Exhibit 10.1

 

SFSB, Inc.

 

FORM OF

 

RESTRICTED STOCK AGREEMENT

 

AGREEMENT, by and between SFSB, Inc., a Maryland corporation (the ”Company”),
and                              (the “Participant”):

 

1. Award of Shares:

 

Pursuant to the SFSB, Inc. 2005 Recognition and Retention Plan (the “Plan”), the
Company has awarded to the Participant, and has caused to be recorded on the
books of the Company, a restricted stock award on                             
(the “Award Date”), of                              shares (the “Award Shares”)
of the Company’s common stock, par value $0.01 per share (the “Common Stock”)
subject to the terms and conditions set forth in this Agreement, the Plan and
any applicable securities laws or regulations.

 

2. Terminology:

 

All capitalized words that are not defined in this Agreement have the meanings
ascribed to them in the Plan. Except where the context otherwise requires, the
term “Company” shall include SFSB, Inc. and its Affiliates.

 

3. Award Restrictions:

 

Except in the event of the Death, Disability, Normal Retirement of following a
Change in Control, and subject to the limitations in the Plan, the Award Shares
are nontransferable (whether by sale, assignment, exchange, pledge,
hypothecation, or otherwise) and are subject to forfeiture until they vest in
accordance with the attached Vesting Schedule (the “Restricted Period”). Vesting
during the Restricted Period shall occur so long as the Participant is in
Continuous Service of the Company from the Award Date through the applicable
date upon which the Restricted Period expires.

 

Upon the vesting of Award Shares by virtue of the lapse of the Restricted Period
and the other conditions in the Plan, the Company shall deliver to the
Participant (or his/her estate, as may be applicable) a stock certificate
covering the requisite number of vested shares registered on the Company’s books
in the name of the Participant within a reasonable period of time after the
Restricted Period expires.

 

4. Stock Certificates and Stock Power:

 

The stock certificate(s) evidencing the Award Shares shall be registered on the
Company’s books in the name of the Participant as of the Award Date as described
in the Plan. Physical possession or custody of such stock certificate(s) shall
be retained by the Company, or its escrow agent, until such time as the shares
are vested (i.e., the Restricted Period lapses). The stock certificate shall
include a legend on the stock certificate(s) restricting the transferability of
such certificate(s) and referring to the terms and conditions (including
forfeiture) of the Plan. The Participant shall deliver to the Company a stock
power in the form as attached hereto as Exhibit A, endorsed in blank, with
respect to the Award Shares to be held by the Company during the Restricted
Period.

 

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During the Restricted Period, except as otherwise provided in Section 3 of this
Agreement and in the Plan, the Participant shall be entitled to all rights of a
stockholder of the Company, including the right to vote the shares and receive
dividends and/or other distributions declared on such shares as described in the
Plan.

 

5. Termination of Employment or Service Relationship:

 

Except as provided in the Plan, no Restricted Stock shall be earned unless the
Recipient maintains Continuous Service with the Company or an Affiliate until
the Restricted Period expires. The Board of Directors of the Company may revoke,
rescind, or terminate any Award, or a portion thereof.

 

6. Administration:

 

The Committee shall have full authority and discretion to decide all matters
relating to the administration, interpretation, and implementation of this
Agreement. All such determinations of the Committee shall be final, conclusive
and binding upon the Company and the Participant.

 

7. Withholding Taxes:

 

Upon the termination of the Restricted Period with respect to any shares of
Restricted Stock (or at any such earlier time that an election is made by the
Participant under Section 83(b) of the Code, or any successor provision thereto,
to include the value of such shares in taxable income), the Company or its
Affiliate, shall have the right to require the Participant or other person
receiving such shares to pay the amount of any taxes that the Company or its
Affiliate is required to withhold with respect to such shares, or, in lieu
thereof, to retain or sell without notice, a sufficient number of shares held by
it to cover the minimum amount of tax required to be withheld by an governmental
authority. The Company or its Affiliate shall have the right to deduct from all
dividends paid with respect to shares of Restricted Stock the amount of any
taxes which the Company or its Affiliate is required to withhold with respect to
such dividend payments.

