Document:

Exhibit 10.4

 

AMENDMENT NUMBER ONE

 

to

 

REINSURANCE AGREEMENT

 

NUMBER          308-16AY12

 

between

 

FEDERAL LIFE INSURANCE COMPANY

3750 West Deerfield Road

Riverwoods, Illinois 60015

 

(hereinafter referred to as “THE COMPANY”)

 

and

 

OPTIMUM RE INSURANCE COMPANY

 

1345 River Bend Drive, Suite 100,

 

Dallas, TX 75247

 

(hereinafter referred to as “OPTIMUM
RE”)

 

Respecting reinsurance of a closed in-force block of Universal
Life policies reinsured on YRT basis from October 1, 2017

 

     

     

    

 

1. Effective October 1, 2017, this
Agreement shall be amended as follows:

 

A. Article 1.1, Scope
of Reinsurance Ceded and Accepted, shall be amended and replaced by the following to reflect the addition of a closed in-force
block of Universal Life policies:

 

1.1 Scope of Reinsurance
Ceded and Accepted

 

Effective July 1,
2016, OPTIMUM IRE hereby agrees to assume 100% of the amount in excess of THE COMPANY’s retention, net of the existing amount
of reinsurance, on THE COMPANY’s closed in-force block of Level Term policies as per the attached in-force listing specified
in Schedule E. It is understood that no additional policies are to be added to this block past the effective date of this
Agreement without OPTIMUM RE’s prior written approval.

 

Effective October 1,
2017, OPTIMUM RE hereby agrees to assume 100% of the amount in excess of THE COMPANY’s retention, net of the existing amount
of reinsurance, on THE COMPANY’s closed in-force block of Universal Life policies as per the attached in-force listing specified
in Schedule H. It is understood that no additional policies are to be added to this block past the effective date of this
Agreement without OPTIMUM RE’s prior written approval.

 

The maximum
reinsurance amount per life that will be ceded to OPTIMUM RE is as described in Schedule A.

 

B. Article 3.2, Net Amount
at Risk Basis, shall be amended and replaced by the following to reflect a change in A.2 due to the administration of the closed
in-force block of Universal Life policies.

 

3.2 Net Amount at Risk Basis

 

When the reinsurer
does not participate in the surrender values on a policy, as in reinsurance based on YRT or cost of insurance rates, the reinsurance
amount at risk shall be based on the death benefit less a fund which represents the savings element in the policies.

 

The overriding
principle involved is that OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the net
amount at risk.

 

    	 	1	 

     

    

 

Net Amounts at Risk mill be defined
as follows:

 

A. Insurance With Cash Values

 

1. Scheduled Face Amount and Cash Value 

 

Amounts at
risk will be projected for 10 year intervals (or until there is a scheduled change in face amount if less than 10 years).
Cash, values will be used to represent the fund at the end of an interval, and amounts at risk for each intervening year will be
interpolated on a straight line basis.

 

2. Variable Face Amount or Variable Cash Value

 

The amount
at risk applicable to each policy year will be the projected amount at risk at the beginning of that policy year. Amounts at risk
will be recalculated when THE COMPANY periodically provides updated cash values. Upon recalculation, the amount at risk will remain
level until THE COMPANY provides the subsequent updated cash values. The amount at risk on which reinsurance premiums were paid
will be the basis for the reinsurance claim liability.

 

B. Insurance Without Cash Values

 

This category
should include policies where the cash values never exceed 10% of the face amount.

 

1. Scheduled Face Amount 

 

The amount
at risk applicable to each policy year will be the face amount applicable at the beginning of the policy year.

 

2. Variable Face Amount 

 

The amount
at risk applicable to each policy year will be the face amount projected to be applicable at the beginning of that policy year.
Face amounts will be projected for five year intervals. Where actual face amounts diverge from the originally projected face amounts
by more than 10%, THE COMPANY may re-establish the projected schedule at the next policy anniversary for future face amounts. If
the schedule is not amended, the existing established schedule will be used for determining premium and claims liabilities.

 

    	 	2	 

     

    

 

C. Article 4. 2, Standard,
Risks, shall be amended and replaced by the following to reflect the addition of a closed in-force block of Universal Life
policies:

 

4.2         Standard
Risks

 

TERM BLOCK

For policies
issued prior to 2009, reinsurance premiums for standard risks are calculated based on the issue age and duration for that policy
by applying the appropriate percentage as specified in Schedule B to the age nearest birthday mortality tables specified in
Schedule C, exclusive of policy fees.

 

For policies
issued in 2009 and afterwards, reinsurance premiums for standard risks are calculated based on the issue age and duration for that
policy by applying the appropriate percentage as specified in Schedule B to the age last birthday mortality tables specified
in Schedule D, exclusive of policy fees.

 

UNIVERSAL LIFE BLOCK

For policies
issued on forms I-385, L-7620, and, L-7929, reinsurance premiums for standard risks are calculated based on the issue age
and duration for that policy by applying the appropriate percentage as specified in Schedule B to the age nearest birthday
mortality tables specified in Schedule F, exclusive of policy fees.

 

For policies
issued on form L-8031, reinsurance premiums for standard risks are calculated based on the issue age and duration for that policy
by applying the appropriate percentage as specified in Schedule B to the age last birthday mortality tables specified in Schedule G,
exclusive of policy fees.

 

TERM AND UNIVERSAL LIFE BLOCKS

For the period
from the effective date of the reinsurance coverage under this Agreement up to the next policy anniversary date, THE COMPANY shall
pay a pro-rated reinsurance premium to OPTIMUM RE. Following the initial reinsurance premium, all reinsurance premiums shall be
as described above and in Article 7.

 

D. Article 8.8, Recapture,
shall be renumbered to Article 8.9, and a new Article 8.8, Reduced Paid Up and Extended Term, shall be included as shown
below:

 

8 .8         Reduced Paid Up and
Extended Term

 

If a Reduced
Paid Up or Extended Term option is selected by the policyholder, OPTIMUM RE will continue to reinsure its proportionate share of
the policy.

 

    	 	3	 

     

    

 

For policies
where OPTIMUM RE does not participate in surrender value accumulation, reinsurance premiums will be calculated on a point-in-scale
basis using the same YRT rates that applied to the policy and the calculation of the Net Amount at Risk according to Article 3.

 

8 9         Recapture

 

Recapture will
not be permitted under this Agreement unless explicitly approved by OPTIMUM RE, except as stated in Article 3.3.

 

E. Schedule B shall be amended
and replaced with the attached.

 

F. Schedules F, G, and H
shall be included as attached.

 

    	 	4	 

     

    

 

2. Signatures

 

The terms and conditions of this Agreement
are not changed in any way except as stated herein.

 

IN WITNESS of the above, this Amendment
is signed in duplicate on the dates indicated.

 

	FOR:  FEDERAL LIFE INSURANCE COMPANY

 

	BY:	/s/ Paul R. Murphy	 	DATE:	01-10-2018
	 	 	 	 	 
	NAME:	Paul R. Murphy	 	 	 
	 	 	 	 	 
	TITLE:	Actuary	 	 	 

 

	BY:	/s/ Dorothy M. Latuzek	 	DATE:	01-10-2018
	 	 	 	 	 
	NAME:	Dorothy M. Latuzek	 	 	 
	 	 	 	 	 
	TITLE:	Director of Underwriting	 	 	 

 

FOR: OPTIMUM RE INSURANCE COMPANY

 

	BY:	/s/ Sebastien Blondeau	 	DATE:	12-20-2017
	 	 	 	 	 
	NAME:	Sebastien Blondeau	 	 	 
	 	 	 	 	 
	TITLE:	President & COO	 	 	 
	 	 	 	 	 
	BY:	/s/ Serge Goulet	 	DATE:	12-20-2017
	 	 	 	 	 
	NAME:	Serge Goulet	 	 	 
	 	 	 	 	 
	TITLE:	Managing Director	 	 	 

 

    	 	5	 

     

    

 

SCHEDULE B

 

EFFECTIVE JULY 1, 2016

REINSURANCE PREMIUM PERCENTAGES FOR THE

CLOSED IN-FORCE BLOCK OF LEVEL TERM POLICIES

 

PREMIUM PERCENTAGES APPLIED TO THE APPLICABLE MORTALITY

TABLES SPECIFIED IN SCHEDULE C AND SCHEDULE D

 

3-CLASS TERM PRODUCTS 

 

	RISK CLASS	 	LEVEL TERM
 PERIOD	 	 	POST LEVEL
 TERM PERIOD	 
	MALE PREFERRED NONTOBACCO	 	 	43	%	 	 	62	%
	MALE RESIDUAL NONTOBACCO	 	 	52	%	 	 	82	%
	MALE STANDARD TOBACCO	 	 	109	%	 	 	169	%
	FEMALE PREFERRED NONTOBACCO	 	 	47	%	 	 	68	%
	FEMALE RESIDUAL NONTOBACCO	 	 	63	%	 	 	99	%
	FEMALE STANDARD TOBACCO	 	 	140	%	 	 	217	%

 

2-CLASS & AGGREGATE TERM PRODUCTS, 

 

	 	 	ART ONLY	 	 	ALL OTHER TERM
 PLANS	 
	RISK CLASS	 	ALL
 DURATIONS	 	 	LEVEL
 TERM
 PERIOD	 	 	POST
 LEVEL
 TERM
 PERIOD	 
	MALE STANDARD NONTOBACCO	 	 	52	%	 	 	52	%	 	 	82	%
	MALE STANDARD TOBACCO	 	 	109	%	 	 	109	%	 	 	169	%
	MALE AGGREGATE	 	 	63	%	 	 	63	%	 	 	98	%
	FEMALE STANDARD NONTOBACCO	 	 	63	%	 	 	63	%	 	 	99	%
	FEMALE STANDARD TOBACCO	 	 	140	%	 	 	140	%	 	 	217	%
	FEMALE AGGREGATE	 	 	81	%	 	 	81	%	 	 	125	%

 

*AFTER APPLYING THE ABOVE PERCENTAGES
TO THE MORTALITY TABLES SPECIFIED, MULTIPLY THESE BY THE NET AMOUNT AT RISK PER THOUSAND AND ROUND THE RESULTING REINSURANCE PREMIUMS
TO TWO DECIMAL PLACES (I.E., NEAREST CENT).

 

    	 	6	 

     

    

 

SCHEDULE B
(Continued)

 

EFFECTIVE JULY 1, 2016

REINSURANCE PREMIUM PERCENTAGES FOR THE

CLOSED IN-FORCE BLOCK OF LEVEL TERM POLICIES

 

PREMIUM PERCENTAGES APPLIED TO THE APPLICABLE MORTALITY

TABLES SPECIFIED IN SCHEDULES F AND G

 

	RISK CLASS	 	ALL

DURATIONS	 
	ALL CLASSES	 	 	115	%

 

*AFTER APPLYING THE ABOVE PERCENTAGES TO THE MORTALITY TABLES
SPECIFIED, MULTIPLY THESE BY THE NET AMOUNT AT RISK PER THOUSAND AND ROUND THE RESULTING REINSURANCE PREMIUMS TO TWO DECIMAL PLACES
(I.E., NEAREST CENT). FOR UNIVERSAL LIFE POLICIES, THE NET AMOUNT AT RISK SHALL BE DEFINED AS THE FACE AMOUNT MINUS THE CASH VALUE.

 

    	 	7	 

     

    

 

SCHEDULE F

 

SOA 2008 VBT, AGE NEAREST BIRTHDAY,

SELECT & ULTIMATE, SMOKER AND

GENDER DISTINCT MORTALITY TABLES

 

PART 1 - MALE RATES

 

    	 	8	 

     

    

 

REINSURANCE AGREEMENT

 

NUMBER:      308-16AY12

 

Between

 

FEDERAL LIFE INSURANCE COMPANY (MUTUAL)

 

3750 West Deerfield Road

 

Riverwoods, Illinois 60015

 

(hereinafter referred to as “THE COMPANY”)

 

And

 

OPTIMUM RE INSURANCE COMPANY

 

1345 River Bend Drive, Suite 100

 

Dallas, TX 75247

 

(hereinafter referred to as “OPTIMUM
RE”)

 

Respecting reinsurance of a closed in-force block of Level Term
policies reinsured on an Automatic YRT basis from July 1, 2016.

 

     

     

    

 

TABLE
OF CONTENTS

 

	 	Page
	 	 
	ARTICLE 1 REINSURANCE CEDED AND ACCEPTED	3
	 	 
	1.1. Scope of Reinsurance Ceded and Accepted	3
	 	 
	1.2. Currency	3
	 	 
	ARTICLE 2 LIABILITY	4
	 	 
	ARTICLE 3 REINSURANCE AMOUNT AT RISK	5
	 	 
	3.1. Face Amount Basis	5
	 	 
	3.2. Net Amount at Risk Basis	5
	 	 
	3.3. Minimum Reinsured Risk Amount	6
	 	 
	ARTICLE 4 REINSURANCE PREMIUMS	7
	 	 
	4.1. Life Premiums	7
	 	 
	4.2. Standard Risks	7
	 	 
	4.3. Substandard Risks	7
	 	 
	ARTICLE 5 ALLOWANCES	9
	 	 
	5.1. Allowances	9
	 	 
	5.2. Premium Taxes	9
	 	 
	ARTICLE 6 GENERAL PROCEDURES	10
	 	 
	6.1. Inspection of Records	10
	 	 
	6.2. Errors and Omissions	10
	 	 
	6.3. Reserves	10
	 	 
	6.4. Reporting	10
	 	 
	6.5. Confidentiality	11
	 	 
	ARTICLE 7 ACCOUNTING AND BILLING	12
	 	 
	7.1. Reinsurance Premiums	12
	 	 
	7.2. Individual Cession Billing	12
	 	 
	7.3. Late Payment	12
	 	 
	ARTICLE 8 CHANGES AND ADJUSTMENTS	13
	 	 
	8.1. Change Information	13
	 	 
	8.2. Reductions	13
	 	 
	8.3. Reinstatements	13
	 	 
	8.4. Conversions	13
	 	 
	8.5. Terminations	13

 

    	 	i	 

     

    

 

	8.6. Cash Values	14
	 	 
	8.7. Policy loans and Dividends	14
	 	 
	8.8. Recapture	14
	 	 
	ARTICLE 9 CLAIMS	15
	 	 
	9.1. Claims Liability	15
	 	 
	9.2. Notice	15
	 	 
	9.3. Authorization for Payment	15
	 	 
	9.4. Adjusted Amounts	15
	 	 
	9.5. Payment	15
	 	 
	9.6. Contest	15
	 	 
	9.7. Punitive Damages	16
	 	 
	ARTICLE 10 ARBITRATION	17
	 	 
	10.1. Principle	17
	 	 
	10.2. Arbitrators	17
	 	 
	10.3. Matters In Dispute	17
	 	 
	10.4. Procedures	17
	 	 
	10.5. Decision	17
	 	 
	10.6. Applicable Laws	17
	 	 
	ARTICLE 11 INSOLVENCY	18
	 	 
	11.1. Payment of Claims	18
	 	 
	11.2. Notice to OPTIMUM RE	18
	 	 
	11.3. Expenses	18
	 	 
	11.4. Right to Offset	18
	 	 
	ARTICLE 12 DEFERRED ACQUISITION COST TAX	19
	 	 
	ARTICLE 13 EXECUTION	20
	 	 
	13.1. Duration	20
	 	 
	13.2. Parties to the Agreement	20
	 	 
	13.3. Written Agreement	20
	 	 
	13.4. Change of Control/Assignment	20
	 	 
	13.5. Compliance	21
	 	 
	13.6. Signatures	21

 

    	 	ii	 

     

    

 

SCHEDULES

 

	SCHEDULE A:	RETENTION AND REINSURANCE LIMITS
	 	 
	SCHEDULE B:	REINSURANCE PREMIUM PERCENTAGES FOR THE CLOSED IN-FORCE BLOCK OF LEVEL TERM POLICIES
	 	 
	SCHEDULE C:	US 75-80, BASIC SELECT & ULTIMATE, AGGREGATE AGE NEAREST BIRTHDAY, GENDER DISTINCT MORTALITY TABLES

 

	 	PART 1 -	
        MALE RATES

         

	 	PART 2 -	FEMALE RATES

 

	SCHEDULE D:	US 75-80, BASIC SELECT & ULTIMATE, AGGREGATE AGE LAST BIRTHDAY, GENDER DISTINCT MORTALITY TABLES

 

	 	PART 1 -	
        MALE RATES

         

	 	PART 2 -	FEMALE RATES

 

	SCHEDULE E:	IN-FORCE LIST OF LEVEL TERM POLICIES

 

    	 	iii	 

     

    

 

By this Agreement, FEDERAL LIFE INSURANCE COMPANY (MUTUAL),
a corporation organized under the laws of the State of Illinois, hereinafter referred to as “THE COMPANY”, and OPTIMUM
RE INSURANCE COMPANY, a corporation organized under the laws of the State of Texas, hereinafter referred to as “OPTIMUM RE”,
mutually agree to reinsure on the following terms and conditions.

 

    	 	1	 

     

    

 

DEFINITION
OF TERMS USED IN THIS AGREEMENT

 

	Compensatory Damages	 	Shall mean the amounts awarded to compensate for the actual damages sustained, and not awarded as a penalty, nor fixed in amount by statute.
	 	 	 
	Insolvency	 	Shall mean the legal incapacity of a company to operate as declared by a court of competent jurisdiction.
	 	 	 
	Policy	 	Shall mean the contract(s) of insurance issued by THE COMPANY in respect of which reinsurance is applied for and/or placed in whole or in part.
	 	 	 
	Punitive Damages	 	Shall mean the damages awarded as a penalty, the amount of which is not governed, nor fixed by statute.
	 	 	 
	Reinsurance Cession	 	Shall mean the insurance transferred to OPTIMUM RE by THE COMPANY on a policy.
	 	 	 
	Statutory Penalties	 	Shall mean the amounts which are awarded as a penalty, but fixed in amount by statute.

 

    	 	2	 

     

    

 

ARTICLE
1

REINSURANCE CEDED AND ACCEPTED

 

1.1.
Scope of Reinsurance Ceded and Accepted

 

OPTIMUM RE hereby agrees to assume 100%
of the amount in excess of THE COMPANY’s retention, net of the existing amount of reinsurance, on THE COMPANY’s closed
in-force block of Level Term policies as per the attached in-force listing specified in Schedule E. It is understood that
no additional policies are to be added to this block past the effective date of this Agreement without OPTIMUM RE’s prior
written approval.

 

The maximum reinsurance amount per life
that will be ceded to OPTIMUM RE is as described in Schedule A.

 

1.2.
Currency

 

Reinsurance will be in U.S. dollars. Any
other currency requires specific agreement between THE COMPANY and OPTIMUM RE.

 

    	 	3	 

     

    

 

ARTICLE
2

LIABILITY

 

OPTIMUM RE accepts liability for its share
of the risks on eligible lives for deaths occurring on or after the effective date of the Agreement.

 

The liability of OPTIMUM RE on any policy
shall commence on the effective date of this Agreement and end simultaneously with that of THE COMPANY.

 

    	 	4	 

     

    

 

ARTICLE
3

REINSURANCE AMOUNT AT RISK

 

3.1.
Face Amount Basis

 

When the reinsurer is participating in the
accumulation of surrender values on a policy, or when there are no surrender values on a policy, the reinsurance amount shall be
based on the face amount of the policy.

 

The overriding principle involved is that
OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the initial face amount.

 

3.2.
Net Amount at Risk Basis

 

When the reinsurer does not participate
in the surrender values on a policy, as in reinsurance based on YRT or cost of insurance rates, the reinsurance amount at risk
shall be based on the death benefit less a fund which represents the savings element in the policies.

 

The overriding principle involved is that
OPTIMUM RE and THE COMPANY will each continue to insure their original proportionate share of the net amount at risk.

 

Net Amounts at Risk will be defined as follows:

 

A. Insurance With Cash Values

 

1. Scheduled Face Amount and Cash Value

 

Amounts at risk will be projected for 10 year
intervals (or until there is a scheduled change in face amount if less than 10 years). Cash values will be used to represent
the fund at the end of an interval, and amounts at risk for each intervening year will be interpolated on a straight line basis.

 

2. Variable Face Amount or Variable
Cash Value

 

The amount at risk applicable to each policy
year will be the projected amount at risk at the beginning of that policy year. Amounts at risk will be projected for five year
intervals. Where an actual amount at risk diverges from an originally projected amount at risk by more than 10%, THE COMPANY may
re-establish the projected Schedule at the next policy anniversary for future amounts at risk. If the Schedule is not
amended, the existing established Schedule will be used for determining premium and claims liabilities.

 

B. Insurance Without Cash Values

 

This category should include policies where
the cash values never exceed 10% of the face amount.

 

    	 	5	 

     

    

 

1. Scheduled Face Amount

 

The amount at risk applicable to each policy
year will be the face amount applicable at the beginning of the policy year.

 

2. Variable Face Amount

 

The amount at risk applicable to each policy
year will be the face amount projected to be applicable at the beginning of that policy year. Face amounts will be projected for
five year intervals. Where actual face amounts diverge from the originally projected face amounts by more than 10%, THE COMPANY
may re-establish the projected Schedule at the next policy anniversary for future face amounts. If the Schedule is not
amended, the existing established Schedule will be used for determining premium and claims liabilities.

 

3.3.
Minimum Reinsured Risk Amount

 

The minimum reinsured risk amount shall
be $1,000. In the event that the reinsured risk amount reduces below the minimum, THE COMPANY will automatically recapture the
risk on that policy anniversary.

 

    	 	6	 

     

    

 

ARTICLE
4

REINSURANCE PREMIUMS

 

4.1.
Life Premiums

 

Until further notice, the reinsurance premiums
shall be at the rates described in Articles 4.2 and 4.3.

 

Although OPTIMUM RE anticipates that the
reinsurance premium rates in Schedule B shall apply indefinitely, it guarantees only that the reinsurance premium rates applicable
to the business reinsured hereunder will not exceed the YRT net premiums at the applicable statutory minimum valuation select and
ultimate mortality table and statutory maximum interest rate.

 

In the event THE COMPANY increases its premiums
or cost-of-insurance charges on any block of policies, OPTIMUM RE reserves the right to review and modify its reinsurance premium
rates. Any such increase in the reinsurance premium rates shall be in proportion to THE COMPANY’s increase in premiums or
cost-of-insurance charges.

 

The increase in the reinsurance premium
rates shall become effective on the policy anniversary dates beginning no sooner than 30 days after OPTIMUM RE has given its
written notice to THE COMPANY of its intent to increase the reinsurance premium rates and no sooner than the COMPANY’s increase
in its premiums or cost-of-insurance charges.

 

4.2.
Standard Risks

 

For policies issued prior to 2009, reinsurance
premiums for standard risks are calculated based on the issue age and attained duration for that policy by applying the appropriate
percentage as specified in Schedule B to the age nearest mortality tables specified in Schedule C, exclusive of policy
fees.

 

For policies issued in 2Q09 and afterwards,
reinsurance premiums for standard risks are calculated based on the issue age and attained duration for that policy by applying
the appropriate percentage as specified in Schedule B to the age last mortality tables specified in Schedule D, exclusive
of policy fees.

 

For the period from the effective date of
this Agreement up to the next policy anniversary date, THE COMPANY shall pay a pro-rated reinsurance premium to OPTIMUM RE. Following
the initial reinsurance premium, all reinsurance premiums shall be as described above and in Article 7.

 

4.3.
Substandard Risks

 

Substandard reinsurance premiums shall be
paid on policies which have been underwritten as a substandard risk. The substandard extra premium rate per $1,000 for one table
(25% mortality) is 25% of the standard rate. The extra premium for additional tables is the corresponding multiple of the extra
premium rate for one table.

 

    	 	7	 

     

    

 

When a flat extra premium is charged by
THE COMPANY, a flat extra reinsurance premium is paid at the same rate and for the same period.

 

    	 	8	 

     

    

 

ARTICLE
5

ALLOWANCES

 

5.1.
Allowances

 

There are no allowances payable on the standard
and substandard life premiums based on the YRT rates in Schedule B.

 

Allowances on Flat Extra Premiums 

 

On permanent (6 years or more) flat extra
premiums:

 

	1st year	 	:	 	 	75	%
	 	 	 	 	 	 	 
	Renewals	 	:	 	 	10	%

 

On temporary (5 years of less) flat extra
premiums:

 

	All years	 	:	 	 	10	%

 

5.2.
Premium Taxes

 

OPTIMUM RE shall not reimburse THE COMPANY
for state premium tax or any other tax levied on THE COMPANY.

 

    	 	9	 

     

    

 

ARTICLE
6

GENERAL PROCEDURES

 

6.1.
Inspection of Records

 

OPTIMUM RE shall have the right to inspect,
make copies of, or reproduce, at any reasonable time, at the office of THE COMPANY, all books and documents relating to reinsurance
under this Agreement.

 

6.2.
Errors and Omissions

 

It is expressly understood and agreed that
if failure to comply with any terms of this Agreement is shown to be unintentional and the result of administrative errors or omissions
on the part of either THE COMPANY or OPTIMUM RE, both THE COMPANY and OPTIMUM RE shall be restored to the position they would have
occupied had no such error or omission occurred.

 

This provision shall apply only to oversights,
misunderstandings or clerical errors relating to the administration of reinsurance covered by this Agreement and not to the administration
of the insurance provided by THE COMPANY to its insured. Any negligent or deliberate acts or omissions by THE COMPANY regarding
the insurance provided are the responsibility of THE COMPANY and its liability insurer, if any, but not that of OPTIMUM RE.

 

Furthermore, the deviating party will undertake
to identify, through a prudent review of its records all other errors and omissions of the same or similar category and correct
them within a mutually negotiated time frame.

 

If seven (7) years have elapsed since the
error or oversight occurred, there will not be rectification as above, unless both OPTIMUM RE and THE COMPANY agree to such rectification.

 

6.3.
Reserves

 

OPTIMUM RE will establish appropriate reserves
in accordance with the Standard Valuation Law in effect in Texas, on the portion of policies reinsured, and in force, as reported
to OPTIMUM RE under this Agreement.

 

6.4.
Reporting

 

THE COMPANY shall promptly report all transactions
to OPTIMUM RE. In particular, but not limited to, changes and terminations.

 

Should THE COMPANY encounter, or expect
to encounter, delays in reporting its business; it shall promptly:

 

		1.	Notify OPTIMUM RE of the situation; and

 

    	 	10	 

     

    

 

		2.	Present OPTIMUM RE with a plan of action to correct the situation, including a time frame to solve
the problem.

 

OPTIMUM RE, upon receipt of the above, may
request that THE COMPANY:

 

		1.	Make modifications to the plan;

 

		2.	Pay estimated premiums for the duration of the reporting problem; and/or

 

		3.	Report larger individual exposures manually, until the situation is resolved.

 

In any case where the above is not met,
or if the plan is not accepted by both OPTIMUM RE and THE COMPANY, or when the plan is not adhered to, OPTIMUM RE reserves the
right to deny liability on claims or limit refunds of reinsurance premiums.

 

6.5.
Confidentiality

 

THE COMPANY and OPTIMUM RE agree that Customer
and Proprietary Information will be treated as confidential. Customer Information includes, but is not limited to, medical, financial,
and other personal information about proposed, current, and former policy owners, insureds, applicants, and beneficiaries of policies
issued by THE COMPANY. Proprietary Information includes, but is not limited to, business plans, mortality and lapse studies, underwriting
manuals and guidelines, applications and contract forms. Furthermore, the specific terms and conditions of this Agreement, cannot
be disclosed to any other party for competitive use, unless prior written approval is obtained.

 

Customer and Proprietary Information will
not include information that:

 

		a.	is or becomes available to the general public through no fault of the party receiving the Customer
or Proprietary Information (the “Recipient”);

 

		b.	is independently developed by the Recipient;

 

		c.	is acquired by the Recipient from a third party not covered by a confidentiality agreement; or

 

		d.	is disclosed under a court order, law or regulation.

 

The parties will not disclose such information
to any other parties unless agreed to in writing, except as necessary for retrocession purposes, as requested by external auditors,
as required by court order, or as required or allowed by law or regulation.

 

THE COMPANY acknowledges that OPTIMUM RE
can aggregate data with other companies reinsured with OPTIMUM RE as long as the data cannot be identified as belonging to THE
COMPANY.

 

    	 	11	 

     

    

 

ARTICLE
7

ACCOUNTING AND BILLING

 

7.1.
Reinsurance Premiums

 

For the period from the effective date of
this Agreement up to the next policy anniversary date, the reinsurance premiums are due at the effective date of this Agreement.
Following the initial payment of reinsurance premiums, reinsurance premiums are due on the policy anniversary date and payable
to OPTIMUM RE on an annual basis regardless of how premiums are paid to THE COMPANY.

 

7.2.
Individual Cession Billing

 

OPTIMUM RE will submit every month to THE
COMPANY a listing of changes and terminations, and a statement of amounts payable.

 

The net balance is due to OPTIMUM RE within
30 days of receiving the statement. If a balance is due to THE COMPANY, OPTIMUM RE will remit its payment with the statement.

 

7.3.
Late Payment

 

Any overdue balance bears interest from
the end of a 30-day period following receipt of the monthly billing.

 

The interest for the period from 30 to 60 days
will be the then current annual prime interest rate of the JP Morgan Chase Bank, Dallas, Texas calculated on a monthly basis.

 

For each additional month, after 60 days
that a balance remains unpaid, interest will be calculated using the above annual rate plus 2%.

 

The payment of reinsurance premiums shall
be a condition precedent to the liability of OPTIMUM RE under this Agreement. If any premium remains unpaid for more than 60 days
after the due date, OPTIMUM RE may send to THE COMPANY a formal demand for immediate payment. If THE COMPANY does not comply with
this demand within 30 days, then OPTIMUM RE may cancel any unpaid reinsurance cessions for nonpayment of premium; however,
any unpaid premiums to the time of cancellation would be due with interest.

 

THE COMPANY will not force cancellation
under the provisions of this Article solely to circumvent the provisions regarding recapture in Article 8.8., or to transfer
the reinsured policies to another reinsurer.

 

    	 	12	 

     

    

 

ARTICLE
8

CHANGES AND ADJUSTMENTS

 

8.1.
Change Information

 

THE COMPANY will keep OPTIMUM RE informed
of any changes or adjustments affecting a reinsured case. If a change affects either the reinsurance premiums or allowances, or
amount at risk, THE COMPANY will provide OPTIMUM RE with the necessary information to complete a modified Reinsurance Cession Form.

