Sar Award Agreement
CONSIDERING that the Company wishes to assign certain share valuation rights («SARs» or «Awards») to employees designated in accordance with Article 6 of the Plan; and 11. No additional rights. Benefits under this plan are not guaranteed. The granting of bonuses is a one-off advantage and does not create contractual or other rights, nor rights to the future allocation of bonuses under the plan, nor does the granting of bonuses guarantee future participation in the plan. The value of Employee153s bonuses is an exceptional position outside the scope of Employee153`s employment contract, if applicable. Employee153s bonuses are not part of normal or expected remuneration for the purpose of calculating redundancy payments, dismissals, dismissals, seniority bonuses, bonuses, long-term service bonuses, pension or retirement benefits (unless otherwise provided under the terms of a qualified retirement or pension plan operated by the company or one of its subsidiaries) or other similar payments. By accepting the terms of this Agreement, the Employee agrees to the same terms with respect to all other bonuses received by employees in a previous year under the Plan. Like many other forms of share compensation, SARs are transferable and are often subject to clawback rules. The clawback rules define the conditions under which the company can withdraw some or all of the income received by employees under the plan. For example, they could allow the company to withdraw SARs if an employee is working for a competitor before a given date.
SARs are also often allocated according to an investment schedule that links them to the performance objectives set by the company. Since SARs and ghost plans are essentially Barboni or are delivered as shares that owners 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 put the funds aside? If the premium is paid in stock, is there a market for the stock? If it`s just a promise, will employees believe that utility is as phantom as action? If these are actual funds set aside for this purpose, the company will set aside after-tax dollars and not in business. Many small, growth-oriented businesses can`t afford it. The fund may also be subject to a cumulative income tax surplus. On the other hand, when employees receive shares, the shares can be paid by the capital markets when the company goes public, or by acquirers when the company is sold. 9) Effect of termination of the employment relationship or death. If the employee is placed on leave for a period of more than twelve months (except on leave authorized by the board of directors or the committee) or, for any reason, the death is no more than an employee of the company, the part of the SARs that, on the day the employee ceased to be an employee, is no longer concerned or has been on leave for more than twelve months (with the exception of leave authorized by the office or the committee) expires on that day, and any un exercised portion of the SSRs that may have been otherwise exercised on that day expires on the date prior to (i) the expiry of the SRs in accordance with the term for which the SSRs were granted; or (ii) three months from that date, except in the case of a staff member defined as «certified retiree» as set out below. If the employee is a licensed retiree, SARs expire earlier than (i) the expiration of these SRs in accordance with their original term or (ii) the expiration of five years from the date of retirement.
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