Document:

EXHIBIT 10.29

 

Letter  Agreement

Action Required

 

 

July 26,
2007

 

Katherine
Andreasen

500
W.Madison

Chicago,
IL

 

Dear
Kathy:

 

As
a member of the Orbitz Worldwide, Inc. (“Orbitz”) Senior Leadership Team
and a key part of the successful initial public offering of Orbitz
(collectively, with its subsidiaries, “the Company”), I am pleased to provide
you with this letter agreement (“agreement”) that outlines certain terms and
conditions of your employment with the Company.

 

In
order to be eligible to receive benefits provided to you herein, you must sign
and return an original of this agreement to my attention by no later than August 13,
2007.    Please note that this letter
does not take effect until executed by both parties.

 

This
agreement supersedes the February 17, 2006 addendum to offer of employment
letter and any and all prior agreements, written or oral, between you and the
Company relating to the subject matter herein, all of which are null and void
upon your execution of this agreement. 
This agreement contains the entire agreement between you and the Company
concerning the subjects contained in this agreement, with the exception of any
documents concerning equity, confidentiality, non-competition, non-solicitation
and other post-employment restrictive covenants.  By signing below, you agree to comply with
the attached addendum to this agreement concerning non-competition,
non-solicitation, confidentiality and other obligations, including those
following your employment with the Company.

 

Your
annual salary will be $275,000.00, with a bi-weekly pay rate of
$10,576.92.  You are eligible to
participate in the Orbitz Global Bonus Plan (“the Plan”) provided that you meet
our performance measures or such other criteria as the Company determines in
its sole discretion and subject to the terms of the Plan.  The Plan currently provides for a target
payment of 75% of your eligible earnings (“target bonus”) based on achievement
of company financial objectives, business unit performance and individual
performance.  Bonus payment is subject to
the approval of the Orbitz Board of Directors and/or Compensation Committee.

 

In the event both that (1) your employment
is terminated by the Company (other than for Cause, as defined below) at any
time following the effective date of this letter or you resign due to a
Constructive Termination (as defined below) within one (1) year following
a Change in Control (as defined below) and (2) you execute (and do not
revoke) a separation and general release agreement (waiving all legal claims
against the 

 

 

 

 

Company) and a restrictive covenant agreement
under which you will agree not to compete against the Company, and not to
solicit the Company’s employees and customers, in each case for a period of
twelve (12) months following your termination of employment, each in such
standard form as provided by the Company, you will be eligible to receive the
following  benefits (in lieu of any
severance or separation benefits under any and all other severance plans,
policies and agreements of the Company):

 

·                  a lump sum severance payment equal to one
year  of your then current annual rate of
base salary;

 

·                  a lump sum severance payment equal to
your then current annual target bonus;

 

·                  a lump sum severance payment equal to your
target bonus for the year in which your employment terminates, pro-rated based
upon the number of days you were employed with the Company during the year of
termination and for which you have not otherwise received or been eligible for
a bonus, and in lieu of any other bonus for the year of termination, except as
set forth in this agreement;

 

·                  continuation of your health plan coverage
through the end of the month in which your last date of employment occurs.  Thereafter, you will be eligible to continue
health plan coverage pursuant to the terms of the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”).  If you
elect to continue health plan coverage pursuant to COBRA, the Company will
subsidize your COBRA payments for the first twelve (12) months so that you will
pay the same monthly premiums as active employees for the same coverage; provided,
however, that if you are eligible for another group health plan coverage prior
to the end of this period, the Company shall not be responsible for any further
payments; provided, further, however, that the Company may, in its sole
discretion, provide you with a lump sum payment in lieu of providing a COBRA
subsidy.  Thereafter, you will be
responsible for the full payment of any COBRA premiums through the remainder of
your eligibility;

 

·                  outplacement benefits pursuant to Company
policy; and

 

All amounts discussed herein are subject to
applicable withholding taxes.  If the
Company determines at the time of the your termination of employment that it is
necessary or appropriate for any of the payments specified above to be delayed
in order to avoid additional tax, interest and/or penalties under Section 409A
of the Internal Revenue Code (“Section 409A”), then the payments, as
applicable, shall be made on the earliest practicable date or dates permitted
under Section 409A without the imposition of any additional tax, interest
and/or penalties.

