Delaware 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 Delaware Share Appreciation Rights Plan (SHARP) is a type of equity compensation plan that allows employees of a Delaware corporation to receive appreciation rights tied to the company's stock value. This plan, with its amendment, offers employees the opportunity to profit from any increase in the stock price over a specified period. The primary objective of an SHARP is to incentivize and retain talented employees by aligning their interests with that of the company's shareholders. The plan's amendment provides for modifications to the original terms and conditions to suit evolving market conditions, changes in tax laws, or adjust to the company's performance. The Delaware SHARP typically grants participants the right to receive a cash payment equal to the difference between the fair market value of the shares at the time of exercise and a predetermined base price set at the grant date. This payout is known as the appreciation right. There are various types of Delaware Share Appreciation Rights Plan with amendments, each designed to meet specific objectives and circumstances. These different variants may include: 1. Performance-Based SHARP: In this type, the grant and exercise of appreciation rights are contingent upon meeting predetermined performance goals, such as achieving a certain revenue growth rate or increase in profitability. This aligns employee compensation with the company's overall performance. 2. Time-Based SHARP: This variant grants appreciation rights to employees based on a specific vesting schedule. As time progresses, a certain percentage of the rights become exercisable. This encourages employees to stay with the company for a predetermined period, fostering loyalty and longevity. 3. Phantom SHARP: Also known as Shadow SARS, this type does not involve the actual issuance of company shares, but participants receive cash payouts equivalent to the appreciation value upon exercise. This enables companies to bypass potential dilution of existing shareholders and offers flexibility in structuring the plan. 4. Cash-Settled SARS: Unlike stock options, this type of Delaware SHARP settles in cash rather than company shares. Participants receive a cash payment equal to the appreciation value, eliminating the need for employees to purchase the underlying stock. 5. Reload SARS: With this variant, employees who exercise their SARS receive additional grant equivalents based on the number of surrendered rights. The reloading feature ensures that participants can continue benefiting from potential future stock price increases. Overall, Delaware Share Appreciation Rights Plans with amendments empower companies to reward and motivate their employees by tying their compensation to the company's success. These plans are tailored to individual circumstances, and the specific type chosen depends on the company's objectives and desired employee incentives. It is crucial for businesses to consult legal and tax advisors to ensure compliance with Delaware state laws and regulations.

Delaware Share Appreciation Rights Plan (SHARP) is a type of equity compensation plan that allows employees of a Delaware corporation to receive appreciation rights tied to the company's stock value. This plan, with its amendment, offers employees the opportunity to profit from any increase in the stock price over a specified period. The primary objective of an SHARP is to incentivize and retain talented employees by aligning their interests with that of the company's shareholders. The plan's amendment provides for modifications to the original terms and conditions to suit evolving market conditions, changes in tax laws, or adjust to the company's performance. The Delaware SHARP typically grants participants the right to receive a cash payment equal to the difference between the fair market value of the shares at the time of exercise and a predetermined base price set at the grant date. This payout is known as the appreciation right. There are various types of Delaware Share Appreciation Rights Plan with amendments, each designed to meet specific objectives and circumstances. These different variants may include: 1. Performance-Based SHARP: In this type, the grant and exercise of appreciation rights are contingent upon meeting predetermined performance goals, such as achieving a certain revenue growth rate or increase in profitability. This aligns employee compensation with the company's overall performance. 2. Time-Based SHARP: This variant grants appreciation rights to employees based on a specific vesting schedule. As time progresses, a certain percentage of the rights become exercisable. This encourages employees to stay with the company for a predetermined period, fostering loyalty and longevity. 3. Phantom SHARP: Also known as Shadow SARS, this type does not involve the actual issuance of company shares, but participants receive cash payouts equivalent to the appreciation value upon exercise. This enables companies to bypass potential dilution of existing shareholders and offers flexibility in structuring the plan. 4. Cash-Settled SARS: Unlike stock options, this type of Delaware SHARP settles in cash rather than company shares. Participants receive a cash payment equal to the appreciation value, eliminating the need for employees to purchase the underlying stock. 5. Reload SARS: With this variant, employees who exercise their SARS receive additional grant equivalents based on the number of surrendered rights. The reloading feature ensures that participants can continue benefiting from potential future stock price increases. Overall, Delaware Share Appreciation Rights Plans with amendments empower companies to reward and motivate their employees by tying their compensation to the company's success. These plans are tailored to individual circumstances, and the specific type chosen depends on the company's objectives and desired employee incentives. It is crucial for businesses to consult legal and tax advisors to ensure compliance with Delaware state laws and regulations.