Document:

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                                                                    Exhibit 10.7

                      EXCHANGE NATIONAL STATUTORY TRUST II
                       EXCHANGE NATIONAL BANCSHARES, INC.

                             SUBSCRIPTION AGREEMENT

                                 MARCH 17, 2005

     THIS SUBSCRIPTION AGREEMENT (this "Agreement") made among Exchange National
Statutory Trust II (the "Trust"), a statutory trust created under the Delaware
Statutory Trust Act (Chapter 38 of Title 12 of the Delaware Code, 12 Del. C.
Sections 3801, et seq.), Exchange National Bancshares, Inc., a Missouri
corporation, with its principal offices located at 132 East High Street,
Jefferson City, Missouri 65102 (the "Company" and, collectively with the Trust,
the "Offerors"), and Preferred Term Securities XVII, Ltd. (the "Purchaser").

                                    RECITALS:

     A. The Trust desires to issue 23,000 of its Fixed/Floating Rate Capital
Securities (the "Capital Securities"), liquidation amount $1,000.00 per Capital
Security, representing an undivided beneficial interest in the assets of the
Trust (the "Offering"), to be issued pursuant to an Amended and Restated
Declaration of Trust (the "Declaration") by and among the Company, Wilmington
Trust Company ("WTC"), the administrators named therein, and the holders (as
defined therein), which Capital Securities are to be guaranteed by the Company
with respect to distributions and payments upon liquidation, redemption and
otherwise pursuant to the terms of a Guarantee Agreement between the Company and
WTC, as trustee (the "Guarantee"); and

     B. The proceeds from the sale of the Capital Securities will be combined
with the proceeds from the sale by the Trust to the Company of its common
securities, and will be used by the Trust to purchase an equivalent amount of
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures of the
Company (the "Debentures") to be issued by the Company pursuant to an indenture
to be executed by the Company and WTC, as trustee (the "Indenture"); and

     C. In consideration of the premises and the mutual representations and
covenants hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE I

                     PURCHASE AND SALE OF CAPITAL SECURITIES

     1.1. Upon the execution of this Agreement, the Purchaser hereby agrees to
purchase from the Trust 23,000 Capital Securities at a price equal to $1,000.00
per Capital Security (the "Purchase Price") and the Trust agrees to sell such
Capital Securities to the Purchaser for said Purchase Price. The rights and
preferences of the Capital Securities are set forth in the Declaration. The
Purchase Price is payable in immediately available funds on March 17, 2005, or
such other business day as may be designated by the Purchaser, but in no event
later than March 31, 2005 (the "Closing Date"). The Offerors shall provide the
Purchaser wire transfer instructions no later than 1 day following the date
hereof.

     1.2. The certificate for the Capital Securities shall be delivered by the
Trust on the Closing Date to the Purchaser or its designee.

     1.3. The Placement Agreement, dated March 9, 2005 (the "Placement
Agreement"), among the Offerors and the Placement Agents identified therein
includes certain representations and warranties, covenants and conditions to
closing and certain other matters governing the Offering. The Placement
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Agreement is hereby incorporated by reference into this Agreement and the
Purchaser shall be entitled to each of the benefits of the Placement Agents and
the Purchaser under the Placement Agreement and shall be entitled to enforce the
obligations of the Offerors under such Placement Agreement as fully as if the
Purchaser were a party to such Placement Agreement.

                                   ARTICLE II

                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

     2.1. The Purchaser understands and acknowledges that neither the Capital
Securities, the Debentures nor the Guarantee have been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any other
applicable securities law, are being offered for sale by the Trust in
transactions not requiring registration under the Securities Act, and may not be
offered, sold, pledged or otherwise transferred by the Purchaser except in
compliance with the registration requirements of the Securities Act or any other
applicable securities laws, pursuant to an exemption therefrom or in a
transaction not subject thereto.

     2.2. The Purchaser represents, warrants and certifies that (i) it is not a
"U.S. person" as such term is defined in Rule 902 under the Securities Act, (ii)
it is not acquiring the Capital Securities for the account or benefit of any
such U.S. person, (iii) the offer and sale of Capital Securities to the
Purchaser constitutes an "offshore transaction" under Regulation S of the
Securities Act, and (iv) it will not engage in hedging transactions with regard
to the Capital Securities unless such transactions are conducted in compliance
with the Securities Act and the Purchaser agrees to the legends and transfer
restrictions set forth on the Capital Securities certificate.