 

8.2.
Reductions

 

If a policy is changed in any way that results
in a reduction in the amount of insurance on any policy, the amount of reinsurance on that policy will be reduced proportionately.

 

If a Life has multiple policies and one
or more are terminated or reduced, the reinsurance on remaining policies for that same Life that are reinsured under this Agreement
will not be reduced to allow THE COMPANY to fill its retention.

 

If more than one reinsurer has a cession
on that policy, each reinsurer’s cession will be reduced proportionately.

 

8.3.
Reinstatements

 

If a policy reinsured with OPTIMUM RE lapses
and is subsequently reinstated under THE COMPANY’s regular rules, the reinsurance will automatically be reinstated for the
same amount, upon receipt by OPTIMUM RE of written notice of the reinstatement. All other reinstatement requests shall be submitted
to OPTIMUM RE for its approval before THE COMPANY can reinstate such policy.

 

THE COMPANY shall pay all reinsurance premiums
in arrears for the same period THE COMPANY received premiums in arrears under its policy, including interest, if any.

 

8.4.
Conversions

 

When a conversion right is contractually
available under the original plan, provided the conversion occurs before age 65, OPTIMUM RE shall continue to reinsure its share
of the policy. The reinsurance premiums shall be calculated on a point-in-scale basis using the same reinsurance factor specified
in Schedule B, at the time of the policy conversion, for the conversion plan. The calculation of the Net Amount at Risk shall
be as described in Article 3.

 

8.5.
Terminations

 

At termination of a policy, other than death,
all premiums and allowances, excluding cession fees, are adjusted pro rata for the period of coverage.

 

In the event of termination by death, there
will be no adjustment of premiums.

 

    	 	13	 

     

    

 

8.6.
Cash Values

 

OPTIMUM RE will not participate in the payment
of cash values.

 

8.7.
Policy loans and Dividends

 

OPTIMUM RE will not participate in policy
loans or dividends.

 

8.8.
Recapture

 

Recapture will not be permitted under this
Agreement unless explicitly approved by OPTIMUM RE, except as stated in Article 3.3.

 

    	 	14	 

     

    

 

ARTICLE
9

CLAIMS

 

9.1.
Claims Liability

 

OPTIMUM RE will be liable to THE COMPANY
for the benefits reinsured hereunder to the same extent as THE COMPANY is liable to the insured for such benefits, and all reinsurance
will be subject to the terms and conditions of the policy under which THE COMPANY is liable. OPTIMUM RE will also be liable for
its proportionate share of interest on payment of the claim at the usual interest rate allowed by THE COMPANY.

 

9.2.
Notice

 

THE COMPANY will give OPTIMUM RE prompt
notice of any claim. Copies of notification, claim papers and proofs will be furnished to OPTIMUM RE within ten (10) working days
of having been received by THE COMPANY.

 

9.3.
Authorization for Payment

 

On all claims, THE COMPANY must obtain the
approval of OPTIMUM RE prior to acknowledgment of its liability to the claimant.

 

9.4.
Adjusted Amounts

 

In the event the amount of insurance provided
by a policy reinsured hereunder is increased or reduced because of a misstatement of age or sex established after the death of
the insured, OPTIMUM RE will share in the increase or reduction in the proportion that the liability of OPTIMUM RE bore to the
total liability under the policy immediately prior to such increase or reduction.

 

9.5.
Payment

 

On death claims, OPTIMUM RE will pay its
share in a lump sum to THE COMPANY without regard to the form of claim settlement. OPTIMUM RE is not responsible for usual claim
expenses that THE COMPANY incurs in claim settlement such as compensation of employees and routine investigative expenses.

 

9.6.
Contest

 

THE COMPANY will advise OPTIMUM RE of its
intention to contest, compromise or litigate a claim or rescind a contract involving reinsurance. If after reviewing the complete
file OPTIMUM RE agrees in writing with THE COMPANY’s intention, then OPTIMUM RE agrees to pay a share of the expenses incurred
by THE COMPANY in contesting or investigating a claim on a reinsured policy or in rescinding a reinsured policy, in proportion
to the respective liabilities of OPTIMUM RE and THE COMPANY. Compensation of officers and employees of THE COMPANY is not deemed
a claim expense.

 

    	 	15	 

     

    

 

If OPTIMUM RE declines to be a party to
a claim contest, OPTIMUM RE will discharge any and all liability by payment of its full share of the claim to THE COMPANY according
to the terms and conditions of this Agreement.

 

9.7.
Punitive Damages

 

OPTIMUM RE will not participate in punitive,
compensatory or statutory damages or penalties which are awarded against THE COMPANY as a result of an act, omission or course
of conduct committed solely by THE COMPANY in connection with the insurance reinsured under this Agreement.

 

    	 	16	 

     

    

 

ARTICLE
10

ARBITRATION

 

10.1.
Principle

 

The parties express their formal intention
to resolve any differences arising from the interpretation or execution of this Agreement in accordance with equity and usage rather
than according to strict legal rules. Any difference that cannot be resolved by the parties shall be submitted to arbitration by
written notice sent by one party to the other. The location for arbitration shall be Dallas, Texas.

 

10.2.
Arbitrators

 

There shall be three disinterested arbitrators
who shall be officers or retired officers of life insurance or reinsurance companies other than the parties to the Agreement or
their subsidiaries. The arbitrators shall be disinterested parties and cannot be jurists, present or former employees of one of
the parties or their affiliate or therefore related to the management of one of the parties or their affiliates. Each of the parties
shall appoint one of the arbitrators and these two arbitrators shall select the third. In the event that either party should fail
to choose an arbitrator within thirty days after the other party has given notice of its arbitrator appointment, that party may
choose two arbitrators who shall in turn choose a third arbitrator before entering arbitration.

 

Any arbitrator who does not perform their
duties or resigns will be replaced by the party who originally selected that arbitrator.

 

10.3.
Matters In Dispute

 

The parties will state together or separately
the subjects in dispute and submit them in writing to the arbitrators along with the necessary documents.

 

10.4.
Procedures

 

The arbitrators must themselves establish
the procedure to be followed: they are exempt from any judicial formality or rule. They can adjudicate and are empowered to act
as mediators. They shall decide how the arbitration costs are apportioned.

 

10.5.
Decision

 

The award rendered by the majority, must
be in writing, give the reasons for the decision and be signed by each arbitrator. The parties agree to abide by the decision rendered
and to consider the award as final and binding on both parties.

 

10.6.
Applicable Laws

 

Should there be improprieties in the arbitration
process or if one of the parties objects to the implementation of the arbitration process, the laws of the State of Texas shall
then apply.

 

    	 	17	 

     

    

 

ARTICLE
11

INSOLVENCY

 

11.1.
Payment of Claims

 

In the event of insolvency of THE COMPANY,
all claims under this Agreement will be paid by OPTIMUM RE directly to THE COMPANY, its liquidator, receiver or statutory successor.
OPTIMUM RE’s share of claims will be paid without diminution because of the insolvency of THE COMPANY, provided that all
reinsurance premiums have been duly paid and subject to Article 11.4.

 

OPTIMUM RE shall be liable only for the
claims actually paid by THE COMPANY to the insured or its beneficiary on amounts reinsured and shall not be or become liable for
any amounts or reserves to be held by THE COMPANY on policies reinsured under this Agreement.

 

11.2.
Notice to OPTIMUM RE

 

In the event of the insolvency of THE COMPANY,
the liquidator, receiver, or statutory successor of THE COMPANY will give written notice of a pending claim against THE COMPANY
on any policy reinsured, within a reasonable time after the claim is filed in the insolvency proceedings. While the claim is pending,
OPTIMUM RE may investigate and interpose, at its own expense, in the proceedings where the claim is to be adjudicated, any defenses
which it may deem available to THE COMPANY or its liquidator, receiver, or statutory successor.

 

11.3.
Expenses

 

The expenses incurred by OPTIMUM RE will
be charged, subject to court approval, against THE COMPANY as expenses of liquidation to the extent of a proportionate share of
the benefit which accrues to THE COMPANY as a result of the defenses undertaken by OPTIMUM RE. Where two or more reinsurers are
involved and a majority in interest elects to defend a claim, the expenses will be apportioned in accordance with the terms of
the reinsurance agreements as if the expenses had been incurred by THE COMPANY.

 

11.4.
Right to Offset

 

In the event of the insolvency of either
OPTIMUM RE or THE COMPANY, any amounts owed by OPTIMUM RE to THE COMPANY and by THE COMPANY to OPTIMUM RE with respect to this
and all other Reinsurance Agreements between OPTIMUM RE and THE COMPANY, shall be offset against each other with the balance to
be paid by the appropriate party.

 

    	 	18	 

     

    

 

ARTICLE
12

DEFERRED ACQUISITION COST TAX

 

THE COMPANY and OPTIMUM RE mutually agree
to the following pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations issued December 29, 1992 of the Internal
Revenue Code of 1986.

 

		1.	The Party with net positive consideration for the Agreement(s) for each taxable year shall compute
specified policy acquisition expenses without regard to the general deductions limitation of Section 848(c)(1).

 

		2.	THE COMPANY and OPTIMUM RE agree to exchange information pertaining to the amount of net consideration
as determined for all reinsurance agreements in force between them to ensure consistency or as may otherwise be required by the
Internal Revenue Service.

 

		3.	THE COMPANY will submit a Schedule to OPTIMUM RE by June 1st of its calculation of the net
consideration for the preceding calendar year. This calculation shall be accompanied by a statement signed by an officer of THE
COMPANY stating that THE COMPANY will report such net consideration in its tax return for the preceding calendar year.

 

		4.	OPTIMUM RE shall advise THE COMPANY if it disagrees with the amounts provided and OPTIMUM RE and THE
COMPANY agree to amicably resolve any difference. The amounts provided by THE COMPANY shall be presumed correct if it does not
receive a response from OPTIMUM RE at the latest 30 days after receipt by OPTIMUM RE of these amounts or by May 30th
of the current year.

 

    	 	19	 

     

    

 

ARTICLE
13

EXECUTION

 

13.1.
Duration

 

This Agreement will be effective on July 1,
2016. Reinsurance for these policies shall remain in-force until termination of the original policy with THE COMPANY or as provided
elsewhere within this Agreement.

 

13.2.
Parties to the Agreement

 

This is an agreement solely between THE
COMPANY and OPTIMUM RE. There will be no legal relationship between OPTIMUM RE and any person having an interest of any kind in
any of THE COMPANY’s insurance, or between OPTIMUM RE and any other reinsurer, or between OPTIMUM RE and any other third
party.

 

13.3.
Written Agreement

 

A. Entirety

 

This Agreement shall constitute the entire
agreement between THE COMPANY and OPTIMUM RE with respect to the business reinsured hereunder. There are no understandings between
THE COMPANY and OPTIMUM RE other than as expressed in this Agreement.

 

B. Amendments

 

Any change or modification to the Agreement
shall be null and void unless made by amendment to the Agreement and signed by both parties.

 

C. Waiver

 

A waiver of any provision(s) of this Agreement
shall constitute a waiver only with respect to the particular circumstance for which it is given and not a waiver for any future
circumstances.

 

D. Severability

 

If any section or provision of this Agreement
is determined to be invalid or unenforceable, such determination will not impact or affect the validity or the enforceability of
the remaining sections or provisions of this Agreement.

 

13.4.
Change of Control/Assignment

 

Neither THE COMPANY nor its liquidator,
receiver, or statutory successor will, without the prior written consent of OPTIMUM RE, sell, assign, transfer, or otherwise dispose
of this Agreement, or any interest in this Agreement, by voluntary or involuntary act.

 

    	 	20	 

     

    

 

13.5.
Compliance

 

THE COMPANY represents that to the best
of its knowledge and belief it is, and shall use its best efforts to continue to be, in substantial compliance in all material
respects with all laws, regulations, and judicial and administrative orders applicable to the business reinsured under this Agreement,
including but not limited to, privacy laws and the maintenance of an effective anti-money laundering policy, (collectively, the
“Law”). Neither THE COMPANY nor OPTIMUM RE shall be required to take any action under this Agreement that would result
in it being in violation of the Law, which shall include requirements enforced by the U.S. Treasury Department Office of Foreign
Assets Control and Terrorist Financing Act. THE COMPANY and OPTIMUM RE acknowledge and agree that a claim under this Agreement
is not payable if payment would cause OPTIMUM RE to be in violation of the Law. Should either party discover a reinsurance payment
has been made in violation of the Law, it shall notify the other party and the parties shall cooperate in order to take all necessary
corrective actions.

 

13.6.
Signatures

 

IN WITNESS of the above, this Agreement
is signed in duplicate on the dates indicated.

 

 

	FOR:  FEDERAL LIFE INSURANCE COMPANY

 

	BY:	 	 	DATE:	 
	 	 	 	 	 
	NAME:	 	 	 	 
	 	 	 	 	 
	TITLE:	 	 	 	 

 

	BY:	 	 	DATE:	 
	 	 	 	 	 
	NAME:	 	 	 	 
	 	 	 	 	 
	TITLE:	 	 	 	 

 

FOR: OPTIMUM RE INSURANCE COMPANY

 

	BY:	/s/ Sebastien Blondeau	 	DATE:	8-26-2016
	 	 	 	 	 
	NAME:	Sebastien Blondeau	 	 	 
	 	 	 	 	 
	TITLE:	President & COO	 	 	 
	 	 	 	 	 
	BY:	/s/ Serge Goulet	 	DATE:	8-26-2016
	 	 	 	 	 
	NAME:	Serge Goulet	 	 	 
	 	 	 	 	 
	TITLE:	Managing Director	 	 	 

 

    	 	21	 

     

    

 

SCHEDULE
A

RETENTION AND REINSURANCE LIMITS

 

FEDERAL LIFE INSURANCE COMPANY (MUTUAL)

 

	 	 	LIFE
	 	 	 
	THE COMPANY’S Retention Limit per Life	 	20% retained on all ceded amounts.
	 	 	 
	Maximum Reinsurance Amount per Life	 	$208,000
	 	 	 
	Minimum Cession	 	$5,000

 

    	 	22	 

     

    

 

SCHEDULE
B

REINSURANCE PREMIUM PERCENTAGES FOR THE CLOSED IN-FORCE BLOCK OF LEVEL TERM POLICIES

 

PREMIUM PERCENTAGES APPLIED TO THE APPLICABLE
MORTALITY

TABLES SPECIFIED IN SCHEDULE C AND SCHEDULE D 

 

3-CLASS TERM PRODUCTS 

 

	RISK CLASS	 	LEVEL TERM
 PERIOD	 	 	POST LEVEL
 TERM PERIOD	 
	MALE PREFERRED NONTOBACCO	 	 	43	%	 	 	62	%
	MALE RESIDUAL NONTOBACCO	 	 	52	%	 	 	82	%
	MALE STANDARD TOBACCO	 	 	109	%	 	 	169	%
	FEMALE PREFERRED NONTOBACCO	 	 	47	%	 	 	68	%
	FEMALE RESIDUAL NONTOBACCO	 	 	63	%	 	 	99	%
	FEMALE STANDARD TOBACCO	 	 	140	%	 	 	217	%

 

*AFTER APPLYING THE ABOVE PERCENTAGES TO THE MORTALITY TABLES
SPECIFIED IN SCHEDULE C OR SCHEDULE D, MULTIPLY THESE BY THE NET AMOUNT AT RISK PER THOUSAND AND ROUND THE RESULTING
REINSURANCE PREMIUMS TO TWO DECIMAL PLACES (I.E., NEAREST CENT).

 

2-CLASS & AGGREGATE TERM PRODUCTS 

 

	 	 	ART ONLY	 	 	ALL OTHER TERM
 PLANS	 
	RISK CLASS	 	ALL
 DURATIONS	 	 	LEVEL
 TERM
 PERIOD	 	 	POST
 LEVEL
 TERM
 PERIOD	 
	MALE STANDARD NONTOBACCO	 	 	52	%	 	 	52	%	 	 	82	%
	MALE STANDARD TOBACCO	 	 	109	%	 	 	109	%	 	 	169	%
	MALE AGGREGATE	 	 	63	%	 	 	63	%	 	 	98	%
	FEMALE  STANDARD NONTOBACCO	 	 	63	%	 	 	63	%	 	 	99	%
	FEMALE STANDARD TOBACCO	 	 	140	%	 	 	140	%	 	 	217	%
	FEMALE AGGREGATE	 	 	81	%	 	 	81	%	 	 	125	%

 

*AFTER APPLYING THE ABOVE PERCENTAGES
TO THE MORTALITY TABLES SPECIFIED IN SCHEDULE C OR SCHEDULE D, MULTIPLY THESE BY THE NET AMOUNT AT RISK PER THOUSAND
AND ROUND THE RESULTING REINSURANCE PREMIUMS TO TWO DECIMAL PLACES (I.E., NEAREST CENT).

 

    	 	23	 

     

    

 

SCHEDULE
C

US 75-80, BASIC SELECT & ULTIMATE, AGGREGATE AGE NEAREST BIRTHDAY, GENDER DISTINCT MORTALITY TABLES

 

	PART 1	-	MALE RATES

 

    	 	24	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	0	 	1.23	 	0.74	 	0.48	 	0.43	 	0.38	 	0.34	 	0.33	 	0.29 	 	0.27 	 	0.27	 	0.25 	 	0.28 	 	0.31 	 	0.38 	 	0.54 	 	0.68 	 	15
	1	 	0.49	 	0.47	 	0.42	 	0.36	 	0.28	 	0.23	 	0.22	 	0.22	 	0.24	 	0.24	 	0.27	 	0.30	 	0.38	 	0.54	 	0.68	 	1.01	 	16
	2	 	0.35	 	0.37	 	0.33	 	0.28	 	0.23	 	0.22	 	0.21	 	0.24	 	0.24	 	0.27	 	0.30	 	0.37	 	0.54	 	0.68	 	1.01	 	1.14	 	17
	3	 	0.35	 	0.29	 	0.25	 	0.23	 	0.22	 	0.20	 	0.22	 	0.24	 	0.27	 	0.30	 	0.37	 	0.53	 	0.68	 	1.01	 	1.14	 	1.22	 	18
	4	 	0.29	 	0.25	 	0.23	 	0.22	 	0.20	 	0.22	 	0.24	 	0.27	 	0.30	 	0.36	 	0.52	 	0.66	 	0.99	 	1.11	 	1.22	 	1.31	 	19
	5	 	0.25	 	0.23	 	0.22	 	0.20	 	0.22	 	0.24	 	0.27	 	0.30	 	0.36	 	0.50	 	0.66	 	0.96	 	1.09	 	1.16	 	1.31	 	1.37	 	20
	6	 	0.23	 	0.22	 	0.20	 	0.22	 	0.24	 	0.27	 	0.30	 	0.36	 	0.50	 	0.66	 	0.94	 	1.07	 	1.14	 	1.21	 	1.37	 	1.40	 	21
	7	 	0.19	 	0.20	 	0.22	 	0.24	 	0.27	 	0.30	 	0.35	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.40	 	1.41	 	22
	8	 	0.18	 	0.21	 	0.21	 	0.27	 	0.29	 	0.35	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.30	 	1.39	 	1.40	 	23
	9	 	0.19	 	0.20	 	0.24	 	0.29	 	0.35	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.30	 	1.35	 	1.36	 	1.38	 	24
	10	 	0.18	 	0.22	 	0.27	 	0.35	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.30	 	1.35	 	1.36	 	1.32	 	1.34	 	25
	11	 	0.20	 	0.25	 	0.34	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.30	 	1.35	 	1.36	 	1.30	 	1.27	 	1.29	 	26
	12	 	0.23	 	0.32	 	0.50	 	0.66	 	0.87	 	1.05	 	1.13	 	1.19	 	1.23	 	1.30	 	1.35	 	1.36	 	1.30	 	1.2.5	 	1.20	 	1.24	 	27
	13	 	0.30	 	0.46	 	0.63	 	0.87	 	1.05	 	1.12	 	1.19	 	1.22	 	1.24	 	1.28	 	1.31	 	1.30	 	1.25	 	1.20	 	1.16	 	1.20	 	28
	14	 	0.44	 	0.59	 	0.87	 	1.05	 	1.12	 	1.17	 	1.22	 	1.23	 	1.23	 	1.24	 	1.26	 	1.25	 	1.19	 	1.16	 	1.13	 	1.17	 	29
	15	 	0.58	 	0.87	 	1.05	 	1.12	 	1.17	 	1.21	 	1.23	 	1.22	 	1.20	 	1.20	 	1.19	 	1.18	 	1.13	 	1.12	 	1.11	 	1.14	 	30
	16	 	0.87	 	1.05	 	1.12	 	1.17	 	1.21	 	1.20	 	1.21	 	1.19	 	1.16	 	1.14	 	1.12	 	1.12 	 	1.09	 	1.09	 	1.09	 	1.12	 	31
	17	 	1.05	 	1.12	 	1.17	 	1.21	 	1.20	 	1.18	 	1.18	 	1.15	 	1.11	 	1.07	 	1.05	 	1.06	 	1.05	 	1.06	 	1.08	 	1.11	 	32
	18	 	1.03	 	1.10	 	1.13	 	1.15	 	1.14	 	1.11	 	1.11	 	1.07	 	1.04	 	1.01	 	1.00	 	1.02	 	1.01	 	1.03	 	1.07	 	1.12	 	33
	19	 	1.00	 	1.05	 	1.06	 	1.07	 	1.05	 	1.04	 	1.02	 	0.98	 	0.96	 	0.95	 	0.97	 	0.97	 	0.98	 	1.01	 	1.07	 	1.14	 	34
	20	 	0.93	 	0.97	 	0.97	 	0.97	 	0.97	 	0.95	 	0.93	 	0.90	 	0.90	 	0.91	 	0.93	 	0.94	 	0.96	 	1.01	 	1.08	 	1.17	 	35
	21	 	0.84	 	0.87	 	0.87	 	0.87	 	0.87	 	0.86	 	0.85	 	0.83	 	0.85	 	0.86	 	0.90	 	0.92	 	0.96	 	1.02	 	1.11	 	1.22	 	36
	22	 	0.73	 	0.76	 	0.76	 	0.76	 	0.77	 	0.77	 	0.77	 	0.77	 	0.80	 	0.83	 	0.88	 	0.91	 	0.96	 	1.04	 	1.15	 	1.28	 	37
	23	 	0.73	 	0.76	 	0.75	 	0.75	 	0.75	 	0.76	 	0.77	 	0.77	 	0.80	 	0.84	 	0.90	 	0.94	 	1.00	 	1.10	 	1.21	 	1.36	 	38
	24	 	0.73	 	0.74	 	0.73	 	0.73	 	0.74	 	0.76	 	0.77	 	0.78	 	0.82	 	0.87	 	0.93	 	0.97	 	1.05	 	1.17	 	1.29	 	1.45	 	39
	25	 	0.72	 	0.72	 	0.72	 	0.72	 	0.74	 	0.76	 	0.77	 	0.79	 	0.84	 	0.90	 	0.96	 	1.03	 	1.12	 	1.25	 	1.38	 	1.56	 	40
	26	 	0.70	 	0.70	 	0.71	 	0.72	 	0.73	 	0.76	 	0.78	 	0.82	 	0.88	 	0.95	 	1.02	 	1.09	 	1.20	 	1.35	 	1.49	 	1.70	 	41
	27	 	0.68	 	0.68	 	0.70	 	0.71	 	0.73	 	0.77	 	0.81	 	0.86	 	0.92	 	1.01	 	1.08	 	1.17	 	1.30	 	1.47	 	1.63	 	1.87	 	42
	28	 	0.66	 	0.68	 	0.71	 	0.73	 	0.76	 	0.81	 	0.86	 	0.92	 	1.00	 	1.08	 	1.17	 	1.28	 	1.42	 	1.61	 	1.81	 	2.07	 	43
	29	 	0.65	 	0.68	 	0.73	 	0.76	 	0.81	 	0.86	 	0.92	 	1.00	 	1.08	 	1.17	 	1.28	 	1.42	 	1.58	 	1.81	 	2.03	 	2.31	 	44
	30	 	0.64	 	0.68	 	0.76	 	0.81	 	0.86	 	0.92	 	1.00	 	1.08	 	1.17	 	1.28	 	1.42	 	1.58	 	1.81	 	2.03	 	2.26	 	2.58	 	45
	31	 	0.63	 	0.69	 	0.79	 	0.86	 	0.92	 	1.00	 	1.08	 	1.17	 	1.28	 	1.42	 	1.58	 	1.81	 	2.03	 	2.26	 	2.53	 	2.89	 	46
	32	 	0.63	 	0.71	 	0.84	 	0.92	 	1.00	 	1.08	 	1.17	 	1.28	 	1.40	 	1.58	 	1.81	 	2.03	 	2.26	 	2.53	 	2.83	 	3.24	 	47
	33	 	0.63	 	0.72	 	0.88	 	0.98	 	1.08	 	1.17	 	1.28	 	1.40	 	1.58	 	1.78	 	2.01	 	2.25	 	2.53	 	2.83	 	3.17	 	3.61	 	48
	34	 	0.63	 	0.73	 	0.93	 	1.05	 	1.17	 	1.28	 	1.40	 	1.58	 	1.78	 	2.01	 	2.24	 	2.53	 	2.81	 	3.16	 	3.54	 	4.02	 	49

 

    	 	C-1-1	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	35	 	0.63	 	0.76	 	0.99	 	1.14	 	1.28	 	1.40	 	1.58	 	1.78	 	2.01	 	2.24	 	2.53	 	2.80	 	3.13	 	3.52	 	3.94	 	4.45	 	50
	36	 	0.65	 	0.79	 	1.06	 	1.25	 	1.40	 	1.58	 	1.78	 	2.01	 	2.24	 	2.53	 	2.80	 	3.10	 	3.48	 	3.91	 	4.36	 	4.92	 	51
	37	 	0.67	 	0.84	 	1.15	 	1.37	 	1.58	 	1.78	 	2.01	 	2.24	 	2.53	 	2.80	 	3.08	 	3.43	 	3.86	 	4.32	 	4.82	 	5.44	 	52
	38	 	0.70	 	0.89	 	1.23	 	1.47	 	1.70	 	1.91	 	2.16	 	2.41	 	2.72	 	3.04	 	3.35	 	3.76	 	4.25	 	4.28	 	5.33	 	6.00	 	53
	39	 	0.74	 	0.95	 	1.33	 	1.59	 	1.83	 	2.07	 	2.33	 	2.60	 	2.93	 	3.27	 	3.64	 	4.10	 	4.67	 	5.28	 	5.88	 	6.61	 	54
	40	 	0.79	 	1.02	 	1.45	 	1.73	 	2.00	 	2.23	 	2.51	 	2.79	 	3.13	 	3.51	 	3.94	 	4.47	 	5.13	 	5.82	 	6.48	 	7.27	 	55
	41	 	0.85	 	1.11	 	1.59	 	1.90	 	2.17	 	2.42	 	2.70	 	2.98	 	3.33	 	3.75	 	4.24	 	4.86	 	5.62	 	6.41	 	7.12	 	8.01	 	56
	42	 	0.92	 	1.22	 	1.76	 	2.09	 	2.37	 	2.62	 	2.89	 	3.18	 	3.52	 	3.99	 	4.57	 	5.28	 	6.15	 	7.05	 	7.85	 	8.82	 	57
	43	 	0.99	 	1.37	 	1.92	 	2.30	 	2.61	 	2.88	 	3.18	 	3.47	 	3.83	 	4.33	 	4.96	 	5.71	 	6.63	 	7.61	 	8.50	 	9.73	 	58
	44	 	1.08	 	1.53	 	2.11	 	2.52	 	2.86	 	3.17	 	3.47	 	3.79	 	4.17	 	4.70	 	5.37	 	6.16	 	7.16	 	8.20	 	9.22	 	10.75	 	59
	45	 	1.17	 	1.72	 	2.31	 	2.75	 	3.13	 	3.47	 	3.79	 	4.14	 	4.56	 	5.08	 	5.80	 	6.66	 	7.73	 	8.85	 	10.02	 	11.89	 	60
	46	 	1.28	 	1.94	 	2.51	 	3.00	 	3.40	 	3.78	 	4.14	 	4.56	 	4.91	 	5.48	 	6.28	 	7.19	 	8.35	 	9.56	 	10.89	 	13.17	 	61
	47	 	1.39	 	2.17	 	2.73	 	3.25	 	3.69	 	4.13	 	4.56	 	4.89	 	5.31	 	5.93	 	6.79	 	7.78	 	9.03	 	10.34	 	11.85	 	14.57	 	62
	48	 	1.49	 	2.27	 	2.84	 	3.40	 	3.90	 	4.38	 	4.87	 	5.28	 	5.80	 	6.49	 	7.53	 	8.64	 	9.94	 	11.30	 	12.79	 	16.07	 	63
	49	 	1.60	 	2.35	 	2.95	 	3.54	 	4.09	 	4.62	 	5.18	 	5.70	 	6.33	 	7.12	 	8.36	 	9.60	 	10.96	 	12.32	 	13.75	 	17.71	 	64
	50	 	1.70	 	2.42	 	3.04	 	3.66	 	4.29	 	4.87	 	5.51	 	6.15	 	6.93	 	7.83	 	9.30	 	10.69	 	12.06	 	13.40	 	14.77	 	19.50	 	65
	51	 	1.80	 	2.48	 	3.12	 	3.77	 	4.47	 	5.12	 	5.86	 	6.65	 	7.59	 	8.61	 	10.35	 	11.89	 	13.24	 	14.56	 	15.83	 	21.47	 	66
	52	 	1.90	 	2.52	 	3.17	 	3.85	 	4.65	 	5.38	 	6.23	 	7.20	 	8.32	 	9.48	 	11.51	 	13.18	 	14.52	 	15.80	 	16.96	 	23.65	 	67
	53	 	2.06	 	2.75	 	3.46	 	4.23	 	5.08	 	5.90	 	6.84	 	7.89	 	9.11	 	10.43	 	12.63	 	14.52	 	15.80	 	16.96	 	19.16	 	26.05	 	68
	54	 	2.23	 	2.99	 	3.78	 	4.64	 	5.57	 	6.47	 	7.52	 	8.66	 	9.96	 	11.44	 	13.85	 	15.80	 	16.96	 	19.16	 	21.62	 	28.69	 	69
	55	 	2.41	 	3.27	 	4.12	 	5.10	 	6.11	 	7.11	 	8.27	 	9.50	 	10.86	 	12.54	 	15.17	 	16.96	 	19.16	 	21.62	 	24.39	 	31.57	 	70
	56	 	2.61	 	3.56	 	4.51	 	5.61	 	6.71	 	7.83	 	9.09	 	10.38	 	11.83	 	13.73	 	16.62	 	19.16	 	21.62	 	24.39	 	27.47	 	34.68	 	71
	57	 	2.82	 	3.89	 	4.94	 	6.18	 	7.38	 	8.60	 	9.96	 	11.33	 	12.87	 	15.03	 	18.21	 	21.36	 	24.39	 	27.15	 	30.87	 	38.00	 	72
	58	 	2.96	 	4.13	 	5.44	 	6.74	 	8.10	 	9.20	 	10.59	 	12.05	 	13.66	 	15.94	 	19.22	 	22.43	 	25.64	 	28.58	 	32.76	 	41.60	 	73
	59	 	3.10	 	4.37	 	6.00	 	7.34	 	8.87	 	9.82	 	11.23	 	12.79	 	14.47	 	16.88	 	20.25	 	23.49	 	26.85	 	29.94	 	34.70	 	45.54	 	74
	60	 	3.23	 	4.63	 	6.61	 	7.97	 	9.71	 	10.46	 	11.89	 	13.57	 	15.32	 	17.85	 	21.28	 	24.48	 	27.97	 	31.28	 	36.71	 	49.90	 	75
	61	 	3.37	 	4.89	 	7.26	 	8.64	 	10.46	 	11.59	 	12.58	 	14.38	 	16.18	 	18.82	 	22.26	 	25.39	 	29.04	 	32.61	 	38.82	 	54.71	 	76
	62	 	3.50	 	5.14	 	7.97	 	9.36	 	11.59	 	11.83	 	13.29	 	15.21	 	17.05	 	19.77	 	23.18	 	26.21	 	30.06	 	33.93	 	41.03	 	60.03	 	77
	63	 	3.89	 	5.77	 	8.74	 	10.48	 	11.83	 	13.29	 	15.21	 	17.05	 	20.11	 	22.42	 	25.79	 	28.87	 	33.14	 	37.75	 	44.66	 	65.85	 	78
	64	 	4.32	 	6.47	 	9.57	 	11.73	 	13.29	 	15.21	 	17.05	 	20.11	 	22.42	 	25.79	 	28.69	 	32.93	 	36.55	 	42.02	 	48.60	 	72.18	 	79
	65	 	4.80	 	7.26	 	10.50	 	13.13	 	15.21	 	17.05	 	20.11	 	22.42	 	25.79	 	28.69	 	32.93	 	35.12	 	40.34	 	46.75	 	52.83	 	79.02	 	80
	66	 	5.32	 	8.14	 	11.51	 	14.69	 	17.05	 	20.11	 	22.42	 	25.79	 	28.69	 	32.93	 	34.69	 	38.78	 	44.51	 	51.97	 	57.68	 	86.36	 	81
	67	 	5.91	 	9.12	 	12.62	 	16.42	 	20.11	 	22.42	 	25.79	 	28.69	 	32.93	 	34.47	 	38.42	 	42.80	 	49.08	 	57.68	 	62.18	 	94.12	 	82
	68	 	6.51	 	10.04	 	13.89	 	18.04	 	22.04	 	24.54	 	28.23	 	31.44	 	34.47	 	37.82	 	42.14	 	46.91	 	53.73	 	62.18	 	67.77	 	102.35	 	83
	69	 	7.17	 	11.05	 	15.25	 	19.76	 	24.12	 	26.87	 	30.94	 	34.47	 	37.82	 	41.49	 	46.20	 	51.36	 	58.72	 	67.77	 	73.69	 	111.41	 	84

