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Erin Hall, an attorney in Minnesota, provides information on phantom stock plans. These plans involve a contract where the owner or beneficiary can receive a payout based on the company's value at a later date. The company's value is determined through an independent appraisal service, incurring some costs. Phantom stock plans allow business owners to provide ownership interest to employees without transferring actual ownership. This can be a way for employees to receive value from the company upon the sale of interests, such as through acquisition or closure.