SHAREWORKS EXERCISE PROCESS

Transcription

1 SHAREWORKS EXERCISE PROCESS Solium Shareworks facilitates real time TSAR exercises from your Stock Option Plan. This guide provides step by step instructions for performing exercise transactions facilited through Shareworks.

2 Table of Contents This exercise guide will assist you to: I. Understand the different types of exercises...3 II. Exercise your options as a Cash Settled Share Appreciation Right (SAR) Exercise...4 III. Exercise your options as a Cash Purchase Exercise and Hold the Shares...0

3 I. Understanding the different types of exercises There are two types of stock option transactions that you can complete within Solium: a cash settled share appreciation right (SAR) exercise or a cash purchase exercise to hold the shares. Cash Settled Share Appreciation Right (SAR) Exercise You can choose to surrender your stock options and receive a cash payment for the exercise of SARs. Solium facilitates this cashless exercise and any applicable taxes will be deducted from the proceeds prior to you receiving the payment. This is the most common form of stock option transaction. Cash Purchase Exercise and Hold the Shares You can convert your options to stock and hold the shares. You will be required to send in payment to purchase the shares and any applicable taxes within the specified timeframe to proceed with the transaction. Shares will then be sent to you per your delivery instructions. For further information regarding exercising your options please refer to the FAQ and Glossary available in the Personal Profile & Passwords section in Shareworks. Alternatively, you may contact Solium at or [email protected] for further assistance. HELPFUL HINT: Prior to beginning your exercise, please ensure you have your transaction password. You will require this password in order to complete an online exercise. If you do not have your transaction password, please contact Solium s Participant Services Group at during customer support business hours in order to obtain a temporary transaction password. Please note that for security purposes this password cannot be provided to you via . 3

4 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise To complete a cashless exercise of your options, you will need to complete the following steps. On the Employee Portfolio Summary page, you will see a chart of the option plans in which you participate. Click on either the A Stock Options and Awards tab or B Tandem SARs within the table to access a more detailed summary of your grants. A B 4

5 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise Once selected, you will be directed to the Account Summary page. The options available to exercise are indicated with the Exercise link in the far right column. Click on the Exercise link that corresponds with the options you wish to exercise. For example, to exercise the options in the March 3, 0 grant, click on the Exercise link corresponding to this grant. PLEASE NOTE: If an exercise link does not appear on the screen, your holdings are not available to exercise. This could happen for multiple reasons such as your options are not yet vested, you are currently in a blackout period, or you have not agreed to the online agreements. Click Exercise to choose the grant you would like to exercise. IMPORTANT NOTE! If you are deemed to be a Reporting Insider of the Corporation (which typically includes Directors of the Board, Officers and their administrative assistants, and certain other designated individuals), you must receive advance written approval from the General Counsel or his or her designate prior to exercising any options. For more information on your securities trading and reporting obligations, please refer to the CTC Securities Trading and Reporting Manual. 5

6 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise DETERMINE THE EXERCISE PARAMETERS Choose the type of exercise you wish to complete by selecting from the list. For the cashless exercise, choose Cash settled SAR exercise. The share price for the cashless exercise is determined based on the daily weighted average share price (also known as volume weighted average price) as calculated by Solium after the market has closed. The estimated proceeds within the exercise process are based on the current market price and are not reflective of the final proceeds for the participant. You can access your account the following day to view the final share price and proceeds. 3 Enter the quantity of options you wish to exercise. Click Continue. HELPFUL HINT: You can view the real time stock quote throughout the exercise process. Click on Refresh Quote at any time to see the most up-to-date stock quote as you proceed with your exercise instructions. 3 6

7 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise REVIEW THE EXERCISE DIRECTION FORM Review the exercise direction form carefully to confirm the details of your request. Click Print for your records. Click Continue. IMPORTANT NOTE! If you are a Reporting Insider of the Corporation your Exercise Direction Form will include the following additional statement: I confirm that I have received advance written approval from the Senior Vice-President, Secretary and General Counsel or his or her designate to execute the following trade. Please ensure you have received the appropriate approvals prior to finalizing the transaction. HELPFUL HINT: You can return to any previous step by clicking Go Back. 7

8 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise VERIFY THE TRANSACTION DETAILS AND SUBMIT Verify all information regarding your exercise request. 3 Enter your transaction password. Click Submit Exercise. PLEASE NOTE: If you place an order after the markets have closed, you will receive a warning message at the top of the screen to inform you of the market close. In this case, you will need to enter your transaction password twice to indicate that you do wish to proceed with the order when the market opens. PLEASE NOTE: You must provide your contact information should Solium need to contact you regarding your exercise. 8 3

