<SEC-DOCUMENT>0000950123-11-054932.txt : 20110527
<SEC-HEADER>0000950123-11-054932.hdr.sgml : 20110527
<ACCEPTANCE-DATETIME>20110527151131
ACCESSION NUMBER:		0000950123-11-054932
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20110525
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110527
DATE AS OF CHANGE:		20110527

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CENTRAL FEDERAL CORP
		CENTRAL INDEX KEY:			0001070680
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				341877137
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25045
		FILM NUMBER:		11877986

	BUSINESS ADDRESS:	
		STREET 1:		C/O CENTRAL FEDERAL BANK
		STREET 2:		601 MAIN ST
		CITY:			WELLSVILLE
		STATE:			OH
		ZIP:			43968
		BUSINESS PHONE:		3305321517

	MAIL ADDRESS:	
		STREET 1:		C/O CENTRAL FEDERAL BANK
		STREET 2:		601 MAIN ST
		CITY:			WELLSVILLE
		STATE:			OH
		ZIP:			43968

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GRAND CENTRAL FINANCIAL CORP
		DATE OF NAME CHANGE:	19980918
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c18079e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="margin-left: 0.25in; width: 7.5in;font-family: 'Times New Roman',Times,serif">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): May 25, 2011</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CENTRAL FEDERAL CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
<TD nowrap align="center" valign="top"><B>Delaware
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>0-25045
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>34-1877137</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Commission File Number)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="48%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
<TD align="center" valign="top"><B>2923 Smith Road, <BR>
Fairlawn, Ohio
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>&nbsp;<BR>44333</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(Address of principal executive offices)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: <B>(330) 666-7979</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable</B></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="border-top: 1px solid #000000">(Former name or former address, if changed since last report.)</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio --> </DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On May&nbsp;25, 2011, Central Federal Corporation (the Holding Company) and CFBank, a wholly owned
subsidiary of the Holding Company, each consented to the issuance of an Order to Cease and Desist
by the Office of Thrift Supervision (OTS), the primary regulator of the Holding Company and CFBank.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Holding Company&#146;s Order to Cease and Desist and CFBank&#146;s Order to Cease and Desist
(collectively, the Orders) are formal enforcement actions initiated by the OTS based on their
regular periodic regulatory examinations of the Holding Company and CFBank. The requirements of
the Orders will remain in effect until terminated, modified or suspended by the OTS.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Holding Company&#146;s Order requires it, among other things, to: (i)&nbsp;submit a Capital Plan to OTS
that establishes a minimum tangible capital ratio commensurate with the Holding Company&#146;s
consolidated risk profile, reduces the risk from current debt levels and addresses the Holding
Company&#146;s cash flow needs; (ii)&nbsp;not pay cash dividends, redeem stock or make any other capital
distributions without prior OTS approval; (iii)&nbsp;not pay interest or principal on any debt or
increase any Holding Company debt or guarantee the debt of any entity without prior OTS approval;
(iv)&nbsp;obtain prior OTS approval for changes in directors and senior executive officers; and (v)&nbsp;not
enter into any new contractual arrangement related to compensation or benefits with any director or
senior executive officer without prior notification to OTS.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">CFBank&#146;s Order requires it, among other things, to: (i)&nbsp;have by September&nbsp;30, 2011, and maintain
thereafter 8% core capital and 12% total risk-based capital, after establishing an adequate
allowance for loan and lease losses; (ii)&nbsp;submit a Capital and Business Plan to OTS that describes
strategies to meet these required capital ratios and contains operating strategies to achieve
realistic core earnings; (iii)&nbsp;submit a contingency plan providing for a merger or voluntary
dissolution of CFBank if capital does not reach the required levels; (iv)&nbsp;not originate any
nonresidential real estate loans or commercial loans without OTS approval; (v)&nbsp;adopt a revised
credit administration policy, problem asset reduction plan, management succession plan and
liquidity management policy; (vi)&nbsp;limit asset growth to net interest credited on deposit
liabilities absent prior OTS approval for additional growth; (vii) ) not pay cash dividends or make
any other capital distributions without prior OTS approval; (viii)&nbsp;obtain prior OTS approval for
changes in directors and senior executive officers; and (ix)&nbsp;not enter into any new contractual
arrangement related to compensation or benefits with any director or senior executive officer
without prior notification to OTS; (x)&nbsp;not enter into any significant arrangement or contract with
a third party service provider without prior OTS approval; and (xi)&nbsp;comply with the FDIC limits on
brokered deposits.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Management and the Boards of Directors of the Holding Company and CFBank are committed to taking
all necessary actions to promptly address the requirements of the Orders. The foregoing
descriptions are summaries of the Orders and are qualified in their entirety by reference to the
complete Orders, copies of which are filed herewith as Exhibit&nbsp;10.1 and 10.2, and are incorporated
herein by reference.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Certain provisions of the Orders could have a material negative impact on the financial condition
and operating results of CFBank and the Holding Company, as described in Item&nbsp;8.01 of this Form 8-K
Current Report.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;8.01 Other Events</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Certain provisions of the Orders that could have a material negative impact on the financial
condition and operating results of CFBank and the Holding Company are as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Under OTS regulations, a savings association is considered to be well-capitalized if it
has 5% core capital, 6% tier 1 risk-based capital and 10% total risk-based capital, unless
the OTS imposes a higher individualized capital requirement. Because the CFBank Order
requires CFBank to have 8% core capital and 12% total risk-based capital, CFBank is no
longer considered well-capitalized under OTS&#146;s prompt corrective action regulations and is
deemed adequately capitalized so long as it maintains 4% core capital, 4% tier 1 risk-based
capital and 8% total risk-based capital. At March&nbsp;31, 2011, CFBank had 5.7% core capital,
9.3% tier 1 risk-based capital and 10.6% total risk-based capital. If CFBank capital falls
below the levels to be considered adequately capitalized, it will be subject to
substantially more regulatory scrutiny.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Because CFBank is no longer well-capitalized, it is prohibited from accepting or
renewing brokered deposits without FDIC approval (which is rarely given) and is subject to
market rates published by the FDIC when offering deposits to the general public. The
prohibition on brokered deposits significantly limits CFBank&#146;s ability to participate in
the Certificate of Deposit Account Registry Service<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> (CDARS)&nbsp;program and significantly
impacts our liquidity management. In 2010, the OTS had directed CFBank to limit brokered
deposits to $74.6&nbsp;million. At March&nbsp;31, 2011, CFBank had $70.4&nbsp;million in brokered deposits
with maturity dates from April&nbsp;2011 through August&nbsp;2016. As a result of the losses suffered
in 2009, 2010 and the first quarter of 2011, management had been concerned that CFBank
would be restricted from accepting or renewing brokered deposits, in addition to other
regulatory restrictions, and moved aggressively to build on-balance-sheet liquidity to deal
with scheduled brokered deposit maturities, potential retail deposit outflow and potential
decreased borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank.