 

Per Company policy, this letter is not intended
as, nor should it be considered, an employment contract for a definite or
indefinite period of time. As you know, employment with the Company is at will,
and either you or the Company may terminate employment at any time, with or
without cause.

 

 

 

 

Your
signature below will indicate your understanding and acceptance of these terms.

 

Sincerely,

 

	
  /s/
  Steve Barnhart

  	
   

  

Steve
Barnhart

President
and CEO

Orbitz
Worldwide, Inc.

 

Understood
and Agreed:

 

	
  /s/
  Katherine Andreasen

  	
   

  	
  8/13/07

  
	
  Katherine
  Andreasen

  	
  Date

  

 

 

 

 

ADDENDUM TO LETTER AGREEMENT:

 

1.             Definitions

 

(a)     For
purposes of the agreement, “Cause” shall mean (A) your failure
substantially to perform your duties to the Company (other than as a result of
total or partial incapacity due to disability) for a period of 10 days
following receipt of written notice from any Company by you of such failure;
provided that it is understood that this clause (A) shall not apply if a Company
terminates your employment because of dissatisfaction with actions taken by you
in the good faith performance of your duties to the Company; (B) theft or
embezzlement of property of the Company or dishonesty in the performance of
your duties to the Company; (C) an act or acts on your part constituting (x) a
felony under the laws of the United States or any state thereof or (y) a
crime involving moral turpitude; (D) your willful malfeasance or willful
misconduct in connection with your duties or any act or omission that is
materially injurious to the financial condition or business reputation of the
Company or its affiliates; or (E) your breach of the provisions of any
agreed-upon non-compete, non-solicitation or confidentiality agreements agreed
to with the Company.

 

(b)     For
purposes of this agreement, “Change in Control” shall be as defined in the
Orbitz Worldwide, Inc. 2007 Equity and Incentive Plan.

 

(c)     For
purposes of the agreement, “Constructive Termination” shall be deemed to have
occurred upon (A) any material reduction in your base salary or target
bonus (excluding any change in value of equity incentives or a reduction
affecting substantially all similarly situated executives); (B) the
failure of the Company to pay compensation or benefits when due; (C) the
primary business office for you being relocated by more than 50 miles; or (D) a
material and sustained diminution to your duties and responsibilities as of the
date of the IPO; provided that any of the events described in clauses
(A)-(D) of this definition shall constitute a Constructive Termination
only if the Company fails to cure such event within 30 days after receipt by
the Company’s Board of Directors from you of written notice of the event which
constitutes a Constructive Termination; provided, further, that a
“Constructive Termination” shall cease to exist for an event on the 60th
day following the later of its occurrence or your knowledge of such occurrence,
unless you have given the Company written notice of such occurrence prior to
the 60th day.

 

2.             Restrictive
Covenants

 

(a)   Non-Competition

 

(i)  From the date
hereof while employed by the Company and for a twelve (12) month period
following the date you cease to be employed by the Company (the “Restricted
Period”), irrespective of the cause, manner or time of any termination, you
shall not use your status with any Company to obtain loans, goods or services
from another organization on terms that would not be available to you in the
absence of your relationship to the Company.

 

(ii)  During the
Restricted Period, you shall not make any statements or perform any acts
intended to or which may have the effect of advancing the interest of 

 

 

 

