Medline Employee Stock Purchase Plan FAQ
U.S. & Mexico
What is the Employee Stock Purchase Plan (ESPP), and why is Medline offering it?
Following our transition to a public company, Medline is introducing an ESPP as part of
our Total Rewards offering for employees in the U.S. and Mexico. The ESPP is a new
program that allows eligible employees in the U.S. and Mexico to purchase Medline stock
at a discounted price. This program gives employees the opportunity to share in what
we’re building together by becoming owners of Medline through stock ownership.
Who is eligible to participate?
At this time, the ESPP is available to employees in the U.S. and Mexico.
• Must be a full-time or part-time (20+ hours/week) Medline employee in the U.S. or
Mexico.
• Must be employed at Medline for at least 90 days prior to start of offering period. For the
initial offering period, must be employed on or before March 17, 2026.
What is the timing for the ESPP?
Key dates are as follows:
• May 15 – June 10, 2026: Initial enrollment period. Eligible employees may choose to
enroll during this time, which includes selection of contribution methods and levels.
• June 16 – December 15: Offering period. Payroll deductions occur, if selected.
• December 15: Purchase date. Medline stock is purchased on behalf of enrolled
employees using their contributions from payroll deductions and/or their one-time
Medline IPO cash award made during the offering period.
• There will be future enrollment windows if an employee wishes to participate at a later
date.
What is the discounted price that Medline employees can access using the ESPP?
Employees participating in the ESPP will be able to purchase Medline stock through the
ESPP at the end of the offering period at a 15% discount off the lowest of the close-of-day
stock price of either June 16 or December 15 (the first and last dates of the offering
period). For example, if the close-of-day stock price is $40 on June 16 and $45 on
December 15, your purchase price would be 15% off $40.
How does the ESPP work?
• Employees who choose to participate in the ESPP will enroll using a simple online
process through Fidelity. Participation is completely voluntary.
• During the enrollment process, there are three ways for employees to contribute
towards purchasing company stock:
1. Using ongoing payroll deductions between 1-15% of their total eligible pay
2. Using the net amount of their one-time Medline IPO cash award (if they were at
Medline at the time of our December 17, 2025 IPO and are employed on
December 1, 2026)
3. Using both ongoing after-tax payroll deductions and the after-tax amount of their
one-time Medline IPO cash award
• Between June 16 – December 15, contributions accrue based on the option(s) an
employee elects, which may include ongoing payroll deductions and/or application of
the Medline award.
• On December 15, Medline purchases company stock on behalf of enrolled employees
using their accrued contributions. The purchase price will be the lower closing stock
price at the start or end of the offering period (June 16 or December 15).
Following this first ESPP offering period, how can employees contribute to their
ESPP?
After the initial ESPP offering period, employees who are enrolled or who enroll during a
future enrollment window may contribute only through ongoing payroll deductions (i.e., the
one-time Medline IPO cash award cannot be used to contribute for later purchases).
Deductions are made each pay period and applied toward stock purchases at the end of
each six‑month offering period, based on the employee’s elected contribution rate (1 – 15%
of total net pay).
When can an employee change their ESPP contribution level?
Employees can change their contribution level during designated enrollment or change
periods, in accordance with the ESPP rules. Employees should review plan details and
timelines to understand when changes can be made.
When can an employee withdraw from the program?
Employees may withdraw from the program during the offering period. Any changes made
will apply on a go-forward basis and will not affect stock that has already been
purchased. Employees should review plan details and timelines to understand when
changes can be made.
What is the benefit of participating in the Medline ESPP vs buying Medline stock
independently?
By participating in the Medline ESPP, you will receive a 15% discount on the lower closing
stock price at the start or end of the offering period (June 16 or December 15). Medline
automates the purchase for employees and sets up the recordkeeping in Fidelity. As an
employee, this program is an opportunity to become an owner of the company and share
in what we’re building together.
Is participation required?
No. Participation in the ESPP is completely voluntary.
How is the ESPP funded?
Stock purchases are funded through the contribution method you select. You may opt for
payroll deductions, and/or, if eligible, use your one-time Medline IPO cash award to fund
your ESPP. You may also contribute to your ESPP using both payroll deductions and your
one-time Medline IPO cash award (if eligible).
How can I use my one-time Medline IPO Cash Award to participate in the ESPP?
The net amount (after taxes and other payroll deductions) of your one-time Medline IPO
cash award can be used to kickstart your initial ESPP participation. Rather than receive
your one-time Medline IPO cash award as a cash payment in December 2026, it would
instead be applied to your ESPP contribution account towards the purchase of Medline
stock.
How do ongoing payroll deductions work for the ESPP?
If you enroll in the ESPP and opt to contribute using payroll deductions, you will select a
contribution percentage between 1 - 15% of your total eligible pay. This contribution will be
automatically deducted from each paycheck and applied to your ESPP contribution
account. These deductions will continue each pay period unless you choose to change
your contribution or stop deductions.
How are my ESPP contributions taxed?
ESPP contributions are made using after‑tax payroll deductions.
Is the 15% discount taxable?
Yes. The value of the discount is taxable to the participant.
What happens to my payroll deductions if I leave Medline after I’ve made
contributions to my ESPP fund, but before stock is purchased?
Any contributions you’ve made will be refunded to you through payroll. No stock will be
purchased, and you’ll receive the full amount you contributed back.
What happens to my stock that was purchased through the ESPP if I leave the
company?
Any company stock you’ve already purchased through the ESPP remains yours if you leave
the company. It will remain in your account, and you can choose to hold it or sell it
according to the plan guidelines.
When do I actually become an owner of Medline stock?
If you enroll in the ESPP, you become an owner as of the purchase date. For this initial
offering, that date is December 15, 2026.
Where can I view my stock after it is purchased?
If you don't already have a Fidelity account with Medline, we will automatically set one up
for you once you enroll in the ESPP. Fidelity is the company that manages ESPP
administration for Medline. Your stock that was purchased through the ESPP will be visible
on the Fidelity site.
Is this a one-time opportunity to participate?
No, the ESPP will be offered on an ongoing basis, and eligible employees will have future
opportunities to enroll. However, using the one-time Medline IPO cash award to fund
contributions is only available during this initial enrollment period. Contributions for future
enrollment periods will be made through payroll deductions only.
Where can I learn more about the ESPP program?
Additional information including information sessions (live or recorded), resources, and
educational materials will be made available on The Source and at all U.S. & Mexico sites
to help you learn more about the program and make an informed decision about
participation.
Who should I contact with questions?
If you have any additional questions, please reach out to your HR representative