This excerpt taken from the KDE DEF 14A filed Apr 18, 2008.
Stock Appreciation Rights (“SAR”). A SAR is an award that entitles the recipient to receive the appreciation in value of a set number of shares of the Company's Common Stock over a set period of time. SARs may be granted either alone or in tandem with stock options. The exercise price of a SAR must be equal to or greater than the fair market value of the underlying Common Stock on the date of grant, unless the SAR was granted through the assumption of, or in substitution for, an outstanding award previously granted by a corporation acquired by or merged with the Company. The Compensation Committee may establish the term of each SAR, but no SAR will be exercisable after 10 years from the grant date.