At March&nbsp;31, 2010, cash and cash equivalents totaled $69.6&nbsp;million and was sufficient to
cover brokered deposit maturities through July&nbsp;2015. In addition, we have the ability to
seek wholesale deposits that are not considered brokered deposits. Liquidity could be
significantly impacted by the prohibition on brokered deposits and the limitations on rates
we can offer on deposits to the general public.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The growth and lending limitations in the CFBank Order limit our ability to make
commercial business and property loans that carry a higher yield than residential and
consumer loans. This will negatively impact our ability to improve core earnings.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Holding Company&#146;s primary source of funds is cash dividends from CFBank, which are
prohibited under the CFBank Order without OTS approval. It is not likely that any
dividends will be approved by the OTS until CFBank meets its new individual minimum capital
requirements under the Order.</DIV></TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">(d)&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Order to Cease and Desist issued to the Holding Company by OTS effective May&nbsp;25, 2011, and
the related Stipulation and Consent executed by the Board of Directors of Central Federal
Corporation</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Order to Cease and Desist issued to CFBank by OTS effective May&nbsp;25, 2011, and the related
Stipulation and Consent executed by the Board of Directors of CFBank</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">SIGNATURES
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Central Federal Corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  May 27, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Therese Ann Liutkus
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Therese Ann Liutkus, CPA&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">President, Treasurer and <BR>Chief Financial
Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c18079exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Exhibit&nbsp;10.1
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Order to Cease and Desist issued to the Holding Company by OTS effective May&nbsp;25, 2011, and the
related Stipulation and Consent executed by the Board of Directors of Central Federal Corporation
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>UNITED STATES OF AMERICA<BR>
Before the<BR>
OFFICE OF THRIFT SUPERVISION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the Matter of
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Order No.: CN 11-15</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CENTRAL FEDERAL CORPORATION</B>
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effective Date: May&nbsp;25, 2011</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fairlawn, Ohio
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OTS Docket No.&nbsp;H3317
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ORDER TO CEASE AND DESIST</B></U>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>Central Federal Corporation, Fairlawn, Ohio, OTS Docket
No.&nbsp;H3317 (Holding Company), by and through its Board of Directors (Board), has executed a
Stipulation and Consent to the Issuance of Order to Cease and Desist (Stipulation); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Holding Company, by executing the Stipulation, has consented and agreed to the
issuance of this Order to Cease and Desist (Order) by the Office of Thrift Supervision (OTS)
pursuant to 12 U.S.C. &#167; 1818(b); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>pursuant to delegated authority, the OTS Regional Director for the Central Region
(Regional Director) is authorized to issue Orders to Cease and Desist where a savings and loan
holding company has consented to the issuance of an order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 1 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>NOW, THEREFORE, IT IS ORDERED that:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Cease and Desist</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;The Holding Company and its directors, officers, employees, and agents shall cease and desist
from any action (alone or with another or others) for or toward causing, bringing about,
participating in, counseling or the aiding and abetting in the unsafe or unsound practices
resulting in the Holding Company operating with an inadequate level of capital protection for the
volume, type, and quality of assets held by the consolidated Holding Company and with inadequate
earnings to fund expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Capital Plan</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;By June&nbsp;30, 2011, the Holding Company shall submit to the Regional Director a written plan for
enhancing the consolidated capital of the Holding Company (Capital Plan). The Capital Plan shall
cover the period beginning with July&nbsp;1, 2011 through the fiscal year ending
December&nbsp;31, 2013. At a minimum, the Capital Plan shall include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;establishment by the Board of a minimum tangible capital ratio of tangible equity
capital to total tangible assets commensurate with the Holding Company&#146;s consolidated risk
profile;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;specific plans to reduce the risks to the Holding Company from its current debt
levels and debt servicing requirements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;quarterly cash flow projections for the Holding Company on a stand alone basis through
calendar year-end December&nbsp;31, 2013 that identify both the sources of funds and the expected
uses of funds;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;quarterly pro forma consolidated and unconsolidated Holding Company balance sheets and
income statements for the period covered by the Capital Plan demonstrating the Holding
Company&#146;s ability to attain and maintain the Board established minimum tangible equity
capital ratios during the period of the Capital Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;detailed scenarios to stress-test the minimum tangible equity capital targets based on
continuing operating results, economic conditions and risk profile of the Holding Company&#146;s
stand alone assets and liabilities; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;detailed descriptions of all relevant assumptions and projections and the supporting
documentation for all relevant assumptions and projections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 2 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;Upon receipt of written notice of non-objection from the Regional Director to the Capital Plan,
the Holding Company shall implement and adhere to the Capital Plan. A copy of the Capital Plan
shall be provided to the Regional Director within seven (7)&nbsp;days after Board approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;The Holding Company shall notify the Regional Director regarding any material negative event
affecting or that may affect the balance sheet, capital, or the cash flow of the Holding Company
within five (5)&nbsp;days after such event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;By December&nbsp;31, 2011, and each December&nbsp;31st thereafter, the Capital Plan shall be updated and
submitted to the Regional Director pursuant to Paragraph&nbsp;2 above and shall incorporate the Holding
Company&#146;s budget plan and cash flow projections for the next two (2)&nbsp;fiscal years taking into
account any revisions to the Holding Company&#146;s cash flow and operating policies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Capital Plan Variance Reports</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;Within forty-five (45)&nbsp;days after the end of each quarter, after implementation of the Capital
Plan, the Board shall review written quarterly variance reports on the Holding Company&#146;s compliance
with its Capital Plan (Variance Reports). The minutes of the Board meeting shall fully document
the Board&#146;s review and discussion. The Variance Reports shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;identify variances in the Holding Company&#146;s actual performance during the preceding
quarter as compared to the projections set forth in the Capital Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;contain an analysis and explanation of identified variances; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;discuss the specific measures taken or to be taken by the Holding Company to address
identified variances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 3 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;A copy of each Variance Report shall be provided to the Regional Director within seven (7)&nbsp;days
after Board approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Dividends and other Capital Distributions</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;Effective immediately, the Holding Company shall not declare, make, or pay any cash dividends or
other capital distributions or purchase, repurchase or redeem or commit to purchase, repurchase, or
redeem any Holding Company equity stock without the prior written non-objection of the Regional
Director. The Holding Company shall submit its written request for non-objection to the Regional
Director at least thirty (30)&nbsp;days prior to the anticipated date of the proposed dividend, capital
distribution, or stock transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Debt Restrictions. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;Effective immediately, the Holding Company shall not, directly or indirectly, incur, issue,
renew, rollover, or pay interest or principal on any debt<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> or commit to do so, increase
any current lines of credit, or guarantee the debt of any entity, without prior written notice to
and written non-objection from the Regional Director. The Holding Company&#146;s written request for
approval shall be submitted to the Regional Director at least thirty (30)&nbsp;days prior to incurring,
issuing, renewing, rolling over or paying any interest or principal on any debt, increasing any
current lines of credit, or guaranteeing the debt of any entity. The Holding Company&#146;s written
requests for Regional Director non-objection to engage in such debt transactions, at a minimum,
shall: (a)&nbsp;describe the purpose of the proposed debt; (b)&nbsp;set forth and analyze the terms of the
proposed debt and covenants; (c)&nbsp;analyze the Holding Company&#146;s current cash flow resources
available to satisfy such debt repayment; and (d)&nbsp;set forth the anticipated source(s) of repayment
of the proposed debt.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>For purposes of this Paragraph, the term &#147;debt&#148;
