Document:

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EXHIBIT 10.1

Management Continuity Agreement

Scott S. McQueen

Dated: July 9, 2007

MANAGEMENT CONTINUITY AGREEMENT

     This Management Continuity Agreement (“Agreement”) is entered into this 9th day of July, 2007
between Monarch Community Bancorp, Inc., a Maryland corporation (the “Company”), and Scott S.
McQueen (“Executive”).

WITNESSETH:

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

     WHEREAS, the Company desires to provide certain security to Executive in connection with a
change in control of the Company or the Bank;

     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:

Section 1. Definition of Change in Control; Change in Control Period

     1.1 Change in Control. For purpose of this Agreement, a “Change in Control” of the Company
shall be deemed to have occurred upon:

     (A) any third person, including a “group” as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, shall become the beneficial owner of shares of the Company
with respect to which 25% or more of the total number of votes for the election of the Board
maybe cast;

     (B) there occurs a change in control of the Bank within the meaning of the Home Owners
Loan Act of 1933 or 12 C.F.R. Part 574;

     (C) as a result of, or in connection with, any merger or other business combination,
sale of assets or contested election, wherein the persons who were directors of the Company
before such transaction or event cease to constitute a majority of the Board of Directors of
the Company or any successor to the Company; or

     (D) the Company transfers substantially all of its assets to another corporation or
entity which is not an affiliate of the Company.

Notwithstanding the foregoing, a Change of Control will not be deemed to have occurred:

     (A) solely because more than 25% of the combined voting power of the then outstanding
voting securities of the Company are acquired by (1) a trustee or other fiduciary holding
securities under one or more employee benefit plans maintained for employees of the Bank or
the Company, or (2) in the event of a merger or similar transaction involving the Company or
the Bank occurs and immediately following such transaction, persons who were shareholders of
the Company immediately prior to such transaction remain shareholders of the Company or other
party to the transaction in the same proportion as their previous ownership of stock; or

     (B) if Executive agrees in writing that the transaction or event in question does not
constitute a Change of Control for the purposes of this Agreement.

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     1.2 Change in Control Period. The Change-in-Control Period shall mean the period commencing
on the date of a Change in Control and ending on the twelve (12) month anniversary of the date
thereof.

Section 2. Obligations of the Company upon Termination.

     2.1 Other than for Cause, Death, Disability or Retirement. If, during the Change-in-Control
Period, Executive’s employment is terminated by the Company or the Bank other than for Cause (as
hereinafter defined), Death, Disability (as hereinafter defined), or Retirement (as hereinafter
defined) or if Executive terminates (his/her) employment for Good Reason (as hereinafter defined),
Executive shall receive:

     (A) (his/her) annual base salary for a period of twelve (12) months following the date
of termination in an amount not less than (his/her) base salary in effect immediately prior
to the Change in Control; plus

     (B) Executive and Executive’s family shall continue to be provided, at the expense of
the Company, continuing health care coverage under health care programs in effect immediately
prior to the Change of Control (or health care programs substantially similar thereto) for a
period of twelve (12) months after the date of termination, provided that, to the extent
Executive paid a portion of the premium for such benefit while employed, Executive shall
continue to pay such portion during the period of continuation hereunder and provided
further, that if such benefit is subject to the health care continuation rules of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) then any period of
continuation hereunder shall be credited against the continuation rights under COBRA and
Executive will be required to complete all COBRA election and other forms.

     2.2 Cause; Death; Disability; Retirement. If Executive’s employment is terminated by reason
of Death, Disability or Retirement during the Change-in-Control Period, this Agreement shall
terminate without further obligation to Executive or (his/her) legal representatives other than the
obligation to pay to Executive (his/her) annual base salary through the date of termination and to
provide Executive any other benefits which have accrued prior to the date of termination.

     2.3 Cause. If Executive’s employment shall be terminated for Cause during the
Change-in-Control Period, this Agreement shall terminate without further obligations to Executive.

Section 3. Definitions.

     3.1 Cause. For purposes of this Agreement, Cause shall mean termination due to Executive’s
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties or to follow one or more specific written
directives of the Board, reasonable in nature and scope, willful violation of any law, rule or
regulation (other than traffic violations or similar offenses) or final cease-and-desist order, or
material breach of any provision of this Agreement (which is not cured within thirty (30) days
after its occurrence and notice to Executive). Any determination of “Cause” as defined by this
Section 4.1 shall be determined by a majority vote of the Board of Directors of the Company or the
Bank.

