Montgomery Maryland Share Appreciation Rights Plan with amendment

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Montgomery
• 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 The Montgomery Maryland Share Appreciation Rights Plan (SHARP) with amendment is a compensation arrangement that offers employees of Montgomery County in Maryland the opportunity to benefit from the increase in the value of company shares over a specific period. This plan allows participating employees to receive appreciation rights, which provide them with an additional financial incentive tied to the company's stock performance. The Montgomery Maryland SHARP with amendment aims to attract and retain top talent by providing employees an opportunity to share in the company's success. It incentivizes employees to contribute their skills and efforts towards the overall growth and profitability of the organization. This compensation arrangement aligns the interests of employees with those of the shareholders, fostering a sense of ownership and commitment to the company's long-term success. Under the Montgomery Maryland SHARP with amendment, there are different variations available to suit the specific needs and objectives of the organization. Some common types of SHARP amendment plans include: 1. Vesting Schedule Amendment: This type of amendment determines the timing and conditions under which employees become eligible to exercise their appreciation rights. It may include provisions such as a requirement for a specific period of service, achievement of performance goals, or a combination of both. 2. Performance-based Amendment: This amendment ties the appreciation rights to the achievement of certain predetermined performance targets by the company. It encourages employees to focus on driving the organization's performance and rewards them accordingly. 3. Cash-settled Amendment: In this type of amendment, the appreciation rights are settled in cash rather than shares. This allows employees to receive a cash payment equal to the increase in the stock value, providing them with immediate financial benefits. 4. Change of Control Amendment: This amendment defines the treatment of the SHARP in the event of a change in control of the company, such as a merger or acquisition. It ensures that employees' rights and interests are protected during such transitions. The Montgomery Maryland SHARP with amendment is designed to be fair, transparent, and compliant with relevant laws and regulations. It typically involves thorough communication and documentation to ensure employees understand the terms and conditions of the plan, including the amendment specifics.

The Montgomery Maryland Share Appreciation Rights Plan (SHARP) with amendment is a compensation arrangement that offers employees of Montgomery County in Maryland the opportunity to benefit from the increase in the value of company shares over a specific period. This plan allows participating employees to receive appreciation rights, which provide them with an additional financial incentive tied to the company's stock performance. The Montgomery Maryland SHARP with amendment aims to attract and retain top talent by providing employees an opportunity to share in the company's success. It incentivizes employees to contribute their skills and efforts towards the overall growth and profitability of the organization. This compensation arrangement aligns the interests of employees with those of the shareholders, fostering a sense of ownership and commitment to the company's long-term success. Under the Montgomery Maryland SHARP with amendment, there are different variations available to suit the specific needs and objectives of the organization. Some common types of SHARP amendment plans include: 1. Vesting Schedule Amendment: This type of amendment determines the timing and conditions under which employees become eligible to exercise their appreciation rights. It may include provisions such as a requirement for a specific period of service, achievement of performance goals, or a combination of both. 2. Performance-based Amendment: This amendment ties the appreciation rights to the achievement of certain predetermined performance targets by the company. It encourages employees to focus on driving the organization's performance and rewards them accordingly. 3. Cash-settled Amendment: In this type of amendment, the appreciation rights are settled in cash rather than shares. This allows employees to receive a cash payment equal to the increase in the stock value, providing them with immediate financial benefits. 4. Change of Control Amendment: This amendment defines the treatment of the SHARP in the event of a change in control of the company, such as a merger or acquisition. It ensures that employees' rights and interests are protected during such transitions. The Montgomery Maryland SHARP with amendment is designed to be fair, transparent, and compliant with relevant laws and regulations. It typically involves thorough communication and documentation to ensure employees understand the terms and conditions of the plan, including the amendment specifics.