 

    	 	C-1-2	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	70	 	7.89	 	12.14	 	16.72	 	21.64	 	26.41	 	29.44	 	33.92	 	37.82	 	41.49	 	45.48	 	50.57	 	56.13	 	64.00	 	73.69	 	80.22	 	121.31	 	85
	71	 	9.53	 	14.60	 	19.60	 	24.97	 	29.44	 	34.32	 	41.78	 	48.80	 	57.45	 	65.58	 	74.61	 	84.52	 	95.47	 	107.84	 	121.31	 	132.05	 	86
	72	 	11.40	 	16.64	 	22.87	 	28.77	 	34.15	 	39.89	 	48.34	 	56.16	 	65.58	 	74.61	 	84.52	 	95.39	 	107.67	 	121.31	 	132.05	 	143.63	 	87
	73	 	13.52	 	19.13	 	26.61	 	33.20	 	39.52	 	46.21	 	55.72	 	64.40	 	74.61	 	84.52	 	95.39	 	107.62	 	121.31	 	132.05	 	143.63	 	156.05	 	88
	74	 	15.94	 	22.46	 	30.70	 	38.25	 	45.60	 	53.35	 	64.01	 	73.58	 	84.52	 	95.39	 	107.62	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	89
	75	 	18.71	 	26.26	 	35.35	 	43.95	 	52.45	 	61.35	 	73.23	 	83.67	 	95.39	 	107.62	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	90
	76	 	21.88	 	30.62	 	40.61	 	50.35	 	60.12	 	70.26	 	83.39	 	94.78	 	107.62	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	91
	77	 	25.51	 	34.90	 	46.52	 	57.51	 	68.66	 	80.09	 	94.57	 	107.29	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	92
	78	 	29.63	 	40.42	 	53.12	 	65.47	 	78.04	 	90.90	 	107.18	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	93
	79	 	34.65	 	46.62	 	60.45	 	74.20	 	88.36	 	103.10	 	121.31	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	94
	80	 	40.30	 	53.54	 	68.50	 	83.78	 	99.99	 	116.79	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	95
	81	 	46.63	 	61.18	 	77.33	 	94.56	 	113.02	 	132.05	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	272.37	 	96
	82	 	53.65	 	69.60	 	87.27	 	106.64	 	127.54	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	272.37	 	288.80	 	97
	83	 	61.41	 	79.10	 	98.40	 	120.07	 	143.63	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	272.37	 	288.80	 	305.65	 	98
	84	 	72.42	 	89.77	 	110.78	 	134.94	 	156.05	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	272.37	 	288.80	 	305.65	 	322.92	 	99
	85	 	84.92	 	104.82	 	124.48	 	151.33	 	169.12	 	182.61	 	196.52	 	210.85	 	225.60	 	240.77	 	256.36	 	272.37	 	288.80	 	305.65	 	322.92	 	340.61	 	100

 

    	 	C-1-3	 

     

    

 

SCHEDULE C

US 75-80, BASIC SELECT & ULTIMATE, AGGREGATE AGE NEAREST BIRTHDAY, GENDER DISTINCT MORTALITY TABLES

 

	PART 2	-	FEMALE RATES

 

     

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	0	 	0.93	 	0.34	 	0.30	 	0.27	 	0.24	 	0.22	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	02.1	 	0.24	 	0.27	 	0.32	 	0.36	 	15
	1	 	0.34	 	0.30	 	0.27	 	0.24	 	0.22	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	02.4	 	0.27	 	0.32	 	0.36	 	0.40	 	16
	2	 	0.28	 	0.27	 	0.24	 	0.22	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	17
	3	 	0.24	 	0.24	 	0.22	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	18
	4	 	0.22	 	0.22	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	19
	5	 	0.20	 	0.20	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	20
	6	 	0.19	 	0.18	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	21
	7	 	0.17	 	0.18	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	22
	8	 	0.16	 	0.18	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	23
	9	 	0.16	 	0.19	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	24
	10	 	0.16	 	0.21	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	25
	11	 	0.17	 	0.24	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	26
	12	 	0.18	 	0.27	 	0.32	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	27
	13	 	0.21	 	0.31	 	0.35	 	0.38	 	0.42	 	0.45	 	0.47	 	0.49	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	28
	14	 	0.25	 	0.33	 	0.37	 	0.40	 	0.43	 	0.45	 	0.47	 	0.48	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	29
	15	 	0.28	 	0.35	 	0.39	 	0.41	 	0.43	 	0.45	 	0.46	 	0.48	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	0.55	 	30
	16	 	0.32	 	0.37	 	0.39	 	0.41	 	0.42	 	0.43	 	0.45	 	0.46	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	0.55	 	0.58	 	31
	17	 	0.36	 	0.37	 	0.39	 	0.40	 	0.41	 	0.42	 	0.43	 	0.44	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	0.55	 	0.58	 	0.61	 	32
	18	 	0.36	 	0.37	 	0.39	 	0.40	 	0.41	 	0.42	 	0.43	 	0.44	 	0.51	 	0.52	 	0.53	 	0.54	 	0.55	 	0.58	 	0.61	 	0.65	 	33
	19	 	0.36	 	0.37	 	0.39	 	0.40	 	0.41	 	0.42	 	0.43	 	0.44	 	0.50	 	0.50	 	0.54	 	0.55	 	0.58	 	0.61	 	0.65	 	0.70	 	34
	20	 	0.35	 	0.36	 	0.38	 	0.39	 	0.41	 	0.41	 	0.43	 	0.44	 	0.48	 	0.50	 	0.55	 	0.58	 	0.61	 	0.65	 	0.70	 	0.77	 	35
	21	 	0.34	 	0.36	 	0.37	 	0.39	 	0.40	 	0.41	 	0.43	 	0.44	 	0.47	 	0.49	 	0.58	 	0.61	 	0.65	 	0.70	 	0.77	 	0.84	 	36
	22	 	0.32	 	0.34	 	0.36	 	0.38	 	0.40	 	0.41	 	0.43	 	0.45	 	0.46	 	0.50	 	0.61	 	0.65	 	0.70	 	0.77	 	0.84	 	0.93	 	37
	23	 	0.32	 	0.34	 	0.37	 	0.39	 	0.41	 	0.42	 	0.45	 	0.46	 	0.50	 	0.55	 	0.65	 	0.70	 	0.77	 	0.84	 	0.93	 	1.03	 	38
	24	 	0.31	 	0.34	 	0.38	 	0.40	 	0.42	 	0.45	 	0.46	 	0.50	 	0.55	 	0.59	 	0.70	 	0.77	 	0.84	 	0.93	 	1.03	 	1.15	 	39
	25	 	0.31	 	0.35	 	0.39	 	0.41	 	0.44	 	0.46	 	0.50	 	0.55	 	0.59	 	0.63	 	0.77	 	0.84	 	0.93	 	1.03	 	1.15	 	1.29	 	40
	26	 	0.30	 	0.35	 	0.39	 	0.43	 	0.46	 	0.30	 	0.55	 	0.59	 	0.63	 	0.69	 	0.84	 	0.93	 	1.03	 	1.15	 	1.29	 	1.45	 	41
	27	 	0.30	 	0.35	 	0.41	 	0.45	 	0.50	 	0.55	 	0.59	 	0.63	 	0.66	 	0.76	 	0.93	 	1.03	 	1.15	 	1.29	 	1.45	 	1.62	 	42
	28	 	0.31	 	0.36	 	0.42	 	0.48	 	0.53	 	0.59	 	0.63	 	0.66	 	0.76	 	0.86	 	1.03	 	1.15	 	1.29	 	1.45	 	1.62	 	1.79	 	43
	29	 	0.32	 	0.37	 	0.44	 	0.51	 	0.57	 	0.63	 	0.66	 	0.76	 	0.86	 	0.97	 	1.15	 	1.29	 	1.45	 	1.62	 	1.79	 	1.96	 	44
	30	 	0.33	 	0.39	 	0.47	 	0.54	 	0.62	 	0.66	 	0.76	 	0.86	 	0.97	 	1.08	 	1.29	 	1.45	 	1.62	 	1.79	 	1.96	 	2.14	 	45
	31	 	0.35	 	0.41	 	0.50	 	0.59	 	0.66	 	0.76	 	0.86	 	0.97	 	1.08	 	1.19	 	1.45	 	1.62	 	1.79	 	1.96	 	2.14	 	2.33	 	46
	32	 	0.38	 	0.44	 	0.54	 	0.65	 	0.76	 	0.86	 	0.97	 	1.08	 	1.19	 	1.31	 	1.62	 	1.79	 	1.96	 	2.14	 	2.33	 	2.52	 	47
	33	 	0.39	 	0.46	 	0.57	 	0.69	 	0.82	 	0.93	 	1.07	 	1.19	 	1.31	 	1.48	 	1.77	 	1.94	 	2.12	 	2.33	 	2.52	 	2.72	 	48
	34	 	0.41	 	0.49	 	0.60	 	0.74	 	0.88	 	1.02	 	1.18	 	1.31	 	1.48	 	1.64	 	1.92	 	2.10	 	2.30	 	2.51	 	2.72	 	2.93	 	49

 

    	 	C-2-1	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	35	 	0.43	 	0.51	 	0.63	 	0.79	 	0.95	 	1.12	 	1.30	 	1.48	 	1.64	 	1.81	 	2.07	 	2.27	 	2.46	 	2.71	 	2.92	 	3.17	 	50
	36	 	0.45	 	0.54	 	0.67	 	0.85	 	1.04	 	1.23	 	1.43	 	1.63	 	1.81	 	2.00	 	2.23	 	2.43	 	2.64	 	2.92	 	3.16	 	3.43	 	51
	37	 	0.48	 	0.58	 	0.71	 	0.92	 	1.13	 	1.35	 	1.56	 	1.77	 	1.98	 	2.19	 	2.39	 	2.60	 	2.82	 	3.15	 	3.42	 	3.71	 	52
	38	 	0.51	 	0.64	 	0.80	 	1.04	 	1.26	 	1.49	 	1.70	 	1.92	 	2.14	 	2.35	 	2.56	 	2.78	 	3.02	 	3.38	 	3.66	 	4.04	 	53
	39	 	0.55	 	0.72	 	0.89	 	1.16	 	1.39	 	1.63	 	1.85	 	2.08	 	2.30	 	2.52	 	2.74	 	2.98	 	3.23	 	3.62	 	3.94	 	4.40	 	54
	40	 	0.60	 	0.80	 	1.00	 	1.28	 	1.52	 	1.78	 	2.01	 	2.24	 	2.46	 	2.69	 	2.94	 	3.19	 	3.46	 	3.91	 	4.25	 	4.80	 	55
	41	 	0.65	 	0.89	 	1.10	 	1.41	 	1.66	 	1.94	 	2.17	 	2.41	 	2.63	 	2.89	 	3.15	 	3.42	 	3.72	 	4.23	 	4.58	 	5.23	 	56
	42	 	0.70	 	0.98	 	1.20	 	1.54	 	1.80	 	2.10	 	2.33	 	2.58	 	2.83	 	3.10	 	3.38	 	3.69	 	4.01	 	4.57	 	4.94	 	5.70	 	57
	43	 	0.76	 	1.05	 	1.29	 	1.63	 	1.90	 	2.20	 	2.45	 	2.74	 	3.01	 	3.31	 	3.64	 	3.98	 	4.34	 	4.94	 	5.37	 	6.22	 	58
	44	 	0.81	 	1.12	 	1.39	 	1.71	 	2.00	 	2.30	 	2.59	 	2.90	 	3.21	 	3.55	 	3.92	 	4.30	 	4.69	 	5.37	 	5.85	 	6.78	 	59
	45	 	0.86	 	1.19	 	1.48	 	1.79	 	2.10	 	2.42	 	2.73	 	3.07	 	3.43	 	3.82	 	4.23	 	4.64	 	5.07	 	5.83	 	6.36	 	7.37	 	60
	46	 	0.91	 	1.26	 	1.58	 	1.86	 	2.22	 	2.53	 	2.88	 	3.28	 	3.67	 	4.11	 	4.55	 	5.01	 	5.49	 	6.32	 	6.89	 	8.00	 	61
	47	 	0.96	 	1.33	 	1.68	 	1.95	 	2.34	 	2.65	 	3.06	 	3.49	 	3.94	 	4.41	 	4.90	 	5.41	 	5.94	 	6.84	 	7.46	 	8.67	 	62
	48	 	1.00	 	1.39	 	1.76	 	2.04	 	2.45	 	2.82	 	3.27	 	3.76	 	4.20	 	4.70	 	5.23	 	5.77	 	6.31	 	7.25	 	7.88	 	9.38	 	63
	49	 	1.05	 	1.46	 	1.83	 	2.13	 	2.58	 	3.00	 	3.50	 	4.04	 	4.48	 	5.02	 	5.57	 	6.13	 	6.70	 	7.67	 	8.30	 	10.15	 	64
	50	 	1.10	 	1.53	 	1.91	 	2.24	 	2.72	 	3.20	 	3.74	 	4.35	 	4.78	 	5.34	 	5.92	 	6.50	 	7.09	 	8.09	 	8.75	 	10.99	 	65
	51	 	1.15	 	1.60	 	2.01	 	2.35	 	2.86	 	3.40	 	4.00	 	4.68	 	5.09	 	5.67	 	6.28	 	6.88	 	7.49	 	8.53	 	9.21	 	11.91	 	66
	52	 	1.20	 	1.68	 	2.10	 	2.47	 	3.01	 	3.61	 	4.28	 	5.03	 	5.40	 	6.01	 	6.64	 	7.27	 	7.91	 	9.00	 	9.70	 	12.92	 	67
	53	 	1.26	 	1.76	 	2.22	 	2.65	 	3.23	 	3.87	 	4.57	 	5.34	 	5.77	 	6.41	 	7.05	 	7.75	 	8.47	 	9.68	 	10.50	 	14.03	 	68
	54	 	1.32	 	1.85	 	2.35	 	2.84	 	3.47	 	4.15	 	4.87	 	5.65	 	6.15	 	6.81	 	7.49	 	8.26	 	9.07	 	10.43	 	11.37	 	15.25	 	69
	55	 	1.38	 	1.93	 	2.48	 	3.05	 	3.72	 	4.43	 	5.18	 	5.97	 	6.55	 	7.25	 	7.96	 	8.81	 	9.72	 	11.24	 	12.33	 	16.63	 	70
	56	 	1.45	 	2.02	 	2.62	 	3.27	 	3.97	 	4.72	 	5.50	 	6.29	 	6.97	 	7.71	 	8.46	 	9.40	 	10.43	 	12.13	 	13.41	 	18.21	 	71
	57	 	1.51	 	2.11	 	2.76	 	3.49	 	4.24	 	5.02	 	5.82	 	6.62	 	7.42	 	8.21	 	9.00	 	10.04	 	11.20	 	13.13	 	14.65	 	20.04	 	72
	58	 	1.63	 	2.29	 	2.99	 	3.76	 	4.54	 	5.34	 	6.18	 	7.03	 	7.88	 	8.71	 	9.76	 	10.86	 	12.11	 	14.18	 	15.84	 	22.17	 	73
	59	 	1.75	 	2.48	 	3.24	 	4.04	 	4.85	 	5.69	 	6.57	 	7.46	 	8.36	 	9.25	 	10.60	 	11.79	 	13.14	 	15.40	 	17.21	 	24.65	 	74
	60	 	1.88	 	2.68	 	3.50	 	4.34	 	5.18	 	6.06	 	6.98	 	7.93	 	8.89	 	9.83	 	11.55	 	12.85	 	14.33	 	16.80	 	18.78	 	27.53	 	75
	61	 	2.01	 	2.90	 	3.77	 	4.66	 	5.54	 	6.45	 	7.42	 	8.43	 	9.45	 	10.47	 	12.64	 	14.08	 	15.70	 	18.42	 	20.59	 	30.86	 	76
	62	 	2.15	 	3.12	 	4.07	 	5.01	 	5.93	 	6.88	 	7.90	 	8.97	 	10.07	 	11.19	 	13.90	 	15.50	 	17.30	 	20.28	 	22.64	 	34.96	 	77
	63	 	2.27	 	3.27	 	4.26	 	5.24	 	6.21	 	7.22	 	8.30	 	9.49	 	10.75	 	12.11	 	15.04	 	16.80	 	18.79	 	22.08	 	24.73	 	39.07	 	78
	64	 	2.40	 	3.43	 	4.46	 	5.48	 	6.50	 	7.57	 	8.75	 	10.07	 	11.53	 	13.17	 	16.34	 	18.28	 	20.47	 	20.49	 	27.05	 	44.00	 	79
	65	 	2.59	 	3.59	 	4.66	 	5.73	 	6.80	 	7.95	 	9.24	 	10.72	 	12.43	 	14.38	 	17.83	 	19.94	 	22.34	 	26.30	 	29.55	 	49.48	 	80
	66	 	2.67	 	3.76	 	4.88	 	5.99	 	7.12	 	8.37	 	9.80	 	11.47	 	13.45	 	15.78	 	19.51	 	21.81	 	24.41	 	28.69	 	32.20	 	55.51	 	81
	67	 	2.82	 	3.94	 	5.10	 	6.27	 	7.48	 	8.85	 	10.43	 	12.32	 	14.61	 	17.37	 	21.40	 	23.87	 	26.64	 	31.21	 	34.98	 	62.09	 	82
	68	 	3.06	 	4.28	 	5.56	 	6.87	 	8.23	 	9.79	 	11.60	 	13.76	 	16.38	 	19.53	 	23.87	 	26.64	 	29.96	 	34.98	 	39.13	 	69.22	 	83
	69	 	3.33	 	4.67	 	6.09	 	7.56	 	9.11	 	10.89	 	12.95	 	15.42	 	18A1	 	21.99	 	26.64	 	29.96	 	33.61	 	39.13	 	43.62	 	76.90	 	84

 

    	 	C-2-2	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	70	 	3.63	 	5.11	 	6.70	 	8.36	 	10.13	 	12.16	 	14.52	 	17.34	 	20.73	 	24.77	 	29.96	 	33.61	 	37.59	 	43.62	 	48.46	 	85.18	 	85
	71	 	5.01	 	7.70	 	10.44	 	13.52	 	16.24	 	19.36	 	24.15	 	28.95	 	35.02	 	41.07	 	47.96	 	55.76	 	64.57	 	74.44	 	85.13	 	93.91	 	86
	72	 	6.01	 	8.87	 	12.38	 	15.87	 	19.26	 	23.05	 	28.68	 	34.23	 	41.07	 	47.96	 	55.76	 	64.51	 	74.32	 	85.13	 	93.91	 	103.24	 	87
	73	 	7.20	 	10.35	 	14.68	 	18.73	 	22.84	 	27.42	 	33.97	 	40.33	 	47.96	 	55.76	 	64.51	 	74.28	 	85.13	 	93.91	 	103.24	 	113.12	 	88
	74	 	8.63	 	12.39	 	17.32	 	22.10	 	27.06	 	32.52	 	40.08	 	47.30	 	55.76	 	64.51	 	74.28	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	89
	75	 	10.32	 	14.81	 	20.43	 	26.07	 	31.97	 	38.41	 	47.07	 	55.20	 	64.51	 	74.28	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	90
	76	 	12.34	 	17.69	 	24.09	 	30.69	 	37.65	 	45.16	 	55.01	 	64.10	 	74.28	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	91
	77	 	14.74	 	20.71	 	28.36	 	36.01	 	44.13	 	52.83	 	63.96	 	74.06	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	92
	78	 	17.58	 	24.64	 	33.26	 	42.08	 	51.48	 	61.48	 	73.98	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	93
	79	 	21.12	 	29.19	 	38.86	 	48.95	 	59.76	 	71.17	 	85.13	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	94
	80	 	25.23	 	32.42	 	45.19	 	56.66	 	69.02	 	81.96	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	95
	81	 	29.98	 	40.36	 	52.30	 	65.27	 	79.31	 	93.91	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	211.96	 	96
	82	 	35.39	 	47.07	 	60.24	 	74.83	 	90.70	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	211.96	 	226.79	 	97
	83	 	41.53	 	54.60	 	69.05	 	85.39	 	103.24	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	211.96	 	226.79	 	242.17	 	98
	84	 	49.99	 	63.00	 	78.78	 	97.00	 	113.12	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	211.96	 	226.79	 	242.17	 	258.10	 	99
	85	 	59.59	 	74.19	 	89.47	 	109.70	 	123.55	 	134.53	 	146.06	 	158.14	 	170.77	 	183.95	 	197.68	 	211.96	 	226.79	 	242.17	 	258.10	 	274.58	 	100

 

    	 	C-2-3	 

     

    

 

SCHEDULE
D

US 75-80, BASIC SELECT & ULTIMATE, AGGREGATE AGE LAST BIRTHDAY, GENDER DISTINCT MORTALITY TABLES

 

	PART 1	-	MALE RATES

 

     

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Last Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	0	 	1.12	 	0.70	 	0.47	 	0.37	 	0.32	 	0.31	 	0.28	 	0.27	 	0.27	 	0.28	 	0.33	 	0.38	 	0.46	 	0.66	 	0.85	 	0.85	 	15
	1	 	0.46	 	0.43	 	0.38	 	0.27	 	0.23	 	0.23	 	0.23	 	0.25	 	0.28	 	0.33	 	0.38	 	0.46	 	0.66	 	0.80	 	1.08	 	1.08	 	16
	2	 	0.34	 	0.35	 	0.31	 	0.23	 	0.23	 	0.23	 	0.25	 	0.28	 	0.33	 	0.38	 	0.46	 	0.62	 	0.80	 	1.04	 	1.18	 	1.18	 	17
	3	 	0.33	 	0.28	 	0.25	 	0.23	 	0.21	 	0.25	 	0.28	 	0.33	 	0.38	 	0.46	 	0.61	 	0.74	 	1.04	 	1.17	 	1.27	 	1.27	 	18
	4	 	0.28	 	0.24	 	0.23	 	0.21	 	0.25	 	0.28	 	0.33	 	0.38	 	0.44	 	0.61	 	0.74	 	0.95	 	1.11	 	1.26	 	1.34	 	1.34	 	19
	5	 	0.23	 	0.23	 	0.23	 	0.25	 	0.28	 	0.33	 	0.38	 	0.43	 	0.61	 	0.74	 	0.95	 	1.08	 	1.17	 	1.32	 	1.39	 	1.39	 	20
	6	 	0.22	 	0.22	 	0.21	 	0.28	 	0.33	 	0.38	 	0.43	 	0.58	 	0.74	 	0.95	 	1.08	 	1.15	 	1.21	 	1.36	 	1.41	 	1.41	 	21
	7	 	0.19	 	0.21	 	0.25	 	0.33	 	0.38	 	0.43	 	0.57	 	0.72	 	0.91	 	1.08	 	1.15	 	1.20	 	1.23	 	1.38	 	1.41	 	1.41	 	22
	8	 	0.19	 	0.21	 	0.26	 	0.37	 	0.43	 	0.57	 	0.72	 	0.91	 	1.06	 	1.15	 	1.20	 	1.23	 	1.28	 	1.37	 	1.39	 	1.39	 	23
	9	 	0.20	 	0.23	 	0.30	 	0.43	 	0.57	 	0.72	 	0.91	 	1.06	 	1.14	 	1.20	 	1.23	 	1.28	 	1.32	 	1.34	 	1.36	 	1.36	 	24
	10	 	0.21	 	0.27	 	0.34	 	0.57	 	0.72	 	0.91	 	1.06	 	1.14	 	1.19	 	1.23	 	1.28	 	1.32	 	1.33	 	1.30	 	1.32	 	1.32	 	25
	11	 	0.26	 	0.32	 	0.40	 	0.72	 	0.91	 	1.06	 	1.14	 	1.19	 	1.23	 	1.28	 	1.32	 	1.33	 	1.28	 	1.25	 	1.27	 	1.27	 	26
	12	 	0.31	 	0.40	 	0.57	 	0.90	 	1.06	 	1.14	 	1.19	 	1.22	 	1.28	 	1.32	 	1.33	 	1.28	 	1.23	 	1.19	 	1.22	 	1.22	 	27
	13	 	0.38	 	0.57	 	0.72	 	1.02	 	1.12	 	1.18	 	1.21	 	1.22	 	1.26	 	1.28	 	1.28	 	1.23	 	1.18	 	1.15	 	1.19	 	1.19	 	28
	14	 	0.55	 	0.72	 	0.90	 	1.08	 	1.16	 	1.20	 	1.21	 	1.20	 	1.22	 	1.22	 	1.22	 	1.17	 	1.14	 	1.13	 	1.16	 	1.16	 	29
	15	 	0.72	 	0.90	 	1.02	 	1.13	 	1.17	 	1.20	 	1.19	 	1.17	 	1.17	 	1.16	 	1.16	 	1.12	 	1.11	 	1.11	 	1.13	 	1.13	 	30
	16	 	0.90	 	1.02	 	1.08	 	1.17	 	1.17	 	1.18	 	1.15	 	1.13	 	1.11	 	1.10	 	1.09	 	1.08	 	1.09	 	1.09	 	1.12	 	1.12	 	31
	17	 	1.02	 	1.08	 	1.13	 	1.16	 	1.14	 	1.14	 	1.11	 	1.08	 	1.05	 	1.03	 	1.05	 	1.04	 	1.06	 	1.09	 	1.12	 	1.12	 	32
	18	 	1.01	 	1.06	 	1.09	 	1.10	 	1.07	 	1.07	 	1.04	 	1.01	 	0.99	 	0.99	 	1.01	 	1.00	 	1.04	 	1.09	 	1.13	 	1.13	 	33
	19	 	0.97	 	1.01	 	1.02	 	1.02	 	1.00	 	0.99	 	0.96	 	0.95	 	0.95	 	0.96	 	0.97	 	0.98	 	1.03	 	1.09	 	1.16	 	1.16	 	34
	20	 	0.91	 	0.94	 	0.94	 	0.94	 	0.93	 	0.91	 	0.89	 	0.90	 	0.91	 	0.93	 	0.95	 	0.98	 	1.03	 	1.12	 	1.20	 	1.20	 	35
	21	 	0.83	 	0.85	 	0.85	 	0.86	 	0.85	 	0.83	 	0.86	 	0.86	 	0.87	 	0.91	 	0.94	 	0.97	 	1.05	 	1.16	 	1.25	 	1.25	 	36
	22	 	0.73	 	0.75	 	0.75	 	0.77	 	0.77	 	0.77	 	0.78	 	0.81	 	0.85	 	0.90	 	0.94	 	0.99	 	1.08	 	1.20	 	1.32	 	1.32	 	37
	23	 	0.73	 	0.74	 	0.74	 	0.76	 	0.77	 	0.77	 	0.78	 	0.82	 	0.87	 	0.92	 	0.98	 	1.04	 	1.14	 	1.27	 	1.41	 	1.41	 	38
	24	 	0.73	 	0.73	 	0.73	 	0.76	 	0.77	 	0.78	 	0.80	 	0.84	 	0.90	 	0.96	 	1.03	 	1.10	 	1.22	 	1.36	 	1.51	 	1.51	 	39
	25	 	0.71	 	0.71	 	0.72	 	0.75	 	0.77	 	0.80	 	0.82	 	0.87	 	0.95	 	1.01	 	1.09	 	1.18	 	1.33	 	1.47	 	1.63	 	1.63	 	40
	26	 	0.70	 	0.69	 	0.71	 	0.75	 	0.78	 	0.82	 	0.85	 	0.92	 	1.00	 	1.07	 	1.16	 	1.29	 	1.44	 	1.59	 	1.79	 	1.79	 	41
	27	 	0.68	 	0.68	 	0.71	 	0.76	 	0.80	 	0.85	 	0.90	 	0.97	 	1.07	 	1.15	 	1.26	 	1.40	 	1.58	 	1.75	 	1.97	 	1.97	 	42
	28	 	0.66	 	0.68	 	0.72	 	0.80	 	0.84	 	0.90	 	0.97	 	1.06	 	1.15	 	1.26	 	1.38	 	1.53	 	1.74	 	1.94	 	2.19	 	2.19	 	43
	29	 	0.65	 	0.68	 	0.75	 	0.84	 	0.90	 	0.97	 	1.06	 	1.15	 	1.26	 	1.38	 	1.52	 	1.70	 	1.94	 	2.17	 	2.45	 	2.45	 	44
	30	 	0.63	 	0.68	 	0.78	 	0.90	 	0.97	 	1.06	 	1.15	 	1.25	 	1.38	 	1.52	 	1.70	 	1.94	 	2.17	 	2.42	 	2.74	 	2.74	 	45
	31	 	0.63	 	0.70	 	0.82	 	0.97	 	1.06	 	1.15	 	1.25	 	1.38	 	1.52	 	1.70	 	1.94	 	2.17	 	2.42	 	2.71	 	3.07	 	3.07	 	46
	32	 	0.63	 	0.72	 	0.87	 	1.06	 	1.15	 	1.25	 	1.38	 	1.51	 	1.70	 	1.94	 	2.17	 	2.42	 	2.71	 	3.03	 	3.43	 	3.43	 	47
	33	 	0.63	 	0.74	 	0.91	 	1.14	 	1.25	 	1.36	 	1.50	 	1.67	 	1.87	 	2.14	 	2.41	 	2.69	 	3.03	 	3.39	 	3.82	 	3.82	 	48
	34	 	0.64	 	0.76	 	0.96	 	1.24	 	1.36	 	1.49	 	1.66	 	1.86	 	2.10	 	2.37	 	2.67	 	3.00	 	3.38	 	3.77	 	4.24	 	4.24	 	49

