Tax at grant for RS, tax at vesting for RSU. Taxable amount is fair market value on the tax event.

Tax on sale, if gain in excess of annual exemption and shares not held for more than one (1) year.

Allowed if subsidiary reimburses parent under a written agreement.

Income Tax:
Yes. Reporting and withholding required.

Social Insurance Contributions:
Yes, both employer and employee social and health insurance contributions due.

Health insurance contributions are uncapped.

Employer has to withhold employee's contributions.

No securities law restrictions or obligations apply.

Non-transferable free offers of RS/RSUs are not considered a public offering of securities for purposes of the EU Prospectus Regulation.

None.

Possible plan entitlement issues.

Employee should be required to sign/accept an agreement acknowledging the discretionary nature of the plan.

Exclusion of part-time employees may be deemed discriminatory.

The EU Council Directive 2000/78/EC prohibits age discrimination. Most, if not all, countries have adopted local rules implementing this Directive, which may have an impact on design of equity and other incentive plans in the EU, particularly on age or age and service provisions which give different treatment (e.g., accelerated or continued vesting) for those meeting the criteria.

A valid basis is required to collect, process and transfer personal data.

The EU Data Protection Regulation ("GDPR") became effective in all EU/EEA countries on 25 May 2018. It introduces new requirements and increases the powers of data protection authorities, rights of data subjects and potential penalties for non- compliance.

Accordingly, companies should review their approach to data privacy compliance in the context of equity plan administration and consider on which basis they may be able to rely to collect, process and transfer data.

Registration and notification requirements with local data privacy authorities may also apply.