     2.3. The Purchaser represents and warrants that it is purchasing the
Capital Securities for its own account, for investment, and not with a view to,
or for offer or sale in connection with, any distribution thereof in violation
of the Securities Act or other applicable securities laws, subject to any
requirement of law that the disposition of its property be at all times within
its control and subject to its ability to resell such Capital Securities
pursuant to an effective registration statement under the Securities Act or
under Rule 144A or any other exemption from registration available under the
Securities Act or any other applicable Securities law.

     2.4. The Purchaser represents and warrants that it has full power and
authority to execute and deliver this Agreement, to make the representations and
warranties specified herein, and to consummate the transactions contemplated
herein and it has full right and power to subscribe for Capital Securities and
perform its obligations pursuant to this Agreement.

     2.5. The Purchaser, a Cayman Islands Company whose business includes
issuance of certain notes and acquiring the Capital Securities and other similar
securities, represents and warrants that it has such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of purchasing the Capital Securities, has had the opportunity to ask
questions of, and receive answers and request additional information from, the
Offerors and is aware that it may be required to bear the economic risk of an
investment in the Capital Securities.

     2.6. The Purchaser represents and warrants that no filing with, or
authorization, approval, consent, license, order, registration, qualification or
decree of, any governmental body, agency or court having jurisdiction over the
Purchaser, other than those that have been made or obtained, is necessary or
required for the performance by the Purchaser of its obligations under this
Agreement or to consummate the transactions contemplated herein.

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     2.7. The Purchaser represents and warrants that this Agreement has been
duly authorized, executed and delivered by the Purchaser.

     2.8. The Purchaser represents and warrants that (i) the Purchaser is not in
violation or default of any term of its Memorandum of Association or Articles of
Association, of any provision of any mortgage, indenture, contract, agreement,
instrument or contract to which it is a party or by which it is bound or of any
judgment, decree, order, writ or, to its knowledge, any statute, rule or
regulation applicable to the Purchaser which would prevent the Purchaser from
performing any material obligation set forth in this Agreement; and (ii) the
execution, delivery and performance of and compliance with this Agreement, and
the consummation of the transactions contemplated herein, will not, with or
without the passage of time or giving of notice, result in any such material
violation, or be in conflict with or constitute a default under any such term,
or the suspension, revocation, impairment, forfeiture or non-renewal of any
permit, license, authorization or approval applicable to the Purchaser, its
business or operations or any of its assets or properties which would prevent
the Purchaser from performing any material obligations set forth in this
Agreement.

     2.9. The Purchaser represents and warrants that the Purchaser is an
exempted company with limited liability duly incorporated, validly existing and
in good standing under the laws of the jurisdiction where it is organized, with
full power and authority to perform its obligations under this Agreement.

     2.10. The Purchaser understands and acknowledges that the Company will rely
upon the truth and accuracy of the foregoing acknowledgments, representations,
warranties and agreements and agrees that, if any of the acknowledgments,
representations, warranties or agreements deemed to have been made by it by its
purchase of the Capital Securities are no longer accurate, it shall promptly
notify the Company.

     2.11. The Purchaser understands that no public market exists for any of the
Capital Securities, and that it is unlikely that a public market will ever exist
for the Capital Securities.

                                   ARTICLE III

                                  MISCELLANEOUS

     3.1. Any notice or other communication given hereunder shall be deemed
sufficient if in writing and sent by registered or certified mail, return
receipt requested, international courier or delivered by hand against written
receipt therefor, or by facsimile transmission and confirmed by telephone, to
the following addresses, or such other address as may be furnished to the other
parties as herein provided:

          To the Offerors: Exchange National Bancshares, Inc.
                           132 East High Street
                           Jefferson City, Missouri 65102
                           Attention: Kathleen Bruegenhemke
                           Fax: 573-761-6272

          To the Purchaser: Preferred Term Securities XVII, Ltd.
                            c/o Maples Finance Limited
                            P.O. Box 1093 GT
                            Queensgate House
                            South Church Street
                            George Town, Grand Cayman
                            Cayman Islands
                            Attention: The Directors
                            Fax: 345-945-7100

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          Unless otherwise expressly provided herein, notices shall be deemed to
have been given on the date of mailing, except notice of change of address,
which shall be deemed to have been given when received.

     3.2. This Agreement shall not be changed, modified or amended except by a
writing signed by the parties to be charged, and this Agreement may not be
discharged except by performance in accordance with its terms or by a writing
signed by the party to be charged.