 

any Competitors of the Company or in any way injuring the interests of
the Company and the Company shall not make or authorize any person to make any
statement that would in any way injure the personal or business reputation or
interests of you; provided however, that, nothing herein shall preclude the
Company or you from giving truthful testimony under oath in response to a
subpoena or other lawful process or truthful answers in response to questions
from a government investigation; provided, further, however, that nothing
herein shall prohibit the Company from disclosing the fact of any termination
of your employment or the circumstances for such a termination.  For purposes of this agreement, the term “Competitor”
means any enterprise or business that is engaged in, or has plans to engage in,
at any time during the Restricted Period, any activity that competes with the
businesses conducted during or at the termination of your employment, or then
proposed to be conducted, by the Company in a manner that is or would be
material in relation to the businesses of the Company or the prospects for the
businesses of the Company (in each case, within 100 miles of any geographical
area where the Company manufactures, produces, sells, leases, rents, licenses
or otherwise provides its products or services).  During the Restricted Period, you, without
prior express written approval by the Orbitz Board of Directors, shall not (A) engage
in, or directly or indirectly (whether for compensation or otherwise) manage,
operate, or control, or join or participate in the management, operation or
control of a Competitor, in any capacity (whether as an employee, officer,
director, partner, consultant, agent, advisor, or otherwise) or (B) develop,
expand or promote, or assist in the development, expansion or promotion of, any
division of an enterprise or the business intended to become a Competitor at
any time after the end of the Restricted Period or (C) own or hold a
Proprietary Interest in, or directly furnish any capital to, any Competitor of
the Company.  You acknowledge that the
Company’s businesses are conducted nationally and internationally and agree
that the provisions in the foregoing sentence shall operate throughout the
United States and the world (subject to the definition of “Competitor”).

 

(iii)  During the
Restricted Period, you, without express prior written approval from the Orbitz
Board of Directors, shall not solicit any members or the then current clients
of the Company for any existing business of the Company or discuss with any
employee of the Company information or operations of any business intended to
compete with the Company.

 

(iv)  During the
Restricted Period, you shall not interfere with the employees or affairs of the
Company or solicit or induce any person who is an employee of the Company to
terminate any relationship such person may have with the Company, nor shall you
during such period directly or indirectly engage, employ or compensate, or
cause or permit any Person with which you may be affiliated, to engage, employ
or compensate, any employee of the Company.

 

(v)  For the purposes
of this Agreement, “Proprietary Interest” means any legal, equitable or other
ownership, whether through stock holding or otherwise, of an interest in a
business, firm or entity; provided, that ownership of less than 5% of any class
of equity interest in a publicly held company shall not be deemed a Proprietary
Interest.

 

(vi)  The period of
time during which the provisions of this section shall be in effect shall be
extended by the length of time during which you are in breach of the terms
hereof as determined by any court of competent jurisdiction on the Company’s
application for injunctive relief.

 

 

 

 

(vii) 
You agree that the restrictions contained in this section are an
essential element of the compensation you are granted hereunder and but for
your agreement to comply with such restrictions, the Company would not have
entered into this agreement.

 

(viii) 
It is expressly understood and agreed that although you and the Company
consider the restrictions contained in this section to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that
the time or territory or any other restriction contained in this agreement is
an unenforceable restriction against you, the provisions of this agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.  Alternatively, if any court of competent
jurisdiction finds that any restriction contained in this agreement is
unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

 

(b)   Confidentiality

 

(i)  You will not at
any time (whether during or after your employment with the Company) (x) retain
or use for the benefit, purposes or account of you or any other Person; or (y) disclose,
divulge, reveal, communicate, share, transfer or provide access to any Person
outside the Company (other than its professional advisers who are bound by
confidentiality obligations), any non-public, proprietary or confidential
information (including without limitation trade secrets, know-how, research and
development, software, databases, inventions, processes, formulae, technology,
designs and other intellectual property, information concerning finances,
investments, profits, pricing, costs, products, services, vendors, customers,
clients, partners, investors, personnel, compensation, recruiting, training,
advertising, sales, marketing, promotions, government and regulatory activities
and approvals) concerning the past, current or future business, activities and
operations of the Company and/or any third party that has disclosed or provided
any of same to the Company on a confidential basis (“Confidential Information”)
without the prior written authorization of the Orbitz Board of Directors.

