This employee share purchase plan template has 8 pages and is a MS Word file type listed under our human resources documents.
Sample of our employee share purchase plan template:
EMPLOYEE SHARE PURCHASE PLAN This Employee Share Purchase Plan (the "Agreement") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the "Company"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [EMPLOYEE NAME] (the "Employee"), an individual with his main address located at: [COMPLETE ADDRESS] 1. DEFINITIONS The following words and phrases shall have the following meanings unless there is something in the context inconsistent therewith: "Annual Income" shall mean for a salaried Employee the annualized salary of such Employee at the date of enrolment in the Plan or at such subsequent date as the Participant changes the amount of his or her Contributions to the Plan pursuant to Section 16 hereof, including commissions, calculated on the basis of actual commissions earned during the preceding calendar year or such shorter period if applicable, but excluding overtime, bonuses, travelling expenses, any special payments for extraordinary services and the cost of employee benefits paid for by the Corporation and shall mean for a non-salaried Employee the regular hourly base rate of such Employee at such date multiplied by [NUMBER]. "Available Participation Amount" shall mean in respect of any Participant or Former Participant, the Contributions accumulated and paid over to the Trustee for the account of the Participant or Former Participant during the relevant Contribution Period and interest thereon and not yet invested in Plan Common Shares by the Trustee on behalf of the Participant. "Board" shall mean the Board of Directors of the Corporation or any authorized committee thereof as the same may be constituted from time to time. "Committee" shall mean the Remuneration Committee of the Board as the same may be constituted from time to time. "Common Shares" shall mean treasury common shares of the Corporation. "Contributions" shall mean in respect of any Participant employed by the Corporation only the sums deducted by the Corporation from the payroll of such Participant and paid over to the Trustee for the account of such Participant. "Contribution Period" shall mean the period beginning on any Purchase Date and ending on the day previous to the next Purchase Date. "Corporation" shall mean [YOUR COMPANY NAME] Inc. "Employee" shall mean any regular full-time employee of the Corporation who is a [COUNTRY] resident and at the date of enrolment in the Plan has [NUMBER] months of service with the Corporation. "Employer Contribution" shall mean the contribution referred to in Section 8 hereof. "Enrolment Form" shall mean the form with which an Employee may enroll in the Plan. "Former Participant" shall mean a Participant who retires or becomes an Executive. "Market Price" on any Purchase Date (or other specified date) means the average per Common Share of the closing prices of a board lot of Common Shares on The [COUNTRY] Exchange and The [COUNTRY] Stock Exchange on the last [NUMBER] trading days immediately preceding the applicable Purchase Date (or other specified date) and on which at least a board lot of Common Shares was traded. "Participant" shall mean any Employee participating in the Plan. "Participation Amount" shall mean the aggregate amount of Contributions a Participant agrees to make to the Plan on a yearly basis as so indicated on the Participant's Enrolment Form. "Plan" shall mean this Employee Share Purchase Plan. "Plan Common Shares" shall mean Common Shares and any fractions thereof purchased and held by the Trustee for the account of each Participant or Former Participant pursuant to the Plan. "Purchase Date" shall mean on or about, but in any event as of, each of [DATE], [DATE], [DATE] and [DATE] [DATE] in every calendar year. "Retention Period" shall mean the period referred to in Section 10 hereof. "Subscription Period" shall mean [DATE] to [DATE] and [DATE] to [DATE] in every year. "Trustee" shall mean the financial institution appointed to act as Trustee under the Plan pursuant to Section 5.1. Words importing the masculine gender shall include the feminine gender. 2. PURPOSE OF THE PLAN The purpose of the Plan is to provide an opportunity for Employees to participate in the ownership of the Corporation through the purchase of Common Shares. 3. SHARES SUBJECT TO THE PLAN The shares offered shall be Common Shares of the Corporation. The total number of Common Shares reserved for issuance under this Plan and any other employee share purchase plan shall not exceed [NUMBER] Common Shares of the Corporation. 4. ADMINISTRATION OF THE PLAN 4.1 The Plan is under the direction of the Board or the Committee, as the case may be, which, in addition to the specific powers conferred upon it hereunder, has full and complete authority to interpret the Plan and, subject to Section 18, to prescribe such rules and regulations and make such other determinations as it deems necessary or desirable to meet the objectives of and administer the Plan. 4.2 Subject to Section 11.2 hereof, the Corporation shall pay all administrative costs of the Plan. 5. TRUSTEE 5.1 The Trustee shall be [COMPANY NAME] which has agreed to act and shall hold office for such period as is determined by the Board or the Committee. In the event of the resignation of the Trustee, its successor shall be appointed by the Board or the Committee. Any successor Trustee shall be vested with all the powers, rights, duties and immunities of the Trustee hereunder to the same extent as if originally named as the Trustee hereunder. 5.2 The Trustee shall only be liable for its own willful misconduct or gross negligence in the performance of its duties under the Plan and shall not be liable for any default of any nominee. 6. PARTICIPATION 6.1 An Employee becomes a Participant in the Plan by completing and filing the Enrolment Form with the Corporation during any Subscription Period. 6.2 The Participation Amount must be a minimum of [AMOUNT] and must not exceed a maximum of [%] of the Participant's Annual Income. 6.3 The Contributions will commence with the first Purchase Date after the filing of the Enrolment Form and will be deducted from the Participant's periodic payroll as nearly as possible in equal installments based upon the Participation Amount. 6.4 Participants may revise, subject to Section 6.2 hereof, their Participation Amounts during any Subscription Period by filing the appropriate form with the Corporation. 7. INVESTMENT OF AVAILABLE PARTICIPATION AMOUNT 7.1 The Contributions will be remitted to the Trustee on a monthly basis. 7.2 The Contributions received by the Trustee shall be invested by the Trustee in an interest-bearing account for the benefit of the Participant. 7.3 The Trustee shall purchase from the Corporation on each Purchase Date for and on behalf of each Participant the number of Common Shares equal to the quotient obtained by dividing the Available Participation Amount by [%] of the Market Price. 8. EMPLOYER CONTRIBUTION 8.1 On each Purchase Date, the Corporation will, for and on behalf of each Participant who is employed by the Corporation or Former Participant who so elects pursuant to Section 17.2 hereof, pay to the Trustee in cash [%] of the Contributions made to the Plan by such Participant or Former Participant in the Contribution Period immediately preceding the sixth previous Purchase Date (herein referred to as the "Employer Contribution") provided all of the Common Shares purchased with Contributions in such Contribution Period have been held in the Plan for six consecutive Contribution Periods following their purchase. On such Purchase Date, the Trustee will use all of the Employer Contribution to purchase from the Corporation additional Common Shares for and on behalf of such Participant or Former Participant. 8
