Document:

ex10-2.htm

Exhibit 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

 

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") dated as of February 13, 2012 among Hampton Roads Bankshares, Inc., a Virginia corporation having its principal place of business at 999 Waterside Drive, Suite 200, Norfolk, Virginia 23510 ("HRB"), Bank of Hampton Roads, Inc., a banking association organized under the laws of the Commonwealth of Virginia, having its principal place of business at 999 Waterside Drive, Suite 200, Norfolk, Virginia 23510 ("BHR", and, together with HRB, the "Employers") and Douglas J. Glenn (the "Executive"), an individual who currently serves as the Executive Vice President and Interim President and Chief Executive Officer of HRB and as the Executive Vice President,
General Counsel and Interim President and Chief Executive Officer of BHR.  BHR is a wholly owned subsidiary of HRB.  This Agreement amends and restates the Employment Agreement among the Employers and the Executive dated as of November 1, 2007 and as thereafter amended on May 27, 2008 and as further amended on December 31, 2008 and September 24, 2010 (the "Prior Agreement").

 

WITNESSETH:

WHEREAS, the Employers recognize the Executive's leadership and contributions to the well-being of the Employers and desire to amend certain provisions of the Executive's Prior Agreement and to restate the Prior Agreement as so amended effective as of the date of this Agreement (the "Effective Date") to provide for the employment of the Executive as the President and Chief Executive Officer of HRB and as the President and Chief Executive Officer of BHR (the "Position").  The Executive agrees to commence employment in the Position on the Effective Date, all in accordance with the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS, the Executive is willing to terminate all of the Executive's rights, benefits and interests under the Prior Agreement and to commence serving in the  Position upon the Effective Date under the terms and conditions set forth in this Agreement;

 

WHEREAS, the Executive and the Employers are entering into this Agreement to set forth and confirm their respective rights and obligations with respect to the commencement of the Executive's employment by the Employers in the Position on and after the Effective Date, with the express understanding and agreement of the Executive that, except as set forth herein, on and after the Effective Date, all currently effective employment agreements, severance agreements, change of control agreements and salary continuation agreements between or among HRB, BHR and the Executive shall automatically terminate and be of no further force or effect without any further action by or on behalf of the Executive, HRB or BHR as of the
Effective Date.

 

  

  

  

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the Employers and the Executive, intending to be legally bound hereby, mutually agree as follows:

 

1.           Employment.

 

          (a)            Effective as of the Effective Date, the Employers shall employ the Executive on and at-will basis and the Executive agrees to serve in the Position in accordance with the terms and conditions set forth in this Agreement.  The Employers shall be jointly and severally liable to the Executive with respect to (i) all liabilities of HRB to the Executive under this Agreement and (ii) all liabilities of BHR to the Executive
under this Agreement; provided, however, that BHR shall not be responsible for any liability of HRB to the Executive to the extent that HRB has discharged such liability, and HRB shall not be responsible for any liability of BHR to the Executive to the extent that the BHR has discharged such liability.

 

(b)            Executive’s employment with the Employers is of indefinite duration.  The parties understand and agree that Executive’s employment with the Employers is at will, and, thus, that either Executive or the Employers may terminate the employment relationship at any time, for any reason or no reason, provided that the terminating party must give the other party 90 days’ prior notice of such termination.  Executive understands and agrees that no employee or agent of the Employers is authorized to enter into any employment relationship with Executive other than at will, and that no agreement for employment of
Executive by the Employers other than for employment at will shall be valid.

 

          (c)           Upon termination of this Agreement and/or Executive’s employment hereunder, the sole obligations of the Employers shall be (i) to pay the Executive’s Base Salary, as defined in this Agreement, accrued through the effective date of the termination of the Executive’s employment under this Agreement, (ii) to pay any amount payable to Executive pursuant to the terms of the SERP as amended by paragraph 3(c) of this
Agreement, (iii) to make any payments or perform any obligations to which Executive is entitled pursuant to any Other Benefits, as defined in this Agreement and (iv) to pay any amount payable to Executive pursuant to the terms of any stock or other equity award received by Executive.

