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34(1)The scheme must provide that, if a participant (“P”) no longer holds scheme-related employment (see paragraph 35), the options are exercisable as set out in sub-paragraphs (2) to (4).U.K.
(2)In a case where P ceases to hold the scheme-related employment because of—
(a)injury or disability or redundancy within the meaning of ERA 1996 [ or ER(NI)O 1996 ], ...
(b)retirement ...,
[(c)a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006, or
(d)if P holds office or is employed in a company which is an associated company (as defined in paragraph 35(4)) of the scheme organiser, that company ceasing to be an associated company of the scheme organiser by reason of a change of control (as determined in accordance with sections 450 and 451 of CTA 2010),]
the options may only be exercised within 6 months after the termination date.
(3)In a case where P ceases to hold the scheme-related employment for any other reason, share options granted more than 3 years before the termination date either—
(a)may not be exercised, or
(b)may only be exercised within 6 months after the termination date,
according to which of these alternatives is specified in the scheme.
(4)Subject to any provision made under sub-paragraph (5), in a case where P ceases to hold the scheme-related employment for any reason other than one within sub-paragraph (2)(a) [to (d)], share options granted 3 years or less before the termination date may not be exercised at all.
(5)The scheme may [make provision about the time when the options may be exercised] in a case where P ceases to hold the scheme-related employment only because—
(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)it relates to a business or part of a business which is transferred to a person who is not an associated company of the scheme organiser [where the transfer is not a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006].
...
[(5A)If the scheme makes provision by virtue of sub-paragraph (5), the provision must be either—
(a)that the options may be exercised within 6 months after the termination date, or
(b)that the options may be exercised within 6 months after the date (if any) when P ceases to hold the employment which (before the termination date) was the scheme-related employment for a reason within sub-paragraph (2)(a) [to (d)].]
(6)This paragraph has effect subject to paragraph 30(1)(b) (options must not be capable of being exercised later than 6 months after bonus date).
(7)In this paragraph—
“scheme-related employment” means the office or employment by reference to which the person satisfies the condition in paragraph 10(1) (“the employment requirement”);
“the termination date” means the date when P ceases to hold the scheme-related employment (see paragraph 35).