Use the procedures and guidelines in this policy to handle stock options when an employee's employment is terminated. This policy ensures that terminated employees are aware of their rights and obligations regarding vested and unvested stock options. It mandates that terminated employees must exercise any vested options within 30 days, or they will be automatically canceled. The document details the step-by-step process for HR representatives to manually terminate employees in various systems, update payroll, and manage the transfer of data to the online equity administrator.

Additionally, it describes how IT and financial analysts handle errors in the optionee file and ensure accurate records. For U.S. employees, errors are corrected directly in the payroll system, whereas non-U.S. employees' terminations are managed locally. The policy also specifies different scenarios, such as terminations due to death or disability, where unexercised and vested options are canceled 12 months after termination. This comprehensive policy ensures clarity and consistency in managing employee stock options upon termination, safeguarding both the company's and employees' interests.

Best-practice procedures include:

• IT electronically submits client system files to the online equity administrator weekly every (Insert Day).
• The financial analyst obtains the error file from the online equity administrator drop box.
• The financial analyst reviews the error file.
• The financial analyst contacts the designated client system representative (at the plant) to resolve the exception/error.