any individual,
corporation, limited liability company, limited or general partnership, joint venture, government or any agency or political subdivision thereof, or any other entity or any group (as defined in Section 13(d)(3) of the

  
 3 

 
Exchange Act) comprised of two or more of the foregoing. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. In this Agreement, all references to “dollars” or “$” are to United States dollars. This Agreement and any documents or instruments delivered pursuant hereto or in connection herewith shall be
construed without regard to the identity of the person who drafted the various provisions of the same. Each and every provision of this Agreement and such other documents and instruments shall be construed as though all of the parties participated
equally in the drafting of the same. Consequently, the parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting party shall not be applicable either to this Agreement or such other documents
and instruments. 
 1.03. Changes Affecting the Shares. In the event the Company at any time or from time to time prior to the
Closing effects a stock dividend, stock split, reverse stock split, combination, reclassification or similar transaction, concurrently with the effectiveness of such stock dividend, stock split, reverse stock split, combination, reclassification or
other similar transaction, each per share amount and per share price set forth in the Transaction Documents (including with respect to the number of Shares being purchased hereunder or under any other Transaction Document and including the $2.00 per
share purchase or exchange price set forth in any of the Transaction Documents) shall be proportionally adjusted; provided that nothing in this Section 1.03 shall be construed to permit the Company to take any action otherwise prohibited
or restricted by any of the Transaction Documents. 
  

	II	THE SECURITIES PURCHASE. 

 2.01. Purchase and Sale of the Shares. Subject
to, and on the terms and conditions of, this Agreement, effective at the Closing, the Purchaser will purchase from the Seller, and the Seller will sell, transfer, convey, assign and deliver to the Purchaser,
[—] Shares at a purchase price of $2.00 per Share (the “Purchased Shares”), free and clear of all Liens. The aggregate purchase price for the Purchased Shares shall be an amount in
cash equal to $[—] (the “Purchase Price”). 
 2.02. Closing
of the Securities Purchase. 
 (A) Subject to Article V, the closing of the Securities Purchase (the
“Closing”) shall be held (1) immediately following the closing of the Exchange or (2) at such other time or date that is agreed to in writing by the Seller and the Purchaser (the date on which the Closing occurs, the
“Closing Date”). The Closing shall be held at the same location as the closing of the Exchange or at such other place as the Seller and the Purchaser shall mutually agree in writing. 

(B) At the Closing, or simultaneously therewith, the following shall occur: 

(1) the Seller will cause to be delivered to the Purchaser certificates for the Purchased Shares, duly endorsed in blank
or accompanied by stock powers duly endorsed in blank or other required instruments of transfer; and 
 (2) the
Purchaser will cause to be paid the aggregate Purchase Price to the Seller, by wire transfer in immediately available funds, to an escrow account designated in writing by the Seller to the Purchaser, such designation to be made not later than two
Business Days prior to the Closing Date. 

  
 4 

	III	REPRESENTATIONS AND WARRANTIES. 

 3.01. Representations and Warranties of the
Purchaser. The Purchaser hereby represents and warrants to the Seller as follows: 
 (A) Existence and
Power. The Purchaser is duly organized and validly existing as a [—] under the laws of [—] and has all requisite power and authority to
execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. 
 (B)
Authorization. The execution and delivery of this Agreement, and the consummation by the Purchaser of the transactions contemplated hereby, have been duly and validly approved by all necessary corporate or other applicable action of the
Purchaser, and no other corporate, shareholder or other proceedings on the part of the Purchaser are necessary to approve this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and
delivered by the Purchaser, and (assuming the due authorization, execution and delivery of this Agreement by the Seller) this Agreement constitutes a valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with
its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies generally. 

(C) Non-Contravention. Neither the execution and delivery of this Agreement nor the consummation by the Purchaser
of the transactions contemplated hereby will violate any provision of the charter or bylaws or similar governing documents of the Purchaser or, assuming that the consents, approvals, filings and registrations referred to in
Section 3.01(D) are received or made (as applicable), applicable Law. 
 (D) Consents and
Approvals. No consents or approvals of, or filings or registrations with, any Governmental Entity or of or with any other third party by and on behalf of the Purchaser are necessary in connection with the execution and delivery by the Purchaser
of this Agreement and the consummation by the Purchaser of the transactions contemplated hereby, except for such filings, consents and approvals that have been made or obtained or will be made or obtained prior to Closing. 

