Private Company SARs

[ERISA-Bubs]

Based on my reading of the 409A Final Regulations, SARs are exempt from 409A as long as the compensation granted under the SAR equals (1) the FMV on exercise, minus (2) the FMV on grant and there is no additional deferral feature.

However, according to CCH, "A private company might be able to avoid the unfunded deferred compensation plan rules if the strike price of the SARs is no less than fair market value at time of grant, the SAR is settled only in stock, there is no ability to defer income, the SAR award does not include an agreement for the company to repurchase the stock, and the SAR provides for a fixed payment date."

There appear to be three additional requirements according to CCH, but I can't find these anywhere in the final regulations or other guidance. Does anyone know if CCH is accurate here and (if so) where these requirements come from?

EDIT: As best I can tell, CCH is citing the rules under proposed 409A regulations. The rules for exempting SARs from 409A were relaxed in the final 409A regulations along with tightening up the valuation rules and the definition of what constitutes employer stock. However, if you know of any other reason I should be looking more closely into this, please let me know