NEW BRUNSWICK INNOVATION FOUNDATION
Employee Share
Ownership Plan (ESOP)
Guidelines
February 2006
The New Brunswick Innovation Foundation (NBIF) supports the development and growth of promising, innovation-
based start-up and early stage companies in New Brunswick by providing companies and entrepreneurs with
enhanced access to risk capital and value-added support to ultimately allow them to grow and succeed.
For more details on the NBIF and its investment funds, please visit our website at www.nbif.ca
NBIF ESOP Guidelines
2/11
NEW BRUNSWICK INNOVATION FOUNDATION
FONDATION DE L’INNOVATION DU NOUVEAU-BRUNSWICK
Table of Contents
INTRODUCTION.........................................................................................................................................................3
WHAT IS AN ESOP? .................................................................................................................................................4
ESOP OBJECTIVES..................................................................................................................................................5
ESOP COSTS VERSUS BENEFITS .......................................................................................................................6
STOCK OPTIONS FOR START-UPS AND SMALL COMPANIES ...................................................................6
ESOP EXAMPLE........................................................................................................................................................7
CONCLUSION ............................................................................................................................................................9
GLOSSARY OF TERMS .........................................................................................................................................10
RESOURCES....................................