Document:

EX-10(U)

Exhibit 10(u)

AMENDMENT TO

EMPLOYMENT AGREEMENT

BY AND BETWEEN

FRANKLIN SAVINGS AND LOAN COMPANY

AND

GREGORY W. MEYERS

     This Amendment (this “Amendment”) to the Employment Agreement (“Agreement”) by and between
Franklin Savings and Loan Company (“Employer”) and Gregory W. Meyers (“Employee”), effective as of
August 15, 2004, is effective as of the 30th day of December, 2008.

RECITALS

     WHEREAS, the Employer and the Employee previously entered into the Agreement with a term
ending on August 15, 2011, as extended by the Employer pursuant to an Employment Agreement
Extension effective March 31, 2008; and

     WHEREAS, the Employer and the Employee desire to amend the Agreement to comply with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended, effective as of the
date first set forth above.

AMENDMENT

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Employer and the
Employee hereby agree as follows:

	1.	 	Section 4(a)(i) of the Agreement is hereby deleted in its entirety and replaced with the
following:

(i) The Employer shall promptly, but in no event later than 60 days following the
Employee’s termination, pay to the Employee or to his beneficiaries, dependents or
estate an amount equal to three times the Employee’s “average annual compensation”
as such term is defined in Section 280G of the Internal Revenue Code of 1986, as
amended (“Code”).

	2.	 	Section 4(b) of the Agreement is hereby deleted in its entirety and replaced with the
following:

(b) Termination without Change of Control. In the event that the Employer
terminates the employment of the Employee for any reason other than Just Cause, and
the termination is not in connection with a Change of Control pursuant to Section
4(a) of this Agreement, the Employer shall be obligated to continue to (i) pay on a
monthly basis to the Employee, his designated beneficiaries or his estate, his
annual salary provided pursuant to Section 3(a) of this Agreement as of the date of
termination for a period of twelve (12) months beginning on the date of

 

 

the Employee’s termination; and (ii) provide to the Employee, his eligible
dependents and beneficiaries, at the Employer’s expense, group health benefits,
hospitalization and disability benefits substantially equal to those being provided
to the Employee at the date of termination of his employment, to the extent
permitted under the terms of such plans, until the earliest to occur of: (A) the
first anniversary of the effective date of the Employee’s termination, or (B) the
Employee is included in another employer’s plans providing comparable benefits and
coverage.

	3.	 	New Section 4(g) is hereby added to the Agreement as follows:

(g) Reimbursement or Payment of Certain Expenses. Notwithstanding the foregoing,
(i) any amounts or benefits that will be paid or provided under Section 4(a)(ii) or
4(b)(ii) with respect to group health or hospitalization benefits after completion
of the time period described in Treasury Regulation §1.409A-1 (b)(9)(v)(B), and (ii)
any amounts or benefits that will be paid or provided under Section 4(a)(ii) or
4(b)(ii) with respect to disability insurance coverage shall be subject to the
following: (A) the amount of expenses eligible for reimbursement or benefits
provided during any taxable year of the Employee may not affect the expenses
eligible for reimbursement or benefits to be provided to the Employee in any other
taxable year; (B) the reimbursement of any eligible expense must be made on or
before the last day of the Employee’s taxable year following the Employee’s taxable
year in which the expense was incurred; and (C) the right to reimbursement or
benefits is not subject to liquidation or exchange for another benefit.

	4.	 	New Section 4(h) is hereby added to the Agreement as follows:

(h) Definition of “Termination”. For purposes of this Agreement, no payment on
account of the Employee’s “termination” shall be made pursuant to this Agreement
unless such termination also constitutes a “separation from service”, within the
meaning of Section 409A of the Code, by Employee from the Employer and all entities
with whom the Employer would be treated as a single employer under Sections 414(b)
and (c) of the Code.

