Letter granting an immediately exercisable unapproved share option

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

  • Letter granting an immediately exercisable unapproved share option

Letter granting an immediately exercisable unapproved share option

[TO BE PRINTED ON COMPANY HEADED NOTEPAPER]

[date]

To [insert name of option holder]

Right to acquire [insert class of shares] shares in the capital of [name of company]

    1. 1

      [insert name of company] (Company) hereby grants you a share option (Option) to acquire [insert number] [insert class and nominal value of shares] in the capital of the Company (Shares) at an exercise price of £[insert exercise price per share] per Share (Exercise Price).

    1. 2

      The Option may be exercised from the date of this letter and shall lapse to the extent not exercised on [insert details, dates or events on which the option will lapse — this should be within 2/3 months].

    1. 3

      If you wish to exercise the Option and acquire the Shares, you must:

      1. 3.1

        provide payment to the Company in respect of the Exercise Price per Share or otherwise enter into arrangements which are satisfactory to the Company to pay the Exercise Price per Share to the Company; and

      1. 3.2

        send to [insert name] at the Company: (a) a duly completed notice of exercise of the Option in the form enclosed (the Notice of Exercise) or in such other form as the Company shall specify; and (b) a duly executed joint election under section 431(1) of the Income Tax (Earnings and Pensions) Act 2003

        and exercise of the Option will only be

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