includes, but is not limited to, loans, bonds, cumulative preferred stock,
hybrid capital instruments such as subordinated debt or trust preferred
securities, and guarantees of debt. For purposes of this Paragraph, the term
&#147;debt&#148; does not include liabilities incurred in the ordinary course of business
to acquire goods and services and that are normally recorded as accounts
payable or accruals under generally accepted accounting principles.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 4 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Directorate and Management Changes</B></U>.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">10. Effective immediately, the Holding Company shall comply with the prior notification
requirements for changes in directors and Senior Executive Officers<SUP style="font-size: 85%; vertical-align: text-top">2</SUP> set forth in 12
C.F.R.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Part&nbsp;563, Subpart H.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Golden Parachute Payments</B></U>.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;Effective immediately, the Holding Company shall not make any golden parachute
payment<SUP style="font-size: 85%; vertical-align: text-top">3</SUP> unless, with respect to such payment, the Holding Company has complied with the
requirements of 12 C.F.R. Part&nbsp;359.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U> <B>Employment Contracts and Compensation Arrangements. </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;Effective immediately, the Holding Company shall not enter into any new contractual arrangement
or renew, extend or revise any existing contractual arrangement related to compensation or benefits
with any director or Senior Executive Officer of the Holding Company, unless it first provides the
Regional Director with not less than thirty (30)&nbsp;days prior written notice of the proposed
transaction. The notice to the Regional Director shall include a copy of the proposed employment
contract or compensation arrangement, or a detailed, written description of the compensation
arrangement to be offered to such Senior Executive Officer or director, including all benefits and
perquisites. The Holding Company shall ensure that any contract, agreement or arrangement
submitted to OTS fully complies with the requirements of 12 C.F.R. Part&nbsp;359, 12 C.F.R. &#167;&#167; 563.39
and 563.161(b), and 12 C.F.R. Part&nbsp;570-Appendix&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Board Oversight of Compliance with Order</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">13.&nbsp;Effective immediately, the Board shall monitor and coordinate the Holding Company&#146;s compliance
with the provisions of this Order and the completion of all corrective actions required in the
2011 ROE. The Board shall review and adopt all policies and procedures required by this Order
prior to submission to the OTS.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;Senior Executive Officer&#148; is defined at 12
C.F.R. &#167; 563.555.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;golden parachute payment&#148; is defined at 12
C.F.R. &#167; 359.1(f).</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 5 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;Within thirty (30)&nbsp;days after the end of each quarter, beginning with the quarter ending June
30, 2011, the Holding Company shall prepare a written compliance progress report for the Board
(Compliance Tracking Report). The Compliance Tracking Report shall, at a minimum:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;separately list each corrective action required by this Order and the 2011 ROE;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;identify the required or anticipated completion date for each corrective action; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;discuss the current status of each corrective action, including the action(s) taken or
to be taken to comply with each corrective action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">15.&nbsp;Within thirty (30)&nbsp;days at the end of each quarter, beginning with quarter ending June&nbsp;30,
2011, the Board shall review the Compliance Tracking Report and all reports required to prepared by
this Order. Following its review, the Board shall adopt a resolution: (a)&nbsp;certifying that each
director has reviewed the Compliance Tracking Report and all required reports; and (b)&nbsp;documenting
any corrective actions adopted by the Board. A copy of the Compliance Tracking Report and the
Board resolution shall be provided to the Regional Director within seven (7)&nbsp;days after the Board
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">16.&nbsp;Nothing contained herein shall diminish the responsibility of the entire Board to ensure the
Holding Company&#146;s compliance with the provisions of this Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Effective Date, Incorporation of Stipulation</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">17.&nbsp;This Order is effective on the Effective Date as shown on the first page. The Stipulation is
made a part hereof and is incorporated herein by this reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Duration</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">18.&nbsp;This Order shall remain in effect until terminated, modified, or suspended by written notice of
such action by the OTS, acting by and through its authorized representatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 6 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Time Calculations</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">19.&nbsp;Calculation of time limitations for compliance with the terms of this Order run from the
Effective Date and shall be based on calendar days, unless otherwise noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">20.&nbsp;The Regional Director or an OTS authorized representative may extend any of the deadlines set
forth in the provisions of this Order upon written request by the Association that includes reasons
in support for any such extension. Any OTS extension shall be made in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Submissions and Notices</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">21.&nbsp;All submissions, including any reports, to the OTS that are required by or contemplated by this
Order shall be submitted within the specified timeframes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">22.&nbsp;Except as otherwise provided herein, all submissions, requests, communications, consents, or
other documents relating to this Order shall be in writing and sent by first class U.S. mail (or by
reputable overnight carrier, electronic facsimile transmission, or hand delivery by messenger)
addressed as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>To the OTS</B><SUP style="font-size: 85%; vertical-align: text-top"><B>4</B></SUP><B>:</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Regional Director<br>
Office of Thrift Supervision<br>
One South Wacker Drive, Suite&nbsp;2000<br>
Chicago, Illinois 60606<br>
Facsimile: (312)&nbsp;917-5001
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>To the Holding Company:</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Chairman of the Board<br>
Central Federal Corporation<br>
2923 Smith Road<br>
Fairlawn, Ohio 44333<br>
Facsimile: (330)&nbsp;666-7959
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Following the Transfer Date, <I>see </I>Dodd-Frank Wall Street
Reform and Consumer Protection Act, Pub. Law No.&nbsp;111-203, &#167; 311, 124 Stat. 1520
&#151; 21 (2010), all submissions, requests, communications, consents or other
documents relating to this Order shall be directed to the Board of Governors of
the Federal Reserve System (Board of Governors), or to the individual,
division, or office designated by the Board of Governors.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 7 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>No Violations Authorized</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">23.&nbsp;Nothing in this Order or the Stipulation shall be construed as allowing the Holding Company,
its Board, officers, or employees to violate any law, rule, or regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IT IS SO ORDERED.</B>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>OFFICE OF THRIFT SUPERVISION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Daniel T. McKee&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Regional Director, Central Region&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Order to Cease and Desist<BR>
Page 8 of 8

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>UNITED STATES OF AMERICA<BR>
Before the<BR>
OFFICE OF THRIFT SUPERVISION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the Matter of
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Order No.: CN 11-15</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CENTRAL FEDERAL CORPORATION</B>
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effective Date: May&nbsp;25, 2011</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fairlawn, Ohio
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OTS Docket No.&nbsp;H3317
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>STIPULATION AND CONSENT TO ISSUANCE OF ORDER TO CEASE AND DESIST</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Office of Thrift Supervision (OTS), acting by and through its Regional Director
for the Central Region (Regional Director), and based upon information derived from the exercise of
its regulatory and supervisory responsibilities, has informed Central Federal Corporation,
Fairlawn, Ohio, OTS Docket No.&nbsp;H3317 (Holding Company) that the OTS is of the opinion that grounds
exist to initiate an administrative proceeding against the Holding Company pursuant to 12 U.S.C. &#167;
1818(b);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>the Regional Director, pursuant to delegated authority, is authorized to issue Orders
to Cease and Desist where a savings and loan holding company has consented to the issuance of an
order; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Holding Company desires to cooperate with the OTS to avoid the time and expense
of such administrative cease and desist proceeding by entering into this Stipulation and Consent to
the Issuance of Order to Cease and Desist (Stipulation) and, without admitting or denying that such
grounds exist, but only admitting the statements and conclusions in Paragraphs 1 &#151; 3 below
concerning Jurisdiction, hereby stipulates and agrees to the following terms:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 1 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Jurisdiction</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;The Holding Company is a &#147;savings and loan holding company&#148; within the meaning of 12 U.S.C. &#167;
