equity award services at your fingertips...arconic inc. stock incentive plan equity award services...
TRANSCRIPT
Arconic Inc. Stock Incentive Plan
Equity award services at your fingertips
2 | Award access and support
Online
Benefits OnLine® www.benefits.ml.com
To view portions of the website in another language, select Benefits OnLine International at the top of the Login page and follow the prompts. Benefits OnLine will remember your language each time you log in (from the same computer).
When you see this click-to-chat icon you can connect with a live agent for assistance.
Merrill Lynch financial advisor
Corporate Services Advisory Team (Your financial advisor team)1.800.937.0526 or 1.212.236.5574 Call 8 a.m. to 6 p.m. Eastern, any day the New York Stock Exchange is open.
From outside the U.S., Puerto Rico or Canada: AT&T access code +1.800.937.0526 or 1.212.236.5574
Phone
Participant service representatives and voice response system (virtually 24/7)
1.844.785.7262 (844-STK-RCNC) To access the phone system, you can choose to use your Social Security number, Benefits OnLine ID or internal verification number (non-U.S. participants).
From outside the U.S., Puerto Rico or Canada: AT&T access code +1.844.785.7262 or dial direct +1.609.818.8894
Mobile
Benefits OnLine Mobile www.benefits.ml.comOnce you have access to Benefits OnLine, this mobile-optimized website lets you check your grants, accept your awards (if required by your plan), receive important alerts, and more, on most smartphones. (Carrier fees may apply.)
Equity Awards Education Center go.ml.com/equityedThe Equity Awards Education Center on Benefits OnLine offers the resources that can help you understand your awards, manage and monitor those awards, and learn how the potential income from your awards could help fund the financial priorities that matter to you.
The Education Center features a series of short videos, quick tips and articles that you can access at your convenience.
This brochure is a general description of Merrill Lynch’s equity plan services. Your equity awards are subject to the terms of your company’s plan, any agreement between you and your company covering your equity awards, and the prospectus provided to you by your company. Any transactions in connection with your plan in your Merrill Lynch brokerage account are subject to the terms and conditions of that account. This brochure does not constitute an offer or invitation to buy any securities. Any offer to buy securities from your company would be made only by a prospectus in accordance with the Securities Act of 1933 as amended. Refer to the accompanying materials for information provided by your company about your specific program.
Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation (BofA Corp.). MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA Corp.
Investment products:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
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Equity awards can be an important part of your overall compensation, and can help you finance many of your life’s priorities — from family to leisure, from health care to college planning.
That’s why Merrill Lynch offers a wide range of resources to help you manage and monitor your awards, including Benefits OnLine. Through Merrill Lynch, you have access to:
• Detailed information about your awards, online or by phone
• Online modeling and transaction capabilities
• Online statements, confirmations, and forms
• An online Education Center with information to help you understand equity awards and how they work
This brochure is a practical guide to managing your equity awards with Merrill Lynch. It includes step-by-step instructions for getting started. Please keep this guide with your award agreements and related plan documents as a reference.
If you are a director, executive officer, associate or other person subject to Rule 144 or Section 16 of the Securities Exchange Act of 1934, as amended (“Section 16 persons”), you will work directly with your financial advisor team to open your brokerage account and conduct transactions. You will still enjoy the convenience of online access to your award and account information as well as other helpful resources.
What’s inside
Getting started
Step 1. Create your User ID and password. . . . . . . 4
Step 2. Open your Merrill Lynch brokerage account. . . . . . . . . . . . . . . . . . . . . 4
Step 3. Set up wire instructions. . . . . . . . . . . . . . . . 5
Step 4. Select your delivery preferences . . . . . . . . 5
Other important steps
Transfer company stock to your new Merrill Lynch brokerage account . . . . . . . . 6
W-9 and W-8BEN certification . . . . . . . . . . . . . . . . . 7
Quick guide to your awards online. . . . . . . . . . . . . . 8
Service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Reviewing your awards
Nonqualified stock options . . . . . . . . . . . . . . . . . . . 10
Restricted stock units. . . . . . . . . . . . . . . . . . . . . . . . 12
Using Benefits OnLine
My Accounts page. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
View your award information . . . . . . . . . . . . . . . . . 14
Model and exercise awards . . . . . . . . . . . . . . . . . . . 15
Deposit funds into your brokerage account . . . . . 17
View your brokerage account information . . . . . . 18
Sell company stock . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Choose your sale order type . . . . . . . . . . . . . . . . . . 20
The screen shots shown in this communication are intended to illustrate the functionality and services available to participants on Benefits OnLine. They are not meant as exact representations of the screens available through your plan.
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4 | Getting started Required
Step 1 Create your User ID and password
www.benefits.ml.com > Create your User ID now
What you need
1. Social Security number (U.S. participants)
Non-U.S. participants: Use the 9-digit internal verification number (which begins with an “8”) sent to you in the mail. Enter this when prompted for your “Account Number.”
If you cannot locate your internal verification number, please send an email to [email protected] and it will be provided.
2. Personal Identification Number (PIN)
PINs are sent to you in the mail. If you do not have your PIN, select Forgot Your PIN when prompted for your PIN.
Note: If you already have a User ID and password for another plan at Merrill Lynch, you do not need to create new ones.
Step 2 Open your Merrill Lynch brokerage account
You will need to open a Limited Individual Investor Account (LIIA) before you can conduct transactions related to your equity awards — even if you have another Merrill Lynch brokerage account.*
To get started, click “Open Account Now” from the Action Center when you first log in to reach the “Open a Limited Individual Investor Account” screen. Or, from the pop-up box (“Open a Brokerage Account”) that appears after you log in or create your User ID and password, select:
Continue > Open a Limited Individual Investor Account
Complete your tax certification
As part of the account opening process, you’ll be asked to complete your W-9 or W-8BEN certification. A W-9 form (for U.S. citizens) asks for your tax identification number (which is your Social Security number). A W-8BEN asks for similar information for non-U.S. citizens. You must provide this information to avoid additional backup tax withholding on your award transactions.
