Document:

Offer Letter between FHLBA and Marian M. Lucia

 Exhibit 10.7 
  
 FEDERAL HOME LOAN BANK 
 of ATLANTA 
  
 August 20, 2002 
  
 Ms. Marian M. Lucia 
 19 Wyndmoor Drive 
 Convent Station, New Jersey 07960-4633 
  
 Dear Ms. Lucia: 
  
 We are pleased to offer you the position of Senior Vice President and Chief Information
Officer with the Federal Home Loan Bank of Atlanta. 
  
 As was discussed, certain
arrangements concerning your employment are outlined below. 
  

	1.	Title: Senior Vice President, Chief Information Officer; reports to President and Chief Executive Officer. 

  

	2.	Effective Date: September 30, 2002. 

  

	3.	Annual Base Salary: $225,000. 

  

	4.	Annual Incentive Opportunity: Calculated for Plan Year 2002 based on the achievement of certain Corporate goals and approved by the Board of Directors, as outlined in
the attached materials. Minimum, target and maximum opportunities are established at 15%, 30%, and 40%, respectively calculated on the actual base salary amount earned during the period of your employment in 2002. Incentive payments are subject to
certain discretionary criteria, which are included in attached materials. 

  

	5.	Medical, Dental, and Life Insurance Coverage: Employer-subsidized premiums consistent with current employee benefits programs. (See enclosed information.)

  

	6.	Annual Leave: 21 days per year, pro-rated from date of employment. 

  

	7.	Retirement Plan: Graded two-to-five year vesting schedule. Current benefits formula is 2.5 times length of service times high 3-year average salary. Normal retirement
age is 65; optional forms of retirement benefits are available. 

  

	8.	401(k) Plan: May contribute up to 40% of regular base salary, subject to IRS limitations. Contributions are matched up to 6%. A graded matching schedule provides for a
25% match on employee contributions in the first year of employment, a 50% match in second year, a 75% match in third year, and a 100% match beginning in the fourth year of employment. 

  
 1475 Peachtree St., NE  |  Atlanta, GA
30309  |  800.536.9650  |  404.888.8000  |  www.fhlbatl.com 
  

 Ms. Marian R. Lucia 
 August
20, 2002 
 Page 2 
  

	9.	Benefits Equalization Plan: Participation upon exceeding certain IRS compensation limits for defined contribution and defined benefits plans. Participation eligibility
is subject to Board of Directors discretion. Explanatory materials arc included. 

  

	10.	Voluntary Compensation Deferral Program: Participants may defer a fixed percentage of regular base pay or annual incentive compensation to a specified future date.
Explanatory materials are included. 

  

	11.	Severance: Severance payment for Bank-initiated separation without cause will be twelve months base salary, plus a pro-rated share of incentive payout opportunity
calculated at a minimum achievement level. 

  

	12.	Relocation Arrangements: Bank will engage third-party provider to purchase current home at market value to be determined by multiple appraisals of property, or to
initiate cash equity advance of an agreed-upon percentage of market value of the home to use towards purchase of a home in Atlanta area. Bank will pay all fees associated with this arrangement to third-party provider, including registered real
estate agent’s commission on sale of New Jersey property, as well as fees for interest on equity advance, inventory costs on home until sold, and direct fees and costs. (Note: estimated value of benefit may range from $45,000 to $80,000 based
on various factors). Additionally, a relocation reimbursement allowance of $35,000 is provided for certain expenses associated in relocating to Atlanta such as shipment of household goods and multiple house hunting or visitation trips. Additionally,
temporary housing and rental vehicle will be provided at Bank expense based on specific needs, for up to six months from date of employment. Taxable, non-deductible relocation benefits awarded will be grossed up at Bank expense.

  
 Bank policy requires that acceptance of
relocation benefits as described above requires total repayment by employee to Bank of the amount of total fees paid to third party relocation provider should employee voluntarily terminate employment during first twelve months in position. Policy
requiring repayment of other relocation benefits described above (up to $35,000) will be waived if separation occurs during first twelve months. 
  

	13.	Paid Sick Leave: Sick leave is paid at 100% up to six months leave. For medical leave six months in duration or longer, long-term disability insurance coverage is
provided with current coverage ratio of 65% of base salary, up to a $25,000 monthly cap. 

  

	14.	Financial Planning Assistance: Personal financial planning services are cumulatively reimbursed up to a maximum lifetime cap of $15,000 throughout the duration of your
employment with the Bank. 

  
 Enclosed is a summary of the
benefits available to you as an employee of the Bank, including medical, dental, life insurance, retirement, 401(k), and other benefits. Included as part of the benefits package is a flexible benefits program called “SelectPlan,”
which allows you to choose those benefit options best suited to your needs. You will be provided an allowance of benefit credits, based on your annual base salary and your age, called “SelectPlan Dollars” which are used toward the

  

 Ms. Marian R. Lucia 
 August 20, 2002 
 Page 3 
  

 
purchase of these benefits. This program will be further discussed with you when your employment commences. 
  
 This offer is contingent upon the Bank’s obtaining satisfactory reports from references,
background checks and pre-hire assessment process. Additionally, this offer is contingent upon approval by the Board of Directors. 
  
 The copy of this letter contains a Statement of Agreement for you to sign and return at your earliest convenience. 
  
 I am pleased to have you as a member of the Bank’s staff and hope that your association
with the Bank is mutually satisfactory in the years ahead. 
  

	
	Yours truly,
	
	 /s/ Raymond R. Christman

	 Raymond R. Christman

	 President & Chief Executive Officer

  
 Enclosures 
  
 STATEMENT OF AGREEMENT 
  
 I agree to accept employment with the Federal Home Loan Bank of Atlanta subject to the arrangements and conditions set forth herein.

