Hennepin Minnesota Amended and Restated Employee Stock Purchase Plan

• Category: Corporations - Public - Employees
• State: Multi-State
• County: Hennepin
• 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 Hennepin Minnesota Amended and Restated Employee Stock Purchase Plan (MARES) is a comprehensive stock purchase program offered by companies in Hennepin County, Minnesota, to their employees. This plan allows eligible employees to buy company stock at a discounted price, providing them an opportunity to invest in their employer's success and potentially earn returns. The MARES are designed to motivate and retain talented employees by offering them a convenient and affordable way to acquire company stocks. Employees who participate in the plan can allocate a portion of their salary towards purchasing company shares regularly. These deductions are done through payroll deductions, making it simple for employees to save and invest in company stocks. One of the primary advantages of the MARES is the discounted stock price offered to the participants. This discounted price is usually lower than the current market price, creating an instant gain for employees who decide to sell their purchased shares later. The percentage of the discount varies for different plans, and companies may offer multiple types of MARES to cater to their employees' needs. Common variations of MARES include: 1. Standard MARES: This plan provides eligible employees the opportunity to purchase company stock at a predetermined discounted price, typically set at a fixed percentage below the market price. 2. Qualified MARES: This plan is designed specifically for publicly-traded companies and follows the guidelines set by the Internal Revenue Code (IRC) Section 423. It offers certain tax advantages to employees, allowing them to defer taxes on the discount they receive until the stock is sold. 3. Non-Qualified MARES: This type of plan is offered by companies that do not meet the requirements defined in IRC Section 423. Non-qualified plans do not offer the same tax benefits as qualified plans, but they still provide employees the opportunity to purchase company stock at a discount. The MARES serve as a valuable employee benefit, encouraging employees to become shareholders and align their interests with the company's success. It promotes loyalty, motivates improved performance, and fosters a sense of ownership among employees. Moreover, the plan's flexibility in choosing the amount of salary to contribute and the discounted stock purchase price makes it an attractive option for employees looking to invest in their future.

Hennepin Minnesota Amended and Restated Employee Stock Purchase Plan (MARES) is a comprehensive stock purchase program offered by companies in Hennepin County, Minnesota, to their employees. This plan allows eligible employees to buy company stock at a discounted price, providing them an opportunity to invest in their employer's success and potentially earn returns. The MARES are designed to motivate and retain talented employees by offering them a convenient and affordable way to acquire company stocks. Employees who participate in the plan can allocate a portion of their salary towards purchasing company shares regularly. These deductions are done through payroll deductions, making it simple for employees to save and invest in company stocks. One of the primary advantages of the MARES is the discounted stock price offered to the participants. This discounted price is usually lower than the current market price, creating an instant gain for employees who decide to sell their purchased shares later. The percentage of the discount varies for different plans, and companies may offer multiple types of MARES to cater to their employees' needs. Common variations of MARES include: 1. Standard MARES: This plan provides eligible employees the opportunity to purchase company stock at a predetermined discounted price, typically set at a fixed percentage below the market price. 2. Qualified MARES: This plan is designed specifically for publicly-traded companies and follows the guidelines set by the Internal Revenue Code (IRC) Section 423. It offers certain tax advantages to employees, allowing them to defer taxes on the discount they receive until the stock is sold. 3. Non-Qualified MARES: This type of plan is offered by companies that do not meet the requirements defined in IRC Section 423. Non-qualified plans do not offer the same tax benefits as qualified plans, but they still provide employees the opportunity to purchase company stock at a discount. The MARES serve as a valuable employee benefit, encouraging employees to become shareholders and align their interests with the company's success. It promotes loyalty, motivates improved performance, and fosters a sense of ownership among employees. Moreover, the plan's flexibility in choosing the amount of salary to contribute and the discounted stock purchase price makes it an attractive option for employees looking to invest in their future.