Share Appreciation Rights Plan with amendment
Overview of this form
The Share Appreciation Rights Plan with amendment is a legal document that outlines the terms under which a corporation, such as Care Enterprises, Inc., grants its key employees the right to participate in the appreciation of its common stock. This plan differs from traditional stock options as it allows employees to benefit from the increase in stock value without actually holding shares. Instead of owning shares, employees receive cash or stock based on the net appreciation of their allocated units over time.
Main sections of this form
- Name of the Plan and Purpose: Establishes the purpose of the Share Appreciation Rights Plan.
- Administration: Details how the plan will be managed by the Compensation Committee of the Board.
- Eligibility: Identifies key employees eligible to participate in the plan.
- Units: Defines the total number of units available for grant and their non-assignable nature.
- Base Value: Establishes how the base value of the units is determined on grant date.
- Payment: Outlines how payments for the exercised units are calculated and distributed.
When this form is needed
This form is used when a corporation wishes to incentivize its key employees by allowing them to earn units linked to the appreciation of the companyâs stock value. It is useful during the establishment or amendment of an employee compensation plan that provides rewards based on the company's stock performance. Implementing this plan is ideal when a company aims to retain talent and align employee interests with shareholder value.
Who this form is for
This form is designed for:
- Corporations looking to implement a Share Appreciation Rights Plan to incentivize key employees.
- Human resources departments managing employee compensation packages.
- Board members involved in the administration of employee incentive plans.
Steps to complete this form
- Identify the company and the key employees who will participate in the plan.
- Draft the plan by outlining its purpose, administration structure, and eligibility requirements.
- Specify the total number units available for grant and establish the base value formula.
- Detail the process for the exercise of units and payment conditions for final payouts.
- Include provisions for amending the plan and terminating it if necessary.
Does this document require notarization?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to clearly define the base value and how it will be calculated.
- Overlooking eligibility criteria for employees under the plan.
- Neglecting to include conditions for unit vesting and exercise.
- Not specifying how changes to the plan will be communicated to employees.
Why use this form online
- Easy access to templates that can be customized for your corporation.
- Efficient editing capabilities that save time in drafting legal documents.
- Reliable legal frameworks provided by experienced attorneys ensure compliance with laws.
Legal use & context
- This plan is legally binding once adopted by the corporation's Board of Directors.
- It allows participants to benefit from stock appreciation without managing shares directly.
- Ensures compliance with federal securities laws regarding compensation structures.
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FAQ
Stock appreciation rights (SARs) are a type of employee compensation linked to the company's stock price during a predetermined period.However, employees do not have to pay the exercise price with SARs. Instead, they receive the sum of the increase in stock or cash.
SAR uses the motion of the radar antenna over a target region to provide finer spatial resolution than conventional beam-scanning radars.To create a SAR image, successive pulses of radio waves are transmitted to "illuminate" a target scene, and the echo of each pulse is received and recorded.
Stock Appreciation Rights Are Not Securities. Claim that exercise of cash appreciation of Stock Appreciation Rights involved insider trading and securities fraud rejected for lack of evidence of fraud and because the Rights are not securities. Riverwood granted its senior executives stock appreciation rights (SARs).
Stock appreciation rights (SAR) is a method for companies to give their management or employees a bonus if the company performs well financially. Such a method is called a 'plan'. SARs resemble employee stock options in that the holder/employee benefits from an increase in stock price.
SAR Agreement means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Award of Stock Appreciation Rights.
Stock options give employees the right to buy a number of shares at a price fixed at grant for a defined number of years into the future.Stock appreciation rights (SARs) provide the right to the increase in the value of a designated number of shares, paid in cash or shares.
Stock appreciation rights are a type of incentive plan based on your stock's value. Employees receive a bonus in cash or equivalent number of shares based on how much the stock value increases over a set period of time - usually from the date of granting the right up until the right is exercised.
Stock appreciation rights (SAR) is a method for companies to give their management or employees a bonus if the company performs well financially. Such a method is called a 'plan'. SARs resemble employee stock options in that the holder/employee benefits from an increase in stock price.
