Document:

EXHIBIT 10.5

  

  

  

  

  

  
    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, subject to any required
      tax withholding.  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.

    

    
      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.

              

      

    

    
      
        	

              	11.5	
                This Restricted Stock Award is subject to required federal, state and local tax withholding, which may be effected in the manner or manners permitted by the Company.

              

      

    

    

    

    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

     

    

    _______________________________

    

     

    

    

    

     

    

    

    

  

  4EXHIBIT 10.6

  

  

  

  

  

  
    

    

    

    

    

    

    FORM OF

    

    

    Restricted Stock Unit Award Agreement

    (time-based vesting)

    

    

    Granted by

    

    

    TERRITORIAL BANCORP INC.

    

    

    under the

    

    

    TERRITORIAL BANCORP INC.

    2019 EQUITY INCENTIVE PLAN

    

    

    This restricted stock unit agreement (“Restricted Stock Unit Award Agreement” or “Award Agreement”) is and shall be subject in every respect to the provisions of the Territorial Bancorp Inc. 2019 Equity Incentive Plan (the “Plan”), which are incorporated herein
      by reference and made a part hereof, subject to the provisions of this Award Agreement.  A copy of the Plan has been provided to the person granted a 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 Award Agreement, and agrees that all decisions under and interpretations of the
      Plan and this Award Agreement by the Committee appointed to administer the Plan (“Committee”) or the Board of Directors of Territorial Bancorp Inc. (the “Company”) shall
      be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns. Capitalized terms used in this Award Agreement but not defined in this Award Agreement shall have the same
      meaning as in the Plan.

    For valuable consideration, the Company does hereby grant to the Participant a Restricted Stock Unit Award for the number of restricted stock units (the “Restricted Stock Units”) as set forth below, effective on the Date of Grant set forth below. The Restricted Stock Units shall vest and become payable in shares of Stock of the Company (the “Shares”) according to the vesting schedule described below, subject to earlier expiration or termination of the Restricted Stock Units, as provided in this Award Agreement.

    

    

    Name of Participant: ________________________ 

      

    Date of Grant:______________________________     

      

    Total number of Restricted Stock Units: ________

      

    

    
      
        

    

    Vesting Schedule:

    1.   Form and Timing of Payment of Vested Units.

    

    

    1.1  This Restricted Stock Unit Award represents the right to receive one Share of common stock on the date the Restricted
      Stock Unit Award vests (the “Vesting Date”).  This Restricted Stock Unit Award will vest in approximately equal annual installments over a three (3) year period, commencing on the first anniversary of the Date of Grant and continuing on each annual
      anniversary thereafter.  No fractional Restricted Stock Units will vest.  Any fractional Restricted Stock Unit will roll over and shall vest on the next vesting date on which, when aggregated with all or part of another fractional Restricted Stock
      Unit, it comprises a whole Restricted Stock Unit.

    

    

    1.2  Subject to the other terms of this Awards Agreement and the terms of the Plan, any Restricted Stock Units that vest
      will be paid to the Participant solely in whole Shares of Stock (and not in cash, as the Plan permits), on, or as soon as practicable after, the Vesting Date or, if earlier, as provided in this Award Agreement, but in any event, within the period
      ending on the later to occur of the date that is two and one-half months from the end of (i) the Participant's tax year that includes the applicable vesting date or (ii) the Company's tax year that includes the applicable vesting date.

    

    

    2.   Dividend Equivalent Rights. Pending distribution or
        forfeiture of the Restricted Stock Units, the Participant’s bookkeeping account will be credited with Dividends Equivalent Rights with respect to all dividends declared on the shares underlying the Restricted Stock Units, regardless of whether the
        Restricted Stock Units are vested or unvested.

    3.   Termination of Service

      3.1 Termination of Service. Except as provided in Sections 3.2-3.6 below, the Restricted Stock Units subject to this Award Agreement shall immediately terminate and be
      automatically forfeited by the Participant to the Company upon the Participant’s Termination of Service for any reason, including without limitation, voluntary termination by the Participant.

