Document:

EX-10.12

Exhibit 10.12

AMENDMENT #1 TO

MANAGEMENT CONTINUITY AGREEMENT

          This Amendment #1 to Management Continuity Agreement (the “Amendment”) is entered into as of
the 31st day of December, 2008 between Monarch Community Bancorp, Inc., a Maryland corporation (the
“Company”), and Andrew J. Van Doren (“Executive”).

          WHEREAS, the Executive is currently employed by the Company’s affiliate, Monarch Community
Bank (the “Bank”), as its Senior Vice President, Chief Compliance Officer and General Counsel; and

          WHEREAS, the Company and Executive have previously entered into a Management Continuity
Agreement dated December 16, 2004 (the “Agreement”) to provide certain security to Executive in
connection with a change in control of the Company or the Bank and hereby wish to amend the
Agreement to satisfy the requirements of Section 409A of the Internal Revenue Code (“Section
409A”); and

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

          NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto agree as follows:

	1.	 	The last sentence of Section 3.3 of the Agreement is amended to provide as follows:

The preceding events shall only provide the basis for “Good Reason” if Executive provides
notice of such events within one hundred twenty (120) days of their occurrence in the manner
required by Section 5.1 of this Agreement and, within 30 days after receiving notice, the
Company fails to remedy the condition.

	2.	 	Section 4.2 is amended to provide as follows:

4.2 Section 162(m). Should payments be precluded from deduction by the Company under Section
162(m) of the Code, the Company may defer until the first day, in no event later than March 15,
of the tax year following the year in which determination is made that payments will be
non-deductible under 162(m) (the “Determination Year”) only those amounts necessary to maintain
the tax deductibility of compensation paid to Executive in the Determination Year.

	3.	 	A new Section 14 is added to the Agreement to provide as follows:

     14. Compliance with Section 409A. Notwithstanding any provision of this Agreement to the
contrary, if the Executive is considered a Specified Employee as of
his employment termination as determined pursuant to Section 409A of the Internal Revenue
Code (“Section 409A”), payments under this Agreement that are made upon

 

 

such termination of employment may not, to the extent required by Section 409A, 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.
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 Section 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/ Donald L. Denney	 	 	 	/s/ Andrew J. Van Doren	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Donald L. Denney	 	 	 	Andrew J. Van Doren	 	 
	 

	 	Its:
	 	President and Chief Executive Officer	 	 	 	 	 	 

2EX-10.13

Exhibit 10.13

AMENDMENT #1 TO

MANAGEMENT CONTINUITY AGREEMENT

          This Amendment #1 to Management Continuity Agreement (the “Amendment”) is entered into as of
the 31st day of December, 2008 between Monarch Community Bancorp, Inc., a Maryland corporation (the
“Company”), and Rebecca S. Crabill (“Executive”).

          WHEREAS, the Executive is currently employed by the Company’s affiliate, Monarch Community
Bank (the “Bank”), as its Senior Vice President and Chief Financial Officer; and

          WHEREAS, the Company and Executive have previously entered into a Management Continuity
Agreement dated February 21, 2008 (the “Agreement”) to provide certain security to Executive in
connection with a change in control of the Company or the Bank and hereby wish to amend the
Agreement to satisfy the requirements of Section 409A of the Internal Revenue Code (“Section
409A”); and

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

          NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto agree as follows:

	1.	 	The last sentence of Section 3.3 of the Agreement is amended to provide as follows:

The preceding events shall only provide the basis for “Good Reason” if Executive provides
notice of such events within one hundred twenty (120) days of their occurrence in the manner
required by Section 5.1 of this Agreement and, within 30 days after receiving notice, the
Company fails to remedy the condition.

	2.	 	Section 4.2 is amended to provide as follows:

4.2 Section 162(m). Should payments be precluded from deduction by the Company under Section
162(m) of the Code, the Company may defer until the first day, in no event later than March 15,
of the tax year following the year in which determination is made that payments will be
non-deductible under 162(m) (the “Determination Year”) only those amounts necessary to maintain
the tax deductibility of compensation paid to Executive in the Determination Year.

	3.	 	A new Section 14 is added to the Agreement to provide as follows:

     14. Compliance with Section 409A. Notwithstanding any provision of this Agreement to the
contrary, if the Executive is considered a Specified Employee as of
his employment termination as determined pursuant to Section 409A of the Internal Revenue
Code (“Section 409A”), payments under this Agreement that are made upon

 

 

such termination of employment may not, to the extent required by Section 409A, 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.
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 Section 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/ Donald L. Denney	 	 	 	/s/ Rebecca S. Crabill	 	 
	 	 	 	 	 	 	 	 	 
	 	 	Donald L. Denney	 	 	 	Rebecca S. Crabill	 	 
	 

	 	Its:
	 	President and Chief Executive Officer	 	 	 	 	 	 

2exv4w8

Exhibit 4.8

			
	 	 	 
	RIGHTS CERTIFICATE #:
	 	NUMBER OF RIGHTS

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS

DATED                      __, 2009 (THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF

THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM MORROW & CO., LLC, THE INFORMATION AGENT.

Kona Grill, Inc.

Incorporated under the laws of the State of Delaware

SUBSCRIPTION RIGHTS CERTIFICATE

Evidencing Subscription Rights to Purchase Shares of Common Stock of Kona Grill, Inc.