(E) Securities Matters. 

(1) The Purchaser is either (i) an “accredited investor” as defined in Rule 501 under the Securities Act
with total assets in excess of $25,000,000 or (ii) a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act. The Purchased Shares are being acquired by the Purchaser for its own account and without a
view to the public distribution or sale of such Shares. 

  
 5 

 (2) The Purchaser understands that (i) the Purchased Shares are being
sold in a transaction not involving any public offering within the meaning of the Securities Act, and accordingly, such Shares are “restricted securities” within the meaning of Rule 144; (ii) such Shares have not been and will not be
registered under the Securities Act; (iii) if, prior to the expiration of the holding period specified in Rule 144, it decides to offer, resell, pledge or otherwise transfer such Shares, such Shares may be offered, resold, pledged or
transferred only (a) in compliance with Rule 144 or otherwise pursuant to an exemption from registration under the Securities Act or (b) to the Company or one of its Subsidiaries, in each case in accordance with any applicable securities
laws of any state of the United States; and (iv) the Purchaser will, and each subsequent holder is required to, provide the Company and its transfer agent with such certificates and other information as they may reasonably require to confirm
that the transfer complies with the foregoing restrictions. 
 (3) The Purchaser understands that none of the Seller
or the Company is making any representation as to the availability of Rule 144 or Rule 144A under the Securities Act for the offer, resale, pledge or transfer of any Shares, or that any Shares purchased by the Purchaser will ever be able to be sold.

 (4) The Purchaser understands that the Purchased Shares will, until the expiration of the applicable holding period
set forth in Rule 144, unless sold in compliance with Rule 144, bear a legend to substantially the following effect: 
 “THE SECURITIES
REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD, OFFERED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH
ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.” 

(5) The Purchaser acknowledges and agrees that it (i) is a sophisticated investor; (ii) does not require the
assistance of an investment advisor or other purchaser representative to purchase the Purchased Shares; (iii) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its
prospective investment in the Purchased Shares; (iv) has the ability to bear the economic risks of its prospective investment for an indefinite period of time; (v) can afford the complete loss of such investment; and (vi) recognizes
that the investment in the Purchased Shares involves substantial risk. 

  
 6 

 (6) The Purchaser understands that the Seller may have access to
information about the Company that is not generally available to the public, and acknowledges and agrees that, to the extent the Seller has any such information, such information need not (and shall not) be provided to the Purchaser by the Seller.
The Purchaser further understands that the Seller is a federal agency and that the Purchaser’s ability to bring a claim against the Seller under the federal securities laws may be limited. 

(7) The Purchaser acknowledges that it is not relying on any advice or recommendation from the Seller or the Company, or
any investigation or examination that the Seller may have conducted, with respect to the Shares or the Company, and the Seller has not made any representation, warranty or covenant, express or implied, to it with respect thereto and the Seller shall
not have any liability to it with respect thereto. 
 (8) Neither the Purchaser nor any person or entity controlling,
controlled by or under common control with it, nor any person or entity having a beneficial interest in it, nor, to the knowledge of the Purchaser, any director, officer, agent, employee or Affiliate thereof: (i) is a person or entity listed in
the annex to Executive Order No. 13224 (2001) issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism); (ii) is
named on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control (OFAC); (iii) is a Designated National other than an “unblocked national” as defined in the Cuban Assets
Control Regulations, 31 C.F.R. Part 515; (iv) is a non-U.S. shell bank (as set forth in Section 313 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA
PATRIOT Act)) or is providing banking services indirectly to a non-U.S. shell bank; (v) is a senior non-U.S. political figure or an immediate family member or close associate of such figure or an entity owned or controlled by such a figure;
(vi) is a person with whom a U.S. citizen or entity is prohibited from transacting business, whether such prohibition arises under U.S. law, regulation, executive order, anti-money laundering, antiterrorist, financial institution and asset
control laws, regulations, rules or orders, or as a result of any list published by the U.S. Department of Commerce, the U.S. Department of Treasury, or the U.S. Department of State, including any agency or office thereof; (vii) is a person who
has funded or supported terrorism or a suspected terrorist organization or who has engaged in, or derived funds from, activities that relate to the laundering of the proceeds of illegal activity; or (viii) is a person or entity that would cause
the Company to violate any Law (including bank or other financial institution regulatory laws, regulations or orders) to which the Company is subject by reason of such person’s or entity’s purchase of the Purchased Shares (categories
(i) through (viii), each, a “Prohibited Investor”). 