  

	
	
	 /s/ Marian M. Lucia

	 Marian M. Lucia

	
	 8/22/2002

	DateIndividual Life Insurance Policy insuring Raymond R. Christman

 Exhibit 10.9 
  

					
	

	 	Variable Life Insurance Company	  	John Hancock Place
	 	 	 	  	Boston, Massachusetts 02117
	 	 	 	  	1–800–521–1234

  

							
	INSURED	  	 RAYMOND R CHRISTMAN
	  	TOTAL SUM INSURED AT ISSUE	  	 $659,084

				
	POLICY NUMBER	  	 52 591 001
	  	DATE OF ISSUE	  	 MARCH 4, 2004

				
	PLAN	  	MAJESTIC UL	  	 	  	 

  
 INDIVIDUAL LIFE
INSURANCE 
  
 The John Hancock Variable Life Insurance Company (“The
Company”) agrees, subject to the conditions and provisions of this policy, to pay the Death Benefit to the Beneficiary upon the death of the Insured if such death occurs while the policy is in force, and to provide the other benefits, rights
and privileges of the policy. 
  
 Payment will be made on receipt at our Home
Office in Boston, Massachusetts, of due proof of the Insured’s death. 
  
 The
policy, which includes any Riders which are a part of the policy on delivery, is issued in consideration of the application and the payment of the Minimum Initial Premium as shown on Page 3. 
  
 The Policy Specifications and the conditions and provisions on this and the following pages
are part of the policy. 
  
 10 Day Right of Examination – This policy may
be returned by delivering or mailing it within 10 days after its receipt to the Company at Boston, Massachusetts, or to the agent or agency office through which it was delivered. Immediately on such delivery or mailing, the policy shall be deemed
void from the beginning. Any premium paid on it will then be refunded. 
  
 Signed for the Company at Boston, Massachusetts. 
  

					
			
	/s/ Michele G. Vanleer	 	 	 	/s/ 
	President	 	 	 	Secretary

  
 Flexible Premium Adjustable Life
Insurance 
  
 Death Benefit payable at death of Insured 
  
 Not eligible for dividends 
  
 Benefits, premiums and the Premium Class are shown in the Policy Specifications Section. 

 Policy Provisions 
  

Section 
  

					
	1.	  	Policy Specifications	  	3-3B
	2.	  	Table of Rates	  	4-4A
	3.	  	Definitions	  	5
	4.	  	Sum Insured	  	5
	5.	  	Death Benefit	  	6
	6.	  	Increase in Credited Rate	  	7
	7.	  	Premium Payments	  	7
	8.	  	Grace Period	  	7
	9.	  	Account Value	  	8
	10.	  	Loans	  	9
	11.	  	Surrenders	  	10
	12.	  	Annual Report to Owner	  	11
	13.	  	Basis of Computations	  	11
	14.	  	Reinstatement	  	11
	15.	  	Owner and Beneficiary	  	12
	16.	  	Interest on Proceeds	  	12
	17.	  	Claims of Creditors	  	12
	18.	  	Assignment	  	12
	19.	  	Incontestability	  	13
	20.	  	Misstatement of Age or Sex	  	13
	21.	  	Suicide	  	13
	22.	  	Contract	  	13
	23.	  	Settlement Provisions	  	14

  

 2 

 1. POLICY SPECIFICATIONS 
  

					
	Insured	  	RAYMOND R CHRISTMAN	  	 
	Issue Age	  	55	  	 
	Sex	  	M	  	 
	Premium Class	  	 STANDARD
 NONSMOKER
	  	 

  

								
	Owner, Beneficiary	  	As designated in the application subject to Section 15 of the policy.
				
	Policy Number	  	52 591 001	  	Plan     Majestic UL	  	 	 
				
	Date of Issue	  	March 4, 2004	  	Sum Insured	  	 	 
				
	 	  	 	  	Basic Sum Insured at Issue	  	$	230,680
				
	 	  	 	  	Additional Sum Insured at Issue	  	$	428,404
	 	  	 	  	 	  	
	

				
	 	  	 	  	Total Sum Insured at Issue	  	$	659,084
				
	Death Benefit Option at Issue	  	Option B	  	 	  	 	 

  
 Other Benefits
and Specifications 
  

			
	Minimum Total Sum Insured	    	$500,000
	Minimum Basic Sum Insured	    	$100,000
	Definition of Life Insurance Elected	    	Guideline Premium Test
	Guaranteed Credited Interest Rate	    	3.35%

  
 PREMIUMS

  

			
	Planned Premium	    	$27,600.00 per year for years 1 – 1 plus $141,360.00 Additional First Year Premium; remaining years as specified in the special schedule completed at the time of
application
		
	Tier 1 Target	    	$6,745.08 per year
		
	Tier 2 Target	    	$19,271.61 per year
		
	Minimum Initial Premium	    	$3,854.32
		
	Billing Interval	    	Annual

  

 3 

 1. POLICY SPECIFICATIONS, continued 
  
 CURRENT POLICY CHARGES 
  

Deductions from Premium Payments 
  
 Sales Charge 
  

										
	 Years

	  	Up to Tier 1
Target Premium

	 	 	Premium in excess of
Tier 1 Target Premium,
up to Tier 2 Target
Premium

	 	 	Excess of Tier 2
Target Premium

	 
	 1
	  	35	%*	 	1	%	 	3	%
	 2-10
	  	10	%	 	1	%	 	3	%
	 11+
	  	3	%	 	1	%	 	3	%

  

	*	lf premium received in the first Policy Year is less than the Tier 1 Target Premium, then premium received in the second Policy Year will be treated as if it had been received in
the first Policy Year, until total cumulative premiums received exceed the Tier 1 Target Premium. 

  

			
	Premium Tax	  	2.35% of Payments
	DAC Tax	  	1.25% of Payments

  
 Monthly Deductions from Account
Value 
  

			
	Administrative Charge	  	$10.00 for all Policy Years
	Issue Charge	  	$.050 per $1,000 of Basic Sum Insured at Issue deducted for the first 10 Policy Years, not to be less than $5.00 nor more than $200.00
	Cost of Insurance Charge	  	Determined in accordance with Section 9, and deducted for all Policy Years

  
 Notice: The actual premiums paid
will affect the Account Value and the duration of insurance coverage, and will affect the Death Benefit if the Account Value affects the Death Benefit. Even if the Planned Premiums shown on page 3 are paid as scheduled, they may not be sufficient to
continue the policy in force until the death of the Insured. The policy will continue in force until the death of the Insured only if on each Processing Date actual premiums paid plus actual interest credited less any Withdrawals and any
indebtedness is sufficient to provide for all Policy Charges when due. 
  

