Document:

EX-10.1

Summary of Jones Soda Co. 2009 Bonus Plan For Executive Officers

Applicability; Effective Date. The 2009 bonus plan (the “2009 Bonus Plan”) applies to Joth Ricci
(the Chief Operating Officer of Jones Soda Co. (the “Company”) until May 1, 2009, and thereafter
its President and Chief Executive Officer) and Michael O’Brien (the Company’s Chief Financial
Officer) and is effective for the fiscal year 2009 performance period.

Components. There are two components to the 2009 Bonus Plan:

	•	 	An objective component based on achievement of key performance indicators relating to the
Company’s operating plan (“KPIs”) that accounts for 75% of the possible bonus at target, and

	•	 	A subjective component, payable at the sole discretion of the Company’s Compensation and
Governance Committee (the “Committee”) based upon such factors as the Committee deems
appropriate with respect to each executive officer, that accounts for 25% of the possible
bonus at target.

Objective Component Bonus Payouts—Achievement of Key Performance Indicators. Depending on the
level of achievement for each KPI, executives may receive between 0% and 100% of the target amount
allocated to achievement of each KPI, as follows:

	•	 	Higher than 8% variance from target yields 0% of the bonus payment assigned to the
applicable KPI

	•	 	6-8% variance from target yields 20% of the bonus payout assigned to the applicable KPI

	•	 	4-5.99% variance from target yields 40% of the bonus payout assigned to the applicable KPI

	•	 	2-3.99% variance from target yields 60% of the bonus payout assigned to the applicable KPI

	•	 	0.01-1.99% variance from target yields 80% of the bonus payout assigned to the applicable
KPI

	•	 	0% variance from target (or performance better than target by any amount) yields 100% of
the bonus payout assigned to the applicable KPI

The fiscal year 2009 KPIs establish targets in each of the following areas, and each area is
weighted as provided below:

	 	 	 	 	 
	Area	 	Weight
	Cash balance at fiscal year end

	 	 	25	%
	Net income (loss)

	 	 	15	%
	Operating expenses

	 	 	10	%
	Average inventory on hand

	 	 	10	%
	Four brand development goals

	 	10% (each individual goal is weighted at 2.5%)

	Annual gross margin

	 	 	5	%

Target Bonus. Each executive’s target bonus under the 2009 Bonus Plan is set at 40% of the bonus
potential contemplated in that executive’s employment agreement, so that Mr. Ricci’s target bonus
is 40% of his annual base salary and Mr. O’Brien’s target bonus is 14% of his annual base salary.

Administration. In all cases, payout will be made only if the executive is continuously employed
through December 31, 2009, subject to the Committee’s sole discretion to determine whether any
portion of the bonus will be paid in the event of an executive’s termination of service prior to
that date.

The Committee, in its sole discretion, may (a) eliminate, increase or reduce the bonus payable to
any executive above or below that which otherwise would be payable under the payout formula,
including the reduction or elimination of payouts based on the achievement of KPIs and (b) modify
or terminate the 2009 Bonus Plan at any time.

Payment of bonuses, if any, under the 2009 Bonus Plan shall be made as soon as practicable after
December 31, 2009, but shall be paid no later than March 15, 2010. Each bonus shall be paid in cash
in a single lump sum, subject to payroll taxes and tax withholding.

Each bonus that may become payable under the 2009 Bonus Plan shall be paid solely from the general
assets of the Company. Nothing in the 2009 Bonus Plan should be construed to create a trust or to
establish or evidence any executive’s claim of any right to payment of a bonus other than as an
unsecured general creditor with respect to any payment to which an executive may be entitled.Exhibit 10.57

Exhibit 10.57

April 9, 2009

James Unger

			
	Re:	 	James J. Unger Stock Appreciation Rights

Reference is made to the 2005 Equity Incentive Plan, as amended (the “Plan”) and the
following Stock Appreciation Rights Agreements issued thereunder by and between American
Railcar Industries, Inc. (the “Company”) and James J. Unger, such Stock Appreciation
Rights Agreement to be collectively referred to herein as the “SARs”:

	 	•	 	Stock Appreciation Rights Agreement dated April 4, 2007 granting 50,000
stock appreciation rights; and

	 	•	 	Stock Appreciation Rights Agreement dated April 28, 2008, granting 50,000
stock appreciation rights.

As previously announced by the Company, effective April 1, 2009, Mr. Unger has
resigned as President and Chief Executive Officer of the Company, and has continued to
serve as a consultant to the Company at the discretion of the Company’s Board of
Directors, and as a director. Pursuant to the terms of the SARs, the SARs would cease to
vest and the vested SAR’s would expire within 90 days of his termination of employment
with the Company. In consideration of Mr. Unger’s continued service with the Company as a
consultant, the Company hereby agrees to modify each of the SARs, effective as of April 1,
2009, to provide that Mr. Unger shall be deemed to be employed by the Company for so long
as he continuously serves as a consultant to the Company, which shall be determined
without regard to Mr. Unger’s service as a director.

Except as expressly provided herein, Mr. Unger’s SARs shall continue in accordance
with all other terms and conditions set forth therein and in the Plan, including, without
limitation, any other vesting conditions set forth therein. Without limiting the
foregoing, Mr. Unger further acknowledges and agrees that nothing herein shall require the
Company to continue to retain Mr. Unger as a consultant.

 

 

 

Please indicate your acceptance of the foregoing, by executing a counterpart of this
letter in the space provided below. This letter agreement may be executed in counterparts
and shall be of no force and effect unless and until so executed by you.