 

          (d)           The Executive is currently serving as a director of HRB, Shore Bank, and BHR.  HRB shall nominate the Executive for election as  a director of HRB as such nominations are necessary so that the Executive will, if elected by the stockholders of HRB, serve as a director of HRB, Shore Bank, and BHR throughout the term of his employment.  HRB agrees to cause the election of the Executive as a director of BHR and
Shore Bank throughout the term of his employment.  The Executive hereby consents to serve as a director.

 

  

  

  

2.           Duties of the Executive.

 

(a)           Subject to the ultimate control and discretion of the Employers’ boards of directors (the “Boards”), the Executive shall serve in the Position and perform all duties and services commensurate with the Position.  Throughout the term of his employment, the Executive shall perform all duties reasonably assigned or delegated to the Executive under the By-laws of the Employers or from time to time by the Boards consistent with the Position.  Except for travel normally incidental and reasonably necessary to the business of the Employers and the duties of the Executive under this Agreement, the duties of the
Executive shall be performed in the greater Norfolk, Virginia area.

 

(b)            The Executive shall devote substantially all of the Executive's business time and attention to the performance of the Executive's duties under this Agreement and, while employed hereunder, the Executive shall not engage in any other business enterprise that requires any significant amount of the Executive's personal time or attention, unless the Boards grant their prior permission to the Executive.  The foregoing provision shall not prevent the Executive's purchase, ownership or sale of any interest, or the Executive's engaging, but not to exceed an average of five hours per week, in, any business that does not compete with the
business of the Employers or the Executive's involvement in charitable or community activities, provided, that the time and attention that the Executive devotes to such business and charitable or community activities does not materially interfere with the performance of the Executive's duties under this Agreement and that a material portion of the time devoted by the Executive to charitable or community activities are devoted to charitable or community activities within the greater Norfolk, Virginia area and further provided that such conduct complies in all material respects with applicable policies of the Employers.

 

(c)            The Executive shall be entitled to vacation during each calendar year in accordance with the vacation policy of the Employers for senior executive officers, to be taken at such time or times as the Executive and the Employers shall mutually determine.  Earned but unused paid time off shall be accrued in accordance with the Employers' vacation policy.

 

3.           Compensation.  For all services to be rendered by the Executive under this Agreement, the Employers and the Executive agree as follows:

 

(a)            Base Salary.  The Employers shall pay the Executive a base salary (the "Base Salary"), at an annual rate of $550,000, plus such other compensation as the Employers may, from time to time, determine in their sole discretion.  At the end of each fiscal year of the Employers, the Employers shall review the amount of the Executive's Base Salary, and shall increase such Base Salary for the following year to such amount as the Boards may determine in their discretion.  Such Base Salary and other compensation shall be payable in accordance with the
Employers' normal payroll practices as in effect from time to time.

 

(b)            Stock Awards.  On September 1 of each year while employed hereunder, Executive shall automatically receive annual restricted stock grants for shares of

 

  

  

  

the HRB’s Common Stock equal to 50% of his average Base Salary in the year of the grant; provided, however, that Executive may not receive grants in any calendar year in excess of applicable limits in HRB’s 2011 Omnibus Incentive Plan then in effect as of the date of the grant.  Each such annual award of restricted shares shall vest upon the later of: (i) two years from the date of the grant, (ii) the date the Employer is no longer subject to the executive compensation and corporate governance requirements of Section 111(b) of the Emergency Economic and Stabilization Act of 2008, as amended (“EESA”) or (iii) the date the Employer is no longer subject to the Written Agreement by
and among BHR, HRB, the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions.  In addition, any shares that become vested shall not be transferable except as permitted by EESA and the regulations thereunder.

 

(c)            Supplemental Retirement Agreement.  Notwithstanding any other provision of this Agreement, the Supplemental Retirement Agreement, dated May 27, 2008 and amended on December 31, 2008 and September 24, 2010, by and between BHR and Executive (the “SERP”), is hereby amended to provide that the maximum aggregate amount the Executive shall be entitled to receive under the SERP is the lesser of (i) $600,000 or (ii) the amount he is otherwise entitled to under the SERP without regard to this amendment.