 3A 

 1. POLICY SPECIFICATIONS, continued 
  
 MAXIMUM POLICY CHARGES 
  

Deductions from Premium Payments  
  
 Sales Charge 
  

										
	 Years

	  	Up to Tier 1
Target Premium

	 	 	Premium in excess of
Tier 1 Target Premium,
up to Tier 2 Target
Premium

	 	 	Excess of Tier 2
Target Premium

	 
	 1
	  	35	%*	 	1	%	 	3	%
	 2-10
	  	10	%	 	1	%	 	3	%
	 11+
	  	3	%	 	1	%	 	3	%

  

	*	lf premium received in the first Policy Year is less than the Tier 1 Target Premium, then premium received in the second Policy Year will be treated as if it had been received in
the first Policy Year, until total cumulative premiums received exceed the Tier 1 Target Premium. 

  

			
	Premium Tax	  	2.35% of Payments
	DAC Tax	  	1.25% of Payments

  
 Monthly Deductions from Account
Value 
  

			
	Administrative Charge	  	$10.00 for all Policy Years
	Issue Charge	  	$.050 per $1,000 of Basic Sum Insured at Issue deducted for the first 10 Policy Years, not to be less than $5.00 nor more than $200.00
	Cost of Insurance Charge	  	Determined in accordance with Section 9, and deducted for all Policy Years; Maximum Monthly Rates are shown in Section 2

  
 Notice: The actual premiums paid
will affect the Account Value and the duration of insurance coverage, and will affect the Death Benefit if the Account Value affects the Death Benefit. Even if the Planned Premiums shown on page 3 are paid as scheduled, they may not be sufficient to
continue the policy in force until the death of the Insured. The policy will continue in force until the death of the Insured only if on each Processing Date actual premiums paid plus actual interest credited less any Withdrawals and any
indebtedness is sufficient to provide for all Policy Charges when due. 
  

 3B 

 2. TABLE OF RATES 
  
 A. Rate Table 
  

							
	 Age 1

	  	Maximum Monthly
Rates per $1,000 of
Net Amount at Risk 2

	  	Required Additional
Death Benefit Factor

	  	Optional Extra Death
Benefit Factor

	 55
	  	0.8767	  	1.5000	  	 
	 56
	  	0.9601	  	1.4600	  	 
	 57
	  	1.0468	  	1.4200	  	 
	 58
	  	1.1396	  	1.3800	  	 
	 59
	  	1.2392	  	1.3400	  	 
	 60
	  	1.3500	  	1.3000	  	 
	 61
	  	1.4736	  	1.2800	  	 
	 62
	  	1.6134	  	1.2600	  	 
	 63
	  	1.7722	  	1.2400	  	 
	 64
	  	1.9491	  	1.2200	  	 
	 65
	  	2.1434	  	1.2000	  	 
	 66
	  	2.3510	  	1.1900	  	 
	 67
	  	2.5728	  	1.1800	  	 
	 68
	  	2.8088	  	1.1700	  	 
	 69
	  	3.0653	  	1.1600	  	 
	 70
	  	3.3537	  	1.1500	  	 
	 71
	  	3.6820	  	1.1300	  	 
	 72
	  	4.0603	  	1.1100	  	 
	 73
	  	4.4962	  	1.0900	  	 
	 74
	  	4.9835	  	1.0700	  	 
	 75
	  	5.5133	  	1.0500	  	 
	 76
	  	6.0765	  	1.0500	  	 
	 77
	  	6.6657	  	1.0500	  	 
	 78
	  	7.2759	  	1.0500	  	 
	 79
	  	7.9239	  	1.0500	  	 
	 80
	  	8.6352	  	1.0500	  	 
	 81
	  	9.4308	  	1.0500	  	 
	 82
	  	10.3390	  	1.0500	  	 
	 83
	  	11.3735	  	1.0500	  	 
	 84
	  	12.5138	  	1.0500	  	 
	 85
	  	13.7377	  	1.0500	  	 
	 86
	  	15.0218	  	1.0500	  	 
	 87
	  	16.3566	  	1.0500	  	 
	 88
	  	17.7380	  	1.0500	  	 
	 89
	  	19.1720	  	1.0500	  	 
	 90
	  	20.6777	  	1.0500	  	 
	 91
	  	22.2871	  	1.0400	  	 
	 92
	  	24.0635	  	1.0300	  	 
	 93
	  	26.1199	  	1.0200	  	 
	 94
	  	28.8130	  	1.0100	  	 

  

	1	On a Policy anniversary, “age” means the age of the Insured at his or her birthday
nearest that date. That “age” will apply until the next anniversary. 

  

	2	Maximum Monthly Rates and Minimum Values are based on the 1980 Commissioners Standard
Ordinary Mortality Table. 

  

 4 

 2. TABLE OF RATES, continued 
  
 A. Rate Table (cont’ d.) 
  

							
	 Age 1

	  	Maximum Monthly
Rates per $1,000 of
Net Amount at Risk 2

	  	Required Additional
Death Benefit Factor

	  	Optional Extra Death
Benefit Factor

	 95
	  	32.8176	  	1.0000	  	 
	 96
	  	39.6429	  	1.0000	  	 
	 97
	  	53.0660	  	1.0000	  	 
	 98
	  	85.5269	  	1.0000	  	 
	 99
	  	165.3400	  	1.0000	  	 

  

	1	On a Policy anniversary, “age” means the age of the Insured at his or her birthday nearest that date. That “age” will apply until the next
anniversary. 

  

	2	Maximum Monthly Rates and Minimum Values are based on the 1980 Commissioners Standard Ordinary Mortality Table. 

  

 4A 

 3. DEFINITIONS 
  
 “Application” means the application for this policy attached to and made a part of this policy. 
  
 “In force” means that the insurance under the policy is being continued for the Death Benefit. 
  
 “Indebtedness” means all existing loans on this policy plus earned interest which
has either accrued or been added. 
  
 “Payment” means, unless otherwise
stated, payment at our Home Office in Boston, Massachusetts. 
  
 “Processing
Date” means the first day of a policy month. A policy month shall begin on the day in each calendar month which corresponds to the day of the calendar month on which the Date of Issue occurred. If the Date of Issue is the 29th, 30th, or 31st
day of a calendar month, then for any calendar month which has fewer days, the first day of the policy month will be the last day of such calendar month. The Date of Issue is not a Processing Date. 
  