	 	 	 	 	 
	 	AMERICAN RAILCAR INDUSTRIES, INC.

 	 
	 	By:  	/s/ James Cowan
 	 
	 	 	Name:  	James Cowan 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Agreed to and accepted by:

	 	 	 
	/s/ James J. Unger

	 	 
	 
	 	 
	James J. UngerExhibit 4.1

Exhibit 4.1

	American National Insurance Company Common Stock
This Certifies that
is the owner of $1.00 par value See Reverse For Certain Definitions
CUSIP 028591 10 5
(INCORPORATED UNDER THE LAWS OF THE STATE OF TEXAS)
FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK OF
AMERICAN NATIONAL INSURANCE COMPANY

 

 

NO HOLDER OF ANY OF THE SHARES OF ANY CLASS OF THE CORPORATION, WHETHER NOW OR HEREAFTER
AUTHORIZED AND ISSUED, SHALL BE ENTITLED AS A MATTER OF RIGHT TO PURCHASE OR SUBSCRIBE FOR (1)
ANY UNISSUED SHARES OF STOCK OF ANY CLASS OR (2) ANY ADDITIONAL SHARES OF ANY CLASS, COMMON OR
PREFERRED, AUTHORIZED TO BE ISSUED, OR (3) ANY BONDS, CERTIFICATES OF INDEBTEDNESS, DEBENTURES,
OR OTHER SECURITIES CONVERTIBLE INTO STOCK OF THE CORPORATION, OR CARRING ANY RIGHT TO PURCHASE
STOCK OF ANY CLASS, BUT ANY SUCH UNISSUED STOCK OR SUCH ADDITIONAL AUTHORIZED ISSUE OF ANY STOCK
OR OF OTHER SECURITIES CONVERTIBLE INTO STOCK, OR CARRYING ANY RIGHT TO PURCHASE STOCK, MAY BE
ISSUED AND DISPOSED OF PURSUANT TO RESOLUTION OF THE BOARD OF DIRECTORS OF THE CORPORATION TO
SUCH PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS AND UPON SUCH TERMS AS MAY BE DEEMED ADVISABLE
BY SUCH BOARD OF DIRECTORS IN THE EXERCISE OF ITS DISCRETION.

The following abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 	 	 	 	 
	TEN COM  	— 	as tenants in common	 	UNIF GIFT MIN ACT —	 	                     Custodian                     
	TEN ENT  
	— 	 as tenants by the entireties	 	 	 	(Cust)     	 	     (Minor)
	JT TEN  	— 	 as joint tenants with right of survivorship and not as tenants in common	 	 	 	Under Uniform Gifts to Minors 
Act                  
                
                
	 	 	 	 	 	(State)

	 	 	 	UNIF TRF MIN ACT —	 	            
Custodian (until age                 )
	 
	 	 	 	 	 	  (Cust)	 	 
	 	 	 	 	 	 	               under Uniform Transfers
	 
	 	 	 	 	 	 (Minor)	 	 
	 	 	 	 	 	 	to Minors Act                                 
	 	 	 	 	 	 	           
           (State)

Additional abbreviations may also be used though not in the above list.

FOR VALUE RECEIVED,                      hereby sell, assign and transfer unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFYING NUMBER OF ASSIGNEE

	 	 
	
 

	 	 

 
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

 

 

  Shares
of the common stock represented by the within Certificate, and do hereby irrevocably constitute and
appoint

  Attorney to transfer the said stock on the books of the within named Corporation with full power of
substitution in the premises.

Dated                                   

	 	 	 	 	 	 	 
	 

	 	X	 	 	 	 
	 

	 	 	 	 

	 
	 

	 

	 	X	 	 	 	 
	 

	 	 	 	 

	 
	 

	 

	 	NOTICE:
	 	THE SIGNATURE(S) TO THIS ASSIGNMENT MUST
CORRESPOND WITH THE NAME(S) AS WRITTEN UPON
THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER.

Signature(s) Guaranteed

	 	 	 	 	 
	By
	 	 	 	 
	 

	 	 

	 	 
	THE SIGNATURE(S) MUST BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED
SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT
TO S.E.C. RULE 17Ad-15.Exhibit 10.1

Exhibit 10.1

ADMINISTRATIVE SERVICES AGREEMENT

THIS ADMINISTRATIVE SERVICES AGREEMENT (“Agreement”) is entered into and effective on the
17th day of October, 2007 (the “Effective Date”), by and between American National
Insurance Company, hereinafter referred to as “American National,” an insurance company organized
under the laws of the State of Texas, and Transaction Applications Group, Inc., hereinafter
referred to as “TAG,” a Nebraska corporation, with reference to the following facts:

WHEREAS, TAG administers life and health insurance policies and annuity contracts as a third party
administrator;

WHEREAS, Legacy Marketing Group, Inc. (“LMG”) previously provided third party administration
services for American National under an Administrative Services Agreement between such parties
dated February 15, 2003 (the “LMG Agreement”),

WHEREAS, American National and LMG desire to have TAG provide services to American National with
respect to this business that were previously provided under the LMG Agreement and TAG is willing
to provide such services, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals and mutual promises hereinafter
contained and other good and valuable consideration, TAG and American National hereto do agree as
follows:

 1. SERVICES

From and after the date of this Agreement, TAG agrees to perform certain American National
accounting and contract service functions. Such accounting and contract service functions shall
consist of the activities described in APPENDIX C but only for the policies recited in APPENDIX A,
and policies added by formal amendment. Consideration for such accounting and service functions is
set forth in APPENDIX B. The term “Policies,” as used throughout this Agreement, shall be deemed to
encompass all policies, certificates and contracts issued by TAG on behalf of American National.
Furthermore, the term “Policyholder,” as used throughout this Agreement, shall be deemed to
encompass all contract owners, including policyholders and certificate holders for the policies
described above. TAG shall perform the services in accordance with the service levels described in
APPENDIX E beginning on the dates specified therein.

