Document:

Exhibit 10.8

 

AMERICAN EQUITY INVESTMENT

1999 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 1999 NMO Deferred Stock Compensation Plan, subject to the
terms and conditions hereinafter set forth.

 

ARTICLE I

GENERAL

 

1.01           Purpose. The American
Equity Investment 1999 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 the total amount of first year annuity premiums on new annuity policies of American
Equity produced by or through an NMO.

 

1

 

(g)           “Qualification
Period” shall mean the 12-month period beginning on January 1, 1999 and
ending on December 31, 1999.

 

(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 $22.00 in Stock Credits earned by a Participant under this Plan.

 

(i)            “Vesting Period”
shall mean the four-year period beginning January 1, 2000 and
ending on December 31, 2003.

 

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,
1999, 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 Total Production during the
Qualification Period

 

Multiplied by

 

One (1) basis point for every million dollars
of paid annuity premium produced during the qualification period. Minimum
premium is $25 million for 25 basis points and maximum is 50 basis points on
$50 million and above.

 

Example:  $25
million earns 25 basis points on full $25 million, $50 million earns 50 basis  points on full $50 million.

 

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, 2000.

 

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.

 

2

 

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 $22.00, which is the value per share of the Common Stock as of January 4,
1999.

 

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

 

(b)           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.

 

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. 

 

3

 

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.

 

 

	
   

  	
  AMERICAN EQUITY INVESTMENT

  LIFE HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
    D. J. Noble, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NMO:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
				

 

 

SCHEDULE OF
STOCK CREDIT

PARTICIPATION

 

	
   

  	
   

  	
   

  	
  Percentage of Total

  	
   

  	
   

  
	
  Participant’s Name

  	
   

  	
  Stock Credit

  	
   

  	
  Participant’s Beneficiary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total

  	
  100

  	
  %

  	
   

  
							

 

4Exhibit 10.9

 

AMERICAN EQUITY INVESTMENT

1998 NMO
DEFERRED STOCK COMPENSATION PLAN

For NMOs Recruiting
Noncaptive Agents

 

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 and recruiting goals can earn credits payable in Common Stock of the
Company;

 

NOW, THEREFORE,  the Board does hereby adopt this
1998 NMO Deferred Stock Compensation Plan, subject to the terms and conditions
hereinafter set forth.

 

ARTICLE I

GENERAL

 

1.01           Purpose.      The
American Equity Investment 1998 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 and recruiting 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. This Plan will apply only to those NMOs which
recruit independent agents who are not captive to the NMO.

 

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

 

(f)         “Production”
shall mean the total amount of first year annuity premiums on new annuity policies of American Equity
produced by or through an NMO.

 

1

 

(g)        “Qualification
Period” shall mean the 15-month period beginning on October 1, 1997 and
ending on December 31, 1998.

 

(h)        “Recruiting
Period” shall mean the twelve-month period beginning October 1, 1997 and
ending on September 30, 1998.

 

(i)         “Stock
Credits” 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 $12 in Stock
Credits earned by a Participant under this Plan.

 

(j)         “Vesting
Period” shall mean the four-year period beginning January 1, 1999 and
ending on December 31, 2002.

 

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
October 1, 1997, 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
Million Dollars ($20,000,000).

 

2.03           Minimum Recruiting.    During
the Recruiting Period, the NMO  must recruit at least One Hundred (100) newly appointed agents of
American Equity. A new agent shall be deemed to be “recruited” hereunder on the
date of appointment by American Equity. In determining whether an NMO has
satisfied this requirement, the total number of any agents of an NMO whose
agency appointments with American Equity are terminated for any reason during
the Recruiting Period shall be deducted from the total number of newly
recruited agents.

 

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 Total Production
  during the Qualification Period 

  
	
   

  	
   

  
	
   

  	
  Multiplied by

  
	
   

  	
   

  
	
   

  	
  Ten (10) basis points for
  every 100 new Agents recruited during the Recruiting Period up to a maximum
  of Fifty (50) basis points

  

 

3.02           Initial Vesting.    A
Participant who satisfies the Minimum Production and Minimum Recruiting
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,
1999.

 

2

 

3.03           Vesting Period – Production Requirements.    A Participant
who has at least Twenty 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, 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 $12,
which is the value per share of the Common Stock as of October 1, 1997:

 

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

(b)        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.

 

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.

 

 

	
   

  	
   

  	
  AMERICAN EQUITY INVESTMENT

  
	
   

  	
   

  	
  LIFE HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  D. J. Noble, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NMO:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

 

SCHEDULE OF
STOCK CREDIT

PARTICIPATION

 

	
   

  	
   

  	
   

  	
  Percentage of Total

  	
   

  	
   

  
	
  Participant’s Name

  	
   

  	
  Stock Credit

  	
   

  	
  Participant’s Beneficiary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total

  	
  100

  	
  %

  	
   

  
							

 

4

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