Ƶ

Phantom Stock Award Agreement for the Netherlands

Phantom Stock Award Agreement Template for Netherlands

This document establishes the terms and conditions for awarding phantom stock units to employees under Dutch law. It creates a contractual right for employees to receive cash payments based on the company's stock value appreciation, without actual share ownership. The agreement details the grant, vesting conditions, valuation methods, payment terms, and tax implications in accordance with Dutch employment and tax legislation. It includes specific provisions for compliance with Dutch corporate law, employment regulations, and tax requirements, while providing flexibility in structuring the phantom equity incentive program.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Phantom Stock Award Agreement?

The Phantom Stock Award Agreement serves as a crucial document for companies operating under Dutch law who wish to implement equity-based incentive programs without diluting actual shareholding. This type of agreement is particularly valuable for private companies, subsidiaries of foreign corporations, or organizations where direct share ownership is not feasible or desired. The document outlines the complete framework for phantom stock awards, including grant terms, vesting conditions, valuation methodologies, and payment procedures. It ensures compliance with Dutch employment law, tax regulations, and corporate governance requirements while providing flexibility in structuring compensation. The agreement is designed to align employee interests with company performance and serve as a retention tool, particularly for key employees and executives.

What sections should be included in a Phantom Stock Award Agreement?

1. Parties: Identification of the company granting the phantom stock awards and the employee receiving them

2. Background: Context of the phantom stock program and its purpose within the company's compensation strategy

3. Definitions: Detailed definitions of key terms including 'Phantom Stock Unit', 'Fair Market Value', 'Vesting Date', 'Performance Criteria', and other program-specific terminology

4. Grant of Phantom Stock Units: Details of the phantom stock units being awarded, including number of units and grant date

5. Vesting Schedule: Specific conditions and timeline for the vesting of phantom stock units

6. Valuation Method: Methodology for determining the value of phantom stock units at various points

7. Payment Terms: Conditions and procedures for payment of vested phantom stock units

8. Tax Implications: Overview of tax treatment and responsibilities regarding the phantom stock awards

9. Termination Provisions: Effects of various types of employment termination on phantom stock rights

10. Confidentiality: Provisions regarding the confidential nature of the agreement and program details

11. Amendment and Administration: Rules for program administration and procedures for amending the agreement

12. Governing Law and Jurisdiction: Specification of Dutch law as governing law and relevant jurisdiction

What sections are optional to include in a Phantom Stock Award Agreement?

1. Performance Criteria: Additional vesting conditions based on company or individual performance metrics, used when the program includes performance-based vesting

2. Change of Control Provisions: Special provisions for phantom stock treatment in case of company sale or merger, relevant for companies anticipating potential M&A activity

3. Clawback Provisions: Terms for recouping payments under specific circumstances, particularly relevant for senior executives or regulated industries

4. Non-Competition and Non-Solicitation: Restrictive covenants tied to the phantom stock award, typically used for senior employees

5. Works Council Approval: Reference to works council approval if required under Dutch law, necessary when works council consultation was needed

6. International Tax Provisions: Special provisions for cross-border tax implications, relevant for international employees or companies

What schedules should be included in a Phantom Stock Award Agreement?

1. Schedule A - Phantom Stock Unit Details: Detailed breakdown of the phantom stock units granted, including grant date, number of units, and specific vesting dates

2. Schedule B - Valuation Methodology: Detailed explanation and examples of how phantom stock units will be valued, including specific formulas and calculation methods

3. Schedule C - Vesting Schedule: Detailed timetable of vesting dates and conditions, including any applicable performance criteria

4. Schedule D - Tax Treatment Examples: Illustrative examples of tax calculations and implications under different scenarios

5. Schedule E - Notice Forms: Template forms for various notices required under the agreement, such as exercise notices or termination notifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Equity Agreement

Cost

Free to use

Find the exact document you need

Equity Purchase Contract

Dutch law-governed agreement for the purchase and sale of company shares, including key transaction terms and regulatory compliance requirements.

Download

Investment For Equity Agreement

Dutch law-governed agreement detailing terms and conditions for capital investment in exchange for company equity, including share allocation and shareholder rights.

Download

Equity Compensation Agreement

Dutch law-governed agreement setting out terms for granting equity compensation to employees or contractors, including vesting, exercise rights, and tax provisions.

Download

Sweat Equity Partnership Agreement

A Dutch law-governed agreement establishing terms for an individual to receive partnership equity in exchange for services rendered.

Download

Sweat Equity Contract

Dutch law-governed agreement for the exchange of services for company equity, detailing service terms, equity allocation, and mutual obligations.

