Exhibit 10.1
------------
Amendment No. 1 dated May 17, 1999 to Employment Agreement for
Xxxxxx X. XxxXxxxxx
AMENDMENT NO. 1
TO
EMPLOYMENT AGREEMENT
THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (the "Amendment") is
executed as of May 17, 1999 by and between Life USA Holding, Inc., a Minnesota
corporation (the "Company") and Xxxxxx X. XxxXxxxxx (the "Executive").
R E C I T A L S:
WHEREAS, the Company and Executive are parties to that certain
Employment Agreement dated as of January 1, 1998 (the "Agreement");
WHEREAS, Allianz Life Insurance Company of North America, a Minnesota
corporation ("Parent"), and the Company have agreed to enter into an Agreement
and Plan of Merger, dated as of May 17, 1999 (the "Merger Agreement"), pursuant
to which a wholly owned subsidiary of Parent will be merged with and into the
Company and the Company will become a wholly owned subsidiary of Parent (the
"Merger"); and
WHEREAS, as a material condition and inducement to Parent's execution
of the Merger Agreement, the Executive and the Company have agreed to enter into
this Amendment.
NOW, THEREFORE, in consideration of the mutual premises and agreements
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Amendment. Effective as of the date hereof, Section 4(k) of the
Agreement is hereby amended by inserting the following text immediately
following the last sentence of Section 4(k):
Notwithstanding the foregoing provisions of this Section 4(k),
a "Change of Control" shall not be deemed to have occurred
with respect to any of the following:
(a) the execution of this Agreement;
(b) the acquisition by Allianz Life Insurance Company
of North America or any of its direct or indirect subsidiaries
or affiliates (collectively, "Allianz") of all or
substantially all of the voting securities, business or assets
of
the Company or the merger of Allianz with and into the
Company (or the merger of the Company with and into Allianz);
(c) any change in the membership of the Board of
Directors of the Company in connection with, or the approval
of the stockholders of the Company of, any action under item
(b) above; or
(d) the execution of any agreement contemplated by
that certain Agreement and Plan of Merger executed between
Allianz Life Insurance Company of North America, Nova New Co.
and the Company.
2. Additional Amendments. Effective immediately upon the effectiveness
of the Merger:
(a) the second sentence of Section 1 of the Agreement is
hereby amended and restated in its entirety to read as follows:
In discharging such duties and responsibilities, the Executive
may also serve as an executive officer and/or director of any
direct or indirect subsidiary of the Company (collectively the
"Subsidiaries", and together with any direct or indirect
parent of the Company and any other direct or indirect
subsidiary of any such parent, collectively the "Affiliates")
or of any Affiliate.
(b) Section 3(c) is hereby deleted in its entirety.
(c) each instance of the phrase "its Subsidiaries" in Sections
4(b), 5(a), 5(b), and 5(c) of the Agreement is hereby deleted and replaced with
the phrase "its Affiliates".
(d) each instance of the phrase "the Subsidiaries" in Sections
4(b), 5(b), 5(c) and 5(d) of the Agreement is hereby deleted and replaced with
the phrase "its Affiliates".
(e) the first sentence of Section 4(c) of the Agreement is
hereby amended and restated to read in its entirety as follows:
(c) Termination for Good reason by the Executive. By
following the procedure set forth in paragraph 4(e), the
Executive shall have the right to terminate the Executive's
employment with the Company for "Good Reason" in the event (i)
the Executive is not at all times a duly elected Chairman and
Chief Executive Officer of the Company or a holder of a
comparable title with an Affiliate; (ii) there is any material
reduction in the scope of the Executive's authority and
responsibility (provided, however, that the transfer of the
Executive to a position of substantially similar authority and
responsibility with an Affiliate shall not constitute a
"material reduction" in the scope of Executive's authority and
responsibility hereunder); (iii) there is a reduction in the
Executive's Base Salary, a material reduction in the amount of
Annual Bonus for which the Executive is eligible, an amendment
to any employee retirement plan applicable to the Executive
which is materially adverse to the Executive, or a material
reduction in the other benefits to which the Executive is
entitled under paragraph 3(e) above; (iv) the Company requires
the Executive's principal place of employment to be anywhere
other than the Company's or an Affiliate's principal executive
offices, or there is a relocation of such principal executive
offices outside of the Minneapolis/St. Xxxx, Minnesota
metropolitan area; or (v) the Company otherwise fails to
perform its obligations under this Agreement.
3. Full Force and Effect. Except as expressly set forth herein, the
Agreement as amended hereby shall continue in full force and effect in
accordance with its terms.
4. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be deemed to be an original and all
of which taken together shall constitute but one and the same instrument.
5. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Minnesota, without regard to the
principles thereof regarding conflict of laws.
IN WITNESS WHEREOF, the parties have executed this Agreement, each as
of the date first above written.
LIFE USA HOLDING, INC.
By /s/ Xxxx X. Xxxxxxxx
-----------------------------------
Its Chief Financial Officer
-----------------------------------
/s/ Xxxxxx X. XxxXxxxxx
----------------------------------------
Xxxxxx X. XxxXxxxxx
