Document:

Exhibit 10.2

 

AMERICAN
EQUITY INVESTMENT

2005 NMO DEFERRED STOCK COMPENSATION PLAN

 

WHEREAS, the Board of Directors ( the “Board”)
of American Equity Investment Life Holding Company (the “Company”)
deems it in the best interest of the Company and its subsidiary, American
Equity Investment Life Insurance Company (“American  Equity”), that certain agents and brokers who solicit
business on behalf of the Company and American Equity 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 believes that the Company can best obtain these
and other benefits by establishing a deferred stock compensation plan pursuant
to which agents and brokers meeting certain production goals can earn credits
payable in Common Stock of the Company;

 

NOW, THEREFORE, the Board does hereby adopt
this 2005 NMO Deferred Stock Compensation Plan, subject to the terms and
conditions hereinafter set forth.

 

ARTICLE I

GENERAL

 

1.01         Purpose. The
American Equity Investment 2005 NMO Deferred Stock Compensation Plan (the “Plan”) is intended to advance the interests of the Company
and its agency force by encouraging and enabling selected agents and brokers meeting
certain production goals to earn credits payable in Common Stock of the
Company.

 

1.02 Definitions.

 

(a) “Board” means
the Board of Directors of the Company.

 

(b) “Common Stock”
means shares of common stock, $1 par value, of the Company.

 

(c) “Deferred Stock
Account” shall mean a bookkeeping entry made by the Company on its books of
account, which reflects the value of the Stock Credits earned by each NMO
hereunder. Each NMO shall have a separate Deferred Stock Account.

 

(d) “NMO” shall
mean each agent or broker who, at all times during the Qualification Period,
has an agency agreement with American Equity under which the agent or broker is
classified as a National Marketing Organization within American Equity’s
hierarchy of agents.

 

(e) “Participant”
shall mean an NMO which meets the eligibility requirements set forth in Article II
below.

 

(f) “Production”
shall mean first year annuity premiums on new annuity policies of American
Equity produced by or through an NMO, including (i) 100% of all annuity
premiums collected on all annuity policies other than the SPDA-6, Guarantee
Plus 1 and Guarantee Plus 2, (ii) 20% of first year annuity premiums
collected on the SPDA-6 and (iii) 40% of first year annuity 

 

1

 

premiums collected on the
Guarantee Plus 1 and Guarantee Plus 2. Internal rollovers are excluded from the
Production qualifications.

 

(g) “Qualification
Period” shall mean the 12-month period beginning on January 1, 2005 and
ending on December 31, 2005.

 

(h) “Stock Credit”
shall mean the right to receive shares of Common Stock at the time specified
for distribution thereof in Article IV below. Stock Credits shall be
distributed at the rate of one share of Stock per each Stock Credit earned by a
Participant under this Plan. The value of the Stock Credit will be determined
by the closing price at December 31, 2005.

 

(i) “Vesting Period”
shall mean the four-year period beginning January 1, 2006 and ending on December 31,
2009.

 

ARTICLE II

ELIGIBILITY

 

An NMO shall be a Participant under this Plan
if, and so long as, such NMO satisfies all of the eligibility requirements set
forth in this Article II:

 

2.01 Valid NMO Contract.
On January 1, 2006, the NMO must have a valid NMO agency agreement with
American Equity under which no default or other event of termination has
occurred prior to that date.

 

2.02 Minimum  Production.
During the Qualification Period, the NMO must have Production of at least One
Hundred Million Dollars ($100,000,000.00).

 

ARTICLE III

AWARDS OF STOCK CREDITS

 

3.01 Stock Credits to Deferred Stock Account. A Participant shall
receive Stock Credits based upon the following formula:

 

	
  Stock Credits:

  	
  Participant’s Production
  during the Qualification Period (as defined above) Multiplied by appropriate
  basis points below

  
	
   

  	
   

  
	
   

  	
  Production
  of $100 million -$124.99 million = 20 basis points

  
	
   

  	
  Production of $124.99 million -$149.99 million
  = 30 basis points

  
	
   

  	
  Production
  of $150 million -$174.99 million = 40 basis points

  
	
   

  	
  Production
  of $175 Million+ = 50 basis points

  
	
   

  	
   

  
	
   

  	
  Stock Credit Example: $125 million earns 30
  basis points on a full $125 million, or $375,000 Stock Credit. The Stock
  Credit shall then be divided by the value per share of the Common Stock as of
  the final trading day of 2005, to determine the number of shares of Common
  Stock to be distributed, as outlined below.

