Document:

Exhibit

FBL FINANCIAL GROUP, INC.
CASH-BASED RESTRICTED SURPLUS UNIT PLAN
Effective November 18, 2015

1.Purpose of the Plan.  The purpose of the FBL Financial Group, Inc. Cash-Based Restricted Surplus Unit Plan (the “Plan”) is to attract and retain the best available personnel for positions of substantial responsibility, by providing additional incentive to officers, employees, advisors and consultants of FBL Financial Group, Inc. (the “Company”) and its affiliates identified by the Stock Subcommittee of the Management Development and Compensation Committee of the Board of Directors of the Company (the “Subcommittee”).  To facilitate the purpose of this Plan, the Subcommittee may issue restricted surplus units (the “Units”) to such officers, employees, advisors and consultants (the “Participants”) selected by it from time to time.  The value of a Participant’s Units shall be paid to them in cash or cash equivalents in accordance with the terms of this Plan.

2.Administration of the Plan.

2.1    General.  The Plan shall be administered by the Subcommittee.

2.2    Powers.  The Subcommittee shall have full discretionary power and authority to: (a) select the Participants to whom awards of Units may from time to time be granted hereunder (an “Award”); (b) determine the number of Units granted to each Participant pursuant to an Award; (c) determine the forfeiture, vesting and other terms, conditions and restrictions of any Award granted hereunder; (d) determine whether, to what extent, and under what circumstances Awards may be canceled; (e) interpret and administer the Plan and any instrument or agreement entered into under the Plan; (f) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (g) make any other determination and take any other action that the Subcommittee deems necessary or desirable for administration of the Plan, provided that such determination or action is not inconsistent with the terms of this Plan or any order or resolution of the Company’s Board of Directors.

2.3    Binding Authority. The decisions of the Subcommittee shall be final, conclusive, and binding with respect to the interpretation and administration of the Plan and Awards.  The Subcommittee shall make, in its sole discretion, all determinations arising in the administration, construction, or interpretation of the Plan and Awards, including the right to construe ambiguous or disputed Plan or Award terms and provisions, and any such determination shall be conclusive and binding on all Persons.

3.Terms and Conditions of Awards.
(a) Each Award shall consist solely of Units.
  
(b)On any date a Unit is granted, the Subcommittee shall designate the notional value thereof. Thereafter the value of such Unit (the “Value”) shall increase or decrease based on the financial performance of Farm Bureau Property & Casualty Insurance Company, upon such terms as may be determined by the Subcommittee in its sole discretion.

(c)The Units awarded to a Participant may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, except upon the death of a Participant by will or by the laws of descent and distribution.

(d)No Participant shall receive awards under this Plan in any calendar year with an aggregate value in excess of $3,000,000.

3.2    Award Agreements.  The number of Units granted to each Participant pursuant to an Award and the forfeiture, vesting and other terms, conditions and restrictions of any Award granted hereunder shall be set forth in a Restricted Surplus Unit Agreement in the form determined by the Subcommittee from time to time (the “Award Agreement”).  The terms of each Award Agreement may vary from one Award to another and from one Participant to another, but must in all cases be consistent with the terms of this Plan.  A Participant shall have no rights with respect to an Award and will be deemed to have rejected their Award unless and until they have signed and returned their Award Agreement to the Subcommittee within the time period designated by the Subcommittee.

3.3    Participant Accounts.  Upon the execution of an Award Agreement by a Participant, the Company shall establish a separate account maintained on the books of the Company (the “Participant Account”) and credit to such account the number of Units set forth in such Participant’s Award Agreement.  All amounts credited to the Participant’s Account shall for all purposes be a part of the general assets of the Company.  The Participant’s interest in his or her Participant Account shall only be that of a general, unsecured creditor of the Company.

3.4    Form and Timing of Payment.  The Participants shall be paid the Value of their Units in cash or cash equivalents in accordance with the terms of their Award Agreement and this Plan; provided, however:

(a)    Any payment that represents the deferral of compensation within Section 409A of the Internal Revenue Code of 1986, as amended from time to time, shall be made no earlier than allowed pursuant to Section 409A(a)(2) of the Code and, without limiting the foregoing, no payment shall be made to a “specified employee” as defined in Section 409A(a)(2)(B), earlier than allowed by Section 409A(a)(2)(B) of the Code;

(b)    Once designated in an Award Agreement, neither the time nor schedule of a payment may be accelerated in violation of Section 409A(a)(3) of the Code; and

(c)    Once designated in an Award Agreement, neither the time nor the schedule of a payment may be further deferred in violation of Section 409A(a)(4) of the Code.

4.Adjustments upon Changes in Capitalization.  Subject to Section 5 of this Plan, in the event of a “Change of Capitalization,” the Subcommittee shall conclusively determine the appropriate adjustments, if any, to the surplus of Farm Bureau Property & Casualty Insurance Company to which the Units relate and the number of Units granted to each Participant.  For purposes of this Plan, the term “Change of Capitalization” means any change in the surplus of Farm Bureau Property & Casualty Insurance Company by reason of a reclassification, recapitalization, merger, consolidation, reorganization, change in corporate structure or otherwise.

