Document:

ai-ex104_8.htm

Exhibit 10.4

 

ARLINGTON ASSET INVESTMENT CORP.

 

Performance Restricted Stock Unit Agreement

 

 

THIS AWARD AGREEMENT (this “Agreement”), dated as of the ________ day of __________, 202__, governs the Restricted Stock Unit award granted by ARLINGTON ASSET INVESTMENT CORP. (the “Company”), to [Participant name] (the “Participant”), in accordance with and subject to the provisions of the Company’s 2021 Long-Term Incentive Plan (the “Plan”).  A copy of the Plan has been made available to the Participant.  All terms used in this Agreement that are defined in the Plan have the same meaning given them in the Plan.

 

1.Grant of Performance RSU Award.  In accordance with the Plan, and effective as of [date] (the “Date of Grant”), the Company hereby grants to the Participant, subject to the terms and conditions of the Plan and this Agreement, an award of [number] Restricted Stock Units, in the form of “performance restricted stock units” (“Performance RSUs”), subject to the terms and conditions of this Agreement.

 

2.Vesting Based on Performance. The Performance RSUs will vest in accordance with the following provisions: 

 

(a)Performance Measures.  A percentage (from [number] percent to [number] percent) of the Performance RSUs may be earned in accordance with paragraph 2(b) based on [description of performance metrics]. Performance RSUs that are not earned in accordance with paragraph 2(b) shall be forfeited as of the last day of the Measurement Period.  Except as provided in paragraph 3, all of the Performance RSUs shall be forfeited on the date that the Participant is no longer providing services to the Company or an Affiliate (either as an employee or member of the Board) if such service ends before [date].

 

(b)Performance Targets.  [description of performance targets and associated payouts]

 

3.Termination of Employment.  Performance RSUs that are earned under paragraph 2 shall be vested on [date] so long as the Participant continues to provide services to the Company or an Affiliate, either as an employee of the Company or an Affiliate or a member of the Board, through such date.  Except as provided in the following paragraphs 3(a), 3(b), 3(c) and 3(d), Performance RSUs shall be forfeited as provided in paragraph 2 if the Participant ceases to provide services to the Company or an Affiliate, either as an employee of the Company or an Affiliate or a member of the Board, before [date]. 

 

(a)Death or Disability.  If the Participant provides continuous service to the Company or an Affiliate (either as an employee or member of the Board) from [date] until the 

 

 

date that such service ends on account of the Participant’s death or Disability prior to the end of the Measurement Period then (i) any Performance RSUs then outstanding shall not be forfeited on account of such termination of service and (ii) such Performance RSUs shall be earned in accordance with paragraph 2 and any such Performance RSUs earned shall be vested; provided, however, that if the Participant’s service terminates on account of death or Disability before [date] then the number of Performance RSUs earned and vested shall be the number of Performance RSUs determined under paragraph 2 multiplied by a fraction.  The numerator of that fraction shall be the number of days that the Participant was employed by the Company or an Affiliate or a member of the Board on and after [date], and the denominator of that fraction shall be 365.

 

(b)Retirement.  If the Participant provides continuous service to the Company or an Affiliate (either as an employee or member of the Board) from [date] until the date that such service ends (before the end of the Measurement Period) on account of the Participant’s Retirement, and if upon such Retirement the Participant enters into a non-competition, non-solicitation, non-disclosure and non-disparagement agreement in a form acceptable to the Company, then (i) any Performance RSUs then outstanding shall not be forfeited on account of such termination of service and (ii) such Performance RSUs shall be earned in accordance with paragraph 2 and any such Performance RSUs earned shall be vested; provided, however, that if the Participant’s Retirement occurs before [date],then the number of Performance RSUs earned and vested shall be the number of Performance RSUs determined under paragraph 2 multiplied by a fraction.  The number of that fraction shall be the number of days that the Participant was employed by the Company or an Affiliate or a member of the Board on and after [date], and the denominator of that fraction shall be 365.

 

(c)Termination Without Cause.  If the Participant provides continuous service to the Company or an Affiliate (either as an employee or member of the Board) from [date] until the date that the Company or an Affiliate terminates the Participant’s employment for a reason other than Cause before the last day of the Measurement Period, then (i) any Performance RSUs then outstanding shall not be forfeited on account of such termination of service and (ii) the number of Performance RSUs that are earned and that become vested, if any, shall be determined by the Committee after the Measurement Period ends in its sole discretion; provided, however, that the number of Performance RSUs earned and vested shall not exceed the number of such Performance RSUs that are earned in accordance with paragraph 2.

 

(d)Change in Control.  If a Change in Control occurs during the Measurement Period and if the Participant provides continuous service to Company or an Affiliate (either as an employee or member of the Board) from [date] until the date of the Change in Control, then the outstanding Performance RSUs shall be earned and shall vest in accordance with Section 9.3 of the Plan.

 

4.Dividend Equivalents.  The Performance RSUs awarded to the Participant under this Agreement include the grant of Dividend Equivalents on each Performance RSU.  The 

 

 

Dividend Equivalent represents the opportunity to earn additional Shares based on the dividends paid on an equivalent number of Shares during the period that the Performance RSUs are outstanding, i.e., from the Date of Grant, until the date that the Performance RSUs are settled or forfeited in accordance with this Agreement.  Dividend Equivalents shall be deemed to be reinvested in additional Shares (on an unfunded basis and based on the value of the dividends and the Fair Market Value on the Ex-Dividend date for the dividend).  The accumulated Dividend Equivalents shall be paid (in the form of whole Shares) if, when and to the extent that the Performance RSUs are earned and settled.  Dividend Equivalents shall be forfeited if, when and to the extent that the underlying Performance RSUs are forfeited.

 

5.Settlement.  Any Performance RSUs and Dividend Equivalents that are earned in accordance with this Agreement and that become vested in accordance with paragraph 3 will be settled by the issuance of Shares (one Share will be issued for each Performance RSU and related Dividend Equivalent that are earned and vested), less the number of Shares with a Fair Market Value equal to the amount required to be withheld for income and employment taxes.  Only whole Shares will be issued under this Agreement and the Participant will receive a single cash payment in lieu of any fractional Share that the Participant is otherwise entitled to receive under this Agreement.  The net number of Shares (and cash representing any fractional Share) will be issued to the Participant (or, in the event of the Participant’s death prior to settlement, the person or persons or entity or entities entitled to the Shares under the Participant’s will or the laws of descent and distribution) as soon as practicable after the date on which they vest as set forth in paragraph 3, but in all events not later than March 15 of the year following the date on which they vest; provided, however,  that Performance RSUs and Dividend Equivalents that are earned in accordance with paragraph 3(d) shall be settled with the issuance of the net number of Shares (and cash representing any fractional Share) as soon as practicable after the Participant vests as provided in paragraph 3(d) but in all events not later than March 15 of the year following the year in which the Participant vests.  Shares that are issued in settlement of any Performance RSUs and Dividend Equivalents that are earned in accordance with this Agreement and that become vested in accordance with paragraph 3 will be issued pursuant to the Plan.

