tiktok³ÉÈË°æ

All Countries
Mergers & Acquisitions
Phantom Equity Agreement

Phantom Equity Agreement Template for India

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

4.6 / 5
4.8 / 5

Let's create your Phantom Equity 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 Equity Agreement

"I need a Phantom Equity Agreement governed by Indian law for our Series B startup to grant our CTO 2% phantom equity rights, vesting over 4 years with a 1-year cliff, to be effective from January 1, 2025."

Celebrated by
Collaborations with
Investors
Document background
This document is essential for Indian companies seeking to implement employee incentive programs without diluting actual equity ownership. A Phantom Equity Agreement is particularly valuable for private companies, startups, and established businesses looking to attract and retain key talent while maintaining existing shareholding structures. The agreement typically includes detailed provisions for calculating synthetic equity value, vesting schedules, and payment triggers, all within the framework of Indian corporate and tax laws. It's commonly used when actual share transfer is impractical due to regulatory restrictions, foreign ownership limitations, or strategic considerations. The document must carefully navigate Indian legal requirements, including those under the Companies Act, 2013, Income Tax Act, 1961, and relevant SEBI regulations if applicable.
Suggested Sections

1. Parties: Identification of the Company and the Participant entering into the phantom equity arrangement

2. Background: Context of the agreement, including the Company's desire to incentivize the Participant through phantom equity rights

3. Definitions: Key terms including Phantom Units, Vesting Period, Trigger Events, Valuation Mechanism, etc.

4. Grant of Phantom Equity Rights: Details of the phantom equity units being granted, including number of units and percentage representation

5. Vesting: Vesting schedule, conditions, and requirements for the phantom equity rights

6. Valuation: Method and process for determining the value of phantom equity units

7. Payment Triggers: Events that trigger payment obligations (e.g., exit events, IPO, change of control)

8. Payment Mechanics: Process and timing for payments when triggered, including calculation methods

9. Termination: Consequences of employment termination on phantom equity rights

10. Confidentiality: Obligations regarding confidential information

11. Non-transferability: Restrictions on transfer or assignment of phantom equity rights

12. Taxation: Tax treatment and responsibilities

13. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate provisions including amendments, notices, and entire agreement

Optional Sections

1. Non-Competition: Restrictions on competing activities, used when the participant is in a senior position or has access to sensitive information

2. Non-Solicitation: Restrictions on soliciting employees or customers, typically included for senior employees

3. Change of Control Provisions: Special provisions for company sale or merger scenarios, included when specifically negotiated

4. Dispute Resolution: Detailed arbitration or mediation procedures, included when parties want to specify alternative dispute resolution

5. Foreign Exchange Compliance: Required when foreign nationals or cross-border payments are involved

6. Board Approval Rights: Special provisions requiring board approval for certain actions, included for senior executive arrangements

Suggested Schedules

1. Schedule 1 - Phantom Unit Details: Number of units, grant date, and representation percentage

2. Schedule 2 - Vesting Schedule: Detailed vesting timeline and milestones

3. Schedule 3 - Valuation Methodology: Detailed formula and process for calculating phantom unit value

4. Schedule 4 - Trigger Events: Comprehensive list of events triggering payment obligations

5. Schedule 5 - Payment Calculation Examples: Illustrative examples of how payments would be calculated in different scenarios

6. Appendix A - Deed of Adherence: Template for new participants joining the scheme

7. Appendix B - Notice Forms: Standard forms for various notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions
































Clauses


























Relevant Industries

Technology

Manufacturing

Financial Services

Professional Services

Healthcare

E-commerce

Telecommunications

Real Estate

Retail

Education

Consulting

Relevant Teams

Legal

Human Resources

Finance

Executive Leadership

Operations

Sales

Engineering

Product Development

Business Development

Research and Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

Senior Vice President

Vice President

Director

Senior Manager

Department Head

Key Account Manager

Technical Lead

Principal Engineer

Senior Software Engineer

Business Development Manager

Product Manager

Sales Director

Regional Manager

Industries





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

Profit Split Agreement

An Indian law-governed agreement establishing terms for profit sharing between business parties, including calculation methods and distribution mechanisms.

find out more

Stock Purchase Contract

An Indian law-governed agreement documenting the terms and conditions for the transfer of company shares between selling and purchasing parties.

find out more

Share Retention Agreement

An Indian law-governed agreement that requires specified shareholders to maintain their company ownership for a defined period, outlining retention terms and compliance requirements.

find out more

Shares Agreement

An Indian law-governed agreement that defines the rights, obligations, and relationships between company shareholders, including share transfer provisions and corporate governance mechanisms.

find out more

Share Transfer Agreement Between Individuals

An Indian law-governed agreement for transferring shares between individuals, outlining terms, conditions, and compliance requirements for the share transfer.

find out more

Share Surrender Agreement

An Indian law-governed agreement documenting the voluntary surrender of shares by a shareholder back to the company, structured under the Companies Act, 2013.

find out more

Phantom Unit Award Agreement

An Indian law-governed agreement granting synthetic equity rights (phantom units) to employees, providing economic benefits of share ownership without actual share issuance.

find out more

Stock Purchase Agreement Between Shareholders

An Indian law-governed agreement facilitating share transfers between existing shareholders, detailing transaction terms and ensuring regulatory compliance.

find out more

Stock Rental Agreement

An Indian law-governed agreement establishing terms for temporary securities lending between parties, including transfer arrangements, fees, and regulatory compliance requirements.

find out more

Stock Pledge And Security Agreement

An Indian law-governed agreement creating a security interest in shares as collateral, detailing pledge terms and enforcement mechanisms in compliance with Indian corporate and securities regulations.

find out more

Phantom Unit Agreement

An Indian law-governed agreement granting synthetic equity rights that provide economic benefits of share ownership without actual share issuance.

