Phantom share option agreement
Phantom share option agreement

The following Share Incentives precedent provides comprehensive and up to date legal information covering:

  • Phantom share option agreement

This AGREEMENT is made on [insert date of execution of the share option agreement]

Parties

  1. 1

    [insert name of company whose shares are relevant to the phantom option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company); and

  1. 2

    [insert name of option holder] of [insert address of option holder] (the Option Holder)

Background

    1. (A)

      The Company has agreed to grant to the Option Holder as at the date of this Agreement a Phantom Option on the terms set out in this Agreement.

    1. (B)

      The Phantom Option provides an entitlement to cash and not shares.

    1. 1

      Definitions

      In this Agreement, except where the context otherwise requires, the words and expressions set out below will bear the following meanings, namely:

      Cash Payment

      1. means the cash sum payable on the exercise of the Phantom Option, which shall be calculated in accordance with clause 6.2

      Control

      1. has the meaning given in section 995 of the Income Taxes Act 2007

      Date of Grant

      1. means the date on which this Agreement is entered into

      Directors

      1. means the board of directors of the Company from time to time or a duly authorised committee of such directors

      Exchange Offer

      1. has the meaning ascribed to it in clause 4.5

      Exercise Price

      1. means the price per Share stated in clause 3.2, which shall be used for the purposes of calculating the Cash Payment

      Exit

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