1813(w)(3) and 12 U.S.C. &#167; 1467a. Accordingly, the Holding Company is a &#147;depository institution
holding company&#148; as that term is defined in 12 U.S.C. &#167; 1813(w)(1).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;Pursuant to 12 U.S.C. &#167; 1818(b)(9), the &#147;appropriate Federal banking agency&#148; may initiate a
cease and desist proceeding against a savings and loan holding company in the same manner and to
the same extent as a savings association for regulatory violations and unsafe or unsound acts or
practices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;Pursuant to 12 U.S.C. &#167; 1813(q), the Director of OTS is the &#147;appropriate Federal banking agency&#148;
with jurisdiction to maintain an administrative enforcement proceeding against a savings and loan
holding company. Therefore, the Holding Company is subject to the authority of the OTS to initiate
and maintain an administrative cease and desist proceeding against it pursuant to 12 U.S.C. &#167;
1818(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>OTS Findings of Fact</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;Based on its January&nbsp;18, 2011 examination of the Holding Company, the OTS finds that the Holding
Company has engaged in unsafe or unsound practices as described in the OTS Report of Examination
dated January&nbsp;18, 2011 by operating with an inadequate level of capital protection for the volume,
type, and quality of assets held by the consolidated Holding Company and with inadequate earnings
to fund expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Consent</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;The Holding Company consents to the issuance by the OTS of the accompanying Order to Cease and
Desist (Order). The Holding Company further agrees to comply with the terms of the Order upon the
Effective Date of the Order and stipulates that the Order complies with all requirements of law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 2 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Finality</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;The Order is issued by the OTS under 12 U.S.C. &#167; 1818(b). Upon the Effective Date, the Order
shall be a final order, effective, and fully enforceable by the OTS under the provisions of 12
U.S.C. &#167; 1818(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Waivers</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;The Holding Company waives the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;the right to be served with a written notice of the OTS&#146;s charges against it as provided
by 12 U.S.C. &#167; 1818(b) and 12 C.F.R. Part&nbsp;509;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;the right to an administrative hearing of the OTS&#146;s charges as provided by
12 U.S.C. &#167; 1818(b) and 12 C.F.R. Part&nbsp;509;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;the right to seek judicial review of the Order, including, without limitation, any such
right provided by 12 U.S.C. &#167; 1818(h), or otherwise to challenge the validity of the Order;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;any and all claims against the OTS, including its employees and agents, and any other
governmental entity for the award of fees, costs, or expenses related to this OTS
enforcement matter and/or the Order, whether arising under common law, federal statutes, or
otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>OTS Authority Not Affected. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;Nothing in this Stipulation or accompanying Order shall inhibit, estop, bar, or otherwise
prevent the OTS from taking any other action affecting the Holding Company if, at any time, the OTS
deems it appropriate to do so to fulfill the responsibilities placed upon the OTS by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Other Governmental Actions Not Affected</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;The Holding Company acknowledges and agrees that its consent to the issuance of the Order is
solely for the purpose of resolving the matters addressed herein, consistent with Paragraph&nbsp;8
above, and does not otherwise release, discharge, compromise, settle, dismiss, resolve, or in any
way affect any actions, charges against, or liability of the Holding Company that arise pursuant to
this action or otherwise, and that may be or have been brought by any governmental entity other
than the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 3 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Miscellaneous</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">10.&nbsp;The laws of the United States of America shall govern the construction and validity of this
Stipulation and of the Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;If any provision of this Stipulation and/or the Order is ruled to be invalid, illegal, or
unenforceable by the decision of any Court of competent jurisdiction, the validity, legality, and
enforceability of the remaining provisions hereof shall not in any way be affected or impaired
thereby, unless the Regional Director in his or her sole discretion determines otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;All references to the OTS in this Stipulation and the Order shall also mean any of the OTS&#146;s
predecessors, successors, and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">13.&nbsp;The section and paragraph headings in this Stipulation and the Order are for convenience only
and shall not affect the interpretation of this Stipulation or the Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;The terms of this Stipulation and of the Order represent the final agreement of the parties
with respect to the subject matters thereof, and constitute the sole agreement of the parties with
respect to such subject matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">15.&nbsp;The Stipulation and Order shall remain in effect until terminated, modified, or suspended in
writing by the OTS, acting through its Regional Director or other authorized representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Signature of Directors/Board Resolution. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">16.&nbsp;Each Director signing this Stipulation attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Holding Company to the issuance of the Order and the
execution of the Stipulation. This Stipulation may be executed in counterparts by the directors
after approval of the execution of the Stipulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 4 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>WHEREFORE, </B>the Holding Company, by its directors, executes this Stipulation.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Accepted by:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>CENTRAL FEDERAL CORPORATION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>OFFICE OF THRIFT SUPERVISION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD colspan="3" valign="top" align="left"><B>Fairlawn, Ohio</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jerry F. Whitmer, Chairman
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Daniel T. McKee
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Regional Director, Central Region</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Date: See Effective Date on page 1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jeffrey W. Aldrich, Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas P. Ash, Director
</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
William R. Downing, Director
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gerry W. Grace, Director
</TD>
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<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Central Federal Corporation<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 5 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>c18079exv10w2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 10.2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Exhibit&nbsp;10.2
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Order to Cease and Desist issued to CFBank by OTS effective May&nbsp;25, 2011, and the related
Stipulation and Consent executed by the Board of Directors of CFBank
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>UNITED STATES OF AMERICA<BR>
Before the<BR>
OFFICE OF THRIFT SUPERVISION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
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    <TD width="50%">&nbsp;</TD>
</TR>
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<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the Matter of
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Order No.: CN 11-14</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CFBANK</B>
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effective Date: May&nbsp;25, 2011</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fairlawn, Ohio
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OTS Docket No.&nbsp;01260
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>ORDER TO CEASE AND DESIST</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>CFBank, Fairlawn, Ohio, OTS Docket No.&nbsp;01260 (Association), by and through its Board
of Directors (Board), has executed a Stipulation and Consent to Issuance of an Order to Cease and
Desist (Stipulation); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Association, by executing the Stipulation, has consented and agreed to the
issuance of this Order to Cease and Desist (Order) by the Office of Thrift Supervision (OTS)
pursuant to 12 U.S.C. &#167; 1818(b); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>pursuant to delegated authority, the OTS Regional Director for the Central Region
(Regional Director) is authorized to issue Orders to Cease and Desist where a savings association
has consented to the issuance of an order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 1 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>NOW, THEREFORE, IT IS ORDERED that:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Cease and Desist</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;The Association and its directors, officers, and employees shall cease and desist from any
action (alone or with others) for or toward, causing, bringing about, participating in, counseling,
or aiding and abetting the unsafe or unsound practices and/or violations of law or regulation that
resulted in the Association operating with: (a)&nbsp;an excessive level of adversely classified loans;
and (b)&nbsp;inadequate earnings to augment capital as described in the comprehensive OTS Report of
Examination of the Association dated January&nbsp;3, 2011 (2011 ROE).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Capital</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;By September&nbsp;30, 2011, the Association shall have and maintain: a Tier 1 (Core) Capital Ratio
equal to or greater than eight percent (8%) after the funding of an adequate Allowance for Loan and
