Document:

Exhibit 10.2

 

NONQUALIFIED STOCK OPTION AGREEMENT

 

This Agreement dated                      
__, between Federal Life Group, Inc. (the “Corporation”) and __________________ (the “Optionholder”).

 

WITNESSETH:

 

		1.	Award of Option

 

Pursuant to the provisions of the Federal
Life Group, Inc. 2018 Equity Incentive Plan (the “Plan”) the Corporation hereby awards to the Optionholder, subject
to the terms and conditions of the Plan and subject further to the terms and conditions herein set forth, the right and option
to purchase from the Corporation all or any part of an aggregate of ______ shares of common stock (par value $0.01 per share)
of the Corporation (“Common Stock”) at the exercise price of $______ per share; such option to be exercised
as hereinafter provided.

 

		2.	Terms and Conditions

 

It is understood and agreed that the Option
evidenced hereby is subject to the following terms and conditions:

 

		(a)	Expiration Date. Subject to the provisions of
Paragraph 2(d) hereof, the Option awarded hereby shall expire on __________.

 

		(b)	Exercise of Option. Except as may be provided
below, no part of this Option may be exercised until the Optionholder has remained in the continuous employ or service with the
Corporation or of a Subsidiary for the following periods after the date hereof:

 

	Vesting Date	
        % of Shares

        Vesting
	
        Number of

        Shares Vesting

	 	 	 
	 	25.0%	______ shares
	 	25.0%	______ shares
	 	25.0%	______ shares
	 	25.0%	______ shares

 

This Option may be exercised in whole at any
time, or from time to time in part, to the extent vested, prior to the expiration date specified in Paragraph 2(a) hereof.
Any exercise shall be accompanied by a written notice to the Corporation specifying the number of shares as to which the Option
is being exercised. Notwithstanding the foregoing:

 

		(1)	upon the occurrence of a Change in Control, all unvested
Options then held by the Optionholder shall vest and become immediately exercisable;

 

		(2)	if the Optionholder terminates employment or service
with the Corporation or a Subsidiary due to death, Disability, or Retirement, all unvested Options then held by the Optionholder
shall vest and become immediately exercisable; and

 

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		(3)	if the Corporation or a Subsidiary terminates the
Optionholder’s employment or service other by reason of a Termination or Dismissal for Cause, all unvested Options then
held by the Optionholder shall vest and become immediately exercisable.

 

		(c)	Payment of Exercise Price Upon Exercise. At
the time of any exercise, the exercise price of the shares as to which this Option may be exercised shall be paid in cash or,
subject to the conditions and limitations described in the Plan, by one of the methods of payment set forth in the Plan for the
exercise of a Nonqualified Stock Option.

 

		(d)	Exercise Upon Death, Being Disabled, or Other Termination
of Employment.

 

		(1)	In the event of the termination of the Optionholder’s
employment or service with the Corporation or of a Subsidiary by reason of death, Disability, or Retirement, this Option may be
exercised, to the extent that the Optionholder was entitled to do so at the date of termination of employment or service due to
such cause, in whole at any time, or from time to time in part, within 12 months after the Optionholder’s death, Disability,
or Retirement but in no event later than the expiration date specified in Paragraph 2(a) hereof.

 

		(2)	If the Corporation or a Subsidiary terminates the
employment or service of the Optionholder (other than if the termination is a Termination or Dismissal for Cause), this Option
may be exercised, to the extent that the Optionholder was entitled to do so at the date of termination of employment or service,
in whole at any time, or from time to time in part, within 24 months after the date of such termination, but in no event later
than the expiration date specified in Paragraph 2(a) hereof.

 

		(3)	If the Optionholder’s employment or service
with the Corporation or a Subsidiary is voluntarily terminated by the Optionholder other than for Retirement, then the option
shall lapse on the date of such termination of employment.

 

		(4)	Notwithstanding anything herein to the contrary, if
the Optionholder’s termination of employment or service is a Termination or Dismissal for Cause, all rights to exercise
this Option shall lapse on the date of such termination of employment or service.

 

		(e)	Nontransferability. Except as set forth in Section
6.3 of the Plan, this Option shall not be transferable other than by will or by the laws of descent and distribution. During the
lifetime of the Optionholder, this Option shall be exercisable only by the Optionholder.