 

6.Definitions.  The following definitions apply for purposes of this Agreement:

 

(a)Cause means the Board’s determination, in good faith and after reasonable investigation, that the Participant (x) has been convicted of a felony; (y) has engaged in conduct relating to the Company that constitutes a material breach of fiduciary duty or fraud or (z) materially failed to follow a proper directive of the Board within the scope of the Participant’s duties and that is capable of being performed by the Participant with reasonable effort.  The Participant’s termination shall not be for Cause unless the Board gives the Participant written notice specifying the grounds that the Board asserts constitute Cause and the performance required to remedy the failure (if remediable) and the Participant fails to perform as required to remedy the failure during the thirty day period after receipt of the written notice (if the grounds are remediable).

 

 

 

 

(b)Disability means that the Participant is permanently and totally disabled as described in Code section 22(e)(3).

 

(c)Good Reason means the Participant’s resignation on account of (x) a material diminution of the Participant’s base salary or incentive compensation opportunity, (y) a material diminution in the Participant’s authority, duties or responsibilities or (z) a requirement that the Participant relocate the Participant’s principal office to a location more than fifty miles from his then current location.  A resignation shall not be with Good Reason unless the Participant gives the Board written notice  (within ninety days after the occurrence of the event that the Participant asserts constitute Good Reason) specifying the grounds that the Participant asserts constitute Good Reason and the performance required to remedy the failure, the Company does not remedy the grounds that are asserted as Good Reason within thirty days after the Participant’s notice and the Participant resigns within sixty days after such thirty day period.

 

(d)Measurement Period means the period beginning on [date] and ending on [date].

 

(f)Retirement means a voluntary resignation from employment with the Company and its Affiliates that the Committee, in its discretion, determines shall constitute a “Retirement” under this Agreement.

 

7.Transferability.  Performance RSUs and Dividend Equivalents cannot be transferred except by will or the laws of descent and distribution.  Subject to the requirements of applicable securities laws, Shares that are issued in settlement of Performance RSUs and Dividend Equivalents may be transferred, including by will or the laws of descent and distribution.  

 

8.Adjustments.  The terms of this Performance RSU award, including the number of Performance RSUs, the performance targets set forth in paragraphs 2(b) and the number of deemed Shares credited under Dividend Equivalents, shall be adjusted as determined by the Board in accordance with the Plan.

 

9.Shareholder Rights.  The Participant shall have no rights as a shareholder of the Company with respect to the Performance RSUs or Dividend Equivalents until, and then only to the extent that, the Performance RSUs and Dividend Equivalents are settled by the issuance of Shares.

 

10.No Right to Continued Employment or Service.  The grant of the Performance RSUs and Dividend Equivalents does not give the Participant any rights with respect to continued employment by, or service to, the Company or an Affiliate.  The grant of the Performance RSUs and the Dividend Equivalents does not affect the right of the Company or an Affiliate to terminate the Participant’s employment or service.

 

 

 

 

11.Holding Period. The Shares subject to the Performance RSU Award, reduced by the number of Shares withheld to satisfy withholding taxes, may not be sold or transferred before the earlier of (i) the first anniversary of the date on which the Performance RSU Award was settled or (ii) the date the Participant is no longer employed by, or providing services to, the Company or an Affiliate.

 

12.Governing Law.  This Agreement shall be governed by, and construed and interpreted in accordance with the laws of the Commonwealth of Virginia without reference to principles of conflict of laws.

 

13.Conflicts.  The Participant agrees that in the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall govern.

 

14.Section 409A. By accepting the grant of the Performance RSUs, the Participant agrees that the Performance RSUs and dividend equivalents granted hereunder are intended to be exempt from Section 409A of the Code and the regulations promulgated thereunder and shall be limited, construed and interpreted as such.  The Participant agrees that the Company may unilaterally modify this Award Agreement to fulfill this intent. In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on the Participant by Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.  

 

15.Participant Bound by Plan.  The Participant hereby acknowledges that a copy of the Plan has been made available to the Participant and the Participant agrees to be bound by all of the terms and provisions of the Plan.

 

16.Binding Effect.  This Agreement shall be binding upon the Participant and the Participant’s successors in interest and the Company and any successors to the Company.

 

IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the date first set forth above.

 

 

ARLINGTON ASSET INVESTMENT CORP.

 

 

				
	
By:
	
 
	
 
	
 

	
 
	
 
	
 
	
[NAME]

	
Title:Exhibit
10(i)(c) 

 

AMENDED
AND RESTATED COINSURANCE AND MODIFIED COINSURANCE

 AGREEMENT

 

by
and between

 

MEMBERS
Life Insurance Company

(referred
to as the “Company”)

 

and

 

CMFG
Life Insurance Company

(referred
to as the “Reinsurer”)

 

Effective
as of   February 4, 2021  

 

    1 

     

    

 

AMENDED
AND RESTATED

COINSURANCE
AND MODIFIED COINSURANCE AGREEMENT

 

THIS
AMENDED AND RESTATED COINSURANCE AND MODIFIED COINSURANCE AGREEMENT (this “Agreement”) is effective as of February
4, 2021, by and between MEMBERS Life Insurance Company, an Iowa domiciled stock insurance company (together with its successors
and permitted assigns, the “Company”), and CMFG Life Insurance Company, an Iowa domiciled stock insurance company
(together with its successors and permitted assigns, the “Reinsurer”).

 

WHEREAS,
the Company and the Reinsurer have previously entered into three separate reinsurance agreements covering registered index annuity
products being issued by the Company and expect that additional reinsurance agreements will be needed as other new products are
developed and introduced by the Company; and,

 

WHEREAS,
the Company and Reinsurer believe it will benefit both parties if all the registered index annuity products are covered by a single
reinsurance agreement that clarifies what covered policies are and have been reinsured and provides a consistent set of duties
and obligations for all of the covered policies; and,

 

WHEREAS,
the Company desires to reinsure, and the Reinsurer desires to assume, 100% of the Company’s Policies (as defined herein)
using a combination of modified coinsurance and coinsurance in accordance with the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual and several promises and undertakings herein contained, and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Reinsurer agree as
follows:

 

ARTICLE
I 

DEFINITIONS

 

Section
1.1 Definitions. The following terms shall have the respective meanings set forth below throughout this Agreement:

 

“AAA”
shall have the meaning set forth in Section 9.1 hereof.

 

“Agreement”
shall have the meaning set forth in the preamble hereof.

 

“Applicable
Law” means any domestic or foreign federal, state or local statute, law, ordinance or code, or any written rules, regulations
or administrative interpretations issued by any Government Entity pursuant to any of the foregoing, and any order, writ, injunction,
directive, judgment or decree of a court of competent jurisdiction applicable to the parties hereto.

 

“Business
Day” means any day other than a Saturday, Sunday, a day on which banking institutions in the State of Iowa are permitted
or obligated by Applicable Law to be closed or a day on which the New York Stock Exchange is closed for trading.

 

“Company”
shall have the meaning set forth in the preamble hereof.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and the rules and regulations thereunder.

 

“Declared
Rate Separate Account” means the insulated, non-unitized separate account(s) established and maintained by the Company
pertaining to the Policies which account is linked to an interest rate declared by the Company and is not registered as a unit
investment trust under the Investment Company Act of 1940.

“Declared
Rate Separate Account Assets” means the assets held in the Declared Rate Separate Account(s).

 

    2 

     

    

 

“Declared
Rate Separate Account Liabilities” means for the Declared Rate Separate Account(s), all liabilities, reserves, obligations,
costs and expenses relating to, based upon or arising out of the Policies, and relating to the Declared Rate Separate Account
Assets, provided, however, that the Declared Rate Separate Account Liabilities shall not include the General Account Liabilities,
Risk Control Account Separate Account Liabilities or Variable Separate Account Liabilities

 

“Effective
Date” means 12:01 a.m., Central Standard Time, on February 4, 2021.

