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BONUS METRIC SCHEDULE
For
2009 Restricted Stock Agreement
Between
James E. Hohmann (Employee) & FBL Financial Group, Inc.
(Company)
The
qualifications for consideration of the amount of Forfeiture
Restrictions which shall lapse (if any) by the Contingent Lapse
Date under Paragraph 2(b)(ii) of the Restricted Stock
Agreement dated April 29, 2009 shall be made in accord with
the following:
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1.
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Lapse Conditions
. The Forfeiture
Restrictions may lapse as to the shares subject to
Paragraph 2(b)(ii) of the Restricted Stock Agreement as
follows:
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Goal
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% Forfeiture Restrictions
Lapse
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20% increase in
Class A Common Share Price
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100
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%
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10% increase in
Class A Common Share Price
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50
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%
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5% increase in
Class A Common Share Price
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0
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%
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Percentage increases in Class A
Common Share Price between 5% and 10%, and between 10% and 20%,
will result in a prorated increase in the percentage of shares as
to which Forfeiture Restrictions lapse. The percentage increase (if
any) in Class A Common Share Price shall be calculated as
follows: [Closing Stock Price (End of Term of Employment) +
Dividend Per Share (during Term of Employment)] — Closing
Stock Price (Day prior to Start of Term of Employment) ÷
Closing Stock Price (Day prior to Start of Term of Employment). The
Closing Stock Price (Day prior to Start Term of Employment) is
agreed to be $5.52.
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2.
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Additional Considerations
. To the extent that the
conditions set forth in Paragraph 1 above are met as to the
lapse of any Forfeiture Restrictions, the following additional
criteria may be used in determining the number (if any) of shares
to which the Forfeiture Restriction lapse may apply:
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A)
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Description
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Weighting Factor
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Rating
Restoration of Life Companies
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60
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%
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Create a plan designed to restore AM
Best ratings to Farm Bureau Life Insurance Company and EquiTrust
Life Insurance Company to A (Excellent) by ***.
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For
purposes of measurement during the Term of Employment, achievement
of any one of the items from Class I; or any two of the items
from Class II; or any four items from Class III, all as
listed below, may be considered 100% attainment of this
goal.
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Class I:
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•
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Upgrade of Farm Bureau Life
(FBL) by AM Best
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•
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Removal of negative outlook by AM
Best from EquiTrust Life (ET)
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Confidential materials omitted
and filed separately with the Securities and Exchange Commission.
Asterisks
denote such omission.
Bonus Metric Schedule —
Page 1
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Note: Any downgrade of either
company or rating or outlook would erase any upgrade of the other
company as it pertains to this Schedule.
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Class II:
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•
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Maintain or improve RBC ratio of
FBL, while increasing ET RBC ratio by *** points (both measured
from levels as of March 31, 2009).
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Reduction in the portfolio’s
March 31, 2009 unrealized loss position by $***, without
realizing losses or other than temporary impairments through
attainment of goal, calculated prior to accounting
offsets.
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•
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Reduction in the dollar amount of
debt at holding company by *** (change measured from level as of
March 31, 2009), without dilution to current Class A
shareholders.
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Increase ET ROE by ***. ROE shall be
calculated using operating income, with securities amortized at
cost.
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Develop and implement new annuity
product portfolio at ET with ***% or greater unlevered IRR’s
at ***% RBC and ***. Product approval required from states from
which half of ET’s 2008 annuity premium was
received.
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•
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***.
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