Document:

Form of Supplemental Benefit Agreement

 

Exhibit 10.1

SUPPLEMENTAL BENEFIT AGREEMENT

     THIS SUPPLEMENTAL BENEFIT AGREEMENT (this “Agreement”) is entered into and
made effective as of the 3rd day of February, 2003, by and between            
     , residing at            (“Employee”), and AmerUs Group Co., an
Iowa corporation having its principal place of business at 699 Walnut St, Des
Moines, IA 50309 (“Employer”).

     WHEREAS, Employer currently employs Employee as            of Employer; and

     WHEREAS, Employer and Employee wish to enter into an agreement concerning
a certain aspect of their employment relationship;

     NOW, THEREFORE, in consideration of the mutual promises and covenants
contained in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

     Section 1.     Definitions. Whenever used herein, capitalized words and
phrases, unless the context otherwise requires, shall have the meanings
ascribed in the text, or as set forth on Exhibit A, which is attached hereto
and made a part hereof.

     Section 2.     Termination of Employment by Employee for Good Reason.

          a. If the employment of Employee is terminated by Employee for Good
Reason, Employee shall be entitled to the Severance Payment and the Continued
Benefits.

          b. Any offer of Comparable Employment following a Change of Control shall
remain open for at least fifteen (15) days after such offer is extended to
Employee. If Employee does not accept an offer of Comparable Employment
following a Change of Control within fifteen (15) days after it is offered, all
rights of Employee under this Agreement shall cease.

          c. If Employee timely accepts an offer of Comparable Employment following
a Change of Control and if within three (3) years following the date such offer
of Comparable Employment is accepted either (i) the employment of Employee is
terminated by Employer without Cause (as such term is described in Section 4
hereof) or (ii) a Material Event occurs and Employee elects to terminate his or
her employment with Employer (which will also be considered a termination of
employment by Employee for Good Reason for purposes hereof), then Employee
shall be entitled to the Severance Payment and the Continued Benefits.

     Section 3.     Termination of Employment by Employer Following Change of
Control. If the employment of Employee is terminated by Employer following a
Change of Control, and such termination is not for Cause as described in
Section 4 hereof, Employee shall be entitled to the Severance Payment and the
Continued Benefits; provided, however, that if Employee accepts an offer of
Comparable Employment, the provisions of Section 2(c) shall apply rather than
this Section 3.

     Section 4.     Termination of Employment by Employer for Cause. Employer may
terminate the employment of Employee at any time for Cause. Employer shall have
“Cause” to terminate Employee’s employment for Employee’s personal dishonesty,
gross negligence, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, or willful
violation of any law, rule, regulation (other than traffic violations or
similar offenses) or final cease-and-desist order, in each case, that has not
been cured within 30 days after a written notice is delivered to Employee by
Employer, which specifically identifies the circumstances which

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constitute Cause. Upon termination for Cause, all rights of Employee
under this Agreement shall cease as of the Termination Date.

     Section 5.     Notice of Termination. Any termination of the employment of
Employee shall be communicated by a Notice of Termination to the other party
hereto. If there is any dispute or controversy under this Agreement with
respect to Employee’s entitlement to the Severance Payment or Continued
Benefits, or the amount of same, except in the event of a termination for Cause
by Employer, Employer shall continue to pay Employee the full compensation and
benefits in effect when the Notice of Termination was given (including without
limitation Base Compensation and payments under any bonus and incentive plans
in which Employee participates), until the earlier of the date when the dispute
is finally resolved or twelve (12) months from the date when the Notice of
Termination was given. Amounts paid under the preceding sentence shall be
offset against and shall reduce any other amounts due under this Agreement,
including any Severance Payment or Continued Benefits and any arbitration award
under Section 11 hereof.

     Section 6.     Severance Payment.

          a. In the event the employment of Employee is terminated by Employee for
Good Reason as described in Section 2 hereof or by Employer following a Change
of Control as described in Section 3 hereof, Employer shall pay to Employee the
following Severance Payment, which shall be paid in a lump sum within
thirty-five (35) days following the Termination Date:

               (i) Any amount of Employee’s Base Compensation earned but unpaid through
the Termination Date; and

               (ii) In lieu of any further salary or other payments of any kind to
Employee for periods after the Termination Date, an amount equal to:

	 	(1)	 	the sum of:

	 	(A)	 	Employee’s Base
Compensation, plus
	 
	 	(B)	 	the amount of
Employee’s annual Employer’s Management
Incentive Plan award with respect to the year
in which the Termination Date occurs, assuming
the Plan Target Level (as defined by the
Employer’s Management Incentive Plan) had been
achieved and that all other terms and
conditions of the Employer’s Management
Incentive Plan had been satisfied; plus
	 
	 	(C)	 	the amount of
contributions made by Employer to the Plans for
the benefit of Employee with respect to the
year prior to the year in which the Termination
Date occurs.

