Document:

exv10w4wa

Exhibit 10.4(a)

May 20, 2009

Jim Hohmann

CEO, FBL Financial Group, Inc. (“FBL”)

5400 University Avenue

West Des Moines, IA 50266

			
	Re:	 	Forbearance Agreement/Dividend Reduction

Dear Jim:

As you are aware, pursuant to paragraph 7(d) of the royalty agreement between the Iowa Farm Bureau
Federation (“IFBF”) and the insurance companies that are managed by FBL, Farm Bureau Mutual
Insurance Company and Farm Bureau Life Insurance Company (hereinafter “Insurance Companies”), a
reduction in the quarterly dividend by FBL below $.10 per share creates a power of termination of
the agreement on the part of the IFBF.

Under the current circumstances, IFBF wishes to, at the least, temporarily forgo its right of
termination as otherwise provided under the agreement. This forbearance by the IFBF would be until
February 28, 2010, and is conditioned upon:

	 	1)	 	No further reduction in the quarterly dividend below the $0.0625 currently declared for
the remaining three quarters of 2009; and
	 
	 	2)	 	An acknowledgement on the part of the Insurance Companies that IFBF is waiving no
rights or claims under the royalty agreement by this forbearance.

If you wish to accept the terms of this offer of forbearance on behalf of the insurance companies,
please acknowledge the same by signing below.

Sincerely yours,

/s/ CRAIG LANG

Craig Lang

President, Iowa Farm Bureau Federation

 

5400 University Avenue, West Des Moines, IA 50266-5997 / (515) 225-5400

 

Acceptance:

The undersigned, as CEO of Farm Bureau Mutual Insurance Company and Farm Bureau Life Insurance
Company, does acknowledge agreement to the terms of the forbearance set forth above.

	 	 	 
	/s/ JAMES E. HOHMANN
 

James E. Hohmannexv10w29xay

Exhibit 10.29(a)

BONUS METRIC SCHEDULE

For

2009 Restricted Stock Agreement

Between

James E. Hohmann (Employee) & FBL Financial Group, Inc. (Company)

The qualifications for consideration of the amount of Forfeiture Restrictions which shall lapse (if
any) by the Contingent Lapse Date under Paragraph 2(b)(ii) of the Restricted Stock Agreement dated
April 29, 2009 shall be made in accord with the following:

	1.	 	Lapse Conditions. The Forfeiture Restrictions may lapse as to the shares subject to
Paragraph 2(b)(ii) of the Restricted Stock Agreement as follows:

	 	 	 	 	 
	Goal	 	% Forfeiture Restrictions Lapse
	20% increase in Class A Common Share Price

	 	 	100	%
	10% increase in Class A Common Share Price

	 	 	50	%
	5% increase in Class A Common Share Price

	 	 	0	%

	 	 	Percentage increases in Class A Common Share Price between 5% and 10%, and between 10% and 20%,
will result in a prorated increase in the percentage of shares as to which Forfeiture
Restrictions lapse. The percentage increase (if any) in Class A Common Share Price shall be
calculated as follows: [Closing Stock Price (End of Term of Employment) + Dividend Per Share
(during Term of Employment)] — Closing Stock Price (Day prior to Start of Term of Employment) ÷
Closing Stock Price (Day prior to Start of Term of Employment). The Closing Stock Price (Day
prior to Start Term of Employment) is agreed to be $5.52.
	 
	2.	 	Additional Considerations. To the extent that the conditions set forth in Paragraph 1 above
are met as to the lapse of any Forfeiture Restrictions, the following additional criteria may
be used in determining the number (if any) of shares to which the Forfeiture Restriction lapse
may apply:
	 

	 	 	 	 	 	 
	A) 	Description	 	Weighting Factor
	

	Rating Restoration of Life Companies

	 	 	60	%

	 	 	Create a plan designed to restore AM Best ratings to Farm Bureau Life Insurance Company and
EquiTrust Life Insurance Company to A (Excellent) by ***.
	 
	 	 	For purposes of measurement during the Term of Employment, achievement of any one of the items
from Class I; or any two of the items from Class II; or any four items from Class III, all as
listed below, may be considered 100% attainment of this goal.
	 
	 	 	Class I:

	 	•	 	Upgrade of Farm Bureau Life (FBL) by AM Best
	 
	 	•	 	Removal of negative outlook by AM Best from EquiTrust Life (ET)

Confidential materials omitted and filed separately with the Securities and Exchange Commission. Asterisks

denote such omission.

Bonus Metric Schedule — Page 1

 

 

	 	 	Note: Any downgrade of either company or rating or outlook would erase any upgrade of the other
company as it pertains to this Schedule.
	 
	 	 	Class II:

	 	•	 	Maintain or improve RBC ratio of FBL, while increasing ET RBC ratio by *** points (both
measured from levels as of March 31, 2009).
	 
	 	•	 	Reduction in the portfolio’s March 31, 2009 unrealized loss position by $***, without
realizing losses or other than temporary impairments through attainment of goal, calculated
prior to accounting offsets.
	 