2. QUALITY AND LIMITATION OF SERVICES

2.1 All services to be provided by TAG under this Agreement shall be performed in a professional
manner consistent with industry standards and in accordance with all applicable laws and
regulations. With respect to Services described in Section 1 above, TAG’s performance of those
activities shall be consistent with its normal and customary business practices.

2.2 TAG may rely on instructions of any person indicated on American National’s
"Schedule of Authorized Personnel” attached hereto as APPENDIX D. Each of such persons
is authorized to give instructions under this Section with respect to any matter arising in
connection with this Agreement.

 

 

 

3. TERM, TERMINATION, ASSIGNMENT AND MODIFICATION OR AMENDMENT

3.1 Subject to termination as hereinafter provided, this Agreement shall remain in force and effect
for a period of seventy-eight (78) months from the Effective Date. This Agreement shall be
automatically renewed for an additional term of sixty (60) months and, thereafter, for successive
terms of one (l) year unless terminated by either party as provided herein.

3.2 The termination of this Agreement is governed by the following provisions:

	 	(a)	 	American National or TAG may terminate this Agreement or any renewal thereof,
without cause, upon twelve (12) months prior written notice to the other signed by
authorized personnel, as provided in APPENDIX E provided no such termination shall be
effective before the second anniversary of the Effective Date. If American National
terminates under this Section 3.2(a), American National shall pay TAG the applicable
termination charge specified in APPENDIX B on or before the effective date of such
termination. For clarity, the termination charge is payable only if American National
terminates under this Section 3.2(a).

	 	(b)	 	This Agreement may be terminated by mutual agreement of TAG or American
National at any time. Such termination shall be signed by authorized personnel of both
parties, as shown in APPENDIX D.

	 	(c)	 	If either American National or TAG shall materially breach this Agreement or be
materially in default in the performance of its duties and obligations hereunder (such
party, the “defaulting party”), the other party shall give written notice thereof, as
signed by authorized personnel, as provided in APPENDIX D, to the defaulting party. If
such default or breach is not cured within ninety (90) days after such written notice
is given, then the party giving such written notice may terminate this Agreement with
thirty (30) days notice of such termination to the defaulting party.

	 	(d)	 	At least one hundred and eighty (180) days prior to the end of the sixty (60)
month renewal term or any subsequent one year renewal term hereof, TAG shall give
American National written notice if TAG desires to increase its fees or charges to
American National or to change the manner of payment or to change any of the other
terms and conditions of this Agreement. American National must respond to such request
in writing within sixty (60) days of receipt. If TAG and American National do not agree
to such changed fees and charges, the manner of payment and/or the other proposed
changes at least ninety (90) days before the end of the term during which such notice
is given by TAG, and if TAG does not withdraw the proposed changes, this Agreement
shall terminate at the end of the then-current term.

	 	(e)	 	Reserved.

	 	(f)	 	If TAG elects to terminate this Agreement for other than non-payment of fees
and charges and if American National shall so request in writing, TAG shall continue to
provide the services described herein to American National for a period of up to twelve
(12) months following such termination, such service to be provided in accordance with
the terms of this Agreement and at the fees in effect at that time, as set forth in
APPENDIX B. American National’s request shall be delivered at least ninety (90) days
prior to the end of the term and shall specify the services to be provided.

 

2

 

	 	(g)	 	Termination of this Agreement by default or breach by American National shall
not constitute a waiver of any rights of TAG; termination of this Agreement by default
or breach by TAG shall not constitute a waiver by American National of any other rights
it might have under this Agreement.

	 	(h)	 	In the event that this Agreement is terminated for any reason, TAG agrees that,
in order to assist in providing uninterrupted service to American National, TAG shall
offer all necessary information requested by American National’s employees or agents
that will assist said employees or agents in effectuating a flat file conversion of the
records of American National from the existing LMG system, or TAG System (as defined in
Section 7.18) when applicable, to whatever service or system is selected by American
National, subject to reimbursement to TAG for such assistance at the fees in effect at
that time, as set forth in APPENDIX B. Such necessary information shall include, but
not be limited to, providing physical and/or electronic “look only” access to a neutral
file, in a format to be agreed to by the parties. TAG will provide the file layout and
field definitions to support the neutral file and the TAG conversion team will be made
available to answer questions related to field definitions and data to be provided in
the neutral file. The neutral file will contain the following data elements:

	 	i.	 	Individual policy record for each active policy
administered on the TAG System.

	 	ii.	 	Individual policy record for each inactive policy
administered on the TAG System.

	 	iii.	 	Individual record for each active and inactive
rider record administered on the TAG System.

	 	iv.	 	Financial history including, but not limited to,
premium and deposit history, coi history, loan history, withdrawal
history, cost basis information, lapse history, surrender history,
maturity history, claim history, and 1099 information.

	 	v.	 	Non-financial history including, but not limited
to, address, assignment, beneficiary, face changes, policy information
obtained from new business applications.

	 	vi.	 	Agent name and address records, agent status, agent
payment information, agent contract and hierarchy information, and
commission history by agent.

	 
	 	vii.	 	Interest rate history.

	 	viii.	 	Product and plan file information, including
actuarial formulas.

	 	ix.	 	Policy pages, include all state specials for all
products supported by TAG.

	 	x.	 	Policy/Contract application files and related
correspondence (pdf or tiff files from imaging system along with index
for each image). All paper records, not destroyed according to record
retention guidelines, will be returned to American National.

	 	xi.	 	Copies, including variables and specifications, for
all correspondence and statements set up to support administration for
American National Policyholders
administered by TAG.