 

(d)            Other Benefits.  Subject to any applicable eligibility requirements, from and after the Effective Date and throughout Executive’s employment hereunder, except as otherwise expressly provided in the Agreement, the Executive shall be entitled to the following additional benefits (the "Other Benefits"):

 

(i)           the use of an automobile either owned or leased by one of the Employers of a make and model appropriate to the Executive's status.  The Employers shall pay all insurance premiums, taxes and other expenses related to the automobile;

 

(ii)           the Employers shall pay the dues to (A) an area social club; (B) an area country club and (C) an area civic club and shall designate the Executive as the authorized user of such memberships; and

 

(iii)           continued participation in all cash and non-cash employee benefit plans maintained by the Employers for senior executive officers, directors or employees generally in which Executive participates on the Effective Date or hereinafter, including but not limited to (A) a 401(k) retirement program, (B) long-term disability, (C) extended medical leave, (D) paid-time off and (E) health insurance, dental insurance and life insurance coverage as are provided to the class of employees that includes the Executive.

 

(e)            Compliance.  Any obligation of the Employers to make any payments to the Executive pursuant to this Agreement or otherwise shall be subject to and conditioned upon their compliance with (i) 12 U.S.C. Section 1828(k) and FDIC Regulation 12 C.F.R. Part 359, "Golden Parachute and Indemnification Payments" and (ii) Section  111(b) of EESA and 31 C.F.R. Part 30, “TARP Standards for Compensation and Corporate Governance.”

 

  

  

  

4.            Expenses.  The Employers shall promptly reimburse the Executive for (a) all reasonable expenses the Executive pays or incurs in connection with the performance of the Executive's duties and responsibilities under this Agreement, upon presentation of expense vouchers or other appropriate documentation for such expenses and (b) all reasonable professional expenses, such as licenses and dues and professional educational expenses, the Executive pays or incurs during his employment hereunder.

 

    5.           Indemnification.  Notwithstanding anything in the Employers' articles of incorporation or By-laws to the contrary, the Executive shall at all times during the Executive's employment by the Employers, and after such employment, be indemnified by the Employers to the fullest extent applicable law permits for any matter in any way relating to the Executive's affiliation with the Employers; provided, however, that if the Employers shall have terminated the Executive's employment for Cause, then the
Employers shall have no obligation whatsoever to indemnify the Executive for any claim arising out of the matter for which the Executive's employment shall have been terminated for Cause or for any conduct of the Executive not within the scope of the Executive's duties under this Agreement.  For this purpose, termination for "Cause" shall include termination because of the Executive's personal dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation other than traffic violations or similar offenses or final cease-and-desist order or material breach of any provision of this Agreement.  Cause shall also include termination because of (A) misappropriation or other intentional material damage to the property or business of the Employers by the
Executive, (B) the Executive's repeated absences other than for vacation or physical or mental impairment or illness, (C) the Executive's admission or conviction of, or plea of nolo contendere to, any felony or any other crime referenced in Section 19 of the Federal Deposit Insurance Act that, in the reasonable judgment of the Boards, adversely affects the Employers' reputation or the Executive's ability to carry out the Executive's obligations under this Agreement or (D) the Executive's non-compliance with the provisions of paragraph 2(b) of this Agreement after notice of such non-compliance from the Employers to the Executive and a reasonable opportunity for the Executive to cure such non-compliance.  Notwithstanding the foregoing, the Employers may not terminate the Executive's employment under this Agreement for Cause unless the Employers provide the Executive with (A)
written notice in accordance with the By-laws of the Employers of a special meeting of the Boards to consider the termination of the Executive's employment under this Agreement for Cause and (B) the opportunity for the Executive to address such special meeting.