	 	•	 	Reduction in the dollar amount of debt at holding company by *** (change measured from
level as of March 31, 2009), without dilution to current Class A shareholders.
	 
	 	•	 	Increase ET ROE by ***. ROE shall be calculated using operating income, with securities
amortized at cost.

	 	 	Class III:

	 	•	 	Develop and implement new annuity product portfolio at ET with ***% or greater unlevered
IRR’s at ***% RBC and ***. Product approval required from states from which half of ET’s
2008 annuity premium was received.
	 
	 	•	 	***.
	 
	 	•	 	***.
	 
	 	•	 	Create internal standards and appropriate models so Duration can be used as an effective
management tool to mitigate interest rate exposure (standards should include a dynamic
shock lapse model).
	 
	 	•	 	Asset Repositioning- Reduce *** rated security exposure to below ***% of total holdings,
without realization of material impairments or loss of material income potential.
	 
	 	•	 	Asset Repositioning — Reduce *** of current holdings, without realization of material
impairments or loss of material income potential.
	 
	 	•	 	Demonstrate to external constituents (rating agencies, investors, etc.) that tail risks
(convexity, lapse, duration, etc.) are being managed by retooling the ALM process to be
consistent with best practices.

	 	 	 	 
	B) 	Description 	 	Weighting Factor
	
	Strategic Review of FBL Enterprise
	 	30%

	 	 	Development of a comprehensive and sustainable business plan for enterprise including but not
limited to the following:

	 	•	 	EquiTrust

	 	•	 	Business Plan that includes:

	 	•	 	Stabilization

Confidential materials omitted and filed separately with the Securities and Exchange Commission. Asterisks

denote such omission.

Bonus Metric Schedule — Page 2

 

 

	 	•	 	Short, intermediate, long-term metrics/projections/plans
	 
	 	•	 	Product array that address:

	 	1.	 	Profitability
	 
	 	2.	 	Capital constraints
	 
	 	3.	 	Distribution risk management

	 	•	 	Management Review and Plan that includes:

	 	•	 	Identifying appropriate management for enterprise/including appropriate
personnel changes
	 
	 	•	 	Creating and implementing appropriate product review process
	 
	 	•	 	Creating and implementing appropriate pricing review process

	 	•	 	Strategic Enterprise Review

	 	•	 	Assist the Board in outlining a strategic review of the business
enterprise, including:

	 	•	 	***
	 
	 	•	 	The opportunities and challenges of the Farm Bureau market and the
appropriate enterprise relationship with Farm Bureau Mutual Insurance
Company
	 
	 	•	 	How to improve the competitive position and profitability of the
enterprise — a strategic review of the potential of the enterprise would
include:

	 	1.	 	The potential to improve efficiency and
lower costs
	 
	 	2.	 	Obtainable target ROE’s
	 
	 	3.	 	Overall product reviews
	 
	 	4.	 	Overall business segment reviews
	 
	 	5.	 	Review of ratings and capital levels
necessary for the enterprise
	 
	 	6.	 	Review of the enterprise’s risk
management policies and procedures

	 	•	 	Delivery of a documented business plan including the above areas may be considered 100%
attainment of this goal.

	 	 	 	 	 	 
	C) 	Description	 	Weighting Factor
	

	Executive Management Team Structure

	 	 	10	%

	 	 	Objective is to secure a management team structure best able to deliver the results necessary
for the enterprise, staffed with individuals that contain the appropriate skill sets. For
purposes of measurement during the Term of Employment, achievement of the following may be
considered 100% attainment of this goal:

	 	•	 	Identify and fill any “missing positions” ***.
	 
	 	•	 	Deliver stronger performance management as evidenced by a flatter performance rating
distribution ***.
	 
	 	•	 	Codify a succession planning framework that begins with organizational design and
capabilities and extends out to individuals. This will involve some back and forth with

Confidential materials omitted and filed separately with the Securities and Exchange Commission. Asterisks

denote such omission.

Bonus Metric Schedule — Page 3

 

 

	 	 	 	the compensation committee and may extend beyond year end, but a discussion framework
should be delivered.

	3.	 	Controlling Agreement. The definition and usage of terms contained in the 2009 Restricted
Stock Agreement dated April 29, 2009, executed by Employee and Company to which this Schedule
pertains, shall control as to the definition and usage of terms used herein.

IN WITNESS WHEREOF, the individuals executing below certify adoption of this Schedule as of the
29th day of June 2009.

/s/ Jerry L. Chicoine 

Jerry L. Chicoine, Lead Director

/s/ John E. Walker 

John E. Walker, Chairman of the

Management Development & Compensation 
Committee

The undersigned acknowledges receipt of an original of this Schedule.

/s/ James E. Hohmann 

James E. Hohmann

Confidential materials omitted and filed separately with the Securities and Exchange Commission. Asterisks

denote such omission.

Bonus Metric Schedule — Page 4

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