Document:

Restricted Stock Award

Granted by

Esquire Financial Holdings, Inc.

under the

ESQUIRE FINANCIAL HOLDINGS, INC.

2017 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 2017 Equity Incentive Plan (the "Plan") of Esquire Financial Holdings, 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 or made available 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.  Capitalized terms used herein but not defined will have the same meaning as in the Plan.  Any reference to the "Bank" herein shall refer to Esquire Bank, National Association, and any reference to "Employer" shall mean either or both the Company and the Bank.

1.  Name of Participant______________________________________________________

2.  Date of Grant: ___________, 20__

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.

	
Date

	
Vested Portion of Award

	
__________ __, 20 _  

	
__%

	
__________ __, 20 _

	
__%

	
__________ __, 20 _

	
__%

	
__________ __, 20 _

	
__%

	
__________ __, 20 _

	
__%

Vesting will automatically accelerate pursuant to Sections 2.9 and 4.1 of the Plan (in the event of death, Disability or Involuntary Termination at or 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	
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 the Restricted Stock vests.  No dividend will be paid with respect to any Restricted Stock Award subject to performance-based vesting conditions unless and until the Participant vests in such Restricted Stock Award.  Any stock dividends declared on shares of Stock subject to a Restricted Stock Award will be subject to the same restrictions and will vest at the same time as the shares of Restricted Stock from which said dividends were derived.

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 an Involuntary Termination at or following a Change in Control, all Restricted Stock Awards held by the Participant 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, 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)

	
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 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.

		 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 New York.

		 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]

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

ESQUIRE FINANCIAL HOLDINGS, 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 2017 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company's 2017 Equity Incentive Plan.

PARTICIPANT

 

________________________________FORM OF

 

 

Restricted Stock Unit Award

Granted by

Esquire Financial Holdings, Inc.

under the

ESQUIRE FINANCIAL HOLDINGS, INC.

2017 EQUITY INCENTIVE PLAN

This restricted stock unit agreement ("Agreement") is and will be subject in every respect to the provisions of the 2017 Equity Incentive Plan (the "Plan") of Esquire Financial Holdings, 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 unit award ("Restricted Stock Unit" or "Restricted Stock Unit Award") pursuant to the Plan.  The holder of this Restricted Stock Unit Award (the "Participant") hereby accepts this Restricted Stock Unit 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 shall be final, binding and conclusive upon the Participant and the Participant's heirs, legal representatives, successors and permitted assigns.  Capitalized terms used herein but not defined shall have the same meaning as in the Plan.

1.  Name of Participant:  

2.     Date of Grant:                                         , 20___

3.     Total number of Restricted Stock Units covered by the Award: _______________________

    (subject to adjustment pursuant to Section 8 hereof).

4. Vesting Schedule.  The Restricted Stock Units granted under the Plan shall vest in (      ) equal annual installments, in accordance with the following schedule.

	
 

Date

	
 

Vested Portion of Award

	 	 
	 	 
	 	 
	 	 

Notwithstanding the foregoing, fractional shares shall not vest.  If a fractional share would otherwise vest on the vesting date, the fractional share will roll over to the next vesting date or the succeeding vesting date until a whole share can vest and be distributed.  Vesting will automatically accelerate as set forth in Sections 9.1 and 9.2 of this Agreement.

5.    Grant of Restricted Stock Units.

 Restricted Stock Unit is an Award denominated in shares of Stock, except that no share of Stock is actually awarded to the recipient on the date of grant.  The Restricted Stock Units will be credited to the Participant's account, subject to the terms of the Plan and this Agreement.  A Restricted Stock Unit will be settled in shares of Stock, provided, however, that in the sole discretion of the Committee, determined at the time of settlement, a Restricted Stock Unit may be settled in cash or a combination of cash and shares of Stock, based on the Fair Market Value of a specified number of shares of Stock.

6.    Terms and Conditions.

 

Unless the Committee determines otherwise, no dividends or Dividend Equivalent Rights will be paid on Restricted Stock Units.  Any such Dividend Equivalent Rights shall not be payable until the Restricted Stock Unit vests or is settled. The Participant will have no voting right with respect to any Restricted Stock Unit granted hereunder.