 

6.           Confidential Information.  The Executive understands that in the course of the Executive's employment by the Employers the Executive will receive confidential information concerning the business of the Employers and that the Employers desire to protect the confidentiality of such information.  The Executive agrees that the Executive will not at any time during or after the period of the Executive's employment by the Employers reveal to anyone outside the Employers, or use for the Executive's own benefit, any such 

 

 

  

  

  

information that has been designated as confidential by the Employers or that the Executive understood to be confidential without prior specific written authorization by the Employers.  Upon termination of this Agreement, and upon the request of the Employers, the Executive shall promptly deliver to the Employers any and all written materials, records and documents, including all copies of this Agreement, made by the Executive or coming into the Executive's possession during his employment hereunder and that the Executive retained containing or concerning confidential information of the Employers and all other written materials furnished to and retained by the Executive by the Employers for the
Executive's use during his employment, excluding all copies of this Agreement, whether of a confidential nature or otherwise.

 

7.           Representation and Warranty of the Executive.  The Executive represents and warrants to the Employers that the Executive is not under any obligation, contractual or otherwise, to any other firm or corporation, which would prevent the Executive from entering into the employ of the Employers in the Position under this Agreement or prevent the Executive from performing the terms of this Agreement.  The Executive agrees that upon the Effective Date the Prior Agreement shall terminate and that after the Effective Date the Executive shall not have any further rights under
the Prior Agreement.

 

8.           Entire Agreement; Amendment.  This Agreement contains the entire agreement between the Employers and the Executive with respect to the subject matter of this Agreement, and this Agreement may not be amended, waived, changed, modified or discharged except by an instrument in writing executed by the Employers and the Executive.

 

9.           Assignability.  The services of the Executive under this Agreement are personal in nature, and the Employers may not assign this Agreement nor the rights or obligations of the Employers under this Agreement, whether by operation of law or otherwise, without the Executive's prior written consent.  This Agreement shall be binding upon, and inure to the benefit of, the Employers and their permitted successors and assigns under this Agreement.  The Executive may not assign this Agreement, but the Executive's benefits under this Agreement shall inure to the
benefit of the Executive's heirs, executors, administrators and legal representatives to the extent this Agreement expressly provides.

 

10.           Notice.  Any notice that may be given under this Agreement shall be in writing and be deemed given when hand delivered and acknowledged or, if mailed, one day after mailing by registered or certified mail, return receipt requested, or if delivered by an overnight delivery service, one day after the notice is delivered to such service, to any party to this Agreement at its respective address stated above, or at such other address as any party may by similar notice designate.

 

11.           Specific Performance.  The parties agree that irreparable damage would occur in the event that any of the provisions of paragraph 6 of this Agreement were not performed in accordance with their specific terms or were otherwise breached.  The parties accordingly agree that each of the parties to this Agreement shall be entitled to an injunction or 

 

 

  

  

  

injunctions to prevent breaches of paragraph 6 of this Agreement and to enforce specifically the terms and provisions of paragraph 6 of this Agreement, and that such injunctive relief shall be in addition to any other remedy to which any party is entitled at law or in equity.

 

12.           No Third Party Beneficiaries.  Nothing in this Agreement, express or implied, is intended to confer upon any person or entity other than the Employers and the Executive and the heirs, executors, administrators and personal representatives of the Executive any rights or remedies of any nature under or by reason of this Agreement.

 

13.           Successor Liability.  The Employers shall require any subsequent successor, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all of the business or assets of the Employers to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Employers would be required to perform it if no such succession had taken place.

 

14.           Mitigation.  The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer or by retirement benefits payable after the termination of this Agreement, except that the Employers shall not be required to provide the Executive and the Executive's eligible dependents with medical insurance coverage as long as the
Executive and the Executive's eligible dependents are receiving comparable medical insurance coverage from another employer.

 

15.           Waiver of Breach.  The failure at any time to enforce or exercise any right under any of the provisions of this Agreement or to require at any time performance by the other parties of any of the provisions of this Agreement shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement or any part of this Agreement, or the right of any party hereafter to enforce or exercise its rights under each and every provision in accordance with the terms of this Agreement.

 

16.           No Attachment.  Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect; provided, however, that nothing in this paragraph 16 shall preclude the assumption of such rights by executors, administrators or other legal representatives of the
Executive or the Executive's estate and their assigning any rights under this Agreement to the person or persons entitled hereto.

