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Frequently Asked Questions
  What is the difference between a formula plan and an evergreen plan? When is shareholder approval required of formula or evergreen plans?
Identification Number 218
A formula plan provides for automatic grants pursuant to a formula. Examples include restricted stock grants based on a certain dollar amount and/or matching stock contributions based on the amount of compensation a participant elects to defer. An evergreen plan is one that contains a formula for the automatic increase in the number of shares available under the plan.

Formula and evergreen plans cannot have a term in excess of ten years unless shareholder approval is obtained every ten years. Plans that do not contain a formula and do not impose a limit on the number of shares available for grant would require shareholder approval of each grant under the plan.
 
Publication Date*: 7/31/2012 Mailto Link Identification Number: 218
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