  
 7 

 (9) The Purchaser has met and will continue to meet all of its obligations
under the Bank Secrecy Act, as amended (31 U.S.C. Section 5311 et seq.) and its implementing regulations, if applicable. 

(10) The funds used to purchase the Purchased Shares were legally derived from legitimate sources and not from any
Prohibited Investor. 
 (F) Availability of Funds. Purchaser has, and will have as of the Closing, sufficient
funds available to consummate the transactions contemplated hereunder. 
  

	IV	COVENANTS. 

 4.01. Forbearances of the Seller. From the date hereof until
the Closing, without the prior written consent of the Purchaser, the Seller will not: 
 (A) directly or indirectly
transfer, sell, assign, distribute, exchange, pledge, hypothecate, mortgage, encumber or otherwise dispose of, or engage in or enter into any hedging transactions with respect to, any of the Purchased Shares or any portion thereof or interest
therein (other than pursuant to the Securities Purchase); or 
 (B) agree, commit to or enter into any agreement to
take any of the actions referred to in Section 4.01(A). 
 Notwithstanding the foregoing, the Seller may undertake any of the
actions set forth in Section 4.01(A) with an Affiliate of the Seller so long as this Agreement is assigned to such Affiliate in accordance with Section 7.07 of this Agreement. For the avoidance of doubt, until the Closing,
except as expressly set forth in this Section 4.01, the Seller shall continue to be able to exercise all rights and privileges with respect to the Purchased Shares. 

4.02. Further Action. Each of the Seller, the Purchaser and the Company (A) shall each execute and deliver, or shall cause
to be executed and delivered, such documents and other instruments and shall take, or shall cause to be taken, such further action as may be reasonably necessary to carry out the provisions of this Agreement and give effect to the transactions
contemplated by this Agreement, and (B) shall refrain from taking any actions that could reasonably be expected to impair, delay or impede the Closing or the consummation of the transactions contemplated by this Agreement. 

4.03. Subscription Agreement. The Purchaser will not agree to any amendment, waiver or modification of the Subscription
Agreement (other than corrections of obvious errors, if any, or other ministerial amendments) without the prior written consent of the Seller, in each case to the extent such amendment, waiver or modification is adverse to the Seller’s
interests under this Agreement. 
  

	V	CONDITIONS TO THE CLOSING. 

 5.01. Conditions to Each Party’s
Obligations. The respective obligations of each of the Purchaser and the Seller to consummate the Securities Purchase are subject to the fulfillment, or written waiver by the Purchaser and the Seller, prior to the Closing, of each of the
following conditions: 
 (A) Closing of the Exchange. The closing of the Exchange shall have occurred prior to
the Closing. 

  
 8 

 (B) Regulatory Approvals. All regulatory approvals required to
consummate the Securities Purchase shall have been obtained and shall remain in full force and effect and all statutory waiting periods in respect thereof shall have expired or been terminated. 

(C) No Injunctions or Restraints; Illegality. No order, injunction or decree issued by any court or agency of
competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Securities Purchase shall be in effect. No Law shall have been enacted, entered, promulgated or enforced by any Governmental Entity which prohibits or
makes illegal the consummation of the Securities Purchase. 
 5.02. Condition to Obligations of the Seller. The obligation of
the Seller to consummate the Securities Purchase is also subject to the fulfillment, or written waiver by the Seller, prior to the Closing, of the following conditions: 