 

17.           Severability.  The invalidity or unenforceability of any term, phrase, clause, paragraph, restriction, covenant, agreement or other provision of this Agreement shall in no way affect the validity or enforceability of any other provision, or any part of this Agreement, 

 

 

  

  

  

but this Agreement shall be construed as if such invalid or unenforceable term, phrase, clause, paragraph, restriction, covenant, agreement or other provision had never been contained in this Agreement unless the deletion of such term, phrase, clause, paragraph, restriction, covenant, agreement or other provision would result in such a material change as to cause the covenants and agreements contained in this Agreement to be unreasonable or would materially and adversely frustrate the objectives of the parties as expressed in this Agreement.

 

18.           Survival of Benefits.  Any provision of this Agreement that provides a benefit to the Executive and that by the express terms of this Agreement does not terminate upon the expiration of his employment hereunder shall survive the expiration the term of his employment and shall remain binding upon the Employers until such time as such benefits are paid in full to the Executive or the Executive's estate.

 

19.           Construction.  This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Virginia, to the extent not inconsistent with federal law, without giving effect to principles of conflict of laws.  All headings in this Agreement have been inserted solely for convenience of reference only, are not to be considered a part of this Agreement and shall not affect the interpretation of any of the provisions of this Agreement.

 

IN WITNESS WHEREOF, each of the Employers and the Executive have executed this Agreement as of the date first written above.

 

	  	
HAMPTON ROADS BANKSHARES, INC.

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/ Henry P. Custis, Jr.

	  
	  	
 

	
Henry P. Custis, Jr.

	  
	  	
 

	
Chairman

	  
	  	  	  	  
	  	  	  	  
	  	
THE BANK OF HAMPTON ROADS

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/ Herman A. Hall, III

	  
	  	 	
Herman A. Hall, III

	  
	  	  	
Chairman

	  
	  	  	  	  
	  	  	  	  
	  	
/s/ Douglas J. Glenn

	  
	  	
Douglas J. GlennEx 10.9 Exec Salary & Bonus Def Comp 2011

FBL FINANCIAL GROUP, INC.
EXECUTIVE SALARY AND BONUS DEFERRED COMPENSATION PLAN
As Amended December 15, 2011

1. PURPOSE.  This Executive Salary and Bonus Deferred Compensation Plan is established to allow the officers of FBL Financial Group, Inc. (FBL) who are required to meet certain stated FBL Common Stock ownership guidelines to participate in the ownership of FBL Common Stock through use of their base salary and/or annual cash bonus to purchase deferred units.  In addition, the Plan is intended to allow the officers to defer all or a portion of their base salary and/or annual cash bonus compensation for their services. For compensation deferred beginning in calendar year 2012 this Plan will no longer allow for the distribution of deferred benefits in shares of FBL Common Stock, but will only allow for the distribution of deferred benefits in cash.

2. DEFINITIONS.  The following words have the definitions given them below:
    
a. “Affiliate” means any corporation, company limited by shares, partnership, limited liability company, business trust, other entity, or other business association that is controlled by FBL.

b. “Base Salary” means the annual compensation determined for the Officer before Bonus or any other compensation or employee benefits, including any amounts deferred by an Officer under this Plan.

c. “Board” means the board of directors of FBL.
    
d. “Bonus” means the annual cash bonuses payable to employees of FBL Financial Group under the FBL Financial Group Management Performance Plan, as long as it remains in effect, which bonus is subject to the control of the Board and of its Management Development and Compensation Committee, including any amounts deferred by an Officer under this Plan.  “Bonus” for a particular Plan Year means the Bonus paid shortly after the end of such Plan Year based on performance for such Plan Year.

e. “Business Day” means a day on which FBL's executive offices in West Des Moines, Iowa, are open for business and on which trading is conducted on the New York Stock Exchange.