 “We”, “us” and “our” refer only to the Company. 
  
 “Written notice” means, unless otherwise stated, a written notice filed at our Home
Office in Boston, Massachusetts. 
  
 “You” and “your” refer
only to the Owner of this policy. 
  
 4. SUM INSURED 
  
 The Total Sum Insured on any date equals the sum of the Basic Sum Insured (“BSI”)
on that date and the Additional Sum Insured (“ASI”), if any, on that date. 
  
 The BSI and any ASI are equal to their respective amounts at issue as shown on page 3 until changed. A change will not be effected that would reduce the Basic Sum Insured or the Total Sum Insured below its respective minimum value as shown
on page 3. Scheduled changes are elected on the application. The following unscheduled changes may be made: 
  

	 	(i)	Requested Change in ASI – A change in ASI may be requested by written notice at any time after the first policy year. We reserve the right to limit the number and maximum and
minimum amounts of requested changes. A request may be made to increase the ASI, but not the BSI. A request to increase the ASI will be subject to our approval. We will require evidence of insurability satisfactory to us as part of our approval. A
minimum premium payment may also be required. When a requested increase or decrease becomes effective, and if then required by our rules, a Withdrawal and/or a change in future Planned Premiums will automatically be effected to comply with those
rules. Any decrease will be effective on the next Processing Date after our approval. 

  

	 	(ii)	Requested Change in Death Benefit Option – The BSI may vary as provided in the “Death Benefit” provision, 

  

	 	(iii)	Change Due to a Withdrawal – The Total Sum Insured may vary as provided in the “Surrender” provision. 

  
 The provisions of this policy are to be interpreted to ensure or maintain qualification as a
life insurance contract for federal tax purposes, notwithstanding any other provisions to the contrary. 
  

	 	•	 	The following applies if the Tax Test Elected for federal income tax purposes, as shown on page 3, is the Guideline Premium Test. If at any time the premiums paid under the Policy
exceed the amount allowable for such tax qualification, such excess amount shall be removed from the Policy as of the date of its payment, together with interest thereon from such date, and any appropriate adjustment in the Death Benefit shall be
made as of such date. Such excess amount and interest shall be refunded to the Owner no later than 60 days after the end of the applicable Policy Year. If such excess amount and interest is not refunded by then, we will add or increase the
Additional Sum Insured under the policy retroactively by the lowest amount necessary to ensure or maintain such tax qualification. 

  

	 	•	 	The following applies if the Tax Test Elected for federal income tax purposes, as shown on page 3, is the Cash Value Accumulation Test. If at any time the amount of the Required
Additional Death Benefit or Optional Extra Death Benefit, as determined in Section 5, Death Benefit, is insufficient for this policy to qualify as life insurance under federal tax law, the amount of Required Additional Death Benefit or Optional
Extra Death Benefit shall be increased further by the lowest amount necessary to ensure or maintain such tax qualification. 

  

 5 

 5. DEATH BENEFIT 
  
 The Death Benefit will equal the death benefit of the policy minus any indebtedness on the date of death. We will also deduct any unpaid charges under Section 9. In
addition, if the Insured dies during a grace period as described in Section 8, we will also deduct the amount of any unpaid shortfall described in that section. 
  

The death benefit of the policy depends in part on which of the following Options is in effect. The Option at Issue is selected in the application for the policy.

  
 Option A: The death benefit is the Total Sum Insured,
plus any Required Additional Death Benefit as described below. 
  
 Option B: The death benefit is the Total Sum Insured plus the Account Value on the date of death of the Insured, plus any Required Additional Death Benefit as described below. 
  
 Option M: The death benefit is the Total Sum Insured, plus any
Optional Extra Death Benefit as described below. If the application indicates that calculation of the Optional Extra Death Benefit does not begin at the Date of Issue, the death benefit will be determined as described for Option A until the policy
year at which the anniversary on which the Optional Extra Death Benefit calculation begins. 
  

	 	•	 	Required Additional Death Benefit For Options A and B (and for Option M if prior to calculation date) 

  
 If death benefit Option A or B has been selected, the death benefit of the
policy will be increased if necessary to ensure that the policy will continue to qualify as life insurance under federal tax law. The amount of any such increase is the Required Additional Death Benefit. 
  
 With respect to Option A (and for Option M if prior to calculation date),
the Required Additional Death Benefit on any date will be equal to the amount, if any, by which the Total Required Death Benefit as of such date, as defined below, exceeds the Total Sum Insured. 
  
 With respect to Option B, the Required Additional Death Benefit on any date
will be equal to the amount, if any, by which the Total Required Death Benefit as of such date, as defined below, exceeds the sum of the Total Sum Insured and the Account Value. 
  
 The Total Required Death Benefit will equal (i) the Account Value multiplied by (ii) the applicable Required Additional
Death Benefit factor shown in Section 2. 
  
 A charge for any
Required Additional Death Benefit in effect on any Processing Date will be deducted from the Account Value on such date. Such charge will be determined as described in the Cost of Insurance Charge subsection of Section 9. 
  

	 	•	 	Optional Extra Death Benefit for Option M 

  
 If death benefit Option M has been selected, the death benefit of the policy will be increased if necessary to ensure that the death benefit of the policy
is not less than the Option M Target Death Benefit. The amount of any increase is the Optional Extra Death Benefit. 
  
 The Optional Extra Death Benefit on any date will be equal to the amount, if any, by which the Option M Target Death Benefit as of such date, as defined
below, exceeds the Total Sum Insured. 
  

 6 

 The Option M Target Death Benefit will be equal to (i) the Account Value on such date multiplied by (ii)
the applicable Optional Extra Death Benefit factor shown in Section 2. 
  
 A charge for any Optional Extra Death Benefit in effect on any Processing Date will be deducted from the Account Value on such date. Such charge will be determined as described in the Cost of Insurance Charge subsection of Section 9.

  

	 	•	 	Change of Death Benefit Option 

  
 You may change from Options B to Option A, Option M to Option A, or Option A to Option M. At the time a change from Option B to Option A, the Death
Benefit under the new Option will be the same as it was under the old Option. A change from Option B will therefore increase the Basic Sum Insured by the Account Value at the time the new Option takes effect. A change to Option M will require
evidence of insurability satisfactory to us. 
  
