Document:

Exhibit 10.3

  

   

    

  
    
      

      

      TIMBERLAND BANCORP, INC.

      2019 EQUITY INCENTIVE PLAN

      

      

      NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

      

      

      
        	
                 NQSO No. _______________ 

                  

              	
                Grant Date: _______________ 

                

              

      

      

      

      

      

      This Non-Qualified Stock Option Award (“NQSO”) is granted by Timberland Bancorp, Inc. (“Corporation”) to _____________________ (“Option Holder”) in accordance with the terms of this Non-Qualified
        Stock Option Award Agreement (“Agreement”) and subject to the provisions of the Timberland Bancorp, Inc. 2019 Equity Incentive Plan, as amended from time to time (“Plan”).  The Plan is incorporated herein by reference.

      

      

      
        	
                1.

              	
                NQSO Award.  The Corporation grants to Option Holder NQSOs to purchase _______ Shares at an
                    Exercise Price of $____ per Share.  These NQSOs are subject to forfeiture and to limits on transferability until they vest, as provided in Sections 5 and 6 of this Agreement and in Article V of
                    the Plan.

              

      

      
        	
                2.

              	
                Vesting Dates.  The NQSOs shall vest as follows, subject to earlier vesting in the event of a
                    termination of Service as provided in Section 6 or a Change in Control as provided in Section 7:

              

      

      
        	
                Vesting Date 

                

              	
                NQSOs for

                  Number of Shares Vesting 

                

              

      

      
        	
                3.

              	
                Exercise.  The Option Holder (or in the case of the death of the Option Holder, the
                    designated legal representative or heir of the Option Holder) may exercise the NQSOs during the Exercise Period by giving written notice to the Corporate Secretary in the form required by the Committee (“Exercise Notice”).  The Exercise
                    Notice must specify the number of Shares to be purchased, which shall be at least 100 unless fewer shares remain unexercised.  The exercise date is the date the Exercise Notice is received by the Corporation.  The Exercise Period
                    commences on the Vesting Date and expires at 5:00 p.m., EST, on the date 10 years after the Grant Date, such later time and date being hereinafter referred to as the “Expiration Date,” subject to earlier expiration in the event of a
                    termination of Service as provided in Section 6.  Any NQSOs not exercised as of the close of business on the last day of the Exercise Period shall be cancelled without consideration at that time.

              

      

      The Exercise Notice shall be accompanied by payment in full of the Exercise Price for the Shares being purchased.  Payment shall be made: (a) in cash, which may be in the form
        of a check, money order, cashier's check or certified check, payable to the Corporation, or (b) by delivering Shares of the Corporation already owned by the Option Holder having a Fair Market Value on the exercise date equal to the aggregate
        Exercise 

       

         

      
        
          

      

      
      Price to be paid, or (c) by instructing the Corporation to withhold Shares otherwise issuable upon the exercise having an aggregate Fair Market Value on the exercise date equal
        to the aggregate Exercise Price to be paid or (d) by a combination thereof.  Payment for the Shares being purchased upon exercise of the Option may also be made by delivering a properly executed Exercise Notice to the Corporation, together with a
        copy of irrevocable instructions to a broker to deliver promptly to the Corporation the amount of sale or loan proceeds to pay the aggregate Exercise Price and applicable tax withholding amounts (if any), in which event the Shares acquired shall be
        delivered to the broker promptly following receipt of payment.

      
        	
                4.

              	
                Related Awards:  These NQSOs are not related to any other Award under the Plan.

              

      

      
        	
                5.

              	
                Transferability.  The Option Holder may not sell, assign, transfer, pledge or otherwise
                    encumber any NQSOs, except in the event of the Option Holder’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order.  The Committee, in its sole and absolute discretion, may allow the
                    Option Holder to transfer one or more NQSOs to the Option Holder’s Family Members, as provided in the Plan.

              

      

      
        	
                6.

              	
                Termination of Service.  If the Option
                    Holder terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the Option Holder, any NQSOs that have not vested as of the date of that termination shall be forfeited to the
                    Corporation, and the Exercise Period of any vested NQSOs shall expire three months after that termination of Service (but in no event after the Expiration Date), except where that termination of Service is due to Retirement, in which
                    case the Exercise Period of any vested NQSOs shall expire one year after that termination of Service (but in no event after the Expiration Date), or in the case of a Termination for Cause, in which case all NQSOs held by the Option
                    Holder shall expire immediately.  If the Option Holder’s Service terminates on account of the Option Holder’s death or Disability, the Vesting Date for all NQSOs that have not vested or been forfeited shall be accelerated to the date of
                    that termination of Service, and the Exercise Period of all NQSOs shall expire one year after that termination of Service (but in no event after the Expiration Date). [Post-termination

                      exercise period may be modified at Committee’s election except with respect to a Termination for Cause.]

              

      

      
        	
                7.

              	
                Effect of Change in Control.  In accordance with Plan Section 5.5(b)(iii), if a Change in
                    Control occurs and the Participant experiences an Involuntary Separation from Service other than a Termination for Cause during the 365-day period following the date of such Change in Control, then the Vesting Date for any non-vested
                    NQSO will be accelerated to the date of the Participant’s Involuntary Separation from Service (unless the acquirer does not assume the outstanding NQSOs or replaces them with a benefit that the Committee determines to be of equivalent
                    value, in which case any nonvested NQSOs will be become vested upon the effective date of the Change in Control).

              

      

      
        	
                8.

              	
                Option Holder’s Rights.  The NQSOs awarded hereby do not entitle the Option Holder to any
                    rights of a stockholder of the Corporation.

              

      

       

         

       

         

      
        2

        
          

      

      
        

        	
                9.

              	
                Delivery of Shares to Option Holder.  Promptly after receipt of an Exercise Notice and full
                    payment of the Exercise Price for the Shares being acquired, the Corporation shall issue and deliver to the Option Holder (or other person validly exercising the NQSO) a certificate or certificates representing the Shares of Common
                    Stock being purchased, or evidence of the issuance of such Shares in book-entry form, registered in the name of the Option Holder (or such other person), or, upon request, in the name of the Option Holder (or such other person) and in
                    the name of another person in such form of joint ownership as requested by the Option Holder (or such other person) pursuant to applicable state law.  The Corporation’s obligation to deliver a stock certificate or evidence of the
                    issuance of Shares in book-entry form for Shares purchased upon the exercise of an NQSO can be conditioned upon the receipt of a representation of investment intent from the Option Holder (or the Option Holder’s Beneficiary) in such
                    form as the Committee requires.  The Corporation shall not be required to deliver stock certificates or evidence of the issuance of Shares in book-entry form for Shares purchased prior to: (a) the listing of those Shares on the Nasdaq;
                    or (b) the completion of any registration or qualification of those Shares required under applicable law.

              

        
          	
                  10.

                	
                  Adjustments in Shares.  In the event of any recapitalization, forward or reverse stock
                      split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate
                      transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by the NQSOs or the Exercise Price of the NQSOs.  The Option Holder agrees to execute any
                      documents required by the Committee in connection with an adjustment under this Section 10.

                

        

        
          	
                  11.

                	
                  Tax Withholding.  The Corporation shall have the right to require the Option Holder to pay
                      to the Corporation the amount of any tax that the Corporation is required to withhold with respect to such Shares, or in lieu thereof, to retain or sell without notice, a sufficient number of Shares to cover the minimum amount
                      required to be withheld , provided, however, that (a) no Shares are withheld with a value exceeding the maximum amount of
                        tax that may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of the NQSO as a liability for financial accounting purposes), and (b) with respect to an NQSO held by any
                        Participant who is subject to the filing requirements of Section 16 of the Exchange Act, any such share withholding must be specifically approved by the Compensation Committee as the applicable method that must be used to satisfy
                        the tax withholding obligation or such share withholding procedure must otherwise satisfy the requirements for an exempt transaction under Section 16(b) of the Exchange Act.  The Corporation shall have the right to deduct
                      from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.

                

        

        
          	
                  12.

                	
                  Plan and Committee Decisions are Controlling.  This Agreement, the award of NQSOs to the
                      Option Holder and the issuance of Shares upon the exercise of the NQSOs are subject in all respects to the provisions of the Plan, which are controlling.  Capitalized terms herein not defined in this Agreement shall have the meaning
                      ascribed to them in the Plan.  All decisions, determinations and interpretations by the Committee respecting the 

                     

                

        

         

           

         

           

        
          3

          
            

        

         

      

      
        
          	
                  

                     

                	
                  Plan, this Agreement, the award of NQSOs or the issuance of Shares upon the exercise of the NQSOs shall be binding and conclusive upon the Option Holder, any Beneficiary of the Option
                    Holder or the legal representative thereof.

                

        

        
          	
                  13.

                	
                  Option Holder’s Employment.  Nothing in this Agreement shall limit the
                      right of the Corporation or any of its Affiliates to terminate the Option Holder’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose upon the Corporation or any of its
                      Affiliates any obligation to employ or accept the services or employment of the Option Holder.

                

        

        
          	
                  14.