 

3

 

As used herein, the term “Product” includes all related riders and benefits.

	 	(i)	 	TAG and American National shall provide fifteen (15) days’ written notice of
termination or cancellation of the Agreement to the appropriate Departments of
Insurance. American National shall fulfill any lawful obligations with respect to
policies affected by the written agreement, regardless of any dispute between TAG and
American National.

	 	(j)	 	After the Conversion Date, upon American National’s request, TAG and LMG shall
execute a source code escrow agreement in substantially the form of
APPENDIX F.
Pursuant to such agreement, TAG shall deposit the source code for the TAG Software (as
defined in Section 7.18) owned by TAG with the escrow agent, which shall release such
code to American National as and when specified in the agreement.

3.3 Neither party may assign or delegate all or any part of its rights and/or duties under this
Agreement without the written consent of the other party signed by authorized personnel as shown in
APPENDIX D.

3.4 This Agreement may be modified or amended at any time by mutual agreement of TAG and American
National, provided the modifications or amendments are in writing and signed by authorized
personnel, as provided in APPENDIX D.

4. INSPECTIONS OF RECORDS AND RECORDS MAINTENANCE

4.1 This Agreement shall be retained as part of the official record of both TAG and American
National for the duration of the Agreement and for seven (7) years after the termination of this
Agreement.

4.2 TAG will maintain complete books and records of all transactions between TAG and American
National. TAG will preserve detailed and adequate books and records of all administered
transactions among TAG, American National and contract owners, sufficient to permit the insurer to
fulfill all of its contractual obligations to contract owners. These books and records shall be
maintained in accordance with prudent standards generally accepted in business insurance record
keeping. The documentation will contain all pertinent documents in sufficient detail to maintain
complete dates, events, and persons participating in those insurance events. The books and records
shall be maintained throughout the agreement and for a minimum period of ten (10) years after the
completion of the entire the transaction to which they respectively relate.

4.3 American National shall own the records generated by TAG pertaining to American National’s
business and the administered transaction; however, TAG shall retain the right to continuing access
to records to permit TAG to fulfill all of its contractual obligations. All such records are
proprietary information of .American National. American National shall have continuing right to
access and copy all accounts and records maintained by TAG related to American National’s business.
Any appropriately authorized governmental agency shall have access to all books, bank accounts, and
records of TAG and American National for the purpose of examination, inspection, and audit. All
information contained in the aforementioned books and records, including the identity and addresses
of policyholders shall be kept confidential, except that such information may be used in
proceedings instituted against a party, or otherwise required to be disclosed by proper federal,
state or regulatory agencies or by court order.

 

4

 

4.4 American National shall have on-line “look only” access to the American National policy
information maintained on the TAG System. TAG will provide “look only” policyholder information on
request by American National within a time period mutually agreeable and appropriate with the
request. American National will comply with TAG’s procedures for submitting user access requests,
terminating and maintaining user access. TAG will provide look access specific only to American
National business. TAG shall provide one-time user training and training documentation. American
National shall be responsible for any additional training.

4.5 Notwithstanding anything to the contrary, upon termination or expiration of this Agreement,
including termination under 3.2(f), TAG may transfer all records to a successor administrator or
to American National rather than retain them for the aforementioned period. If TAG transfers the
records to a successor administrator or to American National, TAG is no longer responsible for
retaining such records. American National shall cause any successor third party administrator to
acknowledge in writing to TAG that it is responsible for retaining the records for which TAG had
previously been responsible.

5. RIGHTS AND RESPONSIBILITIES OF AMERICAN NATIONAL

5.1 American National shall be responsible for the following:

	 	(a)	 	It is the sole responsibility of American National to provide for competent
administration of its programs.

	 	(b)	 	Subject to American National’s approval in writing, in advance, American
National shall be responsible for researching, obtaining, and the registration of any
service marks issued by the U.S. Patent and Trademark Office for the products
developed by TAG and American National, and any costs associated therewith.

	 	(c)	 	American National shall be responsible for product filing and any costs
associated therewith. The parties may, by mutual agreement, hire a product filing
consultant for whose fees American National will be responsible.

	 	(d)	 	American National shall be responsible for the establishment and maintenance
of any group trusts associated with such product filings and any costs associated
therewith.

	 	(e)	 	American National shall be responsible for determining the benefits, premium
rates, underwriting criteria, and claims payment procedures applicable to such
coverage and for securing reinsurance, if any.

	 	(f)	 	American National shall have the sole responsibility for filing advertising
materials in those states that so require prior to approving their use by TAG. All
costs associated with such filings will be the responsibility of American National.

	 	(g)	 	American National shall, at least semiannually, conduct a review of
operations of TAG. At least one such review will be an on-site audit of the
operations of TAG. American National shall forward an agenda for such audit at least
five (5) days in advance of the scheduled audit.

