Document:

EX-10.4

 Exhibit 10.4 

CRAY INC. 
 2013 EQUITY
INCENTIVE PLAN 
 NOTICE OF STOCK APPRECIATION RIGHT AWARD GRANT 

Unless otherwise defined herein, the terms defined in the Cray Inc. 2013 Equity Incentive Plan (the “Plan”) will have the same
meanings in the Notice of Stock Appreciation Right Award and any electronic representation of the Notice of Stock Appreciation Right Award established and maintained by Cray Inc. (“Cray”)or a third party designated by Cray
(the “Notice”). 
  

			
	Name:	  	  

		
	Address:	  	  

 You (“Participant”) have been granted an award of Stock Appreciation Rights
(“SARs”) of Cray under the Plan subject to the terms and conditions of the Plan, the Notice and the Stock Appreciation Right Award Agreement (the “SAR Agreement”), including any special terms imposed
by the Committee for non U.S. jurisdictions. 
  

			
	Grant Number:
	
	Date of Grant:
	
	Vesting Commencement Date:
	
	Exercise Price per Share:
	
	Total Number of Shares:
	
	Expiration Date:
		
	Vesting Schedule:	  	Subject to the limitations set forth in this Notice, the Plan and the SAR Agreement, the SAR will vest and may be exercised, in whole or in part, in accordance with the following schedule:
		
		  	[Insert applicable vesting schedule]
		
		  	[Include for performance awards: The number of SARs that Participant will have vested in pursuant to the performance targets set forth above will be determined by Cray and certified by the Compensation Committee of the
Board.]
		
		  	[In the case of Disability or death, the entire SAR shall immediately vest.]
		
	Acceptance:	  	 Participant must note Participant’s acceptance of the SAR at the Fidelity Net Benefits web site: 401k.fidelity.com. By Participant’s acceptance of
the SAR at the Fidelity Net Benefits web site, Participant acknowledges and agrees that:

 Participant understands that Participant’s employment or consulting relationship or service with Cray or a Parent or
Subsidiary is for an unspecified duration, can be terminated at any time (i.e., is at-will), except where otherwise prohibited by applicable law and that nothing in the Notice, the SAR Agreement or the Plan changes the nature of that relationship.
Participant acknowledges and agrees that the Vesting Schedule may change prospectively in the event that Participant’s service status changes between full and part time status in accordance with Cray policies relating to work schedules and
vesting of awards. Participant acknowledges that the vesting of the SARs pursuant to the Notice is earned only by continuing service as an Employee, Director or Consultant of Cray or a Parent or Subsidiary. Participant also understands that the
Notice is subject to the terms and conditions of both the SAR Agreement and the Plan, both of which are incorporated herein by reference. Participant has read both the SAR Agreement and the Plan. By accepting the SARs, Participant consents to the
electronic delivery as set forth in the SAR Agreement. 

  
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	How to Exercise and Sell:	  	In connection with the requirements set forth in Section 4(b) of the SAR Agreement, Participant must exercise Participant’s SAR through the Fidelity web site: 401k.fidelity.com
		
		  	Participant may sell Participant’s underlying shares through the Fidelity web site or have Participant’s shares transferred to Participant’s stockbroker and sell through Participant’s stockbroker. The fees for
selling vary among stockbrokers but may be less expensive than the fees charged by Fidelity.

  
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 CRAY INC. 

2013 EQUITY INCENTIVE PLAN 

STOCK APPRECIATION RIGHT AWARD AGREEMENT 

Unless otherwise defined in this Stock Appreciation Right Award Agreement (this “Agreement”), any capitalized terms used herein will
have the meaning ascribed to them in the Cray Inc. (“Cray”) 2013 Equity Incentive Plan (the “Plan”). 

Participant has been granted Stock Appreciation Rights (“SARs”), subject to the terms and conditions of the Plan, the Notice of Stock
Appreciation Right Award (the “Notice”) and this Agreement, including any special terms imposed by the Committee for non U.S. jurisdictions. 