	 	(2)	 	multiplied by the number three (3).

               (iii) An amount equal to the contributions from the Employer the Employee
would have otherwise been entitled to under the Plans if Employee had remained
an employee of Employer until and including December 31 of the calendar year in
which Employee’s employment terminates.

          b.   (i)     Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by Employer to
Employee (whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise, but determined without regard to any
additional payments required under this Section 6.b.) (a “Payment”) is subject
to the excise tax imposed by Section 4999 of the

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Internal Revenue Code of 1986, as amended (the “Code”), or any interest or
penalties are incurred by Employee with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter
collectively referred to as the “Excise Tax”), then Employer shall pay to
Employee an additional payment (a “Gross-Up Payment”) in an amount such that
after payment by Employee of all taxes (including any interest or penalties
imposed with respect to such taxes), including without limitation, any federal,
state or local income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, Employee
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments.

               (ii)     Subject to the provisions of Section 6.b.(iii), all determinations
required to be made regarding whether and when a Gross-Up Payment is required
and the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination shall be made by Employer’s public accounting
firm (the “Accounting Firm”) which shall provide detailed supporting
calculations both to Employer and Employee as soon as possible following a
request made by Employee or Employer. In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change of Control, Employer shall appoint another nationally recognized
public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder).
All fees and expenses of the Accounting Firm shall be borne solely by Employer.
Any Gross-Up Payment shall be paid by Employer to Employee within five (5) days
of the receipt of the Accounting Firm’s determination. If the Accounting Firm
determines that no Excise Tax is payable by Employee, it shall furnish Employee
with a written opinion that failure to report the Excise Tax on Employee’s
applicable federal income tax return would not result in the imposition of a
negligence or similar penalty. Any determination by the Accounting Firm shall
be binding upon Employer and Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by Employer should have been made
(“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that Employer exhausts its remedies pursuant to Section
6.b.(iii), and Employee thereafter is required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by Employer to or
for the benefit of Employee.

               (iii)     Employee shall notify Employer in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by
Employer of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten (10) business days after Employee is informed
in writing of such claim and shall apprise Employer of the nature of such claim
and the date on which such claim is requested to be paid. Employee shall not
pay such claim prior to the expiration of the 30-day period following the date
on which Employee gives such notice to Employer (or such shorter period ending
on the date that any payment of taxes with respect to such claim is due). If
Employer notifies Employee in writing prior to the expiration of such period
that it desires to contest such claim, Employee shall:

	 	(1)	 	give Employer any information
reasonably requested by Employer relating to such
claim,
	 
	 	(2)	 	take such action in connection with
contesting such claim as Employer shall reasonably
request in writing from time to time, including,
without limitation, accepting legal representation with
respect to such claim by an attorney reasonably
selected by Employer,
	 
	 	(3)	 	cooperate with Employer in good
faith to effectively contest such claim, and
	 
	 	(4)	 	permit Employer to participate in
any proceedings relating to such claim;

provided, however, that Employer shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Employee harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of

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such representation and payment of costs and expenses. Without limitation on
the foregoing provisions of this Section 6.b.(iii), Employer shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct Employee to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and Employee agrees to
prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as
Employer shall determine; provided further, that if Employer directs Employee
to pay such claim and sue for a refund, Employer shall advance the amount of
such payment to Employee on an interest-free basis and shall indemnify and hold
Employee harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such
advance; and provided further, that any extension of the statute of limitations
relating to payment of taxes for the taxable year of Employee with respect to
which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, Employer’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Employer shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

               (iv) If,     after the receipt by Employee of an amount advanced by Employer
pursuant to Section 6.b.(iii), Employee becomes entitled to receive, and
receives, any refund with respect to such claim, Employee shall (subject to
Employer’s complying with the requirements of Section 6.b.(iii)) promptly pay
to Employer the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by
Employee of any amount advanced by Employer pursuant to Section 6.b.(iii), a
determination is made that Employee shall not be entitled to any refund with
respect to such claim and Employer does not notify Employee in writing of its
intent to contest such denial of refund prior to the expiration of thirty (30)
days after such determination, then such advance shall be forgiven and shall
not be required to be repaid and the amount of such advance shall offset, to
the extent thereof, the amount of Gross-Up Payment required to be paid.

