The New York Directors Stock Appreciation Rights Plan offered by American Annuity Group, Inc. is a specialized compensation program designed to reward directors for their service and contributions to the company. This plan grants directors the opportunity to benefit from the appreciation in value of the company's stock over a predetermined period of time. Through the New York Directors Stock Appreciation Rights Plan, directors are given the right to receive a cash payment equal to the appreciation in the company's stock price over a certain period. This compensation structure aligns the interests of the directors with the long-term growth and success of the company, as the value of their rewards is directly linked to stock performance. The plan features various types tailored to meet the specific needs and objectives of the company and its directors. These types may include: 1. Performance-based Stock Appreciation Rights: In this type, the directors' eligibility to receive cash payments is tied to the achievement of predetermined performance targets set by the company. These targets could be based on financial metrics like revenue growth or profitability, ensuring that directors are rewarded for their contribution towards achieving strategic goals. 2. Time-based Stock Appreciation Rights: Unlike performance-based rights, time-based rights do not have performance targets. Directors become eligible for cash payments after a specific period of time, typically vesting over a certain number of years. This type of plan recognizes the long-term commitment and loyalty of directors to the organization. 3. Restricted Stock Units (RSS) Appreciation Rights: RSS are another form of stock appreciation rights where directors are granted units equivalent to a certain number of shares of the company's stock. These units have a value tied to the stock price and can appreciate over time. Directors receive cash payments corresponding to the increase in value upon vesting. 4. Cash-settled Stock Appreciation Rights: As the name suggests, directors are rewarded in cash rather than through actual stock ownership. These rights allow directors to benefit from the appreciation of the company's stock without directly owning shares. Cash-settled rights provide flexibility to directors who may prefer liquidity to stock ownership. It is important to note that the specific types and features of the New York Directors Stock Appreciation Rights Plan may vary depending on the design decisions of American Annuity Group, Inc. and any relevant regulatory requirements. These plans can serve as powerful tools in attracting, retaining, and motivating experienced directors, ultimately contributing to the overall success and growth of the company.