Document:

EX-10.1

 Exhibit 10.1 

 
 FIDELITY LIFE ASSOCIATION 

DEFERRED COMPENSATION PLAN 
  

 
  

 TABLE OF CONTENTS 

 

							
	ARTICLE I PURPOSE AND EFFECTIVE DATE	  	 	1	 
			
	    1.1	  	Purpose	  	 	1	 
	    1.2	  	Effective Date	  	 	1	 
		
	ARTICLE II DEFINITIONS	  	 	1	 
			
	    2.1	  	Account	  	 	1	 
	    2.2	  	Administrative Committee	  	 	1	 
	    2.3	  	Beneficiary	  	 	1	 
	    2.4	  	Board	  	 	1	 
	    2.5	  	Bonus	  	 	2	 
	    2.6	  	Change in Control	  	 	2	 
	    2.7	  	Code	  	 	3	 
	    2.8	  	Company	  	 	3	 
	    2.9	  	Compensation	  	 	3	 
	    2.10	  	Deferral Commitment	  	 	3	 
	    2.11	  	Deferral Period	  	 	3	 
	    2.12	  	Determination Date	  	 	3	 
	    2.13	  	Director	  	 	3	 
	    2.14	  	Director Fees	  	 	3	 
	    2.15	  	Disability	  	 	3	 
	    2.16	  	Earnings Index	  	 	4	 
	    2.17	  	Elective Deferred Compensation	  	 	4	 
	    2.18	  	Employer	  	 	4	 
	    2.19	  	Participant	  	 	4	 
	    2.20	  	Participation Agreement	  	 	4	 
	    2.21	  	Plan	  	 	4	 
	    2.22	  	Rate of Return	  	 	4	 
	    2.23	  	Retirement	  	 	4	 
	    2.24	  	Salary	  	 	5	 
	    2.25	  	Unforeseeable Emergency	  	 	5	 
		
	ARTICLE III PARTICIPATION AND DEFERRAL COMMITMENTS	  	 	5	 
			
	    3.1	  	Eligibility and Participation	  	 	5	 
	    3.2	  	Form of Deferral	  	 	6	 
	    3.3	  	Limitations on Deferral Commitments	  	 	6	 
	    3.4	  	Commitment Limited by Termination	  	 	7	 
		
	ARTICLE IV DEFERRED COMPENSATION ACCOUNTS	  	 	7	 
			
	    4.1	  	Accounts	  	 	7	 
	    4.2	  	Elective Deferred Compensation	  	 	7	 
	    4.3	  	Additional Company Matching Contributions	  	 	7	 
	    4.4	  	Additional Company Discretionary Contributions	  	 	8	 

  
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	    4.5	  	Allocation of Elective Deferred Compensation	  	 	8	 
	    4.6	  	Determination of Accounts	  	 	8	 
	    4.7	  	Vesting of Accounts	  	 	8	 
	    4.8	  	Statement of Accounts	  	 	9	 
		
	ARTICLE V PLAN BENEFITS	  	 	9	 
			
	    5.1	  	Distributions Prior to Termination of Employment	  	 	9	 
	    5.2	  	Distributions Following Termination of Service	  	 	9	 
	    5.3	  	Benefit Commencement	  	 	11	 
	    5.4	  	Deferred Payment of Benefit	  	 	11	 
	    5.5	  	Withholding for Taxes	  	 	11	 
	    5.6	  	Valuation and Settlement	  	 	11	 
	    5.7	  	Payment to Guardian	  	 	11	 
		
	ARTICLE VI BENEFICIARY DESIGNATION	  	 	12	 
			
	    6.1	  	Beneficiary Designation	  	 	12	 
	    6.2	  	Changing Beneficiary	  	 	12	 
	    6.3	  	No Beneficiary Designation	  	 	12	 
	    6.4	  	Effect of Payment	  	 	12	 
		
	ARTICLE VII ADMINISTRATION	  	 	12	 
			
	    7.1	  	Committee; Duties	  	 	12	 
	    7.2	  	Agents	  	 	13	 
	    7.3	  	Binding Effect of Decisions	  	 	13	 
	    7.4	  	Indemnity of Committee	  	 	13	 
		
	ARTICLE VIII CLAIMS PROCEDURE	  	 	13	 
			
	    8.1	  	Claim	  	 	13	 
	    8.2	  	Denial of Claim	  	 	13	 
	    8.3	  	Review of Claim	  	 	14	 
	    8.4	  	Final Decision	  	 	14	 
		
	ARTICLE IX AMENDMENT AND TERMINATION OF PLAN	  	 	14	 
			
	    9.1	  	Amendment	  	 	14	 
	    9.2	  	Employer’s Right to Terminate	  	 	15	 
		
	ARTICLE X MISCELLANEOUS	  	 	16	 
			
	    10.1	  	Unfunded Plan	  	 	16	 
	    10.2	  	Unsecured General Creditor	  	 	16	 
	    10.3	  	Trust Fund	  	 	16	 
	    10.4	  	Nonassignability	  	 	17	 
	    10.5	  	Not a Contract of Employment	  	 	17	 
	    10.6	  	Protective Provisions	  	 	17	 
	    10.7	  	Governing Law	  	 	17	 
	    10.8	  	Validity	  	 	17	 

  
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	    10.9	  	Notice	  	 	17	 
	    10.10	  	Successors	  	 	18	 
	    10.11	  	Compliance with Code Section 409A	  	 	18	 

  
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 FIDELITY LIFE ASSOCIATION 

DEFERRED COMPENSATION PLAN 
 ARTICLE I 
 PURPOSE AND EFFECTIVE DATE 

 

	1.1	 Purpose 

The purpose of this Deferred Compensation Plan is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death
of Directors and certain employees of Employer. It is intended that the Plan will aid in attracting and retaining Directors and employees of exceptional ability by providing them with these benefits. 

 

	1.2	 Effective Date 

 This Plan is effective June 1, 2006. 
 ARTICLE II 

DEFINITIONS 
 For the
purposes of this Plan, the following terms shall have the meanings indicated, unless the context clearly indicates otherwise: 
  

	2.1	 Account 

“Account” means the device used by Employer to measure and determine the amounts to be paid to a Participant under the Plan. Separate
subaccounts may be maintained to properly reflect the Participant’s balance and earnings thereon. A Participant’s Account shall not constitute or be treated as a trust fund of any kind. 

 

	2.2	 Administrative Committee 

 “Administrative Committee” means the committee appointed to administer the Plan pursuant to Article VII. 
  

	2.3	 Beneficiary 

“Beneficiary” means the person, persons or entity entitled under Article VI to receive any Plan benefits payable after a Participant’s
death. 
  

	2.4	 Board 

“Board” means the Board of Directors of the Company. 

  
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	2.5	 Bonus 

“Bonus” means any incentive compensation to a Participant under the Company’s Senior Management Bonus Plan. 

 

	2.6	 Change in Control 

 A “Change in Control” shall occur when: 
  

	 	(a)	 The shareholders of the Company approve one of the following (“Approved Transactions”) and either (x) such Approved Transaction
is consummated or (y) the Board determines that consummation of such Approved Transaction is likely: 

  

	 	(i)	 Any consolidation, merger or plan of exchange involving the Company (“Merger”) in which the Company is not the continuing or
surviving corporation or pursuant to which Stock would be converted into cash, securities or other property, other than a Merger involving the Company in which the holders of Stock immediately prior to the Merger have the same proportionate
ownership of Stock of the surviving corporation after the Merger; or 

  

	 	(ii)	 Any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the
assets of the Company or the adoption of any plan or proposal for the liquidation or dissolution of the Company; or 

  

	 	(b)	 A tender or exchange offer, other than one made by the Company, is made for Stock (or securities convertible into Stock) and such offer
results in a portion of those securities being purchased and the offeror after the consummation of the offer is the beneficial owner (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), directly or indirectly, of at least twenty 20% of the outstanding Stock (an “Offer”); or 

  

	 	(c)	 During any period of 12 months or less, individuals who at the beginning of such period constituted a majority of the Board cease for any
reason to constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period.