 6. INCREASE IN CREDITED RATE

  
 We will determine the rate or rates of interest to be credited to the
Account Value. In no event will the minimum credited interest rate be less than the effective annual guaranteed credited interest rate as shown on page 3. 
  
 Beginning in Policy Year 11 and through Policy Year 20, if the credited rate of interest is at least 5.00%, then such credited rate of interest will be increased by .50%.
Beginning in Policy Year 21 and continuing thereafter, if the credited rate of interest is at least 5.00% then such credited rate of interest will be increased by .90%. 
  
 The increase in credited rate is applied only to amounts of Account Value in excess of indebtedness. 
  
 7. PREMIUM PAYMENTS 
  
 Payments of premiums shall be made only to us at our Home Office. 
  
 Planned Premiums as of the Date of Issue are shown on page 3 and in the application. They are scheduled to be paid on the first day of their
premium interval. You may request a change in the amount and frequency of future Planned Premiums, subject to any limitations then in effect. We may make changes in the amount of future Planned Premiums in accordance with the “Sum
Insured”, “Death Benefit”, and “Surrenders” provisions of the policy. 
  
 Subject to our minimum and maximum limits, additional premiums may be paid while the policy is in force. 
  
 When we receive a premium payment we will deduct a Sales Charge, premium tax, DAC tax, and any rider charges, if applicable, as shown on page 3A. The remainder will
constitute Net Premium. 
  
 We may refuse to credit all or part of a premium
payment if the total of premiums paid then exceeds the total of all Planned Premiums scheduled to be paid from the Date of Issue as shown on the application. Any uncredited excess will be refunded or applied as otherwise agreed. 
  
 8. GRACE PERIOD 
  
 If on a Processing Date, prior to the deduction of Expense Charges and the Cost of Insurance Charge, such deductions exceed the Account
Value less any indebtedness, this policy will be in default as of such Processing Date (“date of default”) and will remain in force for a grace period of 61 days from the date of default. We will send notice of the minimum premium that we
require to keep the policy in force beyond the end of the grace period. If such minimum premium is not received by the end of the grace period, the policy will terminate without value. 
  
 The minimum premium that we require will be equal to a payment which produces a Net Premium at least equal to: (i) the shortfall on the date
of default plus (ii) all Expense Charges and Cost of Insurance Charges as described in Section 9 for the next two Processing Dates, where such charges are assumed to be equal to those calculated on the date of default. 
  
 If the Insured dies during the Grace Period, we will deduct from the proceeds any unpaid
charges. 
  

 7 

 9. ACCOUNT VALUE 
  
 On the later of the Date of Issue or the receipt of the first payment at our Home Office the Account Value will be equal to the Net Premium credited less the Monthly
Deductions shown on page 3A. The first Cost of Insurance Charge is due on the Date of Issue. The Account Value is then determined daily by accumulating at interest the Account Value for the prior day increased by Net Premiums credited and decreased
by Withdrawals and, on a Processing Date, the Expense Charges and Cost of Insurance Charge. 
  
 Interest 
  
 We will determine the rate or rates of interest to be credited to the Account Value. In no event will the credited interest rate be less than the effective annual
guaranteed credited interest rate as shown on page 3. 
  
 We will determine a
separate rate of interest to be credited to: (i) amounts of Account Value up to and including indebtedness; and (ii) amounts of Account Value in excess of indebtedness. The rate of interest credited to (i) will be no less than the current Loan
Interest Rate for this policy less 1.25 % for the first ten Policy Years, .75% for Policy Years 11–20, and .35% thereafter. 
  
 Expense Charges 
  
 We will deduct from the first Net Premium, and from the Account Value on each applicable Processing Date, the Issue Charge shown on Page 3A. We will deduct from the
Account Value on each Processing Date an Administrative Charge, which is also shown on page 3A. 
  
 Cost of Insurance Charge 
  
 The Cost of Insurance Charge on the Date of Issue or on any Processing Date is the charge for the Net Amount at Risk and and for all ratings, if applicable. The charge
for the Net Amount at Risk is an amount equal to the applicable Applied Monthly Rate divided by 1,000 then multiplied by the Net Amount at Risk on the Date of Issue or such Processing Date as the case may be. Each Cost of Insurance Charge is
deducted in advance of the insurance coverage to which it applies. 
  
 The Net
Amount at Risk is the amount determined by subtracting (a) from the greater of (b) or (c) where: 
  

	 	(a)	is the Account Value at the end of the immediately preceding day less all charges due on the Date of Issue or Processing Date; 

  

	 	(b)	(i) is the Sum Insured divided by 1.0032737 for death benefit option A or death benefit option M; or 

  
 (ii) is the Sum Insured divided by 1.0032737 plus the amount defined in (a) above for death benefit option B; and

  

	 	(c)	is the amount defined in (a) above, multiplied by the applicable Death Benefit Factor described in Section 5. 

  
 The Applied Monthly Rates are the actual rates used to calculate the Cost of Insurance
Charge. We will determine the Applied Monthly Rates to be used for this policy. They will not exceed the Maximum Monthly Rates shown in the applicable Table of Rates in Section 2. The Applied Monthly Rates will be based on our expectations of future
mortality experience. They will be reviewed at least once every 5 policy years. Any change in Applied Monthly Rates will be made on a uniform basis for Insureds of the same sex. Issue Age, and Premium Class, including tobacco user status, and whose
policies have been in force for the same length of time. 
  

 8 

 10. LOANS 
  
 You may borrow money from us on receipt at our Home Office of a completed form satisfactory to us assigning the policy as the only security for the loan. 
  
 Loans may be made if a Loan Value is available. Each loan must be for at least $1,000. We may
defer loans as provided by law. We will not defer loans for more than 6 months. We will not defer loans that are applied to pay premiums on our policies. Loans may not be made if the policy is in a grace period. 
  
 The Loan Value while the policy is in force will be equal to (a) minus (b) minus (c) where:

  

	 	(a)	is the Account Value; 

  

	 	(b)	is twelve times the sum of all monthly charges deducted from the Account Value for the policy month in which the loan is obtained; and 

  

	 	(c)	is (a) above minus (b) above multiplied by 1.25% in Policy Years 1 through 10, .75% in Policy Years 11 through 20, and .35% thereafter. 

