Delaware Employee Stock Purchase Plan of Charming Shoppes, Inc.

• Category: Corporations - Public - Employees
• State: Multi-State
• Control #: US-CC-19-119
• Format: Word; Rich Text

Description

19-119 19-119 . . . Employee Stock Purchase Plan under which each employee can contribute from 1% to 10% of earnings through payroll deductions, and contributions are credited to account maintained on behalf of each employee by brokerage firm designated as custodian under Plan. So long as Plan is operated as "discount plan", corporation will sell shares directly to custodian at a price equal to lesser of 85% of fair market value of common stock at beginning of offering period or 85% of fair market value of common stock on purchase date. If Board designates Plan as a "matching plan", such discounted sales by corporation would be discontinued, but corporation instead would make matching contribution equal to 15% of employees' payroll contributions to be used by custodian to make market purchases of common stock at or promptly after purchase date The Delaware Employee Stock Purchase Plan (ESPN) of Charming Shoppes, Inc. is a program designed to allow employees of the company to purchase shares of its common stock at a discounted price. This plan provides workers with an opportunity to invest in the company they work for and reap potential financial benefits. Under this plan, employees contribute a certain percentage of their salary, typically through payroll deductions, into the ESPN account. These contributions are accumulated over a specific period (often six months), and at the end of the accumulation period, the funds are used to buy shares of Charming Shoppes stock on behalf of the participating employees. The purchase price of these shares is determined at a discounted rate, usually lower than the current market value. Delaware's Employee Stock Purchase Plan enables employees to acquire company shares while also enjoying a favorable financial arrangement. This program promotes employee ownership and aligns the interests of workers with that of the organization. By investing in the company, employees have a chance to benefit from its future growth and success. It is important to note that within the Delaware Employee Stock Purchase Plan of Charming Shoppes, Inc., there might be various types of plans available for employees. These might include: 1. Standard ESPN: This is the most common type of Employee Stock Purchase Plan. It allows employees to purchase company shares at a discounted price, typically 15% less than the fair market value. The accumulated funds are used to buy shares periodically, providing employees with an opportunity to participate in the growth of the company's stock. 2. Qualified ESPN: This type of plan complies with Section 423 of the Internal Revenue Code. It offers potential tax advantages to employees, as the discount on stock purchases may be taxed as capital gains instead of ordinary income. Qualified ESPN often have specific eligibility requirements and holding periods for shares. 3. Non-Qualified ESPN: These plans do not meet the requirements of Section 423 and do not offer the same tax advantages. However, they still provide employees the opportunity to purchase company stock at a discounted price. Non-Qualified ESPN may have more flexibility in terms of eligibility criteria and may offer a higher discount rate. The Delaware Employee Stock Purchase Plan of Charming Shoppes, Inc. aims to motivate and incentivize employees by giving them a financial stake in the company's success. By offering discounted stock purchases, Charming Shoppes encourages long-term employee retention and fosters a sense of ownership and loyalty among its workforce.

The Delaware Employee Stock Purchase Plan (ESPN) of Charming Shoppes, Inc. is a program designed to allow employees of the company to purchase shares of its common stock at a discounted price. This plan provides workers with an opportunity to invest in the company they work for and reap potential financial benefits. Under this plan, employees contribute a certain percentage of their salary, typically through payroll deductions, into the ESPN account. These contributions are accumulated over a specific period (often six months), and at the end of the accumulation period, the funds are used to buy shares of Charming Shoppes stock on behalf of the participating employees. The purchase price of these shares is determined at a discounted rate, usually lower than the current market value. Delaware's Employee Stock Purchase Plan enables employees to acquire company shares while also enjoying a favorable financial arrangement. This program promotes employee ownership and aligns the interests of workers with that of the organization. By investing in the company, employees have a chance to benefit from its future growth and success. It is important to note that within the Delaware Employee Stock Purchase Plan of Charming Shoppes, Inc., there might be various types of plans available for employees. These might include: 1. Standard ESPN: This is the most common type of Employee Stock Purchase Plan. It allows employees to purchase company shares at a discounted price, typically 15% less than the fair market value. The accumulated funds are used to buy shares periodically, providing employees with an opportunity to participate in the growth of the company's stock. 2. Qualified ESPN: This type of plan complies with Section 423 of the Internal Revenue Code. It offers potential tax advantages to employees, as the discount on stock purchases may be taxed as capital gains instead of ordinary income. Qualified ESPN often have specific eligibility requirements and holding periods for shares. 3. Non-Qualified ESPN: These plans do not meet the requirements of Section 423 and do not offer the same tax advantages. However, they still provide employees the opportunity to purchase company stock at a discounted price. Non-Qualified ESPN may have more flexibility in terms of eligibility criteria and may offer a higher discount rate. The Delaware Employee Stock Purchase Plan of Charming Shoppes, Inc. aims to motivate and incentivize employees by giving them a financial stake in the company's success. By offering discounted stock purchases, Charming Shoppes encourages long-term employee retention and fosters a sense of ownership and loyalty among its workforce.