Tax on discount at purchase.

Tax on sale.

Yes, if subsidiary reimburses parent. Written agreement required.

Income Tax/Social Insurance Contributions:

Withholding and reporting as well as social insurance contributions likely required if local subsidiary (a) records an expense on its books for the awards, (b) reimburses the parent for the awards, and/or (c) is otherwise involved in the grant of the awards. Please contact Baker McKenzie for details.

None.

None.

Possible plan entitlement issues, especially if subsidiary reimburses parent.

Written disclaimer should be included (in English and Spanish) to reduce risk of entitlement.

Federal privacy law enacted in July 2010 requires employers to appoint an individual or establish a data privacy department, inform employees of collection of personal data and obtain consent to processing, disclosure and transfer of personal data.