 The terms used in this Section 2.6 and not defined elsewhere in the Plan shall have the same meanings as such terms
have in the Exchange Act and the rules and regulations adopted thereunder. Notwithstanding anything herein to the contrary, the conversion of the Company to stock form pursuant to a Plan of Conversion shall not be deemed to be a Change in Control
for purposes of this Plan. 

  
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	2.7	 Code 

“Code” means the Internal Revenue Code of 1986, as amended. 
  

	2.8	 Company 

“Company” means Fidelity Life Association, an Illinois corporation, or any successor to the business thereof. 

 

	2.9	 Compensation 

“Compensation” means the Salary, Bonus or Director Fees that the Participant earns for services rendered to the Company. 

 

	2.10	 Deferral Commitment 

 “Deferral Commitment” means an election to defer Compensation made by a Participant pursuant to Article III and for which a separate Participation Agreement has been submitted by the Participant
to the Administrative Committee. 
  

	2.11	 Deferral Period 

 “Deferral Period” means a calendar year for Directors and eligible employees effective January 1, 2006. 
  

	2.12	 Determination Date 

 “Determination Date” means the last day of each calendar month. 
  

	2.13	 Director 

“Director” means a member of the Company’s Board of Directors. 

 

	2.14	 Director Fees 

 “Director Fees” means all Board retainer and committee meeting fees earned by a Participant and payable in cash (before reduction for amounts deferred under this Plan). Director Fees do not
include expenses, reimbursements, or any form of noncash compensation or benefits. 
  

	2.15	 Disability 

A Participant shall be considered to have terminated employment or Board Service because of “Disability” if either of the following apply:

  

	 	(a)	 The Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

  
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	 	(b)	 The Participant is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the Participant’s employer.

  

	2.16	 Earnings Index 

 “Earnings Index” means a portfolio or fund selected by the Administrative Committee from time to time to be used as an index in calculating Rate of Return. 

 

	2.17	 Elective Deferred Compensation 

 “Elective Deferred Compensation” means the amount of Compensation that a Participant elects to defer pursuant to a Deferral Commitment. 

 

	2.18	 Employer 

“Employer” means the Company or any successor to the business thereof, and any affiliated or subsidiary corporations designated by the
Administrative Committee. 
  

	2.19	 Participant 

“Participant” means any eligible individual who has elected to defer Compensation under this Plan. 

 

	2.20	 Participation Agreement 

 “Participation Agreement” means the agreement submitted by a Participant (including the Benefit Payment Election Form) to the Administrative Committee prior to the beginning of the Deferral
Period, with respect to a Deferral Commitment made for such Deferral Period. 
  

	2.21	 Plan 

“Plan” means this Fidelity Life Association Deferred Compensation Plan, as amended from time to time. 

 

	2.22	 Rate of Return 

 “Rate of Return” means the rate used to determine the amount credited monthly to a Participant’s Account under Article IV. Such rate shall be determined by the Administrative Committee
based upon the net performance of the Earnings Indices selected by the Participant. 
  

	2.23	 Retirement 

“Retirement” means an employee’s termination of employment with Employer on or after the employee’s attainment of age 55 or after 5
years of service, or a Board member’s termination after age 55. 

  
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	2.24	 Salary 

“Salary” means the Employee’s base salary for the Plan Year. Salary excludes any other form of compensation such as restricted stock,
proceeds from stock options or stock appreciation rights, severance payments, moving expenses, car or other special allowance, or any other amounts included in an Eligible Employee’s taxable income that is not base salary. Deferral elections
shall be computed before taking into account any reduction in taxable income by Salary reduction under Code sections 125, 132(f) or 401(k), or under this Plan. 
  

	2.25	 Unforeseeable Emergency 

 “Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant, the Participant’s spouse, or a
dependent (as defined in Code section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the
Participant. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but in any case, the amounts distributed with respect to an Unforeseeable Emergency shall not exceed the amounts necessary to
satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance
or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). 
 ARTICLE III 
 PARTICIPATION AND DEFERRAL COMMITMENTS 

 

	3.1	 Eligibility and Participation 

  

	 	(a)	 ELIGIBILITY. Eligibility to participate in the Plan is limited to executive employees selected by the Administrative Committee and Directors.

  

	 	(b)	 PARTICIPATION. Eligible employees and Directors may elect to participate in the Plan with respect to any Deferral Period by submitting a
Participation Agreement to the Administrative Committee by the December 31 immediately preceding the Deferral Period, except as provided in (c) and (d) below. 

 

	 	(c)	 PART-YEAR PARTICIPATION. If a Director or an employee first becomes eligible to defer Compensation during a Deferral Period, a Participation
Agreement must be submitted to the Administrative Committee no later than 30 days following eligibility to defer, and such Participation Agreement shall be effective only with regard to Compensation with respect to services following the submission
of the Participation Agreement to the Administrative Committee. 

  
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	 	(d)	 BONUS. An employee must separately elect to defer amounts with respect to Bonuses under the Plan. The Participation Agreement to defer a Bonus
under the Plan must be submitted to the Administrative Committee before the latest of the following: 

  

	 	(i)	 the beginning of the Deferral Period for which the Company’s bonus, if any, will be paid; 

 

	 	(ii)	 to the extent permitted by Code section 409A, for Deferral Periods beginning after 2006, six months before the end of the Company’s
fiscal year for which the Bonus, if any, will be paid; or 

  

	 	(iii)	 for an employee who first becomes eligible during a Deferral Period, 30 days after he becomes eligible; provided, that the deferral election
for the first Deferral Period can only apply to compensation paid for service performed subsequent to the election. The maximum amount of the Bonus for the first Deferral Period that can be deferred is equal to the amount of the Bonus for the
Deferral Period multiplied by the ratio of the number of days remaining in the Deferral Period after the election over the total number of days in the Deferral Period. 

 

	3.2	 Form of Deferral 

 A Participant may elect Deferral Commitments in the Participation Agreement as follows: 
  

	 	(a)	 SALARY DEFERRAL COMMITMENT. A Salary Deferral Commitment shall be related to the Salary payable by Employer to a Participant for services to
be performed during the Deferral Period. The amount to be deferred shall be stated as a whole number percentage or dollar amount of each installment of Salary. 

 

	 	(b)	 BONUS DEFERRAL COMMITMENT. A Bonus Deferral Commitment shall be related to any Bonus payable under the Company’s Senior Management Bonus
Plan to the Participant for services to be performed during the Deferral Period for which the Bonus will be paid. The amount to be deferred shall be stated as a whole number percentage or dollar amount of the Bonus. 

 

	 	(c)	 DIRECTOR FEES DEFERRAL COMMITMENT. A Director Fees Commitment shall relate to the Director Fees for services as a Director to be performed
during the Deferral Period. The amount to be deferred shall be stated as a whole number percentage or dollar amount of the amount otherwise payable. 

  

	3.3	 Limitations on Deferral Commitments 

 The following limitations shall apply to Deferral Commitments: 
  

	 	(a)	 MINIMUM. The minimum deferral amount for a plan year shall be $1,000. Bonus amounts are included in the plan year in which the Bonus is
otherwise expected to be paid. The minimum may be met by aggregating amounts under all 

  
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	 	Salary, Bonus and Director Deferral Commitments under Section 3.2. The Administrative Committee may determine at any time that any deferral election that fails to
provide for a minimum deferral is void and amounts covered by that election shall not be excluded from compensation for the year. The Administrative Committee may determine the timing of payments of amounts under a void election.

  

	 	(b)	 MAXIMUM. The maximum deferral amount shall be 90% of Salary and 100% of Bonus or Director Fees. 

 

	 	(c)	 CHANGES IN MINIMUM OR MAXIMUM. The Administrative Committee may change the minimum or maximum deferral amounts from time to time by giving
written notice to all Participants. No such change may affect a Deferral Commitment made prior to the Administrative Committee’s action. 

  

	3.4	 Commitment Limited by Termination 

 If a Participant terminates employment with Employer or Board service prior to the end of the Deferral Period, the Deferral Period and the Deferral Commitment shall end at the date of termination.

