An employee stock purchase plan is a written or verbal plan or a program run by a company which gives the participating employees of the company a chance to purchase the stocks of that company at a discounted rate. The employees which participate in the employee stock purchase plan (ESPP) contribute in it through various methods such as payroll deductions which are built up during or between the date of offering and the date of purchase.
Any employee stock purchase plan is made by almost all large corporations for the consideration purpose of its employees. These plans have a certain number of legally binding terms and conditions under which the employees and the company sign the document. The plan consists of the details of the company, share price details, details of the stock purchase procedure etc. Other than this the document can also have important dates of commencement and termination of the plan.
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Sample Employee Stock Purchase Plan Agreement
Employee Stock Purchase Plan Agreement
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