Document:

Exhibit 10.(i)

 

MANAGEMENT SERVICES AGREEMENT

 

This Management Services Agreement (“Agreement”) is dated August 31,
2008 by and between American Equity Investment Life Insurance Company, a life
insurance company domiciled in the State of Iowa (“AEL”) and Eagle Life
Insurance Company, a life insurance company domiciled in the State of Iowa (“Eagle”).

 

WHEREAS, Eagle is a wholly-owned subsidiary of AEL;

 

WHEREAS, each party acknowledges it is desirable that certain
management services be performed and certain equipment and facilities be
provided by AEL for Eagle;

 

WHEREAS, Subsidiary and Parent share certain personnel, resources and
facilities including office space and related costs, telephone systems, data
processing systems, et. al., (hereinafter referred to as the “Shared Resources”);

 

WHEREAS, Parent has agreed to bear 100% of the costs and expenses
associated with the Shared Resources as more particularly described below;

 

WHEREAS, Parent agrees to provide any books and records (upon request)
to the Iowa Insurance Division (“IID”) regarding this Expense Agreement;

 

NOW, THEREFORE, in consideration of the promises contained herein and
other good and continuing relationships between the parties hereto, it is
hereby agreed as follows:

 

FIRST:  AEL hereby agrees to
provide, and Eagle hereby accepts certain management services, equipment and
facilities as described in Exhibit A.

 

SECOND:  Eagle and AEL assure
that all charges for services and the use of the Shared Resources incurred
pursuant to this Agreement are in accordance with applicable legal requirements
and to the extent practicable reflect actual costs and are arrived at in a fair
and equitable manner.  In any event,
compensation is limited to actual costs without any profit factor.  AEL shall submit quarterly reports in a form
as mutually agreed upon by both parties covering all charges during the billing
period with the final payment being remitted by Eagle within fifteen (15) days
upon receipt of such quarterly reports. 
In the event that settlement for amounts due is not made in a timely
manner, interest will accrue on said amounts from the due date until paid at
the rate of .5% per month, compounded annually.

 

THIRD:  The Commissioner of
Insurance of the State of Iowa, or her representatives, shall, at all
reasonable times, be permitted access  to
all books and records of either party pertaining to services provided and
charges allocated or billed pursuant to the provisions of this Agreement.

 

 

FOURTH:  All records will be
maintained by AEL in accordance with applicable legal requirements.  However, Eagle shall own and have custody of
its general corporate accounts and records.

 

FIFTH:  All underwriting, claims
and investment accounting provided to Eagle hereunder are to be based upon the
written criteria, standards and guidelines of Eagle.  However, Eagle shall have the ultimate and
final authority over decisions and policies, to include but not be limited to
the acceptance, rejection or canceling of applications for policies, the
payment or non-payment of claims and the purchase and sale of securities.  Any insurance premiums that are collected by
AEL on behalf of Eagle shall be held in a fiduciary capacity and shall be paid
over/credited to Eagle’s premium account immediately following collection.  In addition, Eagle shall have ultimate
control and responsibility of the functions that it has delegated pursuant to
this Agreement.

 

SIXTH:  Any dispute or difference
arising with reference to the applicable interpretation or effect of this
Agreement or any part hereof between the parties, whether such dispute arises
before or after termination of this Agreement, shall be referred to a Board of
Arbitration (the “Board”) of two (2) arbitrators and an umpire.  The members of the Board shall be active or
retired disinterested officers of insurance or reinsurance companies.

 

One arbitrator shall be chosen by the party initiating the arbitration
and designated in the letter requesting arbitration.  The other party shall respond, within fifteen
(15) days, advising of its arbitrator. 
The umpire shall thereafter be chosen by the two (2) arbitrators.  In the event either party fails to designate
its arbitrator as indicated above, the other party is hereby authorized and
empowered to name the second arbitrator, and the party which failed to
designate its arbitrator shall be deemed to have waived its right to designate
an arbitrator and shall not be aggrieved thereby.  The two (2) arbitrators shall then have
thirty (30) days within which to choose an umpire.  If they are unable to do so, the umpire shall
be chosen by the manager of the American Arbitration Association who shall be a
person meeting the qualifications set for the above.

 

Each party shall submit its case to the Board within one (1) month
from the date of the appointment of the umpire, but this period of time may be
extended by unanimous written consent of the Board.

