Tennessee Employee Stock Purchase Plan

State:
Multi-State
Control #:
US-CC-19-153
Format:
Word; 
Rich Text
Instant download

Description

This sample form, a detailed Employee Stock Purchase Plan document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

If you leave your company while enrolled in their employee stock purchase program, your eligibility for the plan ends, but you will continue to own the stock the company purchased for you during employment.

In this situation, you sell your ESPP shares more than one year after purchasing them, but less than two years after the offering date. This is a disqualifying disposition because you sold the stock less than two years after the offering (grant) date.

An employee stock purchase plan (or ESPP) can be a very valuable benefit. In general, if your employer offers an ESPP, we think you should participate at the level you can comfortably afford and then sell the shares as soon as you can.

If a participant withdraws from the ESPP, the accumulated payroll deductions will be paid to the participant as soon as administratively possible and no further payroll deductions will be made for the participant for such offering period.

If you are risk-averse, you might consider selling your ESPP shares right away so you don't have overexposure in one stock, particularly that of your own employer. ESPP shares can put you in an overexposed position. If the stock value goes down, you may suffer losses and in extreme cases, even lose your job.

A: Yes. You may withdraw from the ESPP by notifying Fidelity and completing a withdrawal election. When you withdraw, all of the contributions accumulated in your account will be returned to you as soon as administratively possible and you will not be able to make any further contributions during that offering period.

The most notable difference between an ESOP vs ESPP is in how the employee receives the stock and when they can sell the stock. ESOPs provide the stock or shares at no cost to employees. ESPPs require participants to contribute funds to purchase shares of stock, though at a discounted rate.

An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock directly, at a discounted price. Employees contribute to the plan through payroll deductions which build up between the offering date and the purchase date.

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Tennessee Employee Stock Purchase Plan