Subscription Price: $[___] per Share

THE SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN DAYLIGHT SAVINGS TIME,
ON                      [ ], 2009, UNLESS EXTENDED BY THE COMPANY

REGISTERED

      OWNER:

	 	 	 
	THIS CERTIFIES THAT the registered owner
whose name is inscribed hereon is the
owner of the number of subscription rights
(“Rights”) set forth above. Each whole
Right entitles the holder thereof to
subscribe for and purchase one share of
Common Stock, with a par value of $0.01
per share, of Kona Grill, Inc., a Delaware
corporation, at a subscription price of
$[___] per share (the “Basic Subscription
Right”), pursuant to a rights offering
(the “Rights Offering”), on the terms and
subject to the conditions set forth in the
Prospectus.

	 	Four of the Company’s noteholders are entitled to subscribe for additional shares of Common
Stock that remain unsubscribed for as a result of any unexercised Basic Subscription Rights
pursuant to the terms and conditions of the Rights Offering, subject to proration, as
described in the Prospectus (the “Over-Subscription Privilege”). The Rights represented by
this Subscription Rights Certificate may be exercised by completing Form 1 and any other
appropriate forms on the reverse side hereof and by returning the full payment of the
subscription price for each share of Common Stock.
	 
	 	 
	This Subscription Rights Certificate is not
valid unless countersigned by the
subscription agent and registered by the
registrar.
Witness the seal of Kona Grill, Inc. and the
signatures of its duly authorized officers.

	 
	 	 
	Date:
	 	 

	 	 	 	 	 	 	 	 	 
	 
	 

	 	 

Marcus E. Jundt,
	 	 
	 	 

                                                            ,
	 	 
	 

	 	Chief Executive Officer
	 	 	 	Executive Vice President	 	 
	 

	 	 	 	 	 	Continental Stock Transfer & Trust Company	 	 

 

 

DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

Delivery other than in the manner or to the addresses listed below will not constitute valid delivery.

If delivering by Hand/Mail/Overnight Courier:

Continental Stock Transfer & Trust Company

Attn: Reorganization Department

17 Battery Place, 8th Floor

New York, New York 10004

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS

To subscribe for shares pursuant to your Basic Subscription Right, please complete lines (a)
and (c) and sign under Form 4 below. To subscribe for shares pursuant to your
Over-Subscription Privilege, if applicable, please also complete line (b) and sign under Form
4 below. To the extent you subscribe for more shares than you are entitled under either the
Basic Subscription Right or the Over-Subscription Privilege, you will be deemed to have
elected to purchase the maximum number of shares for which you are entitled to subscribe
under the Basic Subscription Right or Over-Subscription Privilege, as applicable.

(a) EXERCISE OF BASIC SUBSCRIPTION RIGHT:

	 	 	 	 	 	 	 	 	 	 	 
	I apply for

	 	                                        
	 shares x	 $ [___]
	              	=
	 	$                    
	 	 
	 

	 	(no. of new shares)
	 	(subscription price)
	 	 	 	(amount enclosed)	 	 

(b) EXERCISE OF OVER-SUBSCRIPTION PRIVILEGE:

If you are one of the Company’s four noteholders that is entitled to the Over-Subscription
Right and wish to subscribe for additional shares on a pro rata basis based on the aggregate
amount of notes outstanding:

	 	 	 	 	 	 	 	 	 	 	 
	I apply for

	 	                                        
	 shares x	 $ [___]
	              	=
	 	$                    
	 	 
	 

	 	(no. of new shares)
	 	(subscription price)
	 	 	 	(amount enclosed)	 	 

(c) Total Amount of Payment Enclosed = $                                        

METHOD OF PAYMENT (CHECK ONE)

	o	 	Check or bank draft drawn on a U.S. bank, or postal, telegraphic, or express money
order payable to “Continental Stock Transfer & Trust Company, as Subscription Agent.”
Funds paid by an uncertified check may take at least five business days to clear.
	 
	o	 	Wire transfer of immediately available funds directly to the account maintained by
Continental Stock Transfer & Trust Company, as Subscription Agent, for purposes of
accepting subscriptions in this Rights Offering at JPMorgan Chase Bank, ABA #021000021,
Account # 475-506979, Continental Stock Transfer & Trust Company FBO Kona Grill, Inc.,
with reference to the rights holder’s name.

FORM 2-DELIVERY TO DIFFERENT ADDRESS

If you wish for the Common Stock underlying your subscription right or
certificate representing unexercised subscription rights to be delivered to an address
different from that shown on the face of this Subscription Rights Certificate, please enter
the alternate address below, sign under Form 3 and have your signature guaranteed under Form
4.

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

FORM 3-SIGNATURE

TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this Rights Offering and I
hereby irrevocably subscribe for the number of shares indicated above on the terms and
conditions specified in the Prospectus.

	 	 	 	 	 
	Signature(s):
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Signature(s):
	 	 	 	 
	 

	 	 

	 	 

IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of
this Subscription Rights Certificate in every particular, without alteration or enlargement,
or any other change whatsoever.

FORM 4-SIGNATURE GUARANTEE

This form must be completed if you have completed any portion of Form 2.

	 	 	 	 	 
	Signature Guaranteed:
	 	 	 	 
	 

	 	 

(Name of Bank or Firm)
	 	 

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

(Signature of Officer)
	 	 

IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution
(bank, stock broker, savings & loan association or credit union) with membership in an
approved signature guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15.

FOR INSTRUCTIONS ON THE USE OF KONA GRILL, INC. SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT
MORROW & CO., LLC, THE INFORMATION AGENT, AT (203) 658-9400 (COLLECT) OR (800) 607-0088
(TOLL-FREE).

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