1

Your Option Term and Vesting

Grant 1st 3rd 4th2nd

6th 7th 9th 10th8th

1/4 vests each year

Exercise anytime after vesting, until end of term

5th

25% 50% 75% 100%

2

How Your Stock Option Benefits You

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Stock Price

Option grantreceived

Exercise 50% of options

Exercise 50% of options

1/3

Veste

d

2/3

Veste

d

100%

Ves

ted

3

How the Stock Option Pays Benefits

$45.00: market value

at sale

$13.00: exercise

pricePay nothing

Gain another $20 per share

See intranet for tax

information in your country

$25.00:market value at exercisePay $13.00, gain

$12 per share

4

When Option Gains are Taxed

The “basis”

$13.00 exercise price

“Realized gain” $20 per share $25.00:

market value at exercise

The new basis, if unrealized gain is taxed

“Unrealized gain” $12 per share

$45.00:market value

at sale