 

“Extra
Contractual Obligations” means all liabilities, expenses or other obligations arising out of or relating to the Policies,
exclusive of liabilities, expenses or other obligations arising under the express terms and conditions of the Policies, the General
Account Liabilities, the Risk Control Separate Account Liabilities Declared Rate Separate Account Liabilities and the Variable
Separate Account Liabilities, but including any liability for fines, penalties, forfeitures, punitive, special, exemplary or other
form of extra- contractual damages, which liabilities or obligations arise from any act, error or omission, whether or not intentional,
negligent, in bad faith or otherwise relating to: (a) the marketing, sale, underwriting, issuance or administration of the Policies;
(b) the investigation, defense, trial, settlement or handling of claims, benefits or payments under the Policies; or (c) the failure
to pay, the delay in payment, or errors in calculating or administering the payment of benefits, claims or any other amounts due
or alleged to be due under or in connection with the Policies.

 

“Fund
Participation Agreements” shall mean any and all agreements by and between the Company and investment management companies
which provide funding vehicles for the Variable Separate Account.

 

“General
Account” means the general investment account of the Company.

 

“General
Account Liabilities” means all liabilities, reserves, obligations, costs and expenses relating to, based upon or arising
out of the Policies, whether incurred prior to, on or after the Effective Date, including amounts held in the Holding Account,
after applying the effect of any Hedging Arrangements maintained by or for the benefit of the Company with respect to the General
Account Liabilities; provided, however, that the General Account Liabilities shall not include the Variable Separate Account
Liabilities, Declared Rate Separate Account or the Risk Control Separate Account Liabilities.

 

“Government
Entity” shall mean any federal, state, local, municipal, county, foreign or other governmental, quasi-governmental,
administrative or regulatory authority, body, agency, court, tribunal, commission or other similar governmental entity (including
any branch, department, agency or political subdivision thereof) or any self-regulating body of similar standing.

 

“Hedging
Arrangement” means any contract, agreement, financial instrument or other arrangement entered into by or for the benefit
of the Company for purposes of offsetting potential losses or gains attributable to the Reinsured Liabilities, including, without
limitation, exchange-traded funds, forward contracts, swaps, options or futures contracts.

 

“Holding
Account” refers to the account that holds funds eligible and awaiting investment into a Risk Control Account in accordance
with the terms of the Policies, which account shall be part of the Company’s General Account. The assets in the account
accrue interest at a rate declared by the Company subject to a guaranteed minimum rate.

 

“Income
Tax Regulations” means the temporary and final regulations issued under the Code. Any citation to a section of the Income
Tax Regulations includes a citation to any successor regulatory provision.

 

    3 

     

    

 

“Insurance
Taxes and Charges” means all premium taxes and other insurance taxes (not including any federal, state or local tax
measured by income) and guaranty fund assessments, if any, payable by the Company on account of the Policies.

 

“Investment
Guidelines” shall have the meaning set forth in Section 4.3 hereof.

 

“Iowa
SAP” means the statutory accounting principles and practices prescribed or permitted by the Iowa Insurance Division.

 

“Non-Guaranteed
Elements” means the index cap rates, expense charges, and administrative expense risk charges, as applicable, under
the Policies.

 

“Person”
means any individual, corporation, partnership, limited liability company, limited liability partnership, firm, joint venture,
association, joint-stock company, trust, unincorporated organization, governmental, judicial or regulatory body, business unit,
division or other entity of any kind or nature.

 

“Policies”
means all of the Company’s individual registered index annuity contracts identified on Schedule A (Covered Policies)
, together with all supplementary contracts (including applications therefore and all endorsements, riders and agreements issued
in connection therewith).

 

“Quarterly
Accounting” shall mean a quarterly accounting, or more frequently as mutually agreed to by the parties, prepared in
accordance with Iowa SAP and prepared by the Company in accordance with the provisions of Section 5.1 hereof.

 

“Reinsured
Liabilities” means the General Account Liabilities, the Risk Control Separate Account Liabilities, the Declared Rate
Separate Account liabilities and the Variable Separate Account Liabilities.

 

“Reinsurer”
shall have the meaning set forth in the preamble hereof.

 

“Reinsurer’s
Separate Account” means the insulated, non-unitized separate account(s) established and maintained by the Reinsurer
for the purposes of holding assets and reserves ceded directly from the Company’s Risk Control Separate Account(s) and Declared
Rate Separate Account pursuant hereto.

 

“Risk
Control Separate Account” means the insulated, non-unitized separate account(s) established and maintained by the Company
pertaining to the Policies which account is linked to the performance of one or more equity indices and is not registered as a
unit investment trust under the Investment Company Act of 1940.

 

“Risk
Control Separate Account Assets” means the assets held in the Risk Control Separate Account(s).

 

“Risk
Control Separate Account Liabilities” means for the Risk Control Separate Account(s), all liabilities, reserves, obligations,
costs and expenses relating to, based upon or arising out of the Policies, and relating to the Risk Control Separate Account Assets,
provided, however, that the Risk Control Separate Account Liabilities shall not include the General Account Liabilities Declared
Rate Separate Account Liabilities or Variable Separate Account Liabilities.

 

“Statutory
Reserves” means, as of any given date, the gross reserves established and maintained as a liability on the Company’s
statutory financial statements for the Policies, prior to giving effect to the reinsurance provided hereunder, calculated in accordance
with Iowa SAP and in accordance with sound actuarial principles.

 

“SSAP
70” means Statement of Statutory Accounting Principles No. 70, Allocation of Expenses.

 

“Tax” (or
“Taxes” as the context may require) shall mean any federal, state, local or foreign net income,
gross income, gross receipts, severance, property, production, sales, use, license, excise, franchise, employment, payroll,
withholding, premium, alternative or add-on minimum, ad valorem, value-added, transfer, stamp, or environmental (including
taxes under Section 59A of the Code) tax, or any other similar tax, customs duty, withholding, charge, fee, levy or other
assessment, including any interest, penalty or addition imposed on such taxes by any Taxing Authority.

 

    4 

     

    

 

“Taxing
Authority” shall mean any agency or political subdivision of any foreign, federal, state, local or municipal Government
Entity with the authority to impose any Tax.

 

“Variable
Separate Account” or “VSA” means the insulated, unitized separate account(s) established and maintained
by the Company pertaining to the Policies which accounts are registered as a unit investment trust under the Investment Company
Act of 1940.

 

“Variable
Separate Account Assets” means the assets held in the Variable Separate Account.

 

“Variable
Separate Account Liabilities” means for the Variable Separate Account(s), all liabilities, reserves, obligations, costs
and expenses relating to, based upon or arising out of the Policies, and relating to the Variable Separate Account Assets, provided,
however, that the Variable Separate Account Liabilities shall not include the General Account Liabilities, Declared Rate Separate
Account or the Risk Control Separate Account Liabilities.

 

“VSA
Accumulated Value” shall have the meaning set forth in Section 3.1(b) hereof.

 

“VSA
Earnings Credit” shall have the meaning set forth in Section 3.3 hereof. 

 

“VSA Payable Liability”
shall have the meaning set forth in Section 3.4 hereof.

