All Countries
Mergers & Acquisitions
Phantom Unit Award Agreement

Phantom Unit Award Agreement Template for Belgium

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Phantom Unit Award Agreement

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

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Phantom Unit Award Agreement

"I need a Phantom Unit Award Agreement under Belgian law for our tech startup, granting 1,000 phantom units to our senior developers with a 4-year vesting period starting March 2025, including specific provisions for an anticipated IPO within the next 3 years."

Celebrated by
Collaborations with
Investors
Document background
The Phantom Unit Award Agreement is utilized when companies operating under Belgian law wish to provide employees with synthetic equity-based compensation without diluting actual shareholding. This document is particularly relevant for private companies, subsidiaries of international groups, or organizations seeking to create long-term incentives while maintaining simplified corporate structures. The agreement must comply with Belgian corporate law, employment regulations, and tax requirements, making it distinct from similar agreements in other jurisdictions. The document typically includes comprehensive details about the phantom unit grant, vesting conditions, valuation mechanisms, and payment terms, while addressing specific Belgian requirements regarding social security contributions and personal data protection under GDPR. It serves as a crucial tool for employee retention and alignment of interests while maintaining legal compliance in the Belgian context.
Suggested Sections

1. Parties: Identification of the company and the award recipient

2. Background: Context of the phantom unit award program and its purpose

3. Definitions: Key terms including Phantom Units, Fair Market Value, Vesting Date, and Payment Date

4. Grant of Phantom Units: Number of units granted and basic terms of the award

5. Vesting Schedule: Timing and conditions for vesting of the phantom units

6. Valuation: Method for determining the value of phantom units at payment

7. Payment Terms: Timing and form of payment for vested phantom units

8. Tax and Social Security: Tax treatment and social security implications of the award

9. Termination of Employment: Impact of employment termination on phantom units

10. Confidentiality: Obligations regarding the confidentiality of award terms

11. Data Protection: GDPR compliance and personal data processing provisions

12. Governing Law and Jurisdiction: Application of Belgian law and jurisdiction

13. Entire Agreement: Integration clause and relationship to other agreements

Optional Sections

1. Change of Control: Treatment of phantom units in case of company sale or merger

2. International Transfer: Provisions for employees transferring between countries

3. Clawback: Company's right to recoup payments in specified circumstances

4. Non-Competition: Restrictions on competitive activities linked to the award

5. Administrative Provisions: Details about plan administration and record-keeping

6. Amendment Procedures: Process for modifying award terms

7. Dispute Resolution: Alternative dispute resolution procedures

8. Currency Conversion: Rules for converting payments between currencies

Suggested Schedules

1. Schedule A - Vesting Schedule: Detailed timeline and conditions for vesting

2. Schedule B - Valuation Methodology: Detailed formula and procedures for unit valuation

3. Schedule C - Tax Summary: Overview of Belgian tax treatment and withholding requirements

4. Schedule D - Data Processing Notice: Detailed GDPR-compliant data processing information

5. Appendix 1 - Award Notice: Specific details of individual grant including number of units and dates

6. Appendix 2 - Acceptance Form: Form for participant to accept the award and terms

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Award
Award Date
Award Notice
Board
Cause
Change in Control
Company
Competition
Confidential Information
Data Protection Laws
Disability
Fair Market Value
Good Leaver
Good Reason
Grant Date
Group
Parent Company
Participant
Payment Date
Performance Conditions
Phantom Unit
Phantom Unit Account
Plan
Plan Administrator
Reference Price
Retirement
Service
Subsidiary
Tax
Tax Authority
Termination Date
Third Party
Unit Value
Valuation Date
Vested Phantom Units
Vesting Date
Vesting Period
Vesting Schedule
Working Day
Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Healthcare