 

    	 	D-1-1	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Last Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	35	 	0.65	 	0.79	 	1.03	 	1.20	 	1.35	 	1.49	 	1.66	 	1.86	 	2.10	 	2.33	 	2.63	 	2.96	 	3.34	 	3.75	 	4.19	 	4.69	 	50
	36	 	0.67	 	0.83	 	1.12	 	1.31	 	1.49	 	1.66	 	1.86	 	2.10	 	2.33	 	2.63	 	2.92	 	3.28	 	3.70	 	4.16	 	4.63	 	5.18	 	51
	37	 	0.70	 	0.88	 	1.21	 	1.44	 	1.66	 	1.86	 	2.10	 	2.33	 	2.63	 	2.92	 	3.23	 	3.62	 	4.09	 	4.59	 	5.12	 	5.72	 	52
	38	 	0.74	 	0.94	 	1.29	 	1.55	 	1.78	 	2.01	 	2.27	 	2.52	 	2.84	 	3.16	 	3.52	 	3.96	 	4.49	 	5.06	 	5.64	 	6.31	 	53
	39	 	0.78	 	1.00	 	1.40	 	1.68	 	1.93	 	2.18	 	2.45	 	2.72	 	3.06	 	3.41	 	3.82	 	4.31	 	4.92	 	5.37	 	6.22	 	6.94	 	54
	40	 	0.83	 	1.09	 	1.53	 	1.83	 	2.11	 	2.36	 	2.65	 	2.93	 	3.27	 	3.67	 	4.12	 	4.69	 	5.39	 	6.13	 	6.82	 	7.64	 	55
	41	 	0.89	 	1.20	 	1.68	 	2.01	 	2.29	 	2.56	 	2.86	 	3.14	 	3.49	 	3.92	 	4.45	 	5.09	 	5.90	 	6.72	 	7.50	 	8.42	 	56
	42	 	0.97	 	1.32	 	1.86	 	2.21	 	2.50	 	2.77	 	3.06	 	3.35	 	3.70	 	4.18	 	4.79	 	5.53	 	6.44	 	7.38	 	8.25	 	9.28	 	57
	43	 	1.05	 	1.46	 	2.02	 	2.41	 	2.74	 	3.04	 	3.35	 	3.66	 	4.03	 	4.55	 	5.21	 	5.99	 	6.96	 	7.97	 	8.93	 	10.24	 	58
	44	 	1.14	 	1.62	 	2.20	 	2.63	 	2.98	 	3.32	 	3.66	 	3.98	 	4.39	 	4.94	 	5.66	 	6.30	 	7.54	 	8.60	 	9.67	 	11.32	 	59
	45	 	1.23	 	1.81	 	2.39	 	2.85	 	3.24	 	3.61	 	3.98	 	4.34	 	4.77	 	5.35	 	6.15	 	7.06	 	8.16	 	9.30	 	10.49	 	12..53	 	60
	46	 	1.33	 	2.00	 	2.58	 	3.08	 	3.51	 	3.92	 	4.34	 	4.73	 	5.17	 	5.80	 	6.68	 	7.66	 	8.83	 	10.06	 	11.39	 	13.87	 	61
	47	 	1.44	 	2.21	 	2.77	 	3.31	 	3.79	 	4.26	 	4.73	 	5.12	 	5.61	 	6.29	 	7.26	 	8.32	 	9.58	 	10.89	 	12.36	 	15.32	 	62
	48	 	1.55	 	2.32	 	2.90	 	3.48	 	4.02	 	4.53	 	5.06	 	5.54	 	6.13	 	6.89	 	8.04	 	9.23	 	10.57	 	11.94	 	13.41	 	16.89	 	63
	49	 	1.66	 	2.42	 	3.03	 	3.64	 	4.24	 	4.81	 	5.41	 	5.99	 	6.69	 	7.55	 	8.91	 	10.26	 	11.67	 	13.06	 	14.53	 	18.61	 	64
	50	 	1.77	 	2.51	 	3.15	 	3.80	 	4.46	 	5.09	 	5.78	 	6.48	 	7.31	 	8.30	 	9.90	 	11.41	 	12.85	 	14.25	 	15.72	 	20.49	 	65
	51	 	1.88	 	2.59	 	3.26	 	3.94	 	4.69	 	5.39	 	6.18	 	7.02	 	8.01	 	9.13	 	10.99	 	12.65	 	14.12	 	15.54	 	16.98	 	22.56	 	66
	52	 	1.99	 	2.66	 	3.35	 	4.08	 	4.92	 	5.70	 	6.60	 	7.61	 	8.78	 	10.04	 	12.18	 	14.00	 	15.51	 	16.94	 	18.35	 	24.85	 	67
	53	 	2.15	 	2.89	 	3.66	 	4.47	 	5.38	 	6.22	 	7.22	 	8.32	 	9.57	 	10.98	 	13.29	 	15.31	 	16.94	 	18.35	 	20.53	 	27.37	 	68
	54	 	2.31	 	3.13	 	4.00	 	4.90	 	5.89	 	6.81	 	7.90	 	9.09	 	10.42	 	11.98	 	14.48	 	16.73	 	18.35	 	20.53	 	22.96	 	30.13	 	69
	55	 	2.49	 	3.40	 	4.37	 	5.37	 	6.47	 	7.46	 	8.65	 	9.91	 	11.31	 	13.06	 	15.77	 	18.29	 	20.53	 	22.85	 	25.67	 	33.13	 	70
	56	 	2.68	 	3.70	 	4.78	 	5.91	 	7.10	 	8.16	 	9.44	 	10.78	 	12.26	 	14.23	 	17.18	 	19.99	 	22.70	 	25.23	 	28.65	 	36.34	 	71
	57	 	2.89	 	4.02	 	5.24	 	6.50	 	7.80	 	8.92	 	10.29	 	11.72	 	13.29	 	15.50	 	18.71	 	21.85	 	24.96	 	27.83	 	31.89	 	39.80	 	72
	58	 	3.05	 	4.30	 	5.78	 	7.12	 	8.58	 	9.62	 	11.05	 	12.58	 	14.24	 	16.56	 	19.88	 	23.10	 	26.39	 	29.47	 	33.93	 	43.57	 	73
	59	 	3.22	 	4.60	 	6.37	 	7.78	 	9.42	 	10.36	 	11.84	 	13.48	 	15.26	 	17.68	 	21.09	 	24.35	 	27.80	 	31.11	 	36.05	 	47.72	 	74
	60	 	3.40	 	4.91	 	7.01	 	8.49	 	10.34	 	11.15	 	12.69	 	14.45	 	16.34	 	18.85	 	22.31	 	25.55	 	29.18	 	32.79	 	38.29	 	52.31	 	75
	61	 	3.57	 	5.22	 	7.69	 	9.25	 	11.15	 	12.44	 	13.59	 	15.48	 	17.47	 	20.04	 	23.51	 	26.72	 	30.56	 	34.52	 	40.66	 	57.37	 	76
	62	 	3.74	 	5.54	 	8.44	 	10.07	 	12.44	 	12.89	 	14.54	 	16.56	 	18.64	 	21.24	 	24.70	 	27.87	 	31.96	 	36.31	 	43.15	 	62.94	 	77
	63	 	4.15	 	6.18	 	9.21	 	11.19	 	12.89	 	14.50	 	16.42	 	18.63	 	21.03	 	23.56	 	27.15	 	30.60	 	35.16	 	40.29	 	47.22	 	69.02	 	78
	64	 	4.59	 	6.88	 	10.04	 	12.43	 	14.50	 	16.29	 	18.52	 	20.91	 	23.56	 	26.17	 	29.85	 	33.67	 	38.70	 	44.72	 	51.64	 	75.60	 	79
	65	 	5.08	 	7.66	 	10.96	 	13.82	 	16.29	 	18.27	 	20.82	 	23.41	 	26.17	 	29.29	 	33.67	 	36.95	 	42.60	 	49.60	 	56.42	 	82.69	 	80
	66	 	5.63	 	8.53	 	11.96	 	15.34	 	18.27	 	20.62	 	23.35	 	26.17	 	29.29	 	33.67	 	36.18	 	40.63	 	46.88	 	54.95	 	61.55	 	90.24	 	81
	67	 	6.23	 	9.50	 	13.04	 	17.02	 	20.62	 	22.82	 	26.17	 	29.29	 	33.67	 	35.69	 	39.85	 	44.66	 	51.53	 	60.78	 	66.99	 	98.24	 	82
	68	 	6.86	 	10.46	 	14.34	 	18.67	 	22.58	 	24.98	 	28.66	 	32.11	 	35.69	 	39.16	 	43.70	 	48.92	 	56.36	 	66.33	 	72.93	 	106.88	 	83
	69	 	7.55	 	11.50	 	15.73	 	20.45	 	24.72	 	27.36	 	31.42	 	35.21	 	39.16	 	42.94	 	47.87	 	53.51	 	61.51	 	72.21	 	79.34	 	116.36	 	84

 

    	 	D-1-2	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Male Aggregate	Age Last Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	70	 	8.31	 	12.61	 	17.23	 	22.38	 	27.08	 	29.99	 	34.46	 	38.63	 	42.94	 	47.03	 	52.35	 	58.39	 	66.96	 	78.56	 	86.38	 	126.68	 	85
	71	 	10.47	 	15.62	 	21.23	 	26.87	 	31.79	 	37.10	 	45.06	 	52.48	 	61.52	 	70.10	 	79.36	 	89.95	 	101.57	 	114.38	 	126.68	 	137.84	 	86
	72	 	12.46	 	17.88	 	24.74	 	30.99	 	36.83	 	43.05	 	52.03	 	60.28	 	70.10	 	79.56	 	89.95	 	101.50	 	114.49	 	126.68	 	137.84	 	149.84	 	87
	73	 	14.73	 	20.79	 	28.66	 	35.72	 	42.56	 	49.78	 	59.87	 	68.99	 	79.56	 	89.95	 	101.50	 	114.47	 	126.68	 	137.84	 	149.84	 	162.59	 	88
	74	 	17.32	 	24.36	 	33.02	 	41.10	 	49.03	 	57.35	 	68.62	 	78.63	 	89.95	 	101.50	 	114.47	 	126.68	 	137.84	 	149.84	 	162.59	 	175.87	 	89
	75	 	20.30	 	28.44	 	37.98	 	47.15	 	56.29	 	65.81	 	78.31	 	89.23	 	101.50	 	114.47	 	126.68	 	137.84	 	149.84	 	162.59	 	175.87	 	18937	 	90
	76	 	23.70	 	32.76	 	43.56	 	53.93	 	64.39	 	75.18	 	88.98	 	101.03	 	114.47	 	126.68	 	137.84	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	91
	77	 	27.57	 	37.66	 	49.82	 	61.49	 	73.35	 	85.50	 	100.87	 	114.30	 	126.68	 	137.84	 	149.84	 	16239	 	175.87	 	189.57	 	203.69	 	218.23	 	92
	78	 	32.14	 	43.52	 	56.79	 	69.83	 	83.20	 	97.00	 	114.24	 	126.68	 	137.84	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	93
	79	 	37.47	 	50.08	 	64.48	 	78.99	 	94.18	 	109.95	 	126.68	 	137.84	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	94
	80	 	43.47	 	57.36	 	72.91	 	89.17	 	106.51	 	124.42	 	137.84	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	95
	81	 	50.14	 	65.39	 	82.30	 	100.60	 	120.28	 	137.84	 	149:84	 	16239	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	280.59	 	96
	82	 	57.53	 	74.35	 	92.83	 	113.35	 	135.58	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	280.59	 	297.23	 	97
	83	 	66.91	 	84.44	 	104.59	 	127.51	 	149.84	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	280.39	 	297.23	 	314.29	 	98
	84	 	78.67	 	97.04	 	117.63	 	143.14	 	162.59	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	280.59	 	297.23	 	314.29	 	331.77	 	99
	85	 	91.98	 	111.05	 	132.03	 	160.23	 	175.87	 	189.57	 	203.69	 	218.23	 	233.19	 	248.57	 	264.37	 	280.59	 	297.23	 	314.29	 	331.77	 	349.67	 	100

 

    	 	D-1-3	 

     

    

 

SCHEDULE
D

 

US 75-80, BASIC SELECT & ULTIMATE,
AGGREGATE AGE LAST BIRTHDAY,

GENDER DISTINCT MORTALITY TABLES

 

	PART 2	-	FEMALE RATES

 

     

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	0	 	0.84	 	0.33	 	0.30	 	0.27	 	0.24	 	0.22	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	15
	1	 	0.32	 	0.29	 	0.26	 	0.23	 	0.22	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.42	 	16
	2	 	0.27	 	0.26	 	0.23	 	0.22	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.42	 	0.46	 	17
	3	 	0.23	 	0.23	 	0.22	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.48	 	18
	4	 	0.21	 	0.21	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.48	 	0.50	 	19
	5	 	0.20	 	0.20	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.48	 	0.49	 	0.52	 	20
	6	 	0.18	 	0.18	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.48	 	0.49	 	0.51	 	0.53	 	21
	7	 	0.17	 	0.19	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.48	 	0.49	 	0.51	 	0.52	 	0.53	 	22
	8	 	0.17	 	0.19	 	0.21	 	0.23	 	0.26	 	0.29	 	0.34	 	0.38	 	0.41	 	0.45	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	23
	9	 	0.17	 	0.21	 	0.23	 	0.25	 	0.28	 	0.33	 	0.38	 	0.41	 	0.45	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	24
	10	 	0.18	 	0.23	 	0.25	 	0.28	 	0.33	 	0.37	 	0.41	 	0.45	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	25
	11	 	0.18	 	0.25	 	0.28	 	0.33	 	0.37	 	0.41	 	0.45	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.53	 	26
	12	 	0.20	 	0.28	 	0.33	 	0.36	 	0.40	 	0.44	 	0.47	 	0.49	 	0.51	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	0.53	 	27
	13	 	0.22	 	0.32	 	0.35	 	0.38	 	0.42	 	0.44	 	0.47	 	0.49	 	0.52	 	0.52	 	0.53	 	0.53	 	0.53	 	0.53	 	0.54	 	0.54	 	28
	14	 	0.26	 	0.34	 	0.38	 	0.40	 	0.42	 	0.45	 	0.47	 	0.49	 	0.52	 	0.52	 	0.53	 	0.53	 	0.53	 	0.54	 	0.54	 	0.55	 	29
	15	 	0.30	 	0.36	 	0.39	 	0.40	 	0.42	 	0.45	 	0.47	 	0.47	 	0.52	 	0.53	 	0.53	 	0.53	 	0.34	 	0.54	 	0.56	 	0.57	 	30
	16	 	0.33	 	0.37	 	0.39	 	0.40	 	0.42	 	0.44	 	0.45	 	0.46	 	0.32	 	0.53	 	0.53	 	0.54	 	0.54	 	0.56	 	0.57	 	0.60	 	31
	17	 	0.36	 	0.37	 	0.39	 	0.40	 	0.41	 	0.42	 	0.43	 	0.44	 	0.52	 	0.53	 	0.54	 	0.54	 	0.56	 	0.57	 	0.61	 	0.63	 	32
	18	 	0.36	 	0.37	 	0.40	 	0.40	 	0.41	 	0.42	 	0.43	 	0.44	 	0.51	 	0.52	 	0.54	 	0.55	 	0.57	 	0.60	 	0.64	 	0.68	 	33
	19	 	0.36	 	0.37	 	0.40	 	0.40	 	0.41	 	0.42	 	0.43	 	0.45	 	0.49	 	0.51	 	0.55	 	0.57	 	0.60	 	0.64	 	0.69	 	0.74	 	34
	20	 	0.35	 	0.37	 	0.39	 	0.40	 	0.41	 	0.42	 	0.44	 	0.45	 	0.48	 	0.51	 	0.57	 	0.60	 	0.64	 	0.69	 	0.75	 	0.81	 	35
	21	 	0.34	 	0.35	 	0.38	 	0.39	 	0.41	 	0.42	 	0.44	 	0.46	 	0.48	 	0.52	 	0.60	 	0.64	 	0.69	 	0.75	 	0.82	 	0.89	 	36
	22	 	0.32	 	0.34	 	0.37	 	0.39	 	0.41	 	0.42	 	0.45	 	0.47	 	0.48	 	0.53	 	0.64	 	0.69	 	0.75	 	0.82	 	0.90	 	0.98	 	37
	23	 	0.32	 	0.34	 	0.38	 	0.40	 	0.42	 	0.44	 	0.47	 	0.48	 	0.53	 	0.58	 	0.69	 	0.75	 	0.82	 	0.90	 	1.00	 	1.09	 	38
	24	 	0.32	 	0.35	 	0.38	 	0.41	 	0.44	 	0.46	 	0.48	 	0.53	 	0.58	 	0.63	 	0.75	 	0.82	 	0.90	 	1.00	 	1.11	 	1.22	 	39
	25	 	0.31	 	0.35	 	0.39	 	0.43	 	0.46	 	0.48	 	0.53	 	0.58	 	0.63	 	0.68	 	0.82	 	0.90	 	1.00	 	1.11	 	1.23	 	1.37	 	40
	26	 	0.31	 	0.35	 	0.41	 	0.44	 	0.48	 	0.53	 	0.58	 	0.63	 	0.68	 	0.74	 	0.90	 	1.00	 	1.11	 	1.23	 	1.38	 	1.34	 	41
	27	 	0.31	 	0.36	 	0.42	 	0.47	 	0.53	 	0.58	 	0.63	 	0.68	 	0.71	 	0.82	 	1.00	 	1.11	 	1.23	 	1.38	 	1.54	 	1.71	 	42
	28	 	0.32	 	0.37	 	0.43	 	0.50	 	0.56	 	0.63	 	0.68	 	0.71	 	0.80	 	0.91	 	1.11	 	1.23	 	1.38	 	1.34	 	1.71	 	1.88	 	43
	29	 	0.33	 	0.38	 	0.46	 	0.52	 	0.60	 	0.68	 	0.71	 	0.80	 	0.91	 	1.03	 	1.23	 	1.38	 	1.54	 	1.71	 	1.88	 	2.05	 	44
	30	 	0.35	 	0.40	 	0.48	 	0.57	 	0.66	 	0.71	 	0.80	 	0.91	 	1.03	 	1.15	 	1.38	 	1.54	 	1.71	 	1.88	 	2.05	 	2.24	 	45
	31	 	0.37	 	0.42	 	0.52	 	0.62	 	0.71	 	0.80	 	0.91	 	1.03	 	1.15	 	1.27	 	1.54	 	1.71	 	1.88	 	2.05	 	2.24	 	2.43	 	46
	32	 	0.39	 	0.45	 	0.56	 	0.68	 	0.80	 	0.91	 	1.03	 	1.15	 	1.27	 	1.40	 	1.70	 	1.87	 	2.05	 	2.24	 	2.44	 	2.62	 	47
	33	 	0.41	 	0.48	 	0.59	 	0.73	 	0.86	 	0.99	 	1.14	 	1.27	 	1.40	 	1.56	 	1.85	 	2.02	 	2.22	 	2.43	 	2.62	 	2.83	 	48
	34	 	0.43	 	0.51	 	0.63	 	0.77	 	0.93	 	1.09	 	1.25	 	1.40	 	1.56	 	1.73	 	2.00	 	2.19	 	2.39	 	2.62	 	2.83	 	3.05	 	49

 

 

    	 	D-2-1	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	35	 	0.45	 	0.54	 	0.66	 	0.83	 	1.01	 	1.20	 	1.39	 	1.56	 	1.73	 	1.90	 	2.17	 	2.36	 	2.36	 	2.82	 	3.05	 	3.30	 	50
	36	 	0.47	 	0.58	 	0.71	 	0.90	 	1.10	 	1.32	 	1.52	 	1.71	 	1.90	 	2.09	 	2.33	 	2.53	 	2.75	 	3.04	 	3.30	 	3.57	 	5I
	37	 	0.50	 	0.62	 	0.76	 	0.98	 	1.20	 	1.43	 	1.64	 	1.85	 	2.07	 	2.28	 	2.49	 	2.71	 	2.94	 	3.29	 	3.57	 	3.88	 	52
	38	 	0.54	 	0.69	 	0:85	 	1.10	 	1.33	 	1.57	 	1.78	 	2.01	 	2.23	 	2.44	 	2.67	 	2.89	 	3.15	 	3.53	 	3.84	 	4.22	 	53
	39	 	0.58	 	0.76	 	0.95	 	1.22	 	1.45	 	1.70	 	1.93	 	2.17	 	2.39	 	2.62	 	2.85	 	3.10	 	3.37	 	3.80	 	4.13	 	4.60	 	54
	40	 	0.63	 	0.85	 	1.05	 	1.33	 	1.58	 	1.86	 	2.08	 	2.32	 	2.56	 	2.80	 	3.06	 	3.33	 	3.62	 	4.10	 	4.46	 	5.02	 	55
	41	 	0.68	 	0.94	 	1.15	 	1.45	 	1.71	 	2.01	 	2.23	 	2.49	 	2.74	 	3.01	 	3.28	 	3.58	 	3.90	 	4.44	 	4.81	 	5.47	 	56
	42	 	0.73	 	1.02	 	1.25	 	1.58	 	1.85	 	2.16	 	2.40	 	2.67	 	2.94	 	3.23	 	3.53	 	3.86	 	4.20	 	4.80	 	5.19	 	5.96	 	57
	43	 	0.78	 	1.09	 	1.35	 	1.67	 	1.95	 	2.27	 	2.53	 	2.83	 	1.13	 	3.46	 	3.79	 	4.16	 	4.54	 	5.19	 	5.62	 	6.50	 	58
	44	 	0.83	 	1.16	 	1.44	 	1.74	 	2.26	 	2.37	 	2.67	 	3.01	 	3.34	 	3.70	 	4.08	 	4.49	 	4.89	 	5.61	 	6.09	 	7.08	 	59
	45	 	0.89	 	1.23	 	1.53	 	1.83	 	2.16	 	2.49	 	2.83	 	3.20	 	3.57	 	3.97	 	4.39	 	4.83	 	5.28	 	6.07	 	6.60	 	7.69	 	60
	46	 	0.93	 	1.30	 	1.62	 	1.91	 	2.28	 	2.61	 	3.00	 	3.41	 	3.82	 	4.26	 	4.72	 	5.20	 	5.70	 	6.55	 	7.12	 	8.34	 	61
	47	 	0.98	 	1.37	 	1.72	 	2.00	 	2.41	 	2.75	 	3.18	 	3.64	 	4.09	 	4.57	 	5.07	 	5.60	 	6.14	 	7.06	 	7.68	 	9.03	 	62
	48	 	1.03	 	1.43	 	1.80	 	2.10	 	2.54	 	2.92	 	3.40	 	3.91	 	4.36	 	4.87	 	5.41	 	5.97	 	6.53	 	7.50	 	8.14	 	9.77	 	63
	49	 	1.07	 	1.50	 	1.88	 	2.21	 	2.68	 	3.11	 	3.64	 	4.20	 	4.65	 	5.20	 	5.77	 	6.35	 	6.94	 	7.94	 	8.61	 	10.57	 	64
	50	 	1.12	 	1.56	 	1.97	 	2.32	 	2.82	 	3.32	 	3.89	 	4.51	 	4.96	 	5.54	 	6.13	 	6.74	 	7.36	 	8.41	 	9.10	 	11.45	 	65
	51	 	1.17	 	1.64	 	2.07	 	2.44	 	2.98	 	3.53	 	4.15	 	4.84	 	5.28	 	5.88	 	6.50	 	7.14	 	7.79	 	8.89	 	9.63	 	12.42	 	66
	52	 	1.23	 	1.72	 	2.17	 	2.57	 	3.13	 	3.75	 	4.43	 	5.19	 	5.60	 	6.23	 	6.88	 	7.55	 	8.24	 	9.41	 	10.20	 	13.48	 	67
	53	 	1.29	 	1.81	 	2.30	 	2.76	 	3.36	 	4.02	 	4.73	 	5.51	 	5.98	 	6.63	 	7.33	 	8.06	 	8.84	 	10.14	 	11.03	 	14.64	 	68
	54	 	1.36	 	1.91	 	2.44	 	2.96	 	3.61	 	4.31	 	5.04	 	5.83	 	6.37	 	7.06	 	7.81	 	8.62	 	9.49	 	10.93	 	11.94	 	15.94	 	69
	55	 	1.43	 	2.01	 	2.58	 	3.18	 	3.87	 	4.60	 	5.36	 	6.16	 	6.78	 	7.50	 	8.33	 	9.23	 	10.20	 	11.80	 	12.96	 	17.42	 	70
	56	 	1.50	 	2.11	 	2.74	 	3.41	 	4.13	 	4.90	 	5.69	 	6.51	 	7.22	 	7.99	 	8.89	 	9.88	 	10.96	 	12.76	 	14.12	 	19.13	 	71
	57	 	1.57	 	2.21	 	2.89	 	3.64	 	4.41	 	5.21	 	6.03	 	6.86	 	7.69	 	8.51	 	9.49	 	10.59	 	11.81	 	13.85	 	15.45	 	21.11	 	72
	58	 	1.69	 	2.39	 	3.12	 	3.91	 	4.71	 	5.54	 	6.40	 	7.28	 	8.17	 	9.05	 	10.28	 	11.45	 	12.76	 	14.97	 	16.71	 	23.41	 	73
	59	 	1.82	 	2.58	 	3.36	 	4.19	 	5.02	 	5.88	 	6.79	 	7.74	 	8.69	 	9.63	 	11.16	 	12.42	 	13.25	 	16.25	 	18.16	 	26.09	 	74
	60	 	1.94	 	2.77	 	3.61	 	4.48	 	5.35	 	6.25	 	7.21	 	8.22	 	9.24	 	10.27	 	12.16	 	13.55	 	15.11	 	17.72	 	19.83	 	29.20	 	75
	61	 	2.08	 	2.98	 	3.28	 	4.80	 	5.70	 	6.65	 	7.67	 	8.74	 	9.84	 	10.99	 	13.31	 	14.84	 	16.55	 	19.42	 	21.73	 	32.78	 	76
	62	 	2.22	 	3.20	 	4.17	 	5.14	 	6.09	 	7.08	 	8.15	 	9.31	 	10.52	 	11.81	 	14.65	 	16.34	 	18.23	 	21.37	 	23.87	 	36.88	 	77
	63	 	2.36	 	3.38	 	4.40	 	5.42	 	6.42	 	7.47	 	8.61	 	9.88	 	14.24	 	12.74	 	15.86	 	17.73	 	19.83	 	23.30	 	26.11	 	41.54	 	78
	64	 	2.51	 	3.58	 	4.65	 	5.72	 	6.77	 	7.89	 	9.12	 	10.52	 	12.06	 	13.80	 	17.25	 	19.31	 	21.63	 	25.45	 	28.57	 	46.74	 	79
	65	 	2.67	 	3.79	 	4.91	 	6.03	 	7.15	 	8.35	 	9.70	 	1124	 	13.00	 	15.01	 	18.83	 	21.08	 	23.62	 	27.79	 	31.21	 	52.50	 	80
	66	 	2.84	 	4.01	 	5.19	 	6.37	 	7.57	 	8.88	 	10.36	 	12.07	 	14.06	 	16.40	 	20.61	 	23.04	 	25.79	 	30.30	 	34.00	 	58.80	 	81
	67	 	3.03	 	4.24	 	5.49	 	6.75	 	8.04	 	9.48	 	11.10	 	13.00	 	15.26	 	17.95	 	22.58	 	25.19	 	28.11	 	32.93	 	36.89	 	65.66	 	82
	68	 	3.29	 	4.62	 	6.00	 	7.41	 	8.87	 	10.51	 	12.37	 	14.55	 	17.13	 	20.20	 	25.19	 	28.11	 	31.57	 	36.88	 	41.19	 	73.06	 	83
	69	 	3.58	 	5.05	 	6.59	 	8.18	 	9.84	 	11.72	 	13.85	 	16.33	 	19.27	 	22.75	 	28.11	 	31.57	 	35.36	 	41.18	 	45.84	 	81.02	 	84

 

    	 	D-2-2	 

     

