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American Equity Investment Life Holding Co. – ‘10-Q’ for 3/31/21 – ‘EX-10.2’

On:  Monday, 5/10/21, at 4:10pm ET   ·   For:  3/31/21   ·   Accession #:  1039828-21-33   ·   File #:  1-31911

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  As Of               Filer                 Filing    For·On·As Docs:Size

 5/10/21  American Equity Inv Life Hold… Co 10-Q        3/31/21   75:13M

Quarterly Report   —   Form 10-Q

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML   1.57M 
 2: EX-10.1     Material Contract                                   HTML     68K 
 3: EX-10.2     Material Contract                                   HTML     44K 
 4: EX-31.1     Certification -- §302 - SOA'02                      HTML     28K 
 5: EX-31.2     Certification -- §302 - SOA'02                      HTML     28K 
 6: EX-32.1     Certification -- §906 - SOA'02                      HTML     25K 
 7: EX-32.2     Certification -- §906 - SOA'02                      HTML     25K 
14: R1          Cover Page                                          HTML     83K 
15: R2          Consolidated Balance Sheets                         HTML    105K 
16: R3          Consolidated Balance Sheets (Parentheticals)        HTML     63K 
17: R4          Consolidated Statements of Operations               HTML     91K 
18: R5          Consolidated Statements of Comprehensive Loss       HTML     46K 
19: R6          Consolidated Statements of Changes in               HTML     53K 
                Stockholders' Equity                                             
20: R7          Consolidated Statements of Cash Flows               HTML    158K 
21: R8          Significant Accounting Policies                     HTML     30K 
22: R9          Revision of Immaterial Misstatement in Prior Year   HTML     56K 
                Financial Statements                                             
23: R10         Fair Values of Financial Instruments                HTML    155K 
24: R11         Investments                                         HTML    277K 
25: R12         Mortgage Loans on Real Estate                       HTML    400K 
26: R13         Derivative Instruments                              HTML     89K 
27: R14         Notes Payable and Amounts Due Under Repurchase      HTML     34K 
                Agreements                                                       
28: R15         Commitments and Contingencies                       HTML     27K 
29: R16         Earnings Per Common Share and Stockholders' Equity  HTML     46K 
30: R17         Significant Accounting Policies (Policies)          HTML     71K 
31: R18         Revision of Immaterial Misstatement in Prior Year   HTML     55K 
                Financial Statements (Tables)                                    
32: R19         Fair Values of Financial Instruments (Tables)       HTML    138K 
33: R20         Investments (Tables)                                HTML    276K 
34: R21         Mortgage Loans on Real Estate (Tables)              HTML    394K 
35: R22         Derivative Instruments (Tables)                     HTML     91K 
36: R23         Notes Payable and Amounts Due Under Repurchase      HTML     35K 
                Agreements (Tables)                                              
37: R24         Earnings Per Common Share and Stockholders' Equity  HTML     39K 
                (Tables)                                                         
38: R25         Significant Accounting Policies (Narrative)         HTML     29K 
                (Details)                                                        
39: R26         Revision of Immaterial Misstatement in Prior Year   HTML     93K 
                Financial Statements (Reconciliation from                        
                Previously Reported Amounts to Revised Amounts)                  
                (Details)                                                        
40: R27         Fair Values of Financial Instruments (Narrative)    HTML     49K 
                (Details)                                                        
41: R28         Fair Values of Financial Instruments (Fair Values   HTML     59K 
                and Carrying Amounts of Financial Instruments)                   
                (Details)                                                        
42: R29         Fair Values of Financial Instruments (Assets and    HTML    101K 
                Liabilities Measured on a Recurring Basis by Fair                
                Value Hierarchy) (Details)                                       
43: R30         Fair Values of Financial Instruments (Assumptions   HTML     59K 
                Used in Estimating Fair Value) (Details)                         
44: R31         Fair Values of Financial Instruments                HTML     37K 
                (Reconciliation of Beginning and Ending Balances                 
                of Level 3 Liabilities) (Details)                                
45: R32         Investments (Narrative) (Details)                   HTML     35K 
46: R33         Investments (Schedule of Fixed Maturity             HTML     80K 
                Securities) (Details)                                            
47: R34         Investments (Fixed Maturity Securities by           HTML     80K 
                Contractual Maturity) (Details)                                  
48: R35         Investments (Net Unrealized Gains on Available for  HTML     35K 
                Sale Fixed Maturity Securities Reported as a                     
