Employee Share Scheme Awards

Tax Systems Plc

("Tax Systems" or "the Company")

Employee Share Scheme Awards

As outlined in the Admission Document sent to shareholders dated 1 July 2016 in connection with the Company's acquisition of Tax Computer Systems Limited and re-admission of the Company's share capital to trading on AIM ("Admission") Tax Systems announces that on 26 July 2016 it made awards to two directors under the Company's recently established Employee Share Scheme ("the Scheme").

The beneficiaries of the Scheme will be entitled to receive a share in a pool of up to six per cent. of the shareholder value created, subject to the share price performance condition being met. Shareholder value is defined as the growth in the market capitalisation of the Company from the base value over a period of at least three years, and up to seven years, from the date of Admission, taking into account dividends and capital returns, if any. The awards are exercisable at nil cost up until the seventh anniversary of Admission. The base value is defined as the aggregate value of all the ordinary shares in the share capital of the Company ("Ordinary Shares") in issue at the time of Admission at 67 pence as adjusted for the issue of new Ordinary Shares after that date.

The awards of 3 per cent. of shareholder value created have been made to Gavin Lyons, Executive Chairman, (2 per cent.) and Grahame Benson, Finance Director & Chief Operating Officer, (1 per cent.).

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