1. Vesting Rights. Subject to the applicable provisions of the Plan and this Agreement, this SAR may be exercised, in whole or
in part, in accordance with the schedule set forth in the Notice. 
 2. Grant of SAR. The Participant named in the Notice has
been granted a SAR for the number of Shares set forth in the Notice at the exercise price per Share in U.S. dollars set forth in the Notice (the “Exercise Price”). Upon exercise and subject to the terms and conditions of the
Plan and this Agreement, the Company will issue Shares or, in Cray’s sole discretion, cash, having a value equal to (a) the difference between the Fair Market Value on the date of exercise over the Exercise Price multiplied by (b) the
number of Shares with respect to which the SAR is being exercised (subject to any maximum number of Shares that may be issuable as specified in the Notice). In the event of a conflict between the terms and conditions of the Plan and the terms and
conditions of this Agreement, the terms and conditions of the Plan will prevail. 
 3. Termination Period. 

(a) General Rule. Except as provided below, and subject to the Plan, this SAR may be exercised for three months after
Participant’s Termination. In no event will this SAR be exercised later than the Expiration Date set forth in the Notice. 
 (b)
Death; Disability. Unless provided otherwise in the Notice, upon Participant’s Termination by reason of his or her death or “permanent and total disability” as described in the Plan, or if a Participant dies within three months
of the Termination Date, the SAR may be exercised for twelve months after the Termination Date, provided that in no event will the SAR be exercised later than the Expiration Date set forth in the Notice. Unless provided otherwise in the Notice, upon
Participant’s Termination by reason of his or her Disability (other than a “permanent and total disability”), the SAR may be exercised for twelve months after the Termination Date, provided that in no event will the SAR be exercised
later than the Expiration Date set forth in the Notice. 
 (c) Cause. Upon Participant’s Termination for Cause (as defined in
the Plan), the SAR will expire on such date of Participant’s Termination Date. 
 (d) Termination. For purposes of these
SARs, Participant’s service will be considered terminated as of the date Participant is no longer providing services to Cray, its Parent or one of its Subsidiaries (regardless of the reason for such termination and whether or not later found to
be invalid or in breach of employment laws in the jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any) (the “Termination Date”). The Committee shall have the exclusive
discretion to determine when Participant is no longer actively providing services for purposes of the SARs (including whether Participant may still be considered to be providing services while on an approved leave of absence). Unless otherwise
provided in this Agreement or determined by Cray, Participant’s right to vest in the SARs under the Plan, if any, will terminate as of the Termination Date and will not be extended by any notice period (e.g.,

  
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Participant’s period of services would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the
jurisdiction where Participant is employed or the terms of Participant’s employment agreement, if any). Following the Termination Date, Participant may exercise the SARs only as set forth in the Notice and this Section, provided that the period
(if any) during which Participant may exercise the SARs after the Termination Date, if any, will commence on the date Participant ceases to provide services and will not be extended by any notice period mandated under employment laws in the
jurisdiction where Participant is employed or terms of Participant’s employment agreement, if any. If Participant does not exercise the SARs within the termination periods set forth in this Section, the SARs shall terminate in its entirety. In
no event, may the SARs be exercised after the Expiration Date of the SARs as set forth in the Notice. 
 4. Exercise of
SAR. 
 (a) Right to Exercise. This SAR is exercisable during its term in accordance with the Vesting Schedule set
forth in the Notice and the applicable provisions of the Plan and this Agreement. In the event of Participant’s death, Disability, Termination for Cause or other Termination, the exercisability of the SAR is governed by the applicable
provisions of the Plan, the Notice and this Agreement. 
 (b) Method of Exercise. This SAR is exercisable by delivery of an exercise
notice (the “Exercise Notice”), which will state the election to exercise the SAR, the number of Shares in respect of which the SAR is being exercised (the “Exercised SARs”), and such other
representations and agreements as may be required by Cray pursuant to the provisions of the Plan. The Exercise Notice will be delivered in person, by mail, via electronic mail or facsimile or by other authorized method to Cray or other person
designated by Cray. The Exercise Notice will be accompanied by payment of the aggregate Exercise Price as to all the Exercised Shares together with any Tax-Related Items (as defined in Section 7(a) below). The SAR will be deemed to be exercised
upon receipt by Cray of such fully executed Exercise Notice accompanied by such aggregate Exercise Price and payment of any Tax-Related Items. 

