Team members are nominated by their managers for LTICP awards and the Human Resources Committee of the Wells Fargo Board of Directors approves the grants. These awards are based on your performance and potential to affect the long-term stock price of Wells Fargo. The amount of your award depends on your pay, individual performance, long-term potential, and level of responsibility. The dollar amount approved by the Board is then converted into stock option shares.

As a recipient of LTICP stock options from Wells Fargo, you are considered a key member of the leadership team with the potential to have a critical impact on overall Wells Fargo results and our stock price. These stock options are designed to encourage you and other key members of the Wells Fargo team to buy and hold stock in the organization. Wells Fargo’s Board of Directors and management strongly believe in the importance of linking your interests to the long-term success of the Company through stock ownership.

Stock options are part of your total compensation and an opportunity for you to gain financial rewards from Wells Fargo's success. Your total compensation includes base pay, benefits, and may include variable pay in the form of bonuses, long-term incentives, or both.

How Stock Options Work
A stock option gives you the right to “exercise” or buy shares of Wells Fargo common stock some time in the future. What’s more, it gives you the right to buy shares at a specified fixed price called the “exercise price.”

If Wells Fargo stock increases in value, you profit. The amount of profit is the difference between the fair market value on the day you exercise and the exercise price. “Exercising” an option is purchasing the stock at the exercise price. After you buy your shares, you can hold them or sell them at your discretion. It is your choice.

Leaving Wells Fargo on LTICP Stock Options
In general, current LTICP stock option grants allow you to exercise vested options within a short period of time after you terminate employment. The amount of time you have to exercise or the reason the grant may be forfeited depends on when and why you are leaving Wells Fargo.

For retirement, death, or permanent disability, you may have a longer period of time to exercise your option. The exact termination provisions are described in the grant agreement or term sheet you received.

It is important to read your grant materials and keep track of your expiration dates. Wells Fargo will not remind you of the expiration date.

For a copy of the award term sheet or grant agreement for LTICP stock option grants made prior to August 2007, contact Wells Fargo Stock Option Plan Administration by email at excomp@wellsfargo.com. For LTICP stock option awards beginning in August 2007, the award term sheets and grant agreements are available by signing on to Stock Options Management and clicking on a specific grant date from the Grant Summary.