 

		(f)	Adjustments. In the event that the shares of
Common Stock, as presently constituted, shall be changed into or exchanged for a different number or kind of shares of stock or
other securities of the Corporation, or if the number of such shares of Common Stock shall be changed through the payment of a
stock dividend, stock split, or reverse stock split, then the shares of Common Stock then subject to this Option and the exercise
price thereof shall be increased, decreased, or otherwise changed to such extent and in such manner as may be necessary or appropriate
to reflect any of the foregoing events. If there shall be any other change in the number or kind of the outstanding shares of
the Common Stock, or of any stock or other securities into which such Common Stock shall have been changed, or for which it shall
have been exchanged, and if a majority of the disinterested members of the Board shall, in its sole discretion, determine that
such change equitably requires an adjustment to the terms of this Option, then such adjustment shall be made in accordance with
such determination. Any adjustment so made shall be final and binding upon the Optionholder.

 

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		(g)	No Rights as Shareholder. The Optionholder shall
have no rights as a shareholder with respect to any shares of Common Stock subject to this Option prior to the date of issuance
of a certificate or certificates for such shares.

 

		(h)	No Right To Continued Employment or Service.
This Options shall not confer upon the Optionholder any right to continue in the employ or service with the Corporation or any
Subsidiary or limit in any respect the right of the Corporation or of any Subsidiary to terminate the Participant’s employment
or service at any time and for any reason.

 

		(i)	Compliance with Law and Regulations. This Option
and the obligation of the Corporation to sell and deliver shares hereunder shall be subject to all applicable federal and state
laws, rules, and regulations and to such approvals by any government or regulatory agency as may be required. The Corporation
shall not be required to issue or deliver any certificates for shares of Common Stock prior to (1) the listing of such shares
on any stock exchange on which the Common Stock may then be listed and (2) the completion of any registration or qualification
of such shares under any federal or state law, or any rule or regulation of any government body which the Corporation shall, in
its sole discretion, determine to be necessary or advisable.

 

		3.	Optionholder Bound by Plan

 

The Optionholder acknowledges receipt of
a copy of the Plan and agrees that this Award shall be subject to all of the terms and conditions set forth in the Plan, including
future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as a part of this
Agreement. Capitalized terms used in this Agreement without definition shall have the meanings assigned to them in the Plan.

 

		4.	Withholding of Taxes

 

The Corporation will require that, as a
condition precedent to the exercise of this Option, appropriate arrangements be made for the withholding of any applicable taxes,
if applicable. The obligation of the Optionholder under this paragraph to provide for the payment of withholding taxes may be satisfied,
subject to the provisions of Section 7.2 of the Plan, by electing to have the Corporation withhold certain of the shares that
would otherwise be issuable pursuant to the exercise of the Option awarded hereby.

 

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		5.	Notices

 

Any notice hereunder to the Corporation
shall be addressed to it at its office, [ADDRESS]; Attention: , (or to such different address as the Corporation may designate
in writing) and any notice hereunder to Optionholder shall be addressed to him or her at the most recent address as shown in the
employment or stock records of the Corporation.

 

IN WITNESS WHEREOF, Federal Life
Group, Inc. has caused this Agreement to be executed by a duly authorized officer and the Optionholder has executed this Agreement,
both as of the day and year first above written.

  

 

	FEDERAL LIFE GROUP, INC.	 	OPTIONHOLDER
	 	 	 	 	 
	 	 	 	 	 
	By	 	 	 
	 	 	 	(Signature)
	 	[Title]	 	 	 

 

    	 	4Exhibit 10.3

 

RESTRICTED STOCK AGREEMENT

 

AGREEMENT, made as of the ______, (the
“Grant Date”) between Federal Life Group, Inc. (the “Corporation”), and ____________ (the “Participant”).

 

1. Award.

 

(a) Grant of Restricted Stock. Pursuant
to the provisions of the Federal Life Group, Inc. Stock Incentive Plan (the “Plan”), _____ shares (the “Restricted
Shares”) of the Corporation’s common stock, par value $0.01 per share (“Common Stock”), shall be issued
as hereinafter provided in the Participant’s name subject to the restrictions described herein.

