Sar Award Agreement


CONSIDERING that staff have been approved by the Compensation Policy Committee (the “Committee”) of the company`s Board of Directors153 (the Board of Directors) in order to obtain a distinction from SARs as part of the plan; Since SARs and phantom plans are essentially cash bonuses or are provided in the form of shares that holders want to trade, companies need to figure out how to pay for it. Does the company only make a promise of payment or does it really set aside the funds? If the premium is paid in stock, is there a market for the stock? If it`s just a promise, will employees believe that benefits are as phantom as action? If set aside in real funds for this purpose, the company will set aside vat dollars and not in the company. Many small, growth-oriented businesses cannot afford it. The Fund may also be subject to a cumulative capital gains tax. On the other hand, if employees receive shares, the shares can be paid by the capital markets when the company goes public or by acquirers when the business is sold. The equity valuation rights (SARs) and Phantom Stocks are very similar plans. Both are essentially cash bonus plans, although some plans repay the benefits in the form of shares. SARs generally provide the employee with a cash payment based on the increase in the value of a given number of shares over a period of time. Phantom Stock offers a cash or stock bonus based on the value of a given number of shares paid at the end of a given period. SARs may not have a specific billing date; options, employees can have flexibility if you decide to practice RAD.

Ghost shares can pay dividends; The RSRs would not. When the payment is made, it is taxed as normal income to the employee and is deductible for the employer. Some phantom plans put the bonus into achieving certain goals, such as turnover, profit or other goals. These plans often refer to their phantom actions as “performance units.” Ghost actions and SARs can be given to anyone, but if they are largely attributed to employees, they may be considered retirement plans and subject to the rules of the federal old age insurance system. A careful planning structure can avoid this problem. Like many other forms of stock compensation, ARAs are transferable and are often subject to clawback provisions. The provisions of the Clawback set out the conditions under which the company can take back some or all of the employees` income under the plan. They may, for example, allow the company to withdraw its securities if an employee is working for a competitor before a specific date. SARs are also often allocated according to a vesting schedule that links them to the performance targets set by the company. 11.

No additional rights. Benefits under this plan are not guaranteed. The granting of bonuses is a one-time benefit and does not create any contractual or other rights, nor a right to future bonus assistance under the plan, nor the granting of bonuses guarantees future participation in the plan. The value of Employee153s bonuses is an exceptional position that, if it exists, falls outside the scope of the Employee153s employment contract. Employee153s bonuses are not part of a normal or expected remuneration for the calculation of severance pay, withdrawals, redundancies, service payments, bonuses, long-term service bonuses, pension or retirement benefits (except under the terms of an age or pension plan managed by the United States and managed by the company or one of its subsidiaries) or similar payments. By agreeing to the terms of this agreement, the staff member accepts these conditions for all other bonuses received by employees in a previous year under the plan. CONSIDERING that the company wishes to grant certain stock valuation rights (“SARs” or “rewards”) to certain employees, in accordance with Article 6 of the plan; and nine.