 

The sittings of the Board shall take place in Des Moines, Iowa unless
otherwise agreed in writing by the parties. 
The Board shall make its decision with regard to the custom and usage of
the insurance and reinsurance business. 
The Board is released from all judicial formalities and may abstain from
the strict rules of evidence.  The
written decision of a majority of the Board shall be rendered within sixty (60)
days following the termination of the Board’s hearings, unless the parties
consent to an extension.  Such majority
decision of the Board shall be final and binding upon the parties both as to
law and fact, and may not be appealed to any court of any jurisdiction.  Judgment may be entered upon the final
decision of the Board in any court of proper jurisdiction.

 

 

Each party involved in arbitration hereunder shall be responsible for
the fees and expenses of the arbitrator elected by or on its behalf, and the
parties shall bear the fees and expenses of the umpire as determined by the
Board.

 

SEVENTH:  The effectiveness of
this Agreement and any amendments hereto shall be conditioned upon the receipt
of all permits, authorizations, licenses, consents, orders or approvals,
declarations or filings, as the case may be, required for the implementation of
the management service arrangements contemplated herein or therein.

 

EIGHTH:  The term of this
Agreement shall be for a period of five (5) years, at which time it shall
be subject to renegotiation by the parties. 
At the end of such term, Eagle shall have the right to elect and
continue to receive data processing services and/or to continue to utilize data
processing facilities and related software up to one (1) year from the
date of such termination.  Application
software and all copies thereof developed by AEL for Eagle’s use and that
developed by Eagle and provided to AEL for Eagle’s exclusive use shall remain
the property of Eagle in perpetuity.

 

The parties acknowledge that pursuant to Section 521A.5(1)(c)(2) they
have notified the Insurance Commissioner for the State of Iowa of their
intention to enter into this Agreement and that the Agreement is subject to her
review and non-disapproval.  The parties
further acknowledge that any amendment or modification to this agreement may
also be subject to review and/or non-disapproval of any other state insurance
department, in accordance with existing law, including the Iowa Insurance
Division pursuant to Section 521A.5 of the Iowa Code.

 

NINETH:  All notices, requests,
demands, approvals and other communications transmitted by a party hereto in
connection with this Agreement shall be in writing and shall be delivered
personally, telegraphed, telexed, sent by facsimile transmission or sent by
certified, registered or express mail, postage prepaid.  Any such notice or other communication shall
be deemed given:  (a) upon actual
delivery if presented personally or sent by prepaid telegram or telex or by
facsimile transmission and (b) three (3) business days following
deposit in the U.S. mail, if sent by certified, registered or express mail,
postage prepaid, in each case to the following addresses:

 

If to AEL:

American Equity Investment Life Insurance Company

Attn:  Debra J. Richardson,
Senior Vice President

5000 Westown Parkway

West Des Moines, Iowa 50266

 

If to Eagle:

Eagle Life Insurance Company

Attn:  Wendy L. Carlson, General
Counsel

5000 Westown Parkway

West Des Moines, Iowa 50266

 

 

TENTH:  This Agreement may be
terminated by any party hereto by thirty (30) days prior written notice to the
other party.  However, Eagle shall have
the right to elect and continue to receive data processing services and/or to
continue to utilize data processing facilities and related software up to one (1) year
from the date of such notice.  In any
event, Eagle retains the right to terminate this Agreement in the event that
AEL does not perform satisfactorily.

 

ELEVENTH:  This Agreement may not
be modified nor amended except expressly by an instrument signed by the parties
hereto.  No failure or delay of a party
in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  No waiver by a party of
any provision of this Agreement or consent to any departure therefrom shall in
any event be effective unless the same shall be in writing and signed by such
party, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
This Agreement shall not be assigned by either party.

 

TWELFTH:  Any term or provision
of this Agreement which is invalid or unenforceable in any jurisdiction shall,
as to that jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other
jurisdiction.  If any provision of this
Agreement is so broad as to be unenforceable, that provision shall be
interpreted to be only as broad as is enforceable.

 

THIRTEENTH:  This Agreement shall
be governed and construed in accordance with the laws of the State of Iowa.

 

IN WITNESS WHEREROF, this Agreement is hereby executed by duly
authorized officers of the parties hereto as of the date first above written.

