💷 Phantom share option certificate

The legal template for a Phantom Share Option Certificate (Private Company) under UK law provides a standardized document that outlines the terms and conditions for granting phantom share options to employees or individuals associated with a private company in the United Kingdom.

Phantom share options are a type of equity incentive that provide individuals with the opportunity to benefit economically from the growth and success of a company without actual ownership or voting rights. This legal template establishes a contractual arrangement between the company and the individual, detailing the key provisions and requirements governing the phantom share options.

The template may cover various aspects such as the granting of the phantom share options, vesting period, exercise price, any performance or time-based conditions, the consequences of termination of employment or association, transferability of options, tax implications, and dispute resolution mechanisms. It may also set out the procedure for exercise and settlement of phantom share options, including the calculation and distribution of any cash or other benefits upon exercise.

By implementing this legal template, both the company and the recipients of phantom share options can have clear guidelines and certainty regarding their respective rights and obligations. It ensures a transparent and fair process for granting and exercising phantom share options, helping to align the interests of the company and its employees or associates in pursuing long-term growth and success.