     3.2 Disability. “Disability” shall have the meaning as such term has under the Company’s
Long-Term Disability Plan.

     3.3. Good Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of
any of the following events which have not been consented to in advance by Executive in writing:

     (A) if Executive would be required to move (his/her) personal residence or perform
(his/her) principal executive functions more than twenty-five (25) miles from Executive’s
primary office as of the date immediately prior to the Change of Control;

     (B) if the Company should fail to maintain Executive’s base salary or fail to maintain
employee benefit plans or arrangements generally comparable to those in place as of the date
immediately prior to the Change in Control, except to the extent that such reduction in
employee benefit plans is part of an overall adjustment in benefits for all employees of the
Company or the Bank; or

     (C) if Executive would be assigned substantial duties and responsibilities other than
those normally associated with the position referenced in the preambles to this Agreement.

     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.

     3.4 Retirement. For purpose of this Agreement, termination of Executive’s employment based on
“Retirement” shall mean voluntary termination in accordance with the Company’s retirement policy,
including early retirement, generally applicable to the Company’s salaried employees or in
accordance with any retirement arrangement established with Executive’s consent.

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Section 4. Excise and Other Tax Ramifications.

     4.1 Reduction in Excess Parachute Payments Tax Ramifications. In the event it shall be
determined that any payment made hereunder or pursuant to any other plan following a Change in
Control (whether paid or payable pursuant to the terms of this Agreement) would be subject to the
excise tax imposed in Section 4999 of the Internal Revenue Code of 1986 (the “Code”), then payments
pursuant to this Agreement or payments under any other agreement or plan that are treated as being
contingent upon a change in control under Section 280G of the Code shall be reduced to the maximum
amount that may be paid to Executive or for (his/her) benefit without any such payment constituting
an “parachute payment,” as defined by Section 280G of the Code. The determination of the maximum
amount payable to Executive or for (his/her) benefit shall be made by an accounting firm mutually
acceptable to Executive and the Company, and unless Executive directs otherwise, payments that are
considered to be partially contingent upon a change in control shall be the last payments to be
reduced.

     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 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.

Section 5. Administration of the Agreement.

     5.1 Notice of Termination. Any termination by the Company or by Executive shall be
communicated by a written notice to the other party hereto and shall mean a notice which shall
indicate the specific termination provision in this Agreement relied upon by the party, shall set
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of Executive’s employment under the provision indicated and the date of termination.

     5.2 Date of Termination. The date of termination shall mean:

     (A) if Executive’s employment is terminated by the Executive for Good Reason, the date
of the receipt of the notice contemplated by Section 5.1 hereof;

     (B) if Executive’s employment is terminated by the Company or the Bank other than for
Death, Disability or Retirement, the date of termination shall be the date on which the
Company or the Bank notifies Executive of the termination; and

     (C) if Executive’s employment is terminated by reason of Death, Disability or
Retirement, the date of termination shall be the date of Executive’s Death, Disability or
Retirement, as the case may be.

Section 6. Arbitration.

     (A) In the event of dispute under this Agreement, the parties agree pursuant to MCLA
600.5001; MSA 27A.5001, et seq., to binding arbitration in accordance with
the rules of the American Arbitration Association (“AAA”) in effect at the time a demand for
arbitration of the dispute is made, with the place of arbitration being Coldwater, Michigan.
The prevailing party in any such arbitration shall be entitled to recover from the other
party all expenses for attorneys, fees and costs incurred by the prevailing party in
conjunction with the arbitration proceedings. The decision and award of the arbitrator made
under the AAA rules shall be exclusive, final and binding on all parties, their heirs,
representatives, affiliates, successors and assigns. It is further agreed that any
arbitration award may be certified to the Branch County Circuit Court which shall render a
judgment upon the award made pursuant to said arbitration;

     (B) Limited civil discovery shall be permitted for the production of documents and the
taking of depositions, provided, however, that no party is permitted to take the deposition
of more than three witnesses except by agreement of the other party or upon order of the
arbitrator pursuant to the motion of a party. Subject to the foregoing limitations,
discovery shall be conducted in accordance with the Michigan Court Rules with any enforcement
issues resolved by the arbitrator;

     (C) The arbitration and all proceedings, discovery and any award of the arbitrator, are
confidential. Neither the parties nor the arbitrator shall disclose any information gained
during the course of the arbitration or any person or entity who is not a party to the
arbitration unless permitted by law. Attendance at the arbitration shall be limited to the
parties, counsel and those called as witnesses; and

     (D) Executive and the Company acknowledge that each has had the opportunity to consult
with counsel of choice before signing this agreement, and Executive and the Company each
hereby knowingly and voluntarily, without

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coercion, WAIVES ALL RIGHTS TO TRIAL BY JURY or all
disputes between them and instead agrees to binding arbitration.

