With an exit-based EMI share scheme, team members only receive their shares in the organisation after the completion of any required vesting and an 'exit'.
So the option to exercise is only available when the business is sold, there is a change in control, or when another significant change in company structure occurs, along side any time based vesting schedules and performance milestones having been reached.
Exits are defined specifically in each option agreement, but typically include the following:
- The sale of your company to another
- A merger with another company
- A management buy-out
- A company buy-back
- A change in control
- An asset sale
- Floating on a public exchange