Document:

Exhibit 4.4

 

SETTLEMENT AGREEMENT AND PLAN

 

THIS AGREEMENT entered into as of July 1,
2009, by and among Sean W. McCarthy (the “Executive”), Financial Security
Assurance Holdings, Ltd., a New York corporation (the “Company”), Assured
Guaranty Ltd., a Bermuda corporation (“AGL”), Dexia Holdings, Inc. (DHI”) and
Dexia Crédit Local, S.A. (“DCL” and, together with DHI, “Dexia”).; and;

 

WHEREAS, the Company and the Executive
entered into an employment agreement effective as of February 14, 2008 (the “FSA
Employment Agreement”), and the Parties (as defined below) have been
negotiating with respect to a claim by the Executive, disputed by the Company,
that an event of Good Reason has occurred under the FSA Employment Agreement;

 

WHEREAS, the parent of Assured Guaranty U.S.
Holdings, Inc., a Delaware corporation (“AG US”) AGL has entered into a stock
purchase agreement, dated as of November 14, 2008 (the “Purchase Agreement”),
with Dexia to purchase the Company and certain of its subsidiaries (the “Acquisition”),
and prior to the Acquisition, the Executive has been employed by the Company;

 

WHEREAS, upon the consummation of the
Acquisition (the “Closing”), and contingent upon the occurrence of the Closing,
AG US wishes to employ the Executive, and the Executive wishes to be employed
by AG US under the terms and conditions set forth in the employment agreement
(the “AG US Employment Agreement”) between the Executive and AG US and
effective as of the date of such Closing (the “Effective Date”), and the
Parties hereto wish to settle all rights and claims under the FSA Employment
Agreement and certain other arrangements as provided herein with respect to the
Executive’s employment with the 

 

1

 

Company (including the Share Purchase Program Agreement (the “SPPA”),
dated as of December 15, 2000, and amended as of February 14, 2008, among the
Executive, Dexia and the Company), effective as of the Effective Date unless
otherwise required by the provisions of Section 3(a)(ii) of this Agreement; and

 

WHEREAS, the parties hereto wish to settle
all rights and claims under the FSA Employment Agreement and certain other
arrangements as provided herein with respect to the Executive’s employment with
the Company;

 

WHEREAS, AGL is entering into this Agreement
solely with respect to and as provided in Sections 1, 3(a), 3(b), 3(e), 3(f),
3(g), 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, and Exhibit A1, Exhibit A2, and Exhibit
B;

 

WHEREAS, Dexia is entering into this
Agreement solely with respect to and as provided in Sections 1, 3(a), 3(b),
3(c), 3(d), 3(e), 3(f), 3(g), 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, and Exhibit
A1, Exhibit A2, and Exhibit B;

 

NOW, THEREFORE, in consideration of the
promises and mutual covenants contained herein and for other good and valuable
consideration, the Company, AGL, Dexia, and the Executive (the “Parties”)
hereby agree as follows:

 

1. General Effectiveness; Termination Date

 

The effectiveness of this Agreement is
contingent on the occurrence of the Effective Date, and no Party shall have any
rights or obligations under this Agreement (or the Executive General Release,
the Executive ADEA Release or the AGL/Dexia General Release (each as defined
below)) unless such Closing occurs.  In
the event that the Closing does not occur and the parties to the Acquisition
terminate the definitive agreements with respect 

 

2

 

thereto, this Agreement (and the Executive General Release, the
Executive ADEA Release and the AGL/Dexia General Release) shall be null and
void ab initio.

 

2. Payments
and Benefits

 

(a) On the Effective Date, following the
Closing, the Company will pay to the Executive a cash lump sum of $6,375,000.

 

(b) On the first business day after the
Executive ADEA Release Effective Date (as defined in Exhibit A2, and provided
that such Executive ADEA Release Effective Date has occurred), the Company will
pay to the Executive a lump sum cash payment of $1,125,000.

 

3.  Mutual Release and Waiver

 

(a)(i) As part of this Agreement, and in
consideration of the payments provided to the Executive in accordance with this
Agreement, the Executive has, simultaneous with the execution of this
Agreement, executed the General Release and Waiver, in the form set forth as Exhibit
A1 of this Agreement, which is attached to and forms a part of this Agreement
(the “Executive General Release”).  This
Agreement (including the Executive General Release and the AGL/Dexia General
Release but excluding the Executive ADEA Release and the payment in accordance
with Section 2(b)) and the commitments and obligations of all Parties
hereunder:

 

(I)  shall become final and binding as of the
Effective Date; and

 

(II)  shall not become final and binding until the
Effective Date.

