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Employee Stock Options Cashless Exercise HNW_NRG_C_Inset_Mask Employee stock options Cashless exercise Taking advantage of than the current market value. sign a margin account agreement,* your options Any time you wish to exercise your cashless letter and (if needed) a Employee stock option plans provide stock purchase option, you pay the stock power, which will allow RBC a convenient method for investing in predetermined price, regardless of Wealth Management to process your company’s stock enabling you the current market value. the stock. to grow with the company and realize • RBC Wealth Management will sell a direct benefit from its success. “Cashless” exercise of your your stock and wait until the shares Taking advantage of your company’s employee stock options are delivered from your company employee stock option program In 1987, the Federal Reserve Board to your RBC Wealth Management may be one of the wisest investment amended lending regulations allowing account. In doing so, RBC Wealth decisions you can make. But how do employees to exercise stock options Management provides you with a you go about it? with no personal outlay of cash. RBC loan by issuing a check payable Exercising your employee stock Wealth Management is able to offer to your employer for the amount options doesn’t have to be you financing* for your employee of your employee stock options. complicated. In fact, RBC Wealth stock option exercise at competitive You will be charged interest from Management can handle the entire rates. Instead of borrowing money the date of payment until your transaction for you, including from a bank or other lending shares are delivered or through financing your initial purchase. In institution, RBC Wealth Management settlement date. addition, we’ll contact your company can loan you the funds to exercise • Your RBC Wealth Management before we conduct any transactions your employee stock option.* And in financial advisor will let you to ensure that your company’s many cases our rates may be lower know when your stock has been employee stock option exercise than those of our competitors. deposited in your account. procedures are followed. We will lead you through the process Once the exercise is complete, you of exercising your options and loan Why RBC Wealth Management? you the funds by selling either all or can sell your shares immediately RBC Wealth Management’s dedicated part of your stock to cover the cost of or hold your shares and sell team of professionals is backed your employee stock option exercise. them at a later date.* Your RBC by the expertise of equity traders, Wealth Management financial NYSE floor brokers, listed traders advisor can also advise you on Here’s how it’s done and institutional equity sales reinvestment opportunities. • Your company will provide you professionals. When you decide with an Employee Exercise Notice to sell your stock, RBC Wealth What are employee and a Letter of Intent stating that Management will act promptly to stock options? after your employee stock options efficiently process your stock option Public companies often reward are exercised, your shares will exercise, making sure that the sale employees with the option of buying be delivered to your RBC Wealth of your stock complies with SEC company stock. When you receive Management account. Rule 144 if applicable. And if you’d your options, a pre-determined like to reinvest your sale proceeds, • You will set up an RBC Wealth RBC Wealth Management has exercise price and expiration is Management account to which set. This price is often times lower the experience and knowledge to your shares will be delivered, and assist you. Investment and insurance products offered through RBC Wealth Management are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, or guaranteed by, a bank or any bank affiliate, and are subject to investment risks, including possible loss of the principal amount invested. Page 2 of 2 Employee stock options, continued For complete investment services, including the exercising of employee stock options, your RBC Wealth Management financial advisor is there to answer your questions, provide step-by-step service and to help you meet your financial goals. Because at RBC Wealth Management, we make it a point to know our clients and their needs, and provide personalized, ongoing attention to their individual situation and goals. * Purchasing securities on margin may not be suitable for all investors. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. Before you sign a Margin Agreement, it is important that you read and fully understand the Margin Disclosure Statement, which describes additional risks involved in trading securities on margin. © 2020 RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. All rights reserved. 20-71-03379_7111 (10/20).
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