Wells Fargo recommends contacting a tax advisor for detailed information and guidance regarding the tax consequences relating to exercising your stock options. This general information refers to U.S. federal income tax filing only. You are responsible for determining what impact, if any, your stock option exercise may have on your state, local, or non-U.S. taxes.

PartnerShares^® are nonqualified stock options. When you exercise your options, you will be taxed on the spread — the difference between the exercise price and the market price on the date of exercise. The spread, or gain, is considered compensation, and tax withholding is due and payable at the time of exercise. The amount of gain and any taxes withheld will be included on the W-2 form you receive.

When you complete a same-day sale, as a current or former team member:

• Gain is reported on a W-2 from Payroll.
• Sale proceeds are reported on a 1099-B from the broker, Wells Fargo Investments LLC.

You are required to use the Form 1040 (long form) and Schedule D to complete your Federal Income Tax Return. Your completed Schedule D most likely will show little or no capital gains or loss to report. This would occur because the sale price used to report gain in your payroll record includes the broker fee whereas the sale proceeds reported on 1099-B may not. Additionally, your Schedule D should show the same date for sale and purchase dates (the date of exercise).

When you complete a buy and hold, as a current or former team member,

• Gain is reported on a W-2 from Payroll.

When you sell your shares, sale proceeds are reported on a 1099-B from the broker, Wells Fargo Investments LLC.

When you sell stock, you are required to use the Form 1040 (long form) and Schedule D to complete your Federal Income Tax Return and may be subject to a capital gain or loss.