f. “Change in Control Event” means a change in the ownership of FBL, a change in effective control of FBL, or a change in ownership of a substantial portion of the assets of FBL, and includes the exercise of discretion by FBL to terminate this plan and distribute the compensation deferred hereunder within 12 months of the Change in Control Event. A change in the ownership of FBL occurs when a person or group acting in concert acquires ownership of stock of FBL that, together with other stock of FBL held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation. A change in effective control of FBL occurs (i) on the date that a person or group acting in concert acquires (or has acquired during the 12 month period ending on the date of the most recent acquisition by such person or group) ownership of stock possessing 35% or more of the total voting power of the FBL stock, or (ii) if a majority of FBL's directors are replaced during any 12 month period by directors whose appointment or election is not endorsed by a majority of the members of the board prior to the date of the appointment or election. A change in the ownership 

of a substantial portion of FBL's assets occurs on the date that a person, or a group acting in concert, acquires (or has acquired during the 12 month period ending on the date of the most recent acquisition by such person or persons) assets from FBL that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all the assets of FBL immediately prior to such acquisition or acquisitions. In determining if a Change in Control Event has occurred, the committee may rely upon additional material contained in Treasury Notice 2005-1, Guidance Under Section 409A of the Internal Revenue Code (“IRC”), Q&A 11, 12, 13 and 14, and subsequent guidance or regulations issued under Section 409A.

g. “Common Stock” means the Class A Common Stock, no par value per share, of FBL.

h. “Compensation Date” means each recurring monthly salary payment date and the date of paying the annual Bonus, which is usually between February 1 and February 15 of each year in reference to performance in the prior Plan Year.
    
i. “Distribution Date” means each date on which an Officer is entitled to receive a distribution from the Officer's Unit Account.

j. “Fair Market Value” means, as to any particular day, the closing price quoted for a share of Common Stock trading on the New York Stock Exchange on that day, or if no such prices were quoted for the shares of Common Stock on the New York Stock Exchange for that day, the closing price quoted on the last prior Business Day on which prices were quoted.  The closing price for the shares of Common Stock shall be that published in the edition of The Wall Street Journal or any successor publication for the next Business Day.

k. “Officer” means any officer of FBL who is subject to the mandatory stock ownership requirements of the Management Development and Compensation Committee.

l. “Plan Year” means each 12-month period beginning on each January 1 and ending on each December 31.

m. “Shares” means shares of the Common Stock.
    
n. “Special Ledger” means a record established and maintained by FBL in which the Unit Accounts for the Officers and the Units credited to the accounts are noted.

o. “Unit Account” shall mean the account maintained in the Special Ledger for an Officer to which Units allocable to the Officer under this Plan are credited.

p. “Unit” means a credit in a Unit Account representing one Share.

3. BASE SALARY AND BONUS ELECTION.  For each Plan Year in which a person is an Officer during the existence of this Plan, the Officer may elect to have deferred by FBL crediting Units to a Unit Account maintained for the Officer, up to 100% of his or her Base Salary, and up to 100% of his or her Bonus, under an election which must be made not later than the last day of the year prior to the Plan Year for which such Base Salary and Bonus will be earned, or within 30 days of the date the person becomes an Officer of FBL, or within 30 days following the effective date of the Plan for salary earned after the date of election to defer. However, when a person becomes an Officer during a year a bonus may only be deferred if the bonus is performance based compensation and the election is received by June 30 of the year the person becomes an Officer. Each election must be made by the Officer by filing an election form with the Secretary of FBL on or before the applicable deadline. If an Officer does not file an election 

form for each Plan Year by the applicable deadline, the Officer will be deemed to have elected to receive the entire Base Salary paid during the Plan Year and Bonus applicable to such Plan Year in cash. Deferral elections relating to a Plan Year may not be changed after the beginning of that Plan Year. A deferral election expires at the end of such Plan Year. 

4.  THE UNITS.  If an Officer defers any portion of the Base Salary or Bonus for a Plan Year in the form of Units, then on each Compensation Date, FBL will credit a Unit Account maintained for the Officer with a number of Units equal to (1) the dollar amount of the Base Salary and Bonus then payable that the Officer has elected to defer, divided by (2) the Fair Market Value on the Compensation Date, rounded to the nearest one-thousandth of a Unit.  If the Common Stock is the subject of a stock dividend, stock split, or a reverse stock split, the number of Units will be increased or decreased, as the case may be, in the same proportion as the outstanding shares of Common Stock.  FBL will credit to the Officer's Unit Account on the date any dividend is paid on the Common Stock, an additional number of Units equal to (1) the aggregate amount of the dividend that would be paid on a number of Shares equal to the number of Units in the Officer's Unit Account on the date the dividend is paid, divided by (2) the Fair Market Value on that date, rounded to the nearest one-thousandth Unit.