 ARTICLE IV 
 DEFERRED COMPENSATION ACCOUNTS 
  

	4.1	 Accounts 

For record keeping purposes only, an Account shall be maintained for each Participant. Separate subaccounts shall be maintained to the extent necessary to
properly reflect the Participant’s election of Earnings Indices and total vested or nonvested Account balances. The Account shall be a bookkeeping device utilized for the sole purpose of determining the benefits payable under the Plan and shall
not constitute a separate fund of assets. 
  

	4.2	 Elective Deferred Compensation 

 A Participant’s Elective Deferred Compensation shall be credited to the Participant’s Account at the same time the corresponding nondeferred portion of the Compensation becomes or would have
become payable. Any withholding of taxes or other amounts with respect to deferred Compensation which is required by state, federal or local law shall be withheld from the Participant’s nondeferred Compensation to the maximum extent possible
with any excess reducing the amount to be credited to the Participant’s Account. 
  

	4.3	 Additional Company Matching Contributions 

 A Participant’s Account shall be credited with an amount that is equal to the amount of matching contribution that was not credited to the Participant’s accounts under the Fidelity Life
Association 401(k) Plan for the Deferral Period solely because the Participant’s deferrals under this Plan caused the Participant’s taxable compensation reported on IRS Form W-2 to be lower 

  
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 than if Participant had not deferred amounts under this Plan. However, the amount credited shall be no
more than the amount of the matching contribution that was not credited to the Participant’s Fidelity Life Association 401(k) Plan because of the reduction of taxable compensation. 

 

	4.4	 Additional Company Discretionary Contributions 

 A Participant’s Account shall be credited with such additional Company contributions in such amounts and at such times as may be approved by the Compensation Committee of the Board, or the Board, in
its sole discretion. 
  

	4.5	 Allocation of Elective Deferred Compensation 

 

	 	(a)	 At the time a Participant completes a Deferral Commitment for a Deferral Period, the Participant shall also select the Earnings Index or
Indices in which the Participant wishes to have the deferrals deemed invested. The Participant may select any combination of Earnings Indices as long as at least 5%, in whole percentages, is credited to each of the Earnings Indices selected.

  

	 	(b)	 A Participant may change the amounts allocated to the Earnings Indices on the first day of each calendar quarter, provided that the
Participant submitted notice of the change at least five days before the first day of the calendar quarter. The change may apply to prospective deferrals only or may include current account balances. 

 

	 	(c)	 The Administrative Committee may change the notice requirement and frequency by which Participants can reallocate their accounts from time to
time by giving written notice to all Participants. 

  

	4.6	 Determination of Accounts 

 Each Participant’s Account as of each Determination Date shall consist of the balance of the Participant’s Account as of the immediately preceding Determination Date, plus the Participant’s
Elective Deferred Compensation credited during the period, plus contributions for the benefit of the Participant during the period pursuant to Section 4.3 and 4.4, plus earnings calculated using the Rate of Return, minus the amount of any
distributions made since the immediately preceding Determination Date. 
  

	4.7	 Vesting of Accounts 

 Each Participant shall be 100% vested at all times in the Participant’s Elective Deferred Compensation and any earnings thereon. Any matching contributions under Section 4.3 shall vest pursuant
to the vesting schedule of the Fidelity Life Association 401(k) Plan. Any discretionary Company contributions under Section 4.4 shall vest on the basis determined by the Compensation Committee of the Board or the Board, as the case may be, that
approved the contribution. 

  
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	4.8	 Statement of Accounts 

 The Administrative Committee shall give to each Participant a statement setting forth the balances in the Participant’s Account on a quarterly basis and at such other times as may be determined by
the Administrative Committee. 
 ARTICLE V 
 PLAN BENEFITS 
  

	5.1	 Distributions Prior to Termination of Employment 

 A Participant’s Account may be distributed to the Participant prior to termination of employment as follows: 
  

	 	(a)	 SCHEDULED EARLY WITHDRAWALS. A Participant may elect in a Participation Agreement to withdraw all or any portion of the amount deferred (and
earnings thereon) pursuant to that Participation Agreement in a single lump sum or from two to five substantially equal annual installments commencing the first January and on each subsequent January following the date specified in the election.
Such date shall not be sooner than three years after the date the Deferral Period commences in which the scheduled early withdrawal was initially elected. Upon a Participant’s termination, the following shall apply:

  

	 	(i)	 EARLIER PAYMENT ON SCHEDULE. Payment of any amount that is scheduled to be withdrawn before the time provided in (ii) shall be
distributed on the date specified in the election. 

  

	 	(ii)	 SCHEDULE AFTER TERMINATION. Any balance subject to a Scheduled Early Withdrawal election shall be distributed in a lump sum within 60 days,
subject to Section 5.3. 

  

	 	(b)	 HARDSHIP WITHDRAWALS. A Participant may elect to withdraw amounts because of an Unforeseeable Emergency. The Administrative Committee shall
determine whether or not an Unforeseeable Emergency has occurred and the maximum amount that may be withdrawn. Any such hardship withdrawal distribution shall be payable within 30 days after the Administrative Committee approves such payment.

  

	5.2	 Distributions Following Termination of Service 

 

	 	(a)	 RETIREMENT OR DISABILITY BENEFIT. 

  

	 	(i)	 BENEFIT AMOUNT. If a Participant terminates employment or Board service with Employer due to Retirement or Disability, Employer shall pay to
the Participant a benefit equal to the balance in the Participant’s Account. 

  
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	 	(ii)	 FORM OF BENEFIT. Subject to Section 5.2(a)(iii), benefits under this Section 5.2(a) shall be paid in the form or forms selected by
the Participant in the Participation Agreement. Optional forms of payment shall include a lump-sum payment and substantially equal annual installments of the Account over a period of up to 15 years. 

 

	 	(iii)	 MANDATORY LUMP-SUM PAYMENTS. Notwithstanding Sections 5.2(a)(ii), (iv) and (v), if an employee terminates employment before age 55, or
with less than five years of service, or if a Director terminates Board service before age 55, or if a Participant’s Account is less than $50,000 on the Retirement date, a lump-sum payment will be made regardless of the distribution method the
Participant elected. 

  

	 	(iv)	 CHANGE IN FORM OF PAYMENT. A Participant may elect to change the form or forms of the payment or payments specified in the Participation
Agreements, subject to the following: 

  

	 	(A)	 The election to change may not take effect until at least 12 months after the date on which the election is made. The election shall be
ineffective with respect to benefits that start pursuant to a Participation Agreement or other terms of the Plan before the anniversary of the election. 

 

	 	(B)	 The first payment with respect to which the election is made shall be delayed for a period of not less than five years from the date that such
payment would otherwise have been made. The Participant may elect the period of delay, but the period of delay must not be less than five years nor more than ten years. The maximum period of annual installments under Section 5.2(a)(ii) shall be
reduced by the number of years of the period of delay. 

  

	 	(C)	 No amount may be paid sooner under the new election than under the original election. 

 

	 	(b)	 TERMINATION BENEFIT. If a Participant terminates employment or Board service with Employer for any reason other than Retirement, Disability,
or death, Employer shall pay to the Participant a lump-sum benefit equal to the balance in the Participant’s Account. 

  

	 	(c)	 DEATH BENEFIT. 

  

	 	(i)	 PRERETIREMENT. If a Participant terminates employment or Board service with Employer due to death, Employer shall pay to the
Participant’s Beneficiary a lump-sum benefit equal to the balance in the Participant’s Account. 

  

	 	(ii)	 POSTRETIREMENT. If a Participant dies following the Participant’s Retirement, Employer shall continue to pay any remaining benefit
payments to the Participant’s Beneficiary in the form previously elected by the Participant for Retirement benefits. 

  
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	5.3	 Benefit Commencement 

 Commencement of benefits shall be subject to the following: 
  

	 	(a)	 Subject to subsection (b) below and any election under Section 5.2(a)(ii) to commence in January following termination, benefits
under Section 5.2 shall commence as soon as practicable after termination but in no case more than 60 days after termination. 

