Equity incentive schemes Clause Samples

Equity incentive schemes. As soon as practicable following Completion, the Company shall use reasonable endeavours to implement: (a) a “phantom” employee share option plan under which units are issued to members which shall entitle the member to benefits equivalent to holding a quantity of shares in the Company, but which shall not entitle the member to shares, rights to shares or any other legal or beneficial interest in the Company or the right to vote at any shareholder meeting of the Company; and/or (b) an employee share option plan under which a class of shares will be issued to members which shall entitle the member to a share of any available profits distributed by the Company to its shareholders and a cash payment reflecting the capital value of the shares (both in accordance with a predetermined formula) but which shall not entitle the member to any other legal or beneficial interest in the Company or the right to vote at any shareholder meeting of the Company, and which shall convert into ordinary shares on a pari passu basis, which may be sold into an IPO immediately prior to the IPO; and/or