9 II. Exercising your options as a Cash Settled Share Appreciation Right (SAR) Exercise RECEIVE A CONFIRMATION OF THE EXERCISE Your exercise request is complete and you are provided with an exercise reference number for your records. Remember: The proceeds provided within the exercise process are estimates only. You can access your account the following day to view the final share price and proceeds. Next Steps: On the first business day following the completion of your transaction within Solium, Canadian Tire will be notified of the exercise. The Payroll department will contact you to request confirmation of your preferred payment method (i.e. by cheque or through direct deposit on your next scheduled pay). 9

10 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares To complete a real time exercise of your options in which you purchase and hold the shares, you will need to complete the following steps. On the Employee Portfolio Summary page, you will see a chart of the option plans in which you participate. Click on either the A Stock Options and Awards tab or B Tandem SARs within the table to access a more detailed summary of your grants. A B 0

11 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares You will be directed to the Account Summary page and the options available to exercise are indicated with the Exercise link in the far right column. Click on the Exercise link that corresponds with the options you wish to exercise. For example, to exercise the options in the March 3, 0 grant, click on the Exercise link corresponding to this grant. PLEASE NOTE: If an exercise link does not appear on the screen, your holdings are not available to exercise. This could happen for multiple reasons such as your options are not yet vested, you are currently in a blackout period, or you have not agreed to the online agreements. Click Exercise to choose the grant you would like to exercise. IMPORTANT NOTE! If you are deemed to be a Reporting Insider of the Corporation (which typically includes Directors of the Board, Officers and their administrative assistants, and certain other designated individuals), you must receive advance written approval from the General Counsel or his or her designate prior to exercising any options. For more information on your securities trading and reporting obligations, please refer to the CTC Securities Trading and Reporting Manual.

12 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares DETERMINE THE EXERCISE PARAMETERS Choose the type of exercise you wish to complete by selecting from the list. For the exercise and hold transaction, choose Exercise options and hold the shares. The share price used for the purposes of determining the provincial tax withholding is based on the last trade price at the time of the exercise. 3 Enter the quantity of options you wish to exercise. Click Continue. 3

13 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares SPECIFY THE DELIVERY INSTRUCTIONS Enter the delivery method for the shares by choosing from one of the following selections: Mail certificate to a Solium Financial account. Send shares to mailing address. Mail certificate to broker. Click Continue. 3

14 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares REVIEW THE EXERCISE DIRECTION FORM Review the exercise direction form carefully to confirm the details of your request. Click Print for your records Click Continue IMPORTANT NOTE! If you are a Reporting Insider of the Corporation your Exercise Direction Form will include the following additional statement: I confirm that I have received advance written approval from the Senior Vice-President, Secretary and General Counsel or his or her designate to execute the following trade. Please ensure you have received the appropriate approvals prior to finalizing the transaction. 4

15 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares VERIFY THE TRANSACTION DETAILS AND SUBMIT Verify all information regarding your exercise request Click Submit Exercise IMPORTANT NOTE! If you plan on exercising as a Cash Purchase and Hold the Shares during the last three business days immediately preceding the option expiry date, the cheques must be received by the Payroll Department no later than the last business day immediately preceding the option expiry date. The transaction must be recorded as complete, which is verified through receipt of the cheques by Payroll, prior to the option expiry date. If the cheques are not received by the last business day immediately preceding the option expiry date, the transaction will be null and void and cancelled in Solium. PLEASE NOTE: You must provide/confirm your contact information should Solium need to contact you regarding your exercise. 5

16 III. Exercising your options as a Cash Purchase Exercise and Hold the Shares RECEIVE A CONFIRMATION OF THE EXERCISE Your exercise request is complete and you are provided with an exercise reference number for your records. Next Steps: On the first business day following the completion of your transaction within Solium, Canadian Tire will be notified of the exercise. At this time, you will also be contacted by the Canadian Tire Payroll department to confirm the delivery of the two cheques you are required to provide to complete the transaction. Once the cheques have been received by Canadian Tire, the Payroll department will confirm the completion of the transaction within Solium and the shares will be delivered to you according to your delivery instructions. 6

17 Contact Solium or phone Solium s Participant Services Group for assistance. Toll Free: [email protected] Online: