Document:

EXHIBIT 10.3

  

  

  

  

  

  
    FORM OF

    

    

    Stock Option

    

    

    Granted by

    

    

    TERRITORIAL BANCORP INC.

    

    

    under the

    

    

    TERRITORIAL BANCORP INC.

    2019 EQUITY INCENTIVE PLAN

    

    

    This stock option agreement (“Option” or “Agreement”) is and will be subject in
      every respect to the provisions of the 2019 Equity Incentive Plan (the “Plan”) of Territorial Bancorp 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 and Plan prospectus has been provided to each person granted a stock option pursuant to the Plan.  The holder of this Option (the “Participant”)
      hereby accepts this Option, 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 of Directors will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Capitalized terms used in this
      Agreement but not defined will have the same meaning as in the Plan.

    1.   Name of
          Participant:  ______________________________

    2.   Date of Grant: 
          ___________________________________

    3.   Exercise Price
        per Share: $__________

    
      
        4.   Total number of shares of Company common stock, $0.01 par value per share, that may be acquired pursuant to this Option:

      

    

    
      
        • This is a Non-Qualified Stock Option

      

    

    
      
        5.    Expiration Date of Option:  _________________,
            subject to earlier expiration due to Termination of Service.  This Option may not be exercised at any time on or after the Option’s expiration date. 

      

    

    
      
        
          6.      Vesting Schedule.  Unless sooner vested in accordance with the terms of
            this Award Agreement, the Options granted hereunder shall vest (i.e., become exercisable) in accordance with the following:

        

      

    

    	
             

            Percentage of

            Option Vested

          	
             

            Number of Shares Available for Exercise

          	
             

             

            Vesting Date

          
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

    
      
        	

              	

              

      

    

     

        

    
      
        

    

    
     7.          Exercise Procedure. This Option will be exercised in whole or in part by the Participant’s
        delivery to the Company of written notice (the “Notice of

           Exercise of Option” attached hereto as Exhibit A) setting forth the number of shares with respect to which this Option is to be exercised, together 

         with payment by cash or other means acceptable to the
        Committee and subject to any required federal, state or local tax withholding.

     

      

    8.   Delivery of
        Shares.

    

    

    
      
        	

              	8.1	
                Delivery of Shares.  Delivery of shares of Common Stock upon the exercise of this Option will comply with all applicable laws (including the requirements of the
                  Securities Act) and the applicable requirements of any securities exchange or similar entity.

              

      

    

    

    

    9.   Change in Control.

    

    

    
      
        	

              	9.1	
                In the event of the Participant’s Involuntary Termination following a Change in Control, all Options held by the Participant, whether or not exercisable at such time, will become fully exercisable for a period
                  of one year following the Involuntary Termination of Service, subject to the expiration provisions otherwise applicable to the Option.

              

      

    

    

    

    
      
        	

              	9.2	
                A “Change in Control” will be deemed to have occurred as provided in Section 4.2 of the Plan.

              

      

    

    

    

    10.  Adjustment Provisions.

    

    

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

    11.  Termination of Option and Accelerated Vesting.

    This Option will terminate upon the expiration date, except as set forth in the following  provisions:

    
      
        	

              	11.1	
                Death.  In the event of the Participant’s Termination of Service by reason of the Participant’s death, any Options that would otherwise have vested under this Award will
                  vest, if not already vested.  This Option may thereafter be exercised by the Participant’s legal representative or beneficiaries for a period of one year following Termination of Service due to death or the remaining unexpired term of the
                  Option, if less.

              

      

    

    
      
        	

              	11.2	
                Disability.  In the event of the Participant’s Termination of Service by reason of the Participant’s Disability, any Options that would otherwise have vested under this
                  Award will vest, if not already vested.  This Option may thereafter be exercised for a period of one year following Termination of Service due to Disability or the remaining unexpired term of the Option, if less.

              

      

    

    
      
        	

              	11.3	
                Retirement.  If the Participant’s Service terminates due to Retirement, this Option may thereafter be exercised, to the extent it was exercisable at the time of such
                  termination, for a period of one year following Termination of Service due to Retirement or the remaining unexpired term of the Option, if less.  All unvested Options will be forfeited. For purposes of the Plan and this Agreement,
                  “Service” shall include service as a non-employee Director of the Company or a Subsidiary, as the case may be, and shall include service as a director emeritus or advisory director.