 

8. Tax Election and Tax Withholding:

 

(a) Section 83(b) Election. The Participant hereby acknowledges that he/she has
been advised by the Company to seek independent tax advice regarding the
availability and advisability of making an election under Section 83(b) of the
Internal Revenue Code of 1986, as amended, with respect to the Award Shares, and
that any such election, if made, must be made within 30 days of the Award Date.

 

(b) Tax Withholding. At the Participant’s election, the Company shall either (i)
withhold the issuance of a portion of the Award Shares, (ii) deduct from any
other payment of any kind due the Participant, or (iii) accept a cash payment by
the Participant, in each case in an amount equal to the amount of any federal,
state or local taxes required by law to be withheld as a result of the award or
vesting of the Award Shares; provided, however, that if the Award Shares are
withheld, the value of the Award Shares withheld may not exceed the statutory
minimum withholding amount required by law. The Participant hereby acknowledges
and agrees that the Company shall have the right to effect such withholding or
deduction in accordance with his election.

 

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9. Notices:

 

All notices and other communications made or given pursuant to this Agreement
shall be in writing and shall be sufficiently made or given if hand delivered or
mailed by certified mail, addressed to the Participant at the address contained
in the records of the Company, or addressed to the Committee, care of the
Company for the attention of its Corporate Secretary at its principal office or,
if the receiving party consents in advance, transmitted and received via
telecopy or via such other electronic transmission mechanism as may be available
to the parties.

 

10. Amendments:

 

This Agreement may be amended from time to time by the Committee in its
discretion; provided that this Agreement may not be modified in a manner that
would have a materially adverse effect on the Award Shares as determined in the
discretion of the Committee, except as provided in the Plan or in a written
document signed by each of the parties hereto.

 

11. Conformity with Plan:

 

This Agreement is intended to conform in all respects with, and is subject to
all applicable provisions of, the Plan. Inconsistencies between this Agreement
and the Plan shall be resolved in accordance with the terms of the Plan. In the
event of any ambiguity in this Agreement or any matters as to which this
Agreement is silent, the Plan shall govern. A copy of the Plan has been provided
to the Participant with this Agreement.

 

12. Governing Law:

 

The validity, construction and effect of this Agreement, and of any
determinations or decisions made by the Committee relating to this Agreement,
and the rights of any and all persons having or claiming to have any interest
under this Agreement, shall be determined exclusively in accordance with the
laws of the State of Maryland, without regard to its provisions concerning the
applicability of laws of other jurisdictions. Any suit with respect hereto will
be brought in the federal or state courts in the districts which include the
city and state in which the principal offices of the Company are located, and
the Participant hereby agrees and submits to the personal jurisdiction and venue
thereof.

 

13. Headings:

 

The headings in this Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Agreement.

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer, and the Participant has hereunto set his or her hand
and seal, on this      day of                 ,             .

 

SFSB, INC.     By:  

 

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Print Name:  

 

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  Participant

Title:  

 

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ACCEPTED AND AGREED:

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                                                 Participant

 

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VESTING SCHEDULE

 

[Intentionally left blank]

 

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EXHIBIT A

 

STOCK POWER

 

FOR VALUE RECEIVED, the undersigned,                                 , hereby
assigns and transfers unto SFSB, Inc. (the “Company”) or its successor
                                 shares of common stock of the Company, par
value $0.01 per share, standing in my name of the books of the Company,
represented by Certificate No.                     , which is attached hereto,
and hereby irrevocably constitutes and appoints
                                         as my attorney to transfer the said
stock on the books of the Company with full power of substitution in the
premises.

 

WITNESS:

 

 

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    Participant     Dated:  

 

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