Section 7. Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon any corporate or other successor of the Company which shall acquire, directly or indirectly,
by merger, consolidation, purchase or otherwise, all or substantially all of the assets of the
Company. Since the Executive’s services are the unique and personal skills of Executive, Executive
shall be precluded from assigning or delegating his rights or duties hereunder without first
obtaining the written consent of the Company.

Section 8. Amendments. No amendments or additions to this Agreement shall be binding upon the
parties hereto unless made in writing and signed by both parties, except as herein otherwise
specifically provided.

Section 9. Applicable Law. This Agreement shall be governed by all respects whether as to
validity, construction, capacity, performance or otherwise, by the laws of the State of Michigan,
except to the extent that Federal law shall be deemed to apply.

Section 10. Severability. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof.

Section 11. Notice. For purposes of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
provided that all notices to the Company be addressed to:

Corporate Secretary

Monarch Community Bancorp, Inc.

375 North Willowbrook Road

Coldwater, MI 49036

and if to Executive:

Scott S. McQueen

225 Larkspur Ave.

Portage, MI 49002

Section 12. No Mitigation. Executive shall not be required to mitigate the amount of any payment
provided in this Agreement by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Agreement be reduced by any compensation earned by
Executive or benefits (including retirement benefits) provided to Executive as the result of
employment by another employer after the Change in Control.

Section 13. Termination of Agreement. The Agreement shall continue until, and terminate, one (1)
year from the date hereof; provided, however, that the Agreement shall be renewed automatically for
subsequent one (1) year periods unless the Board of Directors of the Company, by resolution duly
adopted at least three (3) months prior to the end of the first one (1) year period or of any
subsequent one (1) year period, indicates that the Agreement shall not be renewed. Further, if a
Change in Control occurs during the term of the Agreement, the Agreement shall continue until the
Company shall have fully performed all of its obligations hereunder.

	 	 	 	 	 	 	 
	MONARCH COMMUNITY BANCORP, INC.	 	 	 	EXECUTIVE
	 
	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Donald L. Denney
	 	
	 	Scott.  S. McQueen
	Its:

	 	President and Chief Executive Officer
	 	 	 	Vice President and Chief Operations Officer

21<PAGE>

                                                                   Exhibit 10.11

                 FULL AND FINAL RELEASE AND SEPARATION AGREEMENT

     RONALD R. REED ("REED") and COMMUNITY CENTRAL BANK, a Michigan banking
corporation ("BANK"), enter into the following FULL AND FINAL RELEASE AND
SEPARATION AGREEMENT ("AGREEMENT") for an orderly separation of REED'S
employment with BANK and for the complete resolution of any claims or disputes
arising out of REED'S employment with or separation from BANK. REED and BANK
agree as follows:

     1. REED'S last day of employment with BANK will be JULY 17, 2007, and REED
agrees that he will cease to accrue benefits under BANK'S Retirement Plan and
will cease to be entitled to have any contribution made on his behalf to BANK'S
401(k) Plan as of that date or to receive any other benefit unless specifically
set out in this AGREEMENT. REED will submit a letter of resignation effective
JULY 17, 2007, which BANK will accept.

     2. BANK will pay REED all salary earned and all unused vacation benefits,
if any, to which REED is entitled, minus applicable withholding taxes, through
JULY 17, 2007. REED agrees that he is not entitled to any other compensation or
benefits of any kind from BANK except for any benefits to which he may be
entitled under the BANK Retirement Plan or the BANK 401(k) Plan that accrued
prior to JULY 17, 2007.

     3. BANK will pay REED One Hundred Forty-Five Thousand Dollars,
($145,000.00) (minus applicable withholding taxes), subject to the provisions of
Paragraph 7, below. Payment will be made within ten (10) business days following
the later of the complete execution of this AGREEMENT or the expiration of the
revocation period set out in Paragraph 7, below, so long as this AGREEMENT is
signed by REED and not timely revoked by him. REED agrees that he has no right
to such payment except pursuant to this Release.

