Document:

EX-4.2

 

Exhibit 4.2

DEFERRED COMPENSATION AGREEMENT

     This Deferred Compensation Agreement (“Agreement”) is entered into as of                     , by
and between SAI DEFERRED COMPENSATION HOLDINGS, INC. (the “Company”),                     
(“Broker-Dealer”), and                      (“Representative”).

     The Company has established, in conjunction with Broker-Dealer, the Amended and Restated
Registered Representatives’ Deferred Compensation Plan (as amended from time to time, the “Plan”)
pursuant to which Broker-Dealer’s registered representatives may elect to defer receipt of some or
all of the commission and fee payments such registered representatives are entitled to receive. In
consideration of the mutual agreements herein contained, the parties hereby agree as follows:

Section 1. The Plan. The deferral of compensation elected by Representative hereunder is pursuant
to the Plan, a copy of which Representative has received and the terms of which are incorporated
herein by reference. Capitalized terms used herein which are not defined are used with the
meanings provided for in the Plan.

Section 2. Amount of Deferral.

     2.1 Representative desires to defer Earnings received from time to time from Broker-Dealer in
accordance with and subject to the Plan. The deferral contemplated by this Agreement constitutes a
separate Enrollment Period for the purposes of the Plan.

     2.2 Pursuant to the terms of the Plan, Representative may defer up to 100% of future Earnings,
by executing this Agreement and completing an Enrollment/Change Form to enroll in the Plan. The
election shall remain in effect until and unless modified as provided in the Plan.

Section 3. Deferral Account.

     3.1 The obligation to pay to Representative the amount deferred, with the interest and
adjustments provided for in the Plan, shall be carried on the books of the Company as an unsecured
debt in two accounts (the “Accounts”). The balance at any time in the Accounts is not held in
trust for Representative, and neither Representative, his or her estate or personal
representative(s) nor his or her beneficiaries shall have any right, title or interest in or to any
funds in the Accounts, which are established by the Company merely for the purpose of recording
such unsecured contractual obligation. All funds in the Accounts shall continue to be part of the
general funds of the Company.

     3.2 Each Representative must elect the Valuation Fund(s) which will be used to measure the
value of his or her Fund Account. Amounts held in a Fund Account will be treated as though
invested in such Valuation Fund(s) and adjustments to the value of a Fund Account will be made in
accordance with the Plan. Representative may change the Valuation Fund(s) against which the value
of a Fund Account will be indexed in

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accordance with the terms of the Plan. Such elections will
become effective at the time
the Committee may determine. The Company is not required to make investments in the Valuation Funds.

     3.3 Amounts held in an Interest Account will accrue interest as provided in the Plan and may,
under certain circumstances, be reduced by the appreciation in the associated Fund Account.

     3.4 Earnings deferred under the Plan will be paid out in the manner and at the times provided
by the Plan.

Section 4. General Provisions.

     4.1 Representative may obtain any necessary form(s) by request to the Plan Administrator. All
forms and agreements and any other necessary documents must be properly executed and delivered to
the Plan Administrator within the specified time limitations in order to be effective.

     4.2 Representative may designate a beneficiary or beneficiaries to receive distribution(s)
from the Accounts after the death of Representative. Any person designated as a beneficiary shall
be without rights or interests until following Representative’s death, and then only in accordance
with the Plan.

     4.3 The Company shall have the right at any time to transfer its rights and delegate its
obligations under the Plan to another entity.

     4.4 Nothing in the Plan is intended to (a) limit in any way the right of Broker-Dealer to
terminate Representative’s independent contractor relationship with Broker-Dealer; or (b) otherwise
create any employment relationship between the Representative and Broker-Dealer or the Company.

     4.5 The Company may amend, modify or terminate this Agreement to the same extent that it may
amend, modify or terminate the Plan.

     4.6 This Agreement shall be binding upon and inure to the benefit of the Company and
Broker-Dealer, their respective successors and assigns and Representative, his or her heirs,
executors, administrators and legal representatives.

     4.7 This Agreement and the Plan, and the related forms and agreements, express the entire
Agreement of the parties with respect to the Enrollment Period covered by this Agreement, and all
promises, representations, understandings, arrangements and prior agreements are merged herein and
superseded hereby.

     4.8 If any of the provisions of this Agreement should be held to be invalid, the remainder of
this Agreement shall not be affected thereby.

     4.9 This Agreement shall be governed by and construed in accordance with the laws of the state
of California.

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Section 5. Guarantee of AIG.

     5.1 The Company’s payment obligations under the Plan have been guaranteed in accordance with,
and subject to the terms of, a Guarantee Agreement, dated as of January 1, 1999 (the “Guarantee”),
of American International Group, Inc. (“AIG”).

