New Mexico 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 New Mexico Restricted Stock Plan of Bandstand Corp., also known as the MRS Plan, is an employee benefit program designed to incentivize and reward eligible employees by providing them with restricted stock units (RSS). This RSS represents a form of equity ownership in the company and are subject to various conditions and restrictions outlined in the plan. Under the MRS Plan, eligible employees are granted a specific number of RSS, which typically vest over a predetermined period of time. Vesting refers to the process by which the employee gains ownership of the RSS and is able to sell or transfer them. The vesting schedule is typically established by Bandstand Corp., and may be based on factors such as years of service, performance targets, or a combination of both. Once the RSS have vested, employees have the option to either hold on to the shares or sell them on the open market. The value of the RSS is typically tied to the performance of Bandstand Corp. and may fluctuate based on the market conditions. Participation in the MRS Plan is typically voluntary and subject to certain eligibility requirements, such as being an active employee of Bandstand Corp. in New Mexico. The plan aims to align the interests of employees with those of the company and promote long-term commitment and performance. While the MRS Plan is the primary restricted stock plan offered by Bandstand Corp. in New Mexico, other types of restricted stock plans may exist within the company. These may include plans specific to different divisions, departments, or levels of employees, each with their own set of terms and conditions. Examples of potential variations could be the New Mexico Restricted Stock Plan for Executives or the New Mexico Divisional Restricted Stock Plan. In summary, the New Mexico Restricted Stock Plan of Bandstand Corp., known as the MRS Plan, is a voluntary program that grants eligible employees restricted stock units as a form of equity ownership. Vested RSS can be sold or held, and the value is tied to the company's performance. Different variations of the plan may exist, such as plans for executives or specific divisions.