Prepare a Stock Appreciation Rights Agreement for a USA company with this ready-made template.
- The Agreement is between the company and one of its key personnel, pursuant to a Stock Appreciation Rights (SAR) Plan.
- The employee is being granted a number of SARs with respect to common shares issued to the employee as compensation for performance.
- Upon being exercised, the SARs will give the employee the right to receive a cash payment of the difference between the between the Fair Market Value (FMV) and the Base Price of a single share of common stock in the company.
- The Agreement sets out the number of SARs being granted, how they are to be exercised, the term of the exercise period, and other conditions relating to the employee's rights and obligations under the SAR Plan.
This USA Stock Appreciation Rights Agreement is available in MS Word format, and is fully editable to fit your company's needs.
STOCK APPRECIATION RIGHTS AGREEMENT THIS AGREEMENT confirms a grant of Stock Appreciation Rights (“SARs”) on [insert date of grant of rights] (the “Grant Date”) by [NAME OF COMPANY] (the “Company”) to [NAME OF EMPLOYEE] (the “Employee), who is an eligible Participant (as that word is defined in the [year] [Name of company] Stock Appreciation Rights Plan), and who has made significant contributions to the Company’s success in the past _______ [months / year(s)]. Each SAR granted to the Employee hereunder represents the right to receive, at the time of exercise, a cash amount equal to the difference (the “Appreciation”) between the Fair Market Value (“FMV”) of a single share of Common Stock and the Base Price of a single share of Common Stock (as those terms are defined in the Company’s [year] Stock Appreciation Rights Plan, as amended from time to time (the “Plan”). The SARs are issued in accordance with and are subject to the terms of the Plan, which is incorporated herein by reference, and the following additional terms and conditions: [as incentive plans generally allow for the board or a compensation committee to decide on the terms of an employee’s grant of rights from time to time, the terms upon which this specific grant is made will be set out here} 1. The number of SARs being granted to the Employee hereunder is ___________________. As at the Grant Date, the Company has determined the Base Price of a single share of Common Stock to be $###.##. As at the Grant Date, the FMV of a single share of Common Stock was determined to be $###.##. 2. The SARs may be exercised, in whole or in part, [set out exercise period, expiry date(s), etc as determined by the board / committee - if SARs are exercisable in installments, set out the dates which apply to each installment]. 3. To the extent exercisable, the SARs may be exercised from time to time by notice in writing to the Company, stating the number of SARs which are being exercised. The date a notice of exercise is received by the Company shall be the exercise date. Upon s
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