Company: MGNO
Filing Date: 2025-08-14
Form Type: DEF 14A
Source: 0000927089-25-000145
Chunk: 24

Company: Magnolia Bancorp, Inc.
Filing Date: 2025-08-14
Form: DEF 14A
Chunk 24
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 and Retention Plan is a summary of its terms and is qualified in its entirety by reference to the Recognition and Retention Plan, a copy of which is attached hereto as Appendix B.

Administration. The Compensation Committee of the Board of Directors of Magnolia Bancorp, currently consisting of Messrs. Andressen, Burkhalter and Manson, will administer the Recognition and Retention Plan. Messrs. Andressen and Burkhalter will be the initial trustees of the Trust established pursuant to the Recognition and Retention Plan.

Number of Shares Covered by the Recognition and Retention Plan. Upon shareholder approval of the Recognition and Retention Plan, Magnolia Bancorp will contribute sufficient funds to the Recognition and Retention Plan Trust so that the Trust can purchase 33,350 shares of common stock, or 4.0% of the shares sold in the conversion offering. It is currently anticipated that these shares will be acquired through open market purchases to the extent available, although Magnolia Bancorp reserves the right to issue previously unissued shares or treasury shares to the Recognition and Retention Plan. The issuance of new shares by Magnolia Bancorp would be dilutive to the voting rights of existing shareholders and to Magnolia Bancorp’s book value per share and earnings per share.

Grants. Shares of common stock granted pursuant to the Recognition and Retention Plan will be in the form of restricted stock generally payable at a rate no more rapid than 20% per year, beginning one year from the anniversary date of the grant. A recipient will be entitled to all shareholder rights with respect to shares which have been earned and distributed under the Recognition and Retention Plan. However, until such shares have been earned and distributed, they may not be sold, assigned, pledged or otherwise disposed of by the recipient and may not be voted by the recipient. In addition, any cash dividends or stock dividends declared in respect of unvested share awards will be held by the Trust for the benefit of the recipients of such plan share awards and such dividends or returns of capital will be paid out proportionately by the Trust to the recipients thereof as soon as practicable after the plan share awards are earned.

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If a recipient terminates employment or service with Magnolia Bancorp and its subsidiaries for any reason, other than upon death, disability or a change in control, the recipient will forfeit all rights to the allocated shares under restriction. If a recipient terminates his employment or service with Magnolia Bancorp and our subsidiary companies as a result