Exercising EMI Options?

[ledders22]

I was granted EMI options in April 2008 (i think) and an arrangement was made where i would be given a "dividend" in line with Company Performance. There are three other people with ordinary shares in the business who have taken dividends. I understand that the EMI options do not entitle me to a dividend and i have been rather naive and not got anything in writing from the company.
Do i have the right to exercise my options at any point or is it up to the company?

[nickis]

EMI options give you the right to buy shares in your company within a specified period at a fixed price. So if you excercise your options and buy the shares you will receive dividends once you own the shares, (if they have dividend rights attached to them and the company pays a dividend).

If you have been granted EMI options in your Employer company, then there should be an option agreement between you and the company, which will specify the date from when shares can be excercised and also the price the shares can be purchased for.

The detail of the option agreement would have been notified to HMRC within 92 days. So you should be able to obtain a copy of this from your employer.

This agreement will specify when you can excercise the options. This will be sometime from the grant of the options up to 10 years in the future. (The idea being you wouldn't excercise the options unless the market value of the shares increases, therefore incentivising and rewarding key employees)

Hope that helps.