              

      

    

    

    

    
      
        	

              	11.4	
                Termination for Cause.  In the event of the Participant’s Termination of Service for Cause, all Options that have not been
                  exercised will expire and be forfeited.

              

      

    

    

    

    
      
        	

              	11.5	
                Other Termination.  In the event of the Participant’s Termination of Service for any reason other than due to death, Disability,
                  Retirement or for Cause, or an Involuntary Termination of Service upon a Change in Control, this Option may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of three months following
                  termination, subject to termination on the Option’s expiration date, if earlier.  All unvested Options will be forfeited.  For purposes of the Plan and this Agreement, “Service” shall include service as a non-employee Director of the
                  Company or a Subsidiary, as the case may be, and shall include service as a director emeritus or advisory director.

              

      

    

    

    

     

      

    
      2

      
        

    

    12.  Miscellaneous.

    

    

    
      
        	

              	12.1	
                No Option 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.

              

      

    

    

    

    
      
        	

              	12.2	
                This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

              

      

    

    

    

    
      
        	

              	12.3	
                In the discretion of the Committee, a Non-Qualified Stock Option granted under the Plan may be transferable by the Participant, provided, however, that such transfers will be limited to Immediate Family Members
                  of Participants, trusts and partnerships established for the primary benefit of such family members or to charitable organizations, and provided, further, that such transfers are not made for consideration to the Participant.

              

      

    

    

    

    
      
        	

              	12.4	
                This Option will be governed by and construed in accordance with the laws of the State of Hawaii.

              

      

    

    

    

    
      	
              12.5

            	
              The granting of this Option does not confer upon the Participant any right to be retained in the employ of the Company or any subsidiary.

            

    

    

    

    
      	
              12.6

            	
              This Stock Option Award, or any portion of this Award, is subject to forfeiture in accordance with the requirements of Section 7.17 of the Plan.

            

    

    

    

    
      3

      
        

    

    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 Option set forth above.

     TERITORIAL BANCORP INC.

     By: __________________________

    Its:___________________________

        

      

    

    

    PARTICIPANT’S ACCEPTANCE

    The undersigned hereby accepts the foregoing Option and agrees to the terms and conditions hereof, including the terms and provisions of the 2019 Equity
      Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2019 Equity Incentive Plan.

    PARTICIPANT

     

    

     

    

    _______________________________

    

    

    

    

    

     

    

    
      4

      
        

    

    EXHIBIT A

    

    

    NOTICE OF EXERCISE OF OPTION

      (BY EMPLOYEE)

    

    

    I hereby exercise the stock option (the “Option”) granted to me by Territorial Bancorp Inc. (the “Company”) or its affiliate, subject to all the terms and provisions set forth in the Stock Option
      Agreement (the “Agreement”) and the Territorial Bancorp Inc. 2019 Equity Incentive Plan (the “Plan”) referred to therein, and notify you of my desire to purchase __________________ shares of common stock of the Company (“Common Stock”) for a purchase
      price of $_______ per share.

    

    

    I wish to pay the purchase price by (check one or more, as applicable):

    [Any payment to be delivered must accompany this Notice of Exercise of Option]

    

    

    
      
        	

              	___	
                Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment of the purchase price.

              

      

    

    
      
        	

              	___	
                Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*

              

      

    

    
      
        	

              	___	
                A “net settlement” of the Option whereby I direct the Company to withhold a sufficient number of shares to satisfy the purchase price.  [  ]  Withhold a sufficient number of shares to pay minimum required taxes  [  ]  Calculate minimum
                  required withholding and I will submit payment.

              

      

    

    
      
        	

              	___	
                A check (personal, certified or cashier’s) in the sum of $_______ and stock of the Company with a fair market value of $______, in full payment of the purchase price.*

              

      

    

    
      
        	

              	___	
                Please sell ______ shares from my Option shares through my broker in full/partial payment of the purchase price.  If my broker requires additional forms in order to consummate this “broker cashless exercise,” I have included them with
                  this election.

              

      

    

    I understand that after this exercise, ____________ shares of Common Stock remain subject to the Option, subject to all terms and provisions set forth in the Agreement and the
      Plan.