    

    

      3.2 Death. Any unvested portion of 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.

      3.3 Involuntary Termination of Service. A portion of this Restricted Stock Unit Award shall vest immediately in the event of the
      Participant’s Involuntary Termination of Service, including for Good Reason.  The portion of the Restricted Stock Unit Award that vests upon an Involuntary Termination of Service shall equal the number of unvested Restricted Stock Units multiplied by
      a fraction, where the numerator equals the whole number of months that have elapsed since the last vesting date and the denominator equals the number of whole months from the last vesting date to the end of the 36 month vesting period.

      3.4 Disability.  Any unvested portion of this Restricted Stock Unit Award shall vest immediately in the event of the
      Participant’s Termination of Service by reason of the Participant’s Disability.

    
      
        

    

     3.5 Retirement. If the
      Participant’s Service terminates by reason of the Participant’s Retirement, the Participant’s unvested Restricted Stock Unit Awards shall continue to vest, provided that, at the request of the Company the Participant serves as a consultant to the
      Company following Retirement.   For purposes of this Award, Retirement means retirement from employment as an Employee on or after attainment of age 65.  An Employee who is also a Director shall not be deemed to have terminated due to Retirement
      until both Service as an Employee and Service as a Director have ceased.

     3.6 Change in Control. Any
      unvested portion of this Restricted Stock Unit Award shall vest immediately in the event of an Involuntary Termination of Service, including for Good Reason, following a Change in Control.  The portion of the
      Restricted Stock Unit Award that vests upon a Change in Control shall equal the number of unvested Restricted Stock Units at the time of an Involuntary Termination of Service, including for Good Reason, following the Change in Control.

    4.   Withholding. The Company shall collect federal, state and local income taxes and the employee portion of the FICA taxes (Social Security and Medicare) with respect to the Restricted
      Stock Units and any Dividend Equivalent Rights on such Restricted Stock Units paid to the Participant at the time those Restricted Stock Units vest.  Unless the Participant delivers a separate check payable to the Company in the amount of taxes
      required to be withheld from the Participant, the Company shall withhold those taxes from the Participant’s wages.  The Participant hereby authorizes the Company to satisfy the withholding obligations by one or a combination of the following: (a)
      withholding from the Participant’s wages or other cash compensation; (b) withholding from proceeds of the sale of Shares issued in settlement of the vested Restricted Stock Units, either through a voluntary sale or through a mandatory sale arranged
      by the Company (on the Participant’s behalf pursuant to this authorization), to the extent and in the manner permitted by all applicable securities laws, including making any necessary securities registration or taking any other necessary actions; or
      (c) withholding in Shares to be issued in settlement of the vested Restricted Stock Units that number of whole Shares the fair market value of which (determined by reference to the closing price of the common stock on the principal exchange on which
      the common stock trades on the date the withholding obligation arises, or if such date is not a trading date, on the next preceding trading date) is equal to the aggregate withholding obligation as determined by the Company and/or the Employer with
      respect to such Award.

    5.   Code Section 409A. The Restricted Stock Unit Award and payments made pursuant to this Award Agreement and the Plan are intended to qualify for an exemption from Code Section 409A.
      Notwithstanding any other provision in this Award Agreement and the Plan, the Company, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify this Award
      Agreement and/or the Plan so that the Restricted Stock Units granted to the Participant qualify for exemption from or comply with Code Section 409A; provided, however, that the Company makes no representations that the Restricted Stock Units shall be
      exempt from or comply with Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Restricted Stock Units. Nothing in this Award Agreement or the Plan shall provide a basis for any person to take action against
      the Company or any affiliate based on matters covered by Code Section 409A, including the tax treatment of any amount paid or payable or Award made under

    
      
        

    

    this Award Agreement, and neither the Company nor any of its affiliates shall under any circumstances have any liability to any Participant or his or her estate or any other party
      for any taxes, penalties or interest imposed under Code Section 409A for any amounts paid or payable under this Award Agreement.

