Document:

Exhibit 10.4

 

Restricted
Stock Award

 

Granted by

 

WATERSTONE
FINANCIAL, INC.

 

under the

 

WATERSTONE FINANCIAL, INC.

2015 EQUITY INCENTIVE PLAN

 

This restricted stock agreement
(“Restricted Stock Award” or “Agreement”) is and will be subject in every respect to the
provisions of the 2015 Equity Incentive Plan (the “Plan”) of Waterstone Financial, Inc. (the “Company”)
which are incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement. A copy of the Plan
has been provided to each person granted a Restricted Stock Award pursuant to the Plan. The holder of this Restricted Stock Award
(the “Participant”) hereby accepts this Restricted Stock Award, subject to all the terms and provisions of the
Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement by the Committee
appointed to administer the Plan (“Committee”) or the Board will be final, binding and conclusive upon the Participant
and the Participant’s heirs, legal representatives, successors and permitted assigns. Except where the context otherwise
requires, the term “Company” will include the parent and all present and future subsidiaries of the Company as defined
in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).
Capitalized terms used herein but not defined will have the same meaning as in the Plan.

 

		1.	Name of Participant______________________________________________________

 

		2.	Date of Grant: March 6, 2015

 

		3.	Total number of
shares of Company common stock, $0.01 par value per share, covered by the Restricted Stock Award: __________________________________________

(subject to adjustment pursuant to Section 9 hereof).

 

		4.	Vesting Schedule. Except as otherwise provided in this Agreement, this Restricted
Stock Award first becomes earned in accordance with the vesting schedule specified herein.

 

The Restricted
Stock Awards granted under the Plan shall vest in five (5) equal annual installments, with the first installment becoming exercisable
on the date of grant, or March 6, 2015, and succeeding installments on each anniversary thereafter, through March 6, 2019. To the
extent the shares of Restricted Stock awarded to me are not equally divisible by “5,” any excess shares of Restricted
Stock shall vest on March 6, 2019.

 

    	 

    	 

    

 

Vesting will
automatically accelerate pursuant to Section 2.9 of the Plan (in the event of death, Disability or Involuntary Termination of Employment
following a Change in Control or Involuntary Termination of Service as a Director following a Change in Control).

 

		5.	Grant of Restricted Stock Award.

 

The Restricted Stock Award will
be in the form of issued and outstanding shares of Stock that will be either registered in the name of the Participant and held
by the Company, together with a stock power executed by the Participant in favor of the Company, pending the vesting or forfeiture
of the Restricted Stock, or registered in the name of, and delivered to, the Participant. Notwithstanding the foregoing, the Company
may in its sole discretion, issue Restricted Stock in any other format (e.g., electronically) in order to facilitate the paperless
transfer of such Awards.

 

If certificated, the certificates
evidencing the Restricted Stock Award will bear a legend restricting the transferability of the Restricted Stock. The Restricted
Stock awarded to the Participant will not be sold, encumbered hypothecated or otherwise transferred except in accordance with the
terms of the Plan and this Agreement.

 

		6.	Terms and Conditions.

 

		6.1	The Participant will have the right to vote the shares of Restricted Stock awarded hereunder on
matters which require shareholder vote.

 

		6.2	Dividends on shares of Restricted Stock will be retained in the Plan until the Restricted Stock
on which such dividend is paid vests and such dividend (and earnings thereon, if any) will be distributed within two and one-half
months of such vesting date. Notwithstanding the foregoing, if the Participant makes an election under Section 83(b) of the Internal
Revenue Code to have the Restricted Stock taxed as of the grant date, dividends on shares of such Restricted Stock will be paid
to the Participant when declared.

 

		7.	Delivery of Shares.

 

Delivery of shares of Stock under
this Restricted Stock Award will comply with all applicable laws (including, the requirements of the Securities Act), and the applicable
requirements of any securities exchange or similar entity.

 

		8.	Change in Control.

 

		8.1	In the event of the Participant’s Involuntary Termination of Employment following a Change
in Control or Involuntary Termination of Service as a Director following a Change in Control, all Restricted Stock Awards held
by the Participant will become fully exercisable.

 

    	2

    	 

    

 

		8.2	A “Change in Control” will be deemed to have occurred as provided in Section
4.2 of the Plan.

 

		9.	Adjustment Provisions.

 

This Restricted
Stock Award, including the number of shares subject to the Restricted Stock Award, will be adjusted upon the occurrence of the
events specified in, and in accordance with the provisions of, Section 3.4 of the Plan.