    

 

Extended Basic US 1975-80 Select and
Ultimate Automatic YRT Rates

	 	Female Aggregate	Age Nearest Birthday	 

 

	 	 	Policy Year	 	Att.
	Age	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12	 	13	 	14	 	15	 	16+	 	Age
	70	 	3.92	 	5.54	 	7.27	 	9.07	 	10.97	 	13.11	 	15.54	 	18.38	 	21.71	 	25.59	 	31.57	 	35.36	 	39.49	 	45.83	 	50.83	 	89.52	 	85
	71	 	5.51	 	8.28	 	11.4I	 	14.70	 	17.75	 	21.20	 	26.41	 	31.59	 	38.04	 	44.51	 	51.86	 	60.13	 	69.44	 	79.78	 	89.52	 	98.58	 	86
	72	 	6.61	 	9.61	 	13.53	 	17.30	 	21.05	 	25.24	 	31.32	 	37.28	 	44.51	 	51.86	 	60.13	 	69.40	 	79.72	 	89.52	 	98.58	 	108.18	 	87
	73	 	7.92	 	11.37	 	16.00	 	20.42	 	24.95	 	29.97	 	37.02	 	43.81	 	51.86	 	60.13	 	69.40	 	79.71	 	89.52	 	98.58	 	108.18	 	118.34	 	88
	74	 	9.47	 	13.60	 	18.87	 	24.09	 	29.51	 	35.47	 	43.58	 	51.25	 	60.13	 	69.40	 	79.71	 	89.52	 	98.58	 	108.18	 	118.34	 	129.04	 	89
	75	 	11.33	 	16.25	 	22.26	 	28.38	 	34.81	 	41.79	 	51.04	 	59.65	 	69.40	 	79.71	 	89.52	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	90
	76	 	13.54	 	19.20	 	26.22	 	33.35	 	40.89	 	49.00	 	59.49	 	69.08	 	79.71	 	89.52	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	91
	77	 	16.16	 	22.67	 	30.81	 	39.05	 	47.81	 	57.16	 	68.97	 	79.59	 	89.52	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	92
	78	 	1935	 	26.92	 	36.06	 	45.51	 	55.62	 	66.32	 	79.55	 	89.52	 	98.58	 	108.18	 	11834	 	129.04	 	14030	 	152.10	 	164.46	 	17736	 	93
	79	 	23.18	 	31.80	 	42.02	 	52.80	 	64.39	 	76.56	 	89.52	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	94
	80	 	27.61	 	37.39	 	48.74	 	60.97	 	74.17	 	87.93	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	204.82	 	95
	81	 	32.68	 	43.71	 	56.27	 	70.05	 	85.01	 	98.58	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	20412	 	219.38	 	96
	82	 	38.46	 	50.83	 	64.64	 	80.11	 	96.97	 	108.18	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	204.82	 	219.38	 	234.48	 	97
	83	 	45.76	 	58.80	 	73.91.	 	91.19	 	108.18	 	11834	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	204.82	 	219.38	 	234.48	 	250.14	 	98
	84	 	54.79	 	68.59	 	84.13	 	103.35	 	118.34	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	204.82	 	219.38	 	234.48	 	250.14	 	266.34	 	99
	85	 	65.01	 	79.42	 	95.33	 	116.62	 	129.04	 	140.30	 	152.10	 	164.46	 	177.36	 	190.82	 	204.82	 	219.38	 	234.48	 	250.14	 	26634	 	283.10	 	100

 

    	 	D-2-3	 

     

    

 

SCHEDULE
E

 

IN-FORCE LIST OF LEVEL TERM POLICIESExhibit 10.5

 

STANDBY
STOCK PURCHASE AGREEMENT

 

This STANDBY STOCK PURCHASE AGREEMENT (this
“Agreement”), dated as of March 8, 2018, is entered into by and among Federal Life Group, Inc., a Pennsylvania
corporation (the “Company”), Federal Life Insurance Company, an Illinois insurance company (“Federal
Life”), Federal Life Mutual Holding Company, an Illinois corporation (“FLMHC”), and Insurance Capital
Group, LLC (the “Standby Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Board of Directors of FLMHC
has adopted a Plan of Conversion (the “Plan of Conversion”) pursuant to which FLMHC will convert from a mutual
holding company to a stock holding company in accordance with Illinois law (the “Conversion”); and

 

WHEREAS, in accordance with the Plan of
Conversion, FLMHC proposes, as soon as practicable after the Registration Statement, as defined herein, becomes effective, to distribute
to Eligible Members, as defined herein, non-transferable rights (the “Rights”) to subscribe for and purchase
shares of Common Stock of the Company (the “Shares”) at a subscription price (the “Subscription Price”)
of $10.00 per share (such offering, the “Subscription Offering”); and

 

WHEREAS, contemporaneously with the Subscription
Offering, the Company will offer the Shares to a limited group of persons at the Subscription Price (the “Community Offering”);
and

 

WHEREAS, the Standby Purchaser is purchasing
from FLMHC a promissory note of FLMHC in the form of Exhibit A hereto in the principal amount of up to $2,000,000 that
will be exchanged for Common Stock of the Company upon the effective date of the Conversion at a price per share equal to the Subscription
Price (the “Exchangeable Note”); and

 

WHEREAS, the Company has requested the Standby
Purchaser to agree to purchase from the Company in the Community Offering any shares remaining after completion of the Subscription
Offering and any orders accepted in the Community Offering by persons other than the Standby Purchaser, and the Standby Purchaser
is willing to purchase Shares in the Community Offering on the terms and conditions provided herein.

 

NOW THEREFORE, in consideration of the foregoing
and the mutual covenants herein contained, and intending to be legally bound, the parties hereto hereby agree as follows:

 

Section 1. Certain Other Definitions.
The following terms used herein shall have the meanings set forth below:

 

“90-Day Limit” shall
have the meaning given to such term in Section 9(c)(i) hereof.

 

“Adjusted Stockholders’ Equity”
shall mean stockholders’ equity as determined in accordance with GAAP (excluding the fixed income component of accumulated
other comprehensive income).

 

    	 	1	 

     

    

 

“Affiliate” shall have
the meaning set forth in Rule 12b-2 under the Exchange Act and shall include Persons who become Affiliates of any Person subsequent
to the date hereof. In the case of the Standby Purchaser, its “Affiliates” shall include entities which are controlled
by a principal of the Standby Purchaser.

 

“Agreement” shall have
the meaning given to such term in the preamble hereof.

 

“ASE Event” shall mean,
that, in any fiscal quarter, the Company’s consolidated GAAP financial statements for such fiscal quarter includes an Adjusted
Stockholders’ Equity that is less than 85% of the Company’s Adjusted Stockholders’ Equity as of the Closing (as
shown in the Company’s consolidated GAAP financial statements for the most recent fiscal quarter as of Closing).

 

“Associate” shall have
the meaning set forth in Rule 12b-2 under the Exchange Act and shall include Persons who become Associates of any Person subsequent
to the date hereof.

 

“Bankruptcy and Equity Exception”
shall have the meaning given to such term in Section 3(b) hereof.

 

“Board” shall mean the
board of directors of the Company.

 

“Burdensome Condition”
shall have the meaning given to such term in Section 6(c) hereof.

 

“Business Day” shall
mean any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in the Commonwealth
of Pennsylvania.

 

“Change of Control” shall
mean any transaction or series of transactions (as a result of a tender offer, merger, consolidation or otherwise) that results
in, or that is in connection with (a) any Third Party Purchaser or “group” (within the meaning of Section 13(d)(3)
of the Exchange Act) of Third Party Purchasers acquiring beneficial ownership, directly or indirectly, of a majority of the then
issued and outstanding Common Stock or (b) the sale, lease, exchange, conveyance, transfer, or other disposition (for cash,
shares of stock, securities or other consideration) of all or substantially all of the property and assets of the Company and its
Subsidiaries, on a consolidated basis, to any Third Party Purchaser or “group” (within the meaning of Section 13(d)(3)
of the Exchange Act) of Third Party Purchasers (including any liquidation, dissolution, or winding up of the affairs of the Company,
or any other distribution made in connection therewith).

 

“Closing” shall mean
the closing of the purchase described in Section 2 hereof, which shall be held at 10:00 a.m. Eastern Time on the Closing
Date at the offices of Stevens & Lee, 620 Freedom Business Center, King of Prussia, Pennsylvania 19406, or such other
time and place as may be agreed to by the parties hereto.

 

“Closing Date” shall
mean the date on which the closing of the sale of the Shares pursuant to the Offerings takes place.

 

    	 	2	 

     

    

 

“Commission” shall mean
the United States Securities and Exchange Commission, or any successor agency thereto.

 

“Common Stock” shall
mean the common stock of the Company, par value $0.01 per share.

 

“Common Stock Equivalent”
shall mean any convertible debt instrument, option, warrant or other right to acquire Common Stock and shall include the number
of shares of Common Stock that may be acquired upon exercise or conversion of such Common Stock Equivalent.

 

“Company” shall have
the meaning given to such term in the preamble hereof.

 

“Company Contracts” shall
have the meaning given to such term in Section 3(f) hereof.

 

“Company Offer Notice”
shall have the meaning given to such term in Section 13(a) hereof.

 

“Conversion Plan Approval”
shall mean the approval of the Plan of Conversion by the Department and the requisite vote of the Voting Members.

 

“Department” shall mean
the Illinois Insurance Department.

 

“Designated Securities”
shall have the meaning given to such term in Section 11(b) hereof.

 

“Drag-along Notice” shall
have the meaning given to such term in Section 14(b) hereof.

 

“Drag-along Sale” shall
have the meaning given to such term in Section 14(a) hereof.

 

“Drag-along Stockholder”
shall have the meaning given to such term in Section 14(a) hereof.

 

“Dragging Stockholder”
shall have the meaning given to such term in Section 14(a) hereof.

 

“Eligible Members” shall
mean the members of FLMHC eligible to purchase Shares in the Subscription Offering.

 

“Equity Securities” shall
include (i) with respect to the Company, (a) any Common Stock, (b) any security convertible into or exercisable
or exchangeable for, with or without consideration, shares of Common Stock (including any option to purchase such a convertible
security), (c) any security carrying any warrant or right to subscribe to or purchase any shares of Common Stock, and (d) any
such warrant or right and (ii) with respect to any Subsidiary of the Company, (a) any equity ownership interests, (b) any
security convertible into or exercisable or exchangeable for, with or without consideration, equity ownership interests (including
any option to purchase such a convertible security), (c) any security carrying any warrant or right to subscribe to or purchase
any shares of equity ownership interests, and (d) any such warrant or right.

 

    	 	3	 

     

    

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Federal Life” shall
have the meaning given to such term in the recitals hereof.

 

“FLMHC” shall have the
meaning given to such term in the recitals hereof.

 

“Financial Statements”
shall have the meaning given to such term in Section 3(g) hereof.

 

“First Offer Termination Event”
shall mean the earliest to occur of (a) the fifth (5th) anniversary of the Closing Date, (b) the first date
upon which the Standby Purchaser no longer beneficially owns shares of the Common Stock representing more than five percent (5%)
of the issued and outstanding shares of the Common Stock, or (c) the occurrence of a Standstill Termination Event.

 

“GAAP” shall mean accounting
principles generally accepted in the United States of America, consistently applied by the Company with prior practice.

 

“Griffin” shall mean
Griffin Financial Group, LLC.

 

“Governmental Entity”
shall mean any federal or state court, administrative agency or commission or other governmental authority or instrumentality,
other than the Department.

 

“Gross Up Right” shall
have the meaning given to such term in Section 11(a) hereof.

 

“Including” shall mean
including, without limitation.

 

“Indebtedness” means,
with respect to any Person, (a) all obligations for borrowed money, (b) any other obligations owed by such Person under
any credit agreement or facility, or evidenced by any note, bond, debenture or other debt security or instrument made or issued
by such Person, (c) all obligations for the deferred purchase price of property or services with respect to which such Person
is liable, contingently or otherwise, as obligor or otherwise, (d) all capitalized lease obligations, synthetic lease obligations
and sale leaseback obligations, whether secured or unsecured, (e) all obligations under interest rate cap, swap, collar or
similar transactions or currency or commodity hedging transactions (valued at the termination value thereof), (f) all obligations
under conditional sale or other title retention agreements relating to any purchased property, (g) all letters of credit or
performance bonds issued for the account of such Person, (h) all guarantees of such Person with respect to any of the foregoing
of any other Person, (i) all interest, premium and prepayment penalties due and payable in respect of any of the foregoing
and (j) all indebtedness referred to in clauses (a) through (i) above secured by (or for which the holder of such indebtedness
has an existing right, contingent or otherwise, to be secured by) any encumbrance upon or in property (including accounts and contract
rights) owned by such Person, even though such Person may not have assumed or become liable for the payment of such indebtedness,
and including in clauses (a) through (i) above any accrued and unpaid interest or penalties thereon.

 

    	 	4	 

     

    

 

“Law” shall have the
meaning given to such term in Section 6(d) hereof.

 

“Liability” means any
liability, debt, expense, claim, demand, loss, commitment, damage, deficiency, obligation or actions of any kind, character or
description, whether asserted or not asserted, disputed or undisputed, known or unknown, joint or several, fixed or unfixed, liquidated
or unliquidated, secured or unsecured, accrued or unaccrued, matured or unmatured, absolute, contingent, determined, determinable
or otherwise, whenever or however arising (including, whether arising out of any contract or tort based on negligence or strict
liability) and whether or not the same would be required by SAP to be reflected in financial statements or disclosed in the notes
thereto, including all costs and expenses related thereto.

 

“Liens” means all pledges,
liens (statutory or other), encumbrances, charges, claims, community property interests, conditions, deeds of trust, equitable
interests, options, hypothecations, mortgages, easements, encroachments, burdens, rights of others, rights of way, rights of first
refusal, rights of first offer, title defects, title retention agreements, leases, subleases, licenses, occupancy agreements, covenants,
voting trust agreements, interests, negotiations or refusals, security interests of any kind, proxies or restrictions of any kind,
including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership or any applicable
insurance Laws.

 

“Material Action” shall
mean (a) incurring Indebtedness or any other material Liability or contracting for the extension or ability to incur Indebtedness
(even if not yet incurred), (b) modifying or amending Company Contracts, (c) adopting of a plan of complete or partial
liquidation, rehabilitation or entering into any merger agreement, (d) creating or acquiring of Subsidiaries, (e) undertaking
or committing to make any capital expenditures, (f) mortgaging, pledging or otherwise encumbering or subjecting to a Lien
any material assets or properties, tangible or intangible, other than Permitted Liens, (g) defaulting under any Indebtedness,
or cancelling or compromising any Indebtedness or waiving any material rights with respect thereto without receiving a realizable
benefit of similar or greater value, (h) paying or prepaying any Liability, or discharging or satisfying any Lien, or settling
any Liability, claim, dispute, proceeding, suit or appeal, pending or threatened against it or any of its assets or properties,
other than short-term liabilities which have been paid prior to the contractual due date therefor in the ordinary course of business,
(i) effecting any employee profit-sharing, stock option, stock purchase, pension, bonus, incentive, retirement, medical reimbursement,
life insurance, deferred compensation, severance or termination agreements, (j) entering into any new line of business, introduced
any new products or services or changed in any material respect existing products or services, except as may be required by applicable
Law, (k) abandoning, modifying, failing to renew, waiving, terminating or letting lapse any Permits or failing to timely file
with any Governmental Entity all required annual and quarterly statutory financial statements and other insurance regulatory reports,
statements, documents, registrations, filings or submissions or (l) entering into any agreement or commitment, whether in
writing or otherwise, to do any of the forgoing.

 

    	 	5	 

     

    

 

“Material Adverse Effect”
shall mean (a) a material adverse effect on the financial condition, or on the earnings, operations, assets, business or prospects
of the Company, Federal Life and their respective subsidiaries taken as a whole, or (b) the failure of either Joseph D.
Austin or William S. Austin to serve as Chief Executive Officer of the Company; provided, however, that in determining
whether a Material Adverse Effect has occurred under clause (a), there shall be excluded any effect to the extent resulting
from (i) actions or omissions of the Company or Federal Life expressly required or contemplated by the terms of this Agreement,
(ii) changes after the date hereof in general economic conditions in the United States, including financial market volatility
or downturn, (iii) changes after the date hereof affecting generally the life insurance business in the United States, (iv) acts
of war, sabotage or terrorism, military actions or the escalation thereof, or outbreak of hostilities, (v) any changes after
the date hereof in applicable laws or accounting rules or principles, including changes in GAAP, or (vi) the announcement
or pendency of the transactions contemplated by this Agreement; provided further, however, that any circumstance,
event, change, development or effect referred to in clauses (ii), (iii), (iv) and (v) shall be taken into account
in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur to the extent that such
circumstance, event, change, development or effect has a disproportionate effect on the Company and Federal Life compared to other
participants in the industries or markets in which the Company and Federal Life operate.

 

“Maximum of the Valuation Range”
has the meaning given to such term in the Plan of Conversion.

 

“Minimum of the Valuation Range”
has the meaning given to such term in the Plan of Conversion.

 

“Non-public information”
shall have the meaning given to such term in Section 6(d) hereof.

 

“Offer Period” shall
have the meaning given to such term in Section 11(b) hereof.

 

“Offered Shares” shall
have the meaning given to such term in Section 9(d) hereof.

 

“Offerings” shall mean,
collectively, the Subscription Offering and the Community Offering.

 

“Offering Expiration Date”
shall mean the date on which the Offerings expire.

 

“Organizational Documents”
of a Person means, as applicable, the declaration and charter, certificate of incorporation, articles of incorporation, certificate
of designation, bylaws, certificate of formation, operating agreement or any similar organizational or governing document or instrument
of a Person.

 

“Permits” shall have
the meaning given to such term in Section 3(f) hereof.

 

    	 	6	 

     

    

 

“Permitted
Liens” means (a) Liens for taxes that are not yet due and payable or are not delinquent and are being contested
in good faith by appropriate proceedings for which adequate reserves are maintained, or (b) mechanics’, materialmens’,
carriers’, workmens’, repairmens’, contractors’ and warehousemens’ Liens imposed by applicable Law,
arising or incurred in the ordinary course of business.

 

“Person” shall mean individual,
a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a Governmental
Entity.

 

“Plan of Conversion”
shall mean the plan of conversion adopted by FLMHC in connection with its conversion from a mutual insurance holding company to
a stock insurance holding company pursuant to Section 59.1 of the Illinois Insurance Code, 215 ILCS 5/59.1.

 

“Potential Sale Notice”
shall have the meaning given to such term in Section 13(a) hereof.

 

“Proposed Transferee”
shall have the meaning given to such term in Section 15(a).

 

“Prospectus” shall mean
the final Prospectus included in the Registration Statement for use in connection with the Offerings.

 

“Public Sale Notice”
shall have the meaning given to such term in Section 9(d) hereof.

 

“Purchased Shares” shall
have the meaning given to such term in Section 2(b) hereof.

 

“Qualifying Offer” shall
have the meaning given to such term in Section 13(c) hereof.

 

“Registration Statement”
shall mean the Company’s Registration Statement on Form S-1 or such other appropriate form under the Securities Act,
pursuant to which the shares of Common Stock to be issued in the Offerings will be registered pursuant to the Securities Act.

 

“Rights” shall have the
meaning given to such term in the recitals hereof.

 

“ROFO Termination Date”
shall mean (a) if the Standstill Period terminates as scheduled on the fifth (5th) anniversary of the Closing Date,
the date that is two (2) years following the end of the Standstill Period and (b) if the Standstill Period terminates for
any other reason, the date of the occurrence of a Standstill Termination Event.

 

“Sale Notice” has the
meaning given to such term in Section 15(b) hereof.

 

“SAP” shall mean the
accounting practices prescribed or permitted by the Department.

 

“Securities Act” shall
mean the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Selling Stockholder”
shall have the meaning given to such term in Section 15(a) hereof.

 

“Senior Management Shareholders”
shall mean the Executive Chairman, the Chief Executive Officer, the President, the Chief Financial Officer and any Executive Vice
President.

 

    	 	7	 

     

    

 

“Shares” shall have the
meaning given to such term in the recitals hereof.

 

“Standby Purchaser” shall
have the meaning given to such term in the preamble hereof.

 

“Standstill Period” means
the period commencing on the Closing Date and ending on the occurrence of a Standstill Termination Event.

 

“Standstill Termination Event”
shall mean the earliest to occur of (a) the fifth (5th) anniversary of the Closing Date, (b) the failure of
either Joseph D. Austin or William S. Austin to serve as Chief Executive Officer of the Company unless a new Chief Executive
Officer acceptable to the Standby Purchaser is appointed by the Board within a reasonable time thereafter, or (c) the occurrence
of an ASE Event.

 

“Statutory Financial Statements”
shall have the meaning given to such term in Section 3(h) hereof.

 

“Stockholder” shall mean
any Person who is a record holder of Common Stock or any Common Stock Equivalent.

 

“Strategic Direction”
shall have the meaning given to such term in Section 13(d) hereof.

 

“Strategic Investor”
shall have the meaning given to such term in the Plan of Conversion.

 

“Subscription Agent”
shall have the meaning given to such term in Section 6(a)(vi) hereof.

 

“Subscription Offering”
shall have the meaning given to such term in the recitals hereof.

 

“Subscription Price”
shall have the meaning given to such term in the recitals hereof.

 

“Subsidiary” means, with
respect to any Person, any corporation, limited liability company, general or limited partnership, limited liability partnership,
joint venture, association or other Person that is a business entity, trust or estate of which (a) if a corporation, a majority
of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person or a combination thereof or (b) if a limited liability company, partnership,
association or other business entity (other than a corporation), a majority of the partnership or other similar ownership interests
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or
a combination thereof and for this purpose, a Person or Persons own a majority ownership interest in such a business entity (other
than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses or
shall be or control any managing director or general partner of such business entity (other than a corporation). The term “Subsidiary”
shall include all Subsidiaries of such Subsidiary.

 

“Tag-along Notice” shall
have the meaning given to such term in Section 15(c) hereof.

 

    	 	8	 

     

    

 

“Tag-along Period” shall
have the meaning given to such term in Section 15(c) hereof.

 

“Tag-along Sale” shall
have the meaning given to such term in Section 15(a) hereof.

 

“Tag-along Stockholder”
shall have the meaning given to such term in Section 15(a) hereof.

 

“Third Party Purchaser”
shall mean any Person who, immediately prior to the contemplated transaction does not directly or indirectly own or have the right
to acquire any outstanding Common Stock.

 

“Transfer” shall have
the meaning given to such term in Section 9(a) hereof.

 

“Unsubscribed Shares”
shall mean the number of Shares not purchased in connection with the Subscription Offering.

 

“Voting Members” shall
mean the members of FLMHC eligible to vote to adopt and approve the Plan of Conversion.

 

“VWAP Price” shall mean
the average of daily volume weighted average price of the Common Stock on the NASDAQ Stock Market for the 20 trading days
immediately preceding the date of the Public Sale Notice.

 

Section 2. Standby Purchase Commitment.

 

(a) On the date of the filing of the Registration
Statement, the Standby Purchaser shall purchase from FLMHC at a price of up to $2,000,000, and FLMHC shall issue to the Standby
Purchaser, the Exchangeable Note, and FLMHC shall deliver to the Standby Purchaser the original Exchangeable Note executed by FLMHC.
The Standby Purchaser shall pay the purchase price for the Exchangeable Note to FLMHC by a wire transfer of immediately available
funds as and when Advances (as defined in the Exchangeable Note) are requested in accordance with the terms thereof, to an account
designated by FLMHC.

 

(b) Subject to the terms, conditions and limitations
of this Agreement and to the availability of Shares after purchases made in the Subscription Offering, the Standby Purchaser agrees
to purchase from the Company in the Community Offering, at the Subscription Price, the greater of (i) such number of Shares as
shall result in the sale of Shares in the Offering equal to the number of Shares at the Minimum of the Valuation Range, or (ii)
at least the lesser of: (A) 2,800,000 Shares (including any Shares issued as a result of the exchange of the Exchangeable Note),
or (B) such number of Shares, that when added to (x) any Shares for which subscriptions have been accepted in the Subscription
Offering, plus (y)  any Shares for which orders have been accepted in the Community Offering from other than the Standby Purchaser,
shall equal the number of Shares at the Maximum of the Valuation Range in the Offering. With the consent of the Company, the Standby
Purchaser may purchase such additional Shares above the maximum number of Shares offered in the Offering as shall result in the
Standby Investor owning 2,800,000 Shares (the number of Shares purchased by the Standby Purchaser are referred to herein as the
“Purchased Shares”).

 

    	 	9	 

     

    

 

(c) Payment of the purchase price for the
Purchased Shares shall be made by the Standby Purchaser, on the Closing Date, against delivery of certificates or a book entry
statement evidencing the Purchased Shares, in United States dollars by means of a wire transfer of immediately available funds
to the escrow account for the Offerings.

 

Section 3. Representations and Warranties
of the Company. The Company, Federal Life, and FLMHC represent and warrant as of the date hereof and as of the Closing Date
(except for the representations and warranties that are as of a specific date, which shall be made as of such date) to the Standby
Purchaser as follows:

 

(a) The Company is a corporation duly organized,
validly existing and in good standing under the laws of the Commonwealth of Pennsylvania and has all requisite corporate power
and authority to carry on its business as now conducted and as proposed to be conducted. Federal Life is a stock insurance company
duly organized, validly existing and in good standing under the laws of the State of Illinois and has all requisite corporate power
and authority to carry on its business as now conducted and as proposed to be conducted. FLMHC is a corporation duly organized,
validly existing and in good standing under the laws of the State of Illinois and has all requisite corporate power and authority
to carry on its business as now conducted and as proposed to be conducted. The copies of the Organizational Documents of the Company,
FLMHC, and Federal Life that have been provided to the Standby Purchaser are complete and correct and in full force and effect.
The Company has no joint venture or similar arrangement, no subsidiaries, no significant assets or liabilities, and it is not engaged
in any business.

 

(b) This Agreement has been duly and validly
authorized, executed and delivered by each of the Company, Federal Life and FLMHC and constitutes a binding obligation of each
of the Company, Federal Life, and FLMHC enforceable against each of them in accordance with its terms, subject to (i) the
application of bankruptcy, receivership, conservatorship, reorganization, insolvency and similar laws affecting creditors’
rights generally and (ii) equitable principles being applied at the discretion of a court before which any proceeding may
be brought (clauses (i) and (ii) collectively, the “Bankruptcy and Equity Exception”).

 

(c) The authorized capital of the Company
consists of (i) 10,000,000 shares of Common Stock, none of which shares were issued and outstanding as of the date of this
Agreement, and (ii) 1,000,000 shares of preferred stock, none of which preferred stock has been issued, as of the date hereof.
Except for equity awards to be granted to management upon completion of the Offerings as described in the Registration Statement,
there are no options, warrants, subscriptions, calls, rights, convertible securities or other agreements or commitments obligating
the Company to issue, transfer, sell, redeem, repurchase or otherwise acquire any shares of its capital stock. The authorized capital
stock of Federal Life consists of 25,000,000 shares of common stock, of which 2,500,000 shares are issued and outstanding.
FLMHC owns all of the outstanding shares of capital stock of Federal Life. As of the date of this Agreement there are no authorized
shares of capital stock of FLMHC. At the Closing Date, all of the authorized capital stock of FLMHC will be issued to and will
be owned by the Company. There are no options, warrants, subscriptions, calls, rights, convertible securities or other agreements
or commitments obligating either Federal Life or FLMHC to issue, transfer, sell, redeem, repurchase or otherwise acquire any shares
of its capital stock.

 

    	 	10	 

     

    

 

(d) At the time the Registration Statement
becomes effective, the Registration Statement will comply in all material respects with the requirements of the Securities Act
and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading. The Prospectus, at the time the Registration Statement becomes effective and at
the Closing Date, will not include an untrue statement of a material fact or omit to state a material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however,
that the representations and warranties in this subsection shall not apply to statements in or omissions from the Registration
Statement or the Prospectus made in reliance upon and in conformity with the information furnished to the Company in writing by
the Standby Purchaser for use in the Registration Statement or in the Prospectus.

 

(e) All of the Shares, including the Purchased
Shares, will have been duly authorized for issuance prior to the Closing (assuming the Conversion Plan Approval has been obtained),
and, when issued and distributed as set forth in the Prospectus, will be validly issued, fully paid and non-assessable; and none
of the Shares will have been issued in violation of the preemptive rights of any security holders of the Company arising as a matter
of law or under or pursuant to the Company’s Articles of Incorporation, the Company’s bylaws, or any agreement or instrument
to which the Company is a party or by which it is bound.

 

(f) Neither the execution, delivery or performance
of this Agreement or the Plan of Conversion by the Company, FLMHC or Federal Life, nor the consummation by the Company, Federal
Life or FLMHC of the transactions contemplated hereby or thereby, will: (i) conflict with or result in any breach of any provisions
of the Organizational Documents of the Company, FLMHC or Federal Life; (ii) result in a violation or breach of, or constitute
(with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, vesting,
payment, exercise, acceleration, suspension or revocation) under, any of the terms, conditions or provisions of any note, bond,
mortgage, deed of trust, security interest, indenture, license, contract, agreement, plan or other instrument or obligation to
which the Company, FLMHC or Federal Life is a party or by which it or any of their properties or assets may be bound (collectively,
the “Company Contracts”); (iii) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to the Company, FLMHC, Federal Life or any of their properties or assets; (iv) result in the creation or imposition
of any Lien on any asset of the Company, FLMHC or Federal Life; or (v) cause the suspension or revocation of any permit, license,
governmental authorization, consent or approval necessary for the Company, FLMHC or Federal Life to conduct its business as currently
conducted (collectively, the “Permits”), except in the case of clauses (ii), (iii), (iv) and (v) for violations,
breaches, defaults, terminations, cancellations, accelerations, creations, impositions, suspensions or revocations which would
not individually or in the aggregate have or be reasonably likely to result in a Material Adverse Effect. Except for the Conversion
Plan Approval, no vote of any member or holder of any other interest in FLMHC or Federal Life (equity or otherwise), is required
to consummate the transactions contemplated by this Agreement or the Plan of Conversion.