find out more

Stock Appreciation Rights Agreement

An Indian law-governed agreement establishing terms for Stock Appreciation Rights granted to employees, including grant, vesting, and settlement provisions.

find out more

Sale Of Shares In Private Company Agreement

An Indian law-governed agreement for the sale and transfer of shares in a private company, detailing terms, conditions, and regulatory compliance requirements.

find out more

Stock Warrant Agreement

An Indian law-governed agreement detailing terms and conditions for issuing and exercising stock warrants, including conversion rights and compliance requirements.

find out more

Stock Lease Agreement

An Indian law-governed agreement for temporary stock transfer between lessor and lessee, compliant with SEBI regulations and Companies Act requirements.

find out more

Stock Investment Agreement

An Indian law-governed agreement detailing terms and conditions for share investment, including investor rights and regulatory compliance requirements.

find out more

Restricted Stock Grant Agreement

An Indian law-governed agreement detailing terms and conditions for granting restricted company stock to employees, including vesting schedules and regulatory compliance requirements.

find out more

Stock Grant Agreement

An Indian law-governed agreement documenting the award of company shares to employees, detailing vesting schedules and compliance with local corporate and securities regulations.

find out more

Stock Redemption Agreement

An Indian law-governed agreement detailing terms and conditions for a company's redemption of its shares from existing shareholders.

find out more

Stock Option Award Agreement

An Indian law-governed agreement that documents the grant of stock options to employees, specifying terms of grant, vesting, and exercise of options.

find out more

Equity Repurchase Agreement

An Indian law-governed agreement for a company to repurchase its own shares from existing shareholders, ensuring compliance with Companies Act and relevant regulations.

find out more

Stock Option Cancellation Agreement

An Indian law-governed agreement that formally terminates previously granted employee stock options, outlining cancellation terms and mutual obligations.

find out more

Stock Issuance Agreement

An Indian law-governed agreement documenting the terms and conditions for issuing new shares by a company to investors, ensuring compliance with Companies Act 2013 and SEBI regulations.

find out more

Share Cancellation Agreement

An Indian law-governed agreement documenting the terms and process for cancellation of company shares, ensuring compliance with Companies Act 2013 and relevant regulations.

find out more

Share Buyout Agreement

An Indian law-governed agreement documenting the terms and conditions for the transfer of shares between parties, ensuring regulatory compliance and protecting stakeholder interests.

find out more

Share Distribution Agreement

An Indian law-governed agreement defining terms and procedures for company share distribution, compliant with Companies Act 2013 and SEBI regulations.

find out more

Restricted Stock Award Agreement

An Indian law-governed agreement documenting the grant of restricted company shares to employees, including vesting conditions and transfer restrictions.

find out more

Phantom Equity Agreement

An Indian law-governed agreement establishing phantom equity rights that simulate share ownership benefits without actual equity transfer.

find out more

Shares Subscription Agreement

An Indian law-governed agreement documenting terms and conditions for new share issuance and subscription between a company and investor(s).

find out more

Share Issue Agreement

An Indian law-governed agreement detailing terms and conditions for issuing new shares by a company to investors or existing shareholders.

find out more

Share For Share Exchange Agreement

An Indian law-governed agreement facilitating the exchange of shares between companies, detailing exchange terms and regulatory compliance requirements.

find out more

Share Contribution Agreement

An Indian law-governed agreement facilitating the formal contribution of shares from contributors to a receiving company, ensuring regulatory compliance and protecting all parties' interests.

find out more

Share Charge Agreement

An Indian law-governed agreement creating security over shares in favor of a lender/security holder, including charge creation, perfection, and enforcement mechanisms.

find out more

Share Buyback Agreement

An Indian law-governed agreement outlining terms and conditions for a company's repurchase of its own shares from shareholders, ensuring regulatory compliance and protecting all parties' interests.

find out more

Vested Equity Agreement

An Indian law-governed agreement that establishes terms for granting company equity with vesting conditions to employees or consultants.

find out more

Restricted Stock Agreement

An Indian law-governed agreement detailing terms and conditions for granting restricted stock to employees, including vesting schedules and transfer restrictions.

find out more

Stock Exchange Agreement

An Indian law-governed agreement between a stock exchange and trading member establishing trading rights and regulatory compliance obligations.

find out more

Stock Buyback Agreement

An Indian law-governed agreement detailing terms and procedures for a company to repurchase its own shares from existing shareholders.

find out more

Share Exchange Agreement

An Indian law-governed agreement facilitating the exchange of shares between companies and/or shareholders, detailing exchange terms and regulatory compliance requirements.

find out more

Share Swap Agreement

An Indian law-governed agreement facilitating the exchange of shares between companies, detailing swap terms and regulatory compliance requirements.

find out more

Stock Repurchase Agreement

An Indian law-governed agreement documenting terms and conditions for a company's repurchase of its own shares from existing shareholders.

find out more

Employee Stock Option Agreement

An Indian law-governed agreement detailing the terms of employee stock options, including grant, vesting, and exercise conditions.

find out more

Share Option Agreement

An Indian law-governed agreement setting out terms for granting company stock options to employees or consultants, including vesting, exercise conditions, and regulatory compliance requirements.

find out more

Letter Of Intent Share Purchase Agreement

A preliminary document under Indian law outlining the proposed terms for a share purchase transaction, serving as a precursor to the final Share Purchase Agreement.

find out more

Stock Ownership Agreement

An Indian law-governed agreement establishing shareholders' rights, obligations, and share ownership terms in a company.

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: /our-research
Oops! Something went wrong while submitting the form.

³Ò±ð²Ô¾±±ð’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; ³Ò±ð²Ô¾±±ð’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 for more details and real-time security updates.

Read our Privacy Policy.