 

“VSA Valuation Adjustment” shall have the meaning set
forth in Section 3.2 hereof.

 

Section
1.2 Interpretation. When a reference is made in this Agreement to a Section, Article or Schedule, such reference shall
be to a Section, Article or Schedule of this Agreement unless otherwise indicated or unless the context shall otherwise
require. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. The definitions of terms in this Agreement shall be applicable to both the plural and
the singular forms of the terms defined when either such form is used in this Agreement. Whenever the words
“include,” “includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation.” The words “hereof, “herein” and
“hereunder” and other words of similar import, refer to this Agreement as a whole and not to any particular
Article, Section, subsection, paragraph or clause. Whenever the last day for the exercise of any right or the discharge of
any duty under this Agreement falls on other than a Business Day, the party having such right or duty shall have until the
next Business Day to exercise such right or discharge such duty. Unless otherwise indicated, the word “day” shall
be interpreted as a calendar day. References to a Person are also to its permitted successors and assigns.

 

ARTICLE
II

BASIS
OF REINSURANCE

 

Section
2.1 Coinsurance and Modified Coinsurance. Subject to the terms and conditions of this Agreement, the Company
hereby cedes to the Reinsurer with effect as of the Effective Date, and the Reinsurer hereby accepts and agrees to reinsure
on an indemnity basis one hundred percent (100%) of the Reinsured Liabilities, with (i) all General Account Liabilities,
Risk Control Separate Account Liabilities and Declared Rate Separate Account liabilities included in the Reinsured
Liabilities being reinsured on a coinsurance basis; and (ii) all Variable Separate Account Liabilities included in the
Reinsured Liabilities being reinsured on a modified coinsurance basis. The reinsurance effected under this Agreement shall
be maintained in force, without reduction, as long as the Company has any liabilities or obligations under the Policies,
unless such reinsurance is terminated or reduced as provided herein. The Parties have agreed that this Amended and
Restated Coinsurance and Modified Coinsurance Agreement shall supersede and replace the Coinsurance Agreement dated January
1, 2013, as amended, (covering the MEMBERS Zone Annuity Contract), The MEMBERS Horizon Coinsurance and Modified Coinsurance
Agreement dated November 1, 2015 , as amended,(covering the MEMBERS Horizon and MEMBERS Horizon II Annuity Contracts) and
the Coinsurance Agreement dated August 19, 2019, 2019 (covering The CUNA Mutual Group Zone Income Annuity
Contract)

 

    5 

     

    

 

Section
2.2 Follow the Fortunes. The Reinsurer’s liability under this Agreement shall attach simultaneously with that of
the Company on and after the Effective Date, and all reinsurance with respect to which the Reinsurer shall be liable by virtue
of this Agreement shall be subject in all respects to the same risks, terms, rates, conditions, interpretations, assessments,
waivers, and premium adjustments, and to the same modifications, alterations and cancellations, as the respective Policies and
Reinsured Liabilities, the true intent of this Agreement being that the Reinsurer shall follow the fortunes of the Company, and
the Reinsurer shall be bound, without limitation, by all payments and settlements entered into by or on behalf of the Company.

 

Section
2.3 Territory The reinsurance provided under this Agreement shall be coextensive with the territory of the Policies reinsured
hereunder.

 

Section
2.4 Information The Company will use its commercially reasonable efforts to provide to the Reinsurer after the Effective
Date all information available to the Company relating to the Reinsured Liabilities and not otherwise available to or accessible
by the Reinsurer.

 

ARTICLE
III

VARIABLE
SEPARATE ACCOUNTS

 

Section
3.1 Variable Separate Account s (VSA). 

 

(a)
         The Company shall establish and maintain in its books and records one or more Variable Separate Accounts into which shall be allocated
all Variable Separate Account Assets and Variable Separate Account Liabilities. The Company shall own and control all Variable
Separate Account Assets in a VSA and all reserves related thereto shall remain in a VSA. Investment income, capital gains and
losses earned or accrued on the assets held in a VSA shall be credited to the VSA.

 

(b)
        The Company shall calculate the accumulated value of the Variable Separate Account Assets relating to a VSA as provided herein.
The accumulated value of the Variable Separate Account Assets as calculated by the Company from time to time shall be known as
the “VSA Accumulated Value.”

 

Section
3.2 VSA Valuation Adjustment. A valuation adjustment of a VSA will be computed by the Company in accordance with the provisions
of Schedule 3.2 as of the beginning of each calendar quarter to the end of such calendar quarter, or more frequently as
mutually agreed by the parties, commencing with the calendar quarter following the Effective Date (“VSA Valuation Adjustment”).
The VSA Valuation Adjustment, whether positive or negative, shall be included as part of the calculation of the periodic payment
as provided for in Section 5.2.

 

Section
3.3 VSA Earnings Credit. On a quarterly basis, or more frequently as mutually agreed by the parties, the Company will compute
the investment earnings credit on a VSA (the “VSA Earnings Credit”), as determined in accordance with Schedule
3.3. The VSA Earnings Credit, whether positive or negative, reflects the change in value of the Variable Separate Account
Assets, net of cash flows between a VSA and the General Account, and shall be included as part of the calculation of the periodic
payment as provided for in Section 5.2.

 

Section
3.4 VSA Payable Liability. The Company will establish one or more accounts payable (the “VSA Payable Liability”)
on its statutory books equal to the difference between the aggregate VSA Accumulated Value and the aggregate Statutory Reserves
related to a VSA. The quarterly change (or monthly change as applicable) in a VSA Payable Liability shall be calculated in accordance
with the provisions of Schedule 3.4. The Reinsurer will set up a corresponding account receivable on its statutory books
equal to the VSA Payable Liabilities.

 

    6 

     

    

 

ARTICLE
IV

RISK
CONTROL SEPARATE ACCOUNTS AND DECLARED RATE SEPARATE ACCOUNTS

 

Section
4.1 Risk Control Separate Accounts and Declared Rate Separate Accounts..

 

(a)
         The Company shall establish and maintain in its books and records one or more Risk Control Separate Accounts and Declared Rate
Separate Accounts to which shall be allocated all Risk Control and Declared Rate Separate Account Assets and Risk Control and
Declared Rate Separate Account Liabilities. The Company shall own and control all assets in a Risk Control Separate Account or
a Declared Rate Separate Account.

 

(b)
         The Company shall calculate the accumulated value of the Risk Control
Separate Accounts and Declared Rate Separate Accounts as provided herein.

 

Section
4.2 Risk Control Separate Account and Declared Rate Separate Account Premiums. All premiums remitted from the Company’s
Risk Control Separate Accounts or Declared Rate Separate Accounts on account of the Policies shall be ultimately deposited into
the Reinsurer’s Separate Accounts. The Reinsurer shall be permitted to invest premiums deposited into the Reinsurer’s
Separate Accounts in accordance with the investment guidelines attached hereto as Schedule 4.2 (the “Investment
Guidelines”). The Reinsurer shall have the authority to manage, substitute and re-invest assets held in the Reinsurer’s
Separate Accounts at its discretion, provided that (a) all assets held in, allocated to or transferred to the Reinsurer’s
Separate Accounts shall comply at all times with the Investment Guidelines, and (b) the aggregate value of assets held in the
Reinsurer’s Separate Accounts shall at all times be no less than the Risk Control Separate Account and the Declared Rate
Separate Account Liabilities. All assets held in the Reinsurer’s Separate Accounts shall be used solely to satisfy liabilities
attributable to the Company’s Risk Control Separate Accounts and Declared Rate Separate Accounts shall not be chargeable
with liabilities arising out of any other business of the Company or the Reinsurer. The Reinsurer shall provide the Company with
a semi-annual report (or more frequently if requested by the Company), with a copy provided to the Iowa Insurance Division, summarizing
the investment holdings in the Reinsurer’s Separate Accounts with respect to the six-month period at issue.

