If you are receiving a company stock award, no action is needed to accept your award. However, you will need to create a Shareworks account to access your award (see steps 1-7 below).

If you are receiving RSUs, you will need to create a Shareworks account and accept your award on the Shareworks website (see steps 1-10 below).

Create an account in Shareworks 

Use your company email address (if you have one) OR the personal email address listed as your “Home (Primary)” address within Workday to create your account in the Shareworks platform. Here are the steps you’ll need to follow:

1. Visit https://shareworks.com/activate (opens in a new tab)
2. Enter your company email address
   1. Note: If you have an @lineagelogistics.com email address listed as your Work Email in Workday, you will need to use that address to create your Shareworks account.
3. Complete the captcha section
4. In 30 minutes, you will receive an email that contains a link to activate your account
   1. Note: The email message may contain specific information to have handy to complete the activation process.
5. Click the link to access a verification page and enter the required identifying information
   1. Note: When setting up your Shareworks account, you are asked to enter your hire date. You need to use the date named in Workday under “Hire Date”— and not the date listed as your “Original Hire Date.” Anyone who joined Lineage through an acquisition will have an Original Hire Date that is different from their listed Hire Date in Workday.
6. Once your identity is verified, a login ID, username, and password is created
   1. Note: If you choose not to create a username, you will be provided with an account number as your username.
7. Once log-in credentials are established, immediate access to your account is provided

Accept 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 Starting LINE 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”.

See the following quick guide for the above process with accompanying screenshots.

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.

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 desposited in your account in order to hold or sell those shares.        

Through our relationship with Morgan Stanley, you can transfer any shares to their Etrade brokerage platform. The shares can be sold on that platform or the shares can be transferred to another brokerage platform of your choice and either held of sold.

There is a $9.99 flat service fee to sell shares through your Shareworks account and $0 commission to sell via the E*TRADE platform. If you initiate a sale via the call center, it is a $25 fee per trade.

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.    

Initial Award of RSUs/Stock

At vest/delivery, RSUs are subject to tax withholding at supplemental wage withholding rates. The same is true of direct stock awards that are not subject to vesting requirements.

To cover any required tax withholding obligations, Lineage will automatically withhold shares based on your estimated tax liability.

Within your Shareworks account, you will see the new net number of shares released to you after tax withholding.

Note: Income from RSU vest/delivery will be reflected on your Form W-2 at year end. Although shares are withheld/sold to cover tax obligations at vest/delivery, there is no Form-1099 issued for this transaction.

Tax Basics for Stock Plan Transactions (Sales of Stock)

Tax reporting for stock plan transactions can be confusing, as you need to understand federal income tax laws and regulations, as well as know which Internal Revenue Service (IRS) forms must be filed.

If you sell stock because of participation in your company’s stock plan, you may need to:

• Refer to the cost basis in your account
• Make any adjustments to it, if necessary
• Determine whether you have realized a capital gain or loss

If you sell your Lineage stock at a price greater than your cost basis (i.e. the stock price at which you originally received the shares), you will be responsible to pay a tax on the difference between the sale price and the cost basis.  Good news: you will not owe anything on the day you sell the stock.  This “capital gains tax” will be paid the following tax year as part of your annual tax filing process.

If you sell the stock within 365 days of receiving the shares, the tax rate applied to that capital gain is your personal ordinary income tax rate. If you sell the stock after holding it for over one year, you are subject to “LONG-TERM CAPITAL GAINS TAX RATES” which can be substantially less than your standard tax rate (exact capital gain tax rates are subject to your income levels in that given tax year).

Morgan Stanley will deliver a 1099 to you the year after you sell your stock, usually in February or March.  This form will be found in your online account, and it help you calculate your gain or loss on a sale.

To simplify the process, here is some basic information about stock sales that may help you have a less stressful tax season.

For your convenience, further information on:

• How do I complete the Form W-9?
• How to I complete the Form W-8BEN?
• Basics of RSUs (including taxation)

Dividends

As a Real Estate Investment Trust (REIT), Lineage will be required to pay a dividend of at least 90 percent of its taxable income each year to shareholders.

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 any 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.

Disclosure: These statements are 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.  

Dividends are payments made to shareholders of 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.

Disclosure: These statements are 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.

Going forward, our U.S. team members will have access to additional financial advisory services from Morgan Stanley – including for questions relating to Lineage's various benefits and compensation programs.

Morgan Stanley is also available more generally to offer advice regarding the big financial questions you and your family may face, such as:

• Saving for a child's college education
• Ways to decrease debt
• How to create a budget plan
• Repaying student loans
• Improving your credit

Throughout the year, there will be dedicated office hours available for you and your family members as well as ongoing Financial Advisor support via Virtual Financial Consultations.

These calls / consultations / meetings are provided to you by Lineage for free and you are under no obligation to invest your personal monies at Morgan Stanley. Your Financial Advisor can describe the types of self-directed and/or advisory relationships offered by Morgan Stanley.

Click here to schedule a meeting with a Morgan Stanley Virtual Advisor today.

Once a stock award has vested, you own the stock outright. As such, you have no obligation to the company in regards to that stock – including in the case you end your employment at Lineage. As such, if you leave Lineage, you will not need to pay anything back to the company.

Participants can gift fully vested and earned shares. However, RSUs are non-transferable until they have vested. Please refer to the following one-pager from Morgan Stanley with some helpful tips and background.

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

Participants receiving RSUs are required to complete all necessary steps and enrollment within 6 months of grant. If that is not completed, that grant will be cancelled, and all shares forefeit, regardless of employment status. Find more information in this account opening guide.

Most email providers offer free email account options—here are quick links to create email accounts in Gmail and Yahoo.

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.