     3.3. Upon the execution and delivery of this Agreement by the Purchaser,
this Agreement shall become a binding obligation of the Purchaser with respect
to the purchase of Capital Securities as herein provided.

     3.4. NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY
OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT ALL THE TERMS AND
PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

     3.5. The parties agree to execute and deliver all such further documents,
agreements and instruments and take such other and further action as may be
necessary or appropriate to carry out the purposes and intent of this Agreement.

     3.6. This Agreement may be executed in one or more counterparts each of
which shall be deemed an original, but all of which shall together constitute
one and the same instrument.

     3.7. In the event that any one or more of the provisions contained herein,
or the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired or affected, it being
intended that all of the Offerors' and the Purchaser's rights and privileges
shall be enforceable to the fullest extent permitted by law.

                     Signatures appear on the following page

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     IN WITNESS WHEREOF, I have set my hand the day and year first written
above.

PREFERRED TERM SECURITIES XVII, LTD.

BY: /s/ Carrie Bunton
    ---------------------------------
Print Name: Carrie Bunton
Title: Director

     IN WITNESS WHEREOF, this Agreement is agreed to and accepted as of the day
and year first written above.

                                        EXCHANGE NATIONAL BANCSHARES, INC.

                                        By: /s/ Illegible
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        EXCHANGE NATIONAL STATUTORY TRUST II

                                        By: /s/ David T. Turner
                                            ------------------------------------
                                        Name: David T. Turner
                                        Title: Administrator

                                        5exv10w4

 

Exhibit 10.4

ROYALTY AGREEMENT

THIS AGREEMENT (hereinafter “Agreement”), effective on the date hereinafter set forth, by and
between Farm Bureau Life Insurance Company, an Iowa Corporation, and Farm Bureau Mutual Insurance
Company, an Iowa Corporation, hereinafter referred to collectively as “Companies” and the
undersigned _________ Farm Bureau Federation (hereinafter “Federation”).

WITNESSETH:

WHEREAS, the Federation has the exclusive right to the use and benefit of the name “Farm
Bureau” and the logo “FB” (hereinafter collectively the “Marks”) within the State of _________; and

WHEREAS, an essential purpose of the Federation is to raise the quality of life of the
residents of rural _________; and

WHEREAS, the above-described Companies assist in elevating the quality of life of rural
residents and Farm Bureau members within the State of
_________ by making insurance products
available to them.

NOW, THEREFORE, the parties hereto, in consideration of their mutual obligations and other good and
valuable consideration, as recited herein, agree as follows:

     1. The Federation shall permit the Companies to use the name “Farm Bureau” and the logo “FB”
and all other intangible benefits associated therewith, in exchange for an annual royalty payable
to the Federation by the Companies in accordance with the formula contained in the attached
“Schedule A”, which by this reference is incorporated herein and made a part hereof.

     2. The royalty payments received by the Federation are not compensation to the Federation for
services performed for the Companies.

     3. The Federation will not provide any services to the Companies as a condition, nor in
exchange for the royalty payments received pursuant to this Agreement, other, than those duties
necessary to allow the Companies to use the Farm Bureau name, logo and related intangible benefits.

     4. The Companies pledge to use their best efforts to make their insurance products available
to _________ Farm Bureau members and other rural residents of the state.

     5. The Companies warrant and represent that they will use the Marks in accordance with any and
all restriction, limitations, or duties contained in the agreement between the Federation and the
American Farm Bureau Federation granting the license for the use of the Marks in the State of
_________.

1

 

Exhibit 10.4

     6. This Agreement shall take effect the 1st day of January, 2005, and shall continue in full
force from such date until the 31st day of December, 2014 (hereinafter “Initial Term”), and shall
automatically renew each January 1st thereafter for a one year period (hereinafter “Renewal
Terms”). This Agreement may be cancelled by either party prior to a Renewal Term, by such party
giving written notice at least sixty (60) days prior to the start of a Renewal Term stating to the
other party its intention to terminate the Agreement at the end of the current term.