     4. REED is entitled to maintain his group health plan coverage for up to
eighteen (18) months pursuant to COBRA. Subject to the provisions of Paragraph
7, below, the BANK will pay the premiums, necessary to continue REED'S COBRA
coverage for that eighteen (18) month period commencing with the first payment
due following the date on which this AGREEMENT becomes effective and ending with
the eighteenth such payment, or when REED finds other employment which provides
comparable coverage, which ever occurs first. REED'S eligibility for benefits
and the extent of REED'S coverage will continue to be governed by the terms of
the group health plan.

     5. For and in consideration of the payments and agreements set forth in
paragraphs 3 and 4, above, REED does hereby release, acquit and forever
discharge BANK, its owners, stockholders, agents, employees, shareholders,
directors, officers, fiduciaries, administrators, representatives, subsidiaries,
attorneys, divisions, affiliated entities, partnerships, joint ventures,
successors or assigns (hereinafter collectively referred to as "BANK ET AL")
from any and all issues, charges, claims, demands, actions, causes of action and
claims for damages whatsoever including all claims for compensatory and
liquidated damages, whether known or unknown, suspected or unsuspected, and
whether founded in fact or in law, and any and all claims for injuries
whatsoever, as well as all claims for costs and attorney fees of every kind,
nature or description which REED has, may have, may have had or hereafter may
have upon or by reason of any matter, cause or thing whatsoever arising from
REED'S employment with

<PAGE>

and/or circumstances leading to his separation of employment from BANK, which
has, had or may have occurred up to and including the date of this AGREEMENT,
including but not limited to any and all civil rights claims and/or any claims
arising under the Age Discrimination in Employment Act of 1967, the
Elliott-Larsen Civil Rights Act, the Michigan Persons with Disabilities Civil
Rights Act, the Americans with Disabilities Act, the Family and Medical Leave
Act, the Older Workers Benefit Protection Act, the Employee Retirement Income
Security Act, the Fair Labor Standards Act, the Whistleblowers' Protection Act
and Title VII of the Civil Rights Act of 1964, as amended.

     6. REED agrees that if he files a lawsuit or claim of any type in any forum
against BANK that has been waived in connection with this AGREEMENT, except for
an action pursuant to the Age Discrimination in Employment Act, he will return
to BANK all of the money received, including the value of all of the premiums
paid and benefits received from BANK, as a result of this AGREEMENT before
proceeding in any way with the lawsuit or claim. REED further agrees that he
will pay all the costs, expenses and attorney fees incurred by BANK in defending
against such a lawsuit or claim.

     7. THE PAYMENT AND THE BENEFIT COVERAGE SET FORTH IN PARAGRAPHS 3 AND 4
ABOVE WILL NOT COMMENCE UNTIL REED EXECUTES THIS AGREEMENT AND THE REVOCATION
PERIOD SET OUT IN PARAGRAPH 15, BELOW, HAS EXPIRED WITHOUT THIS AGREEMENT HAVING
BEEN REVOKED. THE BANK WILL HAVE NO FURTHER OBLIGATIONS TO REED UNDER THOSE TWO
PARAGRAPHS IF REED FAILS TO EXECUTE THIS AGREEMENT OR EXECUTES BUT TIMELY
REVOKES THIS AGREEMENT.

     8. REED understands and agrees that he has an obligation to inform BANK in
the event that he obtains other employment which provides group health care
coverage comparable to that which he is receiving pursuant to this AGREEMENT and
that upon obtaining such coverage, the benefit coverage set forth in paragraph 4
above will be discontinued and BANK will have no further obligations to REED
under that paragraph.

     9. REED accepts the terms of this AGREEMENT, agrees that the AGREEMENT
provides him with payments and benefits to which he is not otherwise entitled,
and agrees that the AGREEMENT is not an admission of any liability to REED by
BANK.

     10. REED understands and agrees that the terms of this AGREEMENT, including
the payments made to REED, shall be confidential and shall not be divulged to
any third party other than his spouse, attorney, financial advisor or as
otherwise required by law, without the prior written consent of BANK.

     11. REED understands and agrees that he has had access to confidential,
proprietary business information of BANK as a result of employment, and REED
hereby agrees not to use such information personally or for the benefit of
others. REED also agrees not to disclose to any third party any confidential
and/or proprietary business information of BANK at any time in the future so
long as such information remains confidential.