	 	(h)	 	American National shall immediately, within five (5) business days, provide
TAG
with written notice of any change of authority of persons authorized and enumerated
in APPENDIX D.

 

5

 

6. RIGHTS AND RESPONSIBILITIES OF TAG

6.1 TAG shall, in all cases and at all times, observe and obey the rules, regulations,
instructions and directives of American National which are provided herein or, subject to change
control procedures to be developed by TAG and agreed to by the parties within thirty (30) days
after the Effective Date, such notice that American National has provided to TAG in writing, from
time to time and at any time, promulgate for its operations, and shall not bind American National
in contravention of any such rules, regulations, instructions, or directives.

6.2 TAG shall handle all correspondence of a routine nature with the policyholders and other
general functions included within the services and shall maintain files relative thereto. The
services are described in APPENDIX C. Subject to American National’s right to approve the
resolution thereof, TAG shall handle all insurance department complaints and inquiries and policy
owner and beneficiary complaints, whether written or oral, and all attorney letters containing
complaints and any other complaints related to the policies administered hereunder. TAG will
notify American National of complaints from regulatory agencies within twenty-four (24) hours of
receipt thereof. Details of such complaints will be forwarded to American National within five (5)
business days. However, American National will respond to summons and complaints commencing legal
actions on its own behalf.

6.3 TAG will provide written notice, approved in writing by American National, to
policyholders advising them of the identity of American National and TAG, and the relationship
between TAG, the policyholder, and American National.

6.4 When a policy is issued by TAG to a trustee or trustees, a copy of the trust agreement
and any amendment thereto, shall be furnished to American National by TAG and shall be retained as
part of the official records of both TAG and American National for the duration of the policy and
for six (6) years thereafter.

6.5 TAG will only use advertising pertaining to the business underwritten by American
National that American National has approved in writing in advance of its use. If so required,
American National shall obtain the prior approval of the appropriate Department of Insurance
before approving advertising for use by TAG, as provided this Agreement.

6.6 TAG will act only in the capacity in which it is so licensed. TAG will comply with all of
the relevant provisions contained in applicable Third Party Administrator statutes. If any
provision of this Agreement is in conflict with the laws of the State which governs this
Agreement, such provision will be deemed to be amended to conform with such laws. Further, if the
laws of the State which govern this Agreement require the inclusion of certain provisions of
relevant statutes, this Agreement shall be deemed to be amended to conform with such laws.

6.7 TAG is responsible for modifications to the TAG System necessary in the normal course of
business. TAG is not responsible for the costs associated for modifications that are not necessary
in the normal course of business. System modifications for new product development will be
performed by LMG under the LMG Agreement. TAG is not required to make, and American National is
not required to pay TAG for, new product development systems modifications under the terms of this
Agreement. American National will reimburse TAG for any other system modification costs at TAG’s
standard rates illustrated in APPENDIX B. Such costs will be mutually agreed upon in writing, as
signed by authorized
personnel in APPENDIX D, prior to the commencement of such modifications.

 

6

 

6.8 TAG will possess and maintain an adequate fidelity and/or surety bond as so required in the
states in which it is compelled to do so. TAG will file such bond, if so required, with the
appropriate agency. The bond shall be executed by a corporate insurer authorized to transact
business in the states which mandate the maintenance of such bond.

6.9 TAG will possess and maintain at all times errors and omissions coverage or other appropriate
liability insurance, written by an insurer authorized to transact business in the states which
mandate the maintenance of such insurance. Such coverage will comply with the requirements of the
states in which such insurance coverage is required and such coverage shall be in a minimum amount
of one million dollars ($1,000,000) per occurrence/three million dollars ($3,000,000) aggregate
underwritten by a company rated by A.M. Best as A- or better.

7. GENERAL PROVISIONS

7.1 TAG and American National agree this Agreement is an honorable undertaking, and agree to
cooperate each with the other in carrying out its provisions.

7.2 If any clause, paragraph, term, or provision of this Agreement shall be found to be void or
unenforceable by any court of competent jurisdiction, such finding shall have no effect upon any
other clause, paragraph, term, or provision of this Agreement, and same shall be in full force and
effect.

7.3 For any notice under this Agreement, notice shall be sufficient upon receipt if sent via US
Mail, postage prepaid, registered or certified, return receipt requested, or via nationally known
courier. Such notice shall be directed as follows:

	 	 	 
	To TAG:

	 	Transaction Applications Group, Inc.

421 South 9th Street, Suite 222

Lincoln, Nebraska 68508

Attention: President

Facsimile: 402-479-0122
	 
	 	 
	With copy to:

	 	Perot Systems Corporation

2300 West Plano Parkway
 Plano, TX 75070

Attention: General Counsel 
Facsimile: 972-577-6085

	 
	 	 
	To American National:

	 	American National Insurance Company

Albert L. Amato, Jr., Senior Vice President

E. Bruce Pavelka, Vice President

Life Insurance Administration, One Moody Plaza

Galveston, Texas 77550-7999
	 
	 	 
	With copy to:

	 	Frederick E, Black, Greer, Herz and Adams 
LLP One Moody
Plaza, 18th Floor

Galveston, Texas 77550-7999

 

7

 

7.4 TAG and American National expressly represent and warrant that each has the authority to
enter into this Agreement and that it is not or will not be, by virtue of entering into this
Agreement, in breach of any other agreement with any other insurance company, association, firm,
person, or corporation.

7.5 The persons signing this Agreement on behalf of American National and TAG warrant,
covenant, and represent that they are authorized to execute this document on behalf of such
corporations pursuant to their bylaws or a resolution of their boards of directors.