(c) No Shares or cash, where settlement is in cash, will be issued pursuant to the exercise of the SAR unless such issuance and exercise
complies with all relevant provisions of law and the requirements of any stock exchange or quotation service upon which the Shares are then listed. Assuming such compliance, for income tax purposes the Exercised SARs will be considered transferred
to Participant on the date the SAR is exercised with respect to such Exercised SARs. 
 5. Non-Transferability of SAR. This
SAR may not be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of other than by will or by the laws of descent or distribution or court order and may be exercised during the lifetime of Participant only by Participant or
unless otherwise permitted by the Committee on a case-by-case basis. The terms of the Plan and this Agreement will be binding upon the executors, administrators, heirs, successors and assigns of Participant. 

6. Term of SAR. This SAR will in any event expire on the expiration date set forth in the Notice, which date is 10 years
after the Date of Grant. 
 7. Tax Consequences. 

(a) Exercising the SAR. Participant acknowledges that, regardless of any action taken by Cray or a Parent or Subsidiary employing or
retaining Participant (the “Employer”), the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax related items related to Participant’s participation
in the Plan and legally applicable to Participant (“Tax-Related Items”) is and remains Participant’s responsibility and may exceed the amount actually withheld by Cray or the Employer. Participant further acknowledges
that Cray and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the SAR, including, but not limited to, the grant, vesting or exercise of the SAR, the
subsequent sale of Shares acquired pursuant to such 

  
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exercise and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the SAR to reduce or eliminate
Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if Participant is subject to Tax-Related Items in more than one jurisdiction between the Date of Grant and the date of any relevant taxable or tax
withholding event, as applicable, Participant acknowledges that Cray and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. 

Prior to the relevant taxable or tax withholding event, as applicable, Participant agrees to make adequate arrangements satisfactory to Cray
and/or the Employer to satisfy all Tax-Related Items. In this regard, Participant authorizes Cray and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a
combination of the following: 
  

	 	(i)	withholding from Participant’s wages or other cash compensation paid to Participant by Cray and/or the Employer; or 

  

	 	(ii)	where settlement of the SAR is in cash, withholding from the cash settlement amount; 

  

	 	(iii)	withholding from proceeds of the sale of Shares acquired at exercise of the SAR either through a voluntary sale or through a mandatory sale arranged by Cray (on Participant’s behalf pursuant to this authorization)
without further consent; or 

  

	 	(iv)	withholding in Shares to be issued upon exercise of the SAR, provided Cray only withholds from the amount of Shares necessary to satisfy the minimum statutory withholding amount; or 

 

	 	(v)	any other arrangement approved by the Committee. 

 Depending on the withholding method, Cray
may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates, in which case Participant will receive a refund of any
over-withheld amount in cash and will have no entitlement to the Common Stock equivalent. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Participant is deemed
to have been issued the full number of Shares issued upon exercise of the SARs; notwithstanding that a number of the Shares are held back solely for the purpose of paying Tax-Related Items. The Fair Market
Value of these Shares, determined as of the effective date of the SAR exercise, will be applied as a credit against Tax-Related Items withholding. 

Finally, Participant agrees to pay to Cray or the Employer any amount of Tax-Related Items that Cray or the Employer may be required to
withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described. Cray may refuse to issue or deliver the Shares, cash, if settlement of the SAR is in cash, or the
proceeds of the sale of Shares, if Participant fails to comply with his or her obligations in connection with Tax-Related Items. 
 8.
Nature of Grant. By accepting the SAR, Participant acknowledges, understands and agrees that: 
 (a) the Plan is
established voluntarily by Cray, it is discretionary in nature, and may be amended, suspended or terminated by Cray at any time, to the extent permitted by the Plan; 

  
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 (b) the grant of the SAR is voluntary and occasional and does not create any contractual or other
right to receive future grants of equity, or benefits in lieu of equity, even if equity has been granted in the past; 
 (c) all decisions
with respect to future SAR or other grants, if any, will be at the sole discretion of Cray; 
 (d) the SAR grant and Participant’s
participation in the Plan will not create a right to employment or be interpreted as forming an employment or service contract with Cray, the Employer or any Parent or Subsidiary; 

