SAYE explanatory booklet

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

  • SAYE explanatory booklet

SAYE explanatory booklet

[INSERT NAME OF COMPANY] SAYE SHARE OPTION SCHEME (THE SCHEME) EXPLANATORY BOOKLET

What is an SAYE share option scheme?

Save As You Earn (SAYE) is a special type of share option scheme which is governed by statute and can deliver the following tax advantages in relation to each option granted under it:

  1. no tax on the grant of the option

  2. no tax on the exercise of the option (provided that it is exercised in specified circumstances referred to below)

  3. [no tax on the discount to the price you pay to buy the shares under option] [delete if necessary]

  4. [no tax on any interest or cash bonus paid over the term of the savings contract] [amend as necessary]

The Scheme works by offering you an option to buy ordinary shares (‘Shares’) in [insert name of company] (the ‘Company’) at a price per Share which is set at [the current market value of a Share at a discount of [insert percentage] to the current Share price] (the Exercise Price) at the end of a [insert three or five]-year savings period using the monthly savings you have contributed over that time[ plus any tax-free savings bonus paid on your savings].

If you are granted an option under the Scheme (your Option) then, if the share price increases over that savings period, you will be able to buy each of

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