 

ARTICLE
V

PAYMENTS

 

Section
5.1 Payments. The Company agrees to transfer to the Reinsurer one hundred percent (100%) of any of the following amounts
actually received by the Company after the Effective Date:

 

(a)
         premiums , fees and other amounts received with regard to the Policies or
the Reinsured Liabilities, less any refunds or return of premium;

 

(b)
         litigation recoveries pursuant to litigation to the extent liability for such litigation constitutes a Reinsured Liability;

 

(c)
         net gains attributable to any Hedging Arrangements;

 

(d)
         an amount equal to any Tax savings or benefits actually realized by the Company on account of, or attributable to, the Policies
to the extent such saving or benefit actually offsets or reduces taxable income of the Company for any applicable Tax year covered
under this Agreement;

 

(e)
         any administrative services fees, expense reimbursement, indemnification
or revenue- sharing payments made to the Company under any Fund Participation Agreements; and

 

(f)
          any and all other collections and recoveries relating to the
Policies or the Reinsured  Liabilities.

 

    7 

     

    

 

In
addition, the Company hereby transfers, conveys and assigns to the Reinsurer all of its right, title and interest in any future
payments of the amounts indicated above and not yet actually received, and the parties agree that upon receipt all such amounts
shall be transferred directly to the Reinsurer.

 

Section
5.2 Reinsurer’s Payment Obligation. The Reinsurer agrees to pay to the Company one hundred percent (100%) of any
of the following amounts actually paid by the Company::

 

(a)
         annuity benefits, surrender values, withdrawal benefits, death benefits and any other amounts paid under the Policies. Any such
benefit payable by the Reinsurer attributable to Risk Control Separate Accounts or Declared Rate Separate Accounts shall be satisfied
solely through assets of the Reinsurer’s Separate Accounts. Any such benefit payable on account of Variable Separate Accounts
shall be satisfied using assets from the Variable Separate Accounts. Any such benefit payable by the Reinsurer hereunder attributable
to the General Account shall be satisfied using assets from the Reinsurer’s general account.

 

(b)
         an amount equal to any Tax cost or detriment actually incurred by the Company on account of, or attributable to, the Policies
to the extent such cost or detriment actually increases the taxable income of the Company for any applicable Tax year covered
under this Agreement.

 

(c)
         any and all Extra Contractual Obligations;

 

(d)         
net losses attributable to any Hedging Arrangements, including any costs, expenses or lost investment income incurred by the Company
related thereto; and

 

(e)
         any and all other directly charged and allocated expenses paid or payable by the Company relating to the Policies, including but
not limited to (i) commissions, (ii) product development and acquisition expenses (iii) expenses incurred in the provision of
policyholder and benefit payment services, and (iv) Insurance Taxes and Charges. Such expenses and costs shall be allocated between
Risk Control Separate Accounts, Declared Rate Separate Accounts, Variable Separate Accounts and the General Account in accordance
with SSAP 70.

 

Section
5.3 Payments. All payments pursuant to this Agreement shall be made in U.S. dollars and immediately available funds.

 

ARTICLE
VI

 ACCOUNTINGS

 

Section
6.1 Quarterly Accountings. On a quarterly basis, or more frequently as mutually agreed by the Parties, commencing
with the first calendar quarter following the Effective Date, the Company shall prepare a Quarterly Accounting as of the end
of each calendar quarter, no later than thirty (30) days after the end of such quarter; provided, however, that in the
event that subsequent data or calculations require revision of the final Quarterly Accounting, the required revision and any
appropriate payments shall be made in cash by the parties within five (5) Business Days after they mutually agree as to the
appropriate revision. All Quarterly Accountings shall be prepared in the format set forth on Schedule 6.1 hereto. The
Quarterly Accounting shall separately identify payment obligations attributable to a Variable Separate Account, a Risk
Control Separate Account, a Declared Rate Separate Account and the General Account. In addition to the Quarterly Accounting,
the Company shall provide the Reinsurer with any additional information related to this Agreement or the Policies as is
reasonably necessary for the Reinsurer to satisfy any financial reporting or disclosure requirements or to comply with
Applicable Law.

 

Section
6.2 Quarterly Payments. If a Quarterly Accounting reflects a balance due to the Company, the amount(s) shown as due
shall be paid within ten (10) Business Days of the preparation of the Quarterly Accounting. If a Quarterly Accounting
reflects a balance due to the Reinsurer, the amount(s) shown as due shall be paid within ten (10) Business Days after the
date on which the Quarterly Accounting was prepared. Any such balance payable by the Reinsurer from the Reinsurer’s
Risk Control Separate Accounts or the Declared Rate Separate Accounts shall be satisfied solely from assets of the
Reinsurer’s Risk Control Separate Accounts or Declared Rate Separate Accounts . Any such balance payable on account of
a Variable Separate Account shall be satisfied solely from assets held in a Variable Separate Account. Any such balance
payable by the Reinsurer from the Reinsurer’s General Account shall be satisfied solely from assets held in the
Reinsurer’s General Account.

 

    8 

     

    

 

Section
6.3 Offset Rights. Subject to Section 562, each party hereto shall have, and may exercise at any time and from time to
time, the right to offset any balance or balances, whether on account of premiums or on account of losses or otherwise, due from
such party to the other party hereto under this Agreement and may offset the same against any balance or balances due to the former
from the latter under this Agreement; and the party asserting the right of offset shall have and may exercise such right whether
the balance or balances due to such party from the other are on account of premiums or on account of losses or otherwise, which
shall be deemed mutual debts or credits, as the case may be.

 

ARTICLE
VII 

POLICY ADMINISTRATION

 

Section
7.1 Policy Administration. The Company shall provide all required, necessary and appropriate claims, administrative and
other services with respect to the Policies. The Company shall use reasonable care in its administration and claims practices
with respect to the Policies and in administering and performing its duties under this Agreement and such practices, administration
and performance shall (a) conform with Applicable Law; (b) not be fraudulent; and (c) be no less favorable than those used by
the Company with respect to other policies of the Company not reinsured by the Reinsurer.

 

Section
7.2 Record Keeping. The Company shall maintain appropriate books and records relating to the Policies in accordance with
Applicable Law and industry standards of insurance record keeping. In the event of the termination of this Agreement and upon
the request of the Company, any records in the possession of the Reinsurer related to the Policies shall be duplicated and forwarded
to the Company. The Company shall establish and maintain an adequate system of internal controls and procedures for financial
reporting relating to the Policies and shall make such documentation available for examination and inspection by the Reinsurer
upon request. Either party or its designated representative may, upon reasonable advance notice and during normal business hours
at the offices of the Company or the Reinsurer, as the case may be, conduct reasonable inspections of the books and records of
the other party reasonably relating to the Policies or this Agreement for such period as this Agreement remains in effect and
as long thereafter as the Company or the Reinsurer, as the case may be, has any outstanding obligation under this Agreement.