 

AMERICAN EQUITY INVESTMENT

LIFE INSURANCE COMPANY

 

 

	
  By:

  	
  /s/ Wendy J. Carlson

  	
   

  
	
   

  	
  Title CEO & President

  	
   

  

 

Attest:

 

EAGLE LIFE INSURANCE COMPANY

 

 

	
  By:

  	
  /s/ James M. Gerlach

  	
   

  
	
   

  	
  Title Senior Vice President

  	
   

  

 

Attest:

 

 

EXHIBIT A

MANAGEMENT SERVICES AGREEMENT

 

1.  Agent Licensing &
Commissions

 

a.                                                                   Employees
of AEL will review agent’s applications and perform background screening of
applicants.  Based upon such review and
screening, employees of AEL will recommend approval of agents for Eagle.  Agent’s contracts shall be executed on behalf
of Eagle only by authorized officers of Eagle.

 

b.                                                                  Employees
of AEL will prepare and send commission checks to agents of Eagle, or will
arrange for electronic fund transfer of commissions.  Such payments will be made only from funds of
Eagle, and checks or transfer authorizations will be signed only by designated
officers of Eagle.

 

c.                                                                   Compliance
with any state laws or regulations with respect to limitations on payments to
agents will be monitored by the Compliance Officer for AEL.

 

2.  Actuarial

 

a.                                                                   Actuaries
of AEL will perform all actuarial testing and analysis necessary with respect
to the products of Eagle.

 

b.                                                                  Actuaries
of AEL will perform all actuarial testing and analysis necessary with respect
to reserves, asset liability matching, amortization of deferred acquisition
costs and other financial issues.

 

c.                                                                   Only
actuaries who are officers of Eagle will provide certifications required by
applicable law or regulation with respect to the business of Eagle.

 

3.  Product Issuance and New
Business

 

a.                                                                   Employees
of AEL will review applications for policies and administer the issuance of
policies for approved applications.  Such
applications will clearly identify Eagle.

 

 

b.                                                                  Employees
of AEL will review all requests for transfers of funds to or from Eagle in
connection with any replacement transaction and comply with applicable law or
regulation with respect to such transactions.

 

c.                                                                   Employees
of AEL will process all premium payments received with respect to Eagle
products, which will be transferred into a bank account owned by Eagle, at
Eagle’s direction.

 

d.                                                                  AEL
will create, maintain and administer all policy forms and other related forms
and supplies necessary in connection with the issuance of policies by Eagle.

 

e.                                                                   AEL
employees will provide support to agents and policyholders in connection with
Eagle pending and new business.

 

4.  In-force Policy Service

 

a.                                                                   Employees
of AEL will respond to requests and inquiries by agents and policyholders of
Eagle in connection with existing business.

 

b.                                                                  Employees
of AEL will provide inforce illustrations for Eagle agents and policyholders as
requested.

 

c.                                                                   Employees
of AEL will administer all in-force business for Eagle, including maintenance
of all policy records and issuance of annual statements to policyholders

 

d.                                                                  Employees
of AEL will facilitate policy withdrawals, transfers, surrenders and death
claim benefits on Eagle policies. 
Payments with respect to the same shall be authorized only by specified
officers of Eagle.

 

5.  Accounting and Financial

 

a.                                                                   Officers
of AEL will select and retain the independent auditors for Eagle.  Engagement letters for such auditors shall be
executed only by officers of Eagle.

 

b.                                                                  Accounting
entries and bookkeeping for Eagle will be made by employees of AEL, who will
ensure that all books and records of Eagle are made available to Eagle.

 

c.                                                                   Only
officers of Eagle will have the ability to access the depository accounts of
Eagle at banks or other financial institutions.

 

 

6.  Compliance and Market Conduct

 

a.                                                                   Employees
of AEL will review all policy forms, marketing materials and advertising used
in connection with the products of Eagle. 
Such employees will require any and all modifications of policy forms,
marketing materials and advertising which may be necessary to comply with the
laws and regulations of a state or states, including the insurance department
of any such state.

 

b.                                                                  The
establishment of corporate policies with respect to compliance issues will be
authorized solely by officers of Eagle.

 

c.                                                                   Employees
of AEL will conduct all market conduct reviews and suitability analyses
necessary with respect to sales practices and policy issuance.

 

d.                                                                  Employees
of AEL will prepare all documentation necessary to obtain membership in IMSA
for Eagle.

 

7.  General Services and Shared
Resources

 

a.                                                                   AEL
will provide all supplies, postage and mail services required in connection
with the administrative activities of Eagle.