 

(b) Issuance of Restricted Shares.
The Restricted Shares shall be issued upon acceptance of this Agreement by the Participant and upon satisfaction of the Vesting
Schedule as set forth in Section 2(b) herein.

 

(c) Plan Incorporated by Reference.
The Participant acknowledges receipt of a copy of the Plan and agrees that this award shall be subject to all of the terms and
conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated
herein by reference as a part of this Agreement. Capitalized terms used in this Agreement without definition shall have the meanings
assigned to them in the Plan.

 

2. Terms and Conditions. The
Participant hereby accepts the Restricted Shares when issued and agrees as follows:

 

(a) Restrictions. The potential rights
of the Participant to the Restricted Shares may not be assigned, transferred, sold, pledged, hypothecated, or otherwise encumbered
or disposed until such time as the Participant receives unrestricted certificates for such shares. Except as provided in Section
2(c) below, in the event of termination of the Participant’s employment or service with the Corporation or a Subsidiary for
any reason prior to vesting in all or any portion of the Restricted Shares, the Participant shall, for no consideration, forfeit
to the Corporation all Restricted Shares to the extent then subject to the Restrictions (as hereinafter defined). The prohibition
against transfer and the obligation to forfeit and surrender Restricted Shares to the Corporation upon termination of employment
or service prior to satisfaction of the Vesting Schedule (as set forth in Section 2(b)) are referred to herein as the “Restrictions.”

 

(b) Vesting Schedule. Except as provided
in Section 2(c) below, the Restrictions shall lapse and cease to apply to the Restricted Shares provided that the Participant remains
in the continuous employ or service with the Corporation or a Subsidiary for the following periods (the “Vesting Schedule”)
after the Grant Date:

 

	Vesting Date	
        % of Shares

        Vesting
	
        Number of

        Shares Vesting

	 	 	 
	 	25.0%	______ shares
	 	25.0%	______ shares
	 	25.0%	______ shares
	 	25.0%	______ shares

   

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(c) Acceleration of Vesting. Notwithstanding
Section 2(b) above, with respect to any or all Restricted Shares still subject to Restrictions, (i) upon the occurrence of a Change
in Control, the Restrictions shall lapse and cease to apply to such Restricted Shares; (ii) if the Participant’s employment
or service with the Corporation or a Subsidiary terminates due to death or Disability, the Restrictions shall lapse and cease to
apply to such Restricted Share and (iii) if the Corporation or a Subsidiary terminates the Participant’s employment or service
(other than by reason of a Termination or Dismissal for Cause), the Restrictions shall lapse and cease to apply to such Restricted
Shares.

 

(d) Certificates. One or more share
certificates evidencing the Restricted Shares shall be issued by the Corporation in the name of a nominee of the Corporation. The
certificate shall bear a legend evidencing the nature of the Restricted Shares, and the Corporation may cause the certificate to
be delivered upon issuance to the Secretary of the Corporation or to such other depository as may be designated by the Corporation
as a depository for safekeeping until the forfeiture occurs pursuant to this award. At the time of award and upon request of the
Corporation, the Participant shall deliver to the Corporation a stock power, endorsed in blank, relating to the Restricted Shares.
Within 30 days of the vesting of all or part of the Restricted Shares, and upon satisfaction of all other terms and conditions
set forth in this Agreement, the Corporation shall cause a new certificate or certificates to be issued without legend in the name
of the Participant for the shares that have vested, together with an amount of cash (without interest) equal to the dividends that
have been paid, if any, on such shares with respect to record dates occurring on or after the Grant Date. Notwithstanding the foregoing,
the Restricted Shares may be evidenced by uncertificated shares or otherwise in book entry form in which case the Participant shall
receive a statement of holdings evidencing ownership of the Restricted Shares. In addition, notwithstanding any other provisions
of this Agreement, the issuance or delivery of any shares of stock (whether vested or unvested) may be postponed for such period
as may be required to comply with applicable requirements of any national securities exchange or any requirements under any law
or regulation applicable to the issuance or delivery of such shares. The Corporation shall not be obligated to issue or deliver
any shares of Common Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or of any
regulation of any governmental authority or any national securities exchange.

