Employee Stock Purchase Plan (ESPP)

Cummins Employee Stock Purchase Plan (ESPP)

Cummins offers a variety of programs to help you build long-term wealth and retirement savings. The Employee Stock Purchase Plan (ESPP) is one of these programs.

What is ESPP?

ESPP gives you the opportunity to purchase Cummins Why Buy through ESPP?

stock at a discounted rate. There are no brokerage fees

and Cummins pays any administrative fees. By enrolling in Get a 10% discount

the program, you can purchase shares of Cummins stock

off the market value of

at a 10% discount off the market value.

Cummins stock

Who is eligible?

Where ESPP is available, all active employees are eligible to enroll in the Employee Stock Purchase Plan (ESPP) at any time on or after their first day of employment.

There are no brokerage fees to pay

Cummins pays most service and

How does it work?

administrative fees

You can elect to have 1-15% of your base pay withheld

each pay period to use toward the purchase of Cummins stock. Once your enrollment is

processed, payroll deductions in the amount specified will begin on the next available payroll

cycle. You will also notice a line item on your paystub for ESPP Imputed Income. This is the

amount equivalent to the 10% discount that is contributed by Cummins on your behalf. All

deductions are withheld post-tax. Your accumulated monthly deductions and imputed income

will be used to purchase partial/full shares of Cummins stock on the 5th of the following month

for US purchases and the 10th of the following month for Int'l purchases. If the purchase date

falls on a weekend or holiday, the purchase will be made on the preceding business day. The

share purchase price will be determined by the open market price at the time of the purchase.

How do I enroll or change my contribution?

Where automated enrollment is available, you may enroll/adjust your contribution at . Click on "Enroll or adjust your contributions". You will be required to enter the Cummins stock/ticker symbol (CMI) and your personal identifiable information in order to access the enrollment page. If you do not have access to the internet, you can also enroll by phone by contacting a Morgan Stanley Customer Representative at (800) 367-4777 or (801) 617-7414 (outside U.S.) Where on-line enrollment is not available, please check with your line HR to obtain the necessary ESPP enrollment/change form.

How can I access my share account?

After the initial stock purchase, Cummins will establish an account in your name at Morgan Stanley, the ESPP administrator. Morgan Stanley will then send you an account activation link via email that will allow you to register and view your account on-line. If you do not have a Cummins email address, you will receive your registration details through regular mail at your home address. You will also receive monthly transaction statements from Morgan Stanley which will allow you to track the value of your account. Shares can be sold or transferred at any time. You will be charged a commission fee by Morgan Stanley when you sell your shares. If you liquidate your account, there is a 6 month waiting period before you can re-enroll.

Revised: March 2015

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