     Section 7.     Continued Benefits. In the event the employment of Employee is
terminated by Employee for Good Reason as described in Section 2 hereof or by
Employer following a Change of Control as described in Section 3 hereof,
Employer shall continue to provide to Employee the Continued Benefits described
in this Section 7. Employer shall maintain in full force and effect, for the
benefit of Employee for three (3) years after the Termination Date, all
employee welfare benefit plans and programs or arrangements and perquisites,
including automobile allowance and tax planning services, provided to Employee
immediately prior to the Termination Date (collectively, the “Continued
Benefits”); provided, however, that Employee’s continued participation is
possible under the general terms and provisions of such plans, programs and
arrangements. In the event that Employee’s continued participation in any such
plan, program or arrangement or perquisites is not possible, Employer shall
arrange to provide Employee with substantially equivalent benefits. At the end
of the period of coverage, Employee shall have the option to have assigned to
Employee at no cost and with no apportionment of prepaid premiums any
assignable insurance policy owned by Employer and relating specifically to
Employee. Notwithstanding the foregoing, benefits otherwise receivable by
Employee pursuant to this section shall be reduced to the extent benefits of
the same type are received by Employee during Employee’s period of extended
coverage. In addition, Employee shall be fully vested in all of his or her
account in the All*AmerUs Savings & Retirement Plan and the All*AmerUs
Supplemental Executive Retirement Plan.

     Section 8.     No Mitigation. Employee shall not be required to mitigate the
amount of any Severance Payment or Continued Benefits by seeking other
employment or otherwise, nor shall the amount of any Severance Payment or
Continued Benefits (other than the earlier termination of certain employee
benefits as described in Section 7 hereof) be reduced by any compensation
earned by Employee as a result of employment by another employer after
termination of this Agreement or otherwise. Employer’s obligation to pay
Employee the compensation and make the arrangements provided herein shall be
absolute and unconditional and, following any Change of Control, shall not be
affected by any circumstances, including without limitation any set-off (except
as provided in Sections 5 and 9.b. hereof), counterclaim, recoupment, defense
or other rights which Employer may have. Except as otherwise provided herein,
all amounts payable by Employer shall be paid without notice or demand.

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     Section 9.     Indemnification.

          a.     In addition to the costs and expenses to be borne by Employer pursuant
to the provisions of Section 6.b. herein, Employer shall pay, and indemnify
Employee against, all costs and expenses, including without limitation the fees
and expenses of attorneys, arbitrators, experts and witnesses, incurred by or
on behalf of Employee in connection with any arbitration or legal claim or
proceeding arising from this Agreement or the interpretation thereof, to the
extent that Employee is successful, on the merits or otherwise, in any such
claim or proceeding. If Employee is not wholly successful in such claim or
proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such claim or proceeding, then
Employer shall indemnify Employee against all such costs and expenses incurred
by Employee or on Employee’s behalf in connection with each successfully
resolved claim, issue or matter.

          b.     Employer shall advance all such costs and expenses incurred by or on
behalf of Employee in connection with any such claim or proceeding referred to
in Section 9.a. hereof within twenty (20) days after receipt by Employer of a
statement or statements from Employee requesting such advance or advances,
whether prior to or after final disposition of such claim or proceeding. Such
statement or statements shall reasonably evidence the costs and expenses
incurred by Employee and shall be preceded or accompanied by an undertaking by
or on behalf of Employee to repay any costs and expenses advanced if it shall
ultimately be determined that Employee is not entitled to be indemnified
against such costs and expenses and, furthermore, if Employee fails to repay
any costs and expenses that are advanced, then such amounts shall be offset
against and shall reduce any other amounts due to Employee under this
Agreement.

     Section 10.     Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, registered
first-class mail, telecopier or commercial courier guaranteeing next day
delivery to the respective addresses provided for Employer and Employee in the
introductory paragraph of this Agreement. Notices to Employer shall be
addressed to the attention of the Chairman of the Human Resources Committee for
the Board of Directors and the Executive Vice President, Chief Administration
and Human Resources Officer of Employer. All such notices and communications
shall be deemed to have been duly given; at the time delivered by hand, if
personally delivered; five (5) business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged, if telecopied; and
the next business day after timely delivery to the courier, if sent by
commercial courier guaranteeing next day delivery.

     Section 11.     Arbitration. Employer and Employee agree that any disputes
arising out of or relating to this Agreement shall be arbitrated in accordance
with the rules of the American Arbitration Association and the Federal
Arbitration Act. Such arbitration shall be held in Des Moines, Iowa. No party
shall initiate arbitration unless, at least thirty (30) days prior thereto,
such party has given the other party written notice of the intent to initiate
arbitration and a detailed description of the basis of the dispute. A single
arbitrator (or, in any matter in which the amount in controversy exceeds
$500,000, a panel of three (3) arbitrators) shall interpret this Agreement in
accordance with Iowa laws and shall conduct proceedings in accordance with the
Federal Rules of Civil Procedure. Punitive damages, if any, awarded by the
arbitrator(s) shall not exceed two (2) times compensatory damages awarded. Any
award of the arbitrator(s) shall be deemed final, and judgment upon such award
may be entered and enforced in any Iowa District Court and transferred to any
other jurisdiction.

     Section 12.     Tax Withholding. Employer shall have the right to withhold
from any transfer or payment made to Employee or to any other Person hereunder,
whether such payment is to be made in cash or other property, all applicable
federal, state, city or other taxes or foreign taxes as shall be required in
the determination of Employer pursuant to any statute or governmental
regulation or ruling.

