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Need to draft a Letter for Grant of Option?


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What is a Letter for Grant of Option?

A Letter for Grant of Option is a cover letter for the company to issue Option Certificates to its employees.

A Letter for Grant of Option informs the option holder how to exercise the option when he is entitled to do so according to the terms of the Share Option Plan and the Option Certificate issued to him.

A Letter for Grant of Option encloses a form of the exercise notice that the option holder can use when he exercises his option.

Key points included

  • Date of adoption of the Share Option Plan;
  • Purpose of the Share Option Plan;
  • Method of payment for exercise price; and
  • Contact for enquiries relating to the share option.

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