Our hope with this program is that our team is able to build a real legacy for themselves and their loved ones.

Once vested, these grants are yours to do as you see fit. By holding on to the stock, you have the potential for their value to grow if the company’s valuation grows over that time period. However, you can also sell them and use the money for anything of your choice.

Remember there is risk to any investment.

US Team Members:

Eligible US team members do not need to “accept” their Legacies grants within Shareworks. Lineage has opted to “auto-accept” all awards issued to US-based team members. This means team members will not need to take any immediate action to secure their Legacies grants.

That said, we encourage you to log in to Shareworks and view the grant as issued. New team members will need to activate their Shareworks account via Workday (see “Create your Shareworks account” within the Resources section of this webpage). Further, you will need to log in to transfer or sell any shares after they have vested (over the next 1-3 years).

If for some reason you would prefer to decline your Legacies grant, you are able to do so in Shareworks within 45 days of the issuance. After that time, all grants will be considered awarded within the system.

Canadian Team Members:

Eligible Canadian team members who are receiving RSUs from Lineage, will need to formally “accept” their Legacies grants within Shareworks. To do so, team members will need to create an account in Shareworks and accept the award within that platform. Shareworks can be accessed via Workday Single Sign-On.

Note: Canadian team members MUST accept their grant within 6 months of the issuance (after which all unaccepted grants will be forfeited).

Accepting the Award 

Once you have created your account, you will need to log in to Shareworks and complete the following steps to formally “accept” your Legacies Award. 

1. Log in to your Shareworks account and click “View” to begin the grant acceptance process. 
2. View your grant agreement and any other plan documents. 
3. Check the boxes to confirm you opened and read all documents and click “Accept”. 

What is the process to sell shares?

Once your RSUs have vested, you can manage the shares you own by logging into your Shareworks account at any time. Refer to this guide for a step-by-step instructions on how to sell shares.

As a reminder, you do not own shares of common stock if you were granted a RSU that has not yet vested. You will need to wait until those vesting requirements have been satisfied and the shares are deposited in your account in order to hold or sell those shares.

US Team Members:

All LINE shares will be initially issued via Shareworks and can be sold on that platform or transferred to another brokerage platform of your choice and either held or sold. There are no fees for keeping your shares in Shareworks; however, there are fees associated with trading within the Shareworks platform (see below).

Through our relationship with Morgan Stanley, you can transfer any shares from Shareworks to their E*TRADE brokerage platform at no cost. Further, all eligible US team members are provided with an E*TRADE account at no cost to you which you can use to buy and sell stocks (LINE or otherwise) at your discretion.

• Selling via E*TRADE platform – there is $0 commission to sell online
• Selling via E*TRADE call center – there is a $25 fee per trade
• Selling via Shareworks – there is a $9.99 flat fee+ $0.01 per share trading fee to sell shares through your Shareworks account

Canadian Team Members:

All LINE shares will be initially issued via Shareworks and can be sold on that platform or transferred to another brokerage platform of your choice and either held or sold.

There are no fees for keeping your shares in Shareworks; however, Shareworks charges a $40.00 USD international wire fee when sending money and the exchange rate used when they convert USD to your local currency is typically not the most favorable.

A potential way to lessen the impact of trade fees, wire fees and exchange rates is to explore if there is local broker that can hold US shares. If you decide it is favorable to use a local broker, you may transfer your shares from your Shareworks account to a local broker at no cost. See the attached guide for details on how to do this.

If you choose not to transfer shares to a local broker, it may be worth opening a USD account with an international bank that has a presence in your country. This would enable you to transfer any proceeds from Morgan Stanley in USD to your account and shop around for a more competitive exchange rate to your local currency.

What about taxes? 

We know taxes are confusing and often frustrating. Lineage is not able to offer our team members tax advice (each of our personal situations are different), but we’ve pulled together some basic context around what you can expect when it comes to taxation regarding your company stock/RSU awards.

US Team Members: 

• Accessing Tax Documents: After preparing your tax documents, Morgan Stanley will include them in your Documents section of your online account. If you held shares in Shareworks and E*TRADE during 2024, you may have necessary tax documents in both platforms.
• Net Settlement for RSUs: Lineage uses net settlement for our Restricted Stock Units (RSUs) and Legacies Awards, meaning Lineage withheld a portion of your shares to pay estimated payroll tax owed on your vested stock awards. The value of your stock award is included in your W-2 Box 1 wages, and the taxes you paid when Lineage withheld your shares are included in the boxes on your W-2 that display taxes that were withheld during the year.
• Please also note that while Lineage withheld a portion of awards that vested, it is possible that due to your income and other factors, you may owe taxes for last year’s vesting events beyond what was withheld by Lineage.

It’s highly recommended that you work with a professional tax advisor to understand how your equity impacts your tax situation. The tax treatment of equity compensation is complex and may be subject to additional rules and exceptions that are not discussed here. It’s important that you understand the types of taxes you may be subject to when you receive equity, provide the right documents to your tax preparer to submit an accurate annual tax filing, etc.