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     Section 13.     Interest. Employer shall pay Employee interest at a rate of
ten percent (10%) per annum on any benefits payable to Employee hereunder not
paid by the date provided for herein from such date until the date of payment.

     Section 14.     General Creditor. Nothing contained in this Agreement and no
action taken pursuant to the provisions of this Agreement shall create or be
construed to create a trust of any kind or a fiduciary relationship between
Employer and Employee or any other Person, nor shall any money or property of
Employer be segregated for the benefit of Employee to satisfy the obligations
of Employer hereunder. To the extent that Employee acquires a right to receive
payments hereunder, such rights shall be no greater than the right of any
general unsecured creditor of Employer. Except as expressly provided herein,
each payment shall be made in cash from the general assets of Employer.

     Section 15.     No Waiver. The failure of either party to require the
performance of any term or condition of this Agreement, or the waiver by either
party of any breach of this Agreement, shall not prevent a subsequent
enforcement of any term or condition nor be deemed to be a waiver of any
subsequent breach by either party.

     Section 16.     Binding Effect. This Agreement shall be binding on and inure
to the benefit of the successors and assigns of Employer. This Agreement shall
inure to the benefit of and be enforceable by Employee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.

     Section 17.     No Assignment. The right of Employee or any other Person to
the payment of amounts or other benefits under this Agreement shall not be
assigned, alienated, hypothecated, placed in trust, disposed of, transferred,
pledged or encumbered (except as provided in Section 16 herein) and, to the
extent permitted by law, no such amount or payment shall in any way be subject
to any legal process to subject the same to the payments of any claim against
Employee or any other Person.

     Section 18.     Paragraphs and Other Headings. The paragraph headings
contained in this Agreement are for reference purposes only and shall not
affect the interpretation of this Agreement.

     Section 19.     Governing Law. This Agreement and all transactions
contemplated by this Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of Iowa, without regard to principles
of conflicts of laws.

     Section 20.     Severability. If any one or more of the provisions contained
in this Agreement shall for any reason be held invalid, illegal or
unenforceable, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Agreement, which shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein. It
is the intention of the parties that if any provision of this Agreement is
capable of two constructions, one of which would render the provision void and
the other of which would render the provision valid, then the provision shall
have the meaning that renders it valid.

     Section 21.     At-Will Employment. Nothing in this Agreement shall alter the
“at-will” nature of Employee’s employment with Employer, it being understood
that the “at-will” nature of Employee’s employment with Employer shall in no
way alter the benefits to which Employee is otherwise entitled under this
Agreement.

     Section 22.     Survivability. The obligations of Employer and Employee under
this Agreement shall survive the termination of this Agreement.

     Section 23.     Employer After a Change of Control. Following a Change of
Control and the acceptance by Employee of an offer of Comparable Employment,
the term “Employer” shall be deemed to mean the actual employer of Employee
(which may be Employer, an affiliate thereof or some other Person involved in
the Change of Control).

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     Section 24.     Entire Agreement. This Agreement sets forth the entire
understanding of the parties and supersedes all other representations,
agreements including those dated February 1, 2000 and     between the
Employee and AmerUs Life holdings Inc. and understandings, oral or otherwise,
between or among the parties with respect to the matters contained herein as
related to a Change in Control but excluding matters related to stock options
agreements between the Employer and the Employee [and matter dealt with in the
agreement of     between the Employer and the Employee].*

     IN WITNESS WHEREOF, the parties have set their respective signatures as of
the day and year first above written.

	 	 	 	 	 	 	 
	 	 	 	 	AmerUs Group Co.
	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	 
	 	

	 	 	

	
Printed Name:
	 	Victor N. Daley, Executive Vice President,
	 	 	 	 	Chief Administration and Human Resource
	 	 	 	 	Officer

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EXHIBIT A

DEFINITIONS

     “Affiliate” shall mean with respect to any Person, any Person which,
directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with such entity; provided, however,
that any Person which owns directly or indirectly ten percent (10%) or more of
the securities having ordinary voting power for the election of directors or
any other governing body of a corporation or ten percent (10%) or more of the
partnership or other ownership interests of any other Person (other than as a
limited partner of such Person) will be deemed to control such Person.

     “Base Compensation” shall mean the greater of (i) the semi-monthly salary
paid to Employee by Employer which was in effect immediately prior to the
Termination Date or (ii) the semi-monthly salary paid to Employee by Employer
which was in effect prior to any reduction thereof made without the written
consent of Employee, in either case multiplied by twenty-four (24).