                	
                  Amendment.  The Committee may waive any conditions of or rights of the
                      Corporation or modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the Option
                      Holder without the Option Holder’s written consent.  To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the Option Holder, to
                      accelerate the vesting of the Shares or remove any other restrictions imposed on the Option Holder with respect to the Shares, whenever the Committee may determine that such action is appropriate.

                

        

        
          	
                  15.

                	
                  Option Holder Acceptance.  The Option Holder shall signify acceptance of
                      the terms and conditions of this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.

                

        

      

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

      
        	
                 

              	
                
                  TIMBERLAND BANCORP, INC.

                  

                  

                  

                  

                  By ________________________________

                  Its ________________________________

                  

                  

                  ACCEPTED BY OPTION HOLDER

                  ___________________________________

                  (Signature)

                  

                  

                  ___________________________________

                  (Print Name)

                  

                  

                  ___________________________________

                  (Street Address)

                  ___________________________________

                  (City, State and Zip Code)

                   

              

      

      

    

  

  4Exhibit 10.4

  

   

    

  
    
      

      

      TIMBERLAND BANCORP, INC.

      2019 EQUITY INCENTIVE PLAN

      RESTRICTED STOCK AWARD AGREEMENT

      

      

      
        	
                 RS No. _______________

              	
                Grant Date: _______________ 

                

              

      

       

      

      

      

      This Restricted Stock Award (“Restricted Stock Award”) is granted by Timberland Bancorp, Inc. (“Corporation”) to _________________ (“Grantee”) in accordance with the terms of this Restricted Stock Award Agreement
        (“Agreement”) and subject to the provisions of the Timberland Bancorp, Inc. 2019 Equity Incentive Plan, as amended from time to time (“Plan”).  The Plan is incorporated herein by reference.

      

      

      
        	
                1.

              	
                Restricted Stock Award.  The Corporation makes this Restricted Stock Award of _________
                    Shares to Grantee [in exchange for a payment of $________].  These Shares are subject to forfeiture and to limits on transferability until they vest, as provided in Sections
                    2, 3, 4 and 5 of this Agreement and in Article VI of the Plan.

              

      

      
        	
                2.

              	
                Vesting Dates:  The Shares shall vest as follows, subject to Sections 4 and 5:

              

      

       
        	
                 Vesting Date 

                  

              	
                 Number of Shares Vesting

              

      

      
        	
                3.

              	
                Transferability.  The Grantee may not sell, assign, transfer, pledge or otherwise encumber
                    any Shares that have not vested, except in the event of the Grantee’s death, by will or by the laws of descent and distribution or pursuant to a Domestic Relations Order.  The Committee, in its sole and absolute discretion, may allow
                    the Grantee to transfer all or any portion of this Restricted Stock Award to the Grantee’s Family Members, as provided in the Plan.

              

      

      
        	
                4.

              	
                Termination of Service.  If the Grantee
                    terminates Service for any reason other than in connection with a Change in Control or the death or Disability of the Grantee, any Shares that have not vested as of the date of that termination shall be forfeited to the Corporation.  If
                    the Grantee’s Service terminates on account of the Grantee’s death or Disability, the Vesting Date for all Shares that have not vested or been forfeited shall be accelerated to the date of that termination of Service.

              

      

      
        	
                5.

              	
                Effect of Change in Control.  In accordance with Plan Section 6.2(b)(iii), if a Change in
                    Control occurs and the Participant experiences an Involuntary Separation from Service other than a Termination for Cause during the 365-day period following the date of such Change in Control, then the Vesting Date for any non-vested
                    Shares will become vested on the date of the Participant’s Involuntary Separation from Service (unless the acquirer does not assume the outstanding Shares or replaces them with a benefit that the 

                   

              

      

      

      

      
        
          

      

      
      
        

        	
                

                   

              	
                Committee determines to be of equivalent value, in which case any nonvested Shares will be become vested upon the effective date of the Change in Control).

              

        
          	
                  6.

                	
                  Stock Power.  The Grantee agrees to execute a stock power with respect to each stock
                      certificate reflecting the Shares, or other evidence of book-entry stock ownership, in favor of the Corporation.  The Shares shall not be issued by the Corporation until the required stock powers are delivered to the Corporation.

                

        

        
          	
                  7.

