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To us there are no foreign markets. ™ Understanding Your Employee Stock Option Plan June 2014 To us there are no foreign markets. ™

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Presentation on theme: "To us there are no foreign markets. ™ Understanding Your Employee Stock Option Plan June 2014 To us there are no foreign markets. ™"— Presentation transcript:

1 To us there are no foreign markets. ™ Understanding Your Employee Stock Option Plan June 2014 To us there are no foreign markets. ™

2 What is an Employee Stock Option? Key point – to remove, switch to “No strapline” layout Page 2 An employee stock option gives you the right to purchase a certain number of shares in the company at a fixed price over a specific period of time.

3 To us there are no foreign markets. ™ Components of an Option Key point – to remove, switch to “No strapline” layout Page 3 Number of shares Exercise price Vesting period Expiry date

4 To us there are no foreign markets. ™ Reasons for the company to grant employee stock options Key point – to remove, switch to “No strapline” layout Page 4 Financial compensation designed to motivate and reward employees for productivity and decision making Incentive for hard work and excellence Added reason to care bout the success of the company A means to attract and retain high quality employees

5 To us there are no foreign markets. ™ Advantages to the Employees Key point – to remove, switch to “No strapline” layout Page 5 Financial gain Increased job satisfaction and motivation Opportunity to participate in the success of the company You establish your own target price

6 To us there are no foreign markets. ™ Outcomes Key point – to remove, switch to “No strapline” layout Page 6 In a perfect world, this results in a Win-Win situation for the company and the employee.

7 To us there are no foreign markets. ™ The “Cashless Stock” Option Exercise Short Sale: Sale of stock you don’t own Subject to short selling rules Definition: A Short Sale of a stock to fund the cost of the exercise Page 7

8 To us there are no foreign markets. ™ The “Cashless Stock” Option Exercise Key point – to remove, switch to “No strapline” layout Page 8 When the stock nears your chosen target price, call us and we will initiate the “Cashless Option” exercise process: Step 1:  Complete a Letter of Authorization confirming all the details of the option exercise Step 2:  You provide the acting administrator with the Notice of Exercise. Registration instructions on the share certificate should read “Canaccord Genuity Corp ITF Jane Doe” Step 3:  We quickly notify your administrator to confirm the option positions, receipt of notice of exercise and also to ensure that the company is not in a trading blackout

9 To us there are no foreign markets. ™ The “Cashless Stock” Option Exercise Key point – to remove, switch to “No strapline” layout Page 9 Step 4:  Once the company has validated the notice, we can proceed with your sale Step 5:  Once the stock is sold, we will confirm the sale with you and your administrator Treasury order is issued Step 6:  When your certificate is printed by the transfer agent, we are notified Step 7:  A cheque payable to the company for the amount owing is then sent over to the company via courier and your share certificate is delivered to Canaccord

10 To us there are no foreign markets. ™ The “Cashless Stock” Option Exercise Key point – to remove, switch to “No strapline” layout Page 10 Step 8:  Once your share certificate has been deposited into your account, your net proceeds become available to Electronically transferred to your bank Cheque mailed to your address Cheque for pick up Step 9:  We confirm the transfer of your funds

11 To us there are no foreign markets. ™ Timeline for the whole process from start to finish Key point – to remove, switch to “No strapline” layout Page 11 5 to 6 business days  3 Day Settlement + 1 day courier + 1 day to deposit the certificate into your account Occasionally a delay will occur  Backlog at the Transfer Agent’s office  Statutory Holidays

12 To us there are no foreign markets. ™ Things to be aware of…. Key point – to remove, switch to “No strapline” layout Page 12 Vesting Trading Blackout  When employees are not permitted to exercise options or trade in company shares News Financial statements Material change Insider Information  Knowledge or possession of information which is not generally known to the public Taxes  Please consult your accountant

13 To us there are no foreign markets. ™ Our Goal Key point – to remove, switch to “No strapline” layout Page 13 To create an efficient and stress-free process to assist you with the exercise of your employee stock options

14 To us there are no foreign markets. ™ Disclosure Key point – to remove, switch to “No strapline” layout Page 14 This presentation is solely the work of the author for the private information of clients. Although the author is a registered investment advisor at Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp. (“Canaccord”), this is not an official presentation of Canaccord Genuity Corp. and the author is not a Canaccord analyst. The views (including any recommendations) expressed in this presentation are those of the author alone, and are not necessarily those of Canaccord Genuity Corp. The information contained in this document has been compiled by Tom Cox from sources believed to be reliable, but no representation or warranty, express or implied, is made by the author or Canaccord, its affiliates or any other person as to its accuracy, completeness or correctness. All estimates, opinions and other information contained in this document constitute his judgment as of the date of this document, are subject to change without notice and are provided in good faith but without legal responsibility or liability. Canaccord Genuity Corp. and its affiliates may have an investment banking or other relationship with the companies that are the subject of this report and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, Canaccord Genuity Corp. or their affiliates may at any time have a long or short position in any such securities, related securities or in options, futures or other derivative instruments based thereon. This document is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the securities discussed in this report may not be eligible for sale in some provinces. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, neither Canaccord Genuity Corp., its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of the information contained in this report. Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. Member-Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Copyright © Canaccord Genuity Corp. 2013.


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