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The legal template for EMI Share Option Rules (Exit Only) under UK law is a comprehensive document that outlines the provisions and regulations associated with the enterprise management incentive (EMI) share options scheme in the United Kingdom. This template specifically focuses on the exit scenarios that may arise for employees or key personnel who hold EMI share options.

The EMI share options scheme is a tax-advantaged employee share scheme designed to incentivize and reward employees by offering them the opportunity to acquire shares in their employer company. These options grant employees the right to purchase shares at a predetermined price, usually at a future date or following specific events such as an exit event.

This legal template caters to the exit scenario, which typically refers to events like the sale or disposal of the employer company, merger or acquisition, or an initial public offering (IPO) listing. In these circumstances, the template offers guidance and sets out provisions on how the EMI share options should be handled and exercised by the employees.

Key aspects covered in this template typically include the following:

1. Vesting and exercising the EMI share options upon exit: The template outlines the process and conditions under which employees can choose to exercise their options, whether immediately upon exit or at a later date. This includes addressing factors like lock-up periods or any restrictions imposed by law or agreements.

2. Valuation and pricing: It specifies how the share options should be valued or priced during the exit event, ensuring both the employees and the employer company are treated fairly and in adherence to legal requirements.

3. Tax implications and treatment: The template provides information on the tax implications for employees exercising their EMI share options upon exit, offering clarity on any tax relief or obligations.

4. Transferability and restrictions: The template may address any limitations or transfer restrictions on the EMI share options during an exit, protecting the interests of both employees and the employer company.

5. Communication and notification: It establishes a framework for the employer to communicate with employees about the exit event and their rights and obligations regarding the EMI share options scheme.

Overall, this legal template serves as a comprehensive guide for employers and employees participating in the EMI share options scheme in the UK, ensuring transparency, compliance with relevant laws, and fair treatment for all parties involved in the event of an exit.