(e) Participant is voluntarily participating in the Plan; 

(f) the SAR and any Shares or cash, where settlement of the SAR is in cash, acquired under the Plan are not intended to replace any pension
rights or compensation; 
 (g) the SAR and any Shares or cash, where settlement of the SAR is in cash, acquired under the Plan and the
income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or
welfare benefits or similar payments; 
 (h) the future value of the Shares underlying the SAR is unknown, indeterminable, and cannot be
predicted with certainty; 
 (i) if the underlying Shares do not increase in value, the SAR will have no value; 

(j) if Participant exercises the SAR and acquires Shares, the value of such Shares may increase or decrease in value, even below the Exercise
Price; 
 (k) no claim or entitlement to compensation or damages will arise from forfeiture of the SAR resulting from Participant’s
Termination, and in consideration of the grant of the SAR to which Participant is otherwise not entitled, Participant irrevocably agrees never to institute any claim against Cray, any Parent or Subsidiary or the Employer, waives his or her ability,
if any, to bring any such claim, and releases Cray, any Parent or Subsidiary and the Employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan,
Participant will be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim; 

(l) unless otherwise provided in the Plan or by Cray in its discretion, the SAR and the benefits evidenced by this Agreement do not create any
entitlement to have the SAR or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and 

(m) the following provisions apply only if Participant is providing services outside the United States: 

 

	 	(i)	the SAR and the Shares subject to the SAR or cash, where settlement of the SAR is in cash, are not part of normal or expected compensation or salary for any purpose; 

 

	 	(ii)	Participant acknowledges and agrees that neither Cray, the Employer nor any Parent or Subsidiary will be liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States
Dollar that may affect the value of the SAR or of any amounts due to Participant pursuant to the exercise of the SAR or the subsequent sale of any Shares acquired upon exercise. 

  
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 9. No Advice Regarding Grant. Cray is not providing any tax, legal or financial
advice, nor is Cray making any recommendations regarding Participant’s participation in the Plan, or Participant’s acquisition or sale of the underlying Shares or the payment of cash, where settlement of the SAR is in cash. Participant is
hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan. 

10. Data Privacy. Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or
other form, of Participant’s personal data as described in this Agreement and any other SAR grant materials by and among, as applicable, the Employer, Cray and any Parent or Subsidiary of for the exclusive purpose of implementing, administering
and managing Participant’s participation in the Plan. 
 Participant understands that Cray and the Employer may hold
certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any
shares of stock or directorships held in Cray, details of all SARs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in Participant’s favor (“Data”), for the exclusive purpose of
implementing, administering and managing the Plan. 
 Participant understands that Data will be transferred to Fidelity Stock
Plan Services, LLC or its affiliates or such other stock plan service provider as may be selected by Cray in the future, which is assisting Cray with the implementation, administration and management of the Plan. Participant understands that the
recipients of Data may be located in the United States or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections than Participant’s country. Participant understands that
if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of Data by contacting his or her local human resources representative. Participant authorizes Cray, Fidelity Stock
Plan Services, LLC and its affiliates, and any other possible recipients which may assist Cray (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or
other form, for the sole purposes of implementing, administering and managing Participant’s participation in the Plan. Participant understands that Data will be held only as long as is necessary to implement, administer and manage
Participant’s participation in the Plan. Participant understands that if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any
necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, Participant understands that he or she is providing the consents
herein on a purely voluntary basis. If Participant does not consent, or if Participant later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely affected; the only adverse
consequence of refusing or withdrawing Participant’s consent is that Cray would not be able to grant Participant stock appreciation rights or other equity awards or administer or maintain such awards. Therefore, Participant understands that
refusing or withdrawing his or her consent may affect Participant’s ability to participate in the Plan. For more information on the consequences of Participant’s refusal to consent or withdrawal of consent, Participant understands that he
or she may contact his or her local human resources representative. 
 11. Language. If Participant has received this
Agreement, or any other document related to the SAR and/or the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control. Notwithstanding
any provisions in this Agreement, the SAR will be subject to any special terms and conditions imposed by the Committee for non U.S. jurisdictions. 