Download

Simple Agreement For Equity

A Dutch law-governed investment agreement providing rights to future equity in exchange for immediate funding, commonly used by startups and early-stage investors in the Netherlands.

Download

Equity Linked Agreement

Dutch law-governed agreement establishing terms for equity-linked financial instruments and related investment arrangements.

Download

Earned Equity Agreement

Dutch law-governed agreement establishing terms for earning company equity over time through employment or service performance.

Download

Private Equity Fund Agreement

Dutch law-governed agreement establishing a private equity fund structure, outlining investor relationships and operational framework.

Download

Equity Split Agreement

A Dutch law-governed agreement that establishes the terms and conditions for distributing or redistributing company equity among shareholders.

Download

Convertible Loan Agreement Startup

Dutch law-governed agreement for providing convertible loan financing to startups, with provisions for converting debt to equity under specified conditions.

Download

Advisor Equity Agreement

Dutch law agreement establishing advisory services terms and equity compensation arrangements, including vesting conditions and statutory compliance requirements.

Download

Startup Equity Contract

Dutch law-compliant agreement governing startup equity issuance and shareholder rights under Netherlands jurisdiction.

Download

Phantom Stock Award Agreement

Dutch law-governed agreement for granting phantom stock units, providing employees with cash-based equity incentives without actual share ownership.

Download

Equity Share Contract

A Dutch law-governed agreement for the transfer or issuance of equity shares, outlining terms, conditions, and shareholder rights.

Download

Equity Incentive Agreement

A Dutch law-governed agreement establishing terms for equity-based compensation between a company and its participants, including grant, vesting, and exercise conditions.

Download

Equity Award Agreement

Dutch law-governed agreement establishing terms for employee equity awards, including vesting conditions and compliance requirements.

Download

Convertible Agreement Regarding Equity

A Dutch law-governed convertible investment agreement allowing investors to convert their funding into company equity under specified conditions.

Download

Equity Release Agreement

Dutch law-governed agreement enabling property owners to access their property's equity while retaining residence rights, with specific consumer protection measures.

Download

Restricted Stock Unit Award Agreement

A Dutch law-governed agreement establishing terms for granting Restricted Stock Units (RSUs) to employees, including vesting conditions and regulatory compliance requirements.

Download

Restricted Stock Unit Agreement

A Dutch law-governed agreement setting out terms for granting Restricted Stock Units (RSUs) to employees, including vesting conditions and regulatory compliance requirements.

Download

Restricted Stock Award Agreement

Dutch law-governed agreement detailing terms and conditions for granting restricted company shares to recipients, including vesting conditions and transfer restrictions.

Download

Equity Commitment Agreement

A Dutch law-governed agreement documenting an investor's binding commitment to provide equity funding, including terms, conditions, and funding mechanics.

Download

Convertible Equity Agreement

A Dutch law agreement governing the conversion of investment into company equity shares, outlining investment terms, conversion rights, and obligations under Dutch legal requirements.

Download

Phantom Equity Agreement

A Dutch law agreement granting synthetic equity rights that simulate share ownership benefits without transferring actual equity, structured under Netherlands employment and tax framework.

Download

Employee Equity Agreement

Dutch law-governed agreement setting out terms for employee equity participation, including grant, vesting, and exercise conditions.

Download

Standby Equity Distribution Agreement

A Dutch law financing arrangement where an investor commits to purchase newly issued shares from a company over time, subject to Dutch financial regulations and EU requirements.

Download

Equity Participation Agreement

Dutch law-governed agreement establishing terms for equity investment and shareholder rights in a company.

Download

Equity Grant Agreement

Dutch law-governed agreement establishing terms for equity-based compensation grants, including vesting conditions and regulatory compliance requirements.

Download

Vested Equity Agreement

Dutch law-governed agreement establishing terms for gradual equity rights acquisition through vesting, typically used for employee compensation or stakeholder incentivization.

Download

Equity Transfer Agreement

Dutch law agreement governing the transfer of equity ownership between parties, including terms of sale and statutory requirements for share transfers.

Download

Equity Contribution Agreement

A Dutch law agreement governing the terms of capital contribution to a company in exchange for equity shares, including share issuance terms and statutory requirements.

Download

Equity Buyback Agreement

Dutch law-governed agreement for a company to repurchase its own shares from existing shareholders, ensuring compliance with local corporate and financial regulations.

Download

Equity Ownership Agreement

Dutch law-governed agreement for transferring company share ownership, including terms, conditions, and shareholder rights.

Download

Employee Stock Options Agreement

A Dutch-law governed agreement setting out terms for employee stock options, including grant, vesting, exercise conditions, and tax treatment under Dutch legislation.

Download
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s 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