Minnesota Restricted Stock Plan of Sundstrand Corp.

• Category: Corporations - Public - Incentive Compensation Plans
• State: Multi-State
• Control #: US-CC-20-171D
• Format: Word; Rich Text

Description

20-171D 20-171D . . . Restricted Stock Plan under which a committee of Board of Directors sells shares of common stock to certain officers and senior employees at a price substantially below current market price. The shares are subject to following restrictions: (a) prohibition against any sale or other transfer and (b) obligation that participant (at corporation's option) must resell shares to corporation at price he paid for them if he ceases to be employed by corporation prior to expiration of from five to nine years after shares were sold to him, for reasons other than normal retirement, death, total disability or early retirement with consent of Board or committee. Except as otherwise provided, restrictions lapse as to 1/5 of aggregate number of participant's shares at expiration or each of fifth through ninth years after his purchase of such shares

The Minnesota Restricted Stock Plan of Bandstand Corp. is a compensation program offered by the company to its employees based in Minnesota. This plan falls under the broader category of restricted stock plans, which are commonly used by companies to attract and retain talented employees by offering them ownership in the company. The main purpose of the Minnesota Restricted Stock Plan of Bandstand Corp. is to provide eligible employees with stock awards that are subject to certain restrictions. These restrictions typically involve a vesting schedule, which means that employees must stay with the company for a specific period of time to fully benefit from the stock award. This ensures that employees are motivated to remain with the company and contribute to its overall growth and success. The Minnesota Restricted Stock Plan may have different types or variations based on the specific terms and conditions set by Bandstand Corp. Some possible types or variations of the plan may include: 1. Performance-based restricted stock: In this type of plan, the vesting of stock awards is tied to achieving certain performance goals or targets set by the company. It incentivizes employees to actively contribute to the company's success by linking their stock awards to specific performance metrics. 2. Time-based restricted stock: This type of plan grants stock awards that vest over a specific period of time. For example, an employee may receive a certain percentage of the stock award each year for a predetermined number of years until the award fully vests. This encourages employee loyalty and long-term commitment to the company. 3. Market-based restricted stock: In this variation, the vesting of stock awards is tied to the company's stock performance in the market. Employees may receive their stock awards only if the company's stock price reaches a certain target or outperforms the stock market as a whole. This aligns the interests of employees with those of the company's shareholders. 4. Restricted stock units (RSS): Instead of actual stock ownership, RSS represent a promise to deliver a specific number of shares of stock in the future. This RSS generally vest over time or upon the satisfaction of certain conditions. Once the RSS vest, employees become entitled to receive the equivalent value of company stock. It is important to note that the specific details and terms of the Minnesota Restricted Stock Plan of Bandstand Corp. may vary. Employees are advised to consult the official plan documents and any applicable agreements to fully understand the conditions, restrictions, and benefits associated with their individual stock awards.