Puerto Rico Directors Stock Appreciation Rights Plan (SAR) is a unique compensation program offered by American Annuity Group, Inc., specifically designed for directors in Puerto Rico. This plan aims to incentivize directors by providing them with opportunities to benefit from the appreciation in American Annuity Group's stock value. The Puerto Rico Directors Stock Appreciation Rights Plan allows directors to receive appreciation on a predetermined number of stock units or grants. These stock appreciation rights are directly linked to the appreciation in the company's stock value over a specified period. Participating directors are provided with the potential to profit from the growth of the company through the distribution of these stock appreciation rights. This plan is structured to align the interests of directors with the shareholders of American Annuity Group, Inc., encouraging directors to make strategic decisions that contribute to the company's success and growth. Puerto Rico Directors Stock Appreciation Rights Plan serves as a valuable retention tool, enabling the company to attract and retain highly skilled directors who are motivated to enhance the value of the company on behalf of its shareholders. It is important to note that there may be different variations or terms of the Puerto Rico Directors Stock Appreciation Rights Plan offered by American Annuity Group, Inc., tailored to meet specific requirements or circumstances. These variations may include but are not limited to different vesting schedules, exercise periods, or performance-based criteria for the distribution of stock appreciation rights. The specifics of each type of plan may vary, ensuring flexibility and adaptability to the company's goals and regulatory considerations. In conclusion, the Puerto Rico Directors Stock Appreciation Rights Plan of American Annuity Group, Inc. is an incentive compensation program for directors in Puerto Rico that offers stock appreciation rights linked to the company's stock value. By providing a means for directors to participate in the company's growth, this plan aligns their interests with those of the shareholders and ultimately contributes to the long-term success of American Annuity Group, Inc.