                Separate Component of Stockholders' Equity)                      
                (Details)                                                        
49: R36         Investments (Credit Quality of Fixed Maturity       HTML     45K 
                Security Portfolio by NAIC Designation) (Details)                
50: R37         Investments (Gross Unrealized Losses on             HTML    120K 
                Investments, By Category and Length of Time)                     
                (Details)                                                        
51: R38         Investments (Changes in Net Unrealized              HTML     38K 
                Gains/Losses on Investments) (Details)                           
52: R39         Investments (Net Realized Gains (Losses) on         HTML     46K 
                Invesments) (Details)                                            
53: R40         Investments (Rollforward of Allowance for Credit    HTML     57K 
                Losses) (Details)                                                
54: R41         Mortgage Loans on Real Estate (Narrative)           HTML     54K 
                (Details)                                                        
55: R42         Mortgage Loans on Real Estate (Summary of Mortgage  HTML     48K 
                Loan Portfolio) (Details)                                        
56: R43         Mortgage Loans on Real Estate (Commercial Mortgage  HTML     72K 
                Loan Portfolio Summarized by Geographic Region and               
                Property Type) (Details)                                         
57: R44         Mortgage Loans on Real Estate (Rollforward of       HTML     45K 
                Valuation Allowance on Mortgage Loan Portfolios)                 
                (Details)                                                        
58: R45         Mortgage Loans on Real Estate (Summary By Debt      HTML    121K 
                Service Coverage and Loan to Value Ratios)                       
                (Details)                                                        
59: R46         Mortgage Loans on Real Estate (Aging of Financing   HTML    102K 
                Receivables) (Details)                                           
60: R47         Derivative Instruments (Narrative) (Details)        HTML     34K 
61: R48         Derivative Instruments (Fair Value of Derivative    HTML     37K 
                Instruments as Presented in the Consolidated                     
                Balance Sheets) (Details)                                        
62: R49         Derivative Instruments (Change in Fair Value of     HTML     39K 
                Derivatives Included in the Consolidated Statement               
                of Operations) (Details)                                         
63: R50         Derivative Instruments (Derivative Call Options,    HTML     59K 
                Notional Amount and Fair Value, by Counterparty)                 
                (Details)                                                        
64: R51         Notes Payable and Amounts Due Under Repurchase      HTML     34K 
                Agreements (Schedule of Notes Payable) (Details)                 
65: R52         Notes Payable and Amounts Due Under Repurchase      HTML     33K 
                Agreements (2027 Notes Narrative) (Details)                      
66: R53         Notes Payable and Amounts Due Under Repurchase      HTML     28K 
                Agreements (Repurchase Agreements Narrative)                     
                (Details)                                                        
67: R54         Commitments and Contingencies (Narrative)           HTML     28K 
                (Details)                                                        
68: R55         Earnings Per Common Share and Stockholders' Equity  HTML     53K 
                (Schedule of Earnings Per Common Share, Basic and                
                Diluted) (Details)                                               
69: R56         Earnings Per Common Share and Stockholders' Equity  HTML     45K 
                (Stockholders' Equity) (Details)                                 
70: R57         Earnings Per Common Share and Stockholders' Equity  HTML     40K 
                (Brookfield Asset Management Equity Investment)                  
                (Details)                                                        
71: R58         Earnings Per Common Share and Stockholders' Equity  HTML     49K 
                (Share Repurchase Program and Treasury Stock)                    
                (Details)                                                        
73: XML         IDEA XML File -- Filing Summary                      XML    141K 
13: XML         XBRL Instance -- ael-20210331_htm                    XML   4.39M 
72: EXCEL       IDEA Workbook of Financial Reports                  XLSX    117K 
 9: EX-101.CAL  XBRL Calculations -- ael-20210331_cal                XML    263K 
10: EX-101.DEF  XBRL Definitions -- ael-20210331_def                 XML    986K 
11: EX-101.LAB  XBRL Labels -- ael-20210331_lab                      XML   1.80M 
12: EX-101.PRE  XBRL Presentations -- ael-20210331_pre               XML   1.12M 
 8: EX-101.SCH  XBRL Schema -- ael-20210331                          XSD    172K 
74: JSON        XBRL Instance as JSON Data -- MetaLinks              374±   600K 
75: ZIP         XBRL Zipped Folder -- 0001039828-21-000033-xbrl      Zip    427K