Lease Losses (ALLL)&nbsp;and a Total Risk-Based Capital Ratio equal to or greater than twelve percent
(12%).<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Capital and Business Plan</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;By June&nbsp;30, 2011, the Association shall submit to the Regional Director a written plan (Capital
and Business Plan) for the period beginning with July&nbsp;1, 2011 through December&nbsp;31, 2013 addressing
the requirements of this Order and including capital enhancement strategies necessary for the
Association to have and maintain capital at the levels prescribed in
Paragraph&nbsp;2. At a minimum, the Capital and Business Plan shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;identify the specific sources and methods by which additional capital will be raised to
achieve and maintain the Association&#146;s capital at the levels prescribed in Paragraph&nbsp;2;<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;detail the Association&#146;s capital preservation and enhancement strategies with specific
narrative goals;
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The requirement in Paragraph&nbsp;2 to have and maintain a
specific capital level means that the Association may not be deemed to be
&#147;well-capitalized&#148; for purposes of 12 U.S.C. &#167;1831o and 12 C.F.R. Part&nbsp;565,
pursuant to 12 C.F.R. &#167;565.4(b)(1)(iv).</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 2 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;contain operating strategies to achieve realistic core earnings;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;include quarterly financial projections (balance sheet and income statement), including
Tier 1 (Core) and Total Risk Based Capital Ratios, for the period covered by the Capital and
Business Plan; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;identify all relevant assumptions made in formulating the Capital and Business Plan and
include a requirement that documentation supporting such assumptions be retained by the
Association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;Upon receipt of written notice of non-objection from the Regional Director to the Capital and
Business Plan, the Association shall implement and adhere to the Capital and Business Plan. A copy
of the Capital and Business Plan shall be provided to the Regional Director within seven (7)&nbsp;days
after Board approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;Any
material modifications<SUP style="font-size: 85%; vertical-align: text-top">2</SUP> to the Capital and Business Plan must receive the prior
written non-objection of the Regional Director. The Association shall submit proposed material
modifications to the Regional Director at least forty-five (45)&nbsp;days prior to implementation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;By December&nbsp;31, 2011, and each December&nbsp;31st thereafter, the Capital and Business Plan shall be
updated and submitted to the Regional Director pursuant to Paragraph&nbsp;3 above and shall incorporate
the Association&#146;s budget plan and profit projections for the next two (2)&nbsp;fiscal years taking into
account any revisions to the Association&#146;s loan, investment and operating policies.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">2</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>A modification shall be considered material under this
Paragraph if the Association (a)&nbsp;plans to engage in any activity that is
inconsistent with the Capital and Business Plan; or (b)&nbsp;exceeds the level of
any activity contemplated in the Capital and Business Plan by more than ten
percent (10%).</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 3 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Capital and Business Plan Variance Reports</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;Within forty-five (45)&nbsp;days after the end of each quarter, after implementation of the Capital
and Business Plan, the Board shall review written quarterly variance reports on the Association&#146;s
compliance
with its Capital and Business Plan (Variance Reports). The Board&#146;s review of Variance Reports and
compliance with the Capital and Business Plan shall include a review of the internal and external
risks affecting the Association&#146;s ability to successfully implement the Capital and Business Plan.
The minutes of the Board meeting shall fully document the Board&#146;s review and discussion. The
Variance Reports shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;identify variances in the Association&#146;s actual performance during the preceding quarter
as compared to the projections set forth in the Capital and Business Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;contain an analysis and explanation of identified variances; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;discuss the specific measures taken or to be taken by the Association to address
identified variances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;A copy of each Variance Report shall be provided to the Regional Director within seven (7)&nbsp;days
after the Board meeting at which it was reviewed and discussed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Contingency Plan</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;Within fifteen (15)&nbsp;days after: (a)&nbsp;the Association fails to meet the capital requirements
prescribed in Paragraph&nbsp;2; (b)&nbsp;the Association fails to comply with the Capital and Business Plan
prescribed in Paragraph&nbsp;3; or (c)&nbsp;any written request from the Regional Director, the Association
shall submit a written Contingency Plan that is acceptable to the Regional Director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">10.&nbsp;The Contingency Plan shall detail the actions to be taken, with specific time frames, to
achieve one of the following results by the later of the date of receipt of all required regulatory
approvals or sixty (60)&nbsp;days after the implementation of the Contingency Plan: (a)&nbsp;merger with, or
acquisition by, another federally insured depository institution or holding company thereof; or (b)
voluntary dissolution by filing an appropriate application with the OTS in conformity with
applicable laws, regulations and
regulatory guidance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 4 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;Upon receipt of written notification from the Regional Director, the Association shall
implement and adhere to the Contingency Plan immediately. The Association shall provide the
Regional Director with written status reports detailing the Association&#146;s progress in implementing
the Contingency Plan by no later than the first (1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>) and fifteenth (15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) of
each month following implementation of the Contingency Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Lending Restrictions</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;Effective immediately, the Association shall not originate, participate in, or acquire any
nonresidential real estate loans or commercial loans (collectively referred to herein as
Nonhomogeneous Loans) without prior, written non-objection of the Regional Director until the
Association has received written notification from the Regional Director that the Association has
complied with Paragraphs 2, 4, 16-18, 21-22, and 28 of the Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">13.&nbsp;The Association may fund loans-in-process and legally binding loan commitments for
Non-homogeneous Loans outstanding as of the Effective Date of this Order and shall submit a list of
such obligations and commitments to the Regional Director within thirty (30)&nbsp;days of the Effective
Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;Effective immediately, the Association shall not release, directly or indirectly, any borrower
or guarantor from personal or corporate liability on any Nonhomogeneous Loan without the prior
written non-objection of the Regional Director, except when the outstanding balance of the loan and
any other outstanding loans to the borrower and/or guarantor have been paid in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">15.&nbsp;For purposes of complying with this lending restriction, the Association may: (a)&nbsp;enter into
extensions, refinancings, assumptions or modifications of existing loans or lines that do not
involve the granting of new funds provided that for any extension, refinancing, assumption, or
modification of an existing loan or line, the Association shall maintain documentation sufficient
to demonstrate that such a
transaction was in the best interest of the Association; and (b)&nbsp;make disbursements pursuant to
legally binding commitments made prior to the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 5 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Credit Administration</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">16.&nbsp;Within thirty (30)&nbsp;days, the Association shall revise its credit administration policies,
procedures, practices, and controls (Credit Administration Policy) to address all corrective
actions in the 2011 ROE relating to credit administration. The Credit Administration Policy shall
comply with all applicable laws, regulations and regulatory guidance and:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;include restrictions on additional advances to borrowers who have an existing loan with
the Association that is adversely classified;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;include guidelines requiring that collateral properties be re-appraised prior to loans
being modified, extended, or refinanced;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;include guidelines requiring that current financials statements from the borrower be
provided to the Association prior to loans being modified, extended or refinanced and that
such financial statements be reviewed to determine whether the borrower has the ability to
repay at the modified loan terms; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;include an effective system for the retention, review, renewal, and updating by the
Association of all required records, filings, and other credit related documents, including
real property taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 6 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Problem Assets</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">17.&nbsp;Within ninety (90)&nbsp;days, the Association shall submit a detailed, written plan with specific
strategies, targets and timeframes to
reduce<SUP style="font-size: 85%; vertical-align: text-top">3</SUP> the Association&#146;s level of problem
assets<SUP style="font-size: 85%; vertical-align: text-top">4</SUP> that is acceptable to the Regional Director (Problem Asset Reduction Plan). The
