Lineage Legacies Program – Stock-based Benefit

Through the Lineage Legacies annual stock program, eligible team members will be granted Restricted Stock Units (RSUs) which vest over time – giving them ownership in the business.

The Legacies program is based on the performance of our company which, in turn, is dependent upon the contributions our team members make on the job every day. As team members seize opportunities to deliver for our company and our customers, Lineage succeeds – and our stock value increases along with the value of granted RSUs.

Eligibility for Legacies applies to full or part-time Lineage team members who were hired prior to March 1, 2025.

Further, temporary or seasonal workers, those on an extended unprotected leave of absence (over 1 year as of March 1, 2025) and those who are covered by a collective bargaining agreement are ineligible to receive a Legacies grant.

Otherwise, eligible team members who joined the company on or after March 1 may be eligible for any future Legacies grants.

Please contact your local HR partner if you have any questions about eligibility.

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 may send your request to Josh Avery by emailing joshavery@onelineage.com within 45 days of the issuance. After that time, all grants will be considered awarded within the system.

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.

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 the previous year, 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 tax 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 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.

What are Dividends?

Dividends are the percentage of a company's earnings that is paid to its shareholders as their share of the profits. Shareholders, in this case, include anyone who has received Lineage stock. As owners of Lineage, you are able to share in the continued value creation of Lineage as a public company through these dividend payments.

If you own vested shares by the ex-dividend date, you will receive the dividend payment in your Morgan Stanley account where your shares are held.

What are Dividend Equivalents?

Dividend equivalents are a cash payment made through payroll when your RSUs vest, equal to the dividends you would have received during the vesting period had you owned fully-vested shares. This payment ensures RSU holders receive the same benefits as shareholders, even though they don't own the stock until the awards vest and settle.

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 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 and Shareworks 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 1-877-380-7793.

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.

After your shares vest, you can place trades online through your Shareworks or E*TRADE account. To avoid paying trade fees, team members are encouraged to transfer shares to E*TRADE before they vest. This can help to minimize costs and maximize the value of your RSUs, allowing you to make the most of your awards.

In addition to online trading, you can also place trades over the phone with a broker at Morgan Stanley for an additional fee. This option provides flexibility for team members who may prefer to work with a broker or who have more complex trading needs. By offering multiple trading options, the Legacies plan ensures that team members can manage their RSUs in a way that best suits their preferences and needs.

If you have additional questions when considering a potential trade, please reach out to Morgan Stanley Financial Wellness and Planning at 1-866-324-6087.

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

Resource	Description	Contact Information
Shareworks Stock Plan Customer Service	Assistance with your online Shareworks account	1-877-380-7793
Morgan Stanley Financial Wellness and Planning	Financial planning and advice	1-866-324-6087
Shareworks Stock Plan Support Center	FAQs on employee stock ownership and navigating Shareworks	Shareworks Support Center | Morgan Stanley at Work
Shareworks Login	URL for the Shareworks login page	Morgan Stanley at Work - Login
Shareworks Tax Guide	Shareworks tax filing guidance
E*TRADE Tax Guide	E*TRADE tax filing guidance