 

(ii) As part of this Agreement, and in
consideration of the payment provided to the Executive in accordance with Section
2(b), the Executive has, simultaneous with the execution of this Agreement,
executed the Executive ADEA Release and Waiver, in the form 

 

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set forth as Exhibit A2 of this Agreement, which is attached to and
forms a part of this Agreement (the “Executive ADEA Release”).  The obligation to make the payment under Section
2(b):

 

(I)  shall become final and binding as of the
Executive ADEA Release Effective Date;

 

(II)  shall not become final and binding until the
Executive ADEA Release Effective Date; and

 

(III)  shall be null and void ab initio if the
Executive revokes the Executive ADEA Release in accordance with Section 2(d) of
the Executive ADEA Release.

 

(b) Except as provided below, the amounts
described in Section 2 will be in lieu of all rights, payments, and benefits
that may otherwise be due under the FSA Employment Agreement and all other
rights with respect to the Executive’s employment with (and otherwise providing
services to) the Company or any of its Affiliates.  The payments and benefits being released by
the Executive pursuant to this Agreement include, without limitation:

 

(i) All rights to any bonus amounts.

 

(ii) All rights to any Performance Shares (as
that term is used in the FSA Employment Agreement, and as that term is used in
the Performance Share Plan as described in the FSA Employment Agreement), and
the right to cash, other payment or consideration with respect to Performance
Shares.

 

(iii) All rights to any stock options,
restricted stock, and any other awards based on the shares of the Company.

 

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(iv) All rights to Severance Payments (as
defined in the FSA Employment Agreement) or other payments and benefits under
the FSA Employment Agreement or the FSA Severance Policy for Senior Management.

 

(v) All rights under the SPPA.

 

(vi) Subject to Section 3(c)(v), all rights
the Executive may have under the Dexia Leveraged Employee Share Plan from AGL,
the Company or their respective subsidiaries and affiliates (other than Dexia),
and all rights the Executive may have to shares of Dexia Restricted Stock
granted pursuant to the Financial Security Assurance Holdings Ltd. 2004 Equity
Participation Plan from AGL and its respective subsidiaries and affiliates
(other than the Company and Dexia).

 

(c) Notwithstanding the foregoing, this
Agreement will not adversely affect the Executive’s rights to the following:

 

(i) Any unpaid salary for periods prior to
the Effective Date.

 

(ii) Any right to unreimbursed medical
expenses for periods prior to the Effective Date in accordance with the
applicable terms of the medical benefit plans of the Company.

 

(iii) Any unreimbursed travel or other
business expenses incurred on behalf of the Company in accordance with its
policies for periods prior to the Effective Date.

 

(iv) Any rights the Executive may have under
the Financial Security Assurance Inc. Money Purchase Plan; the Financial
Security Assurance Inc. Cash or Deferred Plan; the Financial Security Assurance
Holdings Ltd. 2004 Supplemental Executive Retirement Plan; the Financial
Security Assurance Holdings Ltd. 1989 Supplemental Executive Retirement Plan
(the “1989 SERP”), except as otherwise provided with respect to the 1989 SERP
in 

 

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Section (d) below; the Financial Security Assurance Holdings Ltd. 2004
Deferred Compensation Plan; and the Financial Security Assurance Holdings Ltd.
1995 Deferred Compensation Plan which, in each case, shall be payable in
accordance with their terms.

 

(v) Dexia agrees to pay to the Executive his
benefits due under the Dexia Leveraged Employee Share Plan in accordance with
their respective obligations thereunder as in effect on the Effective
Date.  Dexia and the Company agree to
distribute to the Executive the shares of Dexia Restricted Stock granted to the
Executive pursuant to the Financial Security Assurance Holdings Ltd. 2004
Equity Participation Plan in accordance with its terms.  The Company shall provide a statement of the
Executive’s accrued rights under such arrangements on an expedited basis.