 

(ii)  “Confidential
Information” shall not include any information that is (i) generally known
to the industry or the public other than as a result of your breach of this
covenant or any breach of other confidentiality obligations by third parties; (ii) made
legitimately available to you by a third party without breach of any
confidentiality obligation; or (iii) required by law to be disclosed; provided
that you shall give prompt written notice to the Company of such requirement,
disclose no more information than is so required, and cooperate, at the Company’s
cost, with any attempts by the Company to obtain a protective order or similar
treatment.

 

(iii) 
Except as required by law, you will not disclose to anyone, other than
your immediate family and legal or financial advisors, the existence or
contents of this agreement (unless this agreement shall be publicly available
as a result of a regulatory filing made by the Company); provided that
you may disclose to any prospective future employer the provisions of this
section of the agreement provided they agree to maintain the confidentiality of
such terms.

 

 

 

 

(iv) 
Upon termination of your employment with the Company for any reason,
you shall (x) cease and not thereafter commence use of any Confidential
Information or intellectual property (including without limitation, any patent,
invention, copyright, trade secret, trademark, trade name, logo, domain name or
other source indicator) owned or used by the Company; (y) immediately
destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers,
plans, computer files, letters and other data) in your possession or control
(including any of the foregoing stored or located in your office, home, laptop
or other computer, whether or not Company property) that contain Confidential
Information or otherwise relate to the business of the Company, except that you
may retain only those portions of any personal notes, notebooks and diaries
that do not contain any Confidential Information; and (z) notify and fully
cooperate with the Company regarding the delivery or destruction of any other
Confidential Information of which you are or becomes aware.

 

(c)   Intellectual Property

 

(i)  If you have
created, invented, designed, developed, contributed to or improved any works of
authorship, inventions, intellectual property, materials, documents or other
work product (including without limitation, research, reports, software,
databases, systems, applications, presentations, textual works, content, or
audiovisual materials) (“Works”), either alone or with third parties, prior to
your employment by the Company, that are relevant to or implicated by such
employment (“Prior Works”), you hereby grant the Company a perpetual,
non-exclusive, royalty-free, worldwide, assignable, sublicensable license under
all rights and intellectual property rights (including rights under patent,
industrial property, copyright, trademark, trade secret, unfair competition and
related laws) therein for all purposes in connection with the Company’s current
and future business.

 

(ii) 
If you create, invent, design, develop, contribute to or improve any
Works, either alone or with third parties, at any time during your employment
by the Company and within the scope of such employment and/or with the use of
any the Company resources (“Company Works”), you shall promptly and fully
disclose same to the Company and hereby irrevocably assign, transfer and
convey, to the maximum extent permitted by applicable law, all rights and
intellectual property rights therein (including rights under patent, industrial
property, copyright, trademark, trade secret, unfair competition and related
laws) to the Company to the extent ownership of any such rights does not vest
originally in the Company.

 

(iii) 
You agree to keep and maintain adequate and current written records (in
the form of notes, sketches, drawings, and any other form or media requested by
the Company) of all Company Works.  The
records will be available to and remain the sole property and intellectual
property of the Company at all times.

 

(iv) 
You shall take all requested actions and execute all requested
documents (including any licenses or assignments required by a government
contract) at the Company’s expense (but without further remuneration) to assist
the Company in validating, maintaining, protecting, enforcing, perfecting,
recording, patenting or registering any of the Company’s rights in the Prior
Works and Company Works.  If the Company
is unable for any other reason to secure your signature on any document for
this purpose, then you hereby irrevocably designate and appoint the Company and
its 

 

 

 

 

duly authorized officers and agents as your agent and attorney in fact,
to act for and in your behalf and stead to execute any documents and to do all
other lawfully permitted acts in connection with the foregoing.

 

(v) 
You shall not improperly use for the benefit of, bring to any premises
of, divulge, disclose, communicate, reveal, transfer or provide access to, or
share with the Company any confidential, proprietary or non-public information
or intellectual property relating to a former employer or other third party
without the prior written permission of such third party.  You hereby indemnify, hold harmless and agree
to defend the Company and its officers, directors, partners, employees, agents
and representatives from any breach of the foregoing covenant.  You shall comply with all relevant policies
and guidelines of the Company, including regarding the protection of
confidential information and intellectual property and potential conflicts of
interest. You  acknowledge that the
Company may amend any such policies and guidelines from time to time, and that
you remain at all times bound by their most current version.

