Maryland 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

Maryland Share Appreciation Rights Plan with Amendment The Maryland Share Appreciation Rights (SAR) Plan with Amendment is a compensation incentive program offered by companies to their employees that is specific to the state of Maryland. This plan grants eligible employees the right to receive appreciation in the value of a specified number of company shares, similar to stock options but without the requirement to purchase the shares. Under the Maryland SAR Plan, employees are granted SARS, which represent the right to receive the difference between the fair market value of the company's shares on the date of exercise and the grant price of the SAR. This appreciation is usually paid out in cash or company shares, offering employees an opportunity to benefit from the company's growth without directly purchasing shares. The amendment to the Maryland SAR Plan involves making changes or modifications to the existing plan. These amendments can vary based on the company's requirements, industry regulations, or other factors. Common amendments may include altering the eligibility criteria for employees, adjusting the grant price, changing the vesting period, or modifying the payout method. Different types of Maryland Share Appreciation Rights Plans with amendments may exist, depending on the specific needs and preferences of each company. These can include: 1. General Maryland SAR Plan: This plan is designed to compensate a broad group of employees, typically offered to all eligible employees regardless of their position. 2. Executive Maryland SAR Plan: This plan is usually tailored for top-level executives and key management personnel within the organization, offering them a more significant number of SARS and additional benefits to attract and retain high-level talent. 3. Restricted Maryland SAR Plan: In this type of plan, the SARS are subject to certain restrictions or limitations, such as a predetermined vesting period or performance-based conditions that must be met before the SARS can be exercised. 4. Performance-Based Maryland SAR Plan: This plan links the SARS' exercise and payouts to the company's performance metrics, such as revenue growth, earnings per share, or other predetermined financial goals. 5. Rolling Maryland SAR Plan: This plan allows the company to issue new SARS periodically, providing ongoing opportunities for employees to participate and benefit from the company's performance. It is important to note that the specific terms and conditions of the Maryland Share Appreciation Rights Plan, including any amendments, may vary from company to company. Employees should carefully review their company's plan documents and consult with the appropriate legal and financial professionals for personalized advice and guidance.