 

(vi) Any amounts that are due pursuant to the
right of the Executive and the Executive’s heirs, estate, executors and
administrators to indemnification from the Company or its Affiliates (or from a
third-party insurer for directors and officers liability coverage) with respect
to any costs, losses, claims, suits, proceedings, damages or liabilities to
which the Executive may become subject which arise out of, are based upon or
relate to the Executive’s employment by the Company or the Executive’s service
as an officer or member of the Board of Directors of the Company or any of its
Affiliates, to the extent such amounts would have been due from the Company in
accordance with the terms of the FSA Employment Agreement; provided that for
the avoidance of doubt, it is recited here that nothing in this Section 3 or
otherwise in this Agreement shall preserve the Executive’s right to payment of
costs and legal fees pursuant to Section 12 of the FSA Employment Agreement.

 

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(d)  At the time of Closing, the 22,306
FSA share units credited to the Executive’s account under the 1989 SERP
(reflecting a right to receive 22,306 shares of FSA common stock or a payment
equal to the value of such shares in accordance with the terms of the 1989
SERP) will be canceled and, at that time, the Executive’s account under the
1989 SERP will be credited with 130,000 AGL share units, representing a right
to receive 130,000 ordinary shares of AGL (or a payment equal to the value of
such shares, as adjusted in accordance with the terms of the 1989 SERP from
time to time).  Thereafter, the Executive’s
rights with respect to his 1989 SERP account (including, without limitation,
rights to vesting and distribution) will continue to be determined in accordance
with the terms of the 1989 SERP.

 

(e)  As part of this Agreement, and in
consideration of the benefits provided to each of the Company, AGL and Dexia
hereunder, the Company, AGL and Dexia have each, simultaneously with the
execution of this Agreement, executed the AGL/Dexia General Release in the form
set forth as Exhibit B of this Agreement, which is attached to and forms a
part of this Agreement (the “AGL/Dexia General Release”).  For the avoidance of doubt, the FSA
Employment Agreement shall expire and have no further force or effect as of the
Effective Date, except as otherwise expressly provided herein.

 

(f)  The term “Affiliates” with respect
to any person means any other person directly or indirectly controlling,
controlled by, or under common control with such person.

 

(g)  The Executive agrees that he will
cooperate reasonably with the Company, AGL, Dexia, and their Affiliates in the
defense of any investigations of the Company, AGL, and Dexia and their
Affiliates or any third-party claims that may be made against any of the
Company, AGL, and Dexia and their Affiliates, to the extent that such claims
may relate to 

 

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the period during which the Executive performed services for the
Company or Dexia; which shall include, without limitation, any alleged
bid-rigging, anti-competitive activity, or violations of securities law.  (Such investigations and third-party claims
with respect to alleged bid-rigging, anti-competitive activity, or violations
of securities law are collectively referred to as the “Actions.”)  In furtherance (but not in limitation) of the
foregoing, Executive agrees to provide the Company, AGL, Dexia and their
Affiliates and their counsel reasonable access to all relevant business records
and other documents in Executive’s possession and to give testimony and provide
affidavits or declarations as required by the Company, AGL, and Dexia and their
Affiliates with respect to the matters as to which he is cooperating pursuant
to this Section 3(g).  The Company,
AGL, and Dexia (as applicable depending on which entity requested assistance
under this Section 3(g)) will promptly reimburse the Executive for his
reasonable out-of-pocket expenses incurred in connection with the foregoing assistance,
cooperation, and access.  If any of the
Company, AGL, Dexia or their Affiliates determine to resolve, in whole or in
part, any Action by settlement, they shall use commercially reasonable efforts
to include the Executive as a party covered by and released from further claims
pursuant to such settlement; provided, however, that nothing in this sentence
shall be construed to in any way limit the discretion of any such company as to
whether to enter into a settlement or to determine the terms of such settlement;
and further provided that nothing in this sentence shall be construed to
prejudice the rights the Company, AGL, Dexia and their Affiliates to pursue
claims against the Executive to the extent they could do so in the absence of
this sentence.

 

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4. Withholding

 

Anything in this Agreement to the contrary
notwithstanding, all payments required to be made by the Company hereunder to
the Executive shall be subject to withholding of such amounts relating to taxes
as the Company may reasonably determine it is required to withhold pursuant to
any applicable law or regulation. In lieu of withholding such amounts, in whole
or in part, the Company may, in its sole discretion, accept other provision for
payment of taxes as required by law, provided it is satisfied that all
requirements of law affecting its responsibilities to withholding such taxes
have been satisfied.

