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).
(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
(b)retirement on reaching the specified age, or any other age at which P is bound to retire in accordance with the terms of P’s contract of employment,
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) or (b), share options granted 3 years or less before the termination date may not be exercised at all.
(5)The scheme may provide that, in a case where P ceases to hold the scheme-related employment only because—
(a)it is in a company of which the scheme organiser ceases to have control, or
(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,
the options may be exercised within 6 months after the termination date.
(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).