 

		10.	Effect of Termination of Service on Restricted Stock Award.

 

		10.1	This Restricted Stock Award will vest as follows:

 

		(i)	Death. In the event of the Participant’s Termination
of Service by reason of the Participant’s death, all Restricted Stock will vest as to all shares subject to an outstanding
Award, whether or not immediately vested, at the date of Termination of Service. 

 

		(ii)	Disability. In the event of the Participant’s Termination
of Service by reason of Disability, all Restricted Stock will vest as to all shares subject to an outstanding Award, whether or
not immediately vested, at the date of Termination of Service.

 

		(iii)	Retirement. In the event of the Participant’s Termination of Service by reason of
the Participant’s Retirement, any Restricted Stock award that has not vested as of the date of Termination of Service will
expire and be forfeited. “Retirement” shall have the meaning set forth in Section 8.1(dd) of the Plan. 

 

		(iv)	Termination for Cause. If the Participant’s Service
has been terminated for Cause, all Restricted Stock granted to a Participant that has not vested will expire and be forfeited.

 

		(iv)	Other Termination. If a Participant terminates Service
for any reason other than due to death, Disability, Retirement, Involuntary Termination following a Change in Control or for Cause,
all shares of Restricted Stock awarded to the Participant which have not vested as of the date of Termination of Service will expire
and be forfeited.

 

	11.		Miscellaneous.

 

		11.1	No Restricted Stock Award will confer upon the Participant any rights as a stockholder of the Company
prior to the date on which the individual fulfills all conditions for receipt of such rights.

 

		11.2	This Agreement may not be amended or otherwise modified unless evidenced in writing and signed
by the Company and the Participant.

 

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		11.3	Restricted Stock Awards are not transferable prior to the time such Awards vest in the Participant.

 

		11.4	This Restricted Stock Award will be governed by and construed in accordance with the laws of the
State of Wisconsin.

 

		11.5	This Restricted Stock Award is subject to all laws, regulations and orders of any governmental
authority which may be applicable thereto and, notwithstanding any of the provisions hereof, the Company will not be obligated
to issue any shares of stock hereunder if the issuance of such shares would constitute a violation of any such law, regulation
or order or any provision thereof.

 

[Signature Page Follows]

 

    	4

    	 

    

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be executed in its name and on its behalf as of the date of grant of this Restricted Stock Award set forth above.

 

	 	WATERSTONE FINANCIAL, INC.
	 	 	 
	 	By:	 

 

	 	Its:	 

 

PARTICIPANT’S ACCEPTANCE

 

The undersigned hereby
accepts the foregoing Restricted Stock Award and agrees to the terms and conditions hereof, including the terms and provisions
of the 2015 Equity Incentive Plan. The undersigned hereby acknowledges receipt of a copy of the Company’s 2015 Equity Incentive
Plan.

 

	 	PARTICIPANT
	 	 
	 	 

 

    	5Exhibit
10.6. Form of Participant Agreement for Long-Term Incentive Plan.

 

PARTICIPANT
AGREEMENT

 

[NAME,
TITLE]

This
Participant Agreement (the “Agreement”) is made as of the [DATE] day of [MONTH], [YEAR], between Capital City Bank
Group, Inc., a Florida corporation (the “Company”), and [NAME] (“Participant”). Capitalized terms used
and not otherwise defined herein shall have the meanings attributed thereto in the Capital City Bank Group, Inc. 2011 Associate
Incentive Plan (the “Plan”).

 

WHEREAS,
the Participant is a key officer or associate of the Company or one of its subsidiaries who has been selected to receive an Award
of Performance Share Units under the Plan by the Compensation Committee of the Company’s Board of Directors (the “Committee”).

 

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

 

1.          Grant.

 

             (a)          Performance
Share Units. Upon the execution of this Agreement, the Committee hereby grants the Participant an Award of up to [NUMER] Performance
Share Units, to be payable in three installments, upon the attainment of the performance goals set forth in Exhibit A and subject
to the terms and conditions of this Agreement and the Plan. Upon issuance, the Performance Share Units shall be immediately converted
to shares (the “Shares”) of Common Stock of the Company.

 

             (b)          Cash.
Upon the execution of this Agreement, the Committee hereby grants the Participant a Cash Award of up to $[NUMBER], to be payable
in three installments, upon the attainment of the performance goals set forth in Exhibit A and subject to the terms and conditions
of this Agreement and the Plan.

