Washington 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 Washington Restricted Stock Plan is an employee benefit program offered by Bandstand Corp., a prominent company based in Washington state. This plan aims to provide employees with a unique opportunity to acquire company stocks, typically at a discounted price, allowing them to benefit from future appreciation of the stock value. Under the Washington Restricted Stock Plan, eligible employees are granted a specific number of restricted stock units (RSS) as determined by the company. This RSS represents a right to receive a specified number of shares of Bandstand Corp. stock once certain vesting conditions are met. The vesting conditions could be based on the employee's tenure, performance, or a combination of both. One significant feature of this plan is that the granting of RSS is subject to a vesting period, during which the employee does not have full ownership of the awarded shares. The vesting period encourages long-term commitment and loyalty among employees, as they need to remain with the company for a certain duration to fully benefit from the RSS. Once the RSS have vested, employees gain full ownership of the shares, allowing them to sell, hold, or transfer them as they wish. This flexibility provides employees with a financial stake in the company's performance, fostering a sense of ownership and alignment with corporate goals. It is important to note that there may be variations or additional types of Washington Restricted Stock Plans offered by Bandstand Corp., tailored to different employee groups or levels within the organization. For example, there could be executive-level or director-level restricted stock plans that offer additional benefits or higher stock allocations. These plans may have specific eligibility criteria and differing vesting schedules. In summary, the Washington Restricted Stock Plan of Bandstand Corp. is a comprehensive employee benefit program aimed at providing employees with an opportunity to acquire company stocks through the granting of restricted stock units. It promotes long-term commitment, ownership, and alignment with corporate goals while offering employees potential financial gains based on the future performance of the company.