(A) Other Events. None of the following shall have occurred with respect to the Company or any of its
Subsidiaries: 
 (1) the Company or any of its Subsidiaries shall have (a) dissolved (other than pursuant to a
consolidation, amalgamation or merger); (b) become insolvent or unable to pay its debts or failed or admitted in writing its inability generally to pay its debts as they become due; (c) made a general assignment, arrangement or composition
with or for the benefit of its creditors; (d) instituted or have instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting
creditors’ rights, or a petition shall have been presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition shall have resulted in a judgment
of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; (e) had a resolution passed for its winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (f) sought or shall have become subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (g) had a secured party take possession of all or substantially all its assets or had a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or
substantially all its assets; (h) caused or shall have been subject to any event with respect to it which, under the applicable laws of any jurisdiction, had an analogous effect to any of the events specified in clauses (a) to
(g) (inclusive); or (i) taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; 

  
 9 

 (2) a Governmental Entity in any jurisdiction shall have
(a) commenced an action or proceeding against the Company or any of its Subsidiaries; or (b) issued or entered a temporary restraining order, preliminary or permanent injunction or other order applicable to the Company or any of its
Subsidiaries, which in the case of (a) and (b) shall have had or shall be reasonably expected to have a Company Material Adverse Effect; 

(3) any fact, circumstance, event, change, occurrence, condition or development shall have occurred that, individually
or in the aggregate, shall have had or shall be reasonably likely to have a Company Material Adverse Effect; or 
 (4)
any Regulatory Event not otherwise existing on the date hereof. 
 (B) Representations and Warranties of the
Purchaser. The representations and warranties set forth in Article III of this Agreement shall be true and correct in all material respects as though made on and as of the Closing Date. 

(C) Performance Obligations. The Purchaser shall have performed in all respects all obligations required to be
performed by it under this Agreement at or prior to the Closing. 
 (D) Closing Certificate. The Purchaser
shall deliver to the Seller a certificate, dated the Closing Date, signed on behalf of the Purchaser by a senior executive officer thereof certifying to the effect that the conditions precedent to the Closing set forth in Section 5.01
and Section 5.02 have been satisfied. 
  

	VI	TERMINATION. 

 6.01. Termination Events. 

(A) This Agreement may be terminated at any time prior to the Closing: 

(1) by mutual written agreement of the Purchaser and the Seller; or 

(2) by the Seller, upon written notice to the Purchaser, in the event that the Closing Date does not occur on or before
December 31, 2013 or such later date, if any, as Seller shall agree to in writing; provided, however, that the right to terminate this Agreement pursuant to this Section 6.01(A)(2) shall not be available if
Seller’s failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing Date to occur on or prior to such date. 

(B) This Agreement shall automatically terminate upon the termination of the Exchange Agreement in accordance with its
terms. 
 6.02. Effect of Termination. In the event of termination of this Agreement as provided in Section 6.01,
this Agreement shall forthwith become void and have no effect, and none of the Seller, the Purchaser, any affiliates of the Purchaser or any officers or directors of the Purchaser 

  
 10 

 
or any of its affiliates shall have any liability of any nature whatsoever hereunder, or in connection with the transactions contemplated hereby, except that this Section 6.02 and
Sections 7.03, 7.04, 7.05 and 7.06 shall survive any termination of this Agreement. 
  

	VII	MISCELLANEOUS. 

 7.01. Waiver; Amendment. Any provision of this Agreement
may be waived, amended or modified at any time by an agreement in writing signed by each of the Seller, the Purchaser and the Company. Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement or
any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power
or privilege. 
 7.02. Counterparts. This Agreement may be executed by facsimile or other electronic means and in
counterparts, all of which shall be considered an original and one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties
need not sign the same counterpart. 
 7.03. Governing Law; Choice of Forum; Waiver of Jury Trial. 

(A) This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of
the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) in accordance with the federal law of the United States if and
to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the
exclusive jurisdictions and venue of the United States District Court of the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the
transactions contemplated hereby, and (b) that notice may be served upon (i) the Purchaser at the address and in the manner set forth for notices to the Purchaser in Section 7.05 and (ii) the Seller at the address and in
the manner set forth for notices to the Seller in Section 7.05, but otherwise in accordance with federal law. 

