Texas 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

A Texas Share Appreciation Rights Plan with Amendment is a compensation program that allows employees of a company based in Texas to benefit from stock price appreciation without actually owning the company's shares. This plan is typically designed to reward employees for their contributions to the company's growth and success. The Amendment in the Texas Share Appreciation Rights Plan refers to any changes or modifications made to the original plan document. These amendments could include adjustments to the terms and conditions, eligibility criteria, or the calculation methods used to determine the appreciation value. There are several types of Texas Share Appreciation Rights Plans with amendments that can be implemented by companies. Some of these variations include: 1. Restricted Share Appreciation Rights Plan: In this type of plan, employees are awarded appreciation rights linked to a specific number of restricted shares. These rights can only be exercised after meeting certain conditions or vesting periods, such as completing a predetermined length of service or achieving performance targets. 2. Performance-Based Share Appreciation Rights Plan: This plan grants appreciation rights based on the company's performance metrics, such as revenue growth, profitability, or stock price appreciation. Employees are rewarded if the company achieves or exceeds certain predefined goals or targets. 3. Cash-Settled Share Appreciation Rights Plan: Instead of receiving actual shares, employees in this plan are granted appreciation rights that are settled in cash upon exercise. The cash settlement is typically calculated based on the increase in the company's stock price over a specified period. 4. Phantom Share Appreciation Rights Plan: This plan grants employees appreciation rights without actually issuing any real shares. Instead, employees receive a cash payout based on the increase in the company's stock price equivalent to a certain number of phantom shares. 5. Equity-Based Share Appreciation Rights Plan: This plan combines elements of both stock options and share appreciation rights. Employees are granted appreciation rights linked to the company's shares, but they can choose to either exercise the rights for cash settlement or exchange them for actual shares at a predetermined price. 6. Director Share Appreciation Rights Plan: This type of plan is specifically designed for directors of the company. It allows directors to receive appreciation rights based on the company's stock price increase, providing them with an incentive to maximize shareholder value. It's important to note that the specific terms, conditions, and variations of Texas Share Appreciation Rights Plans with amendments can vary depending on the company implementing the plan and the requirements of the employees. The details of each plan, including eligibility, vesting, exercise periods, and settlement terms, are usually outlined in a comprehensive plan document provided to the employees.