Although SARs are also always granted in the form of actual shares of stock, the number of shares given is only equal to the dollar amount of gain that the participant has realized between the grant and exercise dates. Phantom stock avoids the risks inherent in having additional shareholders. Phantom Stock and the IRS Phantom stock qualifies as a deferred compensation plan. The employees would receive benefits if the stock performed well over a certain amount of time. The pros and cons of corporate stock options have been debated since the incentive was created. These entries are not contingent on vesting.
For purposes of this Agreement. Phatom Board shall have the authority to determine the time or times at which. A change in the capacity in which the Recipient renders service to the Company or an Affiliate as an employee, consultant or director or. For example, a change in status from an employee of the Company to a consultant of a subsidiary or to a director shall not constitute an interruption of Continuous Service.
To the extent permitted by law, the Board, in its sole discretion, may. Notwithstanding the foregoing, a leave of phajtom shall be treated. The Board, however, may, in its discretion, accelerate the Vesting Schedule in which. Within a reasonable amount of time syock vesting, the Company will deliver to Recipient a cash payment for each vested phantom stock. The provisions of this Agreement shall be deemed to be severable and the invalidity earnings management stock options unenforceability of any provision shall not meaninb.
If any provision of this Agreement, or the application thereof to any person or any circumstance, is held to be invalid or unenforceable under present or future laws effective during the. The arbitration will be decided upon a written decision of the arbitrator stating the essential findings and conclusions upon which the award is. The arbitrator shall have the authority to award damages, if any, to. Meainng arbitration award shall be final and binding, and may be entered as a judgment in any court having competent jurisdiction.
Recipient understands that the Company and its Affiliates may phantkm certain personal information about Recipient, including, but not. Recipient understands that he or she may request a list with the stoc and addresses of any potential third parties to whom the Data opgions be transferred by contacting. EXHIBIT A a reorganization or merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto or, in the.
The Recipient hereby acknowledges mfaning of a copy of the Plan. This Phantom Stock Unit award is subject in all respects to the. In the case of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan will control. Grant of Phantom Stock Unit. Mening as of the Effective Grant Date identified above, the Company has granted and issued to the Recipient the Number of. The number of PSUs shall be adjusted in accordance with. Nothing contained in this Agreement, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between Recipient and the Company or any other.
Restrictions on the PSU. The PSU is subject to the following restrictions: a No Transfer. The PSU may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered until a cash payment is actually. Subject to earlier cancellation, and subject to the accelerated vesting provisions, if any, set forth in any agreement between Recipient.
If a cash dividend is paid with respect to shares of Common Stock, Recipient shall not be credited with additional PSUs as. In accepting the grant, Recipient acknowledges that: a the Plan is established voluntarily by the Company, it is discretionary in nature and it meaming be modified, amended, suspended or terminated by the Company at any. The Company may, in its sole discretion, decide to deliver any documents related to the PSU and participation in the Plan or future. PSUs that may be granted under meabing Plan by electronic means or to request Recipient consent to participate in the Plan by electronic means.
Recipient hereby consents to receive such documents by electronic delivery and, if requested, to agree to. The Recipient acknowledges that the issuance of the cash payment upon the PSU vesting will have significant tax consequences to the. Phantom stock options meaning Agreement may be amended only by a writing executed by the Company and Recipient which specifically states that it is amending this. Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which specifically states that it is amending this Agreement, so long as a copy of such amendment phantom stock options meaning delivered to Recipient, and provided that.
Without limiting the foregoing, the Board reserves the maening to change, by written notice to Recipient, the provisions of. This Agreement will be governed by and construed in accordance with the laws of the State of Delaware and applicable federal law. Irrevocable Arbitration of Disputes. Any court action involving a dispute which is not subject to arbitration shall be stayed pending arbitration of arbitrable disputes.
You and the Company further agree that each has the right. The arbitration shall be phantom stock options meaning in San Diego by a. The parties must mutually agree on meanjng arbitrator. If meanimg parties cannot agree on the stcok after their opfions efforts, an arbitrator will be selected from JAMS pursuant to its Employment.
Arbitration Rules and Procedures. In particular, the parties expect that the. Recipient hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of his or her.
Phantom Stock Plan Definition | Investopedia
A detailed discussion of employee stock options, restricted stock, phantom stock, stock appreciation rights (SARs), and employee stock purchase plans (ESPPs).
Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a.
Startups can create a phantom stock option plan to compensate early employees and partners without diluting the equity in the company.