  
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 12. Imposition of Other Requirements. Cray reserves the right to impose other
requirements on Participant’s participation in the Plan, on the SAR and on any Shares purchased upon exercise of the SAR, to the extent Cray determines it is necessary or advisable for legal or administrative reasons, and to require Participant
to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 
 13. Acknowledgement.
Cray and Participant agree that the SAR is granted under and governed by the Notice, this Agreement and by the provisions of the Plan (incorporated herein by reference). Participant: (i) acknowledges receipt of a copy of the Plan and the Plan
prospectus, (ii) represents that Participant has carefully read and is familiar with their provisions, and (iii) hereby accepts the SAR subject to all of the terms and conditions set forth herein and those set forth in the Plan and the
Notice. 
 14. Entire Agreement; Enforcement of Rights. This Agreement, the Plan and the Notice constitute the entire
agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the settlement of SARS hereunder are superseded. No
modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the parties to this Agreement. The failure by either party to enforce any rights under this
Agreement will not be construed as a waiver of any rights of such party. 
 15. Compliance with Laws and Regulations. The
issuance of Shares and any restriction on the sale of Shares and the payment of cash, where settlement is in cash, will be subject to and conditioned upon compliance by Cray and Participant with all applicable state, federal and local laws and
regulations and with all applicable requirements of any stock exchange or automated quotation system on which Cray’s Shares may be listed or quoted at the time of such issuance or transfer. 

16. Severability. If one or more provisions of this Agreement are held to be unenforceable, the parties agree to renegotiate
such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision will be excluded from this Agreement, (ii) the balance of this Agreement
will be interpreted as if such provision were so excluded and (iii) the balance of this Agreement will be enforceable in accordance with its terms. 

17. Governing Law and Venue. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the
parties hereto will be governed, construed and interpreted in accordance with the laws of the State of Washington, without giving effect to principles of conflicts of law. 

Any and all disputes relating to, concerning or arising from this Agreement, or relating to, concerning or arising from the relationship
between the parties evidenced by the Plan or this Agreement, will be brought and heard exclusively in the United States District Court for the Western District of Washington or the Washington Superior Court, King County. Each of the parties hereby
represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute,
and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in
such courts is improper or that such proceedings have been brought in an inconvenient forum. 

  
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 18. No Rights as Employee, Director or Consultant. Nothing in this Agreement will
affect in any manner whatsoever the right or power of Cray, or a Parent or Subsidiary, to terminate Participant’s service, for any reason, with or without Cause. 

19. Consent to Electronic Delivery of all Plan Documents and Disclosures. By Participant’s signature and the signature of
Cray’s representative on the Notice, Participant and Cray agree that the SAR is granted under and governed by the terms and conditions of the Plan, the Notice and this Agreement. Participant has reviewed the Plan, the Notice and this Agreement
in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the Notice, and fully understands all provisions of the Plan, the Notice and this Agreement. Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee upon any questions relating to the Plan, the Notice and this Agreement. Participant further agrees to notify Cray upon any change in the residence address indicated on the Notice. By acceptance
of the SAR, Participant agrees to participate in the Plan through an on-line or electronic system established and maintained by Cray or a third party designated by Cray and consents to the electronic delivery of the Notice, this Agreement, the Plan,
account statements, Plan prospectuses required by the U.S. Securities and Exchange Commission, U.S. financial reports of Cray, and all other documents that Cray is required to deliver to its security holders (including, without limitation, annual
reports and proxy statements) or other communications or information related to the SAR and current or future participation in the Plan. Electronic delivery may include the delivery of a link to Cray intranet or the internet site of a third party
involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at Cray’s discretion. Participant acknowledges that Participant may receive from Cray a paper copy of any documents delivered
electronically at no cost if Participant contacts Cray by telephone, through a postal service at 901 Fifth Avenue, Suite 1000, Seattle, Washington, 98164 or electronic mail or other electronic medium. Participant further acknowledges that
Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide on request to Cray or any designated third party a paper copy of
any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant’s consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if
Participant has provided an electronic mail address), at any time by notifying Cray of such revised or revoked consent by telephone, postal service at 901 Fifth Avenue, Suite 1000, Seattle, Washington, 98164 or electronic mail or other electronic
medium. Finally, Participant understands that Participant is not required to consent to electronic delivery. 