 

b.                                                                  AEL
will arrange for and provide all technology equipment and services required in
connection with the administrative activities of Eagle.

 

c.                                                                   Employees
of AEL will assist employees of Eagle in recruiting agents, marketing
organizations, and independent registered representatives of broker/dealers.

 

d.                                                                  Employees
of AEL will assist employees of Eagle in managing relationships with agents,
marketing organizations and independent registered representatives of
broker/dealers.

 

e.                                                                   Employees
of AEL will prepare marketing materials for products of Eagle.

 

f.                                                                     Employees
of AEL will prepare (i) print advertisements for products of Eagle which
will appear in publications directed to agents and (ii) mailings to agents
regarding the business of Eagle.

 

g.                                                                  AEL
shall provide to Eagle the use of personnel, resources and facilities including
office space within AEL offices located at 5000 Westown Parkway, West Des
Moines, Iowa, 50266) and all related utilities, all phone lines and numbers
utilized within the office space, data processing, communication and computer
systems utilized within the office space, all management personnel (including
without limitation compensation, payroll taxes and employee benefit plans, and
receptionist and clerical

 

 

staff (including without limitation compensation, payroll taxes and
employee benefit plans.Exhibit 10.(ii)

 

NET WORTH MAINTENANCE AGREEMENT

 

THIS NET WORTH MAINTENANCE AGREEMENT (“Agreement”) is made and entered
into as of the 1st day of June, 2009 (the “Effective Date”) by
and between American Equity Investment Life Insurance Company (“Parent”) and
Eagle Life Insurance Company (“Beneficiary”).

 

WITNESSETH:

 

WHEREAS, Parent directly owns 100% of the issued and outstanding common
stock of Beneficiary; and

 

WHEREAS, Beneficiary is a company with operations that are distinct and
separate from those of Parent but its operations are integral to Parent’s
strategic direction; and

 

WHEREAS, Parent and Beneficiary recognize the importance in a
competitive insurance industry of obtaining the highest possible ratings for
financial strength; and

 

WHEREAS, Parent and Beneficiary desire to take certain actions to
enhance and maintain the financial strength of Beneficiary;

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.             Capital and
Surplus.  Parent agrees that it shall
cause Beneficiary to have at all times during the term of this Agreement the
greater of:

 

(a)    A capital and surplus of $5
million; or

 

(b)   The amount of capital and
surplus as shall be necessary to maintain a Risk Based Capital ratio based upon
Company action level of at least 300% on an on-going basis.

 

2.             Liquidity.  During the term of this Agreement, Parent shall
cause Beneficiary to have the liquidity necessary to enable it to meet its
current obligations on a timely basis; provided, however,
that such liquidity shall be provided in accordance with, and only to the
extent permitted by, applicable law.

 

3.             Waivers.  Parent hereby waives any failure or delay on
the part of Beneficiary in asserting or enforcing any of its rights or in
making any claims or demands hereunder.

 

4.             Term and
Termination.  Unless earlier
terminated in accordance with this Paragraph 4, this Agreement shall continue
indefinitely.  Parent shall have the

 

Net Worth Maintenance Agreement

American Equity Investment Life
Insurance Company

Eagle Life Insurance Company

 

1

 

absolute right to terminate this Agreement
upon thirty (30) days prior written notice to Beneficiary; provided,
however, that Parent agrees not to terminate this Agreement unless
Beneficiary attains a stand-alone rating from Standard and Poor’s or A.M.
Best, without giving weight to the support of this Agreement, that is within
one notch of its rating from such agency with such support, or Parent sells
Beneficiary or Beneficiary’s entire block of business to an acquirer (i) having
a rating from Standard and Poor’s or A.M. Best that is at least equal to
the lower of (a) Parent’s then current rating from such agency or (b) Beneficiary’s
then current rating as supported by this Agreement from such agency; or (ii) such
that, after giving effect to the sale, Beneficiary attains a rating from
Standard and Poor’s or A.M. Best that is within one notch of its then
current rating from such agency as supported by this Agreement.  Notwithstanding the foregoing, this Agreement
will terminate automatically upon the closing of a sale of Beneficiary by
Parent and all provisions hereof will be of no further force and effect.

