Indiana 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

The Indiana Share Appreciation Rights Plan, with amendments, is a compensation arrangement designed to reward employees and stakeholders of Indiana-based companies. Under this plan, eligible individuals are granted the opportunity to receive appreciation rights, which provide financial compensation based on the increase in the value of the company's shares over a specified time period. The primary objective of the Indiana Share Appreciation Rights Plan is to incentivize employees and stakeholders to contribute to the growth and success of the company. By offering an opportunity to share in the financial upside, companies can motivate their workforce and align their interests with the overall goals of the organization. The plan typically includes various provisions and guidelines that define the terms and conditions of the appreciation rights. Companies may choose to amend the plan to address specific needs or changes in the business environment. These amendments may vary based on the circumstances and preferences of each company. One type of amendment commonly seen in the Indiana Share Appreciation Rights Plan is the performance-based adjustment. This adjustment allows for additional appreciation rights to be granted if predetermined performance targets are achieved. This motivates employees to surpass their goals and contributes to the company's overall success. Another type of amendment is the vesting schedule modification. The vesting schedule determines when appreciation rights become exercisable, meaning when employees can receive their financial compensation. Companies may amend the plan to modify the vesting period, allowing for earlier or later excitability based on specific milestones or performance metrics. Furthermore, a potential amendment could include the addition of a cash settlement option. This modification allows employees to choose between receiving the appreciation rights in cash or company shares, providing flexibility and catering to individual financial needs. It's important for companies implementing the Indiana Share Appreciation Rights Plan to consult legal and financial professionals to ensure compliance with Indiana state laws and regulations. These professionals can provide guidance on drafting appropriate plan amendments and address any potential tax implications for participants. Implementing the Indiana Share Appreciation Rights Plan with amendments can be a strategic tool for companies looking to attract and retain top talent, foster employee engagement, and drive long-term value creation. By aligning the interests of employees and stakeholders, businesses can create a culture of shared success and further enhance their competitive advantage in the Indiana market.