 

(d)   Specific
Performance

 

You acknowledge and agree that
the Company’s remedies at law for a breach or threatened breach of any of the
provisions of this section would be inadequate and the Company would
suffer irreparable damages as a result of such breach or threatened
breach.  In recognition of this fact, you
agree that, in the event of such a breach or threatened breach, in addition to
any remedies at law, the Company, without posting any bond, shall be entitled
to cease making any payments or providing any benefit otherwise required by
this agreement and obtain equitable relief in the form of specific performance,
temporary restraining order, temporary or permanent injunction or any other
equitable remedy which may then be available. 
Without limiting the generality of the foregoing, neither party shall
oppose any motion the other party may make for any expedited discovery or
hearing in connection with any alleged breach of this section 2.

 

(e)   Cooperation
with Litigation

 

You agree to cooperate with and make yourself readily available
to Orbitz and its General Counsel, as the Company may reasonably request, to
assist it in any matter regarding Orbitz and/or its affiliates, subsidiaries,
and their predecessors, including giving truthful testimony in any litigation
or potential litigation involving Orbitz and/or its affiliates, subsidiaries,
and their predecessors, over which you have knowledge or information.  The Company will reimburse you for any and
all reasonable expenses reasonably incurred in connection with such cooperation
by you.

 

(f)        Survival

 

The provisions of this section 2
shall survive the termination of your employment for any reason.

 

3.             Miscellaneous

 

(a)       Governing Law  This agreement shall be governed by and
construed in accordance with the laws of the State of Illinois, without regard
to conflicts of laws principles thereof.

 

 

 

 

(b)        Amendments  This agreement may not be altered, modified,
or amended except by written instrument signed by the parties hereto.

 

(c)        No Waiver. The failure of a party to
insist upon strict adherence to any term of this agreement on any occasion
shall not be considered a waiver of such party’s rights or deprive such party
of the right thereafter to insist upon strict adherence to that term or any
other term of this agreement.

 

(d)        Severability.  In the event that any one or more of the
provisions of this agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this agreement shall not be affected thereby.

 

(e)        Assignment.  This agreement, and all of your rights and
duties hereunder, shall not be assignable or delegable by you.  Any purported assignment or delegation by you
in violation of the foregoing shall be null and void ab initio
and of no force and effect.  This
agreement may be assigned by the Company to a person or entity which is an
affiliate or a successor in interest to substantially all of the business
operations of the Company.  Upon such
assignment, the rights and obligations of the Company hereunder shall become
the rights and obligations of such affiliate or successor person or entity.

 

(f)        Set Off; No Mitigation.  The Company’s obligation to pay you the amounts
provided and to make the arrangements provided hereunder shall be subject to
set-off, counterclaim or recoupment of amounts owed by you to the Company.  You shall not be required to mitigate the
amount of any payment provided for pursuant to this agreement by seeking other
employment, taking into account the post-employment restrictive covenants set
forth above.Exhibit
10.1

 

AMERICAN
EQUITY INVESTMENT

2006 NMO DEFERRED STOCK COMPENSATION PLAN

 

WHEREAS,  the Board of Directors ( the “Board”)  of
American Equity Investment Life Holding Company (the “Company”)  deems it in the best interest of
the Company and its subsidiary, American Equity Investment Life Insurance
Company (“American Equity”),  that
certain agents and brokers who solicit business on behalf of the Company and
American Equity be given an opportunity to acquire an interest in the operation
and growth of the Company as a means of assuring their maximum effort and
continued association with the Company; and

 

WHEREAS, the Board believes that the Company can best
obtain these and other benefits by establishing a deferred stock compensation
plan pursuant to which agents and brokers meeting certain production goals can
earn credits payable in Common Stock of the Company;

 

NOW, THEREFORE, the Board does hereby adopt this 2006 NMO
Deferred Stock Compensation Plan, subject to the terms and conditions
hereinafter set forth.