Please call your financial advisor team to open the Individual Investor Account (IIA) that you will need for transactions related to your equity awards.*
Avoid delays! It may take up to 72 hours for your account to be activated. Open your account now so it will be ready for your award transactions.
* The LIIA and IIA are limited, self-directed, non-interest-bearing brokerage accounts.
My Accounts Education Center
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Retirement and benefit services provided by Merrill Lynch
Create your User ID nowForgot your User ID or Password?
Have login questions?
Learn more about our firm’s background onFINRA’s BrokerCheck.
Benefits OnLine International | ml.com
Secure Login
Enter your User ID
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User ID:
You will be asked to enter your passwordafter you click Continue.
Continue
Open a Brokerage Account Close X
Cancelancel Continue
If you have not yet opened the brokerage account required for your plan(s), please select
a plan from the list below to open an account.
If you have set up an LIIA account in the last 72 hours, please ignore this message and press
"Cancel" to continue with your navigation on the site.
Your Company
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5 | Getting started
Step 3 Set up wire instructions
Having wire instructions on file will allow you to transfer funds from your Merrill Lynch brokerage account (LIIA/IIA) to another account when you conduct transactions.
Equity Plan > Brokerage Account > Wire Instructions
Call your financial advisor team to set up your wire instructions.
What you need1. Account number to which funds will be wired
2. Your financial institution’s “FedWire” ABA (routing) number
Contact your financial institution to confirm its ABA number for wire transfers or any alternate instructions. To transfer cash to another Merrill Lynch account, use ABA number 026009593.
Non-U.S. participants: You will need a SWIFT code in place of the ABA number. There may be additional country requirements for some non-U.S. participants. Contact your financial institution if you have any questions.
You will receive a confirmation of your instructions. If you are no longer an active employee at your company or if your financial institution requires an intermediary, you must call a participant service representative to set up wire instructions.
Step 4 Select your delivery preferences
You can choose how you would like to receive statements, confirmations and other documents related to your plan.
To get started, select Manage Online Delivery under Useful Links on the My Accounts page.
You can edit, add or change your email addresses on file and indicate how you would like to receive your plan-related documents.
Choose online delivery if you would like to eliminate paper mailings of your documents. With online delivery, you’ll receive an email, with a link to Benefits OnLine, whenever a new document is available online.
Note: These delivery preferences apply only to Benefits OnLine. You will need to establish separate preferences for your brokerage account information on MyMerrill (see page 18).
MANAGE DELIVERY PREFERENCES
Your current delivery preferences are listed below. You have the option of setting delivery preferences for each record type. Your delivery preferences
will tell us how you would like to receive your account records (i.e. paper or online). Setting the delivery preferences below will apply these preferences
and your selected email addresses to all of your recordkept benefits accounts currently accessed through Benefits OnLine or that may be established in
the future, unless you are otherwise informed. These selections do not apply to your personal brokerage account(s) including a limited purpose
brokerage account opened in connection with equity award services. Your plan sponsors may choose to override your election for specific documents or
combine multiple documents together, in which case you will be notified.
Record Type Delivery Method Email
May Include:
Periodic statements
Notes on Electronic Fund Transfers
Special Tax Notice
Mail Online
Mail Online
Go Green Today!
To elect online delivery for all available record types, please select an email address and click “Update All”.
Manage Email Addresses
Manage Email Addresses
Manage Email Addresses
Change all records to Online delivery
Account Statements
May Include:
Confirmations and Letters
UPDATE ALL
Employer Provided Email
Choose an email
Personal Email
Choose an email
Personal Email
Choose an email
Employer Provided Email
Choose an email
Employer Provided Email
Choose an email
Personal Email
Choose an email
Transaction Activity
Contribution Rate or Investment Direction changes
Enrollment
Purchases or Sales
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6 | Getting started
Other important steps
Transfer company stock to your new Merrill Lynch brokerage accountIf you have stock from your company’s equity award program at another financial institution, you can transfer it to your Merrill Lynch brokerage account (LIIA/IIA). If your stock is jointly held, you will be changing ownership upon transfer to an individually held account at Merrill Lynch (check with your current financial institution regarding the ownership change process).
• Contact the financial institution that holds your company shares.
• Confirm that Depository Trust Company (DTC) transfers are permitted and what the fees may be. If you cannot make a DTC transfer, contact a participant service representative for more information.
Call your financial advisor team to transfer stock received through your company’s equity program from an outside account to Merrill Lynch.
What you need
1. Your Merrill Lynch brokerage account number (LIIA/IIA)
2. Your exact name and title as listed on the account
3. Merrill Lynch’s DTC number (5198)
4. The number of shares you want to transfer
• You may be required to complete a form for this request. Shares should be electronically delivered to your Merrill Lynch account within three to five business days (seven to ten days if transferred from a non-U.S. financial institution). To confirm that your shares have been transferred, go to:
Equity Plan > Brokerage Account > Holdings
• Contact the financial institution if the shares are not in your account after seven to ten business days. To reach Merrill Lynch about the deposit, call 1.877.767.2404 or +1.609.818.8894 if located outside the United States, Puerto Rico or Canada.
7 | Getting started
W-9 and W-8BEN certification
When opening your brokerage account, you will be required to certify either a W-9 or W-8BEN form. The W-9 form (for U.S. participants only) is to certify whether or not you are subject to backup tax withholding and to verify that your U.S. Social Security number is correct. The W-8BEN form (for international participants only) is to certify that you are exempt from U.S. tax withholding. You will be required to certify this information in Step 5 of opening your LIIA online.
For U.S. participants• With a U.S. address: You do not need to manually complete a W-9 form. By simply completing the “Certify” section in the “Verify,
Certify, Agree and Submit” step of the online brokerage account opening process, your requirement has been completed.