Problem Asset Reduction Plan, at a minimum, shall include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;quarterly targets for the level of problem assets as a percentage of Tier 1 (Core)
capital plus ALLL;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;a description of the methods for reducing the Association&#146;s level of problem assets to
the established targets; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;all relevant assumptions and projections based on a best-case scenario, a worst-case
scenario, and a most probable case scenario, and documentation supporting such assumptions
and projections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">18.&nbsp;Within one hundred twenty (120)&nbsp;days, the Association shall develop individual written specific
workout plans for each adversely classified asset or REO of five hundred thousand ($500,000) or
greater (Asset Workout Plans).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">19.&nbsp;Within thirty (30)&nbsp;days after the end of each quarter, beginning with the quarter ending
September&nbsp;30, 2011, the Association shall submit a quarterly written asset status report (Quarterly
Asset Report) to the Board. The Board&#146;s review of the Quarterly Asset Report shall be documented
in the Board meeting minutes. The Quarterly Asset Report shall include, at a minimum:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;the current status of all Asset Workout Plans;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;a comparison of REO and classified assets to Tier 1 (Core) capital plus ALLL and Total
Risk-Based capital;
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">3</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>For purposes of this Paragraph, &#147;reduce&#148; means to
collect, sell, charge off, or improve the quality of an asset sufficient to
warrant its removal from adverse criticism or classification.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">4</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;problem assets&#148; shall include all real estate
owned (REO), adversely classified assets, and assets designated special
mention.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 7 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;a comparison of REO and classified assets at the current quarter end with the preceding
quarter;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;a breakdown of REO and classified assets by type and risk factor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;an assessment of the Association&#146;s compliance with the Problem Asset Reduction Plan;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;a discussion of the actions taken during the preceding quarter to reduce the
Association&#146;s level of problem assets; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(g)&nbsp;any recommended revisions or updates to the Problem Asset Reduction Plan or any
individual Asset Workout Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">20.&nbsp;Within forty-five (45)&nbsp;of days after the end of each quarter, beginning with the Quarter ending
September&nbsp;30, 2011, a copy of the Quarterly Asset Report shall be provided to the Regional
Director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Management Succession Plan</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">21.&nbsp;By July&nbsp;31, 2011, the Board shall develop and submit for Regional Director review and comment a
written plan for management succession at the Association (Management Succession Plan). The
Management Succession Plan shall include, at a minimum, timeframes for the Association to have and
retain qualified Senior Executive
Officers<SUP style="font-size: 85%; vertical-align: text-top">5</SUP> appropriate to ensure compliance with this
Order and applicable laws and regulations and to manage the operations of the Association in its
current financial condition and in accordance with its Capital and Business Plan. In addition, the
written Management Succession Plan shall:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;identify present and future management and staffing requirements for each business line
commensurate with the Association&#146;s Capital and Business Plan;<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;identify the Association officers covered by the Management Succession Plan;
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">5</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;Senior Executive Officer&#148; is defined at 12
C.F.R. &#167; 563.555.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 8 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;include recommendations as to whether senior management or staffing changes should be
made;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;identify possible successors for the officer positions from current employees of the
Association based on a list of skills and competencies desired for each officer position or
indicate where outside recruiting will be necessary;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;require the establishment of career development and training plans for potential officer
candidates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;include objectives by which senior management&#146;s effectiveness will be measured; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(g)&nbsp;require periodic evaluation by the Board of whether the goals and outcomes of the
Management Succession Plan need updating or adjusting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">22.&nbsp;Upon receipt of written notification from the Regional Director that the Management Succession
Plan is acceptable, the Association shall implement and adhere to the Management Succession Plan.
The Board&#146;s review of the Management Succession Plan shall be documented in the Board meeting
minutes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Liquidity Management</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">23.&nbsp;Within thirty (30)&nbsp;days, the Association shall revise its liquidity and funds management policy
(Liquidity Management Policy) to address all corrective actions set forth in the 2011 ROE relating
to liquidity and funds management. The Liquidity Management Policy shall comply with all
applicable laws, regulations and regulatory guidance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 9 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">24.&nbsp;The Liquidity Management Policy shall include a Contingency Funding Plan, which shall, at a
minimum, include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;alternative funding sources for meeting extraordinary demands or to provide liquidity in
the event the sources identified are insufficient. Such alternative funding sources must
consider,
at a minimum, the selling of assets, obtaining secured lines of credit, recovering
charged-off assets, injecting additional equity capital, and the priority of their
implementation; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;retention of investment securities and other identified categories of investments
that can be liquidated within one day in amounts sufficient (as a percentage of the
Association&#146;s total assets) to ensure the maintenance of the Association&#146;s liquidity
position at a level consistent with short-and-long-term liquidity objectives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">25.&nbsp;Within forty-five (45)&nbsp;days, the Association shall submit its Liquidity Management Policy to
the Regional Director for review and comment. Upon receipt of written notification from the
Regional Director that the Liquidity Management Policy is acceptable, the Association shall
implement and adhere to the Liquidity Management Policy. The Board&#146;s review of the Liquidity
Management Policy shall be documented in the Board meeting minutes. A copy of the Liquidity
Management Policy shall be provided to the Regional Director within seven (7)&nbsp;days of adoption by
the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">26.&nbsp;Effective immediately, the Association shall submit to the Regional Director a weekly written
assessment of its current liquidity position (Liquidity Report). The Liquidity Report shall be
acceptable to the Regional Director and, at a minimum, include:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;cash on hand;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;a maturity schedule of certificates of deposit, including, but not limited to, large
uninsured deposits and brokered deposits;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;the volatility of demand deposits, including escrow deposits;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;a schedule of all funding obligations, including money market accounts, unfunded loan
commitments, outstanding lines of credit and outstanding letters of credit;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(e)&nbsp;a listing of funding sources, including federal funds sold; unpledged assets and assets
available for sale; and borrowing lines by lender, including original amount, remaining
availability, type and book value of collateral pledged, terms, and maturity date, if
applicable;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 10 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(f)&nbsp;an analysis of the continuing availability and volatility of present funding sources;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(g)&nbsp;an analysis of the impact of decreased cash flow from the Association&#146;s loan portfolio
resulting from delinquent and non-performing loans; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(h)&nbsp;an analysis of the impact of decreased cash flow from the sale of loans or loan
participations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">27.&nbsp;Within five (5)&nbsp;days of receipt of communication from a Federal Home Loan Bank, Federal Reserve
Bank, correspondent bank, or government agency with collateralized public unit deposits regarding
changes in the Association&#146;s borrowing and/or collateral requirements, the Association shall notify
the Regional Director of such communication.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Violations of Law</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">28.&nbsp;Within thirty (30)&nbsp;days, the Association shall ensure that all violations of law and/or
regulation discussed in the 2011 ROE are corrected and that adequate policies, procedures and
systems are established or revised and thereafter implemented to prevent future violations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Board Oversight of Compliance with Order. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">29.&nbsp;Effective immediately, the Board shall monitor and coordinate the Association&#146;s compliance with
the provisions of this Order and the completion of all corrective actions required in the 2011 ROE.