(B) To the extent permitted by applicable Law, each of the parties hereto hereby unconditionally waives trial by jury in
any civil legal action or proceeding relating to this Agreement or the transactions contemplated hereby. 
 7.04. Expenses. If
requested by the Seller, the Company shall pay all reasonable out of pocket and documented costs and expenses associated with this Agreement and the transactions contemplated by this Agreement, including, but not limited to, the reasonable fees,
disbursements and other charges of the Sellers’s legal counsel and financial advisors. 

  
 11 

 7.05. Notices. All notices and other communications hereunder shall be in writing
and shall be deemed given on the date of delivery if delivered personally or telecopied (upon telephonic confirmation of receipt), on the first Business Day following the date of dispatch if delivered by a recognized next day courier service, or on
the third Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered as set forth below or pursuant to such other instructions as may
be designated in writing by the party to receive such notice: 
 If to the Purchaser to: 

[—] 

[—] 

[—] 

Attention: [—] 

Telephone: [—] 

Fax: [—] 

With a copy to: 
 [—] 
 [—] 

[—] 

Attention: [—] 

Telephone: [—] 

Fax: [—] 

If to the Seller to: 
 United
States Department of the Treasury 
 1500 Pennsylvania Avenue, NW 

Washington, D.C. 20220 

Facsimile: (202) 927-9225 

Attention: Chief Counsel Office of Financial Stability 

With a copy to: 
 Cadwalader,
Wickersham & Taft LLP 
 One World Financial Center 

New York, NY 10281 
 Attention:
William P. Mills 
 Telephone: (212) 504-6000 

Facsimile: (212) 504-6666 

  
 12 

 If to the Company: 

Monarch Community Bancorp, Inc. 

375 North Willowbrook Road 

Coldwater, Michigan 49036 

Attention: Richard J. DeVries, President & CEO 

Telephone: (517) 279-3978 

Facsimile: (517) 279-0221 

With a copy to: 

Howard & Howard Attorneys PLLC 

200 South Michigan Avenue, Suite 1100 

Chicago, Illinois 60604 

Attention: Joseph B. Hemker, Esq. 

Telephone: (312) 456-3444 Facsimile: (312) 939-5617 

7.06. Entire Understanding; No Third Party Beneficiaries. This Agreement (together with the documents, agreements and
instruments referred to herein) represents the entire understanding of the parties with respect to the subject matter hereof and supersedes any and all other oral or written agreements heretofore made with respect to the subject matter hereof.
Nothing in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto, any rights or remedies hereunder. 

7.07. Assignment. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof
shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be null and void; provided,
however, that the Seller may assign this Agreement to an Affiliate of the Seller. If the Seller assigns this Agreement to an Affiliate, the Seller shall be relieved of its obligations and liabilities under this Agreement but (i) all
rights, remedies, obligations and liabilities of the Seller hereunder shall continue and be enforceable by and against and assumed by such Affiliate, (ii) the Purchaser’s obligations and liabilities hereunder shall continue to be
outstanding and (iii) all references to the Seller herein shall be deemed to be references to such Affiliate. The Seller will give the Purchaser notice of any such assignment; provided, that the failure to provide such notice shall not
void any such assignment. 
 7.08. Severability. Any term or provision of this Agreement which is determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid, illegal or unenforceable the remaining
terms and provisions of this Agreement. or affecting the validity, legality or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction, and if any provision of this Agreement is determined to be so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as is enforceable, in all cases so long as neither the economic nor legal substance of the transactions contemplated hereby is affected in any manner materially adverse to any
party or its shareholders. Upon any such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties. 

[Remainder of page intentionally left blank] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written. 
  

			
	[—]
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	UNITED STATES DEPARTMENT OF THE TREASURY
		
	By:	 	  

		 	Name: Timothy G. Massad
		 	Title: Assistant Secretary for Financial Stability

 [Signature Page to Securities Purchase Agreement] 

 For the purposes of Section 4.02, Section 7.01 and
Section 7.04 of this Agreement: 
  

					
	MONARCH COMMUNITY BANCORP, INC.
		
	By:	 	  

		 	Name:	 	Richard J. DeVries
		 	Title:	 	President & CEO

 [Signature Page to Securities Purchase Agreement]

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