• With a non-U.S. address: You must speak with a participant service representative in order to open your brokerage account.
For international participants• With a non-U.S. address: You do not need to manually complete a W-8BEN form. By simply completing the “Certify” section in the
“Verify, Certify, Agree and Submit” step of the online brokerage account opening process, your requirement has been completed. (Note: The non-U.S. address submitted must be a street address and cannot be a P.O. Box, an in-care-of address or an address of a financial institution.)
• With a U.S. address: You must speak with a participant service representative in order to open your brokerage account. You will be subject to U.S. backup tax withholding unless you provide photo documentation of foreign status and a written statement providing an explanation supporting your foreign status. A participant service representative will provide you with more information on what is required.
Benefits OnLine, not just in English
You can view the Benefits OnLine® website at www.benefits.ml.com in a number of languages. View the Quick Tip for help with setting up your preferences.
8 | Getting started
Quick guide to your awards online
Click the Equity Plan tab to view your award information and access the tools and resources that can help you manage and monitor your account. The most common tasks are highlighted below. The tabs and menus shown may vary for your company.
Go to www.benefits.ml.com, log in and select the Equity Plan tab to view the menus that follow.
If you want to … Select menu item …
1 Grant Information
View award information Grant Summary – Grant Detail — Potential value of your awards (based on prior trading day’s closing price) and details about each of your grants.
View annual recordkeeping statements or confirmations
Annual recordkeeping statements provide an annual status of your awards. A confirmation is a record of each award transaction (exercise/settling of awards; does not include subsequent stock sales).
2 My Activity
View previous or pending activity
View your previous activity by time period and type of activity or review your pending activity.
3 Individual/Plan Information
View your personal information/tax profile
Participant/Tax Profile — Your personal information, including address, ID number and tax rates as provided by your company.
4 Document Library
View plan agreements and forms
Agreements and forms related to equity awards, along with plan documents and brochures related to your plan.*
5 Model/Exercise (Section 16 persons can model online but must call the Plan’s financial advisor team to conduct transactions.)
Model and exercise stock options
Model/Exercise — Estimate (model) of the net proceeds from exercising your stock options. Allows you to exercise your awards. This menu item will not appear if you have not opened your brokerage account (LIIA/IIA).
Model restricted stock or other awards
Model Only — Estimate of the net proceeds of a restricted stock vesting or other award transaction.
6 Brokerage Account
Sell shares or review orders
Sell Shares — Allows you to sell shares held in your brokerage account (LIIA).
View/Change Orders — Allows you to cancel a pending order or extend a limit order.
View brokerage and tax statements
Go to MyMerrill — Statement of cash and securities in your brokerage account (LIIA/IIA) and of any transactions, as well as tax reporting statements.
* Plan documents, including any prospectus or grant agreement, posted on Benefits OnLine are prepared and made available to you by your company, not Merrill Lynch.
My Accounts
Grant Information Model/Exercise Brokerage AccountIndividual/Plan Information Document LibraryMy Activity
Education Center Advice & Planning Markets Equity Plan
1 2 43 5 6
9 | Getting started
Service fees
Transaction fees Award recipients are charged the following commissions for shares sold in a cashless exercise of stock options and for all subsequent sales of company stock held in your Merrill Lynch brokerage account. There is no fee or commission for a cash purchase exercise.
Service channel Minimum Transaction cost Processing
Online $29.95 $0.03 per share $5.35
Participant service representative $29.95 • 1-50,000 shares: $0.05 per share• 50,000+ shares: $0.04 per share
$5.35
Financial advisor team $29.95 • 1-50,000 shares: $0.05 per share• 50,000+ shares: $0.04 per share
$5.35
The minimums and transaction costs listed above are on a per-grant basis.
Participants selling large blocks of shares (e.g., 10,000 or more) may benefit by consulting a Merrill Lynch representative prior to executing the transaction. Large blocks of shares sold through Merrill Lynch’s Special Equities Trading group may result in a more favorable execution price when compared to the online system. However, there is no guarantee that a representative will be able to obtain a more favorable execution price.
Other fees*
Account Cost Important information
Limited Individual Investor Account (LIIA) and Individual Investor Account (IIA)
No fee for active participants
$65 annual fee for inactive participants with cash and/or securities balance
$15 quarterly low balance fee for inactive participants with balances below $20,000
Active participants include anyone with grants outstanding or eligible to receive future grants. Contact a participant service representative for more information.
Service Cost Important information
Wire transfer $7.50** Wire transfers may not be available in all currencies.
Non-U.S. currency checks $15.00** Checks may not be available in all currencies.
Stock certificate / DRS statement requests
Contact a participant service representative
Fees vary depending on your company’s participation in the Direct Registration System (DRS) at the Depository Trust Company.
SEC transaction fee (as of February 16, 2016)
$0.0218 for each $1,000.00 or fraction thereof
Fee assessed and paid to the Securities and Exchange Commission (SEC) on each stock sale. Fee is subject to change by the SEC.
Brokerage account transfer (DTC transfer)
No fee for active participants
Applies only to Depository Trust Company (DTC) transfer of assets to another broker. Contact a participant service representative for more information.
Duplicate confirmations $5.00 per hard copy Excludes transactions within the last six months. Available online at no cost.
Duplicate statements $5.00 per hard copy Excludes the two most recent statements. Available online at no cost.
* You will be subject to the applicable fees, terms and conditions associated with the retail brokerage account established in connection with your equity award program. All brokerage account fees are subject to change upon notification to you.
** Requests made outside of the AwardChoice® system (Benefits OnLine, participant service representatives or a financial advisor) are subject to retail brokerage wire transfer fees.
Commissions and account fees for transactions and services unrelated to your company equity awards plan are subject to standard Merrill Lynch rates. Please speak with a participant service representative for more information.
