A Performance Phantom Share Plan contains two distinct performance-based elements. First, employees must achieve certain pre-determined performance targets. Should they do so they are awarded phantom shares. The number of shares may vary by employee and by the degree to which the targets were achieved. Financial targets might include such measures as Pre-tax Income or EBITDA. The second performance element relates to the potential improvement in value that may come through phantom stock value appreciation. Once awarded, the phantom shares may still remain subject to vesting schedules or other restrictions. The tax effect to employees is identical to that of phantom stock.