 

    	 	11	 

     

    

 

(g) Federal Life has delivered to the Standby
Purchaser complete and correct copies of the Financial Statements. The Financial Statements have been derived from the accounting
books and records of FLMHC and Federal Life and have been prepared on a basis consistent with GAAP, subject, in the case of interim
unaudited Financial Statements, only to normal recurring year-end adjustments. The Financial Statements present fairly in all material
respects the consolidated financial position of FLMHC and Federal Life as at the respective dates thereof, and the consolidated
statements of income, cash flow and equity included in the Financial Statements present fairly in all material respects the consolidated
results of operations, cash flows and consolidated equity of FLMHC and Federal Life, as applicable, for the respective periods
indicated. The term “Financial Statements” means the unaudited consolidated financial statements of FLMHC and
Federal Life as at and for the nine-month period ended September 30, 2017 and the audited consolidated financial statements
of FLMHC and Federal Life as at and for the year ended December 31, 2016, including in each case a consolidated balance sheet
and consolidated statements of income, cash flow and equity, as previously made available to the Standby Purchaser.

 

(h) The annual statements of Federal Life
for the years ended December 31, 2017, December 31, 2016 and December 31, 2015 and the quarterly statements of Federal
Life for the quarters ended March 31, June 30, and September 30, 2017 as filed with the Department (collectively,
together with all exhibits and schedules thereto, the “Statutory Financial Statements”) have been prepared in
accordance with SAP, and such accounting practices have been applied on a consistent basis throughout the periods involved, except
to the extent permitted by the Department and as expressly set forth in the notes, exhibits or schedules thereto, and the Statutory
Financial Statements present fairly in all material respects the financial position and the results of operations for Federal Life
as of the dates and for the periods therein in accordance with such accounting practices. Federal Life has made available to the
Standby Purchaser true and complete copies of all examination reports of the Department and any insurance regulatory agencies since
January 1, 2014, relating to Federal Life. Federal Life has delivered to the Standby Purchaser true and complete copies of
the Statutory Financial Statements.

 

(i) As of the date of this Agreement, since
December 31, 2017 , there has been no event or condition that, individually or in the aggregate, has had (or is reasonably
likely to result in) a Material Adverse Effect, and Federal Life and FLMHC have in all material respects conducted their respective
businesses in the ordinary course consistent with past practice. Except (x) for actions taken in the ordinary course of business
(including the settlement of undisputed claims) and (y) for such actions as are necessary for the completion of the Offerings
and the transactions contemplated by this Agreement and the Plan of Conversion, since December 31, 2017, none of the Company,
Federal Life or FLMHC has taken any Material Action that resulted, or could reasonably result, in the payment of an amount, or
the incurrence of a liability of, more than $100,000.

 

(j) Except for insurance claims litigation
arising in the ordinary course of business for which adequate reserves have been established, there is no suit, action, proceeding
or investigation (whether at law or equity, before or by any Government Entity or before any arbitrator) pending or, to the knowledge
of Federal Life, FLMHC or the Company, threatened against or affecting any of them, the outcome of which would individually or
in the aggregate have or be reasonably likely to result in a Material Adverse Effect, nor is there any judgment, decree, injunction,
rule or order of any Government Entity or arbitrator outstanding against Federal Life, FLMHC or the Company that would individually
or in the aggregate have or be reasonably likely to result in a Material Adverse Effect.

 

    	 	12	 

     

    

 

(k) The aggregate reserves of Federal Life
as recorded in the Financial Statements and Statutory Financial Statements have been determined in accordance with generally accepted
actuarial principles consistently applied or the requirements of the State of Illinois (except as permitted by the State of Illinois
and as set forth therein). The insurance reserving practices and policies of Federal Life have not changed, in any material respect,
since December 31, 2017, and the results of the application of such practices and policies are reflected in the Financial
Statements and Statutory Financial Statements. All reserves of Federal Life set forth in the Financial Statements and Statutory
Financial Statements are fairly stated in accordance with sound actuarial principles and meet the requirements of the insurance
laws of the State of Illinois, except where the failure to so state such reserves or meet such requirements would not have or be
reasonably likely to result in a Material Adverse Effect.

 

Section 4. Representations and Warranties
of the Standby Purchaser. The Standby Purchaser represents and warrants as of the date hereof and as of the Closing Date (except
for the representations and warranties that are as of a specific date, which shall be made as of such date) to the Company as follows:

 

(a) The Standby Purchaser is duly organized,
validly existing and in good standing under the laws of the jurisdiction in which it is organized and has the requisite organizational
power and authority to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated
hereby. Assuming the correctness of the representations and warranties made by the Company in Section 3 hereof, the execution
and delivery of this Agreement by the Standby Purchaser and performance by the Standby Purchaser of the transactions contemplated
hereby have been duly authorized by all necessary limited liability company action on the part of the Standby Purchaser, and no
further consent or authorization in connection therewith is required by the Standby Purchaser, its board of directors or its members.
This Agreement has been duly executed by the Standby Purchaser, and when delivered by the Standby Purchaser in accordance with
the terms of this Agreement and thereof, will constitute the legal, valid and binding obligations of the Standby Purchaser, enforceable
against it in accordance with its respective terms, subject to the Bankruptcy and Equity Exception.

 

(b) The Standby Purchaser was contacted by
the Company or Griffin with respect to a potential investment in the Shares. The Standby Purchaser understands that the Standby
Purchaser is acquiring the Purchased Shares in the ordinary course of its business directly from the Company (and not from Griffin),
as principal for its own account, with no present intention of dividing its participation with others or reselling or otherwise
distributing the same in violation of the Securities Act or any applicable state securities laws. The Standby Purchaser does not
presently have any agreement or understanding, directly or indirectly, with any Person to: (i) distribute any of the Purchased
Shares; (ii) hold or to dispose of the Purchased Shares; or (iii) acquire any Shares from any other Person other than
from the Company pursuant to this Agreement. Notwithstanding the foregoing, except as otherwise set forth in this Agreement, by
making the representations herein, the Standby Purchaser does not agree to hold any of the Purchased Shares for any minimum or
other specific term.

 

    	 	13	 

     

    

 

(c) The Standby Purchaser is an “accredited
investor” as that term is defined in Rule 501(a) of Regulation D. The Standby Purchaser is not a registered broker-dealer
under Section 15 of the Exchange Act, or an unregistered broker-dealer engaged in the business of being a broker-dealer. The
Standby Purchaser is an experienced institutional investor, is knowledgeable regarding the life insurance industry, and has experience
in investing in life insurance companies and life insurance holding companies.

 

(d) The Standby Purchaser is not purchasing
the Purchased Shares as a result of any advertisement, article, notice or other communication regarding the Purchased Shares published
in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general
advertisement. The Standby Purchaser did not learn about Federal Life or the Offerings as a result of the Registration Statement.

 

(e) The Standby Purchaser understands that
the Purchased Shares Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements
of United States federal and state securities laws and regulations.

 

Section 5. Deliveries at Closing.

 

(a) At the Closing, the Company shall deliver
to the Standby Purchaser the following:

 

(i) a certificate or certificates or a
book entry statement representing the number of shares of Common Stock issued to the Standby Purchaser pursuant to Section 2
hereof; and

 

(ii) a certificate of an officer of the
Company certifying on its behalf to the effect that the conditions set forth in Sections 8(a) and 8(c) have been satisfied
on and as of the Closing Date.

 

(b) At the Closing, the Standby Purchaser
shall deliver to the Company the following:

 

(i) payment of the Subscription Price of
the Shares purchased by the Standby Purchaser, as set forth in Section 2(b) hereof; and

 

(ii) a certificate of the Standby Purchaser
certifying to the effect that the conditions set forth in Sections 8(b) and 8(c) have been satisfied on and as of the Closing
Date.

 

Section 6. Covenants.

 

(a) The Company, Federal Life and FLMHC, as
applicable, agree as follows between the date hereof and the Closing Date:

 

(i) to as soon as reasonably practical
file with the Commission the Registration Statement;

 

    	 	14	 

     

    

 

(ii) to use reasonable best efforts to
cause the Registration Statement and any amendments thereto to become effective as promptly as practical;

 

(iii) to use reasonable best efforts to
effectuate the Offerings;

 

(iv) as soon as reasonably practical after
the Company is advised or obtains knowledge thereof, to advise the Standby Purchaser with a confirmation in writing, of (A) the
time when the Registration Statement or any amendment thereto has been filed or declared effective or the Prospectus or any amendment
or supplement thereto has been filed, (B) the issuance by the Commission of any stop order, or of the initiation or threatening
of any proceeding suspending the effectiveness of the Registration Statement or any amendment thereto or any order preventing or
suspending the use of any preliminary prospectus or the Prospectus or any amendment or supplement thereto, (C) the issuance
by any state securities commission of any notice of any proceedings for the suspension of the qualification of the Shares for offering
or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose, (D) the receipt
of any comments from the Commission, and (E) any request by the Commission for any amendment to the Registration Statement
or any amendment or supplement to the Prospectus or for additional information. The Company will use its reasonable best efforts
to prevent the issuance of any such order or the imposition of any such suspension and, if any such order is issued or suspension
is imposed, to obtain the withdrawal thereof as promptly as practical;

 

(v) to operate the business of Federal
Life, the Company and FLMHC in the ordinary course of business consistent with past practice;

 

(vi) to notify, or to cause the subscription
agent for the Subscription Offering (the “Subscription Agent”) to notify, the Standby Purchaser on each Friday
during the exercise period of the Rights, or more frequently if reasonably requested by the Standby Purchaser, of the aggregate
number of Shares known by the Company or the Subscription Agent to have been subscribed for or ordered in the Subscription Offering
as of the close of business on the preceding Business Day or the most recent practical time before such request, as the case may
be;

 

(vii) not to issue any shares of capital
stock of the Company, or options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, securities
convertible into or exchangeable for capital stock of the Company, or other agreements or rights to purchase or otherwise acquire
capital stock of the Company, except for the Exchangeable Note, shares of Common Stock issuable in the Offerings, and equity awards
to management as described in the Registration Statement;

 

(viii) not to authorize any stock split,
stock dividend, stock combination or similar transaction affecting the number of issued and outstanding shares of Common Stock
or shares of the Company’s preferred stock;

 

    	 	15	 

     

    

 

(ix) except for dividends payable to FLMHC
or Federal Life, not to declare or pay any dividends or repurchase any shares of Common Stock or shares of the Company’s
preferred stock;

 

(x) except for the Exchangeable Note, not
to incur any Indebtedness other than (A) trade payables or other similar Indebtedness incurred in the ordinary course of business
consistent with past practice and (B) other Indebtedness not in excess of $1,000,000 in the aggregate;

 

(xi) to discuss the orders received in
the Community Offering (other than, for avoidance of doubt, any orders from the Standby Purchaser) with the Standby Purchaser and
only accept such orders and in such amounts as are agreed to by both the Standby Purchaser, on the one hand, and the Company and
FLMHC, on the other hand;

 

(xii) to not, without the prior written
consent of the Standby Purchaser exercise the Company’s right to increase or decrease the purchase limitations set forth
in the Plan of Conversion pursuant to Section 10.01(f) thereof;

 

(xiii) to not exercise the Company’s
or FLMHC’s right under Section 11.02 of the Plan of Conversion to reject order for Shares placed by the Standby Purchaser
in accordance with the terms of this Agreement and the Plan of Conversion; and

 

(xiv) to not enter into any other Standby
Purchase Agreement (as defined in the Plan of Conversion) with any other Standby Purchaser (as defined in the Plan of Conversion).

 

(b) The Standby Purchaser agrees as follows
between the date hereof and the Closing Date:

 

(i) it shall be a condition precedent to
the obligations of the Company to complete the registration or qualification pursuant to Section 6(a) hereof that the Standby
Purchaser shall timely furnish to the Company in writing such information regarding itself as shall be reasonably requested by
the Company and as shall be required to effect such registration or qualification and shall timely execute such documents in connection
with such registration as the Company may reasonably request; and

 

(ii) to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the Registration Statement and the qualification of the
Shares offered for sale in the Offerings under applicable “blue sky” laws hereunder.

 

    	 	16	 

     

    

 

(c) Each of the Standby Purchaser and the
Company will cooperate with the other and use commercially reasonable efforts to promptly prepare all necessary documentation,
to effect all necessary filings and to obtain all necessary permits, consents, waivers, approvals and authorizations of the Commission,
the Department and any other third parties or Governmental Entities, necessary or desirable to consummate the purchase of the Shares
by the Standby Purchaser contemplated by this Agreement. The Standby Purchaser and the Company will furnish each other and each
other’s counsel with all information concerning themselves, their subsidiaries, directors, officers and shareholders and
such other matters as may be necessary or advisable in connection with any application, petition or any other statement or application
made by or on behalf of the Standby Purchaser or the Company to the Department or any Governmental Entity in connection with the
purchase of the Shares by the Standby Purchaser contemplated by this Agreement. The Standby Purchaser shall notify the Company
promptly of the receipt of any comments of the Department or any Governmental Entity with respect to such filings. Notwithstanding
anything to the contrary contained herein, between the date of this Agreement and the Closing Date, the Standby Purchaser shall
not be obligated to take or refrain from taking or to agree to it or its Affiliates taking or refraining from any action or to
suffer to exist any condition, limitation, restriction or requirement that, individually or in the aggregate with any other actions,
conditions, limitations, restrictions or requirements, would or would reasonably be likely to result in a Burdensome Condition,
and the Standby Purchaser shall not be required to seek review by a court, administrative or regulatory authority, agency, commission,
board, tribunal or similar adjudicative body of any determination of any insurance regulatory authority, including in their capacity
as a rehabilitator, conservator, liquidator or similar capacity. As used herein, “Burdensome Condition” means
any condition that would: (A) have a material negative effect on the business or the Permits, assets, liabilities, properties,
operations, results of operations or condition (financial or otherwise) of the Standby Purchaser, its Affiliates or the Company;
(B) impose any material requirement relating to the contribution of capital, keep-well or capital maintenance arrangements
or maintaining risk-based capital level or any material restrictions on dividends or distributions or the ability of the Company
to operate its business, in each case, excluding any changes in applicable Law or the effects of any actions, conditions, limitations,
restrictions or requirements that are customary for the applicable Governmental Entity to impose in transactions of the type of
transaction contemplated hereby; or (C) impose any requirement to modify this Agreement, the Plan of Conversion or other agreement
entered or to be entered into in connection herewith or therewith in any manner that materially changes the rights, liabilities
or obligations of the parties hereto or thereto.

 

    	 	17	 

     

    

 

(d) After the Closing, if and for so long
as the Standby Purchaser beneficially owns more than five percent (5.0%) of the issued and outstanding shares of the Common Stock,
the Company shall provide the Standby Purchaser with reasonable opportunities upon reasonable notice and during regular business
hours to discuss with the senior management of the Company at least on a quarterly basis, the business and operations of the Company,
with at least one of those meetings each year to be held, if requested by the Standby Purchaser, in-person at the Company’s
offices or such other mutually agreeable location. The Standby Purchaser hereby acknowledges that it is aware, and it agrees that
it will advise its representatives, agents, advisors, Affiliates and Associates who are informed as to the matters which are the
subject of this provision (collectively, its “Representatives”), that the United States securities laws prohibit
any Person who has received material, non-public information concerning the Company or the matters which are the subject of this
provision from purchasing or selling securities of the Company or from communicating such information to any other Person. The
Standby Purchaser agrees, and shall instruct its Representatives, to (i) keep such non-public information provided by the
Company strictly confidential, (ii) use the same degree of care to protect such non-public information as each would use to
protect its own non-public information of a similar nature, but in no event with less than reasonable care, and (iii) not
disclose the non-public information in any manner whatsoever to any Person, except with the specific prior written consent of the
Company. As used in this Section 6(d), “non-public information” shall not include information which (a) is
or becomes public knowledge other than as a result of a breach of the obligations of the Standby Purchaser or its Representatives;
(b) was known to the Standby Purchaser prior to the date of this Agreement, except as provided to the Standby Purchaser pursuant
to a confidentiality agreement with Federal Life; (c) becomes available without restriction from a third party not known by
the Standby Purchaser to be under any confidentiality obligation to the Company with respect thereto; or (d) is developed
by the Standby Purchaser or its Representatives without use of the Company’s non-public information. In the event that the
Standby Purchaser or any of its Representatives are requested or required by law, regulation, deposition, interrogatory, request
for documents, subpoena, civil investigative demand, administrative regulatory requirement, order, decree or the rules of any applicable
stock exchange or similar legal process (collectively, “Law”) to disclose any of the foregoing non-public information,
the Standby Purchaser shall (or will direct its Representatives to) provide the Company with prompt prior written notice of such
requirement to the extent permissible under applicable Law and reasonably practicable under the circumstances in order to enable
the Company to (A) seek, at its own cost, an appropriate protective order or other remedy or (B) waive compliance, in
whole or in part, with the terms of this Agreement; and the Standby Purchaser or such Representative shall consult and reasonably
cooperate with the Company, at the Company’s expense and upon its written request, with respect to taking steps to resist
or narrow the scope of such request or requirement. If, in the absence of a protective order, the Standby Purchaser or such Representative
are nonetheless, on the advice of counsel of such Standby Purchaser or such Representative, as applicable, required by applicable
Law to disclose the foregoing non-public information, the Standby Purchaser or such Representative shall (I) furnish only
that portion of the foregoing non-public information that, based upon advice of legal counsel, is legally required, (II) give
advance notice to the Company of the information to be disclosed as far in advance as is legally permissible and practical, and
(III) exercise commercially reasonable efforts, at the Company’s expense and upon its written request, to obtain reliable
assurance that confidential treatment will be accorded such non-public information. Notwithstanding anything to the contrary herein,
without satisfying the other obligations of this paragraph, Standby Purchaser and its Representative may disclose such non-public
information to the extent such disclosure is requested or required in connection with routine audits or examinations by, or blanket
document requests from, a Governmental Entity that does not specifically target the other parties, this Agreement or the transactions
contemplated hereby.

 

(e) The Company shall at all times reserve
and hold available sufficient number of shares of Common Stock to satisfy its obligations under this Agreement.

 

(f) After the Closing, if and for so long
as the Standby Purchaser beneficially owns more than five percent (5.0%) of the issued and outstanding shares of the Common Stock
and a Standstill Termination Event has not occurred, the Company and Federal Life shall nominate election to the Board of Directors
of the Company and Federal Life either (i) Matthew T. Popoli and Jay Novik or either of them, to the extent that the
Standby Purchaser notifies the Company that such individuals are to be elected to the Board or (ii) if either Mr. Popoli
or Mr. Novick are not selected by the Standby Purchaser, such individuals who are mutually and reasonably acceptable to the
Company and the Standby Purchaser.

 

    	 	18	 

     

    

 

(g) As soon as eligible to register Shares
for resale on a Form S-3 registration statement, or, if earlier, upon the occurrence of a Standstill Termination Event, the Company
shall register the Purchased Shares and the Common Stock held by the Senior Management Shareholders for resale under the Securities
Act in accordance with the provisions of Exhibit B attached hereto, at which time the legend described in Section 9(b)
hereof shall be removed from the Purchased Shares and the Common Stock held by the Senior Management Shareholders and the restrictions
set forth in Section 9(b) hereof shall be of no further force or effect.

 

Section 7. Public Statements. Neither
the Company nor the Standby Purchaser shall issue any public announcement, statement or other disclosure with respect to this Agreement
or the transactions contemplated hereby without the prior consent of the other party hereto, which consent shall not be unreasonably
withheld or delayed, except if such public announcement, statement or other disclosure is required by applicable law or applicable
stock market rules, in which case the disclosing party shall consult in advance with respect to such disclosure with the other
parties to the extent reasonably practicable.

 

Section 8. Conditions to Closing.

 

(a) The obligations of the Standby Purchaser
to consummate the transactions contemplated hereunder are subject to the fulfillment, prior to or on the Closing Date, of the following
conditions:

 

(i) the representations and warranties
of the Company, FLMHC, and Federal Life in Section 3 shall be true and correct in all respects as of the date hereof and at
and as of the Closing Date as if made on such date, except where the failure to be true and correct (without regard to any materiality
or Material Adverse Effect qualifications contained therein), would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect (and except that (1) representations and warranties made as of a specified date shall
be true and correct as of such date and (2) the representations and warranties of the Company set forth in Sections 3(a),
3(b), 3(c), 3(e), 3(f)(i) and 3(i) shall be true and correct in all respects);

 

(ii) the Company, FLMHC, and Federal Life
shall have performed in all material respects all of their respective obligations under this Agreement required to be performed
on or prior to the Closing Date;

 

(iii) as of the Closing Date, none of the
following events shall have occurred and be continuing: (A) trading in the Common Stock shall have been suspended by the Commission
or trading in securities generally on The New York Stock Exchange or The Nasdaq Stock Market shall have been suspended or limited
or minimum prices shall have been established on either such exchange, (B) a banking moratorium shall have been declared either
by U.S. federal or New York State authorities, or (C) there shall have occurred any material outbreak or material escalation
of hostilities, declaration by the United States of a national emergency or war or other calamity or crisis which has a material
adverse effect on the U.S. financial markets;

 

    	 	19	 

     

    

 

(iv) the gross proceeds from the Offerings,
including the purchase of the Purchased Shares by the Standby Purchaser, is equal to at least the Minimum of the Valuation Range;

 

(v) since the date of this Agreement, a
Material Adverse Effect shall not have occurred and no change or other event shall have occurred that would reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect; and

 

(vi) Senior Management Shareholders shall
have agreed to be bound by transfer restrictions on Shares of Common Stock of the Company held by such Persons which are no less
restrictive than the restrictions set forth in Section 9 hereof, and to be bound by tag along rights no less restrictive than
those set forth in Section 15 hereof, in each case, pursuant to an agreement in form and substance satisfactory to Standby
Purchaser; provided, however, that the Senior Management Shareholders shall be permitted to make transfers (x) for
estate planning purposes, (y) of shares that in the aggregate are less than 50% of the number of shares owned by Senior Management
Shareholders immediately after the Closing Date, or (z) to pay the exercise price upon the exercise of any stock options held
by one of the Senior Management Shareholders.

 

(b) The obligations of the Company to consummate
the transactions contemplated hereunder are subject to the fulfillment, prior to or on the Closing Date, of the following conditions:

 

(i) The representations and warranties
of the Standby Purchaser in Section 4 shall be true and correct in all material respects as of the date hereof and at and
as of the Closing Date as if made as of such date (except for representations and warranties made as of a specified date, which
shall be true and correct in all material respects as of such specified date); and

 

(ii) the Standby Purchaser shall have performed
in all material respects all of its obligations under this Agreement required to be performed on or prior to the Closing Date.

 

(c) The obligations of each of the Company
and the Standby Purchaser to consummate the transactions contemplated hereunder in connection with the Offerings are subject to
the fulfillment, prior to or on the Closing Date, of the following conditions:

 

(i) no judgment, injunction, decree or
other legal restraint shall be outstanding, nor shall any action, suit, claim, investigation or other legal proceeding be pending
that would reasonably be expected to prohibit, or have the effect of rendering unachievable, the consummation of the Offerings
or the transactions contemplated by this Agreement;

 

(ii) the Registration Statement shall have
been filed with the Commission and declared effective; no stop order suspending the effectiveness of the Registration Statement
or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission;
and any request of the Commission for inclusion of additional information in the Registration Statement or otherwise shall have
been complied with;

 

    	 	20	 

     

    

 

(iii) at least two-thirds of the votes
cast by the Voting Members voting at the meeting of the Voting Members called for such purpose shall have voted to adopt and approve
the Plan of Conversion and the transactions contemplated thereunder;

 

(iv) all consents and approvals of the
Department and any other regulatory body or agency necessary to consummate the transactions contemplated by this Agreement shall
have been obtained and all notice and waiting periods required by law to pass after receipt of such approvals or consents shall
have passed; and

 

(v) the Shares shall have been authorized
for listing on the Nasdaq Capital Market.

 

Section 9. Restrictions on Transfer.

 

(a) Except as set forth in Section 9(c),
the Standby Purchaser shall not, and shall ensure that its Affiliates do not, directly or indirectly, purchase, sell, transfer,
assign, lend, convey, gift, mortgage, pledge, encumber, hypothecate or otherwise dispose of, directly or indirectly (“Transfer”),
any shares of Common Stock. Any purported Transfers of shares of Common Stock in violation of this Section 9 shall be null
and void and no right, title or interest in or to such shares shall be Transferred to the purported transferee, buyer, donee, assignee
or encumbrance holder. The Company will not give, and will not permit the Company’s transfer agent to give, any effect to
such purported Transfer in its stock records.

 

(b) The Standby Purchaser understands and
agrees that the Purchased Shares will bear a legend substantially similar to the legend set forth below in addition to any other
legend that may be required by applicable law or by any agreement between the Company and the Standby Purchaser. The legend shall
be removed to permit Transfers made in accordance with Sections 9(c)(i), 9(c)(ii) and 9(c)(iii) unless prohibited by the Securities
Act. Alternatively, upon receipt of certifications from the Standby Purchaser reasonably satisfactory to the Company’s counsel,
the Company shall cause the legend to be removed in accordance with, and pursuant to, Rule 144 promulgated under the Securities
Act and any other applicable federal and state securities laws.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED AND/OR QUALIFIED UNDER ANY STATE SECURITIES
LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND REGISTRATION AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES
LAWS, (B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND REGISTRATION
AND/OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS PROVIDED THAT AT THE ISSUER’S REQUEST, THE TRANSFEROR THEREOF
SHALL HAVE DELIVERED TO THE ISSUER AN OPINION OF COUNSEL (WHICH OPINION SHALL BE IN FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE ISSUER) TO THE EFFECT THAT SUCH SECURITIES MAY BE SOLD OR TRANSFERRED PURSUANT TO AN EXEMPTION FROM SUCH REGISTRATION, OR
(C) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

    	 	21	 

     

    

 

(c) The provisions of Section 9(a) hereof
shall not apply to any of the following Transfers by the Standby Purchaser of any shares of Common Stock:

 

(i) beginning on the third anniversary
of the Closing Date, by offering or selling to Persons (other than to Persons party hereto or pursuant to clause (iii) below)
shares of Common Stock pursuant to Section 9(d) hereof not more than six and one-quarter percent (6-1/4%) of the number equal
to the Purchased Shares every ninety (90) days (the “90-Day Limit”);

 

(ii) pursuant to a tender or exchange offer
to an acquiror seeking to acquire 100% of the Common Stock of the Company that has been approved by the Board prior to such sale;

 

(iii) to one or more members or Affiliates
of the Standby Purchaser, provided that such member or Affiliate executes a written agreement in a form reasonably satisfactory
to the Company to be bound by the terms and conditions hereof; and

 

(iv) occurring after the occurrence of
a Standstill Termination Event.

 

(d) If and for so long as the Standby Purchaser
beneficially owns any shares of the Common Stock and a First Offer Termination Event has not occurred, the Standby Purchaser shall
provide the Company with not less than fifteen (15) Business Days prior written notice (the “Public Sale Notice”)
on each occasion before offering to sell to Persons (other than to Persons party hereto or pursuant to Section 9(c)(ii) or
9(c)(iii) above) any shares of Common Stock that it is permitted to sell under the Securities Act (the “Offered Shares”).
The Company shall have a right to notify the Standby Purchaser of the Company’s intent to purchase on or before the expiration
of such fifteen (15) Business Days, all or any portion of such Offered Shares at a price per share equal to the greater of (i) the
VWAP Price, or (ii) 95% times the Company’s then book value as calculated in accordance with GAAP (determined without
regard to its accumulated other comprehensive income) for the most recent quarter preceding the date of the Public Sale Notice
by at least forty-five (45) days.

 

If the Company fails (A) to exercise
the foregoing right with respect to such Offered Shares within fifteen (15) Business Days after receipt of the Public Sale Notice
and (B) to complete the purchase of such Offered Shares within ten (10) Business Days after receipt of all required regulatory
approvals, the Standby Purchaser may sell such Offered Shares in the market in accordance with Section 9(c)(i) hereof.

 

Any repurchase by the Company pursuant to
this Section 9(d) is subject to the prior approval of the Department, to the extent required under applicable Illinois law
governing mutual-to-stock conversions or distributions by Federal Life. In the event that the Company exercises its right to purchase
the Shares pursuant to this Section 9(d), (i) the Company shall use commercially reasonable efforts to obtain all required
regulatory approvals of the purchase of the Shares as soon as practical and (ii) closing upon the purchase of the Shares will
occur within ten (10) Business Days after all required regulatory approvals have been received.

 

    	 	22	 

     

    

 

(e) If, at any time while the Common Stock
is listed on any public exchange, the per share price of the Common Stock exceeds 250% of the per share price as of Closing, the
Company shall, at the written request of the Standby Purchaser, register the Offered Shares for resale under the Securities Act
in accordance with the provisions of Exhibit B attached hereto, following which registration the restrictions of Section 9(a)
through Section 9(d) shall terminate and be of no further force or effect.

 

(f) If the Standby Purchaser sells more than
5% of the outstanding shares of Common Stock to any Person prior to the occurrence of a Standstill Termination Event,, then such
Person must enter into a standstill agreement reasonably acceptable to the Company containing provisions similar to those in Section
9(f), Section 10 and Section 12(a) of this Agreement.

 

Section 10. Post-Closing Standstill Provision.
If and for so long as the Standby Purchaser beneficially owns more than five percent (5.0%) of the issued and outstanding shares
of the Common Stock and a Standstill Termination Event has not occurred, the Standby Purchaser agrees that, without the prior written
consent of the Board as specifically expressed in a resolution adopted by a majority of the entire membership of the Board (other
than a designee of the Standby Purchaser), neither the Standby Purchaser, nor any of its Affiliates or Associates nor any Person
acting at their direction or on their behalf, will, directly or indirectly:

 

(a) with respect to the Company or Common
Stock, make, engage or in any way participate in, directly or indirectly, any “solicitation” (as such term is used
in the proxy rules of the Commission) of proxies or consents (whether or not relating to the election or removal of directors);
seek to advise, encourage or influence any Person with respect to the voting of any Common Stock (other than Affiliates or Associates);
initiate, propose or otherwise “solicit” (as such term is used in the proxy rules of the Commission) shareholders of
the Company for the approval of shareholder proposals whether made pursuant to Rule 14a-8 or Rule 14a-4 under the Exchange
Act, or otherwise, or cause or encourage or attempt to cause or encourage any other Person to initiate any such shareholder proposal;
otherwise communicate with the Company’s shareholders or others pursuant to Rule 14a-1(l)(2)(iv) under the Exchange
Act; or participate in, or take any action pursuant to, any “shareholder access” proposal which may be adopted by the
Commission, whether in accordance with previously proposed Rule 14a-11 or otherwise;

 

(b) take any action to cause the Company or
any of its subsidiaries to be merged with or into or otherwise acquired (including any purchase of all of the stock or substantially
all of the assets of the Company or any of its subsidiaries or any loss portfolio transfer involving any subsidiary of the Company)
by Prosperity Life Insurance Company or any other insurance company or affiliate of an insurance company owned or controlled by
the Standby Purchaser or any affiliate of the Standby Purchaser.