  

	 	(b)	 Distributions on account of termination may not be made to a Participant who is a key employee, as defined in Code section 416(i) without
regard to Code section 416(i)(5), before the date which is six months after the date of termination of service with Employer. If the Participant terminates service because of death or if the Participant dies before or within the six months, benefits
shall commence as soon as practicable after death, but in no case no more than 60 days after death. 

  

	5.4	 Deferred Payment of Benefit 

 If part of a Participant’s compensation is not deductible under Code section 162(m), then the Company may require the Participant to defer payment of benefits under this Article to avoid the
limitation set forth in Code section 162(m). Any deferred benefits under this Section shall be distributed to the Participant in the first calendar year such amounts would not exceed the limitation as set out in Code section 162(m). 

 

	5.5	 Withholding for Taxes 

 To the extent required by the law in effect at the time payments are made, Employer shall withhold from payments made hereunder any taxes required to be withheld by the federal or any state or local
government, including any amounts which the Employer determines are reasonably necessary to pay any generation-skipping transfer tax which is or may become due. A beneficiary, however, may elect not to have withholding of federal income tax pursuant
to Code section 3405, or any successor provision thereto. 
  

	5.6	 Valuation and Settlement 

 The amount of a lump-sum payment and the initial installment payment shall be based on the value of the Participant’s Account on the Determination Date immediately preceding the lump-sum payment or
commencement of installment payments. 
  

	5.7	 Payment to Guardian 

 The Administrative Committee may direct payment to the duly appointed guardian, conservator, or other similar legal representative of a Participant or Beneficiary to whom payment is due. In the absence of
such a legal representative, the Administrative Committee may, in it sole and absolute discretion, make payment to a person having the care and custody of a minor, 

  
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 incompetent or person incapable of handling the disposition of property upon proof satisfactory to the
Administrative Committee of incompetency, minority, or incapacity. Such distribution shall completely discharge the Administrative Committee from all liability with respect to such benefit. 

ARTICLE VI 

BENEFICIARY DESIGNATION 
  

	6.1	 Beneficiary Designation 

 Each Participant shall have the right, at any time, to designate a Beneficiary (both primary as well as contingent) to whom benefits under this Plan shall be paid if a Participant dies prior to complete
distribution to the Participant of the benefits due under the Plan. Each Beneficiary designation shall be in a written form prescribed by the Administrative Committee, and will be effective only when filed with the Administrative Committee during
the Participant’s lifetime. 
  

	6.2	 Changing Beneficiary 

 Any Beneficiary designation may be changed by a Participant without the consent of the previously named Beneficiary by the filing of a new Beneficiary designation with the Administrative Committee. The
filing of a new Beneficiary designation shall cancel all Beneficiary designations previously filed. If a Participant’s Compensation is community property, any Beneficiary Designation shall be valid or effective only as permitted under
applicable law. 
  

	6.3	 No Beneficiary Designation 

 In the absence of an effective Beneficiary Designation, or if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, the
Participant’s designated Beneficiary shall be deemed to be the Participant’s estate. 
  

	6.4	 Effect of Payment 

 Payment to the Beneficiary shall completely discharge Employer’s obligations under this Plan. 
 ARTICLE VII 
 ADMINISTRATION 

 

	7.1	 Committee; Duties 

 The Plan shall be administered by an Administrative Committee consisting of three or more members as may be appointed from time to time by the Chief Executive Officer. The Administrative Committee shall
have the authority to interpret and enforce all appropriate rules and regulations for the administration of the Plan and decide or resolve any and all questions, including determination of eligibility and interpretations of the Plan, as may arise in
such administration. A majority vote of the Administrative Committee members in office at the time of the vote shall control any decision. The required majority action may be taken either by a

  
 12 

 vote at a meeting or without a meeting by a signed memorandum. Meetings may be conducted by telephone
conference call. The Administrative Committee may, by majority action, delegate to one or more of its members the authority to execute and deliver in the name of the Administrative Committee all communications and documents which the Administrative
Committee is required or authorized to provide under this Plan. 
 Any party shall accept and rely upon any document executed in the name of the
Administrative Committee. Members of the Administrative Committee may be Participants under this Plan. 
  

	7.2	 Agents 

 The
Administrative Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with counsel who may be counsel to the Company. 

 

	7.3	 Binding Effect of Decisions 

 The decision or action of the Administrative Committee with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and
regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan. 
  

	7.4	 Indemnity of Committee 

 The Company shall indemnify and hold harmless the members of the Administrative Committee against any and all claims, loss, damage, expense or liability arising from any action or failure to act with
respect to this Plan on account of such person’s service on the Administrative Committee, except in the case of gross negligence or willful misconduct. 
 ARTICLE VIII 
 CLAIMS PROCEDURE 

 

	8.1	 Claim 

 Any
person claiming a benefit, requesting an interpretation or ruling under the Plan, or requesting information under the Plan shall present the request in writing to the Administrative Committee which shall respond in writing within 30 days.

  

	8.2	 Denial of Claim 

 If the claim or request is denied, the written notice of denial shall state: 
  

	 	(a)	 The reason for denial, with specific reference to the Plan provisions on which the denial is based. 

 

	 	(b)	 A description of any additional material or information required and an explanation of why it is necessary. 

 

	 	(c)	 An explanation of the Plan’s claim review procedure. 

  
 13 

	8.3	 Review of Claim 

  

	 	(a)	 Any person whose claim or request is denied or who has not received a response within 30 days may request review by notice given in writing to
the Administrative Committee. The claim or request shall be reviewed by the Administrative Committee who may, but shall not be required to, grant the claimant a hearing. On review, the claimant may have representation, examine pertinent documents,
and submit issues and comments in writing. 

  

	 	(b)	 Such notice shall be made within the lesser of 90 days of notice of denial or 120 days of the original written claim.

  

	8.4	 Final Decision 

 The decision on review shall normally be made within 60 days. If an extension of time is required for a hearing or other special circumstances, the claimant shall be notified and the time limit shall be
120 days. The decision shall be in writing and shall state the reason and the relevant plan provisions. All decisions on review shall be final and bind all parties concerned. 
 ARTICLE IX 
 AMENDMENT AND TERMINATION OF PLAN 

 

	9.1	 Amendment 

  

	 	(a)	 The Company may amend the Plan at any time and from time to time by written instrument. Except as provided in (b) below, the power to
amend may be executed only by the Board. 

  

	 	(b)	 The Administrative Committee may adopt any technical, clerical, conforming or clarifying amendment or other change, provided:

  

	 	(i)	 The Administrative Committee deems it necessary or advisable to: 

 

	 	(A)	 correct any defect, supply any omission or reconcile any inconsistency in order to carry out the intent and purposes of the Plan;

  

	 	(B)	 maintain the Plan’s status as a “top-hat” plan for purposes of ERISA; or 

 

	 	(C)	 facilitate the administration of the Plan; 

  

	 	(ii)	 The amendment or change does not, without the consent of the Board, materially increase the cost to the Employer of maintaining the Plan; and

  
 14 

	 	(iii)	 Any amendment adopted by the Administrative Committee shall be in writing, signed by a member of the Committee and promptly reported to the
Board. 

  

	 	(c)	 To the extent permitted under subsections (e) and (f) below, amendments may have an immediate, prospective or retroactive effective
date. 

  

	 	(d)	 Amendments do not require the consent of any Participant or Beneficiary. 

 

	 	(e)	 Amendments are subject to the following limitations: 

 

	 	(i)	 PRESERVATION OF ACCOUNT BALANCE. No amendment shall reduce the amount credited or to be credited to any Account as of the date notice of the
amendment is given to Participants, except as provided in subsection (f) below. 

  

	 	(ii)	 CHANGES IN EARNINGS RATE. If the Plan is amended so that the Earnings Index is not used to calculate the Rate of Return, the rate of earnings
to be credited to the Participant’s Account shall not be less than the monthly equivalent of the average nominal annual yield on three month Treasury bills for the applicable Determination Period. 

 

	 	(iii)	 AFTER A CHANGE IN CONTROL. No amendment shall change the methodology used to calculate the Rate of Return in any way which will lower the
Participant’s returns on any amounts deferred under Deferral Commitments filed prior to the Change in Control. All amounts deferred under Deferral Commitments filed prior to a Change in Control shall be paid as originally elected by the
Participant unless the Participant voluntarily changes such distribution elections in accordance with Section 5.2(a)(iv) or (v). 