The Board shall review and adopt all policies and procedures required by this Order prior to
submission to the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 11 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">30.&nbsp;Within thirty (30)&nbsp;days after the end of each quarter, beginning with the quarter ending June
30, 2011, the Association shall prepare a written compliance progress report for the Board
(Compliance Tracking Report). The Compliance Tracking Report shall, at a minimum:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;separately list each corrective action required by this Order and the 2011 ROE;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;identify the required or anticipated completion date for each corrective action; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;discuss the current status of each corrective action, including the action(s) taken or
to be taken to comply with each corrective action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">31.&nbsp;Within thirty (30)&nbsp;days at the end of each quarter, beginning with quarter ending June&nbsp;30,
2011, the Board shall review the Compliance Tracking Report and all reports required to prepared by
this Order. Following its review, the Board shall adopt a resolution: (a)&nbsp;certifying that each
director has reviewed the Compliance Tracking Report and all required reports; and (b)&nbsp;documenting
any corrective actions adopted by the Board. A copy of the Compliance Tracking Report and the
Board resolution shall be provided to the Regional Director within seven (7)&nbsp;days after the Board
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">32.&nbsp;Nothing contained herein shall diminish the responsibility of the entire Board to ensure the
Association&#146;s compliance with the provisions of this Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Growth</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">33.&nbsp;Effective immediately, the Association shall not increase its total assets during any quarter
in excess of an amount equal to net interest credited on deposit liabilities during the prior
quarter without the prior written non-objection of the Regional Director.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Golden Parachute Payments</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">34.&nbsp;Effective immediately, the Association shall not make any golden parachute payment<SUP style="font-size: 85%; vertical-align: text-top">6</SUP>
unless, with respect to such payment, the Association has complied with the requirements of
12 C.F.R. Part&nbsp;359.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Directorate and Management Changes</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">35.&nbsp;Effective immediately, the Association shall comply with the prior notification requirements
for changes in directors and Senior Executive Officers set forth in 12 C.F.R. Part&nbsp;563, Subpart H.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">6</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The term &#147;golden parachute payment&#148; is defined at 12
C.F.R. &#167; 359.1(f).</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 12 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Employment Contracts and Compensation Arrangements</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">36.&nbsp;Effective immediately, the Association shall not enter into any new contractual arrangement or
renew, extend, or revise any contractual arrangement relating to compensation or benefits for any
director or Senior Executive Officer of the Association, unless it first provides the Regional
Director with not less than thirty (30)&nbsp;days prior written notice of the proposed transaction. The
notice to the Regional Director shall include a copy of the proposed employment contract or
compensation arrangement or a detailed, written description of the compensation arrangement to be
offered to such director or Senior Executive Officer, including all benefits and perquisites. The
Board shall ensure that any contract, agreement, or arrangement submitted to the Regional Director
fully complies with the requirements of 12 C.F.R. Part&nbsp;359, 12 C.F.R. &#167;&#167; 563.39 and 563.161(b), and
12 C.F.R. Part&nbsp;570 &#151; Appendix&nbsp;A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Third Party Contracts. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">37.&nbsp;Effective immediately, the Association shall not enter into any arrangement or contract with a
third party service provider that is significant to the overall operation or financial condition of
the Association<SUP style="font-size: 85%; vertical-align: text-top">7</SUP> or outside the Association&#146;s normal course of business unless, with
respect to each such contract, the Association has: (a)&nbsp;provided the Regional Director with a
minimum of thirty (30)&nbsp;days prior written notice of such arrangement or contract and a written
determination that that the arrangement or contract complies with the standards and guidelines set
forth in OTS Thrift Bulletin 82a; and (b)&nbsp;received written notice of non-objection from the
Regional Director.
</DIV>
<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">7</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>A contract will be considered significant to the
overall operation or financial condition of the Association where the annual
contract amount equals or exceeds two percent (2%) of the Association&#146;s total
capital, where there is a foreign service provider, or where it involves
information technology that is critical to the Association&#146;s daily operations
without regard to the contract amount.</TD>
</TR>

</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 13 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Brokered Deposits</B></U><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">38.&nbsp;Effective immediately, the Association shall comply with the requirements of 12 C.F.R.
&#167; 337.6(b). The Association shall provide to the Regional Director a copy of any waiver request
submitted to the Federal Deposit Insurance Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Dividends and Other Capital Distributions</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">39.&nbsp;Effective immediately, the Association shall not declare or pay dividends or make any other
capital distributions, as that term is defined in 12 C.F.R. &#167; 563.141, without receiving the prior
written approval of the Regional Director in accordance with applicable regulations and regulatory
guidance. The Association&#146;s written request for approval shall be submitted to the Regional
Director at least thirty (30)&nbsp;days prior to the anticipated date of the proposed declaration,
dividend payment or distribution of capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Effective Date, Incorporation of Stipulation</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">40.&nbsp;This Order is effective on the Effective Date as shown on the first page. The Stipulation is
made a part hereof and is incorporated herein by this reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Duration</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">41.&nbsp;This Order shall remain in effect until terminated, modified, or suspended, by written notice
of such action by the OTS, acting by and through its authorized representatives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Time Calculations</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">42.&nbsp;Calculation of time limitations for compliance with the terms of this Order run from the
Effective Date and shall be based on calendar days, unless otherwise noted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">43.&nbsp;The Regional Director or an OTS authorized representative may extend any of the deadlines set
forth in the provisions of this Order upon written request by the Association that includes reasons
in support for any such extension. Any OTS extension shall be made in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 14 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Submissions
and Notices</B></U>.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">
44. All submissions, including any reports, to the OTS that are required by or contemplated by this
Order shall be submitted within the specified timeframes.</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">
45. Except as otherwise provided herein, all submissions, requests, communications, consents, or
other documents relating to this Order shall be in writing and sent by first class U.S. mail (or by
reputable overnight carrier, electronic facsimile transmission, or hand delivery by messenger)
addressed as follows:

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>To the OTS:</B></TD>
</TR>

</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Regional Director<br>
Office of Thrift Supervision<br>
One South Wacker Drive, Suite&nbsp;2000<br>
Chicago, Illinois 60606<br>
Facsimile: (312)&nbsp;917-5001
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>To the Association:</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Chairman of the Board<br>
CFBank<br>
2923 Smith Road<br>
Fairlawn, Ohio 44333<br>
Facsimile: (330)&nbsp;666-7959
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Transfer Date</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">46.&nbsp;Following the Transfer Date, <I>see </I>Dodd-Frank Wall Street Reform and Consumer Protection Act,
Pub. Law No.&nbsp;111-203, &#167; 311, 124 Stat. 1520 &#151; 21 (2010), all submissions, requests,
communications, consents or other documents relating to this Order shall be directed to the
Comptroller of the Currency, or to the individual, division, or office designated by the
Comptroller of the Currency.<BR>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 15 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">
<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>No Violations Authorized</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">47.&nbsp;Nothing in this Order or the Stipulation shall be construed as allowing the Association, its
Board, officers, or employees to violate any law, rule, or regulation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>IT IS SO ORDERED.</B>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>OFFICE OF THRIFT SUPERVISION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Daniel T. McKee&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Regional Director, Central Region&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Order to Cease and Desist<BR>