 

5. Certain Agreements between
AGL, the Company and Dexia

 

(a)  Each of AGL and Dexia agrees that
at the Closing (i) 130,000 AGL Common Shares (as defined in the Purchase
Agreement) shall be deducted from the Share Consideration (as defined in the
Purchase Agreement) otherwise payable to Dexia pursuant to the terms of the
Purchase Agreement and (ii) the cash consideration payable by AGL to Dexia
pursuant to the Purchase Agreement shall be increased by $482,924.90
(representing $21.65 for each of the 22,306 share units forfeited by Executive
pursuant to the terms of this Agreement). 
Each of AGL and Dexia hereby agrees that the foregoing shall act as an
amendment to the terms of the Purchase Agreement pursuant to Section 10.1
thereof.

 

(b) Pursuant to Section 10.1 of the
Purchase Agreement, AGL waives any right to any Director Share Price
Differential (as defined in the Purchase Agreement) relating to the 22,306
share units forfeited by Executive pursuant to this Agreement.

 

(c) Pursuant to Section 4, the
Company shall withhold taxes with respect to payments and distributions of cash
in accordance with Section 2, and with respect to distributions it makes
under Section 3(c)(v), and will hold Dexia harmless for any tax
liabilities asserted 

 

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against Dexia with respect to such payments and distributions.  Nothing in paragraph 2 of this Agreement
shall supersede the provisions of Section 5.2 of the Purchase Agreement.

 

(d) Except as otherwise provided in this
Agreement, Dexia shall have no liability for payment of compensation or
benefits to the Executive.

 

6. Arbitration
of All Disputes

 

Except as otherwise provided in the Executive
General Release, the Executive ADEA Release or the AGL/Dexia General Release,
any controversy or claim arising out of or relating to this Agreement or the
breach thereof shall be settled by arbitration in the City of New York in
accordance with American Arbitration Association’s National Rules for
Resolution of Employment Disputes.

 

7. Entire
Agreement

 

Subject to the following sentence, this
Agreement as in effect as of the Effective Date contains the entire agreement
among the Parties concerning the subject matter hereof and supercedes all prior
agreements, discussions, negotiations, and undertakings, whether written or
oral, among the Parties with respect thereto, including, without limitation,
the FSA Employment Agreement, the SPPA and any settlement agreements prior to
the date of this Agreement with respect to the subject matter hereof.  However, the effectiveness of this Agreement
is contingent on the Executive having executed the AGL Employment Agreement
prior to the Effective Date, and the effectiveness of the AG US Employment
Agreement will not be affected by the foregoing provisions of this Section 7.

 

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8. Assignability; Binding Nature

 

This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors, heirs, and
assigns.  No rights or obligations of the
Executive under this Agreement may be assigned or transferred by the Executive,
other than by will or operation of law subject to the limitations of this
Agreement.  No rights or obligations of
the Company, AGL, or Dexia under this Agreement may be assigned or transferred
by the Company, AGL, or Dexia except that such rights or obligations may be
assigned or transferred pursuant to a merger or consolidation in which the
Company, AGL, or Dexia, as applicable, is not the continuing entity, or the
sale or liquidation of all or substantially all of the assets of the Company,
AGL, or Dexia, as applicable, provided that that assignee or transferee is the
successor to all or substantially all of the assets of the Company, AGL, or
Dexia, as applicable, and such assignee or transferee assumes the liabilities,
obligations, and duties of the Company, AGL, or Dexia, as applicable, as
contained in this Agreement, either contractually or as a matter of law.

 

9. Amendment or Waiver

 

No provision in this Agreement may be amended
or waived unless such amendment or waiver is (a) agreed to in writing, and
(b) the amendment or waiver is signed by the Executive and by an
authorized officer of the Company, and, to the extent AGL or Dexia may be
adversely affected by such amendment or waiver, signed by an authorized officer
of AGL and Dexia, respectively, or their respective successors.  No waiver by any Party hereto of any breach
by any other Party of any condition or provision of this Agreement to be 

 

11

 

performed by such other Party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent time.