  
 9ex10-1.htm

 

Exhibit 10.1

 

AMENDED AND RESTATED AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

2014 INDEPENDENT INSURANCE AGENT RESTRICTED STOCK

 AND RESTRICTED STOCK UNIT PLAN

WHEREAS, the Board of Directors of American Equity Investment Life Holding Company adopted the American Equity Investment Life Holding Company 2014 Independent Insurance Agent Restricted Stock Plan effective January 1, 2014 (the “2014 Plan”) as it deemed it in the best interest of the Company that independent licensed insurance agents who are significant producers for the Company’s wholly owned operating subsidiary, American Equity Investment Life Insurance Company, be given an opportunity to acquire an interest in the operation and growth of the Company as a means of assuring their maximum effort and continued association with the Company; and

WHEREAS, the Board desires to amend and restate the 2014 Plan to include Restricted Stock Units as it believes the Company can best obtain these and other benefits by providing awards of Restricted Stock and Restricted Stock Units to qualifying Agents designated from time to time pursuant to this Plan;

NOW, THEREFORE, the Board does hereby adopt this Amended and Restated American Equity Investment Life Holding Company 2014 Independent Insurance Agent Restricted Stock and Restricted Stock Unit Plan, effective January 1, 2014, with such terms and conditions set forth below.

ARTICLE I

DEFINITIONS

For purposes of the Plan, the following definitions apply:

“Affiliate” means (i) any entity, that directly or through one or more intermediaries, controls or is controlled by the Company, or (ii) any entity in which the Company has a significant equity interest, in each case as determined by the Committee.

“Agent” means a licensed insurance agent who (i) is validly appointed by American Equity as an independent sales agent for American Equity’s products in applicable jurisdictions; (ii) has a valid and existing Agent’s Contract with American Equity at the time of any Award under this Plan; and (iii) is not terminated prior to the Vesting of any Award under this Plan.

“Agreement” means a written agreement awarding Restricted Stock or Restricted Stock Units pursuant to this Plan that is executed by the Company and the Participant as an indication of the parties’ mutual assent to the Plan and the Terms and Conditions.

“American Equity” means American Equity Investment Life Insurance Company, a life insurance company domiciled in the State of Iowa.

“Award” means Shares of Restricted Stock or Restricted Stock Units earned by a Participant subject to the terms and conditions of the Plan, the Terms and Conditions, and the Participant’s respective Agreement.

  

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“Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3 under the Exchange Act.

“Board” means the Board of Directors of the Company.

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Executive Committee of the Board.

“Common Stock” means the common stock, par value $1.00 per share, of the Company.

“Company” means American Equity Investment Life Holding Company, an Iowa corporation.

“Date of Grant” means the date on which an Award is granted under an Agreement and pursuant to the Plan provisions.

“Director” means a member of the Board of Directors of the Company.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Fair Market Value” means (i) the closing sale price reported for such Share on a national securities exchange or national market system on which such stock is principally traded as of such date, or (ii) if the Shares are not then listed on a national securities exchange or national market system, or the value of such Shares is not otherwise determinable, such value as determined by the Committee in good faith in its sole discretion.

“Participant” means an Agent to whom Restricted Stock or Restricted Stock Units has been awarded pursuant to the Plan provisions.

“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any Affiliate thereof, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Affiliate, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of Shares of the Company.

“Plan” means the Amended and Restated American Equity Investment Life Holding Company 2014 Independent Insurance Agent Restricted Stock and Restricted Stock Unit Plan, as embodied herein and as amended from time to time.

“Restricted Stock” means shares of Common Stock that have been awarded to Participants, but have not Vested pursuant to the Plan and the Terms and Conditions.

“Restricted Stock Units” means notional, non-voting units of measurement representing the same Fair Market Value of a similar number of Shares that represent a right to receive Shares or are payable in Shares as set forth under the Plan that have been awarded to Participants, but have not Vested pursuant to the Plan and the Terms and Conditions.

“Share” means a share of Common Stock.