10 | Reviewing your awards
Nonqualified stock options
What you get• The right to purchase company stock at a set price for a
specific period.
How they work• Subject to a waiting period (also called a vesting period),
an exercise (purchase) period and an expiration date.
• Stock can be purchased during the exercise period at the price specified when the options were granted (grant price), assuming the stock’s fair market value (FMV) is not below the grant price. This purchase is called “exercising your stock options.”
• If you do not exercise your stock options before the expiration date, you lose the right to purchase stock at the grant price.1
Please read the grant agreement provided by your company for details on the specific terms and conditions of your award. For more information, contact your human resources department.
Taxes• When you exercise nonqualified stock options, any gain on
the exercise (the difference between the grant price and the FMV2 of the stock at the time of exercise) is considered ordinary income under U.S. tax law. In non-U.S. locations, tax implications may vary.3
• Taxes on this income are generally due at the time of exercise (see “Choosing an exercise method” on the next page).
• If and when you sell your stock at a later date, the difference between the FMV of the stock at the time of exercise and the sale date is treated as a capital gain or loss. In non-U.S. locations, tax implications may vary.3
Lifecycle of stock options
Grant date
• Options are granted at a set price
• Vesting (waiting) period begins
Vesting period
• Waiting period before stock can be purchased
• Merrill Lynch brokerage account (LIIA/IIA) opened
Vesting date
• Options become exercisable
Exercise period
• Stock can be purchased at the grant price
Expiration date
• The date the right to exercise stock options expires
• Unexercised options are forfeited
1 If your expiration date falls on a weekend or a holiday of the New York Stock Exchange, you must exercise by the market close on the trading day before your expiration date. Earlier expiration dates may apply under your company plan due to termination of employment, disability or death. Please refer to the terms and conditions of your plan for rules relating to earlier expiration of stock options.
2 The definition of the stock’s fair market value used to calculate your tax obligation is determined by your plan. 3 Consult your tax advisor about your individual tax implications. Neither Merrill Lynch nor your employer provides tax advice.
11 | Reviewing your awards Nonqualified stock options
Choosing an exercise method When you decide to exercise your nonqualified stock options, you must choose an exercise method. The method you choose will depend on how you want to pay for the purchase of your shares and whether you want to receive the proceeds in stock or in cash. Here is an example of exercise costs and the exercise methods available to you.
Example of exercise costs*
Options granted
Grant price/ Exercise cost
Fair market value on exercise date
Gain (taxable income)
Assumed tax rate**
Taxes due at exercise
Total exercise cost (includes taxes; excludes fees and commissions)
1,000 $10 per share (Total: $10,000)
$15 per share (Total: $15,000) $5,000 33% $1,650
($5,000 x .33)
$11,650 ($10,000 to purchase shares + $1,650 in taxes)
To estimate the costs of exercising your stock options, go to:
Equity Plan > Model/Exercise > Model/Exercise
Exercise methods
If you want to receive …
And you prefer to pay all exercise costs using …
Consider this method Example (includes taxes; excludes fees and commissions)
Cash Cash from the sale of shares from your award
Cashless sell exercise All shares are sold and you receive the net cash proceeds after exercise costs are deducted.
Exercise cost: $11,650
Cash paid: $0
Shares sold: 1,000
You receive: $3,350 cash ($15,000 cash proceeds - $11,650 costs)
Shares Cash from the sale of shares from your award
Cashless hold exerciseSome of your shares are sold to cover the exercise costs, and you receive the net shares.
Exercise cost: $11,650
Cash paid: $0
Shares sold: 777 ($11,650/$15 to cover costs)
You receive: 223 net shares
Shares Cash that you provide to Merrill Lynch There is no fee for a cash purchase exercise.
Cash purchase exerciseYou receive all shares from your exercise request.
Exercise cost: $11,650
Cash paid: $11,650
Shares sold: 0You receive: 1,000 shares
Shares Shares that you already ownYou “attest” that you own the shares. These attested shares are “swapped” for new shares (you keep the certificates or other ownership documents for the attested shares).
Stock swap exercise The total number of shares is reduced by the number of shares needed to cover the exercise costs, and you receive the net new shares. (A stock swap exercise must be conducted through a participant service representative.)
Exercise cost: $11,650
Cash paid: $0
Shares swapped: 777 ($11,650/$15 to cover costs)
You receive: 223 net new shares
* Examples are for illustrative purposes only.
** Taxed as ordinary income (e.g., federal, state, local, FICA).
1 Neither Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
What you get• An unsecured promise from your company to deliver company stock at a future date.
• Restricted stock units are not actual shares of company stock and therefore they do not carry voting rights or provide dividends.
How they work• Generally subject to employment and vesting criteria. The vesting period is often referred to as the restriction period.
Shares/units may not be sold, pledged, transferred or assigned during this period.
• You do not have to purchase these shares. You receive net shares in your Merrill Lynch brokerage account automatically when the restriction period ends and vesting conditions are met. If the vesting conditions are not met, the awards may be forfeited.
Please read the grant agreement provided by your company for details on the specific terms and conditions of your award. For more information contact your human resources department.
Taxes• Awards are taxed as ordinary income under U.S. tax law based on their total fair market value on the restriction lapse (vesting) date.
Taxes are generally due on that date. In non-U.S. locations tax implications may vary.1
• As specified by your plan, your taxes will be paid automatically through:
Share withholding — A portion of your awarded shares is withheld for taxes and you receive the net shares.