7.6 TAG is an independent contractor. Nothing contained in this Agreement shall be construed
to create the relationship of employer and employee, partners or joint ventures between American
National and TAG, nor shall TAG’s employees be considered employees of American National for any
purpose.

7.7 This Agreement is the result of mutual negotiations between TAG and American National and
shall not be deemed to have been prepared by either party, but by both equally. The headings of the
several paragraphs contained herein are for convenience only and do not define, limit, or construe
the contents of such paragraph.

7.8 This Agreement, including APPENDICES A, B, C, D, E and F and the provisions thereof
constitute the entire agreement entire agreement between the parties. No modifications hereof shall
be binding upon the parties unless such Amendment is in writing and signed by authorized personnel,
as shown in APPENDIX D. This Agreement shall be governed and construed in accordance with the laws
of the State of Texas.

7.9 Any policies, certificates, booklets, termination notices, or other written communications
delivered by American National to TAG for delivery to insured parties or covered individuals shall
be sent by TAG within ten (10) days after receipt of instructions from American National to deliver
them.

7.10 Payment to TAG of any premiums or charges for insurance by or on behalf of the insured party
shall be deemed to have been received by American National, and the payment of return premiums or
claim payments forwarded by American National to TAG shall not be deemed to have been paid to the
insured party or claimant until such payments are received by the insured party or claimant.

7.11 Currently, TAG does not perform underwriting for American National; however, if granted such
authority, TAG will comply with all underwriting standards established by American National and
adhere to all pertinent provisions contained in applicable Third Party Administrator statutes.
American National shall be responsible for the underwriting or other standards pertaining to the
business underwritten by American National.

7.12 Each party shall be excused from performance for any period and to the extent that the party
is prevented from performing any services, in whole or in part as a result delays caused by an act
of God, war, civil disturbance, court order, labor dispute, or other cause beyond that party’s
reasonable control, including, failures or fluctuations in electrical power, heat, light, air
conditioning; or telecommunications equipment and such non-performance shall not be a
default or a ground for termination of this Agreement.

7.13 In the event a malfunction of the existing LMG system, or TAG System (as defined in Section
7.18) when applicable causes an error or mistake in any record, report, data, information or output
under the terms of this Agreement, TAG shall at its expense correct and reprocess such records. In
the event American National discovers any such errors or mistake it shall, within three (3) days
after discovery,
notify TAG in writing of such error or mistake in any record, report, data, information or output
received by American National.

 

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7.14 In the event TAG is unable to perform its obligations under the terms of this Agreement
because of causes beyond TAG’s control, including but not limited to strikes, equipment or
transmission failure or damage, TAG will use commercially reasonable efforts to assist American
National to obtain alternate sources of service during the period TAG is unable to perform. Such
efforts shall receive priority and levels of support appropriate to the nature and extent of the
force majeure event and its impact on American National and any other similarly situated customers.
TAG will not be liable for any damages resulting from such causes, assuming TAG has provided
commercially reasonable efforts as described above.

7.15 In no event and under no circumstances, shall either party under this Agreement be liable for
lost profits or for exemplary, incidental, indirect, speculative, special, punitive, exemplary or
consequential damages. The limitations of liability set forth in the foregoing sentence shall not
apply with respect to: (a) damages caused by the willful misconduct of a party; (b) amounts paid
with respect to third party claims that are the subject of indemnification under Section 7.17
of this Agreement; and (c) damages caused by a party’s failure to comply with its obligations
of confidentiality in Section 8.1 of this Agreement.

The total aggregate liability of TAG arising out of, resulting from or otherwise in connection with
the Agreement shall not exceed the total charges payable to TAG for performance of the Services
(exclusive of out-of-pocket expenses, pass through charges and taxes) during the twelve (12)
months immediately preceding the last act or omission giving rise to such liability. The
limitations of liability set forth in the foregoing sentence shall not apply with respect to: (a)
damages caused by the willful misconduct of a party; (b) amounts paid with respect to third party
claims that are the subject of indemnification under Section 7.17 of this Agreement; and (c)
charges and other amounts payable to TAG under this Agreement.

The limitations of liability set forth in this Section shall apply regardless of the form of
the action or the theory of recovery, even if TAG has been advised of the possibility of such
damages, whether based upon an action or claim in contract, tort (including negligence),
warranty, intended conduct, guarantee or any other legal or equitable grounds.

7.16 Any claim or dispute arising out of or relating to this Agreement, or any breach thereof,
shall be finally determined and settled pursuant to binding arbitration in Houston, Texas, by one
arbitrator, to be agreed upon by the parties. The arbitrator shall be an attorney licensed to
practice law in the state of Texas. Should the parties fail to agree on an arbitrator then each
party shall appoint one arbitrator who shall then agree to appoint a third arbitrator. In such an
event, the first two arbitrators will not be required to participate and the final arbitrator may
conduct the arbitration as a sole arbitrator. Should one party fail to appoint an arbitrator as
herein contemplated then the choice of the other party shall be the sole arbitrator. If the two
arbitrators appointed by or on behalf of the parties as contemplated herein fail to appoint a third
arbitrator within ten (10) days after the date of the appointment of the last arbitrator, then any
person sitting as a District Judge in Houston, Texas, upon application of either party, shall
appoint an arbitrator to fill such position with the same force and effect as though such
arbitrator had been appointed or herein contemplated with the same force and effect as though such
arbitrator had been appointed or herein contemplated.