5.Statutory Compliance.

5.1    Section 409A.  This Plan and each Award Agreement shall, to the extent possible, be interpreted and operated in a manner to avoid the application of Section 409A(a)(1) of the Code.  Notwithstanding anything in this Plan or an Award Agreement to the contrary, the Subcommittee shall be authorized to take any unilateral action, including the amendment of this Plan and any Award Agreement, that it deems necessary or desirable to avoid the application of or noncompliance with Section 409A of the Code; provided, however, that neither the Company, the Subcommittee or any other officer, employee or agent shall have any liability to a Participant with respect to any amount paid or payable by the Participant by reason of the application or violation of Section 409A of the Code.

5.2    Section 162(m).  For so long as the Company is a “Publicly Held Corporation,” the terms of any Award granted to a “Covered Employee” shall, if designated as “Performance Based Compensation” by the Subcommittee, comply with Section 162(m)(4)(C) of the Code and the Treasury Regulations promulgated thereunder.  The terms “Publicly Held Corporation, “Covered Employee” and “Performance Based Compensation” shall each have the definitions set forth in Section 162(m) of the Code.  The terms of this Plan and any applicable Award Agreement shall be interpreted and operated in a manner consistent with the foregoing and any discretion that the Subcommittee has that is inconsistent with the foregoing shall be null and void as to such Award.  Notwithstanding anything in this Plan or an Award Agreement to the contrary, the Subcommittee shall be authorized to take any unilateral action, including the amendment of this Plan and any Award Agreement, that it deems necessary or desirable to cause any Award intended to qualify as Performance Based Compensation to comply with Section 162(m)(4)(C) of the Code and the Treasury Regulations promulgated thereunder.

6.    Non-exclusivity.  The adoption of the Plan by the Company shall not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Company to adopt such other incentive arrangements as it may deem desirable and such arrangements may be either applicable generally or only in specific cases.

7.    Amendment and Termination.  The Board of Directors of the Company may amend, suspend, discontinue, or terminate the Plan or any portion thereof in a manner consistent with Section 5 of the Plan.

8.    Choice of Law and Venue.  This Plan, and the application or interpretation hereof, shall be governed exclusively by its terms and by the laws of the State of Iowa, without regard to its choice of law provisions.  

Certificate of Secretary
I, Denny J. Presnall, Secretary of FBL Financial Group, Inc., do hereby certify that the foregoing FBL FINANCIAL GROUP, INC. CASH-BASED RESTRICTED SURPLUS UNIT PLAN was approved by the Management Development and Compensation Committee of the Board of Directors November 18, 2015.    
                        
By:     /s/ Denny J. Presnall            
Denny J. Presnall, Secretary
November 18, 2015Exhibit 10.18

 

NORTHERN OIL AND GAS, INC.

2013 EQUITY INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

FOR NON-EMPLOYEE DIRECTOR

Northern Oil and Gas, Inc. (the "Company"), pursuant to Section 7 of its 2013 Equity Incentive Plan  (the "Plan"), hereby grants to you, the Non-Employee Director named below, an Option to purchase the number of shares of the Company's common stock shown below.  The terms and conditions of this Option Award are set forth in this Non-Qualified Stock Option Agreement (the "Agreement"), consisting of this cover page and the Terms and Conditions on the following pages, and in the Plan document, a copy of which has been provided to you.  To the extent any capitalized term used in this Agreement is not defined, it shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future.

 

	
Full Name of Non-Employee Director:

 

	
No. of Shares Covered:

	
Grant Date:

 

	
Exercise Price Per Share:

	
Expiration Date:

 

	
Vesting and Exercise Schedule (Cumulative):

	
 

 

Initial Date of

Vesting and Exercisability

 

 

 

 

 

	
No. of Shares

As to Which Options

Becomes Vested and

Exercisable as of Such Date

 

 

 

 

 

 

By signing below, you agree to all of the terms and conditions contained in this Agreement and in the Plan document.  You acknowledge having reviewed these documents and that they set forth the entire agreement between you and the Company regarding your right to purchase shares of the Company's common stock pursuant to this Option.

OPTIONEE:                                                                                         NORTHERN OIL AND GAS, INC.

 

 

____________________________    By:___________________________

[Name]                                                                      Title: __________________________

 

 

 

TERMS AND CONDITIONS

1.            Exercise Price.  The purchase price of each of the Shares subject to the Option shall be the Exercise Price Per Share specified on the cover page of this Agreement, which price was determined in accordance with the Plan.

2.            Non-Statutory Stock Option.  This Option is not intended to be an "incentive stock option" within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), and will be interpreted accordingly.  As such, this Option is a Non-Qualified Stock Option under the Plan.