• To estimate your taxes, go to:
• Awards are granted
• Restriction (vesting) period begins
• Waiting period before stock can be received
• Merrill Lynch brokerage account (LIIA/IIA) opened
• Tax obligation to be met through share withholding
• Taxes are automatically paid
• Net shares are generally deposited to your LIIA/IIA within 72 hours, though this may vary
• A confirmation is mailed to you
Share DepositRestriction Lapse (Vesting) DateTax RequirementRestriction
(Vesting) PeriodGrant Date
Lifecycle of restricted stock units
Restricted stock units
Equity Plan > Model/Exercise > Model Only
12 | Reviewing your awards
13 | Using Benefits OnLine
Using Benefits OnLine
Benefits OnLine offers a wide variety of tools and resources for managing and monitoring your awards. The following pages highlight many of the site’s key features and guide you through important steps related to your awards.
My Accounts page
Go to www.benefits.ml.com and log in using your User ID and password
(First-time users see Step 1: Create your User ID and password on page 2 of this brochure.)
Page highlights
My Accounts Education Center Advice & Planning Markets Equity Plan
Changes have been made to your ESPP enrollmentwindow...
Deposit instructions for your Merrill Lynch brokerageaccount...
You Have Choices If you have cash or stock in your Limited Individual Investor Account or IndividualInvestor Account, a Retirement Education Specialist can help you review your choices.Call (877) 767-2404 or:
You Have Expiring Awards Our records indicate that your stock option award(s) is about to expire. Call 877-767-2404to speak with a Retirement & Equity Specialist about your choices and steps to consider.
Did You Know?
Message Center
Useful Links
Education Resources
Action Center
SCHEDULE A CALL
Alerts
ABC Company Equity Plan$72,345.78
Announcements
Important Plan Update
Helpful Plan Information
Total Market Value*$72,345.78
To perform transactions on yourAwards, you must have an openMerrill Lynch Brokerage Accountfor your Equity Plan.
OPEN ACCOUNT NOW
Statements
My Financial Picture
Merrill Edge
Download to Quicken
Logout . Help . Sitemap . FAQs
You have grants that are pendingacceptance.
ACCEPT NOW
ABC Company Equity PlanACCEPT GRANT
ABC Company Equity PlanOPEN BROKERAGE ACCOUNT
Enter Symbol Get Quote
My Home Message Center
Plan Selector: Quick Links: (Edit)
investment Holdings Sitemap Account PreferencesDocument Library
--Select Plan-- --Select Quick Links--
My Accounts > My Home
1 Total Market Value Shows you:
• Your award balance (the total potential market value of your outstanding awards based on the previous trading day’s closing price for your company’s stock)
• Your brokerage account balance (if account is activated)
Select the name of your award plan or brokerage account to see more detailed information.
2 Equity Plan
Provides access to information and resources for your awards.
3 Message Center Shows any important messages that require your attention, including time-sensitive Alerts about actions you may need to take.
4 Select Quick Links Lets you establish quick links to the pages you visit most often.
5 Action Center Alerts you to any actions you may need to take (such as opening a brokerage account) or to information that can help you plan for your financial future.
6 Education CenterOffers a series of videos and quick tips designed to help you manage and monitor your awards. You’ll also find a series of articles that can help you understand how your awards could fit into your broader financial picture.
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14 | Using Benefits OnLine
View your award information
Equity Plan
• This takes you directly to the Grant Summary page.
• You can also select the name of your equity plan on the My Accounts page to see the Grant Summary page.
• If you are not on the My Accounts page, select Equity Plan > Grant Information > Grant Summary – Grant Detail.
Page highlights
Grant Information My Activity Individual/Plan Information Document Library Model/Exercise Brokerage Account
Grant Summary
The amounts below show the total vested and unvested potential income and are based on share price of $20.00 As of COB 10/06/20XX
Show Outstanding Grants
All dates are displayed in MM/DD/YYYY format
Grant Date Grant Description
01/03/2003 Non Qualified Stock Option 15.00 1,000 0.00 5,000.00 01/02/2013
Total
Quantity
Actions
300 0.00 0.00
Potential IncomeUnvested ($)
Last Date toExercise
All Grants
Stock Options
The amounts below show the total vested and unvested potential income and are based on share price of $20.00f As of COB 10/06/20XX
Show Outstanding Grants
Stock Options
$5,000.00Restricted Shares
$8,000.00
Equity Plan > Grant Information > Grant Summary – Grant Detail
Restricted Units
$6,000.00
Grant Price Potential IncomeVested ($)
View Details
Accept This GrantModelModel
Grant Date Grant Description
02/15/2008 Restricted Shares 400 8,000.00 02/15/2011
Total
Quantity
Actions
400 8,000.00
Potential Income ($) RestrictionLapse Date
Restricted Shares
Grant Date Grant Description
01/12/2010 Restricted Units 300 6,000.00 02/12/2011
Total
Quantity
Actions
300 6,000.00
Potential Income ($) RestrictionLapse Date
Restricted Units
All Grants
$19,000.00
Get QuoteEnter Symbol
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My Accounts Education Center Advice & Planning Markets Equity Plan
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1 Summary Bar Displays the potential value (unrealized) of your awards based on the previous day’s closing price for your company’s stock.
2 All Grants Lists information about all your grants. Select an award’s grant date for details about that award, including any recent activity, the vesting schedule and settlement method.
3 Actions Provides quick access to actions such as accepting an award, modeling an award, exercising stock options or making a tax election for restricted or performance awards.
After you exercise stock options or your other awards vest, information about the cash and/or stock from these awards appears as part of your brokerage account information (see “View your brokerage account information”). At this point, the information no longer appears under Grant Information – Grant Detail.
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Model and exercise awards
Equity Plan > Model/Exercise > Model/Exercise OR Model Only
You can model the estimated value of your awards and exercise stock options using the Model/Exercise tab.
Stock options — Use Model/Exercise Restricted awards — Use Model Only
You can model awards online, but you must call your financial advisor team to conduct transactions.
How to model awards
Model/Exercise Print
Looking for stock held in your brokerage account resulting from the payment of a restricted award, performance award, or an option exercise? Access the Sell Shares page»
For more information about opening your account, modeling and exercising your grants and more, access Equity Awards Education, or access the FAQs for answers to frequently asked questions.
