This information applies if you have outstanding stock options or stock appreciation rights (SARs). The information generally applies to team members who have grants under the HPE plans. Also see Exercising stock options and SARs.
The treatment of any outstanding nonqualified stock options, incentive stock options (ISOs), or SARs (collectively referred to in this section as “equity,” “equity grants,” or “grants”) upon termination of employment depends on the reason for your termination and the timing of your termination. In general, your grant agreement explains whether your grant will vest upon termination and the post-termination exercise period, if any. This summary explains the general treatment of the grants upon termination; however, in general, your grant agreement and the applicable plan govern the termination of your individual grant. In all cases, grants will expire on the earlier of the end of the post-termination exercise period applicable to your situation or the expiration date in the grant agreement or grant notice.
In general, vested stock options and SARs may be exercised within three months after your termination of employment, or by the original expiration date if earlier. Please refer to Long-Term Incentives—Treatment upon Termination for additional details.
However, the following special rules may apply if your employment with HPE is terminated due to death, disability, retirement, participation in a workforce reduction program, a corporate transaction (such as a spin-merge), or for cause:
| Reason for termination | Treatment of grants under HPE's stock incentive plan |
|---|---|
| Death | Any unvested portion of your grant will vest, and your designated beneficiary or estate can exercise your grant prior to the earlier of one year from the date of death or the expiration date of your grant. |
| Total and permanent disability | Any unvested portion of your grant will vest, and you can exercise your grant prior to the earlier of three years from the date of employment termination or the expiration date of your grant, provided you comply with the terms of your grant agreement or grant notice. |
| Retirement under HPE's retirement policy* |
Grants made before November 1, 2016: Any unvested portion of your grant will vest, and you can exercise your grant prior to the earlier of three years from the date of employment termination or the expiration date of your grant, provided you comply with the terms of your grant agreement or grant notice. Grants made on or after November 1, 2016: If you terminate three months or more following the grant date of your option or SAR, vesting on any unvested time-based stock options or SARs will continue to vest according to the original vesting schedule, and you can exercise your grant prior to the earlier of three years from the date of employment termination or the expiration date of your grant, provided you comply with the terms of your grant agreement or grant notice. If you terminate prior to the three-month anniversary of the grant date of your option or SAR, any unvested time-based stock options or SARs will be forfeited upon your termination date. |
| Participation in a workforce reduction program | The treatment of grants in the case of a workforce reduction program varies. Team members will receive information about the treatment of outstanding grants through the workforce reduction program website. |
| Corporate transaction (such as a spin-merge) | Please refer to Long-Term Incentives—Treatment upon Termination. |
| For cause | Generally, all vested and unvested stock options and SARs will be cancelled upon your termination of employment. |
*The definition of retirement for purposes of equity grants (stock options, restricted stock units, long-term cash, and stock appreciation rights) may be different from the definition used for purposes of the Hewlett Packard Enterprise benefit plans (medical, etc.). The definition of retirement for equity in the U.S. is age 55 or older with at least 70 “points” (age-plus-qualifying service). Please contact for questions about what service at HPE-acquired companies is credited as qualifying HPE service for this purpose. Internationally, the definition of retirement depends on the country policy. If you have any questions regarding the treatment of your equity upon retirement in connection with your specific grants, contact Merrill Lynch. You can also verify eligibility for retirement treatment under your grants by reviewing your grant agreements and the applicable plan.
Please note that the vesting rules on termination and the post-termination exercise periods may be different for equity grants acquired by Hewlett Packard Enterprise pursuant to a merger or an acquisition. In addition, the post-termination exercise period for ISOs may be different. For example, in some cases, you can exercise vested ISOs until the earlier of three months from your termination date or until the original expiration date. Check your grant agreement for the vesting rules and terms of expiration.
For more information and grant exercise procedures, see: