About ESPP

About ESPP | Lucid Total Rewards

Lucid Employee Stock Purchase Plan (ESPP)

Lucid is committed to making share ownership available to as many of our employees as we can, through our Employee Stock Purchase Plan (ESPP). Our ESPP offers employees the opportunity to purchase shares of Lucid (LCID) stock through convenient payroll deductions at a discount, allowing employees to share in the company’s success.

You may join during the next enrollment period following your start date with Lucid (please see further information below). Please note, eligible employees must have started 30 days prior to the ESPP offering date.

What is an ESPP?

The ESPP is a simple and convenient way to purchase Lucid shares, enabling eligible employees (IRC 423 prohibits contractors from participating in this plan) to:

Enroll in the plan (enrollment periods take place semi-annually, during the months of May and November)
Contribute 1-15% of your eligible compensation
Purchase Lucid (LCID) stock at a 15% discount at the lower of the offering date price or the price on the day of purchase
Purchases occur every six months in a 24-month offering period at the end of May and November (using your previous six months of salary deduction contributions)
The plan includes a reset provision to ensure the lowest purchase price and a full two-year lookback locking in that low price (see “lookback” and “reset” images below)
Employees located in Belgium, Canada, France, Germany, Kingdom of Saudi Arabia, Netherlands, Norway, Shanghai, Switzerland, Taiwan, United Kingdom and United States (excluding contractors and interns) hired at least 30 days prior to the offering start dates (June 1 or December 1) are eligible to enroll

Important Dates for our ESPP Enrollments

Enrollment for the ESPP occurs the end of April through May and the end of October through November. It is important to note that you must be hired at least 30 days prior to the offering start dates.

How to Enroll

If you are hired prior to the hire date cut offs listed above and are considered an “eligible” employee as stated above, you will be eligible to enroll during an open enrollment period. To enroll:

Login to Okta (lucid.okta.com)
Click on the Shareworks chiclet
A notice will appear to enroll in the ESPP

Additional ESPP Highlights

Purchases
There are two 6-month purchase periods per year. Shares are purchased on the last day of the purchase periods, either at the end of May or November.

Lookback & Reset Features
Lucid’s lookback and reset features ensure you are receiving the lowest purchase price at which you will purchase Lucid (LCID) shares.

If the share price is higher on purchase date than the price on the offering start date, the plan will “lookback” and purchase shares at the lower offering date price.

If the share price is lower on purchase date than the price on the offering start date, the plan will purchase shares using the lower price (purchase date). Additionally in this case, the plan will “reset,” and you will enter a new 2-year offering period using the lower price as the new offering start date price.

These features ensure you will always purchase shares at the lowest price – the price at the beginning of the 2-year offering period OR the price on the purchase date.

Please note, only the prices on your offering start date and purchase date are taken into consideration for the price at which you will purchase shares.

What is a Lookback?
The lookback feature bases your purchase price on the Fair Market Value (FMV) of the shares on the either the purchase date or offering date, whichever is lower. Pease refer to the example below.

What is a Reset?
The reset feature is like a rewind button under which if the stock price is lower at the end of a purchase period than at the original offering date, then, your plan’s offering period will “reset” and a new offering period will begin with the stock price at the end of the purchase period replacing the original stock price for loopback purposes. No action is required by you!

Tax Implications on the ESPP

Our ESPP for employees is generally the same globally except when it comes to taxes, as taxes differ by country. If you would like to see more detailed information around taxes on the ESPP, please follow the directions below:

Login to Shareworks via Okta (lucid.okta.com)
Click on the “Documents” tab at the top
On that page, under “Guides and General Reference” click on the link “USA ESPP & ISO Tax Information” or “Non-US ESPP Tax Information”

More Information & Resources

To access the Employee Stock Purchase Plan presentations by country, please visit our ESPP Presentations folder and locate your country of choice.

Should you have any questions about the ESPP, please reach out to our team via HR HelpDesk.

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