ABC $36.00 Refresh | Brokerage Account: ABC12345(Price information is as of 13:32 and is a real time quote for information purposes only. The accuracy of this data is not warranted.)
Equity Plan > Model/Exercise > Model/Exercise
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(Edit)--Select Quick Links--
Enter Modeling Criteria:
Start Over Calculate Results
Enter Estimated Market Price To Model $ 41
View your complete Tax Profile
Modeling Results:
Grant Date
10/01/2009
Grant Type/Grant Code
NQ
Stock SaleProceeds
$4,100.00
Select Grant toExerciseGrant Price
$31.39
Selected GrantTotls
OptionsModeled
100
100 $4,100.00
-Option Cost
$3,138.50
$3,138.50
-Taxes
$0.00
$0.00
=Net Proceeds
$961.50
$961.50
NOTE: These figures are estimates only for grant exercise modeling purposes. Where more than one grant is selected for exercise, stock sales for each grant exercise will becombined and entered as a single order for related stock sales. Refer to the recordkeeping confirmation for information about each grant exercise.
100
$5.44
$8.95
Option Quantity To Exercise
Total Fees
Total Commissions
Continue To Exercise
Model Grants1 2 Enter Order Review & Submit3
Transaction Type: Grants to Display:Cashless Sell All Vested Grants
Select Grant(s) and Quantity to Model: All dates are displayed in mm/dd/yyyy format.
Select Grant(s)To Model Grant Date Grant Type/
Grant CodeExpiration/Last Date to
ExerciseGrant Price Options
GrantedOptions
Exercised**Unvested/
UnexercisableQuantity
PotentialIncome
(Vested)
OptionsTo
ModelVested
Quantity
10/01/2009 NQ 10/01/2009 $31.385 256 0 0 256 $0 100
Grant Information My Activity Individual/Plan Information Document Library Model/Exercise Brokerage Account 1 Transaction Type/Grants to Display • Stock options — Select the type of transaction
(such as cashless sell or cash purchase). Then select the awards you want to model (all grants, all vested grants or all unvested grants).
• Restricted awards — Select Restriction Lapse as the transaction type. Unvested grants will automatically display.
2 Select Grants to Model • Check the box for the specific grants you want to
model and enter the quantity to model.
3 Enter Modeling Criteria• Enter the estimated market price for your stock.
The last price of the stock is shown on the screen for informational purposes only.
• Restricted awards — Select a tax payment method, either Withhold Shares for Taxes or Cash Payment for Taxes (or other choice as provided by your company). This is for modeling purposes only.
4 Calculate Results • Select Calculate Results to see the Modeling Results
section.
• Depending on the type of transaction, you will see the estimated shares sold, cash proceeds, option cost (as applicable), taxes due, net shares and/or net cash proceeds (not including transaction fees/commissions) resulting from the transaction. Transaction fees are shown separately. These figures are estimates only.
• To change the modeling criteria, select Start Over.
5 Continue to Exercise (stock options only)• To exercise stock options based on your model, check
the box under Select Grant to Exercise in the Modeling Results section for the stock options you want to exercise. Then select Continue to Exercise.
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How to exercise stock options
Model/Exercise Print
Need help entering order type or time limit?, more»
ABC $36.00 | Brokerage Account: ABC12345
Equity Plan > Model/Exercise > Model/Exercise
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My Accounts Education Center Advice & Planning Markets Equity Plan
(Edit)--Select Quick Links--
Model Grants1 2 Enter Order Review & Submit3
Cashless SellExercise Method:
100Options to Exercise:
100Order Quantity:
Over the CounterExchange:
Order Type:
Time Limit:
Enter Your Exercise Order information
Select your Net Proceeds Distribution Method.
Market Limit Limit Price $ (Estimated Model Price: 41.00)
Day Good Till Cancelled (Valid for only 30 calendar days)
Proceeds to remain in brokerage account (U.S. Dollars only)Distributed As:
Wire Transfer
Direct Deposit (U.S. dollars only)
Check (will be mailed upon settlement)
Have you recently changed your address?, more»
Continue To ExerciseGo Back
All amounts shown are displayed in $US dollars.
This section allows you to select how you would like to receive the net cash from your stock option exercise and the currency that you would like to recive the proceeds in.
Grant Information My Activity Model/Exercise Brokerage AccountIndividual/Plan Information Document Library6 Order Information • In the Enter Your Exercise Order Information
section, choose either Market to have the order executed at the next available sale price or Limit to have the order executed only if the stock price reaches the price you designate (enter the Limit Price).
• Under Time Limit, for Market orders choose Day, and for Limit orders choose either Day or GTC (Good Till Cancelled, valid for only 30 calendar days). See “Choose your sale order type” at the end of this brochure for more information.
7 Distribution Method • You can choose to have cash proceeds sent to you
by check, by direct deposit (U.S. dollars only), wired to another account (as specified in your wire instructions) or held in your brokerage account (LIIA/IIA). Keep in mind the LIIA/IIA is a non-interest-bearing account.
8 Continue to Exercise• Select Continue to Exercise to review your exercise
information.
• Before you exercise, you must re-enter your Benefits OnLine password for added security.
• Select Submit within 90 seconds or your request will time out.
• When your transaction is completed, you will receive a confirmation of your transaction in the mail. This confirmation will also be available at Equity Plan > Grant Information > Confirmations.
Please note that if you select a Cash Purchase exercise, you will not be prompted to select your Sale Order Type or Distribution Method.
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Deposit funds into your brokerage account
For a cash purchase exercise or cash payment tax election, you may need to deposit funds into your brokerage account to cover the costs of those transactions if you do not have sufficient funds in your account. Deposits can be made as outlined below.
Important: Depositing cash in your account will not initiate a cash purchase exercise. You must place the exercise order separately over the phone.
