Phantom Stock Agreement Sample
A company gives a Phantom Stock Units consultant with a four-year ban. The value is 1000 shares. At the time of issue, the value of the shares is $1. In four years, at the execution, the value is now $5. In general, only selected employees are selected to get Phantom Stock, for example.B. Phantom share plans are deferred compensation agreements that distinguish employees based on the value of the company`s stock. The price, since it is not a real stock, does not give employees property rights over the company. 3. Payment/certificates.
With respect to the compliance of phantom shares, subject to paragraph 6, the company must: (a) issue a certificate or certificate of common shares on your behalf without a caption (except for a legend required by applicable securities laws or any other agreement in which you participate); (b) to charge you an amount equal to the fair value of the shares that would otherwise be issued to you; or (c) pay and issue a combination of cash and shares that, combined with the fair value of shares that would otherwise be issued to you; in any event, in the event of derito cancellation of ghost actions that have hay; However, if this payment or issuance of shares cannot take place before the first day, this payment is not subject to the additional tax levied in section 409A of the code. 7. Amendment. Unless otherwise stated below, this Agreement may not be amended in any way by an oral statement, insurance or agreement from an employee, officer or representative of the company, or by a written agreement that seriously infringes your rights under that agreement, unless she and a company official expressly authorized by the Company to execute this document are signed. However, this agreement can be amended, as permitted by the provisions of the plan, as is the case at the time of this agreement. Notwithstanding the contrary provisions of the plan or this agreement, where the Committee considers that the terms of this grant are not fully or partially in accordance with the requirements of Section 409A of the Code, the Committee may, at its sole discretion, unilaterally amend this agreement as it deems it appropriate to comply with this section and all regulations or guidelines adopted therein. The Phantom Action Plan should determine the number of units in the shadow inventory awarded to each participating staff member. The entity may choose to grant a percentage interest rate or a certain number of units. Both can be increased in increments.
The agreement provides for a financial reward at an agreed date or event in the future. The amount of the reward is related to the market value of the company`s stock at the time of ingration. After a set period of time, participating employees receive the monetary value of the Phantom share. Phantom`s share plans are contractual agreements between: 5. Full agreement; The current legislation. The plan is included as a reference. The plan and this agreement constitute the whole agreement between the parties regarding the purpose of this Agreement and fully resolve all of the company`s past obligations and agreements relating to the purpose of this Agreement and must not be significantly altered in your interest, unless it is done by writing signed by you and the Company.