Page 16 of 16

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>UNITED STATES OF AMERICA<BR>
Before the<BR>
OFFICE OF THRIFT SUPERVISION</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="38%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the Matter of
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Order No.: CN 11-14</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CFBANK</B>
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Effective Date: May&nbsp;25, 2011</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Fairlawn, Ohio
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OTS Docket No.&nbsp;01260
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV></TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>STIPULATION AND CONSENT TO ISSUANCE OF ORDER TO CEASE AND DESIST</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Office of Thrift Supervision (OTS), acting by and through its Regional Director
for the Central Region (Regional Director), and based upon information derived from the exercise of
its regulatory and supervisory responsibilities, has informed CFBank, Fairlawn, Ohio, OTS Docket
No.&nbsp;01260 (Association) that the OTS is of the opinion that grounds exist to initiate an
administrative proceeding against the Association pursuant to 12 U.S.C. &#167; 1818(b);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS, </B>the Regional Director, pursuant to delegated authority, is authorized to issue Orders
to Cease and Desist where a savings association has consented to the issuance of an order; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%"><B>WHEREAS</B>, the Association desires to cooperate with the OTS to avoid the time and expense of
such administrative cease and desist proceeding by entering into this Stipulation and Consent to
the Issuance of Order to Cease and Desist (Stipulation) and, without admitting or denying that such
grounds exist, but only admitting the statements and conclusions in Paragraphs 1 and 2 below
concerning Jurisdiction, hereby stipulates and agrees to the following terms:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 1 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Jurisdiction</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">1.&nbsp;The Association is a &#147;savings association&#148; within the meaning of 12 U.S.C. &#167; 1813(b) and 12
U.S.C. &#167; 1462(4). Accordingly, the Association is an &#147;insured depository institution&#148; as that term
is defined in 12 U.S.C. &#167; 1813(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">2.&nbsp;Pursuant to 12 U.S.C. &#167; 1813(q), the Director of the OTS is the &#147;appropriate Federal banking
agency&#148; with jurisdiction to maintain an administrative enforcement proceeding against a savings
association. Therefore, the Association is subject to the authority of the OTS to initiate and
maintain an administrative cease and desist proceeding against it pursuant to 12 U.S.C.
&#167; 1818(b).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>OTS Findings of Fact</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">3.&nbsp;Based on a comprehensive examination of the Association dated January&nbsp;3, 2011
(2011 ROE), the OTS finds that the Association has engaged in unsafe or unsound banking practices
and/or violations of law or regulation that resulted in the Association operating with: (a)&nbsp;an
excessive level of adversely classified assets; and (b)&nbsp;inadequate earnings to augment capital as
described in the 2011 ROE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Consent</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">4.&nbsp;The Association consents to the issuance by the OTS of the accompanying Order to Cease and
Desist (Order). The Association further agrees to comply with the terms of the Order upon the
Effective Date of the Order and stipulates that the Order complies with all requirements of law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Finality</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">5.&nbsp;The Order is issued by the OTS under 12 U.S.C. &#167; 1818(b). Upon the Effective Date, the Order
shall be a final order, effective, and fully enforceable by the OTS under the provisions of 12
U.S.C. &#167; 1818(i).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 2 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Waivers</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">6.&nbsp;The Association waives the following:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(a)&nbsp;the right to be served with a written notice of the OTS&#146;s charges against it as provided
by 12 U.S.C. &#167; 1818(b) and 12 C.F.R. Part&nbsp;509;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(b)&nbsp;the right to an administrative hearing of the OTS&#146;s charges as provided by
12 U.S.C. &#167; 1818(b) and 12 C.F.R. Part&nbsp;509;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(c)&nbsp;the right to seek judicial review of the Order, including, without limitation, any such
right provided by 12 U.S.C. &#167; 1818(h), or otherwise to challenge the validity of the Order;
and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;any and all claims against the OTS, including its employees and agents, and any other
governmental entity for the award of fees, costs, or expenses related to this OTS
enforcement matter and/or the Order, whether arising under common law, federal statutes or
otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>OTS Authority Not Affected. </B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">7.&nbsp;Nothing in this Stipulation or accompanying Order shall inhibit, estop, bar, or otherwise
prevent the OTS from taking any other action affecting the Association if at any time the OTS deems
it appropriate to do so to fulfill the responsibilities placed upon the OTS by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Other Governmental Actions Not Affected</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">8.&nbsp;The Association acknowledges and agrees that its consent to the issuance of the Order is solely
for the purpose of resolving the matters addressed herein, consistent with Paragraph&nbsp;7 above, and
does not otherwise release, discharge, compromise, settle, dismiss, resolve, or in any way affect
any actions, charges against, or liability of the Association that arise pursuant to this action or
otherwise, and that may be or have been brought by any governmental entity other than the OTS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 3 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Miscellaneous</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">9.&nbsp;The laws of the United States of America shall govern the construction and validity of this
Stipulation and of the Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">10.&nbsp;If any provision of this Stipulation and/or the Order is ruled to be invalid, illegal, or
unenforceable by the decision of any Court of competent jurisdiction, the validity, legality, and
enforceability of the remaining provisions hereof shall not in any way be affected or impaired
thereby, unless the Regional Director in his or her sole discretion determines otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">11.&nbsp;All references to the OTS in this Stipulation and the Order shall also mean any of the OTS&#146;s
predecessors, successors, and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">12.&nbsp;The section and paragraph headings in this Stipulation and the Order are for convenience only
and shall not affect the interpretation of this Stipulation or the Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">13.&nbsp;The terms of this Stipulation and of the Order represent the final agreement of the parties
with respect to the subject matters thereof, and constitute the sole agreement of the parties with
respect to such subject matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">14.&nbsp;The Stipulation and Order shall remain in effect until terminated, modified, or suspended in
writing by the OTS, acting through its Regional Director or other authorized representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><U><B>Signature of Directors/Board Resolution</B></U><B>.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">15.&nbsp;Each Director signing this Stipulation attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Association to the issuance of the Order and the
execution of the Stipulation. This Stipulation may be executed in counterparts by the directors
after approval of execution of the Stipulation at a duly called board meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 4 of 5

</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>WHEREFORE, </B>the Association, by its directors, executes this Stipulation.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><B>CFBANK</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Accepted by:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><B>Fairlawn, Ohio</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>Office of Thrift Supervision</B></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
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Jerry F. Whitmer, Chairman
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    <TD align="left" valign="top">By:
</TD>
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Daniel T. McKee
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    <TD align="left" valign="top">Regional Director, Central Region</TD>
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    <TD valign="top">/s/</TD>
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    <TD colspan="3" valign="top" align="left">Date: See Effective Date on page 1</TD>
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Jeffrey W. Aldrich, Director
</DIV></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
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Thomas P. Ash, Director
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
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William R. Downing, Director
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/
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Gerry W. Grace, Director
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt">CFBank<BR>
Stipulation and Consent to Issuance of Order to Cease and Desist<BR>
Page 5 of 5

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