  
 The amount of loan available will be the Loan Value less any existing indebtedness.

  
 Loan interest at a rate described in the “Variable Loan Interest
Rate” provision below will accrue daily beginning on the date of the loan. Loan interest will be added to the indebtedness daily and will bear interest at the same rate from the date added. 
  
 Indebtedness may be repaid in full or in part at any time before the Insured’s death,
and while the policy is in force. 
  
 Variable Loan Interest Rate

  
 We will annually determine in the month preceding the policy anniversary
the Loan Interest Rate for this policy. This rate will apply to all indebtedness outstanding during the policy year next following the date of determination. The rate will not exceed the higher of (a) the “Published Monthly Average” for
the calendar month which is two months before the month in which the date of determination occurs; and (b) 5.25%. 
  
 The “Published Monthly Average” means Moody’s Corporate Bond Yield Average – Monthly Average Corporates as published by Moody’s Investors
Service, Inc. or any successor thereto. If the “Published Monthly Average” is no longer published, we reserve the right to select a substitute that we deem appropriate, subject to applicable law, regulation, or other state requirement.

  
 When a new rate is determined: (a) we may increase the previous rate if the
increase would be at least 1/2%; and (b) we must reduce the previous rate if the decrease would be at least 1/2%. We will: (a) notify you of the initial Loan Interest Rate at the time a loan is made; and (b) notify you in advance of a policy
anniversary of any increase in the Loan Interest Rate if there is outstanding indebtedness on the policy. 
  

 9 

 11. SURRENDERS 
  
 We will pay the Surrender Value of the policy on receipt of written notice and the policy before the Insured’s death. On such receipt the policy will terminate
without further value. 
  
 The Surrender Value will be equal to the Account Value
less any indebtedness. 
  
 After the first policy year you may request a surrender
of less than the Surrender Value, which is called a Withdrawal. The total of a Withdrawal is equal to your requested amount plus a processing charge of $20.00. Each Withdrawal must be at least $1,000. We will pay the requested amount on receipt of
written notice and the policy before the Insured’s death. 
  
 On such receipt
we will deduct the amount of the Withdrawal from the Account Value and the Total Sum Insured in the following manner: 
  

	 	(a)	if Death Benefit Option A or M is in effect, we will deduct an amount equal to a portion or all of the Withdrawal from the Account Value until the total Withdrawal has been deducted
or, if sooner, when the Account Value multiplied by the Required Additional Death Benefit Factor (if Option A) or the Optional Extra Death Benefit Factor (if Option M) becomes equal to the Total Sum Insured. After that point is reached, we will
reduce the Account Value and also any ASI, followed by any BSI until the whole Withdrawal has been deducted from the Account Value and the Total Sum Insured. After a Withdrawal has been processed, the amount of any deduction from the Additional Sum
Insured will also be deducted from any future scheduled increases in the Additional Sum Insured and only increases in excess of such deduction will become effective; and 

  

	 	(b)	if Death Benefit Option B is in effect, we will deduct the amount of the Withdrawal from the Account Value and make no other adjustment. 

  
 The Withdrawal cannot exceed an amount equal to the Surrender Value less all Expense Charges
and Cost of Insurance Charges as described in Section 9 for the next three Processing Dates. No Withdrawal can be made unless the resulting Total Sum Insured is at least equal to the Minimum Total Sum Insured shown on page 3. We reserve the right to
limit the number of Withdrawals. If required by our rules in effect when the Withdrawal becomes payable, a reduction in future Planned Premiums will automatically be effected to comply with those rules. 
  
 We may defer the payment of any surrender but not for more than 6 months, or any shorter
period as provided by law, from the date we receive written notice and the policy. Interest on the amount of the payment at the effective annual guaranteed credited interest rate shown on page 3 will be credited for the period that the payment is
deferred. No other interest will be credited to such amount. 
  
 To surrender your
life insurance policy you must provide written notice to us. The notice must contain at least all of the following: 
  

	 	1)	An unequivocal request to surrender. 

  

	 	2)	The policy number to be surrendered. 

  

	 	3)	The Insured’s name on the policy to be surrendered. 

  

	 	4)	The policyowner’s signature and, if required by the policy or by a legally binding document of which we have actual notice, the signature of a collateral assignee, irrevocable
beneficiary, or other person having an interest in the policy through the legally binding document. 

  

	 	5)	Either the policy itself, or, in lieu of the policy, a statement that the policy itself has been lost or destroyed. 

  

 10 

 12. ANNUAL REPORT TO OWNER 
  
 We will send you a report at least once in each year which shows: 
  

	 	•	 	The Death Benefit, Total Sum Insured and Account Value as of the date of the report; 

  

	 	•	 	Premium payments received and charges made since the last report; 

  

	 	•	 	Withdrawals since the last report; and 

  

	 	•	 	Loan information. 

  
 13. BASIS OF COMPUTATIONS 
  
 Minimum
surrender values, reserves and net single premiums referred to in the policy, if any, are computed on the basis of the Commissioners 1980 Standard Ordinary Mortality Table with percentage ratings, if applicable, and based on the sex and the
underwriting class of the Insureds on the Date of Issue. The computations are made based upon age nearest birthday, using continuous functions. Computations for surrender values and reserves are made using the Guaranteed Credited Interest Rate shown
on page 3, and for net single premiums using the rate of 4% a year. 
  
 The
Account Value while the policy is in force is computed as described in Section 9. A detailed statement of the method of computation of values has been filed with insurance supervisory officials of the jurisdiction in which this policy has been
delivered or issued for delivery. The values are not less than the minimum values under the law of that jurisdiction. 
  
 Any values, reserves and premiums applicable to any provision for an additional death benefit shall be specified in the provision and have no effect in determining the
values available under the provisions of this Section 13. 
  
 14. REINSTATEMENT

  
 Subject to meeting the following conditions, the policy may be reinstated
within 3 years after the date termination occurs under the Grace Period provision. The requirements for reinstatement are: 
  

	 	(1)	Evidence of insurability satisfactory to us must be submitted; 

  

	 	(2)	Payment with interest at the Loan Interest Rate or such lesser rate as provided by law of the balance of unpaid Cost of Insurance Charge for the period before the policy terminated,
together with applicable Expense Charges as if this payment were a premium payment; and 

  

	 	(3)	A minimum premium sufficient to keep the policy in force for two months must be paid; and 

  

	 	(4)	Any indebtedness must be paid or reinstated. 