  

	 	(f)	 The Company may amend the Plan from time to time to comply with Code section 409A and such amendments shall not be subject to restrictions in
subsection (e). If an amendment reduces amounts that have been deferred, the Employer shall increase the compensation of the Participant to restore the Participant, as nearly as practicable, to the position as if the reduced amount had not been
deferred, but without adjustment for earnings or other time value of money. 

  

	9.2	 Employer’s Right to Terminate 

 The Board may at any time partially or completely terminate the Plan if, in its judgment, the tax, accounting or other effects of the continuance of the Plan, or potential payments thereunder would not be
in the best interests of Employer. 
  

	 	(a)	 PARTIAL TERMINATION. The Board may partially terminate the Plan by instructing the Administrative Committee not to accept any additional
Deferral Commitments. If such a partial termination occurs, the Plan shall continue to operate and be effective with regard to Deferral Commitments entered into prior to the effective date of such partial termination. 

  
 15 

	 	(b)	 COMPLETE TERMINATION. The Board may completely terminate the Plan by instructing the Administrative Committee not to accept any additional
Deferral Commitments, and by terminating all ongoing Deferral Commitments. If such a complete termination occurs, the Plan shall cease to operate. If such complete termination is not upon a corporate dissolution taxed under section 331 of the Code
and is without the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), Employer shall pay out each Account no earlier than 12 months from the date of the plan termination and no later than 24 months from such date. Payment shall
be made in a lump sum, except as follows. If a Change in Control has occurred within the 12 months prior to the termination of the Plan, payment shall be made in the installment schedule elected by the Participant for payment upon Retirement.
Subject to the restrictions on payments to terminated key employees in Section 5.3, payments shall commence within 60 days after the Board terminates the Plan and earnings shall continue to be credited on the unpaid Account balance.

 ARTICLE X 
 MISCELLANEOUS 
  

	10.1	 Unfunded Plan 

 As to employees, this Plan is an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly-compensated employees” within the
meaning of sections 201, 301 and 401 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA. 

As to Directors, this Plan is not subject to ERISA because it does not provide benefits for employees. 

 

	10.2	 Unsecured General Creditor 

 Participants and Beneficiaries shall be unsecured general creditors, with no secured or preferential right to any assets of Employer or any other party for payment of benefits under this Plan. Any life
insurance policies, annuity contracts or other property purchased by Employer in connection with this Plan shall remain its general, unpledged and unrestricted assets. Employer’s obligation under the Plan shall be an unfunded and unsecured
promise to pay money in the future. 
  

	10.3	 Trust Fund 

At its discretion, the Company may establish one or more trusts, with such trustees as the Company may approve, for the purpose of providing for the
payment of benefits owed under the Plan. Although such a trust shall be irrevocable, its assets shall be held for payment of all the 

  
 16 

 Company’s general creditors in the event of insolvency or bankruptcy. To the extent any benefits
provided under the Plan are paid from any such trust, the Employers shall have no further obligation to pay them. If not paid from the trust, such benefits shall remain the obligation of the applicable Employer(s). 

 

	10.4	 Nonassignability 

 Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual
receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be unassignable and nontransferable. No part of the amounts payable shall, prior to actual payment, be subject to
seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s
bankruptcy or insolvency. 
  

	10.5	 Not a Contract of Employment 

 This Plan shall not constitute a contract of employment between an Employer and a Participant. Nothing in this Plan shall give a Participant the right to be retained in the service of an Employer or to
interfere with the right of an Employer to discipline or discharge a Participant at any time. 
  

	10.6	 Protective Provisions 

 A Participant will cooperate with the Company by furnishing any and all information requested by the Company in order to facilitate the payment of benefits hereunder, and by taking such physical
examinations as the Company may deem necessary and taking such other action as may be requested by the Company. 
  

	10.7	 Governing Law 

 The provisions of this Plan shall be construed and interpreted according to the laws of the State of Illinois, except as preempted by federal law. 

 

	10.8	 Validity 

In case any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts
hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein. 
  

	10.9	 Notice 

 Any
notice required or permitted under the Plan shall be sufficient if in writing and hand delivered or sent by registered or certified mail. Such notice shall be deemed as given as of the date of delivery or, if delivery is made by mail, as of the date
shown on the postmark on the receipt for registration or certification. Mailed notice to the Administrative Committee shall be directed to the Company’s address. Mailed notice to a Participant or Beneficiary shall be directed to the
individual’s last known address in Employer’s records. 

  
 17 

	10.10	 Successors 

The provisions of this Plan shall bind and inure to the benefit of Employer and its successors and assigns. The term successors as used herein shall
include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of Employer, and successors of any such corporation or other business
entity. 
  

	10.11	 Compliance with Code Section 409A 

 This Plan is intended to comply and shall be administered in a manner that is intended to comply with Code section 409A and shall be construed and interpreted in accordance with such intent. To the extent
that a payment and/or benefit is subject to Code section 409A, it shall be paid in a manner that will comply with Code section 409A, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and
the Internal Revenue Service with respect thereto (the “Guidance”). Any provision of this Plan that would cause a payment and/or benefit to fail to satisfy Code section 409A shall have no force and effect until amended to comply with Code
section 409A (which amendment may be retroactive to the extent permitted by the Guidance). 
 Approved by the Board of Directors of the Company
on May 9th, 2006 

  
 18EX-10.2

 Exhibit 10.2 

EMPLOYMENT AGREEMENT 

Vericity Holdings, Inc., a Delaware corporation (the “Company”), and
                                         
    (“Executive”) (collectively, the “Parties”) agree to enter into this EMPLOYMENT AGREEMENT dated as of
                                         
    (“Agreement”) as follows: 
 1. EMPLOYMENT. 

The Company hereby agrees to continue to employ Executive, and Executive hereby agrees to be employed by the Company, upon the terms and subject to the
conditions set forth in this Agreement. 
 2. TERM OF EMPLOYMENT. 

The period of Executive’s employment under this Agreement shall begin as of
                                         
        and shall continue until terminated in accordance with Section 5 below. As used in this Agreement, the phrase “Employment Term” refers to Executive’s period of employment from the date of
this Agreement until the date executive’s employment is terminated. 
 3. DUTIES AND
RESPONSIBILITIES. 
  

	(a)	 The Company will initially employ Executive as its
                                         
        (as the responsibilities may evolve, executive’s “Position”). In such capacity, Executive shall perform the customary duties and have the customary responsibilities of such positions and such
other duties as may be assigned to Executive from time to time by
                                         
           . 

  

	(b)	 Executive agrees to faithfully serve the Company, devote executive’s full working time, attention and energies to the business of
the Company, its subsidiaries and affiliated entities, and perform the duties under this Agreement to the best of executive’s abilities. Executive may participate in other outside business, charitable and/or civic activities provided that such
activities are not inconsistent with Executive’s duties under this Agreement and will not be disadvantageous to the Company. 

  

	(c)	 Executive agrees (i) to comply with all applicable laws, rules and regulations; (ii) to comply with the Company’s rules,
procedures, policies, requirements, and directions; and (iii) not to engage in any other business or employment without the written consent of the Company except as otherwise specifically provided herein. 

4. COMPENSATION AND BENEFITS. 

 

	(a)	 Base Salary. During the Employment Term, the Company shall pay Executive a base salary at the annual rate of
$                                     per year or such higher rate as
may be determined from time to time by the Company (“Base Salary”). Such Base Salary shall be paid in accordance with the Company’s standard payroll practice for executives. 

 

	(b)	 Expense Reimbursement. The Company shall promptly reimburse Executive for the ordinary and necessary business expenses incurred by
Executive in the performance of the duties under this Agreement in accordance with the Company’s customary practices applicable to executives, provided that such expenses are incurred and accounted for in accordance with the
Company’s policy. 

