An Enterprise Management Incentive (EMI) Option Agreement is a contract between a company and an employee, which grants the employee a right to buy a certain number of shares in the company at an identified price. It establishes the terms for the grant, lapse, and exercise of the option.
- Grant date
- Option shares + exercise option
- Share option plan
- Tax and national insurance liabilities
Features of option
- Generally not exercisable before exercise conditions satisfied.
- Cannot be transferred, assigned, or put under a security interest.
- Will lapse if an exercise condition becomes incapable of being satisfied.
Option holder agrees to
- Indemnify employer for tax and national insurance contributions payments.
- Enter into a joint election of shares if required by employer.
- Grant employer or a substitute power of attorney in respect of tax and national insurance obligations.
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