	5.	 	New Section 4(i) is hereby added to the Agreement as follows:

(i) 6-Month Delay for Certain Payments. Notwithstanding the foregoing, if the
Employee is a “specified employee” of the Employer within the meaning of Section
409A of the Code and as determined under the Employer’s policy for determining
specified employees, on the date of his termination, and the Employee is entitled to
a payment and/or a benefit under this Agreement that is required to be delayed
pursuant to Section 409A(a)(2) of the Code, then such payment or benefit shall not
be paid or provided (or begin to be paid or provided) until the first business day
of the seventh month following the Employee’s date of termination (or, if earlier,
the Employee’s death). The first payment that can be

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made following such postponement period shall include the cumulative amount of any
payments or benefits that could not be paid or provided during such postponement
period due to the application of Section 409A(a)(2)(B)(i) of the Code.

	6.	 	Section 5(a) of the Agreement is hereby amended by adding the following sentence to the end
thereof:

To the extent that applicable law requires that payments of deferred compensation
subject to Section 409A of the Code be delayed, such payment shall be made on the
earliest date that the Employer reasonably believes that payment will comply with
applicable law.

	7.	 	New Section 16 is hereby added to the Agreement as follows:

16. Section 409A of the Code. The parties intend that this Agreement comply with,
or be exempt from, the requirements of Section 409A of the Code, as applicable, and,
to the maximum extent permitted by law, shall administer, operate and construe this
Agreement accordingly. Nothing herein shall be construed as the guarantee of any
particular tax treatment to the Employee. The Company shall have no liability in
the event this Agreement fails to comply with the requirements of Section 409A of
the Code.

            IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first
set forth above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	EMPLOYER	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	FRANKLIN SAVINGS AND LOAN COMPANY	 	 	 	 	 	/s/ Gregory W. Meyers	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 

	 	 	 	 	 	 	 	 	 	Gregory
	 	W. Meyers	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Gretchen J. Schmidt	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Printed Name: Gretchen J. Schmidt

Its: President
	 	 	 	 	 	 	 	 	 

3EX-10.11

Exhibit 10.11

Amendment #1 To The

Monarch Community Bancorp, Inc.

Employment Agreement

          THIS AMENDMENT (the “Amendment”), is made and entered into as of December 31, 2008 by and
between Monarch Community Bancorp, Inc., on its behalf and on behalf of all of its subsidiaries and
affiliated corporations or associations (“Affiliates”), located at 375 North Willowbrook Road,
Coldwater, Michigan 49036 (collectively referred to as the “Company”), and Donald L. Denney
(“Executive”).

          WHEREAS, the Executive serves as President and Chief Executive Officer of the Company and the
Company’s Affiliate, Monarch Community Bank (the “Bank”) pursuant to the terms of an employment
agreement dated September 20, 2006 (the “Agreement”); and

          WHEREAS, the Company and the Executive wish to amend the Agreement to satisfy the requirements
of Section 409A of the Internal Revenue Code; and

          WHEREAS, except as otherwise provided in this Amendment, the Agreement shall continue in full
force and effect.

          NOW, THEREFORE, in consideration of the premises and of the covenants herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company, the Bank and the Executive agree to amend the Agreement as follows:

	1.	 	Section 6 of the Agreement is amended to provide as follows:

6. Expenses. During the Term of this Agreement, Executive shall be entitled to receive prompt
reimbursement of all reasonable expenses incurred (in accordance with the policies and
procedures of the Company and the Bank) in performing services under this Agreement, provided
that Executive properly accounts for expenses in accordance with the policies of the Company
and the Bank. Reimbursement under this section will be paid no later than March 15 of the
calendar year following the calendar year in which the expenses were incurred.

	2.	 	Section 7(d) of the Agreement is amended to provide as follows:

     (d) Conferences and Continuing Education. Executive shall be permitted to attend
appropriate industry-wide and statewide banking conventions and professional development
meetings necessary to keep Executive abreast of developments in the industry. All reasonable
expenses of attending such meetings, including the attendance by Executive’s spouse, shall be
at the expense of the Company.
Reimbursement under this section will be paid no later than March 15 of the calendar year
following the calendar year in which the expenses were incurred.