 

ARTICLE I

GENERAL

 

1.01        Purpose.   The American Equity Investment
2006 NMO Deferred Stock Compensation Plan (the “Plan”) is intended to advance the interests of the Company
and its agency force by encouraging and enabling selected agents and brokers
meeting certain production goals to earn credits payable in Common Stock of the
Company.

 

1.02        Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)           “Qualification Period” shall mean the 12-month period
beginning on January 1, 2006 and ending on December 31, 2006.

 

1

 

(h)         “Stock Credit” shall mean the right to receive shares of
Common Stock at the time specified for distribution thereof in Article IV
below. Stock Credits shall be distributed at the rate of one share of Stock per
each Stock Credit earned by a Participant under this Plan. The value of the
Stock Credit will be determined by the closing price at December 31, 2006.

 

(i)           “Vesting Period” shall mean the four-year period beginning
January 1, 2007 and ending on December 31, 2010.

 

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, 2007, 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 Fifty Million Dollars
($50,000,000.00).

 

ARTICLE III

AWARDS OF STOCK CREDITS

 

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

 

	
  Stock Credits =

  	
   

  	
  Part A – production ($50 million minimum) multiplies by 10 basis
  points      

  
	
   

  	
   

  	
  Plus

  
	
   

  	
   

  	
  Part B – production ($100 million minimum) multiplies by the
  basis points below

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
  Production of $125 million - $149.99 million = 30 basis points

  
	
   

  	
   

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

  
	
   

  	
   

  	
  Production of $175+ million = 50 basis points

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Example: $150 million in production

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Part A 

  	
  $150 million x 10 B.P. = $150,000.00

  
	
   

  	
   

  	
   

  	
  +

  	
   

  
	
   

  	
   

  	
  Part B

  	
  $150 million x 40 B.P. = $600,000.00

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Equals

  	
   

  	
  $750,000.00 stock credit

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Stock Credit shall then be divided by the value per share of the
  Common Stock as of the final trading day of 2006, to determine the number of
  shares of Common Stock to be distributed, as outlined below.

  
								

 

3.02         Initial Vesting.   A Participant
who satisfies the Minimum Production requirements set forth in Article II
above shall become vested in his Deferred Stock Account to the
extent of twenty-five percent (25%) on January 1, 2007.

 

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

 

2

 

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 (as defined within the Act)
within the Vesting Period, the Participant automatically shall become One
Hundred Percent (100%) vested in Participant’s Deferred Stock Account. A
participant shall be considered disabled if the participant is deemed disabled
under Internal Revenue Code section 409A(a)(2)(c).

 

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

 

ARTICLE IV

DISTRIBUTION

 

4.01         Distribution
of Stock.   Within ninety (90) days after the occurrence of the earlier of the following,
the Company will issue and distribute to Participant or Participant’s
designated beneficiary the number of shares of Common Stock equal to the
quotient of the vested portion of the Participant’s Deferred Stock Account
divided by the value per share of the Common Stock as of the final trading day
of 2006.

 

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

 

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

 

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

 

ARTICLE V

MISCELLANEOUS

 

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

 

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

 

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

 

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

 

3

 

notification
to the Participants of any such amendments. No amendment shall impair any
Participant’s vested rights hereunder.

 

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

 

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

 

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

 

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

 

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

 

4

 

	
   

  	
   

  	
  AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  D. J. Noble,
  Chairman & President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Signed by Individual)

  

 

SCHEDULE OF STOCK CREDIT

PARTICIPATION

 

	
   

  	
   

  	
   

  	
  Percentage of Total

  	
   

  	
   

  	
   

  	
   

  
	
  Participant’s Name

  	
   

  	
  Stock Credit

  	
   

  	
   

  	
  Participant’s Beneficiary

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total

  	
  100

  	
  %

  	
   

  	
   

  	
   

  
									

 

5

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