 

2.          Earnings
Goals. The Performance Share Units are hereby awarded on the basis, and Shares shall be issued at the time of achievement,
of the earnings goals for such Performance Share Units set forth on Exhibit A (“Earnings Goals”). The Shares shall
not be issued, and Participant shall lose all rights to same, if (i) the Earnings Goals set forth on Exhibit A and applicable
to those issuances are not met, (ii) the Company reports negative earnings for the calendar year (no Performance Share Units shall
be issued for that calendar year and all rights to same shall be forfeited), or (iii) prior to the award date, Participant ceases
to be employed by the Company or any subsidiary for any reason, including death, disability or voluntary or involuntary termination,
with or without cause, or is employed in a capacity of lesser responsibility within the Company or Subsidiary from that now occupied
by Participant. The failure to meet an Earnings Goal in one calendar year will not affect the prior issuance of Shares pursuant
to a previously satisfied Earnings Goal.

 

3.          Representations
and Warranties of the Participant. The Participant represents, warrants and covenants that:

 

             (a)          Knowledge
and Experience. The Participant has such knowledge and experience in financial and business matters that he or she, together
with his or her professional advisor, if any, is capable of evaluating the merits and risks of receipt of the Shares. The Participant
has had access to such information concerning the Company, including its current financial statements, as the Participant deems
necessary to enable him or her to make an informed decision concerning receipt of the Shares.

 

             (b)          Withholding
Taxes. The Participant acknowledges and agrees that the Company may withhold from the Participant’s cash compensation
(whether paid in the form of salary, bonus or other type of cash payment) an amount calculated on the taxable income recognized
by the Participant with respect to all compensation paid hereunder, calculated at the maximum withholding rate permitted for the
Company under the Internal Revenue Code of 1986, as amended (the “Code”). The date of such taxable income recognition,
and the Company’s corresponding right to withhold from Participant’s cash compensation shall occur on the first date
the Participant has the right to receive the Shares, whether or not the Participant exercises that right.

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4.          No
Change in Employment Status. Nothing in the Agreement shall alter, in any way, Participant’s employment status with
the Company, nor shall anything in this Agreement confer upon the Participant any right to continue in the employ of the Company
or any of its subsidiaries or interfere in any way with the rights of the Company to change or terminate the employment of the
Participant. Designation as a Participant pursuant to this Agreement will not confer any right on the Participant to be designated
as a Participant in the future. This paragraph shall not change the terms and conditions of any employment agreement in effect
between the Participant and the Company.

 

5.          Interpretation.
The Committee interpretation of this Agreement, the Plan and all other decisions and determinations by the Committee shall be
final and binding upon the parties hereto. The Committee may amend any provision of this Agreement at any time; provided that,
except with the consent of the Participant, no amendment of this Agreement will impair the rights of the Participant to the Shares.
The Committee shall have the full and exclusive right to make reductions in Awards under
the Agreement. In determining whether to reduce any Award and the amount of any such reduction, the Committee shall take into
consideration such factors as the Committee shall determine reasonable under the circumstances, in its sole and absolute discretion.
The discretion of the Committee does not include the authority to change, in any way, the payment date, the issuance date or the
timing of a benefit hereunder, whether acceleration or deferral. The Committee does not have the authority to increase any Award
and, if an Award is reduced by the Committee for any reason, the reduction shall be permanently reduced. Notwithstanding any provision
of this Agreement to the contrary, the intent of the parties is that benefits under this Agreement comply with Internal Revenue
Code Section 409A (“Section 409A”), as may be amended from time to time, to the extent subject thereto, and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. To the extent
any amount accrued or payable under this Agreement is or becomes subject to Section 409A, this Agreement shall be interpreted
and construed in a manner consistent with Section 409A.

 

6.          Company
Rights. This Agreement shall not in any way affect the right of the Company to make changes of its capital structure or to
merge or consolidate or to dissolve, liquidate or sell all or any part of its business or its assets.

 

7.          Plan.
The terms and provisions of the Plan are incorporated herein by reference, and Participant agrees to be bound by all such terms
and provisions. In the event of a conflict or inconsistency between any terms and conditions of this Agreement and the Plan, the
Plan shall govern and control.

 

8.          Miscellaneous.
This Agreement and the Plan represent the entire understanding and agreement between the parties with respect to the subject matter
of this Agreement, and supersedes all other negotiations, understandings and representations (if any) made by and between the
parties. All of the terms and provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable
by the parties and their respective heirs, legal representatives, successors and permitted assigns, whether so expressed or not.
No party shall assign its rights or obligations under this Agreement without the prior written consent of each other party to
this Agreement.