  

 

3.02 Initial Vesting.
A Participant who satisfies the Minimum Production requirements set forth in Article II
above shall become vested in his Deferred Stock Account to the extent of
twenty-five percent (25%) on January 1, 2006.

 

3.03 Vesting Period – Production
Requirements. A Participant who has at least Fifty 

 

2

 

Million Dollars in new Production per calendar
year within the Vesting Period shall become vested in his Deferred Stock
Account to the extent of an additional twenty-five percent (25%) per year for
up to three (3) years.

 

3.04 Automatic Vesting.
In the event of the Participant’s death or disability within the Vesting Period,
the Participant automatically shall become One Hundred Percent (100%) vested in
Participant’s Deferred Stock Account. Disability shall be deemed to have
occurred upon the written certification of Participant’s physician that
Participant is and will be permanently and continuously disabled, either
mentally or physically, and, as a result, is unable to carry out Participant’s
duties as an NMO of American Equity.

 

3.05 Non-transferability.
No Stock Credit shall be transferable or assignable by a Participant, otherwise
than by will or the laws of descent and distribution. No Stock Credit shall be
pledged or hypothecated in any way and no Stock Credit shall be subject to
execution, attachment or similar process.

 

ARTICLE IV

DISTRIBUTION

 

4.01 Distribution of Stock.
Within ninety (90) days after the occurrence of the earlier of the following,
the Company will issue and distribute to Participant or Participant’s
designated beneficiary the number of shares of Common Stock equal to the
quotient of the vested portion of the Participant’s Deferred Stock Account
divided by the value per share of the Common Stock as of the final trading day
of 2005.

 

(a) As determined
by the Board of Directors;

 

(b) The expiration
of five years after the end of the Vesting Period;

 

(c) Participant’s
death, disability (as defined in the Act).

 

4.02 Taxation. Each Participant and/or Participant’s heirs,
executors or administrators shall be responsible for payment of all taxes of
any kind, whenever such taxes may be imposed, on the value of the Common Stock
to which Participant may become entitled under this Plan.

 

ARTICLE V

MISCELLANEOUS

 

5.01 Independent Agency Relationship. Nothing in this Plan shall
be interpreted as changing the independent contractor status of the NMO as to
NMO’s relationship with the Company and American Equity nor shall this Plan be
interpreted as altering in any manner the contractual relationships the NMO has
entered into with the Company separate from this Plan, except as specifically
provided herein.

 

5.02 No Rights to Assets.
Nothing in this Plan shall be interpreted as giving the NMO any rights to any
assets of the Company, including any assets the Company may acquire to assist
in funding its obligations hereunder. The NMO’s status with respect to any
amount due NMO under this Plan from the Company shall be that of a general
creditor of the Company.

 

5.03 Severability.
Any provision of this Plan which shall prove to be invalid, void or illegal
shall in no way affect, impair or invalidate any other provision contained
herein, and such other provisions shall remain in full force and effect.

 

3

 

5.04 Binding Effect. This Plan shall be binding upon the parties
hereto, their heirs, assigns, successors, executors and administrators. None of
the payments provided for in this Plan, nor the Deferred Compensation Account,
shall be subject to seizure for payment of any debts or judgments against the
NMO or any beneficiary, nor shall the NMO or any beneficiary have any right to transfer,
modify, anticipate, assign or encumber any rights or benefits hereunder.

 

5.05 Governing Law.
This Plan shall be governed and interpreted in accordance with the laws of the
State of Iowa.

 

5.06 Amendment. This
Plan may be amended at any time by the Board effective upon written
notification to the Participants of any such amendments. No amendment shall
impair any Participant’s vested rights hereunder.

 

5.07 Adjustments.
Whenever a stock split, stock dividend or other similar change in capitalization
of the Company occurs, the Stock Credits of the NMO and the applicable rate of
distribution of such Stock Credits shall be appropriately adjusted to maintain
the NMO’s proportionate amount of Stock Credit in an amount and at a value
equivalent to that which would have been distributable prior to the applicable
change in capitalization.

