Texas 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

Texas Amended and Restated Employee Stock Purchase Plan (ESPN) is a comprehensive employee benefit program offered by companies in Texas that allows eligible employees to purchase company stock at a discounted price. ESPN are designed to encourage employee ownership and provide a more attractive compensation package. Under the Texas Amended and Restated Employee Stock Purchase Plan, employees have the opportunity to contribute a portion of their salary towards purchasing company stock. These contributions are accumulated over a specific period, often six months or a year, called the offering period. At the end of the offering period, employees can buy company stock with the accumulated contributions at a predetermined price, usually at a discount to the market price. There may be different types of Texas Amended and Restated Employee Stock Purchase Plans available, each with its own features and options: 1. Standard ESPN: This type of plan typically consists of a single offering period, where employees make contributions and purchase stock at the end of that period. 2. Rolling ESPN: In a rolling ESPN, employees can enroll and withdraw every quarter or offering period, allowing for more flexibility in participation. 3. Look back ESPN: A look back ESPN allows participants to purchase stock at the lowest of the beginning or ending market price, increasing the potential discount employees can receive. 4. Qualified ESPN: A qualified ESPN meets specific requirements set by the Internal Revenue Code, offering potential tax advantages to both employees and companies. Companies that offer the Texas Amended and Restated Employee Stock Purchase Plan often establish eligibility criteria such as minimum hours worked, length of service, and employee classification. These criteria ensure that the plan benefits a wide range of employees while maintaining fairness and compliance with regulations. Participating employees can choose to contribute a percentage of their salary, usually up to a set maximum, towards purchasing company stock. The accumulated contributions are held in an account until the end of the offering period. At that time, the stock is purchased on behalf of the employees and held in their accounts or transferred to their brokerage accounts. The Texas Amended and Restated Employee Stock Purchase Plan is an attractive benefit for employees as it allows them to become shareholders in the company they work for at a discounted price. By aligning the interests of employees and shareholders, companies can foster a sense of ownership, loyalty, and motivation among their workforce. It is important for employees to thoroughly review the plan document, including any amendments and restatements, to understand the specific details, terms, and conditions of the Texas Amended and Restated Employee Stock Purchase Plan offered by their employer. Employees should consult with financial advisors or professionals to assess the suitability of participating in the plan based on their individual financial goals and circumstances.