 

10. Notices

 

Any notice required or permitted to be given
under this Agreement shall be in writing and shall be deemed to have been given
when delivered personally or sent by certified or registered mail, postage
prepaid, return receipt requested, duly addressed to the Party concerned at the
address indicated below to such changed address of which such Party may
subsequently by similar process give notice:

 

If to the Company:

 

Financial Security Assurance
Holdings, Ltd.

Attention: General Counsel

31 West 52nd Street

New York, NY 
10019

 

With a copy to:

 

Assured Guaranty Ltd.

Attention: General Counsel

30 Woodbourne Ave

Hamilton, Bermuda

 

If to the Executive:

 

Mr. Sean W. McCarthy

452 Greenwich Street

New York, NY 10013

 

If to Dexia:

 

Dexia SA/NV

Place Rogier 11

1210 Brussels, Belgium

Attention: Secretary General

Facsimile: 
+32 2 213 58 90

Email:  secretarygeneral@dexia.com

 

12

 

With a copy to:

 

Gibson, Dunn &
Crutcher LLP

200 Park Avenue

New York, New York 10166

Attention:  Michael Rosenthal

Facsimile: 
(214) 571-2951

 

11. Survivorship

 

The respective rights and obligations of the
Parties shall survive any termination of this Agreement to the extent necessary
to the intended preservation of such rights and obligations.

 

12. References

 

In the event of the Executive’s death or a
judicial determination of his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his estate or other
legal representative.  All statements of
or references to dollar amounts in this Agreement shall mean lawful money of
the United States of America.

 

13. Compliance
with Section 409A

 

It is the intention of the Parties that the
payments and benefits to which the Executive could become entitled under this
Agreement not be subject to accelerated recognition of income or imposition of
additional tax under Code section 409A, and that the payments under this
Agreement will satisfy the requirements of Treas. Reg. §1.409A-3(g) (relating
to disputed payment with respect to a claim that Good Reason has occurred under
the FSA Employment Agreement), and this Agreement shall be construed in a
manner that is consistent with this intent. 
If the Executive’s taxable year is other than the calendar year, then,
to the extent required by Section 409A, the term “calendar year” (when
used in this 

 

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Agreement) shall instead mean the Executive’s taxable year.  Any reimbursement or in-kind benefits
provided for under this Agreement in any calendar year shall not affect the
reimbursements or benefits to be provided in any other calendar year, any such
reimbursements shall be made no later than the end of the calendar year
following the year in which the underlying expense was incurred and the right
to such reimbursements and benefits shall not be liquidated or exchanged for
any other benefit or amount.

 

14. Governing-Law

 

This Agreement shall be governed by and
construed and interpreted in accordance with the laws of New York, without
reference to the principles of conflict of laws of any jurisdiction.

 

15. Headings

 

The headings of paragraphs contained in this
Agreement are for convenience only and shall not be deemed to control or affect
the meaning or construction of any provision of this Agreement.

 

16. Counterparts

 

This Agreement may be executed in one or more
counterparts.

 

14

 

IN WITNESS WHEREOF, the
Executive has signed this Agreement on the date set forth below and, on behalf
of the Company, AGL and Dexia, the undersigned officers of the Company, AGL and
Dexia, respectively, have executed this Agreement pursuant to the authority
delegated to them by such companies.

 

Financial Security Assurance Holdings, Ltd.

 

	
  Date: July 1, 2009

  	
   

  	
  By:

  	
   

  

 

 

	
  Date: July 1, 2009

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Sean W. McCarthy

  

 

Assured Guaranty Ltd. (solely with respect to
Sections 1, 3(a), 3(b), 3(e), 3(f), 3(g), 5, 6, 7, 8, 9, 10, 11, 13, 14, 15,
16, and Exhibit A1, Exhibit A2, and Exhibit B)

 

	
  Date: July 1, 2009

  	
   

  	
  By:

  	
   

  

 

 

Dexia
Holdings, Inc.. (solely with respect to Sections 1, 3(a), 3(b), 3(c),
3(d), 3(e), 3(f), 3(g), 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, and Exhibit A1, Exhibit A2,
and Exhibit B)

 

	
  Date: July 1, 2009

  	
   

  	
  By:

  	
   

  

 

Dexia
Crédit Local, S.A.. (solely with respect to Sections 1, 3(a), 3(b), 3(c), 3(d),
3(e), 3(f), 3(g), 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, and Exhibit A1, Exhibit A2,
and Exhibit B)

