For participants in employee stock option plans:

Rights that tie your benefit to the performance of your company, but do not provide the full rights associated with shareholder status. The gain from a SAR is based only on the increase in value per share between the date of the award and the date of surrender. A Stock Appreciation Right may be issued as freestanding, Additive/Attached or as a Tandem SAR.

An Additive or Attached SAR is granted in connection with your employee Stock Options in order to provide you with a source of cash to pay the taxes on your exercise.

A Tandem SAR provides you with a choice of exercising your employee stock option or the SAR, with the exercise of one eliminating the right to exercise the other.