     “Change of Control” shall mean any of the following events: (a) any Person
or group (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the
Exchange Act) other than a Subsidiary of Employer (for purposes of this
definition, “Subsidiary” shall mean each of those Persons of which another
Person, directly or indirectly through one or more Subsidiaries, owns
beneficially securities having more than 25% of the voting power in the
election of directors (or Persons fulfilling similar functions or duties) of
the owned Person (without giving effect to any contingent voting rights)) or
any employee benefit plan (or any related trust) of Employer or a Subsidiary of
Employer, becomes the beneficial owner (as such term is defined in Rule 13d-3
of the Exchange Act) of (1) 25% or more of the common stock of Employer or (2)
securities of Employer that are entitled to vote generally in the election of
directors of Employer (“Voting Securities”) representing 25% or more of the
combined voting power of all Voting Securities of Employer; (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 of Directors of Employer (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 Employer) whose
appointment or election by the Board or nomination for election by Employer’s
stockholders 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; or (c) there is consummated a merger,
reorganization or consolidation involving Employer or any direct or indirect
Subsidiary of Employer and any other corporation or other entity, other than a
merger, reorganization or consolidation which results in the common stock and
Voting Securities of Employer outstanding immediately prior to such merger,
reorganization or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) at least 60%, respectively, of the common stock
and combined voting power of the Voting Securities of Employer or such
surviving entity or any parent thereof outstanding immediately after such
merger, reorganization or consolidation, or (d) the stockholders of Employer
approve a plan of complete liquidation or dissolution of Employer or there is
consummated an agreement for the sale or disposition by Employer of all or
substantially all of Employer’s assets.

     “Comparable Employment” shall mean employment with Employer, an Affiliate
thereof or a third party involved in any Change of Control on terms and
conditions which are no less favorable, in the aggregate to the terms and
conditions of employment prevailing with respect to Employee immediately
preceding a Change of Control, provided, however, such an offer of employment
shall not be Comparable Employment if the acceptance of such offer would result
in:

	 	(1)	 	Assignment of duties or responsibilities that are substantially
inconsistent with Employee’s position, duties, responsibility or
status with Employer immediately prior to the Change of Control or a
substantial reduction of Employee’s duties or responsibilities as
compared with Employee’s duties and responsibilities immediately
prior to the Change of Control; including, without limitation,
Employee

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	 	 	 	ceasing to be an executive officer, as that term is used pursuant to
Regulation §229.401 of Regulation S-K under the Securities Act of
1933, the Securities Exchange Act of 1934 and the Energy Policy and
Conservation Act of 1975, of a public company;
	 
	 	(2)	 	A reduction in the amount of Employee’s Base Compensation, a
material reduction in Employee’s annual incentive compensation
opportunity or long term incentive compensation opportunity
(including an adverse change in performance criteria or a decrease in
the target amount of annual or long term incentive compensation) or a
material reduction in any other employee perquisites to which
Employee is entitled, from that in effect immediately prior to the
Change of Control, or
	 
	 	(3)	 	A relocation of Employee’s principal office to a location more
than thirty-five (35) miles from the location of such office
immediately prior to the Change of Control.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended
from time to time.

     “Good Reason” shall mean the occurrence of both (i) a Change of Control
without Employee being offered Comparable Employment and (ii) a Material Event.

     “Material Event” shall mean the occurrence of any one of the following
events without Employee’s express written consent:

	 	(1)	 	The assignment to Employee of duties substantially inconsistent
with Employee’s position, duties, responsibility or status with
Employer or a substantial reduction of Employee’s duties or
responsibilities, as compared with Employee’s duties or
responsibilities prior to such reduction, or any removal of Employee
from, or any failure to re-elect Employee to, the position Employee
held at the time of such removal or failure to re-elect, except in
connection with termination of employment for Cause [including,
without limitation, Employee ceasing to be an executive officer, as
that term is used pursuant to Regulation §229.401 of Regulation S-K
under the Securities Act of 1933, the Securities Exchange Act of 1934
and the Energy Policy and Conservation Act of 1975, of a public
company]2; or
	 
	 	(2)	 	A reduction in the amount of Employee’s Base Compensation, a
material reduction in payments received by Employee under any bonus
or incentive plans in which Employee participates or a material
reduction in any other employee perquisites to which Employee is
entitled; or
	 
	 	(3)	 	The relocation of Employee’s principal office to a location
more than thirty-five (35) miles from the location of such office
immediately prior to such relocation; or
	 
	 	(4)	 	Any material breach by Employer of any of the provisions of
this Agreement.

     “Notice of Termination” shall mean written notice of the termination of
the employment of Employee.

     “Person” shall mean as such term is used in Rule 13d-5 under the Exchange
Act.

     “Plans”
shall mean, collectively, the All*AmerUs Savings & Retirement
Plan, the All*AmerUs Supplemental Executive Retirement Plan, the
All*AmerUs
Excess Benefit Plan, the Interim Benefit Supplement, any trust agreements
related to the foregoing and any successor plans.

     “Severance Payment” shall mean the payment described in Section 6
hereof.“Termination Date” shall mean the date on which the employment of
Employee with Employer terminates.