     5.2 AIG has the right at any time to transfer its rights and delegate its obligations under
the Guarantee to another entity.

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     IN WITNESS WHEREOF, the Company, Broker-Dealer and Representative have executed this Agreement
as of the day and year first written above.

	 	 	 	 	 
	SAI DEFERRED COMPENSATION HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	“Broker-Dealer”	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Representative acknowledges having received a current prospectus for the Plan and for each of the
Valuation Funds currently available and agrees to abide by all of the terms and conditions of the
Plan.
	 
	 	 	 	 
	REPRESENTATIVE:	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Please print)	 	 
	 
	 	 	 	 
	Signature:
	 	 	 	 
	 

	 	 	 	 

4EX-4.3

 

Exhibit 4.3

GUARANTEE AGREEMENT

          GUARANTEE AGREEMENT, dated as of January 1, 1999 (the
“Guarantee”), by American International Group, Inc., a Delaware corporation (the
“Guarantor”), in favor of each registered representative (a “Party”)
participating in the Registered Representatives’ Deferred Compensation Plan (as
amended from time to time in accordance with its terms, the “Plan”) of SAI
Deferred Compensation Holdings, Inc., a Delaware corporation (the “Company”).

          1. Guarantee. For value received, the Guarantor
unconditionally and irrevocably guarantees to each Party, its permitted
successors and assigns under the Plan, the prompt payment when due of all
present and future payment obligations and liabilities of all kinds of the
Company to such Party arising under the Plan, whether incurred by the Company as
maker, endorser, drawer, acceptor, guarantor, accommodation party or otherwise,
and whether due or to become due, secured or unsecured, absolute or contingent,
joint or several (the “Obligations”).

          2. Nature of Guarantee. The Guarantor’s obligations hereunder
with respect to any Obligation shall not be affected by the existence, validity,
enforceability, perfection or extent of any collateral for such Obligation. No
Party shall be obligated to file any claim relating to the Obligations owing to
it in the event that the Company becomes subject to a bankruptcy, reorganization
or similar proceeding, and the failure of any party to so file shall not affect
the Guarantor’s obligations hereunder. In the event that any payment to any
Party in respect to any Obligations is rescinded or must otherwise be returned
for any reason whatsoever, the Guarantor shall remain liable hereunder in
respect to such Obligations as if such payment had not been made. The Guarantor
reserves the right to assert defenses which the Company may have to payment of
any Obligation other than defenses arising from the bankruptcy or insolvency of
the Company and other defenses expressly waived hereby.

          3. Consents, Waivers and Renewals. The Guarantor agrees that a
Party may at any time and from time to time,

 

 

either before or after the maturity thereof, without notice to or further
consent of the Guarantor extend the time of payment of, exchange or surrender
any collateral for, or renew any of the Obligations owing to it, and may also
make any agreement with the Company or with any other party to or person liable
on any of the Obligations, or interested therein, for the extension, renewal,
payment, compromise, discharge or release thereof, in whole or in part, or for
any modification of the terms thereof or of any agreement between such Party and
the Company or any of such other party or person, without in any way impairing
or affecting this Guarantee. The Guarantor agrees that a Party may resort to the
Guarantor for payment of any of the Obligations, whether or not the Party shall
have resorted to any collateral security, or shall have proceeded against any
other obligor principally or secondarily obligated with respect to any of the
Obligations.

          4. Expenses. The Guarantor agrees to pay on demand all
out-of-pocket expenses (including the reasonable fees and expenses of its
counsel) in any way relating to the enforcement or protection of the rights of a
Party hereunder.

          5. Subrogation. Upon payment of all the Obligations owing to
any Party, the Guarantor shall be subrogated to the rights of such Party against
the Company, and such Party agrees to take at the Guarantor’s expense such steps
as the Guarantor may reasonably request to implement such subrogation.

          6. Enforcement by Parties. The Guarantor hereby acknowledges
that the Parties are intended beneficiaries of the Guarantee who may enforce
this Guarantee directly against the Guarantor.

          7. Termination. This Guarantee may be terminated after 30 days
notice given by the Guarantor to the Plan Administrator for the Plan; provided,
however, that this Guarantee shall remain in full force and effect with respect
to Obligations of the Company outstanding or contracted or committed for
(whether or not outstanding) prior to the 30th day after notice of termination
is given to the Plan Administrator for the Plan, or until such Obligations shall
be finally and irrevocably paid in full.

 

 

          8. Governing Law. This Guarantee shall be governed by and
construed in accordance with the laws of the State of New York.

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Edward E. Matthews 	 
	 	 	Title:  	Vice Chairman 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Kathleen E. Shannon 	 
	 	 	Title:  	Secretary

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