Nebraska Restricted Stock Plan and Trust Agreement of Home Federal Savings and Loan Assoc.

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• Control #: US-CC-18-202D
• Format: Word; Rich Text

Description

18-202D 18-202D . . . Restricted Stock Plan and Trust Agreement for federal savings and loan association ("corporation") under which (a) corporation will contribute funds to Restricted Stock Plan ("Plan") and Plan will (i) purchase common stock in open market or (ii) purchase authorized but unissued shares of common stock from corporation, and (b) committee of Board of Directors can grant Restricted Stock Awards to directors, officers and key employees, Twenty percent of such Awards are earned and become non-forfeitable on one-year anniversary of date of grant and an additional 20% are earned and become non-forfeitable annually thereafter; provided that recipient of Award remains an employee or director of corporation during such period. Dividends paid on Restricted Stock Awards are held in arrears and distributed on date such applicable Restricted Stock Awards are earned

Nebraska Restricted Stock Plan and Trust Agreement of Home Federal Savings and Loan Assoc. Is a financial arrangement developed by Home Federal Savings and Loan Association in Nebraska, designed to incentivize and reward employees with restricted stock options. This plan helps attract and retain talented individuals by granting them an opportunity to acquire shares in the company at a discounted rate. The Nebraska Restricted Stock Plan and Trust Agreement aims to align the interests of employees with the long-term success of Home Federal Savings and Loan Assoc. It provides employees with the opportunity to directly benefit from the appreciation of the company's stock value over time. This plan ensures that employees have a vested interest in the growth and profitability of the organization. Key features of the Nebraska Restricted Stock Plan and Trust Agreement include: 1. Restricted Stock Units (RSS): Under this plan, employees are granted restricted stock units, which represent a specified number of shares. These units are subject to a vesting schedule, meaning employees must fulfill certain conditions, such as remaining employed for a specified period, to gain ownership of the shares. 2. Vesting Schedule: The vesting schedule determines the timeframe within which employees become eligible to exercise their options. It can be based on years of service, performance goals, or a combination of both. The purpose of the vesting schedule is to encourage employee loyalty and continuous contributions to the company. 3. Trust Agreement: The Nebraska Restricted Stock Plan and Trust Agreement establishes a trust to hold the shares on behalf of the participants. The trust acts as a safeguard, ensuring the proper administration and distribution of the restricted stock units. 4. Employee Benefits: By participating in this plan, employees have the potential to increase their personal wealth as the value of the company's stock appreciates. This can be achieved through dividends, stock price appreciation, or the sale of shares at a later date. Different types of Nebraska Restricted Stock Plan and Trust Agreements offered by Home Federal Savings and Loan Assoc. May include customized variations depending on the specific needs and goals of the company. Some potential variations may involve performance-based RSS, where vesting is contingent on achieving predetermined financial or operational targets. Another type could be an open-market purchase plan, where employees are allowed to purchase additional shares using their own funds. Overall, the Nebraska Restricted Stock Plan and Trust Agreement of Home Federal Savings and Loan Assoc. Serves as a strategic tool for employee retention, motivation, and aligning their interests with the growth and success of the company. It provides employees with the opportunity to directly benefit from the appreciation of the organization's stock value, fostering a sense of ownership and commitment.