2 Insert into agreements for executive officers only.

50Tax Allocation and Indemnification Agreement

 

Exhibit 10.2

TAX ALLOCATION AND INDEMNIFICATION AGREEMENT

          TAX ALLOCATION AND INDEMNIFICATION AGREEMENT (this “Agreement”) dated as
of July 1, 2000 among Parent and the Members, on behalf of themselves and their
wholly-owned subsidiaries:

          WHEREAS, the parties to this Agreement are currently Members of an
affiliated group (the “Group”) within the meaning of Section 1504(a) of the
Internal Revenue Code of 1986 (the “Code”), of which Parent has been the common
parent since June 30, 1996;

          WHEREAS, Parent has filed or will file consolidated Federal income tax
returns (“Group Tax Returns”) and other tax returns on behalf of the Group for
certain periods relevant hereto;

          WHEREAS, Parent and the Members of the Group have or may file state income
and franchise tax returns on a combined or consolidated basis; and

          WHEREAS, Parent and the Members desire to set forth their rights and
obligations with respect to certain tax liabilities.

          NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree as follows:

          1.       Definitions. For purposes of this Agreement:

                 a.       Applicable Period; Tax Period. The term “Applicable Period” shall
refer to the tax period beginning January 1, 1999 and continue for all
subsequent taxable years unless the parties agree in writing to terminate the
Agreement. The term “Tax Period” shall refer to all taxable periods beginning
or ending in the Applicable Period.

                 b.       Group. The term “Group” shall refer to the affiliated group (within
the meaning of Section 1504(a) of the Code) which includes Parent and the
Members.

                 c.       Parent. The term “Parent” shall refer to the common parent of the
Group.

                 d.       Members. The term “Members” shall refer to those listed in Appendix A
and to all corporations that would from time to time be eligible or required to
be included in a consolidated Federal income tax return with Parent per Section
11 of this Agreement.

                 e.       Group Tax Liability; Group AMT Liability. The term “Group Tax
Liability” shall mean the consolidated Federal income tax liability, if any,
reported on the Group Tax Return (as adjusted under Section 8 of this
Agreement). For purposes of this Agreement, the term “Group AMT Liability”
shall mean the alternative minimum tax liability under Section 55 of the Code,
if any, reported on the Group Tax Return (as adjusted under Section 8 of this
Agreement).

          2.       Cooperation in Filing Returns. Parent shall be responsible for
preparing the Group Tax Returns for each Tax Period and shall prepare those
returns in a manner which fairly reflects the interests of the Members. The
Members will cooperate with Parent in the preparation and filing of the Group
Tax Returns for each Tax Period, regardless of whether such returns are
prepared after the Applicable Period, and provide such assistance and
documents, without charge, as may reasonably be requested by Parent for that
purpose.

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           3.       Allocation of Group Tax Liability to Parent and the Members. The Group
Tax Liability for each Tax Period shall be allocated among the Parent and the
Members as provided in this Section 3 in the following manner:

                 a.       For purposes of this Section 3 of the Agreement, the term Member shall
also include Parent.

                 b.       Step 1. The consolidated federal income tax liability of the
Affiliated Group, as determined under Treas. Reg. Section 1.1502-2 shall be
allocated to the Members in accordance with Treas. Reg. Section 1.1552-1(a)(2)
in the following manner:

                        (i) The separate return tax liability of each Member with Federal income
tax liability (a “Profit Member”) for each Tax Period shall first be
ascertained under the applicable provisions of the Code and the Consolidated
Return Regulations. Any gain or loss (including a gain or loss attributable to
a corporate restructuring) that is treated as recognized by one or more members
of an affiliated group under the Code and regulations shall be treated as
attributable to that member for purposes of this Agreement. In computing the
Federal income tax liability of each Profit Member, the surtax exemption to
which the Group as a whole is entitled shall be apportioned among the Profit
Members in proportion to their respective separate taxable incomes;

                        (ii) The separate Federal income tax liabilities of all of the Profit
Members computed under Section 3(b)(i) for each Tax Period shall then be
aggregated into a single sum; and

                        (iii) Each Profit Member shall then be allocated a portion of the Group
Tax Liability, if any, for each Tax Period equal to the product of (A) the
Group Tax Liability for such Tax Period and (B) a fraction, the numerator of
which is the separate Federal income tax liability of such Profit Member for
such Tax Period determined under Section 3(b)(i) and the denominator of which
is the aggregate sum for such Tax Period determined under Section 3(b)(ii).

                 c.       Step 2. An additional amount shall also be allocated to each Profit
Member equal to 100 percent of the excess, if any, of (A) the separate return
tax liability of such Member for the taxable year determined under Section
3(b)(i) over (B) the tax liability allocated to such Member under Section
3(b)(iii) of this Agreement.