 

5.             Right to Enforce.  Any creditor of Beneficiary (including, but
not limited to, its employees, policyholders and trade creditors) shall have
the right to enforce the provisions of this Agreement through the state
insurance regulator of such creditor’s state of residence if Beneficiary
defaults on any claim or other payment owed to such creditor when due, and such
insurance regulator may, at the request of such creditor made in accordance
with and subject to the conditions of the Agreement, proceed directly against
Parent to enforce the provisions of this Agreement during its term; provided, however, that no creditor of Beneficiary may take
any action authorized under this Paragraph 5 unless and until (a) such
creditor has given Parent written notice of its intent to enforce the terms of
this Agreement as provided in this Paragraph 5, which notice shall specify in
reasonable detail the nature of and basis for the creditor’s complaint and (b) Parent
has failed to comply with this Agreement within sixty (60) days after such
notice is given.

 

6.             Not a Guarantee.  This Agreement is not, and nothing herein
contained and nothing done pursuant hereto by Parent shall constitute or be
construed or deemed to constitute, an evidence of indebtedness or an obligation
or liability of parent as guarantor, endorser, surety or otherwise in respect
of any obligation, indebtedness or liability, of any kind whatsoever, of
Beneficiary.  This Agreement does not
provide, and is not intended to be construed or deemed to provide, any creditor
of Beneficiary with recourse to or against any of the assets of Parent.

 

7.             Applicable Law and
Forum.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Iowa
without giving effect to the principles of conflicts of laws.

 

8.             Assignment.  This Agreement shall be binding upon and
enforceable against successors and permitted assigns.  Neither party hereto shall assign this
Agreement or any rights or obligations hereunder, and no other person or entity
entitled to take any action under this Agreement shall assign the right to take
such

 

2

 

action, without the prior written consent of
the parties hereto (other than the party proposing to make such assignment),
and any such attempted assignment without prior written consent shall be void
and of no force or effect.

 

9.             Communications.  All notices, requests, demands and other
communications under this Agreement (whether from Parent, Beneficiary, or any
other person or entity) shall be in writing and shall be deemed to have been
duly given: (a) on the date of service if served personally on the party
to which such notice is to be given; (b) on the date of transmission if
sent via facsimile transmission to the facsimile number given below, and
telephonic confirmation of transmission is obtained promptly after completion
of transmission; (c) on the business day after delivery to Federal Express
or similar overnight carrier or the Express Mail Service maintained by the
United States Postal Service; or (d) on the fifth calendar day after
mailing, if mailed to the party to which such notice is to be given, by first
class mail, registered or certified, postage prepaid and properly addressed, to
the party as follows:

 

If to Parent to:

 

American Equity Investment Life Insurance Company

Attn:  Ted Johnson

5000 Westown Parkway

West Des Moines, Iowa 50266

Facsimile:  515-440-2715

 

If to Beneficiary:

 

Eagle Life Insurance Company

Attn:  Marla Lacey

5000 Westown Parkway

West Des Moines, Iowa 50266

Facsimile:  515-221-9989

 

Any party hereto may change its address or facsimile number for the
purpose of  this
Paragraph 9 by giving the other party notice of its new address in the manner set
forth above.

 

10.           Publicity.  No party hereto may, directly or indirectly,
disclose the existence of this Agreement or the terms hereof, other than to any
regulatory agency or rating agency, except with the permission of the other
party hereto and then only as permitted by law. 
Beneficiary may make such disclosures as are required by federal or
state securities laws, without prior notice to, or consent of Parent.

 

11.           Severability.  If any provision of this Agreement shall be
declared null, void or unenforceable in whole or in part by any court,
arbitrator or governmental agency, said provision shall survive to the extent
it is not so declared and all the other

 

3

 

provisions of this Agreement shall remain in
full force and effect unless, in each case, such declaration shall serve to
deprive any of the parties hereto of the fundamental benefits of or rights
under this Agreement.

 

12.           Entire Agreement.  This Agreement constitutes the entire
Agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior and contemporaneous agreements, understandings,
negotiations and discussions, whether oral or written, of the parties.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be executed by their
respective duly authorized representatives as of the day and year first above
written.

 

	
  AMERICAN EQUITY INVESTMENT

  	
   

  	
  EAGLE LIFE INSURANCE

  
	
  LIFE INSURANCE COMPANY

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John M. Matovina

  	
   

  	
  By:

  	
  /s/ James M. Gerlach

  
	
  Title:

  	
  EVP & CFO

  	
   

  	
  Title:

  	
  EVP

  

 

4

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