 

 

	3.	 	Section 10(b) of the Agreement is amended to provide as follows:

     (b) Termination of Employment by the Board of Directors Without Cause. In the
event the Board of Directors terminates Executive’s employment without “Cause” (as defined in
Section 10(d)) prior to a Change of Control (as defined in Section 10(e)), Executive shall be
entitled to a lump sum payment, within 30 days after Executive’s termination of employment, in
an amount equal to his Base Salary and to continue to participate in the Company’s health care
plan for one (1) year following the date of termination of employment. In the event, after the
termination of Executive’s employment, coverage of Executive under the Company’s health care
plan does not qualify under the federal tax laws for the same tax treatment as coverage of
active employees of the Company, or if the insurer for the health care plan prohibits
Executive’s continued participation in such plan, the Company shall, in its discretion, either
provide substantially equivalent health care coverage to Executive or pay to Executive a lump
sum payment in an amount in cash equal to the cost to the Company of Executive’s continued
participation in the Company’s health care plan no later than the March 15 of the calendar
year following the calendar year in which Executive’s employment terminates.

	4.	 	Section 10(e)(i) of the Agreement is amended to provide as follows:

     (i) If, following a Change of Control, this Agreement is terminated by the Company without
Cause or by Executive for “Good Reason,” Executive shall be entitled to a lump sum payment,
within 30 days after Executive’s termination of employment, in an amount equal to his Base
Salary and to continue to participate in the Company’s health care plan for a period of two (2)
years following such termination. In the event of termination by Executive for Good Reason,
Executive shall provide notice to the Chairman of the Board of Directors specifying the facts
and circumstances surrounding his belief that “Good Reason” exists and the Company shall have
the right to cure those matters within thirty (30) days from the date of notice. In the event,
after the termination of Executive’s employment, coverage of Executive under the Company’s
health care plan does not qualify under the federal tax laws for the same tax treatment as
coverage of active employees of the Company, or if the insurer for the health care plan
prohibits Executive’s continued participation in such plan, the Company shall, in its
discretion, either provide substantially equivalent health care coverage to Executive or pay to
Executive a lump sum payment in an amount in cash equal to the cost to the Company of
Executive’s continued participation in the Company’s health care plan no later than the March
15 of the calendar year following the calendar year in which Executive’s employment terminates.

	5.	 	A new Section 20 is added to the Agreement to provide as follows:

     20. Compliance with Section 409A. Notwithstanding any provision of this Agreement to the
contrary, if the Executive is considered a Specified Employee as of

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his employment termination as determined pursuant to Section 409A of the Code, payments under this Agreement that are made
upon such termination of employment may not, to the extent required by Section 409A of the
Code, commence to Executive until the six month anniversary of the date that Executive’s
employment with the Company terminates and the first payment to Executive shall be a lump sum
payment of the amount that would have otherwise been payable to Executive had a delay in
payment not been required pursuant to Section 409A of the Code. The remainder of the payments
to Executive will be made in accordance with the Company’s or its successor’s regular payroll
practices then in effect. The parties intend, however, that this Agreement shall be exempt from
the 409A as either a separation pay arrangement under Treas. Reg. 1.409A-1(b)(9) or a short
term deferral of compensation under 1.409A-1(b)(4).

          IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	MONARCH COMMUNITY BANCORP, INC.	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Stephen M. Ross	 	 	 	/s/ Donald L. Denney	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Stephen M. Ross	 	 	 	DONALD L. DENNEY	 	 
	 

	 	Its:
	 	Chairman	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Witness:

	 	/s/ Andrew J. Van Doren
	 	 
	 	 
	 	 
	 

	 	 

	 	 
	 	 
	 	 

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