Montana 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

Montana Share Appreciation Rights Plan, also known as Montana SARS Plan, is a type of equity-based compensation plan designed to provide financial incentives to employees or executives of a company. This plan is usually implemented as an amendment to an existing employee stock option plan or long-term incentive plan. Under the Montana SARS Plan, employees are granted the right to receive cash or stock value appreciation of a specific number of company shares over a predetermined period. These grants are typically awarded to incentivize and retain key employees by linking their compensation directly to the company's performance. One of the variations of the Montana SARS Plan is the Performance-Based SARS. This type of plan ties the SARS' grant and payout to specific performance goals or metrics, such as the company's financial targets, revenue growth, or stock price appreciation. Performance-based SARS provide a powerful tool to align employee interests with the company's objectives while rewarding exceptional performance. Another type is the Restricted Stock Appreciation Rights (SARS) Plan. This plan grants SARS that are contingent on certain conditions or time-based vesting schedules. SARS typically have a longer vesting period, ensuring the employees' continued commitment and service to the company over the long term. Once fully vested, employees can exercise their SARS and receive the appreciation in stock value. The Montana SARS Plan with amendment may also include features such as performance periods, exercise periods, eligibility criteria, and payment terms. These features vary depending on the company's goals, industry, and structure. Additionally, the plan may specify how the SARS' value will be calculated, whether it is based on the difference between the stock price at the grant date and the exercise date or another predetermined formula. It is important to note that the Montana SARS Plan with amendment must comply with relevant securities laws, tax regulations, and accounting standards. Therefore, it is advisable for companies to consult legal, tax, and financial professionals when designing and implementing such plans to ensure compliance and optimize the benefits for both the company and its employees.