Utah Amended and Restated Employee Stock Purchase Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• Control #: US-CC-19-179
• Format: Word; Rich Text

Description

19-179 19-179 . . . Employee Stock Purchase Plan under which each employee of corporation and its wholly-owned direct or indirect, domestic and foreign subsidiaries that have authorized participation in Plan (Participating Company) can contribute up to 15% of earnings through payroll deductions and Participating Company contributes a cash amount equal to 5% of participant's payroll deductions for first year of participation, additional 7% for second year, additional 10% for third year, additional 13% for fourth year and additional 15% for fifth year. Custodian of plan purchases shares of common stock on open market or from corporation at current market prices, using payroll deductions and applicable matching Company contributions

Utah Amended and Restated Employee Stock Purchase Plan (ESPN) is a program offered by companies to their employees to purchase shares of the company's stock at a discounted price. It is designed to provide employees with an opportunity to become shareholders and benefit from the company's performance. The Utah Amended and Restated ESPN is implemented in accordance with the regulations set forth by the state of Utah, ensuring compliance with local laws and requirements. This plan offers employees the chance to save a portion of their salary to be used for the purchase of company stock. The Utah Amended and Restated ESPN typically operates on an enrollment period basis, allowing employees to enroll and make contributions during specific periods throughout the year. The plan allows employees to allocate a percentage of their salary, subject to certain limitations, towards the purchase of company stock. The Utah Amended and Restated ESPN offers a number of benefits to employees. Firstly, it provides an opportunity to own the company's stock, allowing employees to participate in the company's success and potentially benefit from any increase in stock value over time. Additionally, the plan often offers a discount on the stock price, making it even more financially attractive for employees to participate. Companies may offer different types of Utah Amended and Restated ESPN to cater to the specific needs of their employees. These may include: 1. Standard ESPN: This is the basic form of the plan, where eligible employees can elect to contribute a percentage of their salary towards purchasing company stock at a discounted price. 2. Look back ESPN: This plan offers employees the opportunity to purchase stock at a discount based on the lowest of the stock's price at the beginning or end of the offering period. This allows employees to maximize their potential gains. 3. Enrollment ESPN: This type of plan allows employees to enroll or make changes to their contributions during specific enrollment periods. It provides flexibility for employees to adjust their investment as their financial situations change. 4. Immediate ESPN: In an immediate ESPN, employees can start purchasing company stock immediately upon enrollment, rather than waiting for the end of an enrollment period. This allows employees to take advantage of market conditions and potential stock price fluctuations. 5. Pre-tax ESPN: This plan allows employees to contribute to the ESPN through pre-tax payroll deductions, offering potential tax advantages for participants. Overall, the Utah Amended and Restated Employee Stock Purchase Plan provides a valuable avenue for employees to participate in the company's success and potentially benefit financially. It encourages employees to save and invest in their own company, fostering a sense of ownership and loyalty.