‘EX-10.2’   —   Material Contract

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Exhibit 10.2
PERFORMANCE BASED AWARD

EMPLOYEE RESTRICTED STOCK UNIT
AWARD AGREEMENT
This Employee Restricted Stock Unit Award Agreement (this “Agreement”), dated as of _____________ ___. 20__ (the “Date of Grant”), is made by and between American Equity Investment Life Holding Company, an Iowa corporation (the “Company”), and _______________ (the “Participant”). Capitalized terms not defined herein shall have the meaning ascribed to them in the American Equity Investment Life Holding Company Amended and Restated Equity Incentive Plan (the “Plan”). Except where the context indicates otherwise, references to the Company shall include any successor to the Company.
WHEREAS, the Company and certain Affiliates have adopted the Plan under which participants may receive restricted stock units that are subject to performance-based vesting conditions;
WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) recommended restricted stock units (“RSUs”) for the Participant under the Plan and the Board of Directors of the Company approved such RSUs, and pursuant to the terms of the award, the Participant shall receive the number of RSUs provided for herein;
NOW, THEREFORE, in consideration for the promises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:
1.Grant of Restricted Stock Unit Award. The Company hereby grants to the Participant __________ RSUs (such number, the “Target Number” of RSUs) on the terms and conditions set forth in this Agreement and as otherwise provided in the Plan (the “Award”).
2.Restrictions. The RSUs may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered and shall be subject to a risk of forfeiture as described in Section 3 until such restrictions have lapsed in accordance with Section 3 hereof. Upon any attempt by the Participant to transfer any of the RSUs or any rights in respect of the RSUs before the lapse of such restrictions, such RSUs and all of the rights related thereto, shall be immediately forfeited by the Participant without payment of any consideration. The restrictions applicable to the RSUs shall lapse only in accordance with Section 3 hereof.
3.Vesting/Forfeiture
a.General. Subject to Sections 3(b)-(e) below, the restrictions applicable to the RSUs, as described in Section 2 hereof, shall lapse with respect to one-hundred percent (100%) of the RSUs at the end of the Performance Period (as defined herein).
b.Death/Disability/Retirement. Notwithstanding any other provisions in this Agreement to the contrary, in the event of a termination of the Participant’s employment with the Company due to the Participant’s death or Disability, or due to the Participant’s Retirement, the restrictions applicable to the RSUs, as described in Section 2 hereof, shall lapse with respect to one-hundred percent (100%) of the RSUs.
c.Termination other than Death/Disability/Retirement/For Cause. If, after attainment of the performance objectives, (A) the Participant’s employment ends due to a termination initiated by the Company other than For Cause or Detrimental Activity (each as defined in the Plan) or, for Participants with a Change in Control Agreement, termination is initiated by the Participant for Good Reason (as defined in the Participant’s Change in Control Agreement) and (B) the Company, has offered the Participant an agreement in connection with their separation (including, but not limited to, a Change In Control Agreement), and (C) that agreement has been fully executed and become final under applicable law, then the remaining restrictions applicable to the RSUs, as described in Section 2 hereof, shall lapse with respect to one-hundred percent (100%) of the RSUs on the date that all three of (A) through (C) above have been satisfied.
d.Notwithstanding any other provisions in this Agreement to the contrary, in the event of a termination of the Participant’s employment with the Company for any reason other than those listed in Section 3 (b), (c) and (e), including termination by the Company or the relevant Affiliate For Cause, the RSUs shall be forfeited at the close of business on the effective date of such termination.
e.Change in Control. Notwithstanding any other provisions in this Agreement to the contrary, in the event of a Change in Control, the RSUs shall be treated in accordance with Section 10.1 and Section 10.2 of the Plan.


