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Transferring a plan within a control group.


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Parent is 100% owner of Company.  Company has an ESPP under which participants can purchase stock of Company.  Parent is selling off Company but wants to continue to offer ESPP benefits, but now participants will have the opportunity to purchase Parent stock, rather than Company stock.  We have two choices -- one is to transfer the ESPP from Company to Parent; the other is to terminate the ESPP and start a new ESPP at the parent level.

Is there any difference as far as securities concerns go?  For example, would Parent need shareholder approval either way?  Or would transferring the ESPP, as opposed to establishing a new ESPP, save us some of the hassle of setting up an entirely new plan?

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