Ann: Notice of Annual General Meeting/Proxy Form, page-3

Don’t have a problem with it at all. Good incentive to increase the share price, no appreciation in share price = no rights. For those unsure of SAR’s....

Stock appreciation rights (SARs) are a form of compensation, often received as a bonus, that awards the cash value equivalent to the change in a company's stock over some vesting period.

Unlike stock options or stock bonuses, SARs are most often paid in the form of cash and do not require the employee to own any asset or contract.

SARs are beneficial to employers since they do not have to issue additional shares as compensation, which would dilute share price and earnings.