5. DISTRIBUTION OF THE AMOUNTS IN A UNIT ACCOUNT.  

a.    At the time of making each annual deferral election, the Officer may elect to receive Distributions from a Unit Account under the method and at the time(s) as follows:

1.  Method.  A lump sum payment or either five or ten annual installments. If no election is made the payment will be in a lump sum. 

2.  Time.  Pursuant to one of the following choices.  If no election is made, the time for payment will be upon separation from service. 

(a)  Upon separation from service, as defined in Treasury Regulations. However, if the Officer was a “key employee” of the Company, i.e., an Officer with annual compensation in excess of $135,000 per year (in 2005, and in excess of limits set by Treasury Regulations for subsequent years) who is among the top 50 compensated officers, the Officer will be subject to a six month post termination waiting period before any Distribution is made on account of separation from service. The six month limitation will apply to any Distributions described in this Plan which are related to a separation from service election.
    
b)  On a specified  date or upon separation from service, whichever is earlier; provided, however, if separation from service is the triggering date, then the restriction on timing of payment to a “key employee” as set forth in subsection 5.2(a) above shall apply.  The lump sum payment or the first annual payment, as applicable, shall be made on such date.  Each other annual payment, if applicable, shall be made on the same date in each subsequent year.

3.  Change in election.  An election can be changed in the future only with notice made not less than 12 months prior to the first originally scheduled payout date, with a lump sum payment (or all annual payments) deferred for an additional period of at least five years from when any payment was initially scheduled.

4.  Acceleration.  No acceleration of any payment shall be permitted except as provided in 

this paragraph 4.  FBL will make payment in full in a lump sum upon an event of (a) death, (b) disability as defined in Code §409A(a)(2)(C), (c) Change of Control Event, (d) domestic relations order, (e) order to comply with a certificate of divestiture, or (f) deminimus balance not exceeding $50,000 at the date of initial Distribution.  Upon the occurrence of an unforeseeable emergency, as defined in Code §409A(a)(2)(B)(ii), FBL will make a lump sum payment to the Officer, but only to the extent necessary to satisfy the emergency and pay resulting taxes.  Payments under this paragraph 4 will be made by order of the Committee and subject to the definition of and limitations on such events in the Treasury Regulations.
    
b.    Form of Payment.  For all deferrals made through December 31, 2011, all Distributions shall be paid in Shares. All Share distributions are in whole shares, and cash for fractional shares. For all deferrals made after January 1, 2012, all Distributions shall be paid in cash.

c.      For Share Distributions:  Officers electing Distributions in Shares in a lump sum will receive that number of Shares equal to the number of Units with which the former Officer's Unit Account is credited, with any fractions of a Share to be paid in cash.  FBL will issue the Shares as soon as practicable, at or after the Distribution Date.  Officers electing Distributions in Shares in installments will receive a pro rata number of Shares for each installment plus additional Shares equal to the Units credited to the Unit Account respecting dividends paid on the Common Stock since the last installment was made.  FBL will issue the first installment of Shares as soon as practicable at or after the former Officer's Distribution Date.  The remaining installments of Shares will be issued on or about each anniversary of the Officer's Distribution Date.

d.    For Cash Distributions:  Officers electing Distributions in cash in a lump sum will receive an amount equal to the number of Units being distributed multiplied by the Fair Market Value of the Shares on the day prior to the Distribution Date, payable as soon as practicable after the Distribution Date. Officers electing Distributions in cash in installments will receive a distribution equal to a pro rata number of Units in the Unit Account multiplied by the Fair Market Value of the Shares on the day prior to the date of the installment, payable as soon as practicable after the Distribution Date. The remaining installments of cash will be issued on or about each anniversary of the Officer's Distribution Date, in an amount equal to a pro rata number of Units in the Unit Account multiplied by the Fair Market Value of the Shares on the day prior to the date of the installment, payable as soon as practicable thereafter. 

