Page 47 - nou Systems handbook Draft Rev13 (2021) (1)

10.2 Employee Stock Ownership Plan (ESOP)

You are eligible to enter the ESOP when you are:

• credited with 1,000 hours of service during 12 consecutive months, and
• at least age 21.

You enter the ESOP on the next January 1 or July 1 after you meet these criteria. To be in the
ESOP during 2021, for example, you would have had to have been employed on or before July 1,
2020 (and meet the criteria).

Once you are an eligible participant, you may receive company contributions. Any amount the
company contributes is determined by the Board of Directors and made as of the end of each
plan year, which is December 31.

Your part of the contribution is based on your eligible compensation compared to all participants’
eligible compensation. Your eligible compensation is what is reported on your W-2 and includes
any deferrals you make to the 401(k) and/or cafeteria plan.

• Your eligible pay ÷ all eligible pay = Your percent of shares available
• Your percent x total number of shares available = # shares added to your account

As a private company, the law requires the stock be valued annually. The ESOP trustee hires an
independent appraisal firm to assist with the valuation. This process takes several months; the
new value is typically known in the spring.
While the value is based on some factors you cannot control, like the economy, it also reflects
company performance and future potential — something you can impact with your daily
performance.

You earn the value of your ESOP account over time. The percentage of value you earn determines
what you will be paid after your employment ends.

You earn 1 year of vesting for each year you are credited with 1,000 hours, which includes all
years of service with the company except service prior to age 18. If you leave before you are
100% vested, you forfeit the unvested percentage of your account.

10.3 Employee Referral Bonus Program

The purpose of the Employee Referral Bonus Program is to provide an incentive award to a
current employee in a full-time position who brings new talent to nou Systems by referring
applicants who are subsequently selected and successfully employed. During times when the
Employee Referral Bonus Program is implemented, all employees in full-time positions are
eligible to receive a referral bonus with the exception of nou Systems Managers, and HR
personnel.

nSI Employee Handbook 47 Rev. 4 (2021))