                	
                  Delivery of Shares.  The Corporation shall issue stock certificates or evidence of the
                      issuance of such Shares in book-entry form, in the name of the Grantee reflecting the Shares vesting on each Vesting Date in Section 2.  The Corporation shall retain these certificates or evidence of the issuance of Shares in
                      book-entry form until the Shares represented thereby become vested.  Prior to vesting, the Shares shall be subject to the following restriction, communicated in writing to the Corporation’s stock transfer agent:

                

        

        These shares of common stock are subject to the terms of an Award Agreement between Timberland Bancorp, Inc. and [name] dated [grant

            date] made pursuant to the terms of the Timberland Bancorp, Inc. 2019 Equity Incentive Plan, copies of which are on file at the executive offices of
          Timberland Bancorp, Inc., and may not be sold, encumbered, hypothecated or otherwise transferred except in accordance with the terms of such Plan and Award Agreement.

        
          	
                  8.

                	
                  Grantee’s Rights Regarding Dividends and Voting.  Any dividends declared and paid with
                      respect to Shares that are subject to this Agreement shall be held by the Company on behalf of the Grantee until the Grantee vests in those Shares, as provided for in the Plan.  If the Grantee vests in Shares, then the held dividends
                      related to those Shares shall be paid to the Grantee or the Grantee’s Beneficiary in a lump sum, without interest, within thirty (30) days following the applicable Vesting Date.  If the Grantee does not vest in Shares, then the
                      Grantee shall immediately forfeit his or her interest in the held dividends related to those Shares. The Grantee may exercise all voting rights appurtenant to the Shares.

                

        

        
          	
                  9.

                	
                  Delivery of Shares to Grantee.  Upon the vesting of any Shares, the restrictions in
                      Sections 3 and 4 shall terminate, and the Corporation shall deliver only to the Grantee (or, if applicable, the Grantee’s Beneficiary, estate or Family Member) a certificate (without the legend referenced in Section 7) or evidence of
                      the issuance of Shares in book-entry form, and the related stock power in respect of the vesting Shares.  The Corporation’s obligation to deliver a stock certificate for vested Shares, or evidence of the issuance of Shares in
                      book-entry form, can be conditioned upon the receipt of a representation of investment intent from the Grantee (or the Grantee’s Beneficiary, estate or Family Member) in such form as the Committee requires.  The Corporation shall not
                      be required to deliver stock certificates for vested Shares, or evidence of the issuance of Shares in book-entry form, prior to: (a) the listing of those Shares on the Nasdaq; or (b) the completion of any registration or qualification
                      of those Shares required under applicable law.

                

        

         

           

        
          2

          
            

        

        

        

        
          
            	
                    10.

                  	
                    Adjustments in Shares.  In the event of any recapitalization, forward or reverse stock
                        split, reorganization, merger, consolidation, spin-off, combination, exchange of Shares or other securities, stock dividend, special or recurring dividend or distribution, liquidation, dissolution or other similar corporate
                        transaction or event, the Committee, in its sole discretion, shall adjust the number of Shares or class of securities of the Corporation covered by this Agreement.  Any additional Shares or other securities received by the Grantee
                        as a result of any such adjustment shall be subject to all restrictions and requirements applicable to Shares that have not vested.  The Grantee agrees to execute any documents required by the Committee in connection with an
                        adjustment under this Section 10.

                  

          

          
            	
                    11.

                  	
                    Tax Election.  The Grantee understands that an election
                          may be made under Section 83(b) of the Code to accelerate the Grantee’s tax obligation with respect to receipt of the Shares from the Vesting Dates to the Grant Date by timely submitting an election to the Internal Revenue Service
                          substantially in the form attached hereto (or in accordance with the Internal Revenue Service rules in effect at the time the election is made, e.g., electronically).  This election shall not accelerate when dividends related to
                          those Shares will be paid.

                  

          

          
            	
                    12.

                  	
                    Tax Withholding.  The Corporation shall have the right to require the Grantee to pay to
                        the Corporation the amount of any tax that the Corporation is required to withhold with respect to such Shares, or in lieu thereof, to retain or sell without notice, a sufficient number of Shares to cover the minimum amount required
                        to be withheld, provided, however, that (a) no Shares are withheld with a value exceeding the maximum amount of tax that
                          may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of the Restricted Stock Award as a liability for financial accounting purposes), and (b) with respect to a
                          Restricted Stock Award held by any Participant who is subject to the filing requirements of Section 16 of the Exchange Act, any such share withholding must be specifically approved by the Compensation Committee as the applicable
                          method that must be used to satisfy the tax withholding obligation or such share withholding procedure must otherwise satisfy the requirements for an exempt transaction under Section 16(b) of the Exchange Act.  The
                        Corporation shall have the right to deduct from all dividends paid with respect to the Shares the amount of any taxes that the Corporation is required to withhold with respect to such dividend payments.

                  

          

          
            	
                    13.

