Document background
This Phantom Equity Agreement template is designed for use by Dutch companies seeking to implement incentive schemes that align employee interests with company performance without diluting actual shareholding. The document is particularly useful for private companies, subsidiaries of international groups, or organizations with complex shareholding structures where actual share transfers may be impractical or undesirable. The agreement complies with Dutch employment law, tax regulations, and corporate governance requirements while providing detailed terms for phantom equity rights, including grant provisions, vesting schedules, valuation methods, and payment conditions. It addresses key aspects such as exit events, termination scenarios, and tax implications within the Dutch legal framework.