  

	(c)	 Benefit Plans, Fringe Benefits and Vacations. During the Term of Employment, the Executive shall be entitled to participate in all
employee profit sharing and welfare benefit plans and programs made available to the Company’s senior level executives or to its employees generally, 

	 	
as such plans or programs may be in effect from time to time, including, without limitation, profit sharing, savings and other retirement plans or programs, 401(k), medical, dental,
hospitalization, short-term and long-term disability and life insurance plans, accidental death and dismemberment protection, travel accident insurance, and any other retirement plans or programs and any other employee welfare benefit plans or
programs that may be sponsored by the Company from time to time, including any plans that supplement the above-listed types of plans or programs, whether funded or unfunded. Notwithstanding the above, Company shall have no obligation to provide
benefits to Executive for which Executive does not qualify pursuant to the terms of the benefit plans or programs as a result of the limited term of Executive’s employment under this Agreement. 

 

	(d)	 Annual Cash Incentive Program. Executive shall be eligible to participate in the Company’s annual cash incentive program, based on
achieving certain performance objectives as set by the Board. The Target payment under the Annual Cash Incentive Program shall equal     % (“Target Percentage”) of Base Salary or such higher amount as may be determined
from time to time by the Company. 

  

	(e)	 Change in Control Plan. Executive shall be eligible to participate in the Company’s Change in Control Plan, as it may be amended
from time to time. However, prior to December 31, 2021, the Executive shall be exempt from any such amendments that materially diminish benefits to the Executive. However, Executive shall be eligible to participate in any retention incentives
as approved by the Board or as part of any additional Agreement in contemplation of a Change in Control. 

  

	(f)	 Long Term Incentive Plan. Executive shall be eligible to participate in the Company’s Long Term Incentive Plan, as it may be
amended from time to time. However, prior to December 31, 2021, the Executive shall be exempt from any such amendments that materially diminish benefits to the Executive. 

 

	(g)	 Long Term Equity Incentive Plan. To the extent the Company becomes a public company, Executive shall be eligible to participate in the
Company’s Long Term Equity Incentive Plan, as it may be amended from time to time. 

 5. TERMINATION
OF EMPLOYMENT. 
 Executive’s employment under this Agreement may be terminated under any of the
circumstances set forth in this Section 5. Upon termination, Executive (or executive’s beneficiary or estate, as the case may be) shall be entitled to receive the compensation and benefits described in Section 6 below, and, if
applicable, Section 7 below. 
  

	(a)	 Death. Executive’s employment shall terminate upon Executive’s death. 

 

	(b)	 Total Disability. The Company may terminate Executive’s employment upon executive’s becoming “Totally Disabled”.
For purposes of this Agreement, the term “Totally Disabled” shall mean the Executive is unable to perform the normal full-time services Executive was performing prior to the onset of any sickness, injury or disability for a consecutive
period of one hundred eighty (180) days with no reasonable prospect of returning to normal full-time service. A determination of “Totally Disabled” shall be made by the Company in its sole discretion. During the period of
“Total Disability” as set forth herein, Executive’s compensation shall be governed exclusively by the Company’s short-term and long-term disability plans, if any, as applicable. 

  
 2 

	(c)	 Termination by the Company for Cause. The Company may terminate Executive’s employment for Cause at any time after providing
written notice to Executive. For purposes of this Agreement, the term “Cause” shall mean: 

  

	 	(i)	 indictment by federal or state authorities in respect of any crime that involves – in the good faith judgment of the Company
– theft, dishonesty or breach of trust; 

  

	 	(ii)	 conviction of any felony; 

  

	 	(iii)	 commission of any act or omission that results in, or may reasonably be expected to result in, a conviction, plea of no contest, plea
of nolo contendere, or imposition of unadjudicated probation for any felony; 

  

	 	(iv)	 deliberate and repeated refusal to perform the customary employment duties reasonably related to executive’s Position (other than
as a result of vacation, sickness, illness or injury); 

  

	 	(v)	 in the good faith judgment of the Company, fraud or embezzlement of Company property or assets; 

 

	 	(vi)	 misconduct or malfeasance (intentional or reckless wrongdoing with or without malicious or tortious intent) that may, in the good faith
judgment of the Company, have a material adverse effect on the Company; or 

  

	 	(vii)	 a breach or violation of any provision of this Agreement. 

 

	(d)	 Termination by the Company without Cause. The Company may terminate Executive’s employment without Cause at any time after
providing written notice to Executive. 

  

	(e)	 Termination by Executive. Executive may terminate executive’s employment under this Agreement after providing not less than thirty
(30) days’ advance written notice to the Company. 

 6. COMPENSATION FOLLOWING
TERMINATION OF EMPLOYMENT. 
 Upon termination of Executive’s employment under this
Agreement, Executive (or executive’s designated beneficiary or estate, as the case may be) shall be entitled to receive the following compensation: 
  

	(a)	 Earned but Unpaid Compensation, Expense Reimbursement. The Company shall pay Executive any accrued but unpaid Base Salary for services
rendered to the date of termination, any accrued but unpaid expenses required to be reimbursed under this Agreement, and any vacation accrued to the date of termination. 

 

	(b)	 Other Compensation and Benefits. Except as may be provided under this Agreement, 

 

	 	(i)	 any benefits to which Executive may be entitled pursuant to the plans, policies and arrangements referred to in Section 4(c), (d)
or (e) above shall be determined and paid in accordance with the terms of such plans, policies and arrangements, and 

  

	 	(ii)	 Executive shall have no right to receive any other compensation, or to participate in any other plan, arrangement or benefit, with
respect to future periods after such termination or resignation. 

  
 3 

 7. ADDITIONAL COMPENSATION PAYABLE
FOLLOWING TERMINATION WITHOUT CAUSE. 
  

	(a)	 Requirements for Additional Compensation. In addition to the compensation set forth in Section 6 above, Executive will receive the
additional compensation set forth in subsection (b) below, if the following requirements are met: 

  

	 	(i)	 Executive’s employment is terminated by the Company pursuant to Section 5(d) above and there has NOT been a Change in Control
of the Company (as defined in the Vericity Holdings, Inc. Change in Control Severance Benefits Plan (the “CIC Plan”)) entitling Executive to benefits under the CIC Plan; 

 

	 	(ii)	 Executive strictly abides by the restrictive covenants set forth in Section 8 below; and 

 

	 	(iii)	 Executive (or in the case of death of the Executive, the Executive’s representative) executes (and does not revoke) a separation
agreement and release in a form that is reasonable, customary, consistent with this agreement and acceptable to the Company (Company’s acceptance may not be unreasonably withheld) on or after executive’s employment termination date, but no
later than the date required by the Company in accordance with applicable law. 

  

	(b)	 Additional Compensation. The Company shall provide Executive with the following compensation and benefits:

  

	 	(i)	 An amount equal to eighteen months of Executive’s then current Base Salary, paid in equal monthly installments over the that period
immediately following Executive’s termination of employment (the “Severance Payments”); provided, that the first installment payment of the Severance Payments shall be made on the sixtieth (60th) day after the date of Executive’s termination, and will
include payment of any installment payments that were otherwise due prior thereto; plus 

  

	 	(ii)	 An amount equal to the target of executive’s bonus under the Annual Cash Incentive Program reflecting payment of the target percentage
multiplied by eighteen months of Executive’s then current Base Salary, paid in equal monthly installments over the eighteen month period immediately following Executive’s termination of employment (the “Severance Payments”);
provided, that the first installment payment of the Severance Payments shall be made on the sixtieth (60th) day after the date of Executive’s termination, and will include payment of any installment payments that were otherwise due prior thereto; plus 

 

	 	(iii)	 subject to (x) Executive’s timely election of continuation coverage under COBRA, and (y) Executive’s continued
copayment of premiums at the same level and cost to Executive as if Executive were an employee of the Company (excluding, for purposes of calculating cost, an employee’s ability to pay premiums with
pre-tax dollars), continued payment by the Company of executive’s health insurance coverage during the eighteen month period following the date of termination to the same extent that the Company
paid for such coverage immediately prior to the date of termination, in a manner intended to avoid any excise tax under Section 4980D of the Internal Revenue Code of 1986, as amended (the “Code”), subject to the eligibility
requirements and other terms and conditions of such insurance coverage. 