 

(e) No Rights as Shareholder. The
Participant shall not have voting rights and shall not be entitled to receive dividends unless and until the Restricted Shares
vest pursuant to the provisions of this Agreement.

 

3. Withholding of Tax. To
the extent that the receipt of the Restricted Shares or the vesting thereof results in income to the Participant for federal or
state income tax purposes, the Participant shall deliver to the Corporation at the time of such receipt or expiration, as the case
may be, such amount of money or shares of unrestricted Common Stock as the Corporation may require to meet its withholding obligation,
if any, under applicable tax laws or regulations, and, if the Participant fails to do so, the Corporation is authorized to withhold
from any cash or stock remuneration then or thereafter payable to the Participant any tax required to be withheld by reason of
such resulting compensation income.

 

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4. Status of Common Stock.
The Participant agrees that the Restricted Shares will not be sold or otherwise disposed of in any manner that would constitute
a violation of any applicable federal or state securities laws. The Participant also agrees (a) that the certificates representing
the Restricted Shares may bear such legend or legends as the Corporation deems appropriate in order to assure compliance with applicable
securities laws; (b) that the Corporation may refuse to register the transfer of the Restricted Shares on the stock transfer records
of the Corporation if such proposed transfer would, in the opinion of counsel satisfactory to the Corporation, constitute a violation
of any applicable securities law; and (c) that the Corporation may give related instructions to its transfer agent, if any, to
stop registration of the transfer of the Restricted Shares.

 

5. Relationship Between the Parties.
Nothing contained in this Agreement or otherwise shall be construed to confer upon the Participant any right to continue in the
employ or service with the Corporation or any Subsidiary or limit in any respect the right of the Corporation or of any Subsidiary
to terminate the Participant’s employment or service at any time and for any reason. Any question as to whether and when
there has been a termination of such employment or service, and the cause of such termination, shall be determined by the Corporation
and its determination shall be final.

 

6. Section 83(b) Election.
The Participant may make an election under Code Section 83(b) (a “Section 83(b) Election”) with respect to the Restricted
Shares. The Participant must make such Section 83(b) Election within 30 days after the Grant Date. If the Participant elects to
make a Section 83(b) Election, the Participant shall provide the Corporation with a copy of an executed version of the Section
83(b) Election and satisfactory evidence (in the Committee’s sole determination) of the filing of the Section 83(b) Election
with the United States Internal Revenue Service. The Participant agrees to assume full responsibility for ensuring that the Section
83(b) Election is actually and timely filed with the United States Internal Revenue Service and for all tax consequences resulting
thereof.

 

7. Corporation’s Powers.
No provision contained in this Agreement shall in any way terminate, modify, or alter, or be construed or interpreted as terminating,
modifying, or altering any of the powers, rights or authority vested in the Corporation or, to the extent delegated, in its delegate
including, without limitation, the right to make certain determinations and elections with respect to the Restricted Shares.

 

8. Binding Effect. This Agreement
shall be binding upon and inure to the benefit of any successors to the Corporation and all persons lawfully claiming under the
Participant.

 

9. Notices. All notices and
other communications provided for herein shall be in writing and shall be delivered by hand or sent by certified or registered
mail (or by such other method as the Committee may from time to time deem appropriate), return receipt requested, postage prepaid,
and addressed, if to the Corporation,_________________; Attention: _______ (or to such different address as the Corporation may
designate in writing) or, if to the Participant, at the Participant’s most recent address as shown in the employment or stock
records of the Corporation.

 

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10. Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears
thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or
more counterparts hereof, individually or taken together, shall bear the signatures of all the parties reflected hereon as the
signatories. Copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

11. Governing Law. This Agreement
shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania.

 

IN WITNESS WHEREOF, the Corporation
has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Participant has executed this Agreement,
all as of the date first above written.

  

 

	FEDERAL LIFE GROUP, INC.	 	PARTICIPANT
	HOLDING CORPORATION	 	 
	 	 	 	 	 
	 	 	 	 	 
	By	 	 	 
	 	 	 	(Signature)

 

    	 	4

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