7.    Change in Control.

 

		7.1	
In the event of an Involuntary Termination (as defined in Section 8.1(x))  following a Change in Control, all Restricted Stock Unit Awards held by the Participant will become fully earned and vested immediately, as set forth in Section 4.1 of the Plan.  In the event of a Change in Control, any performance measure attached to an Award under the Plan will be deemed satisfied as of the date of the Change in Control.

		7.2	
A "Change in Control" shall be deemed to have occurred as provided in Section 4.2 of the Plan.

8.    Adjustment Provisions.

		8.1	
This Restricted Stock Unit Award shall be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of, Section 3.4 of the Plan.

9.    Effect of Termination of Service on Restricted Stock Unit Award.

This Restricted Stock Unit Award shall vest as follows:

9.1   Death.  This Restricted Stock Unit Award shall vest immediately in the event of the Participant's Termination of Service by reason of the Participant's death.

		9.2	
Disability.  In the event of the Participant's Termination of Service by reason of Disability, this Restricted Stock Unit Award shall vest at the date of Termination of Service. Except to the extent prohibited by Code Section 409A, the Committee shall have sole authority and discretion to determine whether the Participant's Service has been terminated by reason of Disability.

	
 

 

	9.3	
Retirement.  If the Participant's Service terminates by reason of the Participant's Retirement, all Restricted Stock Units granted to the Participant that have not vested at the time of Retirement shall expire and be forfeited.  The term "Retirement" shall  have the meaning set forth in the Plan.

 

Notwithstanding the foregoing, if set forth in the Committee's grant resolutions and noted by checking the box below, Restricted Stock Units that are granted as Performance Awards intended to qualify as performance-based compensation under Code Section 162(m) shall vest in accordance with the "performance-based vesting rule," set forth in Section 2.5(c) of the Plan, as follows:  vesting shall not be accelerated to the Retirement date, but at the end of the performance period, the Participant may vest in a portion of the remaining Award on a pro rata basis by multiplying the number of Restricted Stock Units eligible for vesting by the following factors: (i) the percentage of the performance achieved and (ii) the percentage of the performance period that the Participant served prior to Retirement.

		c	
Performance-based vesting rule applies

		9.4	
Termination for Cause.  If the Participant's Service has been terminated for Cause, all Restricted Stock granted to the Participant that has not vested shall expire and be forfeited.  The Board of Directors shall have sole authority and discretion to determine whether the Participant's employment has been terminated for Cause.

		9.5	
Other Termination.  If the Participant's Service terminates for any reason other than death, Disability, Retirement or for Cause, all shares of  Restricted Stock Unit Awarded to the Participant which have not vested shall expire and be forfeited by such Participant.

10.     Miscellaneous.

		10.1	
No Restricted Stock Unit Award shall 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.

		10.2	
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

		10.3	
Restricted Stock Unit Awards are not transferable prior to the time such Awards  are vested in and distributed to the Participant.

		10.4	
This Restricted Stock Unit Award will be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflicts of laws, except as superseded by federal law.

		10.5	
This Restricted Stock Unit 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.

		10.6	
The granting of this Restricted Stock Unit Award does not confer upon the Participant any right to be retained in the employ of the Company or any subsidiary.

[Signature Page Follows]

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 Unit Award set forth above.

ESQUIRE FINANCIAL HOLDINGS, INC.

By:_______________________________

Title: _____________________________

PARTICIPANT'S ACCEPTANCE

The undersigned hereby accepts the foregoing Restricted Stock Unit Award and agrees to the terms and conditions hereof, including the terms and provisions of the 2017 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company's 2017 Equity Incentive Plan.

Participant

__________________________________

EXHIBIT A

SETTLEMENT OF RESTRICTED STOCK UNIT AWARD

I hereby acknowledge the delivery to me by Esquire Financial Holdings, Inc. (the "Company") or its affiliate on _____________________________, of

q stock certificates for ____________________ shares of common stock of the Company in settlement of the Restricted Stock Unit Award granted to me under the Esquire Financial Holdings, Inc. 2017 Equity Incentive Plan,  which shares were transferred to me on the Company's stock record books on ____________________; or

q [In the sole discretion of the Committee], cash in the amount of $__________________ in settlement of the Restricted Stock Unit Award granted to me under the Esquire Financial Holdings, Inc. 2017 Equity Incentive Plan.

Date:           _______________________

 Participant's signature

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