Covering letter to unapproved option holders for options granted pursuant to unapproved share option rules and agreement
Published by a LexisNexis Share Incentives expert
Last updated on 28/07/2020

The following Share Incentives precedent provides comprehensive and up to date legal information covering:

  • Covering letter to unapproved option holders for options granted pursuant to unapproved share option rules and agreement

Covering letter to unapproved option holders for options granted pursuant to unapproved share option rules and agreement

[insert date of letter]

[insert name of employee]

[insert address of employee]

Dear [insert name of employee]

[insert name of Company] (Company)

Option to be granted under the [insert name of unapproved share option scheme] (Scheme)

I am delighted to notify you that the directors of the Company have approved the grant of an option to you under the Scheme (Option). I enclose a copy of the rules of the Scheme and the option agreement, which needs to be executed by you and the Company in order for the grant of the Option to take effect.

Summary of the Option’s terms

The Option will entitle you to purchase [insert maximum number and type of shares which can be exercised pursuant to the option agreement] shares in the Company at a price of [insert exercise price of shares] per share [if, broadly, there is an ‘Exit’ event of the Company (which is broadly a takeover of the Company, an

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