  

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“Terms and Conditions” means the Terms and Conditions, as such shall apply to any particular year, attached to the Plan and fully incorporated herein.

“Vest, Vesting, Vested” means the date on which a Participant becomes entitled to all benefits of ownership of awarded Shares.

ARTICLE II

PURPOSE

The Plan is intended to assist the Company and American Equity in attracting and retaining Agents of outstanding ability and to align the interests of such Agents with those of the shareholders of the Company.

ARTICLE III

ADMINISTRATION

3.1        Administration of Plan.  The Committee shall administer the Plan in accordance with the terms, requirements, and restrictions as set forth herein and in the Terms and Conditions. The Committee shall have plenary authority and discretion, subject to the provisions of the Plan, to amend or waive the provisions set forth in the Terms and Conditions including, but not limited to: production criteria, eligibility of Agents to receive an Award, the time or times at which Awards are granted, the number of Shares subject to an Award, any provisions relating to Vesting, any circumstances in which an Award may terminate and any other terms, conditions or restrictions on Awards.  In making the determinations, the Committee may adopt rules from time to time regarding sales production criteria and such other factors as the Committee in its discretion shall deem relevant.  Subject to the provisions of the Plan, the Committee shall have plenary authority to construe and interpret the Plan and any Agreements; to prescribe, amend, waive or rescind rules and regulations relating to the Plan; and to make all other determinations deemed necessary or advisable for the administrator of the Plan, including, but not limited to, any determination to accelerate the Vesting of outstanding Awards. The Committee shall have the authority and discretion to grant exceptions, on a case-by-case basis, to any of the provisions in the Plan or the Terms and Conditions. The determination of the Committee on the matters referred to in this Article III shall be binding and final.

3.2        Restricted Share Account.  The Committee shall establish and maintain adequate records to set forth in a restricted share account the names of the Participants and their respective Awards, the restrictions thereon, the stock certificates (if any) related thereto, any dividends or distributions payable or paid thereon, any votes taken with respect thereto, and such other matters as may be relevant to the proper administration of the Plan.

3.3        Acceleration of Vesting.  If an Award contains a Vesting schedule or has not Vested as of the date of any of the following events, such Vesting schedule shall be accelerated, and/or any other restrictions on exercise shall lapse:

	
  

	
a.

	
The death of the Participant;

  

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b.

	
A “Change of Control” as hereinafter defined.

 3.4           Change of Control.  For purposes of this Plan, unless otherwise defined in an Agreement, a “Change of Control” shall be deemed to have occurred if an event set forth in any one of the following paragraphs shall have occurred:

	
  

	
a.

	
any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 35% or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in paragraph (c) below;

	
  

	
b.

	
the following individuals cease for any reason to constitute a majority of the number of directors then serving:  individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended;

	
  

	
c.

	
there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary with any other corporation, other than (i) a merger or consolidation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the Company, the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger is then a subsidiary, the ultimate parent thereof or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 35% or more of the combined voting power of the Company’s then outstanding securities; or

	
  

	
d.

	
the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sole or disposed or any parent hereof.

Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following

  

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which the record holders of the Common Stock immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

ARTICLE IV

ELIGIBILITY

The Committee may from time to time designate Agents to whom Awards are granted from among those who are eligible to become Participants.  Such designation shall specify the number of shares of Restricted Stock or the number of Restricted Stock Units granted in each Award.  All Awards granted under this Plan shall be evidenced by Agreements which shall be subject to applicable provisions of this Plan, the Terms and Conditions, or such other provisions as the Committee may adopt that are not inconsistent with the Plan.

ARTICLE V

STOCK SUBJECT TO THE PLAN

The maximum aggregate number of Shares that may be issued pursuant to Awards under this Plan is 1,000,000 Shares, subject to adjustments as provided in Article VIII.

ARTICLE VI

QUALIFYING PERIOD

The Qualifying Period for eligible Agents shall be determined by the Committee and specifically set forth in the Terms and Conditions.

ARTICLE VII

RESTRICTIONS ON TRANSFER

A Participant shall not be permitted (i) to sell, transfer, pledge (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or assign shares of Restricted Stock or Restricted Stock Units awarded under the Plan, or (ii) to receive a stock certificate representing Restricted Stock, until, in each case, the restrictions stated in the Participant’s Agreement lapse.

