Amendment #1 To The Monarch Community Bancorp, Inc. Employment Agreement

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:

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.

     (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.

     (b) Termination of Employment by the Board of Directors Without Cause . In the event the Board of Directors terminates Executive’s employment without “Caus