To deposit funds via check
Make check payable to: Merrill Lynch
Mail to:Merrill Lynch Attn: Cashiering Dept. 1400 American Boulevard MSC 04-3S-D Pennington, NJ 08534
Please include your 8-digit brokerage account number on the check.
To deposit funds via wire transfer
Provide the financial institution from which you are transferring funds the following information:
Bank Name: Bank of America ABA#: 026009593 Bank Address: 100 West 33rd St., New York, NY 10001 For international wires add: SWIFT BOFAUS3N Merrill Lynch Account #: 6550113516 Your 8-digit brokerage account number, name and address.
18 | Using Benefits OnLine
View your brokerage account (LIIA/IIA) information
When you exercise stock options or when other grants vest, the resulting shares (and any cash, as directed) are deposited into your Merrill Lynch brokerage account (LIIA/IIA). Information about these grants will no longer show on the Grant Summary – Grant Detail page. The deposited cash and/or shares from the grants will be part of your brokerage account information.
Brokerage account holdingsEquity Plan > Brokerage Account > Holdings
This page displays the cash and stock holdings in your brokerage account. It also provides (for U.S. participants only) cost basis and other information related to your holdings. Cost basis tracking applies only to transactions completed after December 2010 or since the time of your plan’s conversion to Merrill Lynch if after that date.
Additional LIIA/IIA account informationEquity Plan > Brokerage Account > Go to MyMerrill
MyMerrill.com, Merrill Lynch’s website for brokerage clients, provides additional information about your brokerage account holdings such as unrealized gains or losses or account activity. It also provides a variety of useful investing tools and information.
• When you select Go to MyMerrill you are leaving Benefits OnLine and will be taken to the Portfolio & Accounts tab on MyMerrill.com, which displays a summary of your Merrill Lynch brokerage account.
• The MyMerrill site opens in a new browser window. To return to Benefits OnLine, close the MyMerrill window or switch back to the Benefits OnLine window.
Page highlights
1 My Accounts Total The Portfolio & Accounts page that appears when you access MyMerrill displays the net value of your brokerage account in the Simple View (shown here). For additional details about your account, including a breakdown between cash and stock, select Detail View.
2 Combined Historical Value Displays the value of your account over time.
3 Combined Asset Allocation Displays the breakdown between cash and equity (stock) as a pie chart.
4 Portfolio & Accounts When you place your cursor over the Portfolio & Accounts tab, you’ll see a menu of links through which you can access statements, information about realized gains and losses, and much more,
Note: Any personal information (e.g., address) or delivery preferences provided for Benefits OnLine do not apply to MyMerrill. You will need to provide that information for MyMerrill separately.
Portfolio & Accounts
Your last login: Thursday, Apr 09, 2015 10:54 AM ET
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Research Solutions Help & Support
$11,393.11All Account Total
Detail View
0
Simple View
Your 2014 tax statements are available. For additional resources, please visit the Tax Center.
As of 04/08/2015 40:58 AM ET As of 04/08/2015 40:58 AM ET
Dow 17,863.84 -38.66 -0.22% NASDAQ 4,939.77 -11.50 -0.22% S&P 500 2,078.41 -3.49 -0.17% 10 Year T-Note 1.92 View Markets Real-time Quotes+0.03 +1.58%
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Combined Historical Total ValueAt Month’s End
MAY JUL JAN MAR(20)
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2014 2015
AwardChoice® Brokerage Accounts Net Value
My Accounts Total
Total
ABC-12345
$11,393.11
$11,393.11
$11,393.11
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Quote
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Combined Asset Allocation
Asset Class75% Equity
25% Cash
Portifolio & Accounts
Your last login: Thursday, Apr 09, 2015 10:54 AM ET
Hello
Research Solutions Help & Support
$11,393.11All Account Total
Detail View
0
Simple View
Your 2014 tax statements are available. For additional resources, please visit the Tax Center.
As of 04/08/2015 40:58 AM ET As of 04/08/2015 40:58 AM ET
Dow 17,863.84 -38.66 -0.22% NASDAQ 4,939.77 -11.50 -0.22% S&P 500 2,078.41 -3.49 -0.17% 10 Year T-Note 1.92 View Markets Real-time Quotes+0.03 +1.58%
Refresh Help Export Print
NOV
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SEP
Generate a Report
Combined Historical Total ValueAt Month’s End
Combined Asset Allocation
This analysis cannot be provided on current holdings.
MAY JUL JAN MAR(20)
60
20
40
0
2014 2015
AwardChoice® Brokerage Accounts Net Value
My Accounts Total
Total
LIIA 6XX-10493
$11,393.11
$11,393.11
$11,393.11
Enter Symbol SymbolLookup
Quote
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Portfolio & Accounts
Order Status
Tax Documents Current Allocation
Account Details Holdings I want to...
Summary Current Holdings Manage account alerts
Balances Unrealized Gain/Loss Update account features
Activity Realized Gain/Loss & Income Download account data
Statements & Documents Estimated Investment Income Enroll to trade
Transfers & Withdrawals
Transfer Money/Securities
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Sell company stock
Through Benefits OnLine you can sell shares that you hold in your brokerage account (LIIA). When you do, you can choose a quantity to sell or select specific tax lots to sell. When choosing a quantity, shares are sold on a first-in, first-out basis (the shares held the longest will be sold first). Choosing specific tax lots to sell can simplify recordkeeping for tax purposes.
Equity Plan > Brokerage Account > Sell Shares
The Sell Shares menu item will only be available if you have opened your Merrill Lynch brokerage account (LIIA).
Call your financial advisor team to sell stock or conduct any other transactions.
How-to instructions
1 Choose Total Quantity to Sell or Select Tax Lots You can choose Enter Total Quantity to Sell or Select Tax Lots from List Below.
• If you choose Enter Total Quantity to Sell, just enter that quantity in the adjacent box. Then click Continue.