PERFORMANCE BASED AWARD
f.Other Termination of Service. Notwithstanding any other provisions in this Agreement to the contrary if, prior to the date on which the restrictions described in Section 2 hereof have lapsed in accordance with Section 3(a), (b), (c) (d) or (e) above, the Participant’s employment with the Company shall terminate for any reason other than as described in Section 3(b), (c) or (e) herein, the RSUs shall immediately be forfeited without consideration.
4.Shareholder Rights. The RSUs are bookkeeping entries only. The Participant shall not have any privileges of a shareholder of the Company with respect to the RSUs awarded hereunder, including without limitation any right to vote shares of Common Stock underlying the RSUs or to receive dividends or other distributions in respect thereof (provided that any dividends or dividend equivalents on the RSUs shall only become payable on the same date on which the RSU from which the dividend equivalent right is derived is paid, subject to the terms hereof). All such dividend equivalent rights shall be subject to the same vesting requirements that apply to RSUs from which the dividend equivalent rights are derived.
5.Legend on Certificates. Certificates evidencing the RSUs awarded to the Participant hereunder shall bear such legends as the Company may determine in its sole discretion.
6.Securities Laws Requirements. The Company shall not be obligated to issue Common Stock to the Participant free of any restrictive legend described in Section 5 hereof or of any other restrictive legend, if such transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as amended (the “Securities Act”) (or any other federal or state statutes having similar requirements as may be in effect at that time).
7.No Obligation to Register. The Company shall be under no obligation to register the RSUs pursuant to the Securities Act or any other federal or state securities laws.
8.Performance-Based Requirements. For the [●] year period ended [●] (the “Performance Period”), the Participant shall be credited with a number of RSUs equal to the Target Number of RSUs multiplied by a percentage that (1) will be determined by the Committee after the Performance Period based on the Company’s achievement of financial performance objectives established for the Performance Period and (2) will be between 0% and 200%. The performance objectives and the methodology for establishing the number of RSUs to be credited are set forth in Exhibit A hereto. The Committee shall, following the end of the Performance Period, determine whether and the extent to which the performance objectives for the Performance Period have been satisfied and the number of RSUs to be credited to the Participant. Such determinations by the Committee shall be final and binding. Any RSUs that are not credited to the Participant in accordance with the foregoing provisions of this Section 8 shall terminate upon the date of such determinations by the Committee.
9.Timing and Manner of Payment of RSUs. As soon as practicable after (and in no case more than seventy-four days after) the end of the Performance Period (the “Payment Date”), such RSUs shall be paid by the Company delivering to the Participant a number of Shares equal to the number of RSUs that are non-forfeitable on that Payment Date (rounded down to the nearest whole share). The Company shall issue the Shares either (i) in certificate form or (ii) in book entry form, registered in the name of the Participant. Delivery of any certificates will be made to the Participant’s last address reflected on the books of the Company and its Affiliates unless the Company is otherwise instructed in writing. The Participant shall not be required to pay any cash consideration for the RSUs or for any Shares received pursuant to the Award. Neither the Participant nor any of the Participant’s successors, heirs, assigns or personal representatives shall have any further rights or interests in any RSUs that are so paid. Notwithstanding anything herein to the contrary, the Company shall have no obligation to issue Shares in payment of the RSUs unless such issuance and such payment shall comply with all relevant provisions of law and the requirements of any stock exchange on which the Shares are listed.
10.Payments to “Specified Employees” Under Certain Circumstances. Notwithstanding the provisions of Section 3 and Section 4 hereof, if the Grantee is deemed a “specified employee” (as such term is described in Section 409A of the Code and the treasury regulations thereunder (the “Code”)) at a time when such Grantee becomes eligible for payment upon a “separation from service” with the Company or any of its Affiliates, to the extent required to avoid taxation under Section 409A of the Code, such payments shall be made to the Grantee on the date that is six (6) months following such “separation from service,” or upon the Grantee’s death, if earlier.
11.Taxes. The Participant understands that he or she (and not the Company) shall be responsible for any tax liability that may arise with respect to the RSUs granted under this Agreement. The Participant shall pay to the Company, or make provision satisfactory to the Company for payment of, any taxes or social insurance contributions required by law to be withheld with respect to the RSUs no later than the date of the event creating such tax liability. The Participant may satisfy the foregoing requirement by making a payment to the Company in cash or, in the Committee’s discretion, such amount may be paid in whole or in part by electing to have the Company retain the Participant’s Shares, with the retained Shares having a value equal to the amount of tax to be so withheld. Such Shares shall be valued at their Fair Market Value on the date of retention or delivery. If a Participant makes an election under Section 83(b) of the Code to be taxed with respect to the RSUs as of the date of transfer of the RSUs rather than as of the date or dates upon which the Participant would otherwise be taxable under