          4.       Allocation of Group AMT Liability to Parent and the Members. If the
Group should incur any Group AMT Liability for any Tax Period, the Group AMT
Liability shall be allocated among the Members as provided in this Section 4.

                 a.       For purposes of this Section 4 of the Agreement, the term Member shall
also include Parent.

                 b.       Step 1. The consolidated federal AMT liability of the Group shall be
allocated to the Members in the following manner:

                        (i) The separate alternative minimum taxable income of each Member with
positive separate alternative minimum taxable income (an “AMT Member”) shall be
computed under Section 55(b)(2) of the Code;

                        (ii) The exemption amount under Section 55(d)(2) of the Code (as adjusted
under Section 55(d)(3)(A) of the Code) shall be apportioned among the AMT
Members in proportion to their respective separate alternative minimum taxable
incomes;

52

 

                        (iii) The amount allocated to each AMT Member in Section 4(b)(i) shall be
reduced by the amount, if any, allocated to such AMT Member under Section
4(b)(ii) (the resulting amount referred to as the “AMT Base Amount”);

                        (iv) The separate AMT Base Amounts of each AMT Member shall be aggregated
into a single total; and

                        (v) Each AMT Member shall then be allocated a portion of the Group AMT
Liability for each Tax Period equal to the product of (A) the Group AMT
Liability and (B) a fraction, the numerator of which is the AMT Base Amount
allocated to such AMT Member under Section 4(b)(iii) and the denominator of
which is the aggregate sum determined under Section 4(b)(iv).

                 c.       Step 2. An additional amount shall also be allocated to each AMT
Member equal to 100 percent of the excess, if any, of (A) the separate return
AMT liability of such Member for the taxable year determined under Section
4(b)(iii) over (B) the AMT tax liability of such Member determined under
Section 4(b)(v) of this Agreement.

          5.       Payment of Allocable Tax Liability. Sections 3(b) and 4(b) are
intended to allocate liability for the payment of the Group Tax Liability and
any Group AMT Liability for each Tax Period to Parent and the Members in
proportion to their respective contributions to such liabilities. The amounts
allocated in this manner shall be a joint and several liability of each Member
enforceable by Parent and the other Members of the Group under the terms of
this Agreement, and requiring the Members to promptly transmit payment in the
amount of the allocation to Parent in a timely manner so that such payment may
be included with the filing of the Group Tax Return for such Tax Period. The
Members shall be jointly and severally liable for any interest or penalties
resulting from their failure to tender such payments timely. Each AMT Member
shall be entitled to a portion of any minimum tax credit computed under Section
53 based on its respective payments of the Group AMT Liability.
Notwithstanding the foregoing, the Members shall pay their allocable share of
estimated Federal income taxes (including estimated alternative minimum taxes)
to Parent in a timely manner so that Parent may timely pay required estimated
Federal income taxes during each Tax Period. The amount of any payment for
taxes owed by any Profit Member or AMT Member to Parent shall be net of any
estimated income or alternative minimum taxes, as the case may be, paid by such
Member with respect to the particular Tax Period. Parent shall promptly
provide the Members with evidence of the timely payment of each Group Tax
Liability, Group AMT Liability and estimated tax liability.

          6.       Payments to Loss Members. Each Profit Member shall pay Parent such
Member’s additional allocated tax liability determined under Section 4(c) or
5(c) of this Agreement. The Parent shall then pay to each Loss Member its
allocable share of the total of the additional amounts due from the Profit
Members. Payments for these allocable shares are to be made no later than 60
days after the date of filing of the consolidated Federal income tax return for
such Tax Period.

          7.       State and Local Income and Franchise Taxes. To the extent that Parent
and the Members file consolidated or combined state tax returns, the
consolidated or combined tax liability shall be allocated and paid in a manner
comparable to the provisions of this Agreement with respect to the Group
Federal income tax liability. All references to Federal income taxes shall be
considered to apply in a similar manner to state income taxes for those states
where Parent and the Members join in the filing of consolidated or combined
state tax returns.

          8.       Audits and Other Adjustments.

                 a.       In the event of any adjustment to the tax returns of the Group as filed
(by reason of an amended return, claim for refund, or an audit by the Internal
Revenue Service (“IRS”) or a state in which the Members file a consolidated or
combined state tax return), the liabilities of the Members, under Section 3, 4,
or 7 shall be re-determined to give effect to any such adjustment as if it was
made as part of the original computation of tax liability. Corresponding
adjusting payments among Parent and the Members (as provided in Sections 5 and
6 of this Agreement)

53

 

shall be made within 60 days after any such payments are made to or refunds are
received from the IRS or a state or, in the case of contested proceedings,
within 45 days after a final resolution of the dispute. To the extent that
interest and penalties are imposed by the IRS or a state or interest is
included in any refund, any adjusting payment among the Members shall reflect
the same in an equitable manner.

                 b.       Parent shall be responsible for coordinating and overseeing any IRS or
state examinations. All expenses of the examination and of defending any final
or proposed adjustments directly identifiable with a Member shall be borne by
that Member. All costs and expenses not specifically identifiable with a
Member shall be allocated based upon relevant facts and circumstances as Parent
deems just and proper.

                 c.       The Members shall inform Parent promptly of all questions raised by IRS
or state agents conducting an examination of federal or state income or
franchise tax returns and shall cooperate with Parent’s accountants, tax
advisors, and counsel in preparing responses to IRS or state information
requests and proposed adjustments.

                 d.       Any adjustments to the tax liabilities of the Members arising out of an
examination by the IRS or a state shall be computed on the basis of the
agreement reached by Parent and the IRS or a state, or on the basis of the
decision of a court of applicable jurisdiction.

