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Employee Stock Ownership Plan

Hurt & Proffitt is organized as an S corporation and the ESOP owns 100% of the company stock. The plan year end is December 31st and Fiscal year end is December 31st. 

The plan was effective as of January 1st, 1996. Employees enter the plan after attaining age 21 and upon completing 1,000 hours of service in 12 months. The plan has 2 entry dates which are January 1st and July 1st.

Eligible compensation for plan purposes is total compensation, excluding contributions made to a deferred compensation plan; realized amounts from sales of qualified and nonqualified stock options; and insurance premiums.

Contributions are made by the company at their discretion and the contribution is allocated pro rata according to eligible compensation.

For participants who terminate after January 1st, 2007, the ESOP has a 6-year graduated vesting schedule. Participants are 100% vested upon normal retirement, death, and disability.

A committee approved by the Board of Directors administers the ESOP. The committee invests all funds, handles all accounts and records of the Trust, and maintains the appropriate separate accounts in the name of each participating employee. The Trustees use the custodial services of a professional firm to assist them with their duties.

Hurt & Proffitt is presently forming an ESOP Committee comprised of employees from different departments. We are also an active member in the National Center for Employee Ownership (NCEO).