Supplemental ESOP Benefit Sample Clauses
The Supplemental ESOP Benefit clause establishes an additional benefit for employees participating in an Employee Stock Ownership Plan (ESOP) beyond the standard plan provisions. This clause typically outlines the eligibility criteria, calculation methods, and distribution process for the supplemental benefit, which may be triggered by specific events such as retirement, termination, or company sale. Its core practical function is to enhance employee incentives and retention by providing extra financial rewards, thereby aligning employee interests with the long-term success of the company.
Supplemental ESOP Benefit. The annual Supplemental ESOP Benefit Contributions (or Supplemental ESOP Benefit Phantom Contributions) required to be made by the Bank to the Retirement Income Trust Fund of the ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ Grantor Trust (or recorded by the Bank in the Accrued Benefit Account) are calculated as of December 31 of each Plan Year. Such calculation shall be performed by the Bank in accordance with Subsection 1.23 of this Agreement, within thirty (30) days after the end of each Plan Year. Supplemental ESOP Benefit Contributions shall be made by the Bank to the Retirement Income Trust Fund within sixty (60) days after the end of each Plan Year, unless this Section expressly provides otherwise. Supplemental ESOP Benefit Phantom Contributions shall be recorded in the Accrued Benefit Account within sixty (60) days after the end of each Plan Year, unless this Section expressly provides otherwise. Supplemental ESOP Benefit Phantom Contributions shall accrue interest at a rate equal to the Interest Factor, up to and throughout the Payout Period, until the balance of the Accrued Benefit Account has been fully distributed. Interest on any Supplemental ESOP Benefit Phantom Contribution shall commence on the date such Supplemental ESOP Benefit Phantom Contribution is initially recorded in the Executive’s Accrued Benefit Account. If the Executive is eligible to receive a benefit under the terms of the ESOP for any Plan Year, and a Supplemental ESOP Benefit is due for such Plan Year pursuant to Subsection 1.23, a Supplemental ESOP Benefit Contribution (or a Supplemental ESOP Benefit Phantom Contribution) shall be required of the Bank for such Plan Year. If the Executive has not exercised any withdrawal rights described in Subsection 2.2 as of December 31 of any Plan Year, a Supplemental ESOP Benefit Contribution to the Retirement Income Trust Fund for such Plan Year shall be required of the Bank. If the Executive has exercised the withdrawal rights described in Subsection 2.2 as of December 31 of any Plan Year, a Supplemental ESOP Benefit Phantom Contribution shall be recorded in the Executive’s Accrued Benefit Account. Thereafter, the Executive will only be eligible to receive Supplemental ESOP Benefit Phantom Contributions. The Supplemental ESOP Benefit Contributions to the Retirement Income Trust Fund (or the Supplemental ESOP Benefit Phantom Contributions recorded in the Executive’s Accrued Benefit Account) shall commence in the Plan Year in which the ESOP is established, an...
Supplemental ESOP Benefit. As of the last day of each plan year of the ESOP, the Bank shall credit the Executive’s Supplemental ESOP Account with a Supplemental ESOP Benefit equal to the excess of (a) over (b), where:
(a) Equals the annual contributions made by the Bank and/or the number of shares of Common Stock released for allocation in connection with the repayment of an ESOP Acquisition Loan that would otherwise be allocated to the accounts of the Participant under the ESOP for the applicable plan year, if the provisions of the ESOP were administered without regard to any of the Applicable Limitations; and
(b) Equals the annual contributions made by the Employer and/or the number of shares of Common Stock released for allocation in connection with the repayment of an ESOP Acquisition Loan that are actually allocated to the accounts of the Participant under the provisions of the ESOP for that particular plan year, after giving effect to any reduction of such allocation required by any of the Applicable Limitations.