          9.       Certain Post-Applicable Period Returns. For any taxable year in which
the federal income tax liability of the Members is not reported on the same tax
return as that of Parent and its wholly-owned subsidiaries, the person or
persons preparing the returns and representing the taxpayers in any examination
or appeal shall do so in a timely manner which fairly reflects the interests of
all taxpaying entities.

          10.       Indemnification. Each party shall pay and be responsible for, and
shall indemnify, defend and hold harmless all other parties to this Agreement
from and against all liabilities allocated to it under this Agreement. If any
party pays or has paid any Group Tax Liability, Group AMT Liability or state or
local income or franchise tax liability for which another party to this
Agreement is or becomes liable pursuant to the terms of this Agreement,
appropriate reimbursement shall be made no later than 10 days after demand
therefore together with interest calculated on such reimbursement at the rate
specified under Section 6621(a)(2) of the Code (the “Underpayment Rate”) from
the date such payment is due pursuant to this Agreement to the date of
reimbursement. The portion of any refund, rebate or reimbursement received by
any party to which another party is entitled pursuant to this Agreement shall
be paid over within 10 days to the party which is entitled thereto. Any other
payments required to be made between the parties pursuant to this Agreement
which are not made in a timely fashion shall bear interest at the Underpayment
Rate from the date the payment is due until the date the payment is made.

          11.       New Members. If at any time Parent or any Member acquires or creates
one or more subsidiaries that become Members of the Group, the subsidiaries
shall be subject to this Agreement, and the term Group as used herein shall be
deemed to include such subsidiaries. Notwithstanding the foregoing, if at any
time Parent or any Member owns one or more subsidiaries which are ineligible
(e.g., Section 1504(c)(2) of the Code) to join in filing a consolidated Federal
income tax return with Parent, such subsidiaries shall be subject to this
Agreement when and if such subsidiaries become eligible and join in filing a
consolidated Federal income tax return with Parent.

          12.       Complete Agreement. This Agreement shall constitute the entire
agreement among the parties with respect to the subject matter hereof and shall
supersede any previous negotiations, commitments and writings with respect to
such subject matter.

          13.       Successors and Assigns. This Agreement and all of its provisions
hereof shall be binding upon and shall inure to the benefit of the parties and
their respective successors and permitted assigns.

54

 

           14.       Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same agreement, it being understood that
all of the parties need not sign the same counterpart.

          15.       Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Iowa, without regard to its principles
of conflicts of law.

          16.       Amendments. Except as provided in Section 11, this Agreement may not
be modified or amended except by an agreement in writing signed by the parties
hereto.

[SIGNATURE PAGE FOLLOWS]

55

 

               IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their duly authorized officers as of the 1st day of July, 2000.

	 	 	 	 	 	 	 
	 	 	
 
	 	American Mutual Holding Company
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Michael G. Fraizer
	 	 	 	 	 	

	 	 	 	 	AmerUs Group Co.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Michael G. Fraizer
	 	 	 	 	 	

	 	 	 	 	AmerUs Properties, Inc.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Gene Harris
	 	 	 	 	 	

	 	 	 	 	AmerUs Home Equity, Inc.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Lee L. Griffin
	 	 	 	 	 	

	 	 	 	 	AmerUs Direct, Inc.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Jonna M. LaToure
	 	 	 	 	 	

	 	 	 	 	AmerUs Land Development, Inc.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Michael G. Fraizer
	 	 	 	 	 	

	 	 	 	 	AmerUs Mortgage, Inc.
	 	 	 	 	 	 	 
	 	 	 	 	By:
	 	/s/ Michael G. Fraizer
	 	 	 	 	 	

56

 

APPENDIX A

     The following and their wholly-owned (directly or indirectly) subsidiaries
are Members as defined by Section 1(d) of this Agreement:

	 	 	American Mutual Holding Company, an Iowa mutual insurance holding company
	 
	 	 	AmerUs Group Co., an Iowa corporation
	 
	 	 	AmerUs Properties, Inc., an Iowa corporation
	 
	 	 	AmerUs Home Equity, Inc., an Iowa corporation
	 
	 	 	AmerUs Direct, Inc., an Iowa corporation
	 
	 	 	AmerUs Land Development, Inc., an Iowa corporation
	 
	 	 	AmerUs Mortgage, Inc., an Iowa corporation

57

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