I contribute to an ESPP program through my company. Below describes the plan which I’d like to have considered for ProjectionLab.

There are two accumulation periods in a calendar year (period: January 1 – June 30 and July 1 - December 31) in each successive calendar year. Through payroll deductions funds are accumulated to allow purchase of company shares on the last day of the accumulation period. Payroll deductions are established between 1% and 10% of my base earnings per payroll period (bi-weekly). “Base earnings” includes my base salary, before reduction for pre-tax contributions to 401(k) plans, health insurance premiums, etc. Payroll deductions continue until the last payday during that accumulation period. As of the last day company shares are traded in an accumulation period, the funds accumulated in my account will automatically be used to purchase company shares. I may increase or reduce payroll deductions for the next accumulation period established as a percentage of my base earnings. The Internal Revenue Code limits the amount I may purchase under the plan to $25,000 worth of shares per year.

The price per share as of the end of any accumulation period is the lesser of (a) 85% of the fair market value of a share on the last stock trading day of the accumulation period (approximately June 30 for period 1 and December 31 for period 2), or (b) 85% of the fair market value of a share on the first stock trading day of the accumulation period (approximately January 2 for period one and July 1 for period 2). “Fair market value” is the per share closing price of a company share as reported by the New York Stock Exchange for that date.

After shares are purchased, they will be credited to my brokerage account.