Share Option

DiscoPaul_2

Good evening,

I was just wondering if it would be possible for someone with more awareness and knowleddge of these things than myself, to break down the following into lehmans terms for me please.

"The is to certify that the holder of an option, granted by the company to acquire, 37 shares of £1.00 each in the capital of the company at an excercise price of £80.00 per share. The Option is granted subject to and incorporating the rules of the companys HM revenues and customs approved share option plan and is exercisable in accordance with the terms of the plan."

I think I have a good idea, but would just like it broken down, there are also one or two phrases from the terms and conditions with I will post to be cleared up, if at all possible.

Thanks in advance.

Aegis

DiscoPaul wrote: »

Good evening,

I was just wondering if it would be possible for someone with more awareness and knowleddge of these things than myself, to break down the following into lehmans terms for me please.

"The is to certify that the holder of an option, granted by the company to acquire, 37 shares of £1.00 each in the capital of the company at an excercise price of £80.00 per share. The Option is granted subject to and incorporating the rules of the companys HM revenues and customs approved share option plan and is exercisable in accordance with the terms of the plan."

I think I have a good idea, but would just like it broken down, there are also one or two phrases from the terms and conditions with I will post to be cleared up, if at all possible.

Thanks in advance.

It means that while the option is valid you can buy up to 37 ordinary shares in the company for £80 per share.

DiscoPaul_2

And i'm assuming that the whole point of this is the difference between the £80.00 and the market value at that time?

Aegis

DiscoPaul wrote: »

And i'm assuming that the whole point of this is the difference between the £80.00 and the market value at that time?

Exactly. You can then choose to immediately sell the shares that you've bought for a profit if the value is greater than the exercise price.

gozomark

and also the time over which you have to make the decision - ie if its the next week, or the next five years

DiscoPaul_2

Well It was granted to me October 2007, The earliest possible exercise date is October 2010 and latest is October 2017.

The last time this was done by the company, the shares were worth £940 a pop, as far as im aware, so that makes me fairly happy.

Am I liable to income tax?

DiscoPaul_2

"A grant will be limited and effect so that, when aggregated with any other subsisting options granted by the company, no participant subsiting options over shares with a total market value in excess of £30,000. Market Value shalll be measured for this purpose on the date of the grant of an option"

So this is essentially saying that, regardless of the market value at the time I exercise the option, the most I will receive is £30,000? Is that likely to be before or after tax?

Thanks for your help so far guys.

DiscoPaul_2

DiscoPaul wrote: »

"A grant will be limited and effect so that, when aggregated with any other subsisting options granted by the company, no participant subsiting options over shares with a total market value in excess of £30,000. Market Value shalll be measured for this purpose on the date of the grant of an option"

So this is essentially saying that, regardless of the market value at the time I exercise the option, the most I will receive is £30,000? Is that likely to be before or after tax?

Thanks for your help so far guys.

Hi there... just wondering if anyone has any advice regarding the last post?