New Mexico 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

New Mexico Share Appreciation Rights Plan is a compensation program that provides employees with the opportunity to earn additional compensation based on the increase in the company's stock price over a specific period. This plan is governed by the laws and regulations of the state of New Mexico and has certain amendments that define the rights and obligations of both the employees and the company. The Share Appreciation Rights (SARS) plan allows employees to receive cash or company shares equal to the difference between the grant price and the fair market value of the shares at the time of exercise. This means that if the stock price increases, employees can take advantage of the appreciation and profit from it. The plan aims to align the interests of employees with the performance of the company, motivating them to work harder and contribute to its success. The New Mexico Share Appreciation Rights Plan with amendment has various types, each with specific features and conditions. These types may include: 1. Performance-Based SARS: This SARS is granted based on predetermined performance goals, such as achieving certain financial milestones, revenue targets, or market share objectives. Employees only receive the benefits if the company meets or exceeds these goals. 2. Time-Vested SARS: In this type, SARS are granted to employees over a specific period, usually with a vesting schedule. The vesting schedule determines when employees can exercise their rights to receive the appreciation value. For example, an employee may be granted SARS that vest over four years, with 25% becoming exercisable each year. 3. Cash Settled SARS: This type of SARS plan allows employees to receive cash equivalent to the appreciation value at the time of exercise. Instead of receiving company shares, employees receive a monetary payout, which may be beneficial for employees who prefer liquidity to holding company stock. 4. Equity Settled SARS: Equity-settled SARS grant employees a fixed number of company shares at the time of exercise, representing the appreciation value. Employees can hold onto these shares, sell them in the open market, or exercise other rights associated with ownership. The New Mexico Share Appreciation Rights Plan with amendment ensures that the terms and conditions of the SARS plan align with local laws and regulations. It may include provisions related to taxation, vesting schedules, termination of employment, change of control events, and other important considerations to protect the interests of both the employees and the company. Overall, the New Mexico Share Appreciation Rights Plan with amendment provides companies in New Mexico with a flexible and incentivizing compensation tool to reward and retain their employees based on the company's stock price performance.