Please note that Lineage does NOT sell shares to cover taxes. Therefore, you will only receive a 1099-B from Shareworks or E*TRADE if you sold shares on their platform.

• 1099-DIV for Dividends: If you held vested shares after the ex-dividend date for the dividend paid in a given year, a 1099-DIV will be available in Shareworks or E*TRADE, depending on where you hold your shares.
• Capital Gains Tax and Avoiding Double Taxation on RSUs: A common mistake is double taxation on RSUs. As noted above, estimated income tax on RSU awards were automatically withheld by Lineage, and such income and withholding were included in the W-2 provided by Lineage. If you sold shares in a given year, capital gains tax is likely due on any increase in the value of the shares that occurred between when your shares vested and when such shares were sold. Your Form 1099-B is what your tax provider or tax software will use to determine if you have any capital gains tax due and is only provided to you by Morgan Stanley if you sold shares.

The adjusted cost basis is the value used to assess if there was a capital gain when you sold your shares. Ensuring the adjusted cost basis is what is provided to your tax preparer or software is important to avoid paying double taxes. On the Shareworks 1099-B, the cost basis shown is the adjusted cost basis. However, on E*TRADE’s 1099-B, there is a separate page titled "Stock Plan Transaction Supplement," which will list the adjusted cost basis to provide to your tax preparer or software.

• Additional Resources: We have linked tax filing guides from E*TRADE (link to below) and Shareworks (link to below) for your convenience. Additionally, you can attend a tax filing webinar with Morgan Stanley. You can register for the webinar by clicking this link: Webinar Registration.
• We hope this information is helpful as you prepare your taxes. If you have any questions or need further assistance, please do not hesitate to reach out to Morgan Stanley at 877-380-7793.

Canada Team Members:

• Accessing Tax Documents: Shareworks generates a Release Confirmation in Shareworks after an RSU vesting event is processed, which will detail the taxable compensation received and what Lineage withheld. Whenever you liquidate stock, Shareworks will generate a trade confirmation detailing the transaction details.
• Net Settlement for RSUs: Lineage uses net settlement for our Restricted Stock Units (RSUs), meaning Lineage withheld a portion of your shares to pay estimated payroll tax owed on your vested stock awards and remitted the withholding to the CRA. The taxable benefit of your stock award will be included in box 14 and 38 of your T4 that Lineage provides after the end of the tax year.

Lineage withholds RSU income in Canada at the highest combined rate (inclusive of federal and provincial tax). Please also note that while Lineage withheld a portion of awards that vested, it is possible that due to your income and other factors, you may owe taxes for last year’s vesting events beyond what was withheld by Lineage.

It’s highly recommended that you work with a professional tax advisor to understand how your equity impacts your tax situation. The tax treatment of equity compensation is complex and may be subject to additional rules and exceptions that are not discussed here. It’s important that you understand the types of taxes you may be subject to when you receive equity, provide the right documents to your tax preparer to submit an accurate annual tax filing, etc.

Dividends are payments made to shareholders from a portion of the company's earnings. These distributions stem from its earnings/profits from the current fiscal year, then from prior years’ accumulated earnings/profits. 

Shareholders will receive dividend payments once declared and paid. This traditionally takes place on a quarterly basis, and dividend declarations are subject to change by Lineage. 

For REITs, dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital (each of which can be taxed at a variety of unique tax rates). 

All public companies, including REITs, are required to provide shareholders with information clearly stating how the prior year's dividends should be allocated for tax purposes. 

The taxability of the dividend will be reported to you on your Form 1099-DIV. Further, Lineage will issue a press release in conjunction with the issuance of forms 1099 that describes the taxability of its annual dividends. 

Note on Dividend Equivalent Rights (DERs):  When Legacies Restricted Stock Units (RSUs) vest, recipients receive a lump-sum cash payment. This payment value is equivalent to the dividends that would have accumulated if the RSUs had not been subject to a vesting requirement and are called Dividend Equivalent Rights (DERs). The lump-sum payment is processed through payroll, similar to regular cash payments, and is subject to standard payroll withholding. 

Disclosure: These statements are for informational purposes only and not intended to be a formal opinion of tax consequences, and accordingly, it may not contain a full description of all the facts or a complete analysis of all relevant tax issues and authorities. The analysis and conclusions discussed are based on our understanding of the facts, assumptions, information, and documents referenced herein, as well as current tax laws and published tax authorities in effect as of the date of this presentation, which are subject to change. If the facts or assumptions described herein are incorrect or change, or the tax laws change, our analysis and conclusions would likewise be subject to change. Please consult a qualified tax advisor if you have any questions about your individual circumstances.

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Please refer to the following instructions regarding the beneficiary process in Shareworks

Participants can access the launch page through a web address and/or Workday via site kiosk. If no kiosk is available, please connect with HR partner to find out about free internet access and services in your area.