Telecommunications

Real Estate

Consumer Goods

Energy

Media and Entertainment

Life Sciences

Consulting

Relevant Teams

Human Resources

Legal

Finance

Compensation and Benefits

Executive Leadership

Board Secretariat

Payroll

Tax

Corporate Development

Talent Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Senior Vice President

Managing Director

Department Head

Senior Manager

Key Account Manager

Technical Lead

Principal Engineer

Senior Consultant

Regional Director

Country Manager

Head of Sales

Research Director

Product Manager

Operations Manager

Industries
Belgian Companies and Associations Code (BCAC): Governs corporate structures and arrangements, including synthetic equity instruments like phantom units
Belgian Income Tax Code: Regulates the taxation of phantom unit payments as they are typically considered employment income
Belgian Labor Law of 3 July 1978: Governs employment relationships and compensation arrangements, including supplementary compensation schemes
Law of 26 March 1999 (Stock Option Law): While primarily focused on stock options, provides guidance on the tax treatment of equity-based compensation including phantom rights
Belgian National Collective Bargaining Agreement No. 90: Regulates non-recurring result-bound benefits, which may be relevant for phantom unit performance conditions
EU General Data Protection Regulation (GDPR): Regulates the processing of personal data in the context of administering the phantom unit program
Belgian Social Security Legislation: Determines social security contributions applicable to phantom unit payments
Belgian Financial Law of 2 August 2002: Regulates financial instruments and market practices, may be relevant for phantom unit valuation mechanisms
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Company Share Transfer Agreement

A Belgian law-governed agreement facilitating the transfer of company shares between parties, outlining terms, conditions, and obligations of the share transfer transaction.

find out more

Phantom Unit Award Agreement

A Belgian law-governed agreement establishing synthetic equity compensation through phantom units, detailing award terms and compliance requirements.

find out more

Buffer Stock Agreement

Belgian law-governed agreement for managing buffer stock storage arrangements, detailing storage conditions, quality maintenance, and operational procedures.

find out more

Stock Surrender Agreement

A Belgian law-governed agreement documenting the voluntary surrender of shares by a shareholder back to the company or designated party.

find out more

Incentive Stock Option Agreement

A Belgian law agreement granting employees the right to purchase company shares under specified terms and conditions as part of their compensation package.

find out more

Stock Award Agreement

A Belgian-law governed agreement detailing the terms and conditions of company stock awards to employees, including vesting, restrictions, and local tax implications.

find out more

Stock Option Award Agreement

A Belgian law-governed agreement detailing the terms and conditions of stock options granted by a company to an employee, including exercise rights and tax implications.

find out more

Partnership Share Transfer Agreement

Belgian law agreement facilitating the transfer of partnership shares between parties, including transfer terms, conditions, and regulatory compliance requirements.

find out more

Stock Issuance Agreement

A Belgian law-governed agreement documenting the issuance of new shares in a company, setting forth terms, conditions, and compliance requirements for share subscription.

find out more

Share Cancellation Agreement

A Belgian law agreement governing the cancellation of shares in a company, including terms, conditions, and regulatory compliance requirements.

find out more

Share Buyout Agreement

A Belgian law-governed agreement documenting the terms and conditions for the purchase and sale of company shares, including price, warranties, and completion requirements.

find out more

Phantom Equity Agreement

Belgian law-governed agreement establishing phantom equity rights that simulate share ownership benefits without actual share issuance.

find out more

Share Issue Agreement

A Belgian law-governed agreement documenting the terms and conditions for issuing new shares in a Belgian company, including share details, payment terms, and regulatory compliance requirements.

find out more

Share Buyback Agreement

A Belgian law-governed agreement detailing terms and conditions for a company's repurchase of its own shares from existing shareholders.

find out more

Stock Transfer Contract

A Belgian law-governed agreement facilitating the legal transfer of shares between parties, outlining terms, conditions, and completion requirements.

find out more

Stock Borrowing Agreement

Belgian law-governed agreement establishing terms for securities lending transactions between institutional parties, incorporating local and EU regulatory requirements.

find out more

Share Exchange Agreement

A Belgian law-governed agreement facilitating the exchange of shares between companies or shareholders, detailing exchange terms and ensuring regulatory compliance.

find out more

Share Swap Agreement

Belgian law-governed agreement establishing terms for share swap transactions, including payment obligations and regulatory compliance requirements.

find out more

Stock Repurchase Agreement

A Belgian law-governed agreement documenting a company's repurchase of its own shares from existing shareholders, ensuring compliance with BCCA requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’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; Genie’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

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.