  
 The Suicide and Incontestability provisions will apply from the effective date of reinstatement. If the policy has been in force for 2 years during the lifetime of the
Insured, it will be contestable only as to statements made in the reinstatement application. 
  
 The effective date of a reinstated policy will be the monthly anniversary day on or next following the day we approve the application for reinstatement. 
  

 11 

 15. OWNER AND BENEFICIARY 
  
 The Owner and the Beneficiary will be as shown in the application unless you change them or they are changed by the terms of this provision.

  
 You shall have the sole and absolute power to exercise all rights and
privileges without the consent of any other person unless you provide otherwise by written notice. 
  
 If there is no surviving Beneficiary upon the death of the Insured, you will be the Beneficiary, but if you were the Insured, your estate will be Beneficiary. 
  
 While the Insured is alive, you may change the Owner and Beneficiary by written notice. No
change or revocation will take effect unless we acknowledge receipt on the notice. If such acknowledgment occurs, then (i) a change of Beneficiary will take effect on the date the notice is signed, and (ii) a change or a revocation of Owner will
take effect as of the date specified in the notice, or if no such date is specified, on the date the notice is signed. A change or revocation will take effect whether or not you or the Insured is alive on the date we acknowledge receipt. A change or
revocation will be subject to the rights of any assignee of record with us and subject to any payment made or other action taken by us before we acknowledge receipt. 
  
 16. INTEREST ON PROCEEDS 
  
 We will pay interest on proceeds paid in one sum in the event of the Insured’s death from the date of death to the date of payment. The rate will be the same as
declared for Option 1 in Section 23, Settlement Provisions. 
  
 17. CLAIMS OF
CREDITORS 
  
 The proceeds and any income payments under the policy will be
exempt from the claims of creditors to the extent permitted by law. 
  
 18.
ASSIGNMENT 
  
 Your interest in this policy may be assigned without the
consent of any revocable Beneficiary. Your interest, any interest of the Insured and of any revocable Beneficiary shall be subject to the terms of the assignment. 
  
 We will not be on notice of any assignment unless it is in writing, nor will we be on notice until a duplicate of the original assignment
has been filed at our Home Office. We assume no responsibility for the validity or sufficiency of any assignment. 
  

 12 

 19. INCONTESTABILITY 
  
 This policy, except any provision for reinstatement or policy change requiring evidence of insurability, shall be incontestable after it has been in force during the
lifetime of the Insured for two years from its Date of Issue, unless fraud is involved and except when premium payments are insufficient to keep the policy in force. 
  
 A reinstatement and any policy change requiring evidence of insurability shall be incontestable after it has been in force during the
lifetime of the Insured for two years from the effective date of such reinstatement or policy change, except when premium payments are insufficient to keep the policy in force. 
  
 Any premium payment which we accept under Section 7 subject to insurability shall be considered a policy change. The Death Benefit resulting
from such payment shall be governed by the immediately preceding paragraph. 
  
 20. MISSTATEMENT OF AGE OR SEX 
  
 If the age or sex of the
Insured has been misstated, we will adjust the Basic Sum Insured, any Additional Sum Insured, and every other benefit to that which would have been purchased at the correct age or sex by the most recent Cost of Insurance charge deducted under
Section 9. 
  
 21. SUICIDE 
  
 If the Insured commits suicide, while sane or insane, within two years from the Date of
Issue, the policy will terminate on the date of such suicide and we will pay (in place of all other benefits, if any) an amount equal to the premiums paid less the amount of any indebtedness on the date of death and less any Withdrawals under
Section 11. If the Insured commits suicide, while sane or insane, after 2 years from the Date of Issue and within 2 years from the effective date of any increase in the Death Benefit resulting from any payment of premium we are authorized to refuse
under Section 7, the benefits payable under the policy will not include the amount of such Death Benefit increase but will include the amount of such premium, less the amount of any indebtedness on the date of death and any Withdrawals applicable,
to such death Benefit increase. 
  
 22. THE CONTRACT 
  
 The written application for the policy is attached at issue. The entire contract between the
applicant and us consists of the policy and such application. However, additional written applications for policy changes or acceptance of excess payment under Section 7 may be submitted to us after issue and if accepted by us such additional
applications become part of the policy. All statements made in any application shall, in the absence of fraud, be deemed representations and not warranties. We will use no statement made by or on behalf of the Insured to defend a claim under the
policy unless it is in a written application. 
  
 Policy years, policy months, and
policy anniversaries are measured from the Date of Issue. 
  
 Any reference in
this policy to a date means a calendar day ending at midnight local time at our Home Office. 
  
 Only the President, Vice President, the Secretary, or an Assistant Secretary of the Company has authority to waive or agree to change in any respect any of the conditions or provisions of the policy, or to extend
credit or to make an agreement for us. 
  

 13 

 23. SETTLEMENT PROVISIONS 
  
 OPTIONAL METHODS OF SETTLEMENT 
  
 In place of a single payment, an amount of $1,000 or more payable under the policy as a benefit, as a Withdrawal or as the Surrender Value, if any, may be left with us,
under the terms of a supplementary agreement. The agreement will be issued when the proceeds are applied through the choice of any one of the options below, or any additional options we, in our sole discretion, may make available after issue. We
shall at least annually declare the rate of interest or amount of payment for each option. Such declaration shall be effective until the date specified in the next declaration. 
  
 Option 1 – Interest Income at the declared rate but not less than 3.5% a year on proceeds held on deposit. The proceeds may be
paid or withdrawn in whole or in part at any time as elected. 
  
 Option 2A
– Income of a Specified Amount, with payments each year totaling at least 1/12th of the proceeds, until the proceeds plus interest is paid in full. We will credit interest on unpaid balances at the declared rate but not less than 3.5% a
year. 
  
 Option 2B – Income for a Fixed Period with each payment as
declared but not less than that shown in the Table for Option 2B. 
  
