How to use this template
 Description
– This template allows you to explain the rules/details of your plan, as
well as introduce Solium as your new Administrator. Use the slides
you find applicable and customize content according to your plan
rules. Create slide notes to assist the presenter with the presentation
of the information.
 Goal
– Inform plan participants of plan information and transition to Solium
 Timing
– Date of launch (Go LIVE date)
 Distribution
– Webinar, presentations, road shows, intranet
 Branding
– Use your branding, corporate PowerPoint template
ACME Co.
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Plan Name
Jane Smith
December 15, 2008
Agenda
Section I:
Plan Overview
Section II:
Plan Administration
Section III:
Managing your portfolio through Shareworks
Section IV:
Key Dates
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Section I
Plan Overview
Stock Market
 Why own stock?
– Benefit from Company success
– Receive voting rights (if applicable)
– Investment vehicle
 What is an option?
– A company grants an employee the right to purchase shares of
the company at some time in the future at a specified price
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<Company> Stock Price
 Stock Symbol:
<stock symbol>
 Exchange:
<exchange>
 Current price:
<$price>
Customization Tip:
Include graph of stock performance for last 6 months, etc. to portray
the increase (or decrease) in stock performance over time.
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Benefits of <Plan Name>
 Employee reward / incentive plan
 Opportunity to hold <Company> stock
 <Company’s> success = your success
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Grant Parameters
 Award schedule
 Grant price
 Vesting rules
 Expiry dates
 # of options/awards
 Termination/extended leave rules
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Tax Implications
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Common Terms
 Company Proceeds (Total Option Cost)
– The amount you must pay back to the company for the options
– # of options x grant price
 Stock Option Benefit
– The benefit (gain) is the difference between the Grant price and the Market
price at the time of transaction
– # of options x [market price – grant price]
 Participant Proceeds
– The amount the participant receives after deductions are made, such as
company proceeds, tax withholding, brokerage commission, and transaction
fees
 In the money
– The market price at time of exercise is higher than the grant price
 Underwater
– The market price at time of exercise is lower than the grant price
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Exercise/Redemption Example
1,000 options granted at $10
Exercised at market price of $20
Tax withholding rate is 39%
 Trade Proceeds
• 1,000 shares x $20/share = $20,000
 Cost of Options (Company Proceeds)
• 1,000 shares x $10/share = $10,000
 Stock Option Benefit (Trade Proceeds – Cost of Options)
• $20,000 - $10,000 = $10,000
 Participant Proceeds*
• $10,000 – (39%) = $10,000 - $3,900 = $6,100
* Less applicable transaction, banking fees, and brokerage commission
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Blackout Periods
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Exercise Types
Type 1 - Exercise and sell all shares on the market
– An optionee can take the options, convert them to stock and sell all of the
stock immediately. The Stock Options and Awards module facilitates a
"cashless exercise" where optionees convert their options into stock without
having to put up personal funds. Payment to the company is made upon the
settlement of the sale proceeds.
 Type 1.5 - Exercise options, sell just enough shares to pay for the options
and hold the remaining shares
– An optionee can convert their options to stock, sell a portion of the stock and
hold the remainder to sell at a later date. The Stock Options and Awards
module facilitates a "cashless exercise" where optionees convert the
necessary amount of options into stock without having to put up personal
funds. The optionee will then be provided a share certificate for the remaining
shares.
 Type 2 - Exercise options and hold the stock
– An optionee can convert the options to stock, and hold the stock. This is not a
cashless exercise. The optionee must provide payment for the stock. Solium
must receive a certified check from the optionee within three business days of
the exercise and hold submission to proceed with the exercise and the
production of a share certificate to the optionee.
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Order Types
 Market Order
– Sell your shares at the current market price
 Limit Order
– Specify the price you would like to sell your shares
– Valid for 30 calendar days; if the market price does not meet
the limit order price, the order will be cancelled
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Section II
Plan Administrator
New Plan Administrator
Solium Capital Inc
www.solium.com
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Benefits of Solium
 Login online to your Shareworks account anytime, anywhere
 Direct access to financial markets for seamless transactions
 Self-serve online statements
 View complete history of all transactions
 Automated alerts on vesting periods, expiry of awards, and blackouts
 Discounted brokerage fees
 No need for individual brokerage accounts
 Phone and email support
 Service Center hours are 8am to 8pm ET, Monday through Friday
 Available to answer your questions or support you through the exercise
process
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Section III
Managing your portfolio through
Shareworks
Step 1: Account Activation
 Open your Shareworks account online at
www.solium.com/activate
 Complete short activation form requesting contact information
 Your Shareworks account details will be mailed to you
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Step 2: Login to Shareworks
 Log in at www.solium.com/login
 Enter Account Number and Password
 Review and Accept Agreement(s)
 Verify grant information
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Step 3: Manage Your Profile
 Go to the Personal Profile & Passwords tab to manage your:
– contact information such as mailing address, phone numbers,
and personal email
– bank account information
– brokerage account information
– login and transaction passwords
– alternate login
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Exercising Your Options
Step 1 - Parameters
– Enter the number of options you would like to exercise
– Select the type of exercise (Type 1, 1.5, 2)
Step 2 - Delivery
– Choose how you would like to receive your proceeds (Direct
Deposit, Bank Wire, Check by Mail)
Step 3 - Specify Order Type
– Choose order type (Market or Limit)
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Exercising Your Options – Cont’d
Step 4 - Review Agreement
– Read and accept an Exercise Direction letter that outlines your
exercise details
Step 5 - Verify
– Verify your exercise details, instructions, and order information
– Enter your transaction password
Step 6 - Confirmation
– Once exercise is completed, you will receive a confirmation
number
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Fees
 Solium Transaction Fees
– $XX transaction fee
– $XX additional fee when placing Limit Orders
– $XX additional fee when transacting through Solium’s Service
Center
 Brokerage Commission
– $XX for trades < 1000 shares
– $0.0X for trades >= 1000 shares
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Fees – Cont’d
 Disbursement Fees
– Check by Mail - $XX USD
– Bank Wire - $XX USD
– Bank Wire (International) - $XX USD
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Section IV
Key Dates
Key Dates
 Launch on Shareworks:
 Activate accounts by:
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Employee Action
Customization Tip:
If applicable, you may want to includes steps that employees need to
take, etc
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Contact Solium
Online:
www.solium.com
Email:
help@solium.com
North America: 1.877.380.7793
International:
International code + 1 + 403.515.3909
Hours:
8am - 8pm ET, Monday - Friday
Customization Tip:
Adjust the time zone based on your audience.
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Questions?