Houston Texas Directors Stock Appreciation Rights Plan of American Annuity Group, Inc. is a comprehensive compensation program offered by American Annuity Group, Inc. specifically designed for its directors based in Houston, Texas. This plan aims to reward and incentivize directors for their contributions to the growth and success of the company. The Houston Texas Directors Stock Appreciation Rights Plan grants directors the right to receive the appreciation in the value of the company's stock over a specified period. It is a performance-based plan where directors are entitled to receive stock appreciation rights as a form of compensation. These rights allow the directors to receive cash or company stock, depending on the market value of the stock at the time of exercise. This plan includes various types of stock appreciation rights that cater to the diverse needs and preferences of directors. Some different types of Houston Texas Directors Stock Appreciation Rights Plans offered by American Annuity Group, Inc. may include: 1. Restricted Stock Appreciation Rights: This type of plan grants directors the right to receive appreciation in the value of restricted stocks. The stocks are subject to certain restrictions, such as a vesting period or performance goals. Once the conditions are met, directors can exercise their rights and receive the appreciation in the value of the restricted stocks. 2. Performance-Based Stock Appreciation Rights: Under this plan, directors are rewarded based on the achievement of specific performance targets set by the company. The directors' stock appreciation rights are tied to the company's performance metrics, such as revenue growth, earnings per share, or stock price. The directors can exercise their rights and receive the appreciation in the stock value if the performance targets are met. 3. Non-Qualified Stock Appreciation Rights: This type of plan provides directors with the opportunity to receive the appreciation in the value of company stock without complying with certain tax-advantaged requirements. Non-qualified stock appreciation rights may offer more flexibility in terms of tax treatment but are typically subject to higher tax rates upon exercise. 4. Equity-Based Stock Appreciation Rights: This plan allows directors to receive appreciation in the value of company stock through equity-based awards. Equity-based stock appreciation rights are often granted in the form of stock options, stock units, or other equity-based instruments. Directors can exercise their rights and receive the appreciation in stock value when specified conditions are met. Overall, the Houston Texas Directors Stock Appreciation Rights Plan of American Annuity Group, Inc. provides an attractive compensation package that aligns the interests of directors with the company's performance. By offering different types of stock appreciation rights, the plan enables directors to participate in the growth of the company and be rewarded based on their individual and company achievements.