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Employee Stock Purchase Plan (ESPP)

Upstart's Employee Stock Purchase allows eligible employees to purchase Upstart stock at a discount through payroll deductions.

Offering Periods	February 15 - August 15 and August 15 - February 15
Eligibility	Upstart employees (currently US only) with a Full Time Equivalent of 20 hours or more, hired before the period starts
Enrollment Window	Opens ~3 weeks before each period, lasts ~2 weeks
Contribution Range	Up to 15% of base salary
Purchase Price	85% of the lower of: First day stock price Last day stock price (Purchase Date)
Where Shares Go	Deposited into your Charles Schwab Equity Award Center (EAC) account
Purchase Date	Last day of the Offering Period; purchased shares through ESPP will be deposited to your Charles Schwab EAC account as soon as administratively possible following the Purchase Date.

If you are…	Action
Not enrolled	Enroll during open enrollment and choose %
Already enrolled	No action needed—your rate carries forward (Can update to a higher rate if desired)
Want to change your rate	One decrease allowed per period (no increases allowed)
Want to withdraw contributions	Allowed before purchase cut off date before purchase date via your Schwab account
Want to increase contribution	Can update contribution rate during next open enrollment window
Previously unenrolled	Enroll again during next open enrollment window

	Qualifying Disposition	Disqualifying Disposition
When you sell	2+ years after start of Offering Period and 1+ year after purchase	Less than 2 years from start or Less than 1 year from purchase
Tax on 15% discount	Treated as ordinary income	Treated as ordinary income
Tax on additional gain	Treated as long-term capital gain	Treated as short-term capital gain

Holding your shares until they qualify for long-term tax treatment may potentially lower your tax bill.

$25,000 IRS Limit: You may only purchase up to $25,000 worth of discounted shares (based on market value at the start of the offering) in a calendar year. Learn more.
You can only decrease your contribution mid-period—no increases allowed.

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