Travis Texas Stock Appreciation Rights Plan of The Todd-AO Corporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Travis
• Control #: US-CC-18-403A
• Format: Word; Rich Text

Description

18-403A 18-403A . . . Stock Appreciation Rights Plan which provides for granting of (a) SARs to employees, directors and consultants and (b) limited stock appreciation rights to persons who are subject to Section 16 of Exchange Act. Limited rights have same terms and conditions as SARs except that limited rights are automatically exercised on date established, without any action on part of grantee, which is at least six months after grant of limited right. To extent limited right is exercised, related SAR is canceled and vice versa. The purpose of limited right is to provide grantees who are subject to short swing profit recovery provisions of Exchange Act with benefits associated with exercise of SARs even though exercise occurs outside of "window period" prescribed by SEC

The Travis Texas Stock Appreciation Rights Plan is a unique compensation program offered by The Todd-AO Corporation, a renowned company in the entertainment industry. This plan is designed to reward employees and executives for their contributions to the company's success and growth, specifically in relation to the appreciation of company stock. By providing employees with the opportunity to benefit from the rise in stock value, this plan aims to align their interests with those of the shareholders and encourage long-term commitment to the organization. Under the Travis Texas Stock Appreciation Rights Plan, eligible participants are granted Stock Appreciation Rights (SARS), which entitle them to receive the excess value of the stock at the time of exercise over the grant price. SARS is similar to stock options, but they do not require the participant to purchase shares at the grant price. This feature makes them an attractive form of compensation, as employees can benefit from the appreciation of company stock without any upfront expenses. The Travis Texas Stock Appreciation Rights Plan offers various types of SARS to meet the needs of different employees within The Todd-AO Corporation. These may include: 1. Full Value SARS: This type of SAR provides participants with the full value of the appreciation in the company stock from the grant date to the exercise date. Full Value SARS are typically granted to executives or key employees and can provide substantial financial rewards if the stock price rises significantly during the vesting period. 2. Phantom SARS: Phantom SARS, also known as cash SARS, are a cash-based form of stock appreciation rights. Instead of receiving actual shares of stock, participants receive a cash payment equivalent to the appreciation in the stock value. Phantom SARS are often used when actual stock ownership is not feasible, such as for non-employee directors or consultants. 3. Tandem SARS: Tandem SARS are granted in conjunction with stock options. They allow participants to choose between exercising the SARS for cash or exchanging them for stock options. This flexibility gives employees the opportunity to customize their compensation strategy based on their financial goals and market conditions. 4. Reload SARS: Reload SARS provide participants with additional SARS when they exercise their initial SARS. This feature is designed to incentivize employees to retain their stock rights and continue contributing to the company's growth. By offering reload options, The Todd-AO Corporation aims to reward long-term loyalty and encourage ongoing commitment to the company's success. Overall, the Travis Texas Stock Appreciation Rights Plan of The Todd-AO Corporation not only serves as a valuable incentive for employees but also helps align their interests with those of the company and its shareholders. These flexible and diverse types of SARS provide participants with various ways to benefit from the appreciation of company stock, fostering a sense of ownership and loyalty within the organization.