    6.    Nature of Grant. In accepting the Restricted Stock Units, the Participant
      acknowledges that: (a) the Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time; (b) grant of the Restricted Stock Units is voluntary and
      occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units even if Restricted Stock Units have been granted repeatedly in the past; (c) all decisions
      with respect to future awards of Restricted Stock Units, if any, will be at the sole discretion of the Company; (d) the Participant’s participation in the Plan is voluntary; (e) Restricted Stock Units are extraordinary items that do not constitute
      regular compensation for services rendered to the Company or any Subsidiary, and that are outside the scope of the Participant’s employment contract, if any; (f) Restricted Stock Units and the Shares subject to Restricted Stock Units are not intended
      to replace any pension rights or compensation; (g) unless provided for elsewhere, Restricted Stock Units and the Shares subject to Restricted Stock Units are not part of normal or expected compensation or salary for any purposes, including, but not
      limited to, calculating any severance, resignation, redundancy or end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or
      relating in any way to, past services for the Company or any Subsidiary; (h) the award of Restricted Stock Units and the Participant’s participation in the Plan shall not be interpreted to form an employment contract or relationship with the Company
      or any Subsidiary; (i) the future value of the underlying Shares is unknown and cannot be predicted with certainty; (j) in consideration of the award of Restricted Stock Units, no claim or entitlement to compensation or damages shall arise from
      forfeiture of the Restricted Stock Units resulting from termination of employment with the Company or any Subsidiary (for any reason whatsoever and whether or not in breach of local labor laws), and the Participant irrevocably releases the Company
      and/or the Subsidiary from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant shall be deemed irrevocably to have waived his or her
      entitlement to pursue such claim; and (k) except as otherwise provided for in this Award Agreement or the Plan, in the event of involuntary termination of the Participant’s employment (whether or not in breach of local labor laws), the Participant’s
      right to receive Restricted Stock Units and vest under the Plan, if any, will terminate effective as of the date that the Participant’s Service is terminated and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law), and the Company shall have the exclusive discretion to determine when the Participant is no longer
      actively employed for purposes of this Award Agreement.

    7.   No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan,
      or the Participant’s acquisition or sale of the underlying Shares. The Participant is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any
      action related to the Plan.

    
      
        

    

    

    

    8.    Undertaking. The Participant hereby agrees to take whatever additional action and execute whatever additional
      documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either the Participant or the Restricted Stock Units pursuant to the provisions of this Award Agreement.

    9.    Restrictions on Transfer. Notwithstanding anything in the Plan to the contrary, the Restricted
      Stock Units granted pursuant to this Award may not be sold, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose), assigned, hypothecated, transferred, disposed of in exchange for
      consideration, made subject to attachment or similar proceedings, or otherwise disposed of under any circumstances.

    10.   Severability. The provisions of this Award Agreement are severable and if any one or more
      provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

    11.    No Rights as Shareholder. Except as provided in this Restricted Stock Award Agreement, the Participant will not have dividend, voting or any other rights as a shareholder of the Shares of common stock with respect to the Restricted Stock Units. Upon payment of the vested Restricted Stock Units in
      Shares of common stock, the Participant will obtain full dividend, voting and other rights as a shareholder of the Company.

    12.    Electronic Delivery. The Company may, in its sole discretion, decide to deliver any documents
      related to current or future participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and
      maintained by the Company or another third party designated by the Company.

    13.    Imposition of Other Requirements. The Company reserves the right to impose other requirements on
      the Participant’s participation in the Plan, on the Restricted Stock Units and on any Shares of common stock acquired under the Plan, to the extent that the Company determines it is necessary or advisable in order to comply with local law or
      facilitate the administration of the Plan, and to require the Participant to sign any additional agreements or undertakings (as provided in Section 6 above) that may be necessary to accomplish the foregoing.

    By the Participant's signature and the Company's signature below, the Participant and the Company agree that this grant is governed by this Award Agreement and the Plan.

    
      
        

    

    

    

    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.

    TERRITORIAL BANCORP INC.

    By:___________________________
        

      

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

    PARTICIPANT

      
      

      

      

      

      

      

      ______________________________________

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