 

Section
7.3 Certain Changes. From and after the Effective Date, the Company shall set and may make changes to:

 

(a)
         the Non-Guaranteed Elements of the Policies, provided any material changes
to such Non-Guaranteed Elements shall be mutually agreed upon by the Parties;

 

(b)
         the reserving methodology related to the Policies including changes required
by Applicable Law or Iowa SAP; and

 

(c)
         with respect to those Policies that are issued in connection with a Variable Separate Account, the addition or substitution of
investment options to the extent permitted under the terms of such Policies.

 

Section
7.4 Changes to Policies. The Company reserves the right to change the terms and conditions of the Policies. The Reinsurer
shall share proportionally, on a 100% coinsurance basis or modified coinsurance basis, as applicable, in any such changes in the
terms or conditions of the Policies.

 

    9 

     

    

 

ARTICLE
VIII 

OVERSIGHTS

 

Section
8.1 Oversights. Inadvertent delays, errors or omissions made in connection with this Agreement or any transaction hereunder
shall not relieve either party from any liability which would have attached had such delay, error or omission not occurred, provided
that such error or omission is rectified as soon as possible after discovery.

 

ARTICLE
IX 

REGULATORY APPROVAL

 

Section
9.1 Regulatory Approval. This Agreement shall not become effective with respect to Policies issued in any jurisdiction
in which the approval of a Government Entity is required unless and until all such approvals shall have been obtained under Applicable
Law.

 

Section
9.2 Savings Clause. If any law or regulation of any federal, state or local government of the United States of America,
or the ruling of officials having supervision over insurance companies, or a ruling of a court having jurisdiction over the parties
to this Agreement should prohibit or render illegal this Agreement, or any portion thereof, as to risks or properties located
in the jurisdiction of such authority, either the Company or the Reinsurer may upon written notice to the other party terminate,
suspend or abrogate this Agreement insofar as it relates to risks or properties located within such jurisdiction to such extent
as may be necessary to comply with such law, regulations or ruling.

 

ARTICLE
X 

DISPUTE RESOLUTION

 

Section
10.1 Arbitration. If a dispute, controversy, or claim arises out of or relates to this Agreement, or an alleged breach
thereof, and if said dispute cannot be settled through direct discussions, the parties agree to first endeavor to settle the dispute
in an amicable manner by mediation administered by the American Arbitration Association (“AAA”) under its Commercial
Mediation Rules, before resorting to arbitration. If the matter has not been resolved pursuant to mediation within thirty (30)
calendar days of the commencement of such mediation (which period may be extended by mutual agreement in writing), then any unresolved
dispute, controversy, or claim arising out of or relating to this Agreement, its termination or non-renewal, or any breach thereof,
shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the AAA, and judgment upon the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof. The arbitration shall be conducted by a sole arbitrator
or, at the election of either party, before a panel of three arbitrators. Selection of the arbitrator(s) shall be in accordance
with the Commercial Arbitration Rules of the AAA. The arbitrator(s) shall allow each party to conduct limited relevant discovery.
The arbitrator(s) shall have no authority to award punitive damages or any damages not measured by the prevailing party’s
actual damages, and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions
of this Agreement and Applicable Laws. All fees and expenses of arbitration shall be borne by the parties equally. However, each
party shall bear the expense of its own counsel, experts, witnesses, and preparation and presentation of the arbitration matter.
Any such arbitration shall be conducted in Madison, Wisconsin.

 

    10 

     

    

 

ARTICLE
XI 

INSOLVENCY

 

Section
11.1 Insolvency of Company. In the event of insolvency and the appointment of a conservator, liquidator, or statutory
successor of the Company, the reinsurance hereunder shall be payable directly to the conservator, rehabilitator, liquidator,
receiver or statutory successor of the Company on the basis of claims allowed against the Company by any court of competent
jurisdiction or by any conservator, rehabilitator, liquidator, receiver or statutory successor of the Company having
authority to allow such claims, without diminution because of that insolvency, or because the conservator, rehabilitator,
liquidator, receiver or statutory successor of the Company has failed to pay all or a portion of any claims. Payments by the
Reinsurer, as set forth herein, shall be made directly to the Company or to its conservator, rehabilitator, liquidator,
receiver or statutory successor, except where this Agreement specifically provides another payee of such reinsurance in the
event of the insolvency of the Company. The conservator, rehabilitator, liquidator, receiver or statutory successor of the
Company shall give written notice to the Reinsurer of the pendency of a claim against the Company indicating the Policy
reinsured, within a reasonable time after such claim is filed and the Reinsurer may investigate and interpose, at its own
expense, in any proceeding where such claim is to be adjudicated, any defense or defenses that the Reinsurer may deem
available to the Company or to its conservator, rehabilitator, liquidator, receiver or statutory successor.

 

ARTICLE
XII 

DURATION

 

Section
12.1 Term. The reinsurance provided under this Agreement shall remain continuously in force for so long as the Company
shall remain liable on the Policies or until terminated by either Party by written notice given to the other Party at least twelve
(12) months in advance of the termination date, a copy of which shall be provided to the Iowa Insurance Division.

 

Section
12.2 Runoff Coverage. If this Agreement is terminated, the reinsurance hereunder shall continue to apply to benefits and/or
claims under all Policies (including any lapsed, surrendered, reinstated, renewed or matured Policy) until the Company’s
obligations under the Policies cease. The Parties hereto expressly covenant and agree that, in the event of termination of this
Agreement, they will cooperate with each other in the handling of all such run-off insurance business until the Company’s
obligations under the Policies cease. All costs and expenses associated with the handling of such run-off business shall be borne
solely by the Reinsurer. For the avoidance of doubt, in the event this Agreement is terminated, the reinsurance hereunder shall
not apply to any insurance policies or annuity contracts, or binders, contracts, certificates, riders, endorsements, supplemental
benefits, or other agreements related or attaching to such insurance policies or contracts, that were first issued or assumed
by the Company on or after the effective date of any termination of this Agreement.

 

Section
12.3 Recapture. The Policies are not eligible for recapture by the Company except upon the mutual agreement of the Company
and the Reinsurer.

 

ARTICLE
XIII 

CREDIT FOR REINSURANCE

 

Section
13.1 Credit for Reinsurance.

 

(a)         
The Reinsurer shall, at its own expense, take all steps necessary (including the posting of letters of credit or other acceptable
security) to enable the Company to receive and maintain full credit for the reinsurance provided by this Agreement in any jurisdiction
applicable throughout the entire term of this Agreement.

 

(b)
         It is understood and agreed that any term or condition required by Applicable Law to be included in this Agreement for the Company
to receive statutory credit for the reinsurance provided by this Agreement shall be deemed to be incorporated in this Agreement
by reference. Furthermore, the Reinsurer and the Company agree to amend this Agreement, or enter into other agreements or execute
additional documents as needed to comply with the credit for reinsurance laws and regulations and/or the requirements of Iowa
Insurance Division.

 

    11 

     

    

 

ARTICLE
XIV

 DAC Tax

 

Section
14.1 Party. The term “party” will refer to either contracting company as appropriate.

 

Section
14.2 Other Terms. The terms “Net Positive Consideration”, “Specified Policy Acquisition Expenses”
and “General Deductions Limitation” used in this Article are defined by reference to Regulation Section 1.848-2 and
Code Section 848.