 

    	 	23	 

     

    

 

(c) seek, propose, or make any statement with
respect to any merger, consolidation, business combination, tender or exchange offer, sale or purchase of assets, sale or purchase
of securities, dissolution, liquidation, restructuring, recapitalization or similar transactions of or involving the Company or
any of its Affiliates or Associates;

 

(d) except as otherwise permitted by this
Agreement, acquire, offer or propose to acquire, or agree to acquire (except by way of stock dividends, stock splits, reverse stock
splits or other distributions or offerings made available to holders of any shares of Common Stock generally), directly or indirectly,
whether by purchase, tender or exchange offer, through the acquisition of control of another Person, by joining a partnership,
limited partnership, syndicate or other “group” (within the meaning of Section 13(d)(3) of the Exchange Act) or
otherwise, any shares of Common Stock, Equity Securities, or any loans, debt securities, or assets of the Company or any of its
subsidiaries, or rights or options to acquire interests in any of the loans, debt securities, equity securities or assets of the
Company or any of its subsidiaries;

 

(e) form, join or in any way participate in
a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any shares of Common Stock;

 

(f) deposit any shares of Common Stock in
any voting trust or subject any shares of Common Stock to any arrangement or agreement with respect to the voting of any shares
of Common Stock;

 

(g) act alone or in concert with others to
control or seek to control, or influence or seek to influence, the management, the Board or policies of the Company;

 

(h) make any demand or request for any shareholder
list, or any related material, or for the books and records of the Company or its Affiliates;

 

(i) seek, alone or in concert with others,
election or appointment to or representation on, or nominate or propose the nomination of any candidate to, the Board, or seek
the removal of any member of the Board, in a manner inconsistent with this Agreement;

 

(j) have any discussions or communications,
or enter into any arrangements, understanding or agreements (whether written or oral) with, or knowingly instigate, advise, finance,
assist or encourage, any other Person in connection with any of the foregoing (including by granting any waiver to any legal, financial,
public relations, proxy solicitation or other firm that represented or was engaged by the Standby Purchaser, its Affiliates, Associates
or any of their legal counsel with respect to the Company, which waiver would permit any such firm to represent any Person in connection
with matters relating to the Company), or make any investment in or enter into any arrangement with any other Person that engages,
or offers or proposes to engage, in any of the foregoing;

 

(k) make or disclose any statement regarding
any intent, purpose, plan or proposal with respect to the Board, the Company, its management, policies or affairs or any of its
securities or assets or this Agreement that is inconsistent with the provisions of this Agreement, including any intent, purpose,
plan or proposal that is conditioned on, or would require waiver, amendment, nullification or invalidation of, any provision of
this Agreement or take any action that could require the Company to make any public disclosure relating to any such intent, purpose,
plan, proposal or condition; or

 

    	 	24	 

     

    

 

(l) otherwise take, or solicit, cause or encourage
others to take, any action inconsistent with any of the foregoing; provided, however, that the act of requesting
that the Board consider any of the foregoing acts or actions taken in preparation of a privatization of the Company shall not constitute
a breach of this Section 10.

 

Section 11. Post-Closing Pre-Emptive
Rights.

 

(a) Subject to applicable securities laws,
other than the Offerings, following the Closing Date, the Standby Purchaser shall have the right to purchase (its “Gross
Up Right”) its pro rata share of all Equity Securities that the Company or any Subsidiary of the Company may, from time
to time, propose to sell and issue after the date of this Agreement, other than the Equity Securities excluded by Sections 11(d)
and 11(e) hereof. The Standby Purchaser’s pro rata share is equal to the ratio of (i) the total number of outstanding
shares of the Common Stock that the Standby Purchaser is deemed to be a holder of immediately prior to the issuance of such Equity
Securities to (ii) the total number of shares of the outstanding Common Stock (including all shares of the Common Stock issued
or issuable upon conversion of any securities convertible into the Common Stock or upon the exercise of any outstanding warrants
or options) immediately prior to the issuance of the Equity Securities.

 

(b) If the Company or a Subsidiary of the
Company proposes to issue any Equity Securities, the Company shall give the Standby Purchaser written notice of its intention,
describing the Equity Securities and the price and the terms and conditions upon which the Company or such Subsidiary proposes
to issue the same. The Standby Purchaser shall have twenty (20) days from the receipt of such notice (the “Offer Period”)
to notify the Company in writing that it intends to exercise its Gross Up Right and as to the amount of Equity Securities the Standby
Purchaser intends to purchase, up to the maximum calculated in accordance with Section 11(a) hereof (the “Designated
Securities”); provided, however, that if providing the Standby Purchaser twenty (20) days’ notice
to respond is not practicable, the Company may provide an earlier deadline for the Standby Purchaser to respond to such notice
by giving the Standby Purchaser the maximum number of days to respond as is practicable but in any event no fewer than five (5)
days’ notice. Such notice from the Standby Purchaser shall constitute a non-binding indication of interest of the Standby
Purchaser to purchase the amount of Designated Securities specified by the Standby Purchaser (or a proportionately lesser amount
if the amount of Equity Securities to be offered if such offering of Equity Securities is subsequently reduced) at the price (or
range of prices) and other terms set forth in the Company’s notice to it. The failure to respond during the Offer Period
constitutes a waiver of its Gross Up Right in respect of such offering. The Standby Purchaser shall execute a binding agreement
to purchase any such Equity Securities within thirty (30) days after expiration of the Offer Period, and any Equity Securities
that the Standby Purchaser indicated it would purchase but that are not covered by a binding purchase agreement at such time may
be sold to other Persons, unless the failure to execute such an agreement is attributable to actions of the Company or a Subsidiary
of the Company, in which case the Company or such Subsidiary shall have the right to sell the Equity Securities to other Persons
if the Standby Purchaser shall not have executed such an agreement within the later of (i) five (5) Business Days after the
reason for such delay has been resolved or (ii) thirty (30) days after expiration of the Offer Period. Notwithstanding the
foregoing, neither the Company nor such Subsidiary shall be required to offer or sell such Equity Securities to the Standby Purchaser
if it would cause the Company or such Subsidiary to be in violation of applicable federal securities or insurance regulatory laws
by virtue of such offer or sale.

 

    	 	25	 

     

    

 

(c) The Company or such Subsidiary shall have
90 days after expiration of the Offer Period to sell any Equity Securities in respect of which the Standby Purchaser’s
Gross Up Rights were not exercised, at a price and upon general terms and conditions not materially more favorable to the purchasers
thereof than specified in the Company’s notice to the Standby Purchaser pursuant to Section 11(b) hereof. If the Company
or such Subsidiary has not sold such Equity Securities within such 90-day period, neither the Company nor such Subsidiary shall
thereafter issue or sell any Equity Securities without first offering such Equity Securities to the Standby Purchaser in the manner
provided above.

 

(d) The Gross Up Rights provided by this Section 11
shall not apply to, and shall terminate upon the earlier of (a) the first date upon which the Standby Purchaser no longer
beneficially owns shares of the Common Stock representing more than five percent (5%) of the issued and outstanding shares of the
Common Stock immediately prior to an issuance contemplated under Section 11(a) hereof, (b) the date of any breach by
the Standby Purchaser of any material obligation under this Agreement that remains uncured after thirty (30) days’ notice
thereof, or (c) the end of the Standstill Period.

 

(e) The provisions in this Section 11
shall not apply to any issuance of Equity Securities by the Company (i) to employees, consultants, officers or directors of
the Company or any of its subsidiaries for the primary purpose of soliciting or retaining their employment or services or in a
transaction or pursuant to management or employee agreements, incentive programs or stock purchase or equity compensation plans
approved by the Board (including any such programs or plans in existence on the date hereof), (ii) to a third party as consideration
in connection with (but not in connection with raising capital to fund) (A) a strategic business combination or other merger,
acquisition or disposition transaction, partnership, joint venture, strategic alliance or investment by the Company or similar
non-capital raising transaction approved by the Board, or (B) an investment by the Company or its subsidiaries approved by
the Board in any party which is not prior to such transaction an Affiliate of the Company (whether by merger, consolidation, sale
or exchange of stock, sale of assets or securities, or otherwise), (iii) as part of any offering registered under the Securities
Act; provided, that the Standby Purchaser shall not be precluded by the Company, its underwriter(s) or its agent(s) in connection
with such offering from purchasing in such offering, and the Company shall use commercially reasonable efforts to cause its underwriter(s)
or agent(s) engaged in connection with such offering to allocate shares, on the same terms and conditions offered to the public,
a sufficient number of Designated Securities, so as to maintain the Standby Purchaser’s pro rata share of all Equity Securities,
(iv) upon the exercise, conversion or exchange of options, warrants or similar rights or other convertible securities, (v) the
issuance of Equity Securities by a Subsidiary of the Company to the Company or one of its direct or indirect Subsidiaries and (vi) in
connection with any stock split, stock dividend paid on a proportionate basis to all holders of the affected class of capital stock
or recapitalization approved by the Board.

 

    	 	26	 

     

    

 

Section 12. Post-Closing Voting.
If and for so long as the Standby Purchaser beneficially owns more than five percent (5.0%) of the shares of the Common Stock outstanding
and a Standstill Termination Event has not occurred:

 

(a) subject to the final proviso of this paragraph,
the Standby Purchaser shall vote and cause to be voted all shares of Common Stock beneficially owned by the Standby Purchaser (i) for
persons nominated and recommended by the Board for election as directors of the Board and against any Person nominated for election
as a director by any other Person and (ii) as directed or recommended by the Board with respect to any proposal presented
at any meeting of the Company’s shareholders, including, but not limited to (A) the entire slate of directors recommended
for election by the Board to the shareholders of the Company at any meeting of the Company’s shareholders at which any directors
are elected, (B) any shareholder proposal submitted for a vote at any meeting of the Company’s shareholders, and (C) any
proposal submitted by the Company for a vote at any meeting of the Company’s shareholders relating (x) to the appointment
of the Company’s accountants or (y) an equity compensation plan of the Company and/or any material revisions thereto;
provided, however, that the Standby Purchaser shall not be bound to vote in accordance with the foregoing provisions
if the Company is in violation of a material obligation of this Agreement that remains uncured after fifteen (15) days’ notice
thereof or if such proposal (1) would have a disproportionate effect on the Standby Purchaser compared to all of the other
holders of the Common Stock as a group, (2) (other than the matters specified in clause (i)) requires approval of a related
party transaction between the Company and one or more of its Affiliates other than as set forth in clauses (i), (ii)(A) and
(ii)(C)(y), or (3) would result in nominees of the Standby Purchaser being removed from the Board.

 

(b) Notwithstanding the foregoing, so long
as the Standby Purchaser owns 25% or more of the outstanding shares of Common Stock, without the affirmative vote or written approval
of the Standby Purchaser, none of the Company, Federal Life, or FLMHC shall cause or permit, take or decide, or agree or commit
to take any of the actions set forth on Exhibit C, and the Standby Purchaser shall have the right to vote its shares (or provide
or withhold its written approval) with respect to such actions in its sole and absolute discretion.

 

Section 13. Exit Provisions.

 

(a) If, at any time prior to the ROFO Termination
Date, the Standby Purchaser provides a written notice to the Company that the Standby Purchaser and those of its Affiliates who
own Common Stock desire to sell the Common Stock held by such Persons (a “Potential Sale Notice”) the Company
or its designee may, by written notice to the Standby Purchaser (a “Company Offer Notice”) delivered by the
date that is the earlier of (i) the date that is six (6) months following the date of the Potential Sale Notice and (ii) the
ROFO Termination Date, make a Qualifying Offer to purchase all, but not less than all, of the Common Stock held by the Standby
Purchaser and its Affiliates. If the Standby Purchaser or such Affiliate accepts the Qualifying Offer contained in the Company
Offer Notice, the Standby Purchaser shall notify the Company of such acceptance within ten (10) Business Days of receipt of
such Company Offer Notice, and the closing of the sale of the Offered Shares to the Company or such designee shall occur on the
later to occur of (x) thirty (30) days of such election and (y) ten (10) Business Days after any required regulatory
approvals for such sale are received.

 

    	 	27	 

     

    

 

(b) If either (i) the Company confirms
in writing that the Company will not provide a Company Offer Notice, (ii) the Company does not deliver a Company Offer Notice
to the Standby Purchaser in the manner set forth in Section 13(a), (iii) the Company delivers a Company Offer Notice
to the Standby Purchaser and fails to close on the purchase described in such Company Offer Notice for reasons other than the default
by the Standby Purchaser or its Affiliates, or (iv) the Standby Purchaser or its applicable Affiliate does not accept the
offer contained in the Company Offer Notice, then the Standby Purchaser and its Affiliates may (A) sell all or any portion
of the Common Stock held by the Standby Purchaser or its Affiliates to a third party (subject to applicable Law) or (B) require
the Company to register such Common Stock for resale under the Securities Act in accordance with the provisions of Exhibit B
attached hereto; provided, that until the ROFO Termination Date, if the Company has delivered a Company Offer Notice to the Standby
Purchaser, any such sale must be for a price that is not less than the price contained in the Company Offer Notice.

 

(c) For the purposes of this Section 13,
a “Qualifying Offer” shall mean an offer for all but not less than all of the Common Stock owned by the Standby
Purchaser and its Affiliates which (i) provides payment of the purchase price at closing in immediately available funds, (ii) is
not subject to any contingency except receipt by the buyer of all required regulatory approvals, and (iii) is accompanied
by commitment letters or other evidence, in each case, in form and substance reasonably acceptable to the Standby Purchaser, that
the proposed buyer for such Common Stock will have the funds available to purchase such Common Stock in accordance with the terms
set forth in the applicable Company Offer Notice.

 

(d) If (x) the Standby Purchaser disagrees
with any material corporate action taken or proposed to be taken by the Company or Federal Life or (y) the Company or Federal
Life fails to take any material corporate action proposed by the Standby Purchaser (either, a “Strategic Direction”)
and the Standby Purchaser gives written notice thereof to the Company, the Company shall have ninety (90) days to rescind or terminate
such Strategic Direction that is proposed to be taken, if such action is capable of being terminated or rescinded or, upon a failure
to take action proposed by the Standby Purchaser, to take the action which is the subject of such Strategic Direction within one
year after receipt of such written notice from the Standby Purchaser. If the Company fails to rescind or terminate such Strategic
Direction or take the action which is the subject of such Strategic Direction within the applicable time period, upon receipt by
the Company of written notice from the Standby Purchaser, then within six (6) months after receipt by the Company of such written
notice from the Standby Purchaser, the Company shall either:

 

(i) Purchase or cause another Person to
offer to purchase all of the Shares using the price set forth in Section 9(d) hereof; or

 

    	 	28	 

     

    

 

(ii) if such Shares have not been registered
previously, register the Shares owned by the Standby Purchaser for resale under the Securities Act in accordance with the provisions
of Exhibit B attached hereto, following which registration the restrictions of Section 9(a) through Section 9(d)
shall terminate and be of no further force or effect.

 

In the event that the Company exercises its
right to purchase the Shares pursuant to Section 13(d)(i) above, (i) the Company or its applicable designee shall use
commercially reasonable efforts to obtain all required regulatory approvals of the purchase of the Shares as soon as practical
and (ii) closing upon the purchase the Shares will occur within ten (10) Business Days after all required regulatory approvals
have been received.

 

(e) On the occurrence of an ASE Event, (i)
the Company shall, promptly upon the request of the Standby Purchaser, remove any restrictive legend on the shares of Common Stock
owned by the Standby Purchaser, (ii) the restrictions on transfer in Section 9 hereof (other than the provisions of Section 9(f)
hereof) shall terminate and be of no further force or effect, and (iii) the Standby Purchaser shall be permitted to sell such shares
at any time and from time to time without any notice to the Company.

 

Section 14. Drag Along Rights.

 

(a) After the occurrence of a Standstill Termination
Event, if a Stockholder who holds no less than 51% of the outstanding Common Stock of the Company (a “Dragging Stockholder”),
receives a bona fide offer from a non-affiliated Third Party Purchaser to consummate, in one transaction, or a series of related
transactions, a Change of Control (a “Drag-along Sale”), the Dragging Stockholder shall have the right to require
that each other Stockholder (each, a “Drag-along Stockholder”) participate in such Transfer in the manner set
forth in this Section 14, provided, however, that no Drag-along Stockholder shall be required to participate
in the Drag-along Sale if the consideration for the Drag-along Sale is other than cash or registered securities listed on an established
U.S. securities exchange or traded on the NASDAQ Stock Market. Notwithstanding anything to the contrary in this Agreement, each
Drag-along Stockholder shall vote in favor of the transaction and take all actions to waive any dissenters, appraisal or other
similar rights.

 

(b) The Dragging Stockholder shall exercise
its rights pursuant to this Section 14 by delivering a written notice (the “Drag-along Notice”) to the
Company and each Drag-along Stockholder no later than 20 Business Days prior to execution of an agreement to effect a Drag-along
Sale. The Drag-along Notice shall make reference to the Dragging Stockholder’s rights and obligations hereunder and shall
describe in reasonable detail:

 

(i) the number of shares of Common Stock
to be sold by the Dragging Stockholder, if the Drag-along Sale is structured as a Transfer of Common Stock;

 

(ii) the identity of the Third Party Purchaser;

 

(iii) the proposed date, time and location
of the closing of the Drag-along Sale;

 

    	 	29	 

     

    

 

(iv) the per share purchase price and the
other material terms and conditions of the Transfer, including a description of any non-cash consideration in sufficient detail
to permit the valuation thereof; and

 

(v) a copy of any form of agreement proposed
to be executed in connection therewith.

 

(c) If the Drag-along Sale is structured as
a Transfer of Common Stock, then, subject to Section 14(d), the Dragging Stockholder and each Drag-along Stockholder shall
Transfer the number of shares equal to the product of (x) the aggregate number of shares of Common Stock the Third Party Purchaser
proposes to buy as stated in the Drag-along Notice and (y) a fraction (A) the numerator of which is equal to the number
of shares of Common Stock and Common Stock Equivalents then held by such Dragging Stockholder or Drag-along Stockholder, as the
case may be, and (B) the denominator of which is equal to the number of shares of Common Stock and Common Stock Equivalents
then held by all of the Stockholders (including, for the avoidance of doubt, the Dragging Stockholder).

 

(d) The consideration to be received by a
Drag-along Stockholder shall be the same form and amount of consideration per share of Common Stock to be received by the Dragging
Stockholder (or, if the Dragging Stockholder is given an option as to the form and amount of consideration to be received, the
same option shall be given) and the terms and conditions of such Transfer shall, except as otherwise provided in the immediately
succeeding sentence, be the same as those upon which the Dragging Stockholder Transfers its Common Stock. Each Drag-along Stockholder
shall make or provide the same representations, warranties, covenants, and agreements as the Dragging Stockholder makes or provides
in connection with the Drag-along Sale (except that in the case of representations, warranties, covenants, and agreements pertaining
specifically to the Dragging Stockholder, the Drag-along Stockholder shall make the comparable representations, warranties, covenants,
and agreements pertaining specifically to itself); provided, that all representations, warranties, covenants and
indemnities shall be made by the Dragging Stockholder and each Drag-along Stockholder severally and not jointly and further
provided that no Drag-along Stockholder shall be required to provide any indemnification to the Third Party Purchaser other
than in respect of actions taken or defaults caused by such Drag-along Stockholder.

 

(e) The fees and expenses of the Dragging
Stockholder incurred in connection with a Drag-along Sale shall be paid by the Dragging Stockholder to the extent not paid or reimbursed
by the Company or the Third Party Purchaser.

 

(f) Each Drag-along Stockholder shall take
all actions as may be reasonably necessary to consummate the Drag-along Sale, including entering into agreements and delivering
certificates and instruments, in each case consistent with the agreements being entered into and the certificates being delivered
by the Dragging Stockholder.

 

    	 	30	 

     

    

 

(g) The Dragging Stockholder shall have 120 days
following the date of the Drag-along Notice in which to consummate the Drag-along Sale, on the terms set forth in the Drag-along
Notice (which such 120 day period may be extended for a reasonable time not to exceed 180 days to the extent reasonably
necessary to obtain any Government Approvals). If at the end of such period, the Dragging Stockholder has not completed the Drag-along
Sale, the Dragging Stockholder may not then effect a transaction subject to this Section 14 without again fully complying
with the provisions of this Section 14.

 

Section 15. Tag Along Rights.

 

(a) After the occurrence a Standstill Termination
Event, except for transfers effected on an Exchange, if a Senior Management Shareholder or a Stockholder who holds no less than
51% of the outstanding Common Stock of the Company (the “Selling Stockholder”) proposes to Transfer any shares
of its Common Stock to a Third Party Purchaser (the “Proposed Transferee”) and the Selling Stockholder cannot
or has not elected to exercise its drag-along rights set forth in Section 14, each other Stockholder (each, a “Tag-along
Stockholder”) shall be permitted to participate in such Transfer (a “Tag-along Sale”) on the terms
and conditions set forth in this Section 15.

 

(b) Prior to the consummation of any such
Transfer of Common Stock described in Section 15(a), the Selling Stockholder shall deliver to the Company and each other Stockholder
a written notice (a “Sale Notice”) of the proposed Tag-along Sale subject to this Section 15 no later than
10 Business Days prior to the execution of an agreement for a Tag-along Sale. The Sale Notice shall make reference to the
Tag-along Stockholders’ rights hereunder and shall describe in reasonable detail:

 

(i) the aggregate number of shares of Common
Stock the Proposed Transferee has offered to purchase.

 

(ii) the identity of the Proposed Transferee;

 

(iii) the proposed date, time and location
of the closing of the Tag-along Sale;

 

(iv) the per share purchase price and the
other material terms and conditions of the Transfer, including a description of any non-cash consideration in sufficient detail
to permit the valuation thereof; and

 

(v) a copy of any form of agreement proposed
to be executed in connection therewith.

 

(c) Each Tag-along Stockholder shall exercise
its right to participate in a Transfer of Common Stock by the Selling Stockholder subject to this Section 15 by delivering
to the Selling Stockholder a written notice (a “Tag-along Notice”) stating its election to do so and specifying
the number of shares of Common Stock to be Transferred by it no later than five Business Days after receipt of the Sale Notice
(the “Tag-along Period”). The offer of each Tag-along Stockholder set forth in a Tag-along Notice shall be irrevocable,
and, to the extent such offer is accepted, such Tag-along Stockholder shall be bound and obligated to Transfer in the proposed
Transfer on the terms and conditions set forth in this Section 15. The Selling Stockholder and each Tag-along Stockholder
shall have the right to Transfer in a Transfer subject to this Section 15 the number of shares of Common Stock equal to the
product of (x) the aggregate number of shares of Common Stock the Proposed Transferee proposes to buy as stated in the Sale
Notice and (y) a fraction (A) the numerator of which is equal to the number of shares of Common Stock and Common Stock
Equivalents then held by the Selling Stockholder or such Tag-along Stockholder, as the case may be, and (B) the denominator
of which is equal to the number of shares of Common Stock and Common Stock Equivalents then held by all of the Stockholders (including,
for the avoidance of doubt, the Selling Stockholder).

 

    	 	31	 

     

    

 

(d) Each Tag-along Stockholder who does not
deliver a Tag-along Notice in compliance with Section 15(c) above shall be deemed to have waived all of such Tag-along Stockholder’s
rights to participate in such Transfer, and the Selling Stockholder shall (subject to the rights of any participating Tag-along
Stockholder) thereafter be free to Transfer to the Proposed Transferee its shares of Common Stock at a per share price that is
no greater than the per share price set forth in the Sale Notice and on terms and conditions which are not materially more favorable
to the Selling Stockholder than those set forth in the Sale Notice without any further obligation to the non-accepting Tag-along
Stockholders.

 

(e) Each Tag-along Stockholder participating
in a Transfer pursuant to this Section 15 shall receive the same consideration per share as the Selling Stockholder after
deduction of such Tag-along Stockholder’s proportionate share of the related expenses in accordance with Section 15(g)
below.

 

(f) Each Tag-along Stockholder shall make
or provide the same representations, warranties, covenants, and agreements as the Selling Stockholder makes or provides in connection
with the Tag-along Sale (except that in the case of representations, warranties, covenants, and agreements pertaining specifically
to the Selling Stockholder, the Tag-along Stockholder shall make the comparable representations, warranties, covenants, indemnities
and agreements pertaining specifically to itself); provided, that all representations, warranties, and covenants
shall be made by the Selling Stockholder and each Tag-along Stockholder severally and not jointly and provided further that
no Tag-along Stockholder shall have any indemnification obligation to the Proposed Transferee other than in respect of actions
taken or defaults caused by such Tag-along Stockholder.

 

(g) The Selling Stockholder and each Tag-along
Stockholder shall be responsible for its own expenses.

 

(h) Each Tag-along Stockholder shall take
all actions as may be reasonably necessary to consummate the Tag-along Sale, including entering into agreements and delivering
certificates and instruments, in each case consistent with the agreements being entered into and the certificates being delivered
by the Selling Stockholder.

 

(i) The Selling Stockholder shall have 120 Business
Days following the expiration of the Tag-along Period in which to Transfer the shares of Common Stock described in the Sale Notice,
on the terms set forth in the Sale Notice (which such 120 Business Day period may be extended for a reasonable time not to
exceed 180 Business days to the extent reasonably necessary to obtain any Government Approvals). If at the end of such 120 Business
day period, the Selling Stockholder has not completed such Transfer, the Selling Stockholder may not then effect a Transfer of
Common Stock subject to this Section 15 without again fully complying with the provisions of this Section 15.

 

    	 	32	 

     

    

 

(j) If the Selling Stockholder Transfers to
the Proposed Transferee any of its shares of Common Stock in breach of this Section 15, then each Tag-along Stockholder shall
have the right to Transfer to the Selling Stockholder, and the Selling Stockholder undertakes to purchase from each Tag-along Stockholder,
the number of shares of Common Stock that such Tag-along Stockholder would have had the right to Transfer to the Proposed Transferee
pursuant to this Section 15, for a per share amount and form of consideration and upon the terms and conditions on which the
Proposed Transferee bought such Common Stock from the Selling Stockholder, and without indemnity being granted by any Tag-along
Stockholder to the Selling Stockholder; provided, that, nothing contained in this Section 15 shall preclude
any Stockholder from seeking alternative remedies against such Selling Stockholder as a result of its breach of this Section 15.
The Selling Stockholder shall also reimburse each Tag-along Stockholder for any and all reasonable and documented out-of-pocket
fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of
the Tag-along Stockholder’s rights.

 

Section 16. Termination.

 

(a) This Agreement may be terminated at any
time prior to the Closing Date:

 

(i) by the Company on one hand or the Standby
Purchaser on the other hand by written notice to the other party hereto, if there is a material breach of this Agreement by the
other party that is not cured within fifteen (15) days after receipt of written notice of such breach by such breaching party;

 

(ii) if, by action of FLMHC’s board
of directors, FLMHC shall have decided to abandon the Plan of Conversion;

 

(iii) if the Plan of Conversion shall have
been proposed for approval and adoption at a meeting of the Voting Members and shall have failed to receive approval at such meeting
or any adjournment thereof or if the Department shall have stated in writing that it does not approve or intend to approve the
Plan of Conversion;

 

(iv) the Closing has not occurred by December 31,
2018 (the “Outside Date”), provided that the party seeking to terminate this Agreement pursuant to this clause (iv)
shall not have failed to perform the covenants, agreements and conditions to be performed by it which has been the primary cause
of, or resulted in, the failure of the Closing to occur by the Outside Date, and further provided that if any approvals necessary
to proceed with or complete the Conversion or the Offerings have not been received by December 1, 2018, either the Company or the
Standby Purchaser may extend the Outside Date for up to six months by giving written notice thereof to the other party, so long
as, in the case of an extension sought by the Company, each of the Company, FLMHC and Federal Life shall have performed the covenants,
agreements and conditions to be performed by it; or

 

    	 	33	 

     

    

 

(v) if any Governmental Entity shall have
issued an order, decree or ruling or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement and such order, decree, ruling or other action shall have become final and nonappealable or if the
removal or reversal of such order, decree, ruling or other action should constitute a Burdensome Condition.

 

(b) In the event of termination of this Agreement
pursuant to Section 16(a), written notice thereof shall as promptly as practicable be given to the other parties to this Agreement
and this Agreement shall terminate and the transactions contemplated hereby shall be abandoned, without further action by any of
the parties hereto. If this Agreement is terminated pursuant to Section 16(a):

 

(i) there shall be no liability or obligation
on the part of the parties hereto or their respective officers and directors, and all obligations of the parties hereto shall terminate,
except for (A) the obligations of the parties pursuant to this Section 17(b), and the provisions of Sections 17
through 23 and Section 25, and (B) any liabilities for any breach by the parties of the terms and conditions of this
Agreement prior to such termination; and

 

(ii) all filings, applications and other
submissions made pursuant to the transactions contemplated by this Agreement shall, to the extent practicable, be withdrawn from
any Governmental Entity to which made.

 

Section 17. Survival. The representations
and warranties of the Company and the Standby Purchaser contained in this Agreement or in any certificate delivered hereunder shall
survive the Closing hereunder.

 

Section 18. Notices. All notices,
communications and deliveries required or permitted by this Agreement shall be made in writing signed by the party making the same,
shall specify the Section of this Agreement pursuant to which it is given or being made and shall be deemed given or made (i) on
the date delivered if delivered by hand, (ii) on the third (3rd) Business Day after it is mailed if mailed by United States
registered or certified mail (return receipt requested) (with postage and other fees prepaid), or (iii) on the day after it
is delivered, prepaid, to an overnight express delivery service promising next business day delivery that confirms to the sender
delivery to the recipient on such day, as follows:

 

	(a)  If to the Company, at:	
        Federal Life Insurance Company

        3750 Deerfield Road

        Riverwoods, Illinois 60015

        Attention: William Austin, President

	 	 
	(b)  If to the Standby Purchaser, at:	
        Insurance Capital Group, LLC

        767 5th Avenue

        New York, New York 10153

        Attention: Matthew T. Popoli

 

 

    	 	34	 

     

    

 

or to such other representative or at such other address of
a party as such party hereto may furnish to the other parties in writing in accordance with this Section 18. If notice is
given pursuant to this Section 18 of any assignment to a permitted successor or assign of a party hereto, the notice shall
be given as set forth above to such successor or permitted assign of such party.

