ESCSC Merge Stock Grant

At HPE, long-term incentives make up part of your compensation package and are designed to reward performance and recognize future contributions. You can view your long-term incentives by visiting the Merrill Lynch website. Acceleration of unvested long-term incentives: Long-term incentives you held on 24 May 2016 may be eligible for acceleration triggered by specific events whether or not related to a spin-merge. Conversion of long-term incentives: When the ES/CSC spin-merges take place, your long-term incentives will be converted to maintain the intrinsic value of your grants. Impact on your HPE shares: If you hold HPE shares on the record date,[2] you will keep your HPE shares and receive a distribution of shares of the ES/CSC merged entity (after 31 March 2017), and shares of the Software/Micro Focus merged entity (in the second half of fiscal year 2017). Taxes: In the U.S., both spin-merges are intended to be tax free. In other countries, there may be tax implications associated with the acceleration and/or conversion of your long-term incentives and any new merged company shares you may receive at the close of either spin-merge. Restrictions: The vesting of your long-term incentives and the ability to exercise stock options or stock appreciation rights will be impacted by a blackout at Merrill Lynch. The ability to exercise your stock options and/or sell your HPE shares is governed by our insider trading policies.

HPE Equity Plan Grant Date December 2018 454 shares HPE @ ~$23 = $10,500  less taxes Number of HPE shares will stay the same, but value will go down with each spin-merge. TD Ameritrade 168 shares HPE @ ~23 in TD Ameritrade = $4,000 ESCSC Spinmerge Grant Date ??? 454 shares ESCSC @ $x.xx Amount and price of shares is not set, so there is no way to tell if the overall value of the grant will increase or decrease. Whether Grant Date is pulled forward is not clear. TD Ameritrade 168 shares HPE @ ~$x.xx in TD Ameritrade = $2,000 168 shares ESCSC @ ~$x.xx in TD Ameritrade = $2,000