                  	
                    Plan and Committee Decisions are Controlling.  This Agreement and the award of Shares to
                        the Grantee are subject in all respects to the provisions of the Plan, which are controlling.  Capitalized terms herein not defined in this Agreement shall have the meaning ascribed to them in the Plan.  All decisions,
                        determinations and interpretations by the Committee respecting the Plan, this Agreement or the award of Shares shall be binding and conclusive upon the Grantee, any Beneficiary of the Grantee or the legal representative thereof.

                  

          

          
            	
                    14.

                  	
                    Grantee’s Employment.  Nothing in this Agreement shall limit the right of the Corporation
                        or any of its Affiliates to terminate the Grantee’s service or employment as a director, advisory director, director emeritus, officer or employee, or otherwise impose 

                       

                  

          

           

             

          
            3

            
              

          

               

          

          	
                  

                     

                	
                  upon the Corporation or any of its Affiliates any obligation to employ or accept the services or employment of the Grantee.

                

          
            	
                    15.

                  	
                    Amendment.  The Committee may waive any conditions of or rights of the Corporation or
                        modify or amend the terms of this Agreement; provided, however, that the Committee may not amend, alter, suspend, discontinue or terminate any provision of this Agreement if such action may adversely affect the Grantee without the
                        Grantee’s written consent.  To the extent permitted by applicable laws and regulations, the Committee shall have the authority, in its sole discretion but with the permission of the Grantee, to accelerate the vesting of the Shares
                        or remove any other restrictions imposed on the Grantee with respect to the Shares, whenever the Committee may determine that such action is appropriate.

                  

          

          
            	
                    16.

                  	
                    Grantee Acceptance.  The Grantee shall signify acceptance of the terms and conditions of
                        this Agreement and acknowledge receipt of a copy of the Plan by signing in the space provided below and returning the signed copy to the Corporation.

                  

          

        

      

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

       

         

      
        	
                 

              	
                
                  TIMBERLAND BANCORP, INC.

                  

                  

                  

                  

                  By ________________________________

                  Its ________________________________

                  

                  

                  

                  

                  ACCEPTED BY GRANTEE

                  ___________________________________

                  (Signature)

                  

                  

                  ___________________________________

                  (Print Name)

                  

                  

                  ___________________________________

                  (Street Address)

                  ___________________________________

                  (City, State and Zip Code)

                   

              

      

      

      

      

      
        4

        
          

      

      STOCK POWER

      

      

      (One stock power for each stock certificate or grant in book-entry form issued)

      

      

      

      

      For value received, I hereby sell, assign, and transfer to Timberland Bancorp, Inc. (the “Corporation”) ____________ shares of the capital stock of the Corporation, standing in my name on the books and records of the aforesaid Corporation,
        represented by Certificate No. ____________________ or otherwise identified in book-entry form as ___________________, and do hereby irrevocably constitute and appoint the Secretary of the Corporation as attorney-in-fact, with full power of
        substitution, to transfer this stock on the books and records of the aforesaid Corporation.

       

         

      
        	
                 

              	
                
                  ________________________________ 

                

              

      

      

      

      

      Dated:

      

      

      ________________________

      

      

      In the presence of:

      

      

      ________________________

      
        
          

      

       83(b) ELECTION FORM

      

      

      

      

      

      

      TO:      Internal Revenue Service Center

                   [Address where the employee files his or her personal income tax return]
      

      

      

      

      ELECTION UNDER SECTION 83(b)

      OF THE INTERNAL REVENUE CODE OF 1986

       

         

      
        	
                Name:  

                

              	
                __________________________________________________________________ 

                

              
	
                Address:  

                

              	
                __________________________________________________________________ 

                

              
	
                 

              	
                __________________________________________________________________ 

                

              
	
                 

              	
                __________________________________________________________________ 

                

              

      

      

      Social Security Number ____ - __ - ____

      

      

      Property with respect to which this Election is made: _______ shares of the common stock of Timberland Bancorp, Inc.

      

      

      Date of Grant or Transfer: ____________, _____.

      

      

      Taxable Year for which Election is made:  Calendar Year _____.

      

      

      Nature of the Restrictions to which the Property is Subject:  (i) a vesting schedule pursuant to which the taxpayer will not be fully vested in the property until ___________.

      

      

      Fair Market Value of the Property upon receipt by taxpayer $___________.

      

      

      Amount Paid for the Property: ____________.

      

      

      Copies of this Election have been furnished to ___________________________.

      

      

      A copy of this Election also shall be attached to my IRS Form 1040 for calendar year _____.

      

      

      

      

      
        	
                __________ 

                

              	
                
                  _____________________________________ 

                

              	
                 

              
	Date  

              	Signature

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