Company: PNBK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025485
Chunk: 159

Company: PATRIOT NATIONAL BANCORP INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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.Under the 2025 Plan, various types of awards can be issued, including Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units (RSUs), Performance Units, and Other Stock-Based Awards, as defined within the Plan. The maximum number of shares of Common Stock, Options, and/or Stock Appreciation Rights that may be granted under the Plan is capped at twenty percent (20%) of the total outstanding shares of Common Stock, including both voting and non-voting shares, with a minimum threshold of 10,000,000 shares.RSUs under the 2025 Plan of 4,049,593 shares were granted pursuant to an employment agreement, effective as of the closing of the Private Placement. These RSUs vest in twelve equal monthly installments starting March 20, 2025, and expire on March 20, 2026. Upon expiration, vested RSUs will be settled based on shareholder approval of the Plan: if the Plan is not approved, each vested RSU will be settled in cash equivalent to the fair market value of one share of Common Stock as of March 20, 2026; if approved, each vested RSU will be settled in one share of Common Stock, with no cash settlement option. However, the employee cannot become the beneficial owner of more than 9.99% of the voting securities issued and outstanding, as defined under Rule 13d-3 of the Exchange Act.  The Company recorded $127,000 in share-based compensation expense related to granted RSUs for the three months ended March 31, 2025. 

Retirement Plan 

Patriot offers employees participation in the Patriot Bank, N.A. 401(k) Savings Plan (the "401(k) Plan") under Section 401(k) of the Internal Revenue Code, along with the ROTH feature to the Plan. The 401(k) Plan covers substantially all employees who have completed one month of service, are 21 years of age and who elect to participate. Under the terms of the 401(k) Plan, participants can contribute up to the maximum amount allowed, subject to Federal limitations. At its discretion, Patriot  may match eligible participating employee contributions at the rate of 50% of the first 6% of the participants’ salary contributed to the 401(k) Plan. During the three months ended March 31, 2025 and 2024, Patriot made matching contributions to the 401(k) Plan of $92,000 and $80,000