The arbitration proceeding shall apply the laws of the state of Texas and be conducted in
accordance with the Commercial Arbitration Rules of the American Arbitration Association. The cost
of the arbitrator(s) (exclusive of attending the arbitration, and of the fees and expenses of legal
counsel to such
party, to be borne by each party) shall be shared equally by American National and TAG unless such
arbitrator deems it just to allow one party to recover such costs from the other. The arbitration
award shall be final and conclusive and shall receive recognition and judgment upon such award may
be entered and enforced in any court of competent jurisdiction.

 

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7.17 TAG hereby indemnifies and holds harmless American National, its officers, directors,
employees and representatives from any and all damages, expenses, liabilities, losses, and costs
paid or payable by American National, of whatever kind or nature, whether joint and several or
otherwise (including, but not limited to, attorneys’ fees and expenses and amounts paid in
settlement of any claims or liabilities) for any third party claim arising out of TAG’s failure to
comply with any law or regulation with respect to its duties hereunder except that TAG shall not be
required to indemnify or hold harmless American National for any act or omission of TAG which was
directed orally or in writing by American National, or required by American National under the
Agreement.

American National hereby indemnifies and holds harmless TAG, its officers, directors, employees and
representatives from any and all damages, expenses, liabilities, losses, and costs and obligations
paid or payable by TAG, of whatever kind or nature, whether joint and several or otherwise
(including, but not limited to, attorneys’ fees and expenses and amounts paid in settlement of any
claims or liabilities) for any third party claims arising out of American National’s failure to
comply with any law or regulation with respect to its duties hereunder; and any actions or
omissions of TAG which were directed orally or in writing by American National, or required by
American National under the Agreement.

In lawsuits related to this Agreement brought against both parties by a third party, the parties
agree that each shall work together in a good faith effort to defend against and/or settle such
lawsuits brought by a third party. In such lawsuits brought against one but not both parties, to
the extent practicable, all efforts will be made to defend or settle the claim with such third
party without bringing the other party into the initial lawsuit. In any case, each party shall
allow the other to assert and protect all mutual privileges of one another, including but not
limited to the attorney-client privilege, the joint defense privilege, and the attorney work
product privilege. Notwithstanding the foregoing, nothing herein shall prevent TAG or American
National from seeking indemnification from the other party in a separate arbitration or other
proceeding without the constraints of the joint defense privilege or joint attorney work product
privilege.

The parties hereto expressly agree that, prior to the institution of any action or the filing of
any claim against one another under this section, the parties will confer directly in good faith to
resolve any disputes. For American National, such discussions shall involve Albert L. Amato, Jr.,
Senior Vice President, or E. Bruce Pavelka, Vice President, or their successors or designees. For
TAG, such discussions shall involve John Vonesh, Mike Kerrey or Bob Clifton, or their successors or
designees.

7.18 American National acknowledges that (i) the software modules and components for the Life
System Nineties family of insurance administration software or other insurance administration
software used by TAG to administer the policies, including the imaging portal, and each element and
portion thereof, and all modifications, add-ons and enhancements thereto, including without
limitation, custom modifications, add-ons and enhancements (the “TAG Software”) and (ii) any other
proprietary or licensed computer programs and programming aids (with supporting documentation,
including, but not limited to, input and output formats, program listings, system flow charts,
narrative descriptions, operating instructions, tangible media upon which such information is
recorded) used by TAG to administer the Policies (the “TAG System”), and all rights related to
copyright, patent, trademark or trade secrets associated therewith, are proprietary to TAG.
American National shall not acquire any right, title, interest or claim to the TAG Software or TAG
System, or to any element or component thereof. American National hereby absolutely and
unconditionally assigns to TAG any rights which it may have or claim to have in the future with
respect to  the

 

10

 

TAG Software and the TAG System. American National shall not (a) apply for any patent, copyright or trademark related to the TAG Software or TAG System; (b)
make any common law or other claim with respect to the TAG Software or TAG System in the name of
American National or assist any third party in doing so; (c) permit the use of the TAG Software for
any purpose other than as provided under this Agreement; (d) challenge or infringe upon the title
or any proprietary rights of TAG in and to the TAG Software or TAG System, or any patent,
copyright, trade secret or trademark of TAG. Upon request by TAG, American National shall
cooperate fully and in good faith, and shall assist TAG to the extent reasonably necessary, to
procure any protection or protect any right claimed by TAG with respect to the TAG Software or TAG
System; provided that TAG shall reimburse American National for its reasonable expenses associated
with any such action requested by TAG. In no event shall TAG be required to disclose to American
National or its agents any of TAG’s confidential or proprietary information relating to the TAG
Software or TAG System.

8. PROPRIETARY, CONFIDENTIALITY AND PRIVACY OF INFORMATION

8.1 Proprietary and Confidentiality. Each party acknowledges that certain information
received from the other may be proprietary and/or confidential (referred to herein as
“Confidential Information”) in nature. All such Confidential Information shall be used by each
party solely for purposes of performing its obligations under this Agreement. Except as
required by law or to inform its officers, directors, employees, agents, affiliates or
contractors (collectively referred to herein as "Affiliates”), for the purpose of
compliance with or negotiation of or performance under this Agreement, neither party shall
disclose the contents of this Agreement to third parties (other than Affiliates) without the
other’s written approval, which shall not be unreasonably withheld or delayed.

