2. 1 Your Option Term and Vesting Grant 1st3rd4th2nd6th7th9th10th8th 1/4 vests each year Exercise anytime after vesting, until end of term 5th 25% 50% 75% 100%

3. 2 How Your Stock Option Benefits You Option grant received Exercise 50% of options 1/3 Vested 2/3 Vested100% Vested

4. 3 How the Stock Option Pays Benefits $45.00: market value at sale $13.00: exercise price Pay nothing Gain another $20 per share See intranet for tax information in your country $25.00: market value at exercise Pay $13.00, gain $12 per share

5. 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