 

Section
14.3 DAC Tax Election. The parties to this Agreement agree to make the election set forth below pursuant to Section 1.848-2(g)
(8) of the Income Tax Regulations issued under Section 848 of the Code. This election shall be effective for taxable year 2016
and for all subsequent taxable years for which this Agreement remains in effect.

 

(a)
         The party with the Net Positive Consideration for this Agreement for each taxable year will capitalize Specified Policy Acquisition
Expenses with respect to this Agreement without regard to the General Deductions Limitation of Code Section 848(c)(1).

 

(b)         
Both parties agree to exchange information pertaining to the amount of net consideration under this Agreement each year, or as
otherwise required by the Internal Revenue Service, to ensure consistency.

 

(c)
         The Company will submit a schedule to the Reinsurer by May 1 of each year with its calculation of the net consideration for the
preceding calendar year. The Reinsurer may contest such calculation by providing an alternative calculation to the Company in
writing within thirty (30) calendar days of the Reinsurer’s receipt of the Company’s calculation.

 

(d)
        If the Reinsurer contests the Company’s calculation, the parties will act in good faith to reach an agreement as to the
correct amount within thirty (30) calendar days of the date that the Company receives the Reinsurer’s alternative calculation.
If the parties reach an agreement on the net consideration calculation, each party will report the agreed upon amount in its income
tax return for the preceding calendar year. If the parties are unable to reach an agreement on the amount of net consideration,
then the dispute shall be resolved pursuant to Article IX of this Agreement. If Reinsurer does not contest the Company’s
calculation the parties will utilize the calculation provided by the Company for reporting purposes in their respective income
tax returns for the preceding year.

 

(e)
         Each party will attach a schedule to its federal income tax return for its first taxable year ending after the election becomes
effective that identifies this Agreement as a reinsurance agreement for which joint elections have been made under Treasury Regulation
Section 1.848-2(g)(8).

 

ARTICLE
XV 

SERVICE OF SUIT

 

Section
15.1. In the event of the failure of the Reinsurer to perform its obligations hereunder, the Reinsurer, at the request of the
Company, shall submit to the jurisdiction of a court of competent jurisdiction. Nothing in this Article constitutes or should
be understood to constitute a waiver of the Reinsurer’s right to commence an action in any court of competent jurisdiction,
to remove an action or to seek a transfer of a case to another court as permitted by law. The Reinsurer, once the appropriate
court is selected, whether such court is the one originally chosen by the Company and accepted by the Reinsurer or is determined
by removal, transfer or otherwise, as provided for above, shall comply with all requirements necessary to give said court jurisdiction
and, in any suit instituted against the Reinsurer upon this Agreement, shall abide by the final decision of such court or of any
appellate court in the event of appeal. This Article shall not be read to conflict with or override the obligations of the parties
to arbitrate their disputes as provided in Article IX.

 

    12 

     

    

 

ARTICLE
XVI 

GENERAL PROVISIONS

 

Section
16.1 Notices. All notices and communications hereunder shall be in writing and shall become effective when received. Any
written notice shall be sent by either certified or registered mail, return receipt requested, overnight delivery service (providing
for delivery receipt), electronic facsimile transmission, or delivered by hand. All notices or communications under this Agreement
shall be addressed as follows:

 

If
to the Company:

 

MEMBERS
Life Insurance Company 

5910
Mineral Point Rd.

Madison, WI 53705 

Attention:
Treasurer

 

If
to the Reinsurer:

 

CMFG
Life Insurance Company 

5910
Mineral Point Rd. 

Madison,
WI 53705 

Attention:
Treasurer

 

Section
16.2 Successors and Assigns. This Agreement and related documents cannot be assigned by either party without the prior
written consent of the other and the prior approval of the Iowa Insurance Division. The provisions of this Agreement and related
documents shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors
and assigns as permitted herein.

 

Section
16.3 Execution in Counterparts. This Agreement may be executed by the parties hereto in any number of counterparts, and
by each of the parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section
16.4 Entire Agreement. This Agreement, together with the schedules and exhibits attached hereto, constitutes the entire
agreement between the parties hereto with respect to the business being reinsured hereunder and there are no understandings between
the parties other than those expressed in this Agreement. Any change or modification to this Agreement shall be null and void
unless made by amendment to this Agreement and signed by both parties hereto.

 

Section
16.5 Regulatory Approval of Amendments. No amendment to this Agreement until prior approval of the Iowa Insurance Department
has been received by the Company. Similarly, if the approval of other Governmental Entities is required no amendment to this Agreement
shall take effect until all such necessary approvals have been received by the Company.

 

Section
16.6 Governing Law. This Agreement and related documents shall be governed by and construed in accordance with the laws
of the State of Iowa.

 

Section
16.7 Severability. In the event any section or provision of this Agreement or related documents is found to be void and
unenforceable by a court of competent jurisdiction, the remaining sections and provisions of this Agreement or related documents
shall nevertheless be binding upon the parties with the same force and effect as though the void or unenforceable part had not
been severed or deleted.

 

Section
16.8 No Third Party Beneficiaries. This Agreement constitutes an indemnity reinsurance agreement solely between the Company
and the Reinsurer. Nothing expressed or implied in this Agreement is intended to confer any rights, benefits, remedies, obligations
or liabilities upon any Person other than the parties hereto and their respective successors and permitted assigns.

 

Section
16.9 Compliance with Applicable Laws. The Company and the Reinsurer shall maintain all licenses, obtain all regulatory
approvals and comply with all applicable laws and regulatory requirements necessary to perform their respective obligations under
this Agreement.

 

[Remainder
of page left intentionally blank]

 

    13 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representative.

 

	 	MEMBERS LIFE INSURANCE COMPANY	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Name:	Brian Borakove	 
	 	 	 	 
	 	Title:	Senior Vice President	 
	 	 	 	 
	 	Date:	03/09/2021	 
	 	 	 	 
	 	CMFG LIFE INSURANCE COMPANY	 
	 	 	 
	 	By:		 
	 	 	 	 
	 	Name:	Laureen A. Winger	 
	 	 	 	 
	 	Title:	Executive Vice President and Chief Financial
    Officer	 
	 	 	 	 
	 	Date:	03/09/2021	 

  

    14 

     

    

 

SCHEDULE
A

 (Covered Policies)

 

MEMBERS
Zone Annuity

 

MEMBERS
Horizon Variable Annuity

 

MEMBERS Horizon II Variable Annuity

 

CUNA Mutual Group Zone Income Annuity

 

CUNA Mutual Group ZoneChoice
Annuity

 

    15 

     

    

 

SCHEDULE
3.2

VARIABLE
SEPARATE ACCOUNT (VSA) VALUATION ADJUSTMENT CALCULATION

 

The
VSA Valuation Adjustment shall be calculated as of the end of each calendar quarter, or more frequently as mutually agreed by
the parties, as follows:

 

(A-B)
Where:

 

A
= VSA Accumulated Value with respect to the VSA as of the end of such calendar quarter (or month if calculated on a monthly basis)

 

B
= VSA Accumulated Value with respect to the VSA as of the beginning of such calendar quarter (or month if calculated on a monthly
basis)

 

    16 

     

    

 

SCHEDULE
3.3

VARIABLE
SEPARATE ACCOUNT (VSA) EARNINGS CREDIT CALCULATION

 

