The Hennepin Minnesota Directors Stock Appreciation Rights Plan is a compensation program offered by American Annuity Group, Inc., a leading financial services company based in Hennepin County, Minnesota. This plan is designed to provide directors of the company with an opportunity to benefit from the future growth of the company's stock. Under the Hennepin Minnesota Directors Stock Appreciation Rights Plan, directors are granted stock appreciation rights (SARS), which allow them to receive cash or stock based on the appreciation in the company's stock price. The SARS are usually granted as a form of incentive or reward for the directors' contributions to the company's growth and success. Directors can exercise their SARS at a predetermined exercise price, which is typically the fair market value of the company's stock on the grant date. When the directors exercise their SARS, they receive the difference between the fair market value of the stock on the exercise date and the exercise price, either in cash or in the form of additional shares of stock. One of the key benefits of the Hennepin Minnesota Directors Stock Appreciation Rights Plan is that it aligns the interests of the directors with those of the shareholders. As the directors stand to gain from the appreciation in the company's stock price, they are incentivized to make decisions that positively impact the company's financial performance and shareholder value. It is worth noting that there might be different types or variations of the Hennepin Minnesota Directors Stock Appreciation Rights Plan within American Annuity Group, Inc., tailored to the specific needs of the directors and the company. These variations can include different exercise prices, vesting schedules, and performance conditions, among other factors. Overall, the Hennepin Minnesota Directors Stock Appreciation Rights Plan plays a crucial role in attracting and retaining top talent for American Annuity Group's board of directors by providing a unique opportunity for directors to share in the company's success and profitability.