    I hereby represent that it is my intention to acquire these shares for the following purpose:

    ___ investment

    ___ resale or distribution

    

    

    Please note: if your intention is to resell (or distribute within the meaning of Section 2(11) of the Securities Act of 1933) the shares you acquire through this Option exercise,
      the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate the Securities Act of 1933 prior to your exercise of such Option.

    Date: ____________, _____.                                       _________________________________________

    Participant’s signature

    

    

    * If I elect to exercise by exchanging shares I already own, I
      will constructively return shares that I already own to purchase the new option shares.  If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having been
      exchanged.  If the shares are held in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged.  I will keep the shares that I
      already own and treat them as if they are shares acquired by the option exercise.  In addition, I will receive additional shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.

  

  5EXHIBIT 10.4

  

   

    

   

    

  
    FORM OF

    

    

    Restricted Stock Award

    

    

    Granted by

    

    

    TERRITORIAL BANCORP INC.

    

    

    under the

    

    

    TERRITORIAL BANCORP INC.

    2019 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 2019 Equity Incentive Plan (the “Plan”) of Territorial Bancorp 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 and Plan prospectus 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 of Directors will be final,
      binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Capitalized terms used in this Agreement but not defined will have the same meaning as in the Plan.

    1.         Name of Participant: _______________________________ 

        

    

    

    2.         Date of Grant:_____________________________________ 

     

      

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

        

      

    

     

    

    
      
        4.         Vesting Schedule.  Except as otherwise
          provided in the Plan or this Agreement, this Restricted Stock Award will vest in accordance with the following

                     schedule:

      

    

    [vesting schedule]

    
      
        	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 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.  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 this Restricted Stock Award.

    
      
        	6.	
                Terms and Conditions.

              

      

    

    The Participant will have the right to vote the shares of Restricted Stock awarded pursuant to
      this Agreement.

    Any cash dividends or distributions declared with respect to shares of Stock subject to
      the Restricted Stock Award will be delayed and distributed to the Participant at the time that the Restricted Stock vests.  The Committee shall cause the dividend to be distributed to the Participant within 30 days following the date on which the
      Restricted Stock vests.  Any stock dividends declared and paid with respect to shares of Stock subject to the Restricted Stock Award will be issued subject to the same restrictions and the same vesting schedule as the underlying share of Stock on
      which the dividend was 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 following a Change in Control, all Restricted Stock subject to this Agreement will become fully vested.

              

      

    

    

    

    
      
        	

              	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, any shares of Restricted Stock that would otherwise have vested under
                this Award will vest, if not already vested.

               

              

            
	
              (ii)

            	
              Disability.  In the event of the Participant’s Termination of Service by reason of the Participant’s Disability, any shares of Restricted Stock that would otherwise have
                vested under this Award, if not already vested.

               

              

            
	
              (iii)

            	
              Termination for Cause.  If the event of the Participant’s Termination of Service for Cause, all Restricted Stock subject to this
                Agreement that has not vested will expire and be forfeited.

               

              

            
	
              (iv)

            	
              Other Termination.  If the event of the Participant’s Termination of Service for any reason other than due to death, Disability or
                for Cause, other than an Involuntary Termination of Service following a Change in Control, all shares of  Restricted Stock subject to this Agreement which have not vested as of the date of Termination of Service will expire and be
                forfeited.  For purposes of the Plan and this Agreement, “Service” means service as a non-employee Director of the Company or a Subsidiary, as the case may be, and shall include service as a director emeritus or advisory director.

            

    

    
      2

      
        

    

    11.          Miscellaneous.

    
      
        	

              	11.1	
                This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

              

      

    

    
      
        	

              	11.2	
                A Restricted Stock Award is not transferable prior to the time the Award vests in the Participant.

              

      

    

    
      
        	

              	11.3	
                This Restricted Stock Award will be governed by and construed in accordance with the laws of the State of Hawaii.

              

      

    

    
      
        	

              	11.4	
                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.

              

      

    

    

    

    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.

    TERRITORIAL BANCORP INC.

     By:
        ___________________________

    Its:___________________________ 

      

    

    

    
      3

      
        

    

    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 Plan.  The undersigned hereby acknowledges receipt of a copy of the Plan and the Plan Prospectus.

    PARTICIPANT

     

    

     _______________________________

    

    

    

     

    

    

    

     

  4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]