PERFORMANCE BASED AWARD
Section 83(a) of the Code, the Participant shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service.
12.Failure to Enforce Not a Waiver. The failure of the Company to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
13.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa.
14.Incorporation of Plan. The Plan is hereby incorporated by reference and made a part hereof, and the RSUs and this Agreement shall be subject to all terms and conditions of the Plan and this Agreement.
15.Agreement Binding on Successors. The terms of this Agreement shall be binding upon the Participant and upon the Participant’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest, and upon the Company and its successors and assignees.
16.No Assignment. Notwithstanding anything to the contrary in this Agreement, neither this Agreement nor any rights granted herein shall be assignable by the Participant.
17.Necessary Acts. The Participant hereby agrees to perform all acts, and to execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement, including but not limited to all acts and documents related to compliance with federal and/or state securities and/or tax laws.
18.Entire Agreement. This Agreement contains the entire agreement and understanding among the parties as to the subject matter hereof.
19.Headings. Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or descriptive of the contents of any such Section.
20.Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.
21.Amendment. The Committee may amend the terms of this Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights of the Participant hereunder without his or her consent.
[Remainder of page intentionally left blank.]



PERFORMANCE BASED AWARD
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

AMERICAN EQUITY INVESTMENT LIFE
HOLDING COMPANY
PARTICIPANT


PERFORMANCE BASED AWARD
EXHIBIT A

% of Performance
Award Earned
Threshold 50%
Target 100%
Maximum 200%
[INSERT
PERFORMANCE
OBJECTIVES]		[INSERT LEVELS][INSERT LEVELS][INSERT LEVELS]
[INSERT
PERFORMANCE
OBJECTIVES]		[INSERT LEVELS][INSERT LEVELS][INSERT LEVELS]
[INSERT
PERFORMANCE
OBJECTIVES]		[INSERT LEVELS][INSERT LEVELS][INSERT LEVELS]




Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
Filed on:5/10/21None on these Dates
For Period end:3/31/21
 List all Filings 

4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 4/29/24  American Equity Inv Life Hold… Co 10-K/A     12/31/23   14:934K
 2/29/24  American Equity Inv Life Hold… Co 10-K       12/31/23  155:26M
 2/28/23  American Equity Inv Life Hold… Co 10-K       12/31/22  134:24M
 3/01/22  American Equity Inv Life Hold… Co 10-K       12/31/21  135:23M
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