Seagate 2009 Annual Report Download - page 187

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long as Shares awarded under the Restricted Share Purchase agreement remain subject to the terms of the Restricted Share Purchase agreement.
8.3 Share Appreciation Rights . Two types of Share Appreciation Rights (“SARs”) shall be authorized for issuance under the
Plan: (1) stand-alone SARs and (2) stapled SARs.
(i) Stand-Alone SARs . The following terms and conditions shall govern the grant and redeemability of stand-alone
SARs: (A) The stand-alone SAR shall cover a specified number of underlying Shares and shall be redeemable upon
such terms and conditions as the Board may establish. Upon redemption of the stand-alone SAR, the holder shall be entitled to receive a
distribution from the Company in an amount equal to the excess of (i) the aggregate Fair Market Value (on the redemption date) of the Shares
underlying the redeemed right over (ii) the aggregate base price in effect for those Shares.
(B) The number of Shares underlying each stand-
alone SAR and the base price in effect for those Shares shall be
determined by the Board in its sole discretion at the time the stand-alone SAR is granted. In no event, however, may the base price per Share be
less than eighty-five percent (85%) of the Fair Market Value per underlying Share on the grant date.
(C) The distribution with respect to any redeemed stand-alone SAR may be made in Shares valued at Fair
Market Value on the redemption date, in cash, or partly in Shares and partly in cash, as the Board shall in its sole discretion deem appropriate.
(ii) Stapled SARs . The following terms and conditions shall govern the grant and redemption of stapled SARs:
(A)
Stapled SARs may only be granted concurrently with an Option to acquire the same number of Shares as the
number of such Shares underlying the stapled SARs.
(B) Stapled SARs shall be redeemable upon such terms and conditions as the Board may establish and shall
grant a holder the right to elect among (i) the exercise of the concurrently granted Option for Shares, whereupon the number of Shares subject to
the stapled SARs shall be reduced by an equivalent number, (ii) the redemption of such stapled SARs in exchange for a distribution from the
Company in an amount equal to the excess of the Fair Market Value (on the redemption date) of the number of vested Shares which the holder
redeems over the aggregate base price for such vested Shares, whereupon the number of Shares subject to the concurrently granted Option shall
be reduced by any equivalent number, or (iii) a combination of (i) and (ii).
(C) The distribution to which the holder of stapled SARs shall become entitled under this Section 8 upon the
redemption of stapled SARs as described in Section 8.3(ii)(B) above may be made in Shares valued at Fair Market Value on the redemption date,
in cash, or partly in Shares and partly in cash, as the Board shall in its sole discretion deem appropriate.