 

	
  Date: July 1, 2009

  	
   

  	
  By:

  	
   

  

 

15Exhibit 4.6

 

AMENDMENT
TO THE FINANCIAL SECURITY ASSURANCE HOLDINGS LTD. 1989

SUPPLEMENTAL
EMPLOYEE RETIREMENT PLAN

 

(AS
AMENDED AND RESTATED EFFECTIVE DECEMBER 17, 2004)

 

WHEREAS, Financial Security Assurance Holdings Ltd. (the “Company”)
maintains the Financial Security Assurance Holdings Ltd. 1989 Supplemental
Employee Retirement Plan, as amended and restated effective December 17,
2004 (the “Plan”);

 

WHEREAS, Assured Guaranty Ltd. (“AGL”) entered into a stock purchase
agreement dated November 14, 2008 to purchase the stock of Financial
Security Assurance Holdings Ltd. (the “Company”) from Dexia Credit Local S.A.
and Dexia Holdings, Inc. (“Dexia”) (such purchase referred to below as the
“Transaction”);

 

WHEREAS, effective upon the closing of the Transaction, the Company
desires to amend the Plan to appoint the Board of Directors of the Company to
administer the Plan and to add AGL common shares as an investment benchmark
under the Plan for Sean McCarthy’s account; and

 

WHEREAS, no Company stock or AGL common shares will be held in such
employer stock fund.

 

NOW, THEREFORE, the Plan is hereby amended effective as of the closing
of the Transaction as follows:

 

1.  By substituting the following for Section 2.7
of the Plan:

 

“‘Committee’ shall mean the Board.”

 

2.  By adding the following at the end of
subsection 4.3(a) of the Plan:

 

“The Employer Stock Fund (as defined in Exhibit A) is available as
an investment benchmark subject to the rules and regulations set forth in Exhibit A.”

 

3.  By adding the following as a new Exhibit A
to the Plan:

 

“Exhibit A

 

FINANCIAL SECURITY
ASSURANCE HOLDINGS LTD.

1989 SUPPLEMENTAL
EMPLOYEE RETIREMENT PLAN

 

Employer Stock Fund Rules and
Regulations

 

Effective upon the closing of the Transaction (as defined below), an “Employer
Stock Fund” shall be established as an investment benchmark for the Account of
Sean McCarthy (“McCarthy”).  Such Account
will be credited with 130,000 AGL Units, with each such AGL Unit representing
the right to receive one share of common stock of Assured Guaranty Ltd. (“Shares”)
upon a distribution from the Plan pursuant to Section 4.4 of the
Plan.  Upon the occurrence of such
crediting of the 130,000 AGL Units, the 22,306 Company units credited to his
account (representing a deemed investment in a corresponding number of shares
of Company common stock) will be canceled. 
Except as otherwise provided by the Committee, no additional AGL Units
may be credited to McCarthy’s account. 
The term “Transaction” means the purchase of the stock of Financial
Security Assurance Holdings Ltd. (the “Company”) from Dexia Credit Local S.A.
and Dexia Holdings, Inc. pursuant to the stock purchase agreement 

 

 

dated November 14, 2008.

 

A-1.  Eligibility.  McCarthy is the only Participant eligible to
invest all or a portion of his Account in the Employer Stock Fund.

 

A-2.  Allocations to and from
Employer Stock Fund.  McCarthy’s
investment in the 130,000 AGL Units shall be irrevocable, and such portion of
McCarthy’s Account shall remain credited with such 130,000 AGL Units until such
time as he is entitled to a distribution pursuant to Section 4.4 of the
Plan with the number of Shares to be distributed to McCarthy equal to the
number of AGL Units held in McCarthy’s Account.

 

A-3.  Dividends.  To the extent that any record date for
dividends on Shares occurs during the period in which all or a portion of a
McCarthy’s Account is allocated to the Employer Stock Fund, McCarthy’s Account
will be credited with an amount equal to the dividends that would be payable
with respect to such AGL Units, determined as though each AGL Unit credited to
the Participant’s Account was a Share (the “Deemed Dividends”).  The Deemed Dividends shall be credited to an
investment benchmark that is a money market fund or other similar investment
benchmark selected by the Committee.”

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