The
headings contained in this Agreement are for convenience of reference only, and shall not limit or otherwise affect in any way
the meaning or interpretation of this Agreement. If any part of this Agreement or any other agreement entered into pursuant to
this Agreement is contrary to, prohibited by or deemed invalid under applicable law or regulation, such provision shall be inapplicable
and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder of this Agreement shall not be invalidated
thereby and shall be given full force and effect so far as possible. All covenants, agreements, representations and warranties
made in this Agreement or otherwise made in writing by any party pursuant to this Agreement shall survive the execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby.

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The
parties acknowledge that a substantial portion of the negotiations and anticipated performance of this Agreement occurred or shall
occur in Leon County, Florida. Any civil action or legal proceeding arising out of or relating to this Agreement shall be brought
in the courts of record of the State of Florida in Leon County or the United States District Court, Northern District of Florida.
Each party consents to the jurisdiction of this court in any civil action or legal proceeding and waives any objection to the
laying of venue of any civil action or legal proceeding in court. Service of any court paper may be effected on a party by mail,
as provided in this Agreement, or in any other manner as may be provided under applicable laws, rules of procedure or local rules.

This
Agreement and all transactions contemplated by this Agreement shall be governed by, and construed and enforced in accordance with,
the internal laws of the State of Florida without regard to principles of conflicts of laws. If any legal action or other proceeding
is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default, or misrepresentation in connection
with any provision of this Agreement, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys’
fees, sales and use taxes, court costs, and all other expenses even if not taxable as court costs. This Agreement may be executed
in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.

[SIGNATURE
PAGE FOLLOWS]

 

IN
WITNESS WHEREOF, the parties have caused this Participant Agreement to be signed as of the date first written above.

	 	 	 	 	 
	Witnesses:	 	 	CAPITAL
    CITY BANK GROUP, INC.
	 	 	 	 
	 	 	 	By:	 
	 	 	 	[NAME]
	 	 	 	[TITLE]
	 	 	 	 
	 	 	 	 
	 	 	 	[NAME]
	 	        [TITLE]	 	 

    	111

    	 

    

EXHIBIT
A

 

EARNINGS
GOALS

 

The purpose
of Exhibit A is to set forth the Earnings Goals and to advise the Participant as to the potential number of Performance Share
Units which may be earned under the Plan if the Earnings Goals are achieved.

 

Performance
Share Units

 

Performance
Share Units may be earned for achieving Compound Annual Growth Rate (“CAGR”) in Diluted Earnings per Share (“DEPS”).
The level of economic value of eligible Performance Share Units ranges from zero to a maximum of $[NUMBER] (at the date of grant).
The Participant is eligible to receive up to [NUMBER] Performance Share Units if the established Earnings Goals are achieved.
If the CAGR is greater than [NUMBER]% and less than or equal to [NUMBER]%, then the economic value of the award will be awarded
on a pro-rata basis. Payment in year one ([YEAR]) will be based on one year growth in EPS; payment in year two ([YEAR]) will be
based on two years compounded growth in EPS; and payment in year three ([YEAR]) will be based on three years compounded growth
in EPS.

	 	 	 	 	 	 	 
	[YEAR]Plan	EPS	CAGR

    ($___ in [YEAR])	Economic

                                         Value of

        Shares
	#
    of Shares

     @

    $[NUMBER]	Cash	Total
    Award

    Value
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	[YEAR]Plan	EPS	CAGR

    ($___ in [YEAR])	Economic

                                         Value of

        Shares
	#
    of Shares

     @

    $[NUMBER]	Cash	Total
    Award

    Value
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	[YEAR]Plan	EPS	CAGR

    ($___ in [YEAR])	Economic

                                         Value of

        Shares
	#
    of Shares

     @

    $[NUMBER]	Cash	Total
    Award

    Value
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

Shares convertible
from Performance Share Units will be issued in the calendar quarter following the calendar year in which the Performance Share
Units were earned. The value of the Shares issued is treated as compensation and creates an additional tax liability for the Participant
as of the first date the Participant has the right to receive the Shares, whether or not the Participant exercises that right.

 

CASH
AWARD

Cash may
be earned for achieving Compound Annual Growth Rate (“CAGR”) in Diluted Earnings per Share (“DEPS”) in
a range from zero to a maximum of $[NUMBER]. If the CAGR is greater than [NUMBER]% and less than or equal to [NUMBER]%, then the
cash value portion of the award will be awarded on a pro-rata basis. Payment in year one ([YEAR]) will be based on one year growth
in EPS; payment in year two ([YEAR]) will be based on two years compounded growth in EPS; and payment in year three ([YEAR]) will
be based on three years compounded growth in EPS. Due to the complexities of the tax laws and circumstances which may affect individual
participants, the Participant is encouraged to consult with the Participant’s tax advisor concerning any possible tax consequences
of this transaction.

    	112

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