3.            Vesting and Exercise.  The Option shall vest and become exercisable according to the Vesting and Exercise Schedule set out on the cover page of this Agreement, so long as your Service to the Company has not ended.  Notwithstanding the foregoing, the Option shall immediately vest and become exercisable in full upon the occurrence of a Change in Control or upon the termination of your Service to the Company as a result of death or Disability.

4.            Expiration.  This Option shall expire at 4:00 Central Time on the earliest of (i) the Expiration Date specified on the cover page of this Agreement, (ii) the last day of any period following your termination of Service to the Company during which this Option can be exercised (as specified in Section 5 of this Agreement); or (iii) the date (if any) fixed for cancellation pursuant to Section 3(b) of the Plan.

5.            Continued Service Requirement.  Except as otherwise provided in this Section 5, this Option may be exercised only while you continue to provide Service to the Company.

(a)            Death of Optionee.  If your Service to the Company terminates because of your death, the Option may be exercised at any time within 12 months following the date of death (but in no instance later than the Expiration Date specified on the cover page of this Agreement) by your estate or by a person who acquired the right to exercise the Option by bequest or inheritance (a "Successor").

(b)            Disability of Optionee.  If your Service to the Company terminates due to Disability, you may exercise the Option within 12 months from the date of such termination (but in no event later than the Expiration Date specified on the cover page of this Agreement).

(c)            Other Termination.  If your Service to the Company terminates other than because of your death or Disability, you may exercise the Option to the extent it was exercisable immediately prior to such termination within 12 months from the date of such termination (but in no event later than the Expiration Date specified on the cover page of this Agreement).

 

6.            Procedure to Exercise Option.

(a)                Notice of Exercise.  This Option may be exercised by delivering advance written notice of exercise to the Company at its headquarters in the form attached to this Agreement as Exhibit A, or a similar form containing substantially the same information and addressed or delivered to an authorized Company representative.  The notice shall state the number of Shares to be purchased, and shall be signed by the person exercising this Option.  If you are not the person exercising this Option, he or she also must submit appropriate proof of his or her right to exercise this Option.

(b)        Tender of Payment.  When a notice of exercise is submitted, it must be accompanied by payment of the full purchase price of the Shares being purchased through one or a combination of the following methods:

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		(i)	Payment by check, bank draft or money order payable to the Company;

		(ii)	To the extent permitted by the Committee, by means of a broker-assisted cashless exercise in which the person exercising the Option irrevocably instructs his or her broker to deliver proceeds of a sale of all or a portion of the Shares to be issued pursuant to the exercise to the Company in payment of the exercise price of such Shares; or

		(iii)	By delivery to the Company of Shares (by actual delivery or attestation of ownership in a form approved by the Company) already owned by the person exercising the Option that are not subject to any security interest and that have an aggregate Fair Market Value on the date of exercise equal to the full purchase price of the Shares being purchased (the person exercising the Option shall duly endorse in blank any certificates delivered and shall represent and warrant in writing that he or she is the owner of the Shares so delivered free and clear of all liens, security interests and other restrictions or encumbrances).

		(iv)	To the extent permitted by the Committee, by authorizing the Company to retain, from the total number of Shares as to which the Option is being exercised, that number of Shares having an aggregate Fair Market Value on the date of exercise equal to the purchase price for the total number of Shares as to which the Option is being exercised.

(c)                Delivery of Shares.  As soon as practicable after the Company receives a properly executed notice and the purchase price provided for above, and has determined that all conditions to exercise have been satisfied, it shall deliver to the person exercising the Option, in the name of such person, the Shares being purchased, as evidenced by issuance of a stock certificate or certificates, electronic delivery of such Shares to a brokerage account designated by such person, or book-entry registration of such Shares with the Company's transfer agent.  The Company shall pay any original issue or transfer taxes with respect to the issue or transfer of the Shares and all fees and expenses incurred by it in connection therewith.  All Shares so issued shall be fully paid and nonassessable.

7.            Transfer of Option.  The Option may be transferred only to a Successor, and then only for no consideration.

8.            No Rights as Shareholder.  No person shall have any of the rights of a shareholder of the Company with respect to any shares subject to the Option until the shares are actually issued upon the proper exercise of the Option.

9.            The Plan.  This Option is subject to all of the terms and conditions contained in the Plan, and the Plan is hereby incorporated by reference into this Agreement.  If there is any inconsistency between the provisions of this Agreement and the Plan, the provisions of the Plan shall govern.

10.            Governing Law.  This Agreement is entered into under the laws of the State of Minnesota and shall be construed and interpreted thereunder (without regard to its conflicts of law principles).

11.            Binding Effect.  This Agreement shall be binding in all respects on your heirs, representatives, successors and assigns (including a Successor), and upon the successors and assigns of the Company.

By signing the cover page of this Agreement, you agree to all the terms and conditions described above and in the Plan document.

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