ARTICLE VIII

CAPITAL ADJUSTMENT

In the event of any change in the outstanding Common Stock by reason of any stock dividend, split-up (or reverse stock split), recapitalization, reclassification, reorganization, reincorporation, combination or exchange of shares, merger, consolidation, liquidation or similar change in corporate

  

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structure, the Committee shall, in its discretion and to the extent necessary to compensate for the effect thereof, provide for an equitable substitution for or adjustment in (i) the number and class of Shares subject to outstanding Awards, and (ii) the aggregate number and class of Shares that may be issued under the Plan, as stated in Article V.

ARTICLE IX

TERMINATION OR AMENDMENT

The Board may amend, alter, suspend or terminate the Plan in any respect at any time; provided, however, that no amendment, alteration, suspension or termination of the Plan shall be made by the Board without approval of each affected Participant if such amendment, alteration, suspension or termination would adversely affect his or her rights or obligations under any Award granted prior to the date of such amendment, alteration, suspension or termination or without shareholder approval to the extent such approval is required by applicable law or an exchange, market or other listing requirement.  No Award may be granted during any suspension or after termination of the Plan.

ARTICLE X

TAXES PAYABLE BY PARTICIPANT

Any and all taxes and other withholding obligations payable in connection with or relating to the grant, Vesting or settlement of an Award, and/or the sale of any Shares by Participant, shall be the sole responsibility of the Participant.

ARTICLE XI

TERM OF THE PLAN

Unless sooner terminated by the Board pursuant to Article IX hereof, the Plan shall terminate on February 1, 2020.

ARTICLE XII

INDEMNIFICATION OF COMMITEE

In addition to such other rights of indemnification as they may have as Director or as members of the Committee, the members of the Committee shall be indemnified by the Company against the reasonable expenses, including attorneys’ fees, actually and reasonably incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan, the Terms and Conditions, any Agreement or any Award granted hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction of a judgment in any such action, suit or proceeding, if such members acted in good faith and in a manner which they believed to be in, and not opposed to, the best interests of the Company.

  

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ARTICLE XIII

GENERAL PROVISIONS

13.1       No Other Rights Conferred.  The establishment of the Plan shall not confer upon any Agent any legal or equitable right against the Company or any member of the Committee or the Board, except as expressly provided in the Plan.

13.2       No Employment Contract.  The Plan does not constitute inducement or consideration for the services of any Agent, nor is it a contract between the Company or American Equity and any Agent.  Participation in the Plan shall not give an Agent any right to be retained under his or her applicable Agent’s Contract with American Equity.

13.3       Plan Interest Not Subject to Creditor Claims.  The interests of any eligible Participant under the Plan are not subject to the claims of creditors and may not, in any way, be assigned, alienated or encumbered except as provided in an Agreement.

13.4       Applicable Laws.  The Plan shall be governed, construed and administered in accordance with the laws of the State of Iowa.

13.5       Representations Regarding Investment Intent; Restrictive Legends.  The Committee may require each person acquiring Shares pursuant to an Award hereunder to represent to and agree with the Company in writing that such person is acquiring the Shares without a view to distribution thereof.  The certificates for such Shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.  All certificates for Shares issued pursuant to the Plan shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange or interdealer quotation system upon which the Common Stock is then listed or quoted, and any applicable federal or state securities laws.  The Committee may place a legend or legends on any such certificates to make appropriate reference to such restrictions.  The certificates for Shares acquired pursuant to an Award may also include any legend which the Committee deems appropriate to reflect restrictions contained in this Plan or in the applicable Agreement or to comply with the Iowa Business Corporation Law.

13.6       Regulatory Approvals.  The Company shall not be required to issue any certificate or certificates for Shares upon an Award, or record any person as a holder of record of such Shares, without obtaining, to the complete satisfaction of the Committee, the approval of all regulatory bodies deemed necessary by the Committee, and without complying to the Committee’s complete satisfaction, with all rules and regulations, under federal, state or local law deemed applicable by the Committee and all applicable listing or exchange requirements.

 

 

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