     12. REED understands and agrees that he will return any and all property in
his possession belonging to BANK, including but not limited to any computer
hardware, computer software, personnel files, financial records, documents,
agreements and keys.

                                       2

<PAGE>

     13. REED agrees that, while he may be employed by another bank or banking
corporation, during the nineteen (19) month period from July 17, 2007 until
February 17, 2009, unless expressly authorized by BANK, REED will not, directly
or indirectly, either on his own behalf or on behalf of any other person or
entity, solicit to provide banking services to any BANK CUSTOMER or solicit any
BANK employee to leave BANK or to seek employment elsewhere. For the purposes of
this provision, "CUSTOMER" means any person or entity that is or has been a
customer of BANK'S within one year prior to the date of this AGREEMENT or who
becomes a customer of BANK'S between now and February 17, 2009.

     REED further acknowledges that any failure to comply with the terms of this
provision shall irreparably harm BANK and that BANK shall not have an adequate
remedy at law in the event of such non-compliance. REED acknowledges and agrees
that BANK shall be entitled to obtain a court order in any court of competent
jurisdiction preventing REED from committing, threatening, or continuing any
acts of material non-compliance with this provision, in addition to any or all
other remedies available in law or equity, REED agrees that BANK shall be
entitled to recover from REED all attorney fees, costs and expenses incurred by
or on behalf of BANK in enforcing this provision or any of BANK'S rights
hereunder.

     REED further agrees that if it is judicially determined that he has
violated any of his obligations under this Paragraph 13, then the period
applicable to each obligation that he has been determined to have violated will
automatically be extended by a period of time equal in length to the period
during which such violation(s) occurred.

     14. REED acknowledges that he was advised and had full opportunity to
consult with an attorney of his own choosing prior to executing this AGREEMENT .

     15. REED further acknowledges that he was given a period of twenty-one (21)
days within which to consider this AGREEMENT. REED also understand that, during
the seven-day period following his signature on this AGREEMENT, he may revoke
this AGREEMENT and this AGREEMENT will not become effective or enforceable until
the seven-day revocation period has expired without his exercise of his right to
revoke.

     16. This AGREEMENT shall be construed under the laws of the State of
Michigan.

     17. It is further understood and acknowledged that the terms of this
AGREEMENT are contractual and not a mere recital and that there are no
agreements, understandings or representations made by BANK, its agents or
representatives, except as expressly stated.

     18. Whenever possible, each provision of this AGREEMENT will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this AGREEMENT is held to be prohibited by or invalid under
applicable law, such provisions will be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this AGREEMENT.

     19. REED acknowledges that before signing this AGREEMENT consisting of four
(4) pages in total, he has read it, that he fully understands its terms, content
and effect, that he has

                                       3

<PAGE>

had the opportunity to seek the advice of an attorney of his own choosing, that
he has had sufficient time to consider whether to enter into this AGREEMENT, and
that he has relied fully and completely on his own judgment in executing this
AGREEMENT.

     IN WITNESS WHEREOF, RONALD R. REED has executed this FULL AND FINAL RELEASE
AND SEPARATION AGREEMNT and has acknowledged that he executed it as his own free
act and deed.

                                        DATED:
-------------------------------------          ---------------------------------
RONALD R. REED

ACKNOWLEDGMENT - The preceding document was acknowledged before me in
_____________________ County, Michigan on this ____ day of _______________, 2007
by Ronald R. Reed.

                                        ----------------------------------------
                                                     , Notary Public

                                                                County, Michigan
                                        -----------------------

                                        My commission expires:
                                                               -----------------

COMMUNITY CENTRAL BANK

BY:
    ---------------------------------
ITS:
     --------------------------------
DATED:
       ------------------------------

                                       4

<PAGE>

                              Automobile Agreement

     Community Central Bank ("Bank") agrees to pay Ronald R. Reed ("Reed")
fifteen thousand dollars ($15,000.00) and to transfer to him the 2007 Cadillac
that has been provided to him by the Bank. Reed elects to keep and further
agrees to assume the lease on said vehicle. Payment will be made within ten (10)
business days of completion of the paperwork necessary to transfer the lease
into Reed's name.

Community Central Bank

By:
    ---------------------------------
Its:
     --------------------------------
Dated:
       ------------------------------

-------------------------------------
Ronald R. Reed

Dated:
       ------------------------------

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