 

5.08 Arbitration. If
any dispute or disagreement shall arise in connection with any interpretation
of this Plan, its performance or non-performance, or the figures and calculations
used, the parties shall make every effort to meet and settle their disputes in
good faith informally. If the parties cannot agree on a written settlement
within sixty days after it arises, or within a longer period agreed upon by the
parties, then the matter in controversy shall be settled by arbitration, in
accordance with the Commercial Rules of the American Arbitration
Association. If the parties cannot agree on an arbitrator within ten (10) days
after demand by either of them, either or both parties may request the American
Arbitration Association to name a panel of five (5) arbitrators. Company
shall then strike two (2) names on this list, the NMO shall then strike
two (2) names, and the remaining name shall be the arbitrator. The
decision of the arbitrator shall be final and binding upon the parties both as
to law and to fact, and shall not be appealed to any court in any jurisdiction.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The expense of the arbitrator shall be shared equally by
the parties, unless the arbitrator determines that the expense shall be
otherwise assessed. The place of arbitration shall be Des Moines, Iowa.

 

5.09 Board Interpretation.
The Board shall have full power and authority to interpret, construe, and
administer this Plan, and the Board’s interpretations and construction thereof,
and actions there under, shall be binding and conclusive on the parties. No
member of the Board shall be liable to any person for any action taken or
omitted in connection with the interpretation and administration of this Plan
unless attributable to the Board member’s own willful misconduct or lack of
good faith.

 

5.10 Entire Agreement.
This Plan represents the full and complete understanding of the parties with
respect to the subject matter hereof.

 

5.11 Right of Offset.
In the event that a Participant, or the NMO with which the Participant is
associated, owes any amount to the Company or any of its subsidiaries, or has
any other outstanding indebtedness or obligation to the Company or its
subsidiaries, then Company, in its sole discretion, may  (i) withhold any distribution of Stock
to Participant until such amount, indebtedness or obligation is satisfied in
full or (ii) apply as an offset the value of Participant’s 

 

4

 

Stock Credits and/or, the value of Participant’s
Stock, if distributable, against all or any part of such amount, indebtedness
or obligation. For purposes of the proceeding sentence, the Company in its sole
discretion shall determine the value of Stock Credits or Stock.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMERICAN EQUITY INVESTMENT
  LIFE

  
	
   

  	
   

  	
  HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  D.J.
  Noble, Chairman & President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Signature
  of Individual)

  

 

 

	
  SCHEDULE
  OF STOCK CREDIT

  PARTICIPATION

  
	
   

  
	
   

  	
   

  	
  Percentage of Total

  	
   

  	
   

  
	
  Participant’s Name

  	
   

  	
  Stock Credit

  	
   

  	
  Participant’s Beneficiary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total

  	
  100

  	
  %

  	
   

  	
   

  
								

 

5Exhibit 10.3

 

AMERICAN EQUITY INVESTMENT

2004 NMO DEFERRED STOCK COMPENSATION PLAN

 

WHEREAS,
the Board of Directors of American Equity Investment Life Holding Company (the “Company”) deems it in the best interest of the Company and
its subsidiary, American Equity Investment Life Insurance Company (“American Equity”), that certain agents and brokers who
solicit business on behalf of the Company and American Equity 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 believes that the Company can best obtain these and other benefits by
establishing a deferred stock compensation plan pursuant to which agents and brokers
meeting certain production goals can earn credits payable in Common Stock of
the Company;

 

NOW,
THEREFORE, the Board does hereby adopt this 2004 NMO Deferred
Stock Compensation Plan, subject to the terms and conditions hereinafter set
forth.

 

ARTICLE I

GENERAL

 

1.01        Purpose.   The American Equity Investment
2004 NMO Deferred Stock Compensation Plan (the “Plan”)
is intended to advance the interests of the Company and its agency force by
encouraging and enabling selected agents and brokers meeting certain production
goals to earn credits payable in Common Stock of the Company.

 

1.02        Definitions.

 

(a)           “Board”
means the Board of Directors of the Company.

