Alabama Share Appreciation Rights Plan with amendment

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-400D
• Format: Word; Rich Text

Description

18-400D 18-400D . . . Share Appreciation Rights Plan under which stock option committee determines to whom units are awarded, number of units to be awarded and terms of such units. On grant date, committee assigns each unit a base value which cannot be less than market value of share of common stock on that date. Each award becomes exercisable with respect to 25% of units awarded on each of first four anniversaries of grant date, provided grantee has been continually employed full-time by corporation or subsidiary. Units may be exercised, to extent vested, at any time until five years after grant date. Upon exercise of vested units, grantee is entitled to receive net appreciation of such units in cash or in shares of common stock, as determined by committee

Alabama Share Appreciation Rights Plan (ASAP) is a compensation program offered by companies in Alabama that grants employees the opportunity to benefit from the appreciation of company stock. This plan is often accompanied by an amendment that specifies the terms and conditions, outlining the rights and obligations of both the employer and employees. ASAP is designed to incentivize and reward employees for their contributions to the growth and success of the company. Through this plan, eligible employees are granted a specified number of appreciation rights. These rights entitle employees to receive cash or company stock equivalent to the increase in the stock's value over a predetermined period. The amendment to the ASAP outlines various key aspects, such as the eligibility criteria, vesting schedule, exercise period, and valuation methodology. It is essential to carefully review the ASAP amendment as it provides crucial details that employees need to understand maximizing the benefits of the program. There may be different types of Alabama Share Appreciation Rights Plan with amendments based on the unique characteristics and preferences of each company. Some common variations include: 1. Performance-based ASAP: This type of plan ties the appreciation rights to specific performance goals that must be achieved for employees to receive the benefits. These goals may be related to financial targets, market share, or other key performance indicators determined by the company. 2. Time-based ASAP: This plan grants appreciation rights to employees based on their length of service with the company. Employees become eligible for these rights after successfully completing a predetermined period of employment, commonly known as the vesting period. 3. Cash-settled ASAP: In this type of plan, employees receive cash payments rather than company stock when exercising their appreciation rights. The amount of cash is calculated based on the increase in the stock's value during the exercise period. 4. Equity-settled ASAP: This plan provides employees with company stock instead of cash when they exercise their appreciation rights. The number of shares granted is determined by the rise in the stock price over the exercise period. 5. Broad-based ASAP: This plan extends the benefits of the ASAP to a wide range of employees, including executives, managers, and non-executive staff. It aims to promote a sense of ownership and alignment of interests among all employees. The Alabama Share Appreciation Rights Plan with amendment serves as a valuable tool for companies to attract, retain, and motivate their workforce. By aligning employees' financial interests with the company's performance, it cultivates a sense of loyalty and promotes long-term growth. Employees should carefully review the plan's amendment and seek professional advice to understand the details specific to their own ASAP and maximize their benefits.