A stock swap (stock-for-stock) exercise is a transaction whereby you pay for the exercise price by "swapping" Wells Fargo shares you currently own to cover the exercise price; taxes may be withheld in shares from the exercise or paid to Wells Fargo by check or wire.

The shares you swap must have been either: 

• Purchased by you on the open market
• Held by you for at least six months if they were acquired through a Wells Fargo plan

In addition, the shares must not have been used in a previous swap in the last 6 months nor acquired from the exercise of incentive stock options within the past 12 months.

The following is a list of shares that may be eligible to use in a swap transaction: 

• Shares held in certificate form
• Shares held in brokerage account
• Shares held in the Wells Fargo Stock Purchase Plan (formerly Invest Norwest)
• Shares held in the Wells Fargo Direct Stock Purchase and Dividend Reinvestment Plan
• Shares held in a revocable living trust (if the primary trustee is also the option holder)
• Shares held in joint tenancy or community property

Some examples of shares not available for stock swap transactions are:

• Shares held in an IRA brokerage account
• WFC stock units held in the 401(k) or Supplemental 401(k) Plan
• Vested and deferred restricted share rights
• Stock units or shares equivalents held in a deferred compensation plan account
• Shares owned by spouse
• Shares owned through a mutual fund
• Shares owned by a spouse's pension fund
• Unvested restricted share rights
• Restricted stock
• Stock option grants including PartnerShares^® (vested or unvested)

Wells Fargo can either register the new shares in your name at Wells Fargo Shareowner Services^SM (by direct registration, also known as book entry) or issue the shares to your Wells Fargo Investments, LLC brokerage account.

If you do not have a Wells Fargo Investments, LLC brokerage account, call 1-800-TRADERS (international: 1-612-344-0039) to open. New accounts are added automatically to the Stock Option Management tool within two days after being opened. To have a newly opened account added sooner, call 1-877-574-1039.

Depending on the grant you exercise, you may be eligible for a reload option grant when you swap.

You can complete a stock swap online by signing on to Stock Options Management from work or from home.

To complete a stock swap exercise:

1. Go to Stock Options Management and click Exercise.
2. Click Select next to the grant you want to exercise.
3. Click the radio button for “Stock Swap” and then click Continue.
4. Sign on to Stock Options Management after 4:30 p.m. Central Time to confirm the final numbers, accessible through Orders & Transactions screen under Status column as “Pending.” Click Select for each "Pending" exercise.
5. Log back into the system after 4:30 p.m. Central Time to confirm final numbers.
6. Print out and complete the Constructive Delivery Form.
7. Fax the completed form by 11:59 p.m. Central Time on the exercise date.

If you later choose to move shares out of book entry:

• Contact your broker to move them to your brokerage account
• Contact Shareowner Services at 1-800-468-9716 to request a certificate, re-register the shares, or learn more about other choices
  

To model a stock swap, click the Stock Swap and Reload Calculator in Plan Resources.

Please refer to the grant’s prospectus for the specific terms of each stock option grant.