 

(b)           “Common Stock” means shares of common
stock, $1 par value, of the Company.

 

(c)           “Deferred Stock Account” shall mean a
bookkeeping entry made by the Company on its books of account, which reflects
the value of the Stock Credits earned by each NMO hereunder. Each NMO shall
have a separate Deferred Stock Account.

 

(d)           “NMO” shall mean each agent or broker
who, at all times during the Qualification Period, has an agency agreement with
American Equity under which the agent or broker is classified as a National
Marketing Organization within American Equity’s hierarchy of agents.

 

(e)           “Participant” shall mean an NMO which
meets the eligibility requirements set forth in Article II below.

 

(f)            “Production” shall mean first year
annuity premiums on new annuity policies of American Equity produced by or
through an NMO, including (i) 100% of all annuity premiums collected on
all annuity policies other than the SPDA-6, Guarantee Plus 1 and 

 

1

 

Guarantee Plus 2, (ii) 20%
of first year annuity premiums collected on the SPDA-6 and  (iii) 40% of first year annuity premiums
collected on the Guarantee Plus 1 and Guarantee Plus 2.

 

(g)           “Qualification Period” shall mean the
12-month period beginning on January 1, 2004 and ending on December 31,
2004.

 

(h)           “Stock Credit” shall mean the right
to receive shares of Common Stock at the time specified for distribution
thereof in Article IV below. Stock Credits shall be distributed at the
rate of one share of Stock per each Stock Credit earned by a Participant under
this Plan. The value of the Stock Credit will be determined by the closing
price at December 31, 2004.

 

(i)            “Vesting Period” shall mean the
four-year period beginning January 1, 2005 and ending on December 31,
2008.

 

ARTICLE II

ELIGIBILITY

 

An NMO
shall be a Participant under this Plan if, and so long as, such NMO satisfies all
of the eligibility requirements set forth in this Article II:

 

2.01         Valid NMO Contract.    On
January 1, 2005, the NMO must have a valid NMO agency agreement with
American Equity under which no default or other event of termination has
occurred prior to that date.

 

2.02         Minimum Production.    During
the Qualification Period, the NMO must have Production of at least Twenty-Five
Million Dollars ($25,000,000).

 

ARTICLE III

AWARDS OF STOCK CREDITS

 

3.01         Stock Credits to Deferred
Stock Account.    A Participant shall receive Stock
Credits based upon the following formula:

 

	
  Stock Credits:

  	
   

  	
  Participant’s
  Production during the Qualification Period (as defined above)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Multiplied by
  appropriate basis points below

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Production of
  $25 million - $49.999 million = 25 basis points

  
	
   

  	
   

  	
  Production of
  $50 million - $74.999 million = 40 basis points

  
	
   

  	
   

  	
  Production of
  $75 million - $99.999 million = 60 basis points

  
	
   

  	
   

  	
  Production of
  $100 million - $124.999 million = 80 basis points

  
	
   

  	
   

  	
  Production of
  $125+ million = 100 basis points

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Multiplied by 60%

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Example: $50
  million earns 40 basis points on full $50 million, or $200,000. The Stock
  credit equals 60% of $200,000 or $120,000.

  

 

3.02         Initial Vesting.    A
Participant who satisfies the Minimum Production requirements set forth in Article II
above shall become vested in his Deferred Stock Account to the extent of

 

2

 

twenty-five percent (25%)
on January 1, 2005.

 

3.03         Vesting Period – Production
Requirements.    A Participant who has at least
Twenty-Five Million Dollars in new Production per calendar year within the
Vesting Period shall become vested in his Deferred Stock Account to the extent
of an additional twenty-five percent (25%) per year for up to three (3) years.

 

3.04         Automatic Vesting.   In
the event of the Participant’s death or disability within the Vesting Period,
the Participant automatically shall become One Hundred Percent (100%) vested in
Participant’s Deferred Stock Account. Disability shall be deemed to have
occurred upon the written certification of Participant’s physician that
Participant is and will be permanently and continuously disabled, either
mentally or physically, and, as a result, is unable to carry out Participant’s
duties as an NMO of American Equity.