     7. Notwithstanding the term provisions contained in paragraph 6 above, the Federation may also
terminate this Agreement at any time during an Initial or Renewal Term upon the transpiring of any
of the following events:

	 	a.  	A change of ownership or control of the Companies, within the meaning
of Iowa Code Section 521A or of FBL Financial Group, Inc.; or
	 
	 	b.  	The Companies enter into a royalty agreement with a State Farm Bureau
Federation with which the Companies do not currently have an existing agreement; or
	 
	 	c.  	The Companies renegotiate the terms of any existing Royalty Agreement
with a State Farm Bureau Federation; or
	 
	 	d.  	A decrease in the per share dividend currently being paid by FBL
Financial Group on its Class A common stock below that being paid as of the
effective date of this Agreement; or
	 
	 	e.  	A reduction of the proportional percentage of seats allocated to the
Federation on the boards of directors of any of the Companies, or FBL Financial
Group, Inc., below the proportional percentage of such seats held by the Federation
on each such board as of the effective date of this Agreement; or
	 
	 	f.  	A material breach of this Agreement by the Companies.

     A termination pursuant to this paragraph shall be effective sixty (60) days after mailing by
the Federation of a written notice to the Companies, stating the Federations’ intent to invoke the
special termination provisions of this paragraph. In order to carry out the provisions of this
paragraph, the Companies shall provide written notice to the Federation of the happening of any of
the events noted in subparagraphs “a”, “b”, or “c” herein within ten (10) days of the event
transpiring. The Federation shall thereafter provide notice of its intent to invoke a special
termination hereunder as a result of the events noted in subparagraphs “a”, “b”, or “c”, within
thirty (30) days of receipt of such notification by the Companies. (Note: The above termination
provisions of paragraph 7 herein, are in consideration of the Federation’s repayment of
$_________, to the Companies for previous royalty overpayments made by the Companies.)

     8. All written notices required pursuant to this Agreement shall be sent via certified mail,
to the following addresses, until revised by notice from one party to the other of a change:

2

 

Exhibit 10.4

     If to the Companies:

	 	 	 
	Name:

	 	 
	 
	Address:

	 	 
	 
	

	 	 

     If to the Federation:

	 	 	 
	Name:

	 	 
	 
	Address:

	 	 
	 
	

	 	 

     9. This Agreement shall supersede all other agreements now in effect between the parties
hereto, to the extent said agreements are contrary to the provisions agreed to herein. This
Agreement may not be amended, unless such amendment is in writing, and dilly executed by all
parties hereto.

     10. This Agreement is not assignable, unless express consent authorizing the assignment is
received from the non-assigning parties hereto.

     IN WITNESS WHEREOF, the parties hereto have set their hands to duplicates hereof on the
designated places.

FARM BUREAU LIFE INSURANCE COMPANY

	 	 	 
	By:
	 
	 
	Title:
	 

FARM BUREAU MUTUAL INSURANCE COMPANY

	 	 	 
	By:
	 
	 
	Title:
	 

________ FARM BUREAU FEDERATION

	 	 	 
	By:
	 
	 
	Title:
	 

3

 

Exhibit 10.4

ROYALTY AGREEMENT

SCHEDULE A

	 	1. The amount of the annual royalty to be paid to the Federation by the Companies pursuant to
Paragraph of the Parties Royalty Agreement shall be the great of (a) or (b), plus (c), below:

	 	a.  	Three percent (3%) of all first-year life, long term care and disability
insurance premiums, and three-tenths of one percent (0.3%) of all first-year
annuity premiums and Universal Life and Variable Universal Life premiums in excess
of the minimum initial premium, received and retained by Farm Bureau Life
Insurance Company or by unaffiliated companies with which one or more of the
Companies has a marketing agreement for products sold by Companies agents within
the calendar year on issued and paid for business sold within the State of
_________; or
	 
	 	b.  	Sixth-tenths of one percent (0.6%) of all life, long term care
and disability insurance premiums, and six one-hundredths of one percent (0.06%) of
all annuity premiums and Universal Life and Variable Universal Life premiums in
excess of the minimum initial premium, received and retained by Farm Bureau
Life Insurance Company or by unaffiliated companies with which one or more of the
Companies has a marketing agreement for products sold by Companies agents within
the calendar year on issued and paid of business sold within the State of _________.
	 
	 	c.  	One percent (1%) of all automobile, personal lines, Country Squire,
commercial lines, crop hail, and multi-peril crop insurance (MPCI) premiums
received and retained by Farm Bureau Mutual Insurance Company within the calendar
year on issued and paid for business sold within the State of _________.

	 	2. The Companies shall pay one-twelfth (1/12) of the estimated annual royalty each month using the
formula in (a) and (c) above, and shall pay any additional amount due as soon after the end of the
calendar year as the actual royalty for the year can be calculated.

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