• If you choose Select Tax Lots, select the tax lot(s) from the display and enter the quantity to sell from each lot at the right of the screen. Then click Continue.
2 Sale Order Information Choose your Sale Order Type – either a Market order or a Limit order (see next page).
3 Distribution Method Choose how you want to receive proceeds — by check, by direct deposit (U.S. dollars only) wired to another account (as specified in your wire instructions), held in your LIIA (which doesn’t pay interest) or transferred to an alternate Merrill Lynch account. Then click Continue.
4 Review Your OrderWhen you click Continue after selecting your distribution method, you will be able to review your order before submitting it.
Equity Plan > Brokerage Account > Sell Shares
Continue
MarketSelect an Order Type:
Sale Order Information
Distribution Method
Proceeds to remain in brokerage account (US Dollar Only)
Check
Select Currency
Cancel
Wire Transfer
Not all currencies are available for all distribution methods.
Direct Deposit (U.S. dollars only)
Transfer Proceeds to an alternate Merrill Lynch account
Alternate Account Number
Brokerage Account: ABC12345 | Security: ABC (ABC Company)
Sell Shares – Tax Lot Selection and Trading
Order Quantity: 1,000
DayDuration:
Distributed As:
Enter Quantity1 2 Enter Order Review & Submit3
Get QuoteEnter Symbol
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ABC Company Select Language: (Edit)--Select Quick Links--English u
Grant Information My Activity Individual/Plan Information Document Library Model/Exercise Brokerage Account
My Accounts Education Center Advice & Planning Markets Equity Plan
OR Good Till Cancelled (Valid only for 30 calendar days)
OR Limit List Price: $68.31 as of 10:36:21 AM
4
2
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Enter Total Quantity to Sell
ABC - $20.00 as of 9:30:27 AM EDT | Total Quantity: 1,340 | Value: $101,500.00 | Brokerage Account: 1AB-12345
OR
05/04/2011 Lapse Open300 300$20.00 $8,000.00 $21,000.00 $15,000.00
05/04/2011
05/04/2011
05/15/2011
05/10/2011
Sell Shares – Tax Lot Selection and Trading
All dates are displayed in mm/dd/yyyy format.
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for abc12345
Acquisition Date Quantity Unit Cost Cost Basis Market Value Status Quantity to SellUnrealized Gain/Loss
0
N/A
N/A
0
0
Source Available Quantity
Continue
Totals
Exercise Pending Trade100 0$30.00 $3,000.00 $7,000.00 $4,000.00
Lapse Reserved QTY:10100 90$10.00 $1,000.00 $7,000.00 $6,000.00
Exercise Locked50 50$90.00 $4,500.00 $3,500.00 ($1,000.00)
Lapse Open900 900$50.00 $45,000.00 $63,000.00 $18,000.00
1,450 1,340$58,500.00 $101,500.00
Please note that only level trading is allowed due to pending GTC Order
Equity Plan > Brokerage Account > Sell Shares
Select Tax Lots from List Below
Enter Quantity1 Enter Order2 Review & Submit3
Get QuoteEnter Symbol
Logout • Help • Sitemap • FAQs
My Accounts Education Center Advice & Planning Markets Equity Plan
ABC Company Select Language: (Edit)--Select Quick Links--English u
Grant Information My Activity Individual/Plan Information Document Library Model/Exercise Brokerage Account
1
20 | Using Benefits OnLine
Choose your sale order type
When you sell company stock (including when exercising options), you must decide when you want the sale to take place — at the next available sale price (a “market order”) or at a specified price (a “limit order”).
If you want to … Choose this method How it works
Sell your shares at the next available sale price
Market Order As soon as market conditions allow, your shares will be sold.
Set the price at which to sell your shares …
Limit Order (You must select one of the types below):
If the stock price reaches or exceeds your set limit price, shares are sold subject to market conditions. If the price is not met while the order is in effect, your order is cancelled and shares/options are available for future sale/exercise.
… on the current trading day • Day Limit Order Order is in effect for current trading day only. Orders entered after market close will be in effect for the next business day.
… over the next 30 calendar days • Good Till Cancelled Limit Order*
Order is in effect for 30 calendar days following the date of entry. For orders entered after the market close but before 12 midnight Eastern, the 30-day count begins two business days after the order is entered.
* Please note that you cannot place a Good Till Cancelled order in connection with a cashless hold exercise.
• Merrill Lynch will execute all sale orders subject to market conditions.
• You may receive partial execution of the sale order you place, resulting in only a portion of your stock options being exercised. Once your exercise has been entered, you should check the exercise confirmation on Benefits OnLine to determine the number of stock options exercised. You may need to re-enter the order for the balance of the options not exercised.
Company blackouts
• Generally, all limit orders related to stock option exercises will be cancelled at the outset of a blackout period (a period set by your company during which purchases and sales of company stock are prohibited). Generally, no stock option exercises will be processed online during a blackout period.
• No new orders related to stock option exercises may be placed online or over the phone during a blackout period.
• Any and all blackout periods are determined by your company and are subject to change.
This booklet contains certain descriptions of plan features as they exist at the time of final editing of the booklet, November 2016. While every effort has been made to ensure the accuracy of the booklet, if there is any conflict between the information in the booklet and the official documents governing the plans and programs, the official documents will control. Nothing in the booklet is intended to create or affect an employment relationship between Arconic Inc., or its subsidiaries and affiliates, and any person. The sponsors of the plans and programs have reserved the right to amend or terminate any plan or program at any time, at the sole discretion of each, in accordance with the terms of the plan or program.
Neither Arconic Inc., Merrill Lynch nor any of its affiliates or financial advisors provide legal, tax nor accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Unless otherwise noted, all trademarks and registered trademarks are the property of Bank of America Corporation. ©2016 Bank of America Corporation. All rights reserved. | ARH7KH9L | 20163129-1 | 11/2016