 Option 3
– Life Income with Payments for a Guaranteed Period, with each payment as declared but not less than that shown in the Table for Option 3. If the Payee dies within that period, we will pay the present value of the remaining payments. In
determining present value, we will use the same interest rate used to determine the payments for this option. 
  
 Option 4 – Life Income without Refund at the death of the Payee of any part of the proceeds applied. The amount of each payment shall be as declared but not less than that shown in the Table for Option 4.

  
 Option 5 – Life Income with Cash Refund at the death of the Payee
of the amount, if any, equal to the proceeds applied less the sum of all income payments made. The amount of each payment shall be as declared but not less than that shown in the Table for Option 5. 
  
 You may choose an option by written notice to us: (a) while the Insured is alive; and (b)
before the proceeds become payable. If you have made no effective choice, you may make one by written notice within: (a) 6 months after the death of the Insured; or (b) 2 months after the date on which the proceeds, if any, are payable in any case
except death. 
  
 No choice of an option may provide for payments of less than
$50.00. The first payment will be payable as of the date the proceeds are applied, except that under Option 1 it will be payable at the end of the first payment interval. 
  
 No option may be chosen without our consent if the proceeds are payable: (1) in any case, except death, before the policy has been in force
on the same plan for at least 5 years; or (2) in any case to an executor, administrator, trustee, corporation, partnership, association, or assignee. 
  
 A Payee may, by written notice, name and change a Contingent Payee to receive any final amount that would otherwise be payable to the Payee’s estate. 
  

 14 

 Table for Options 2B, 3, 4 and 5 
  
 (Monthly payments for each $1000 of proceeds applied)

  

													
	OPTION 2B
Income for a Fixed Period

	 	 Age of Payee on
 Birthday Nearest
 Date of First
 Payment

	 	 OPTION 3
 Life Income with
 Guaranteed Period

	 	 OPTION 4
 Life
Income
 without
Refund

	 	 OPTION 5
 Life
Income
 with Cash
Refund

	 Period
 of Years

	 	Payment

	 	 	10 Years

	 	20 Years

	 	 
	  1	 	84.46	 	40	 	3.53	 	3.50	 	3.54	 	3.46
	  2	 	42.86	 	41	 	3.57	 	3.54	 	3.58	 	3.50
	  3	 	28.99	 	42	 	3.62	 	3.58	 	3.63	 	3.54
	  4	 	22.06	 	43	 	3.66	 	3.62	 	3.68	 	3.58
	  5	 	17.91	 	44	 	3.77	 	3.66	 	3.73	 	3.62
							
	  6	 	15.14	 	45	 	3.76	 	3.71	 	3.78	 	3.66
	  7	 	13.16	 	46	 	3.82	 	3.75	 	3.83	 	3.71
	  8	 	11.68	 	47	 	3.87	 	3.80	 	3.89	 	3.75
	  9	 	10.53	 	48	 	3.93	 	3.85	 	3.95	 	3.80
	10	 	9.61	 	49	 	3.99	 	3.90	 	4.02	 	3.85
							
	11	 	8.86	 	50	 	4.05	 	3.95	 	4.08	 	3.91
	12	 	8.24	 	51	 	4.12	 	4.01	 	4.15	 	3.96
	13	 	7.71	 	52	 	4.19	 	4.06	 	4.22	 	4.02
	14	 	7.26	 	53	 	4.26	 	4.12	 	4.30	 	4.08
	15	 	6.87	 	54	 	4.34	 	4.18	 	4.38	 	4.15
							
	16	 	6.53	 	55	 	4.42	 	4.24	 	4.47	 	4.21
	17	 	6.23	 	56	 	4.50	 	4.31	 	4.56	 	4.28
	18	 	5.96	 	57	 	4.59	 	4.37	 	4.66	 	4.36
	19	 	5.73	 	58	 	4.69	 	4.44	 	4.76	 	4.44
	20	 	5.51	 	59	 	4.79	 	4.50	 	4.87	 	4.52
							
	21	 	5.32	 	60	 	4.89	 	4.57	 	4.99	 	4.60
	22	 	5.15	 	61	 	5.00	 	4.64	 	5.11	 	4.69
	23	 	4.99	 	62	 	5.12	 	4.71	 	5.25	 	4.78
	24	 	4.84	 	63	 	5.24	 	4.77	 	5.39	 	4.88
	25	 	4.71	 	64	 	5.37	 	4.84	 	5.54	 	4.99
							
	26	 	4.59	 	65	 	5.50	 	4.91	 	5.70	 	5.09
	27	 	4.47	 	66	 	5.64	 	4.97	 	5.87	 	5.21
	28	 	4.37	 	67	 	5.79	 	5.03	 	6.06	 	5.33
	29	 	4.27	 	68	 	5.94	 	5.09	 	6.26	 	5.46
	30	 	4.18	 	69	 	6.10	 	5.14	 	6.47	 	5.59
	Annual, Semi-annual or	 	70	 	6.27	 	5.19	 	6.69	 	5.73
	quarterly payments	 	71	 	6.44	 	5.24	 	6.94	 	5.88
	under Option 2B are	 	72	 	6.61	 	5.28	 	7.20	 	6.04
	11.839, 5.963 and 2.993	 	73	 	6.79	 	5.32	 	7.48	 	6.20
	respectively times the	 	74	 	6.98	 	5.36	 	7.79	 	6.38
	monthly payments.	 	 	 	 	 	 	 	 	 	 
	 	 	75	 	7.16	 	5.38	 	8.11	 	6.56
	 	 	76	 	7.35	 	5.41	 	8.47	 	6.75
	 	 	77	 	7.54	 	5.43	 	8.84	 	6.96
	 	 	78	 	7.72	 	5.45	 	9.25	 	7.17
	 	 	79	 	7.91	 	5.46	 	9.69	 	7.39
	 	 	80	 	8.08	 	5.48	 	10.17	 	7.64
	 	 	81	 	8.25	 	5.49	 	10.68	 	7.88
	 	 	82	 	8.41	 	5.49	 	11.23	 	8.13
	 	 	83	 	8.56	 	5.50	 	11.82	 	8.43
	 	 	84	 	8.71	 	5.50	 	12.46	 	8.70
	 	 	85 & over	 	8.83	 	5.51	 	13.14	 	8.99
		
	 	 	Options 3, 4 and 5 are available only at the ages as shown.

  

 15

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