6. DISTRIBUTION IN THE EVENT OF AN OFFICER'S DEATH OR DISABILITY.  Each Officer must designate one or more beneficiaries of the Officer's Unit Account, who may be changed from time to time, by filing a prescribed form with FBL's Secretary. If no designation of beneficiary is made, any deferred benefits under this Plan will be paid to the Officer's spouse, if any, then children pro rata, if any, and if none survive, to the Officer's estate upon his or her death.  If an Officer dies while in office or a former Officer dies during the installment payment period, FBL will pay a lump sum in cash to the beneficiary as soon as practicable.  Should the Officer or former Officer become disabled within the meaning of that term in applicable Treasury Regulations, the deferred benefits will be paid to the person or the person's guardian as soon as practicable in cash in a lump sum.  The cash distribution shall be equal to the number of Units credited to the Unit Account multiplied by the Fair Market Value of the Shares on the day prior to the Distribution Date.

7. WITHHOLDING FOR TAXES.  FBL will withhold the amount of cash and Shares necessary to satisfy FBL's obligation to withhold federal, state, and local income and other taxes on any benefits received by the Officer, the former Officer or a beneficiary under this Plan.  FICA taxes are due as compensation is earned and FBL will withhold from the Officer's other compensation sources necessary amounts. In the event Officer defers a percentage of Base Salary and/or Bonus such that an insufficient 

amount remains for withholding of FICA or other required taxes at any deferral date, Officer agrees to make arrangements for payment of withholding from other sources before such date.

8. NO TRANSFER OF RIGHTS UNDER THIS PLAN.  An Officer or former Officer shall not have the right to transfer, grant any security interest in, or otherwise encumber rights he or she may have under this Plan or any Unit Account maintained for the Officer or former Officer or any interest therein.  No right or interest of an Officer or a former Officer in a Unit Account shall be subject to any forced or involuntary disposition or to any charge, liability, or obligation of the Officer or former Officer, whether as the direct or indirect result of any action of the Officer or former Officer or any action taken in any proceeding, including any proceeding under any bankruptcy or other creditors' rights law.  Any action attempting to effect any transaction of that type shall be null, void, and without effect.

9. UNFUNDED PLAN.  This Plan will be unfunded for federal tax purposes.  The Unit Accounts are entries in the Special Ledger only and are merely a promise to make payments in the future.  FBL's obligations under this Plan are unsecured, general contractual obligations of FBL.

10. AMENDMENT AND TERMINATION OF THE PLAN.  The Board or Management Development and Compensation Committee of the Board may amend or terminate this Plan at any time.  An amendment or the termination of this Plan will not adversely affect the right of an Officer, former Officer, or Beneficiary to receive Shares issuable or cash payable at the effective date of the amendment or termination of any rights that an Officer, former Officer, or a Beneficiary has in any Unit Account at the effective date of the amendment or termination.

11. GOVERNING LAW.  This Plan shall be governed by the laws of the State of Iowa.  The Plan is administered by the Management Development and Compensation Committee and it has the right to interpret this Plan, and any interpretation by the committee shall be conclusive as to the meaning of this Plan.

12. EFFECTIVE DATE AND TRANSITION.  The effective date of this Plan shall be June 1, 2005, and the Plan will become operative and in effect on that date, subject only to the ratification of the Plan by the stockholders of FBL at FBL's 2005 annual stockholders' meeting.  The Board has reserved and authorized for issuance, pursuant to the terms and conditions of this Plan, 250,000 shares of Common Stock.

Certificate of Secretary

I, David A. McNeill, Secretary of FBL Financial Group, Inc., do hereby certify that the foregoing FBL FINANCIAL GROUP, INC. EXECUTIVE SALARY AND BONUS DEFERRED COMPENSATION PLAN, was approved by the shareholders of FBL Financial Group May 20, 2005 and was amended by the Management Development and Compensation Committee of the Board of Directors December 15, 2011.

/s/ DAVID A. MCNEILL
__________________________
David A. McNeill, Secretary
                        
Date: 12/15/2011

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