Introduction
A Notice of Exercise is a document that confirms when a stakeholder exercises their stock options or warrants. It typically includes the stakeholder's details, exercise date, strike price, number of options exercised, and total payment amount.
Using Ledgy's document templating feature, you can create a Notice of Exercise template that automatically fills in this information from your cap table, saving time and ensuring accuracy.
This article explains how to create a Notice of Exercise template with variables and how to use it when processing option exercises in Ledgy.
Who can use document templates: You need to be an account admin in Ledgy to create and use document templates.
Creating the Notice of Exercise template
To create a template that automatically populates with information from Ledgy, you need to insert specific variables into your document.
To create this template:
Go to Documents > Templates > Upload template
Upload a Word document created using the guide below:
Essential variables for Notice of Exercise
Include these variables in your Word document template:
Stakeholder details:
{stakeholder.name} {stakeholder.address.line1} {stakeholder.address.line2} {stakeholder.address.postcode} {stakeholder.address.city} {stakeholder.address.country}Exercise date:
{date}Strike/exercise price:
{sharePrice}Number of options exercised:
{amount}Total payment amount:
{investment}
Example template structure
A typical Notice of Exercise template might look like this:
The following is a more generic and simple example of a Notice of Exercise template:
NOTICE OF EXERCISE
Date: {date}
To: [Company Name]
From: {stakeholder.name}
{stakeholder.address.line1}
{stakeholder.address.line2}
{stakeholder.address.city}, {stakeholder.address.postcode} {stakeholder.address.country}
I hereby exercise {amount} stock options at a strike price of {sharePrice} per share, for a total payment of {investment}.
Sincerely,
{stakeholder.name}
Download a template
You can download a Notice of Exercise template example to use as a starting point.
Additional variables
If you need more information in your template, check the complete list of available variables that Ledgy can automatically populate.
Formatting tips
Use Word format (.docx) for your template
Test your template with sample data before using it in production
Ensure the document size does not exceed 32 MB
Use clear formatting and spacing for readability
Using the template when exercising options
You will now attach the template you created as an equity settlement template for a plan.
To do so:
Go to Equity plans > Pools and plans
Either
Edit an existing plan by clicking on the 3 dots next to the plan
create a new plan by clicking + Add plan button on the top right of the page
Within the Modal, go to Optional fields > Documents & signatures > Equity settlement template
Attach your exercise notice template
Click save at the bottom right corner of the modal
By following these steps, the corresponding document will be automatically generated, formatted to PDF, and attached to the exercise transaction.
Best practices
Before creating templates
Review your company's legal requirements for Notice of Exercise documents
Ensure all necessary information is included in your template
Test the template with sample data before using it with real exercises
When processing exercises
Verify all exercise details are correct before generating documents
Double-check the number of options being exercised
Confirm the strike price matches the grant terms
Review generated documents before sending them to stakeholders
After generating documents
Keep copies of all Notice of Exercise documents for your records
Ensure stakeholders receive and acknowledge their exercise documents
Store documents securely for tax and compliance purposes