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This letter is intended for use with our template share option deed (see the share options section of the templates page on our website) and it is to be sent to employees who are to be offered share options.

This letter only applies to an offer to employees under the exclusion for employee share purchase schemes set out in the Financial Markets Conduct Act 2013 (FMCA).

Please do not use this letter, or our template share option deed, if your offer is not covered by the share purchase scheme exclusion under the FMCA.

To qualify for the employee share purchase scheme exclusion under the FMCA, the company must meet the following requirements:

  • the offer must be made as part of the employee’s remuneration, or in connection with their employment or engagement
  • raising funds must not be the primary purpose of the offer
  • the company must limit the number of shares and/or options issued under the scheme in any 12 month period to 10% of the total number of shares on issue.

Employees need to be aware of the tax consequences of exercising share options and should take independent advice before accepting options.

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