 

Section 19. Assignment. This Agreement
will be binding upon, and will inure to the benefit of and be enforceable by, the parties hereto and their respective successors
and assigns. No party to this Agreement may assign this Agreement or any of its rights or obligations under this Agreement without
the prior written consent of the other party hereto; provided that the Standby Purchaser may assign its rights and obligations
hereunder to an Affiliate of the Standby Purchaser (excluding Prosperity Life Insurance Group or any subsidiary thereof) if the
Standby Purchaser gives written notice of such assignment to the Company within five (5) Business Days thereof and the Standby
Purchaser guarantees performance by such Affiliate of the Standby Purchaser’s obligations under this Agreement.

 

Section 20. Entire Agreement. This
Agreement embodies the entire agreement and understanding between the parties hereto in respect of the subject matter contained
herein. There are no restrictions, promises, warranties, or undertakings, other than those set forth or referred to herein, with
respect to the transactions contemplated by this Agreement. This Agreement supersedes all prior agreements and understandings between
the parties with respect to the subject matter of this Agreement.

 

Section 21. Governing Law; Venue.
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania (other than its
rules of conflict of laws to the extent the application of the laws of another jurisdiction would be required thereby). The state
courts of the County of Philadelphia, Pennsylvania and the United States District Court for the Eastern District of Philadelphia
shall have the exclusive jurisdiction over any and all claims, lawsuits and litigation relating to or arising out of this Agreement,
the subject matter hereof or the transactions contemplated hereby. Each party hereto hereby irrevocably (a) submits to the
personal jurisdiction of such courts over such party in connection with any litigation, proceeding or other legal action arising
out of or in connection with this Agreement, and (b) waives to the fullest extent permitted by law any objection to the venue
of any such litigation, proceeding or action which is brought in any such court.

 

Section 22. Severability. If any
provision of this Agreement or the application thereof to any Person or circumstances is determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances
other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way
be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby
is not affected in any manner adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort
to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

 

    	 	35	 

     

    

 

Section 23. Extension or Modification
of Rights Offering. Without the prior written consent of the Standby Purchaser, the Company may (a) waive irregularities
in the manner of exercise of the Rights, and (b) waive conditions relating to the method (but not the timing) of the exercise
of the Rights.

 

Section 24. Most Favored Nation.
Except as disclosed or set forth herein, during the period from the date of this Agreement through the Closing Date, neither the
Company nor its subsidiaries shall enter into any additional, or modify any existing, agreements with any existing or future investors
in the Company or any of its subsidiaries that have the effect of establishing rights, imposing restrictions or otherwise benefiting
such investor in a manner more favorable in any material respect to such investor than the rights, restrictions and benefits established
with respect to the Standby Purchaser in this Agreement, unless, in any such case, this Agreement has been amended to provide the
Standby Purchaser with such additional rights and benefits or reduced restrictions.

 

Section 25. Miscellaneous.

 

(a) The obligations of the Company, FLMHC,
and Federal Life under this Agreement shall be joint and several.

 

(b) The Company shall not after the date of
this Agreement enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted
to the Standby Purchaser in this Agreement.

 

(c) The headings in this Agreement are for
purposes of reference only and shall not limit or otherwise affect the meaning of this Agreement.

 

(d) This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute
one and the same instrument. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

[Remainder of this page intentionally
left blank.]

 

    	 	36	 

     

    

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be duly executed and delivered as of the date first above written.

 

	 	FEDERAL LIFE GROUP, INC.

 

	 	By:  	 
	 	 	William S. Austin
	 	 	President

 

	 	FEDERAL LIFE MUTUAL HOLDING

COMPANY

 

	 	By:  	 
	 	 	William S. Austin
	 	 	President

 

	 	FEDERAL LIFE INSURANCE COMPANY

 

	 	By:	 
	 	 	William S. Austin
	 	 	President

 

	 	INSURANCE CAPITAL GROUP, LLC

 

	 	By:	 

 

    	 	37	 

     

    

 

EXHIBIT A

 

Proposed Note Terms:

 

Issuer: FLMHC

 

Advances: The Note will be structured as a line of credit facility
and the Standby Purchaser will make advances to the Issuer within five (5) days after the Issuer has made a written request to
the Standby Purchaser for such advance, provided that the outstanding aggregate balance of all advances shall not exceed $2,000,000.

 

Maturity: 24 months from issuance

 

Rate: Interest shall accrue on the outstanding principal balance
of the Note at a fixed rate of 3.75% per annum for the first 12 months (provided that such 12-month period shall be extended
for up to six additional months if the Closing has been delayed in the manner described in the second proviso to Section 16(a)(iv)),
and then a fixed rate of 10% per annum thereafter

 

Default Rate: Fixed rate of 10% per annum

 

Interest payment: Interest accrued each quarter will be paid
on the last day of each quarter

 

Defaults: Non-payment, bankruptcy, non-compliance with covenants
in Standby Purchase Agreement

 

Other terms: To be assumed by the Company upon closing of the
Offerings, and the principal converted into shares of Common Stock on the completion of the Conversion at the Subscription Price.

 

    	 	38	 

     

    

 

EXHIBIT B

 

1. Definitions.

 

Capitalized terms used in this Exhibit
B that are not defined in this Exhibit B shall have the meaning given to such terms in the Standby Stock Purchase Agreement.
As used in this Agreement, the following capitalized defined terms shall have the following meanings:

 

“1933 Act” shall mean
the Securities Act of 1933, as amended from time to time.

 

“1934 Act” shall mean
the Securities Exchange Act of 1934, as amended from time to time.

 

“Company” shall mean
Federal Life Group, Inc. and shall also include the Company’s successors.

 

“Depositary” shall mean
The Depository Trust Company, or any other depositary appointed by the Company, provided, however, that such depositary
must have an address in the Borough of Manhattan, in the City of New York.

 

“Person” shall mean an
individual, partnership (general or limited), corporation, limited liability company, trust or unincorporated organization, or
a government or agency or political subdivision thereof.

 

“Prospectus” shall mean
the prospectus included in a Registration Statement, including any preliminary prospectus, and any such prospectus as amended or
supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of
any portion of the Shares covered by a Shelf Registration Statement, and by all other amendments and supplements to a prospectus,
including post-effective amendments, and in each case including all material incorporated by reference therein.

 

“Registration Expenses”
shall mean any and all expenses incident to performance of or compliance by the Company with this Agreement, including without
limitation: (i) all SEC, stock exchange or Financial Industry Regulatory Authority (“FINRA”) registration
and filing fees, (ii) all fees and expenses incurred in connection with compliance with state securities or blue sky laws
and compliance with the rules of FINRA (including reasonable fees and disbursements of counsel for any underwriters or the Standby
Purchaser in connection with blue sky qualification of any of the Shares and any filings with FINRA), (iii) all expenses of
any Persons in preparing or assisting in preparing, word processing, printing and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto, any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in connection with
the listing, if any, of any of the Shares on any securities exchange or exchanges, (v) the fees and disbursements of counsel
for the Company and the fees and expenses of the independent registered public accounting firm of the Company, including the expenses
of any special audits or “comfort” letters required by or incident to such performance and compliance, and (vi) any
fees and disbursements of the underwriters customarily required to be paid by issuers or sellers of securities and the fees and
expenses of any special experts retained by the Company in connection with any Registration Statement, but excluding underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Shares by the Standby Purchaser.

 

    	 	39	 

     

    

 

“SEC” shall mean the
United States Securities and Exchange Commission or any successor agency or government body performing the functions currently
performed by the United States Securities and Exchange Commission.

 

“Shares” shall mean all
shares of common stock owned by the Standby Purchaser that were acquired in the Community Offering.

 

“Shelf Registration”
shall mean a registration effected pursuant to Section 2.1 of this Agreement.

 

“Shelf Registration Statement”
shall mean a “shelf” registration statement of the Company pursuant to the provisions of Section 2.1 of this Agreement
which covers all of the Shares on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted
by the SEC, and all amendments and supplements to such registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

2. Registration Under the 1933 Act.

 

2.1 Registration of Shares. The Company
shall, for the benefit of the Standby Purchaser, at the Company’s cost, (A) prepare and file with the SEC a Shelf Registration
Statement within 120 days after receipt of a written request of the Standby Purchaser on or after the end of the Solicitation
Period, on an appropriate form under the 1933 Act with respect to offers and sales of the Shares, and (B) use all commercially
reasonable efforts to cause the Shelf Registration Statement to be declared effective under the 1933 Act within 120 days of
the date of filing of the Shelf Registration Statement. The Company will:

 

(a) Use all commercially reasonable efforts
to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus forming part thereof to be usable
by the Standby Purchaser for a period of two years from the date the Shelf Registration Statement becomes effective under the 1933
Act, or for such shorter period that will terminate when all Shares covered by the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement or cease to be owned by the Standby Purchaser (the “Effectiveness Period”);
provided, however, that the Effectiveness Period in respect of the Shelf Registration Statement shall be extended
to the extent required to permit dealers to comply with the applicable prospectus delivery requirements of Rule 174 under
the 1933 Act and as otherwise provided herein.

 

    	 	40	 

     

    

 

(b) Notwithstanding any other provisions
hereof, use all commercially reasonable efforts to ensure that (i) any Shelf Registration Statement and any amendment thereto
and any Prospectus forming part thereof and any supplement thereto complies in all material respects with the 1933 Act and the
rules and regulations thereunder, (ii) any Shelf Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading and (iii) any Prospectus forming part of any Shelf Registration Statement, and
any supplement to such Prospectus (as amended or supplemented from time to time), does not include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they
were made, not misleading.

 

The Company shall not permit any securities
other than the Shares to be included in the Shelf Registration Statement. The Company further agrees, if necessary, to supplement
or amend the Shelf Registration Statement, as required by Section 3(b) below, and to furnish to the Standby Purchaser copies
of any such supplement or amendment promptly after its being used or filed with the SEC.

 

2.2 Expenses. The Company shall pay
all Registration Expenses in connection with the registration pursuant to Section 2.1. The Standby Purchaser shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of the Shares pursuant to
the Shelf Registration Statement.

 

2.3 Effectiveness. (a) The Company
will be deemed not to have used all commercially reasonable efforts to cause the Shelf Registration Statement to become, or to
remain, effective during the requisite period if the Company voluntarily takes any action that would, or omits to take any action
which omission would, result in any such Registration Statement not being declared or becoming effective or in the Standby Purchaser
not being able to offer and sell the Shares during that period as and to the extent contemplated hereby, unless such action is
required by applicable law.

 

(b) A Shelf Registration Statement pursuant
to Section 2.1 hereof will not be deemed to have become effective unless it has been declared effective by the SEC or has
otherwise become effective under the 1933 Act; provided, however, that if, after it has been declared or has otherwise
become effective, the offering of Shares pursuant to a Shelf Registration Statement is interfered with by any stop order, injunction
or other order or requirement of the SEC or any other governmental agency or court, such Registration Statement will be deemed
not to have become effective during the period of such interference, until the offering of the Shares pursuant to such Registration
Statement may legally resume.

 

3. Registration Procedures.

 

In connection with the obligations of the
Company pursuant to Section 2.1, the Company shall:

 

(a) prepare and file with the SEC a Registration
Statement on the appropriate form under the 1933 Act, which form (i) shall be selected by the Company, (ii) shall be
available for the sale of the Shares by the Standby Purchaser, (iii) shall comply as to form in all material respects with
the requirements of the applicable form and include or incorporate by reference all financial statements required by the SEC to
be filed therewith or incorporated by reference therein, and (iv) shall comply in all material respects with the requirements
of Regulation S-T under the 1933 Act, and use all commercially reasonable efforts to cause such Registration Statement to
become effective and remain effective in accordance with Section 2 hereof;

 

    	 	41	 

     

    

 

(b) prepare and file with the SEC such
amendments and post-effective amendments to such Registration Statement as may be necessary under applicable law to keep such Registration
Statement effective for the applicable period; and cause the Prospectus to be supplemented by any required prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 (or any similar provision then in force) under the 1933 Act and comply
with the provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder applicable to them with respect to the
disposition of all Shares covered by such Registration Statement during the applicable period in accordance with the intended method
or methods of distribution by the Standby Purchaser;

 

(c) (i) notify the Standby Purchaser
at least ten business days prior to filing, that a Shelf Registration Statement with respect to the Shares is being filed and advising
the Standby Purchaser that the distribution of such Shares will be made in accordance with the method selected by Standby Purchaser;
(ii) furnish to the Standby Purchaser and to each underwriter of an underwritten offering of such Shares, if any, without
charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such
other documents as the Standby Purchaser or underwriter may reasonably request, including financial statements and schedules and,
if the Standby Purchaser so requests, all exhibits in order to facilitate the public sale or other disposition of such Shares;
and (iii) hereby consents to the use of the Prospectus or any amendment or supplement thereto by the Standby Purchaser in
connection with the offering and sale of the Shares covered by the Prospectus or any amendment or supplement thereto;

 

(d) use all commercially reasonable efforts
to register or qualify the Shares under all applicable state securities or “blue sky” laws of such jurisdictions as
the Standby Purchaser and each underwriter of an underwritten offering of Shares shall reasonably request by the time the applicable
Registration Statement is declared effective by the SEC, and do any and all other acts and things which may be reasonably necessary
or advisable to enable the Standby Purchaser and each underwriter to consummate the disposition in each such jurisdiction of the
Shares; provided, however, that the Company shall not be required to (i) qualify as a foreign corporation or
as a dealer in securities in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d),
or (ii) take any action which would subject it to general service of process or taxation in any such jurisdiction where it
is not then so subject;

 

    	 	42	 

     

    

 

(e) notify promptly the Standby Purchaser
and, if requested by the Standby Purchaser, confirm such advice in writing promptly (i) when a Registration Statement has
become effective and when any post-effective amendments and supplements thereto become effective, (ii) of any request by the
SEC or any state securities authority for post-effective amendments and supplements to a Registration Statement and Prospectus
or for additional information after the Registration Statement has become effective, (iii) of the issuance by the SEC or any
state securities authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any
proceedings for that purpose, (iv) if, between the effective date of a Registration Statement and the closing of any sale
of Shares covered thereby, the representations and warranties of the Company contained in any underwriting agreement, securities
sales agreement or other similar agreement, if any, relating to the offering cease to be true and correct in all material respects,
(v) of the happening of any event or the discovery of any facts during the period a Registration Statement is effective which
makes any statement made in such Registration Statement untrue in any material respect or which requires the making of any changes
in such Registration Statement in order to make the statements therein not misleading, (vi) of the happening of any event
or the discovery of any facts during the period a Registration Statement is effective which makes any statement in the related
Prospectus untrue in any material respect or which requires the making of any changes in such Prospectus in order to make the statements
therein, in light of the circumstances under which they were made, not misleading, (vii) of the receipt by the Company of
any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose and (viii) of any determination by the Company that a post-effective amendment
to such Registration Statement would be appropriate;

 

(f) use all commercially reasonable efforts
to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement at the earliest possible moment;

 

(g) furnish to the Standby Purchaser, and
each underwriter, if any, without charge, at least one conformed copy of each Registration Statement and any post-effective amendment
thereto, including financial statements and schedules (without documents incorporated therein by reference and all exhibits thereto,
unless requested);

 

(h) cooperate with the Standby Purchaser
to facilitate the timely preparation and delivery of certificates representing such Shares (or statements of Shares owned, if the
Company’s shares of common stock are issued in book entry only form) to be sold and not bearing any restrictive legends and
registered in such names as the Standby Purchaser or the underwriters, if any, may reasonably request at least three business days
prior to the closing of any sale of Shares;

 

(i) upon the occurrence of any event or
the discovery of any facts, each as contemplated by Sections 3(e)(v), 3(e)(vi) and 3(e)(vii) hereof, as promptly as practicable
after the occurrence of such an event, use all commercially reasonable efforts to prepare a supplement or post-effective amendment
to the Registration Statement or the related Prospectus or any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of the Shares, such Prospectus will not contain at the time of such
delivery any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading or will remain so qualified. At such time as such public
disclosure is otherwise made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement
of a material fact or to include any omitted material fact, the Company agrees promptly to notify the Standby Purchaser of such
determination and to furnish the Standby Purchaser such number of copies of the Prospectus as amended or supplemented, as the Standby
Purchaser may reasonably request;

 

    	 	43	 

     

    

 

(j) a reasonable time prior to the filing
of any Registration Statement, any Prospectus, any amendment to a Registration Statement or amendment or supplement to a Prospectus
or any document which is to be incorporated by reference into a Registration Statement or a Prospectus after initial filing of
a Registration Statement, provide copies of such document to the Standby Purchaser; and make representatives of the Company as
shall be reasonably requested by the Standby Purchaser available for discussion of such document;

 

(k) if not previously received, obtain
a CUSIP number for all Shares not later than the effective date of a Registration Statement;

 

(l) enter into agreements (including underwriting
agreements) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of such Shares
and in such connection whether or not an underwriting agreement is entered into and whether or not the registration is an underwritten
registration:

 

(i) make such representations and warranties
to the Standby Purchaser and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters
in similar underwritten offerings as may be reasonably requested by them;

 

(ii) obtain opinions of counsel to the Company
and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing
underwriters, if any, and the Standby Purchaser) addressed to the Standby Purchaser and the underwriters, if any, covering the
matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may
be reasonably requested by the Standby Purchaser and underwriters;

 

(iii) obtain “comfort” letters
and updates thereof from the Company’s independent registered public accounting firm (and, if necessary, any other independent
registered public accounting firm of any subsidiary of the Company or of any business acquired by the Company for which financial
statements are, or are required to be, included in the Registration Statement) addressed to the underwriters, if any, and use all
commercially reasonable efforts to have such letter addressed to the Standby Purchaser (in accordance with AS 6101: Letters
for Underwriters and Certain other Requesting Parties of the Public Company Accounting Oversight Board), such letters to be in
customary form and covering matters of the type customarily covered in “comfort” letters to underwriters in connection
with similar underwritten offerings;

 

(iv) enter into a securities sales agreement
with the Standby Purchaser and an agent of the Standby Purchaser providing for, among other things, the appointment of such agent
for the Standby Purchaser for the purpose of soliciting purchases of Shares, which agreement shall be in form, substance and scope
customary for similar offerings;

 

    	 	44	 

     

    

 

(v) if an underwriting agreement is entered
into, cause the same to set forth indemnification provisions and procedures substantially equivalent to the indemnification provisions
and procedures set forth in Section 4 hereof with respect to the underwriters and all other parties to be indemnified pursuant
to said Section or, at the request of any underwriters, in the form customarily provided to such underwriters in similar types
of transactions; and

 

(vi) deliver such documents and certificates
as may be reasonably requested and as are customarily delivered in similar offerings to the Standby Purchaser and the managing
underwriters, if any.

 

The above shall be done at (i) the effectiveness
of such Registration Statement (and each post-effective amendment thereto) and (ii) each closing under any underwriting or
similar agreement as and to the extent required thereunder;

 

(m) make available for inspection by representatives
of the Standby Purchaser, any underwriters participating in any disposition pursuant to a Shelf Registration Statement, and any
counsel or accountant retained by any of the foregoing, all financial and other records, pertinent corporate documents and properties
of the Company reasonably requested by any such persons, and cause the respective officers, directors, employees, and any other
agents of the Company to supply all information reasonably requested by any such representative, underwriter, special counsel or
accountant in connection with a Registration Statement, and make such representatives of the Company available for discussion of
such documents as shall be reasonably requested by any such representative, underwriter, special counsel or accountant; provided
that information which the Company determines in good faith, to be confidential and which it notifies such parties is confidential
shall not be disclosed by such parties unless (i) such parties reasonably determine that the disclosure of such information
is necessary to avoid or correct a material misstatement or omission in the applicable Registration Statement or the related Prospectus,
(ii) such party reasonably determines, based on the advice of counsel, that disclosure of such information is required pursuant
to a subpoena or other order for a court of competent jurisdiction or any other administrative agency or is otherwise required
by applicable law, in which case each such party shall promptly notify, if permitted by applicable law, the Company, or (iii) such
information has been made generally available to the public;

 

(n) a reasonable time prior to filing any
Shelf Registration Statement, any Prospectus forming a part thereof, any amendment to such Shelf Registration Statement or amendment
or supplement to such Prospectus, provide copies of such document to the Standby Purchaser, to counsel for the Standby Purchaser
and to the underwriter or underwriters of an underwritten offering of Shares, if any, make such changes in any such document prior
to the filing thereof as the counsel to the Standby Purchaser the underwriter or underwriters reasonably request and not file any
such document in a form to which the Standby Purchaser, counsel for the Standby Purchaser or any underwriter shall not have previously
been advised and furnished a copy of or to which the Standby Purchaser, counsel to the Standby Purchaser or any underwriter shall
reasonably object, and make the representatives of the Company available for discussion of such document as shall be reasonably
requested by the Standby Purchaser, counsel for the Standby Purchasers of Purchaser or any underwriter;

 

    	 	45	 

     

    

 

(o) use all commercially reasonable efforts
to cause all Shares to be listed on any securities exchange on which shares of common stock of the Company are then listed if requested
by the Standby Purchaser, or if requested by the underwriter or underwriters of an underwritten offering of Shares, if any;

 

(p) otherwise comply with all applicable
rules and regulations of the SEC and make available to its security the Standby Purchasers, as soon as reasonably practicable,
an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the 1933 Act
and Rule 158 thereunder;

 

(q) cooperate and assist in any filings
required to be made with FINRA and in the performance of any due diligence investigation by any underwriter and its counsel (including
any “qualified independent underwriter” that is required to be retained in accordance with the rules and regulations
of FINRA); and

 

(r) the Company may (as a condition to
the Standby Purchaser’s participation in the Shelf Registration) require the Standby Purchaser to furnish to the Company
such information regarding the Standby Purchaser and the proposed distribution by the Standby Purchaser of the Shares as the Company
may from time to time reasonably request in writing.

 

The Standby Purchaser agrees that, upon receipt
of any notice from the Company of (i) the happening of any event or the discovery of any facts, each of the kind described
in Section 3(e)(v) or 3(e)(vi) hereof, or (ii) the good faith determination of the Board of Directors or the Chief Executive
Officer and Chief Financial Officer of the Company that the continued effectiveness of the applicable Registration Statement and
use of the Prospectus would require disclosure of confidential information related to a material acquisition or divestiture of
assets or a material corporate transaction, event or development, the Standby Purchaser will forthwith discontinue disposition
of Shares pursuant to a Registration Statement until the Standby Purchaser’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 3(k) hereof, and, if so directed by the Company, the Standby Purchaser will deliver
to the Company (at its expense) all copies in the Standby Purchaser’s possession, other than permanent file copies then in
the Standby Purchaser’s possession, of the Prospectus covering Shares current at the time of receipt of such notice; provided
that the Company shall not allow the applicable Registration Statement to fail or cease to be effective or allow the Prospectus
to be unusable pursuant to the provisions of this paragraph for more than 45 days during any year of effectiveness contemplated
by Section 2 hereof. It is understood and agreed that the provisions of this paragraph shall not affect the Company’s
obligations under Section 2.5 of this Agreement.

 

The Standby Purchaser hereby agrees with the
Company that the Standby Purchaser of will not participate in any underwritten offering hereunder unless the Standby Purchaser
completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

 

    	 	46	 

     

    

 

4. Indemnification; Contribution.

 

(a) With respect to the Securities, the
Company agrees to indemnify and hold harmless the Standby Purchaser, each Person who participates as an underwriter (any such Person
being an “Underwriter”) and each Person, if any, who controls any such Person within the meaning of Section 15
of the 1933 Act or Section 20 of the 1934 Act with respect to the Securities as follows:

 

(i) against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment or supplement thereto) pursuant to which Shares were registered
under the 1933 Act, including all documents incorporated therein by reference, or the omission or alleged omission therefrom of
a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of any
untrue statement or alleged untrue statement of a material fact contained in any Prospectus (or any amendment or supplement thereto)
or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading;

 

(ii) against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim whatsoever based
upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided that (subject to Section 4(d)
below) any such settlement is effected with the written consent of the Company; and

 

(iii) against any and all expense whatsoever,
as incurred (including the reasonable fees and disbursements of counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above; provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by the Standby Purchaser or Underwriter expressly for use in a Registration Statement (or
any amendment thereto) or any Prospectus (or any amendment or supplement thereto).

 

(b) The Standby Purchaser agrees to indemnify
and hold harmless the Company, each Underwriter, and each of their respective directors and officers, and each Person, if any,
who controls the Company or any Underwriter within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act, against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section 4(a) hereof,
as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf
Registration Statement (or any amendment thereto) or any Prospectus included therein (or any amendment or supplement thereto) in
reliance upon and in conformity with written information with respect to such the Standby Purchaser furnished to the Company by
such the Standby Purchaser expressly for use in the Shelf Registration Statement (or any amendment thereto) or such Prospectus
(or any amendment or supplement thereto); provided, however, that the Standby Purchaser shall not be liable for any
claims hereunder in excess of the amount of net proceeds received by the Standby Purchaser from the sale of Shares pursuant to
such Shelf Registration Statement.

 

    	 	47	 

     

    

 

(c) Each indemnified party shall give notice
as promptly as reasonably practicable to each indemnifying party of any action or proceeding commenced against it in respect of
which indemnity may be sought hereunder, but failure so to notify an indemnifying party shall not relieve such indemnifying party
from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve
it from any liability which it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate
at its own expense in the defense of such action; provided, however, that counsel to the indemnifying party shall
not (except with the consent of the indemnified party) also be counsel to the indemnified party. No indemnifying party shall, without
the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought under this Section 4 (whether or not the indemnified
parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional
release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does
not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

 

(d) If at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel, such indemnifying
party agrees that it shall be liable for any settlement of the nature contemplated by Section 4(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of
the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement at least 30 days
prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.

 

(e) If the indemnification provided for
in this Section 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any
losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate
amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, in such proportion
as is appropriate to reflect the relative fault of the Company on the one hand and the Standby Purchaser, and Underwriters on the
other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses,
as well as any other relevant equitable considerations.

 

    	 	48	 

     

    

 

The relative fault of the Company on the one
hand and the Standby Purchaser, and Underwriters on the other hand shall be determined by reference to, among other things, whether
any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates
to information supplied by the Company, the Standby Purchasers, or Underwriters and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission.

 

The Company, the Standby Purchasers, and Underwriters
agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation
or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section 4.
The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above
in this Section 4 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.

 

Notwithstanding the provisions of this Section 4,
neither the Standby Purchaser nor any Underwriter shall be required to contribute any amount in excess of the amount by which the
net proceeds received by the Standby Purchaser from the sale of the Shares exceeds the amount of any damages which the Standby
Purchaser or Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission with respect to the Shares from the sale of the Shares.

 

No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty
of such fraudulent misrepresentation.

 

For purposes of this Section 4, each
Person, if any, who controls the Standby Purchaser or any Underwriter within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act shall have the same rights to contribution as the Standby Purchaser or Underwriter and each director
of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall have the same rights to contribution as the Company.

 

5. Miscellaneous.

 

5.1 Rule 144 and Rule 144A.
For so long as the Company is subject to the reporting requirements of Section 13 or 15 of the 1934 Act, the Company covenants
that it will file the reports required to be filed by it under the 1933 Act and Section 13(a) or 15(d) of the 1934 Act and
the rules and regulations adopted by the SEC thereunder. If the Company ceases to be so required to file such reports, the Company
covenants that it will upon the request of the Standby Purchaser (a) make publicly available such information as is necessary
to permit sales pursuant to Rule 144 under the 1933 Act, (b) deliver such information to a prospective purchaser as is
necessary to permit sales pursuant to Rule 144A under the 1933 Act and it will take such further action as the Standby Purchaser
may reasonably request, and (c) take such further action that is reasonable in the circumstances, in each case, to the extent
required from time to time to enable the Standby Purchaser to sell its Shares without registration under the 1933 Act within the
limitation of the exemptions provided by (i) Rule 144 under the 1933 Act, as such Rule may be amended from time to time,
(ii) Rule 144A under the 1933 Act, as such Rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. Upon the request of the Standby Purchaser, the Company will deliver to the Standby Purchaser
a written statement as to whether it has complied with such requirements.

 

    	 	49	 

     

    

 

5.2 Notices. All notices and other
communications provided for or permitted hereunder shall be made in writing by hand delivery, registered first-class mail, email,
or any courier guaranteeing overnight delivery (a) if to Standby Purchaser, initially at the Standby Purchaser’s address
set forth in the Agreement, and thereafter at the most current address given by Standby Purchaser to the Company by means of a
notice given in accordance with the provisions of this Section 5.4; and (b) if to the Company, initially at the Company’s
address set forth in the Agreement, and thereafter at such other address of which notice is given in accordance with the provisions
of this Section 5.4.

 

All such notices and communications shall
be deemed to have been duly given: at the time delivered by hand, if personally delivered; two business days after being deposited
in the mail, postage prepaid, if mailed; when receipt is acknowledged, if emailed; and on the next business day if timely delivered
to an air courier guaranteeing overnight delivery.

 

Copies of all such notices, demands, or other
communications shall be concurrently delivered by the person giving the same to the Trustee under the Indenture, at the address
specified in such Indenture.

 

5.3 Specific Enforcement. Without limiting
the remedies available to the Standby Purchaser, the Company acknowledges that any failure by the Company to comply with its obligations
under Sections 2.1 through 2.4 hereof may result in material irreparable injury to the Standby Purchaser for which there is
no adequate remedy at law, that it would not be possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Standby Purchaser may obtain such relief as may be required to specifically enforce the Company’s
obligations under Sections 2.1 through 2.4 hereof.

 

    	 	50	 

     

    

 

EXHIBIT C

 

Major Decisions

 

		·	Use of Proceeds – making use of the net proceeds of the Offerings (including the contribution or loan of
such net proceeds to Federal Life or FLMHC); other than a contribution of at least $12,500,000 of such net proceeds, which shall
be contributed to Federal Life immediately after the Closing.

 

		·	Merger, Consolidation, Sale of Assets or Sale of a Controlling Stake in the Company – the merger or
consolidation of the Company or Federal Life with any Person or the sale, lease or other transfer of all or substantially all of
the Company’s or Federal Life’s assets to any Person, or entry into any agreement to do any of the foregoing.

 

		·	Material Affiliate transactions - the entry into any material transaction with any Affiliate of the Company, FLMHC
or Federal Life.

 

    	 	51

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