 

3.05         Non-transferability.    No
Stock Credit shall be transferable or assignable by a Participant, otherwise
than by will or the laws of descent and distribution. No Stock Credit shall be
pledged or hypothecated in any way and no Stock Credit shall be subject to
execution, attachment or similar process.

 

ARTICLE IV

DISTRIBUTION

 

4.01         Distribution of Stock.    Within
ninety (90) days after the occurrence of the earlier of the following, the
Company will issue and distribute to Participant or Participant’s designated
beneficiary the number of shares of Common Stock equal to the quotient of the
vested portion of the Participant’s Deferred Stock Account divided by the value
per share of the Common Stock as of December 31, 2004.

 

(a)          As
determined by the Board of Directors;

 

(b)         The
expiration of five years after the end of the Vesting Period;

 

(c)          Participant’s
death or disability, as defined above.

 

4.02         Taxation.    Each
Participant and/or Participant’s heirs, executors or administrators shall be
responsible for payment of all taxes of any kind, whenever such taxes may be
imposed, on the value of the Common Stock to which Participant may become
entitled under this Plan.

 

ARTICLE V

MISCELLANEOUS

 

5.01         Independent Agency
Relationship.    Nothing in this Plan shall be
interpreted as changing the independent contractor status of the NMO as to NMO’s
relationship with the Company and American Equity nor shall this Plan be
interpreted as altering in any manner the contractual relationships the NMO has
entered into with the Company separate from this Plan, except as specifically
provided herein.

 

5.02         No Rights to Assets.
   Nothing in this Plan shall be interpreted as giving the NMO
any rights to any assets of the Company, including any assets the Company may
acquire to assist in funding its obligations hereunder. The NMO’s status with
respect to any amount due NMO under this Plan from the Company shall be that of
a general creditor of the Company.

 

3

 

5.03         Severability.    Any
provision of this Plan which shall prove to be invalid, void or illegal shall
in no way affect, impair or invalidate any other provision contained herein,
and such other provisions shall remain in full force and effect.

 

5.04         Binding Effect.
   This Plan shall be binding upon the parties hereto, their
heirs, assigns, successors, executors and administrators. None of the payments
provided for in this Plan, nor the Deferred Compensation Account, shall be
subject to seizure for payment of any debts or judgments against the NMO or any
beneficiary, nor shall the NMO or any beneficiary have any right to transfer,
modify, anticipate, assign or encumber any rights or benefits hereunder.

 

5.05         Governing Law.    This
Plan shall be governed and interpreted in accordance with the laws of the State
of Iowa.

 

5.06         Amendment.    This
Plan may be amended at any time by the Board effective upon written
notification to the Participants of any such amendments. No amendment shall
impair any Participant’s vested rights hereunder.

 

5.07         Adjustments.    Whenever
a stock split, stock dividend or other similar change in capitalization of the
Company occurs, the Stock Credits of the NMO and the applicable rate of
distribution of such Stock Credits shall be appropriately adjusted to maintain
the NMO’s proportionate amount of Stock Credit in an amount and at a value
equivalent to that which would have been distributable prior to the applicable
change in capitalization.

 

5.08         Right
of Offset.    In the event that a Participant, or the
NMO with which the Participant is associated, owes any amount to the Company or
any of its subsidiaries, or has any other outstanding indebtedness or
obligation to the Company or its subsidiaries, then Company, in its sole
discretion, may (i) withhold any distribution of Stock to Participant
until such amount, indebtedness or obligation is satisfied in full or (ii) apply
as an offset the value of Participant’s Stock Credits and/or, the value of
Participant’s Stock, if distributable, against all or any part of such amount,
indebtedness or obligation. For purposes of the proceeding sentence, the
Company in its sole discretion shall determine the value of Stock Credits or
Stock.

 

4

 

	
   

  	
   

  	
  AMERICAN EQUITY INVESTMENT
  LIFE

  
	
   

  	
   

  	
  HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  D.J.
  Noble, Chairman & President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Signature
  of Individual)

  

 

 

	
  SCHEDULE
  OF STOCK CREDIT

  PARTICIPATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Percentage of Total 

  	
   

  	
   

  
	
  Participant’s Name

  	
   

  	
  Stock Credit

  	
   

  	
  Participant’s Beneficiary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total 

  	
  100

  	
  %

  	
   

  
							

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]