Shares Appreciation Rights Contract (Public Company) (Non-Employee Directors)

The "Shares Appreciation Rights Contract (Public Company) (Non-Employee Directors)" is a legal template that outlines the agreement between a public company and its non-employee directors regarding the provision of share appreciation rights (SARs).

SARs are a form of compensation that allow non-employee directors to share in the company's success and growth. Under this contract, the public company grants the non-employee directors the right to receive future appreciation in the value of company shares.

The template specifies the terms and conditions for the granting, vesting, and exercise of SARs. It includes provisions on the calculation of the appreciation value, the timing of SAR awards, as well as any performance or eligibility criteria that must be met for the directors to be eligible for SARs.

Additionally, the contract may contain provisions related to the termination or expiration of SARs, the company's ability to modify or amend the agreement, and the director's rights and obligations in relation to the SARs.

By utilizing this legal template, both the company and its non-employee directors can establish a clear and mutually beneficial arrangement for the granting and exercise of share appreciation rights, fostering alignment of interests between the directors and the company's shareholders. It provides a framework for fair and transparent compensation for non-employee directors, allowing them to participate in the value creation of the public company for which they serve.