Standard documents

A form of notice for the exercise of an EMI option.

This document provides three background clauses, one definition, one operative clause, one testimonium and two signature clauses to be substituted into a Stand-alone EMI option agreement. This will produce a suitable precedent agreement for the release of an existing EMI option (over shares in a company now under the control of another) in consideration of the grant of a replacement EMI option (by the acquiring company) under the statutory EMI option rollover provisions. For more on this topic, see Practice note, EMI option rollover - practical issues and Practice note, EMI option rollover - practical issues: a checklist.

This document includes several precedent exercise conditions for EMI options for use with PLC's standard EMI share option plan rules and stand-alone EMI share option agreement. These conditions link exercise of the option to either a period of continued employment by the option holder after grant, or the achievment of accounts-based performance targets.For an alternative exit-only exercise condition for EMI options, see Standard document, Exit-only exercise condition for EMI options.

A precedent for a letter to be sent to option holders when the company with shares under option has made a discounted rights issue.

An exit-only exercise condition for use with PLC's standard EMI share option plan rules and stand-alone EMI share option agreement.For various alternative exercise conditions for EMI options, see Standard document, Time- and accounts-based exercise conditions for EMI options.

A stand-alone PAYE indemnity from an employee (or former employee) or consultant for PAYE tax and NICs that the employer cannot deduct or has not deducted from payments.

This standard document sets out template rules for the grant of options which will qualify as enterprise management incentives (EMI) share options under Schedule 5 of the Income Tax (Earnings and Pensions) Act 2003. The rules also provide for the grant of unapproved options, without the EMI tax advantages. Options are granted by executing an option agreement, which incorporate theses rules. For a pro-forma EMI option agreement, see Standard document, EMI option agreement. These template rules are comprehensive - users may find that draft rules they derive from them are considerably shorter. These rules include summaries of most of the statutory provisions referred to within them, which adds to their length. We have also published an EMI option agreement to be used on a stand-alone basis, without underlying EMI share option plan rules, see Standard document, Stand-alone EMI option agreement (grant by company to employee).