The
VSA Earnings Credit shall be calculated as of the end of each calendar quarter (or month if calculated on a monthly basis) as
follows:

 

A-B-C+D

 

Where: 

A
= VSA Accumulated Value with respect to the VSA as of the end of such calendar quarter (or month if calculated on a monthly basis)

 

B
= VSA Accumulated Value with respect to the VSA as of the beginning of such calendar quarter (or month if calculated on a monthly
basis)

 

C
= Increases in VSA Accumulated Value during such calendar quarter (or month if calculated on a monthly basis) which shall be calculated
as the premiums allocated to the VSA

 

D
= Decreases in VSA Accumulated Value during such calendar quarter (or month if calculated on a monthly basis) which shall be calculated
as follows:

 

		1.	Death
benefits, surrenders, withdrawals and annuitizations paid from the VSA

		2.	Contract,
administration and transfer fee deductions

		3.	Deductions
for contingent deferred sales charges or surrender charges

		4.	D(1)
+ D(2) + D(3)

 

    17 

     

    

 

SCHEDULE
3.4

VARIABLE
SEPARATE (VSA) PAYABLE LIABILITY CALCULATION

 

The
VSA Payable Liability shall be calculated as of the end of each calendar quarter (or month if calculated on a monthly basis) as
follows:

 

(A-B)

 

Where:

 

A
= VSA Accumulated Value with respect to the VSA as of the end of such calendar quarter (or month if calculated on a monthly basis)

 

B
= Statutory Reserves with respect to the VSA as of the end of such calendar quarter (or month if calculated on a monthly basis)

 

    18 

     

    

 

SCHEDULE
5 4.2

INVESTMENT
GUIDELINES

 

Investment
Guidelines for CMFG Life Insurance Company Risk Control Separate Accounts and Declared

Rate
Separate Accounts

 

	Broad
    Asset Class	 	Asset
    Class	 	Minimum	 	Maximum
	Near Risk-Free	 	 	 	   4%	 	100%
	 	 	Cash	 	    0%	 	  100%
	 	 	Government	 	    1%	 	  100%
	 	 	Agency MBS*	 	    3%	 	    40%
	 	 	 	 	 	 	 
	Corporate	 	 	 	20%	 	  80%
	 	 	Public – Investment Grade	 	  20%	 	    80%
	 	 	Private – Investment Grade	 	    0%	 	    20%
	 	 	High Yield	 	    0%	 	    10%
	 	 	 	 	 	 	 
	Other Credit	 	 	 	  0%	 	   30%
	 	 	Municipal	 	    0%	 	      5%
	 	 	Mortgage Loan	 	    0%	 	    25%
	 	 	 	 	 	 	 
	Structured Credit	 	 	 	  3%	 	   25%
	 	 	ABS	 	    0%	 	    20%
	 	 	CMBS	 	     0%	 	    20%
	 	 	CLO	 	     0%	 	    20%
	 	 	RMBS	 	    0%	 	      5%
	 	 	 	 	 	 	 
	Equity or Near-Equity	 	 	 	  0%	 	    5%
	 	 	Real Estate	 	    0%	 	      0%
	 	 	Alternative – Mezzanine	 	    0%	 	      5%
	 	 	Alternative – Private Equity	 	    0%	 	      5%
	 	 	Public Equity	 	    0%	 	      5%
	 	 	 	 	 	 	 

*A
pass-through security or unleveraged CMO class

 

Derivatives

 

Derivatives
will primarily be limited to those hedging liability risks. Risks hedged would primarily be the equity market related guarantees
of the Members Life Annuity Contracts but can also include rate and credit oriented exposures generally related to liability reserves.
Derivative usage and limits on notional amounts will be set by the Board of Directors of CMFG Life Insurance Company from time
to time and must comply with the CMFG Life Insurance Company Derivative Use Plan and Derivative Policy.

 

    19 

     

    

 

Transfer
restrictions

 

Assets
may be transferred into and out of the separate accounts as long as asset values exceed liability values after such transfers.
Impaired securities, securities in default or assets encumbered by other agreements (modified coinsurance “segregated”
assets, collateral for trusts, etc.) may not be transferred into the separate accounts.

 

Borrowing
to Support the Separate Accounts

 

Assets
of the Separate Accounts may be used to collateralize borrowing in order to meet short-term liquidity needs of the Separate Accounts.

 

Use
of Funding Agreements

 

Assets
of the Separate Accounts may be used to collateralize funding agreements with the Federal Home Loan Bank (“FHLB”).
Funding agreement proceeds will be invested within the Separate Accounts in assets that are consistent with these investment guidelines
and that match funding agreement liabilities. The funding agreement liabilities are recorded in each separate account so we are
using separate account assets to satisfy liabilities attributable to the separate accounts. We track these assets that back the
funding agreements in a separate portfolio so they can be identified separately.

 

Securities
Lending

 

The
Separate Accounts may participate in a securities lending program consistent with the terms of the general account securities
lending program in which collateral is received for loaned securities, provided investments made with such collateral are invested
within the Separate Accounts in assets consistent with these Investment guidelines and that match securities lending program liabilities.

 

Effective:
January 1, 2019

 

    20 

     

    

SCHEDULE
6.1

FORM
OF QUARTERLY STATEMENT

 

	1.	Payments
due to the Reinsurer shall be calculated as follows:

 

		a.	Premium
ceded, less any return or refunds of premium

 

		b.	VSA
Earnings Credit (if positive), excluding the change in VSA Payable Liability

 

		c.	Payments
under Fund Participation Agreements

 

		d.	VSA
Valuation Adjustment (if negative)

 

		e.	Any
other items payable to the Reinsurer under Section 4.1 of this Agreement

 

		f.	Any
amounts remitted to the Reinsurer after the date of the last quarterly settlement

 

		g.	1
(a) + 1 (b) + 1 (c) + 1 (d) + 1 (e) – 1 (f)

 

	2.	Payments
due to the Company shall be calculated as follows:

 

		a.	Benefits
ceded - surrenders, withdrawals, death and annuity benefits

 

		b.	VSA
Earnings Credit (if negative), excluding the change in VSA Payable Liability

 

		c.	VSA
Valuation Adjustment (if positive)

 

		d.	Any
other items payable to the Company under Section 4.2 of this Agreement

 

		e.	Any
payments to the Company after the date of the last quarterly settlement

 

		f.	2(a)
+ 2(b) + 2(c) + 2(d) – 2(e)

 

	3.	Balance
during the period shall be calculated as follows:

 

1
(g) - 2 (f)

 

With
the amount of a positive balance paid by the Company to the Reinsurer, and the amount of a negative balance paid by the Reinsurer
to the Company.

 

    21 

     

    

 

Agreement
on Accounting Periods

 

The
Parties to the Amended and Restated Coinsurance and Modified Coinsurance Agreement dated January 1, 2019 have agreed that the
Accountings described in Section V - Accountings of the Agreement shall be performed on a monthly basis. Accordingly, the
Parties agree that the Quarterly Accountings described in Section 5.1, the Quarterly Accountings in Section 5.2 and the
Schedule 5.1 Quarterly Statement shall be prepared on a monthly basis until such time as the Parties agree in writing to
change the timing for these reports.

 

MEMBERS
Life Insurance Company

 

CMFG
Life Insurance Company

 

    22

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