8.2 Privacy. To protect Confidential Information each party shall: (i) keep all
Confidential Information in strict confidence; (ii) prevent disclosure of Confidential
Information to third parties (except for Affiliates with a need-to-know); (iii) promptly notify
the other of any loss or unauthorized use or disclosure of or access to Confidential
Information; and (iv) promptly notify the other upon receipt of a request or demand pursuant to
law to disclose Confidential Information, so that the appropriate party may seek a protective
order or similar remedy. For the purpose of this Agreement, the term “Confidential Information”
shall not include information that is: (a) in or becomes part of the public domain other than
pursuant to a breach of this Agreement; (b) independently developed; (c) rightfully obtained
from a third party without an obligation of confidentiality; (d) known prior to date of this
Agreement without obligation of confidentiality; or (e) required to be disclosed by legal or
regulatory authority.

8.3 Non-Public Personal Information. All capitalized terms used in this Section 8 and
not otherwise defined shall have the meanings throughout this Agreement set forth in the Federal
“Privacy of Consumer Financial Information” Regulation (12 CFR Part 40), as amended from time to
time (the “Privacy Regulation”), issued pursuant to Section 504 of the Gramm-Leach-Bliley Act (15
U.S.C. 6801 et seq ). The parties acknowledge that the Privacy Regulation governs
disclosures of Nonpublic Personal Information about Consumers and Customers, and that Nonpublic
Personal Information is included in the definition of “Confidential Information” in this
Agreement. Each party hereby agrees that as the party receiving or maintaining Nonpublic Personal
Information (the “Receiving Party”) it shall:

	 	(a)	 	comply with the terms and provisions of the Privacy Regulation, including,
without limitation, the provisions regarding the sharing, collection, access and use
of Nonpublic Personal Information, the provisions regarding notice and opt-out
requirements, and the provisions regarding the limitations on the sharing of account
number information for marketing purposes;

 

11

 

	 	(b)	 	not disclose or use any Nonpublic Personal Information that it obtains from
the other party (the “Disclosing Party”) except to carry out the purposes for which
the Disclosing Party provided such Nonpublic Personal Information;

	 	(c)	 	not make any changes to its security measures that would increase the risk of
unauthorized access, use or disclosure of Nonpublic Personal Information;

	 	(d)	 	not disclose any Nonpublic Personal Information provided by the Disclosing
Party to any other entity, without the prior written consent of the Disclosing Party;

	 	(e)	 	at any time, upon the Disclosing Party’s request, return to the Disclosing
Party all of the Disclosing Party’s Nonpublic Personal Information. Neither party shall
be under any obligation to take any action, which, within such party’s reasonable
judgment, would constitute a violation of the Privacy Regulation or its internal
privacy policies;

	 	(f)	 	safeguard Nonpublic Personal Information by maintaining security and
procedural standards that comply with state and federal regulations to protect against
unauthorized access, use or disclosure (or threatened access, use or disclosure) of
the Disclosing Party’s Nonpublic Personal Information.

8.4. Service Provider Agreements. Each party agrees that when Nonpublic Personal
Information is provided to a nonaffiliated third party (a “Service Provider”) who performs
services for or functions on behalf of the party, including marketing of the party’s own products
or services, or marketing of financial products or services pursuant to Joint Agreements between
the party and other Financial Institutions, such party shall disclose to its Consumers and/or
Customers that (a) it will be providing such Nonpublic Personal Information to the Service
Provider and (b) it has entered a contractual agreement with the Service Provider that requires
the Service Provider to maintain the confidentiality of such Nonpublic Personal Information
pursuant to the Privacy Regulation. TAG agrees to send, on an annual basis, American National form
9186 (or form 4977 as required by state law) to the owner(s) of all American National insurance
and annuity policies administered by TAG.

8.5. Other Privacy Regulations. Each party agrees that compliance with the Privacy
Regulation does not relieve either party of any of its duties and obligations to comply with other
applicable privacy laws, statutes, ordinances or regulations of the appropriate authorities.

8.6 Remedies. The Receiving Party agrees that (a) any unauthorized access, use or
disclosure (or threatened unauthorized access, use or disclosure) of the Disclosing Party’s
Nonpublic Personal Information or other Confidential Information, (b) other violation of the
Privacy Regulation, or (c) violation of other applicable privacy regulations, may cause immediate
and irreparable harm to the Disclosing Party for which money damages may not constitute an adequate
remedy. In that event, each party agrees that injunctive relief may be warranted in addition to any
other remedies the Disclosing Party may have. In addition, the Receiving Party agrees promptly to
advise the Disclosing Party in writing of any unauthorized misappropriation, disclosure or use by
its personnel or agents of Confidential Information (including, without limitation, Nonpublic
Personal Information) which may come to its attention and to take all steps at its own expense
reasonably requested by the Disclosing Party to limit, stop or otherwise remedy such
misappropriation, disclosure or use.

9. SURVIVAL: Sections 7.15, 7.16 and 7.17 and any other provision of this Agreement which
contemplates performance or observance subsequent to such expiration or termination shall survive
the
termination of this Agreement. Any similar agreement signed by the parties prior to the execution
dates below is null and void and abrogated hereby.

(Remainder of this page intentionally left blank)

 

12

 

IN WITNESS HEREOF, the parties hereto have executed this Agreement as of the Effective Date.

AMERICAN NATIONAL INSURANCE COMPANY

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Witness:
	 	 

	 	 
	 

	 	Date:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	TRANSACTION APPLICATIONS GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Witness:
	 	 

	 	 
	 

	 	Date:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

13

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