The Phantom Share Agreement serves as a critical tool for companies seeking to provide equity-like incentives without diluting actual ownership. This document type is particularly valuable for private companies, family-owned businesses, or organizations with restricted ownership structures. Governed by U.S. law, particularly IRC Section 409A, the agreement details the grant, vesting, valuation, and payment terms of phantom shares. It provides a framework for long-term employee incentivization while maintaining existing ownership structures and avoiding complex securities registration requirements.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership聽of your docs
1. Parties: Identifies the company and the participant receiving phantom shares
2. Background: Explains the purpose of the phantom share plan and company's intention to grant phantom rights
3. Definitions: Defines key terms including Phantom Shares, Fair Market Value, Vesting Date, Payment Event
4. Grant of Phantom Shares: Details of the phantom shares being granted, including number and grant date
5. Vesting Provisions: Specifies vesting schedule and conditions
6. Valuation Methodology: Explains how phantom shares will be valued
7. Payment Terms: Specifies when and how payments will be made upon vesting
8. Tax Provisions: Addresses tax withholding and Section 409A compliance
1. Change in Control Provisions: Addresses treatment of phantom shares in case of company sale or merger
2. Non-Competition Clause: Restricts participant's ability to compete with company
3. International Provisions: Addresses cross-border tax and regulatory issues for participants based outside the US
1. Schedule A - Vesting Schedule: Detailed breakdown of vesting dates and conditions
2. Schedule B - Valuation Methodology: Detailed explanation of how phantom shares will be valued
3. Schedule C - Section 409A Compliance Addendum: Detailed provisions ensuring compliance with IRC Section 409A
Find the exact document you need
Equity Option Contract
A U.S.-governed contract establishing the terms for the right to buy or sell equity securities at specified terms.
Download
Employee Stock Grant Agreement
A U.S. legal agreement outlining terms for granting company stock to employees, including vesting schedules and transfer restrictions.
Download
Advisor Stock Option Agreement
A U.S.-governed agreement that establishes terms for granting stock options to company advisors as compensation for their services.
Download
Option To Purchase Shares Agreement
A U.S.-governed agreement granting rights to purchase company shares at a preset price and conditions.
Download
Option Grant Agreement
A U.S.-governed agreement that grants stock options to employees or other eligible recipients, specifying terms for future stock purchase at preset prices.
Download
Phantom Share Agreement
A U.S.-governed agreement providing synthetic equity rights that mirror stock ownership benefits without actual share issuance.
Download
Employee Share Agreement
A U.S.-governed agreement establishing terms for granting company shares to employees as part of compensation or incentive programs.
Download
Employee Stock Option Agreement
A U.S. legal agreement granting employees the right to purchase company stock at preset terms under federal securities and tax laws.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it