The Hennepin County, Minnesota Book Value Phantom Stock Plan is a financial incentive program offered by First Florida Banks, Inc. This plan is designed to provide employees with a supplemental benefit by allowing them to participate in the future growth and success of the company. It is important to note that First Florida Banks, Inc. is a fictional company created for the purpose of this assignment. The Book Values Phantom Stock Plan is an equity-based compensation plan that grants eligible employees virtual shares of stock based on the book value of the company. These virtual shares, also known as phantom shares, do not represent actual ownership in the company but are linked to its financial performance. The plan works by determining the book value of First Florida Banks, Inc. on a predetermined date. The book value is calculated by deducting the company's total liabilities from its total assets, giving an indication of its net worth. The eligible employees are then granted a specific number of phantom shares, which are equivalent to a certain percentage of the company's book value. The value of the phantom shares is tied to the performance of the company. As the book value of First Florida Banks, Inc. increases over time, the value of the phantom shares also rises. Employees may receive dividend payments on their phantom shares, though these payments are usually reinvested to purchase additional phantom shares. Upon certain events such as retirement, termination, or a predetermined date, employees are entitled to receive a cash payout based on the value of their phantom shares. The payout is calculated by multiplying the number of phantom shares owned by the employee by the current book value of the company. The Hennepin County, Minnesota Book Value Phantom Stock Plan offers several benefits to both the company and its employees. For employees, it provides an additional source of income and allows them to share in the company's success without the risks associated with actual stock ownership. It also incentivizes long-term commitment and loyalty to the company. From the company's perspective, this plan helps attract and retain talented employees, motivates them to perform at their best, and aligns their interests with those of the company. In summary, the Hennepin County, Minnesota Book Value Phantom Stock Plan of First Florida Banks, Inc. is a unique compensation program that grants employees virtual shares tied to the book value of the company. It allows employees to participate in the company's growth and success while providing them with potential financial rewards.