 8. RESTRICTIVE
COVENANTS 
  

	(a)	 Confidential Information/Competitive Business. 

  
 4 

	 	(i)	 Confidential Information and Trade Secrets. Executive agrees that during the course of employment with the Company, Executive has and
will come into contact with and have access to various forms of Confidential Information and Trade Secrets, which are the property of the Company. This information relates both to the Company, its customers, vendors and its employees. For purposes
of this Agreement, the term “Confidential Information and Trade Secrets” means all information not generally known to the public that Executive acquires or learns of during the course of Executive’s employment with the Company that
relates to:: 

  

	 	(A)	 information with respect to costs, commissions, expirations, fees, profits, sales, markets, products and product formulae, mailing
lists, strategies and plans for future business, new business, product or other development, new and innovative product ideas, potential acquisitions or divestitures, and new marketing ideas; 

 

	 	(B)	 product formulations, algorithms, system designs, site maps, information processing methodologies, software, software coding
methodologies, website functionality, information security processes, business methods, procedures, devices, machines, equipment, data processing programs, software computer models, research projects, system customizations, program implementation
plans, and other information and means used by the Company in the conduct of its business; 

  

	 	(C)	 the identity of the Company’s customers and product end users, their names and addresses, the names of representatives of the
Company’s customers responsible for entering into contracts with the Company, the amounts paid by such customers to the Company, specific customer needs and requirements, and leads and referrals to prospective customers; and

  

	 	(D)	 the identity and number of the Company’s employees, their salaries, bonuses, benefits, qualifications and abilities;

 all of which information Executive acknowledges and agrees has been developed, compiled or acquired by the
Company at its great effort and expense. Confidential Information and Trade Secrets can be in any form: oral, written or machine readable, including electronic files. 
  

	 	(ii)	 Secrecy of Confidential Information and Trade Secrets Essential. Executive acknowledges and agrees that the Company is engaged in a
highly competitive business and that its competitive position depends upon its ability to maintain the confidentiality of the Confidential Information and Trade Secrets which were developed, compiled and acquired by the Company over a considerable
period of time and at its great effort and expense. Executive further acknowledges and agrees that any disclosure, divulging, revelation or use of any of the Confidential Information and Trade Secrets, other than in connection with the
Company’s business or as specifically authorized by the Company, will be highly detrimental to the Company, and that serious loss of business and pecuniary damage may result therefrom. 

 

	(b)	 Non-Disclosure of Confidential Information. Accordingly, Executive agrees, except as
specifically required in the performance of executive’s duties on behalf of the Company, Executive will not, while associated with the Company and for so long thereafter as the pertinent information or documentation remains confidential,
directly or indirectly use, disclose or disseminate to any other person, organization or entity or otherwise use any of the Company’s Confidential Information and Trade Secrets; further Executive agrees to maintain Company’s

  
 5 

	 	
Confidential Information and Trade Secrets in strict confidence and to use all commercially reasonable efforts to not allow any unauthorized access to, or disclosure of, the Company’s
Confidential Information and Trade Secrets. Notwithstanding the foregoing, pursuant to the federal Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under federal or state trade secret law for the disclosure
of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected
violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. 

  

	(c)	 Return of Material. Executive further agrees to deliver to the Company, immediately upon resignation or separation from the Company or
at any other time the Company so requests to return any of the following that may be in executive’s possession or under executive’s control: 

  

	 	(i)	 any and all documents, files, notes, memoranda, databases, computer files and/or other computer programs reflecting any Confidential
Information and Trade Secrets whatsoever, or otherwise relating to the Company’s business; 

  

	 	(ii)	 lists of the Company’s customers or leads or referrals to prospective customers; 

 

	 	(iii)	 any computer equipment, home office equipment, automobile or other business equipment belonging to the Company which Executive may then
possess or have under executive’s control; and 

  

	 	(iv)	 all product formulations, algorithms, system designs, site maps, information processing methodologies, software, software coding
methodologies, website functionality, information security processes, business methods, procedures, devices, machines, equipment, data processing programs, software computer models, research projects, system customizations, program implementation
plans and other information and means used by the Company in the conduct of its business. 

  

	(d)	 No Competitive Activity. Executive acknowledges and agrees that the Company is engaged in a highly competitive business and that by
virtue of Executive’s position and responsibilities with the Company and Executive’s access to the Confidential Information and Trade Secrets, engaging in any business which is directly competitive with the Company will cause Company great
and irreparable harm. Therefore, Executive covenants and agrees that at all times 

  

	 	(i)	 during executive’s period of employment with the Company, and 

 

	 	(ii)	 during the period beginning on the date of termination of executive’s employment (whether such termination is voluntary or
involuntary, for Cause or without Cause, or otherwise) and ending on the later of (A) one (1) year following executive’s date of termination or (B) the last date on which Executive receives compensation and benefits
pursuant to Section 7 above, 

 Executive shall not, within the “Territory”: (1) directly or
indirectly, engage in, assist, or have any active interest or involvement—whether as an employee, agent, consultant, creditor, advisor, officer, director, stockholder (excluding holding of less than 1% of the stock of a public company),
partner, proprietor or any type of principal whatsoever – in any person, firm, or business entity which engages in business competitive with the Company, or any person, firm, or business entity which is planning to engage in business
competitive with the Company; or (2) be employed in a managerial or executive capacity by any person, firm, or business entity which engages in business competitive with the Company or any person, firm, or business entity which

  
 6 

 
is planning to engage in business competitive with the Company.    For purposes of this Section 8(d), “Territory” shall be defined as the United States or, if
Executive did not have job responsibilities which were nationwide in scope while employed by the Company, any state for which Executive was responsible or in which Executive worked during Executive’s employment with the Company. 

However, notwithstanding the above, the Company and I recognize and agree that I have worked in the insurance industry and have been an
industry executive and we agree that I am not prevented from being employed by or consulting with a competitor or company client, provided I adhere to the confidentiality, non-solicitation and non-disparagement sections of this Section 8 of this agreement, and provided the breadth of business with whom I might affiliate and the services that I might provide in connection with that affiliation are not
solely or materially focused on an non medically underwritten life insurance products. For avoidance of doubt, this agreement is not intended to prevent me from earning a living in the industry where I have experience, reputation and expertise, but
this agreement ensures that I will not start or take material ownership in a competing organization, divulge or use confidential information, or solicit the Company’s employees or customers in connection with any such future employment or
consulting. 
  

	(e)	 Non-Solicitation of Customers. Executive acknowledges and agrees that solely by reason of
employment by the Company, Executive has and will come into contact with some, most or all of the Company’s customers and will have access to Confidential Information and Trade Secrets regarding the Company’s customers as set forth in
Section 8(a) of this Agreement. Therefore, Executive covenants and agrees that at all times during the period beginning on the date of termination of executive’s employment (whether such termination is voluntary or involuntary, for Cause
or without Cause, or otherwise) and ending on the later of (A) one (1) year following executive’s date of termination or (B) the last date on which Executive receives compensation and benefits pursuant to Section 7
above, Executive shall not directly or indirectly, solicit, contact, do business with, call upon, or communicate with any customer, former customer or prospective customer of the Company for the purpose of providing any product or service that was
provided (or that was contemplated to be provided) by the Company at the time of Executive’s separation from employment. This restriction shall apply to any customer, former customer or prospective customer of the Company with whom Executive
had contact or about whom Executive obtained Confidential Information or Trade Secrets during the twenty-four (24) months preceding Executive’s separation from employment with the Company. 

 

	(f)	 Non-Solicitation of Employees. Executive acknowledges and agrees that solely as a result of
employment with the Company, Executive has and will come into contact with and acquire confidential information regarding some, most, or all of the Company’s employees. Therefore, Executive covenants and agrees that at all times

  

	 	(i)	 during executive’s period of employment with the Company, and 

 

	 	(ii)	 during the period beginning on the date of termination of executive’s employment (whether such termination is voluntary or
involuntary, for Cause or without Cause, or otherwise) and ending on the later of (A) one (1) year following executive’s date of termination or (B) the last date on which Executive receives compensation and benefits
pursuant to Section 7 above, 

 Executive shall not, either on Executive’s own account or on behalf
of any person, firm, or business entity, recruit, solicit, interfere with, or endeavor to cause any employee of the Company with whom Executive came into contact or about whom Executive obtained confidential information, to leave his or her
employment with the Company, or to work in a capacity that is competitive with the Company, or to work in a capacity that is 

  
 7 

 
similar to the capacity in which the employee was employed by the Company. 
  

	(g)	 Non-Disparagement. Executive covenants and agrees that during the course of executive’s
employment by the Company and at any time thereafter, Executive shall not, directly or indirectly, in public or private, deprecate, impugn, disparage, or make any remarks that would tend to or be construed to tend to defame the Company, its products
or services, or any of its officers, directors, employees, or agents; nor shall Executive assist any other person, firm or Company in so doing. 

  

	(h)	 Conflict of Interest. Executive may not use executive’s position at the Company, or knowledge of any of the Company’s
Confidential Information or Trade Secrets, or any of the Company’s assets, for personal gain. A direct or indirect financial interest, including joint ventures in or with a supplier, vendor, customer or prospective customer without disclosure
and written approval from the Board is strictly prohibited. 

 9. ENFORCEMENT OF
COVENANTS. 
  

	(a)	 Termination of Employment and Forfeiture of Compensation. Executive agrees that in the event that the Company determines that executive
has breached any of the covenants set forth in Section 8 above during executive’s employment, the Company shall have the right to terminate executive’s employment for Cause. In addition, Executive agrees that if the Company determines
that he has breached any of the covenants set forth in Section 8 at any time, the Company shall have the right to discontinue any or all remaining benefits payable pursuant to Section 7 above, as applicable. Such termination of employment
or discontinuance of benefits shall be in addition to and shall not limit any and all other rights and remedies that the Company may have against Executive and the separation agreement and release set forth in Section 7(a)(iii) shall remain in
full force and effect. 

  

	(b)	 Right to Injunction. Executive acknowledges and agrees that compliance with the covenants set forth in this Agreement is necessary to
protect the business and goodwill of the Company and any breach of the covenants set forth in Section 8 above will cause irreparable damage to the Company with respect to which the Company’s remedy at law for damages will be inadequate.
Therefore, in the event of breach or anticipatory breach of the covenants set forth in this Section 8 by Executive, Executive and the Company agree that the Company shall in addition to any remedies otherwise available to it at law or equity be
entitled to relief in the form of injunctions, both preliminary and permanent, enjoining or retraining such breach or anticipatory breach and Executive hereby consents to the issuance thereof forthwith and without bond by any court of competent
jurisdiction. 

  

	(c)	 Separability of Covenants. The covenants contained in Section 8 above constitute a series of separate covenants, one for each
applicable State in the United States and the District of Columbia, and one for each applicable foreign country. If in any judicial proceeding, a court shall hold that any covenant set forth in Section 8 is not permitted by applicable law, then
Executive and the Company agree that such provision shall and is hereby reformed to the maximum time, geographic, or occupational limitations permitted by such laws. Further, in the event a court shall hold unenforceable any of the separate
covenants deemed included herein, then such unenforceable covenant or covenants shall be deemed eliminated from the provisions of this Agreement for the purpose of such proceeding to the extent necessary to permit the remaining separate covenants to
be enforced in such proceeding. Executive and the Company further agree that the covenants in Section 8 shall each be construed as a separate agreement independent of any other provisions of this Agreement, and the existence of any claim or
cause of action by Executive against the Company whether predicated on this Agreement or otherwise, 

  
 8 

	 	
shall not constitute a defense to the enforcement by the Company of any of the covenants set forth in Section 8. 

 10. WITHHOLDING OF TAXES. 
 The Company shall
withhold from any compensation and benefits payable under this Agreement all applicable federal, state, local, or other taxes. 
 11.
NO CLAIM AGAINST ASSETS. 
 Nothing in this Agreement shall be construed as
giving Executive any claim against any specific assets of the Company or as imposing any trustee relationship upon the Company in respect of Executive. The Company shall not be required to establish a special or separate fund or to segregate any of
its assets in order to provide for the satisfaction of its obligations under this Agreement. Executive’s rights under this Agreement shall be limited to those of an unsecured general creditor of the Company and its affiliates. 

12. SUCCESSORS AND ASSIGNMENT. 
 Except as otherwise provided in this Agreement, this Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective heirs, representatives, successors and assigns. The
rights and benefits of Executive under this Agreement are personal to executive and no such right or benefit shall be subject to voluntary or involuntary alienation, assignment or transfer; provided, however, that nothing in this Section 12
shall preclude Executive from designating a beneficiary or beneficiaries to receive any benefit payable on executive’s death. 
 13.
INDEMNIFICATION 
  

	(a)	 The Company agrees that if the Executive is made a party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a “Proceeding”), by reason of the fact that he is or was a director, officer or employee of the Company or is or was serving at the request of the Company as a director, officer,
member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s alleged action in
an official capacity while serving as a director, officer, member, employee or agent, the Executive shall be indemnified and held harmless by the Company to the fullest extent legally permitted or authorized by the Company’s certificate of
incorporation or bylaws or resolutions of the Company’s Board of Directors or, if greater, by the laws of the State of Illinois, against all cost, expense, liability and loss (including, without limitation, attorney’s fees, judgments,
fines, ERISA excise taxes or other liabilities or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Executive in connection therewith, and such indemnification shall continue as to the Executive even if
he has ceased to be a director, member, employee or agent of the Company or other entity and shall inure to the benefit of the Executive’s heirs, executors and administrators. If permitted by the bylaws and applicable law, the Company shall
advance to the Executive all reasonable costs and expenses incurred by him in connection with a Proceeding within 20 calendar days after receipt by the Company of a written request for such advance. Such request shall include an undertaking by the
Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

 

	(b)	 Neither the failure of the Company (including its board of directors, independent legal counsel or shareholders) to have made a
determination prior to the commencement of any Proceeding concerning payment of amounts claimed by the Executive under Section 13(a) above that indemnification of the Executive is proper because he has met the applicable standard of conduct,

  
 9 

	 	
nor a determination by the Company (including its board of directors, independent legal counsel or shareholders) that the Executive has not met such applicable standard of conduct, shall create a
presumption that the Executive has not met the applicable standard of conduct. 

  

	(c)	 The Company agrees to continue and maintain a directors’ and officers’ liability insurance policy covering the Executive
which is no less favorable than the policy covering other senior officers of the Company. 

 14. ENTIRE
AGREEMENT; AMENDMENT. 
 This Agreement shall supersede any and all existing oral or written agreements,
representations, or warranties between Executive and the Company or any of its subsidiaries or affiliated entities relating to the terms of Executive’s employment. It may not be amended except by a written agreement signed by both Parties.

 15. GOVERNING LAW. 
 This Agreement shall be governed by and construed in accordance with the domestic substantive laws of the State of Illinois, without giving effect to any conflicts or choice of laws rule or provision that
would result in the application of the domestic substantive laws of any other jurisdiction. Any dispute under this Agreement shall be brought in state or federal court in Chicago, Illinois. Executive consents to jurisdiction of such courts; agrees
and acknowledges that this is a proper and convenient forum; and agrees not to raise objections to this venue based on inconvenient forum, improper venue or similar grounds. 
 16. SECTION 409A 
  

	(a)	 Although the Company does not guarantee the tax treatment of any payments under the Agreement, the intent of the Parties is that the
payments and benefits under this Agreement be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended, and all Treasury Regulations and guidance promulgated thereunder (“Code Section 409A”) and
to the maximum extent permitted the Agreement shall be limited, construed and interpreted in accordance with such intent. In no event whatsoever shall the Company or its affiliates or their respective officers, directors, employees or agents be
liable for any additional tax, interest or penalties that may be imposed on Executive by Code Section 409A or damages for failing to comply with Code Section 409A. 

 

	(b)	 Notwithstanding any other provision of this Agreement to the contrary, to the extent that any reimbursement of expenses constitutes
“deferred compensation” under Code Section 409A, such reimbursement shall be provided no later than December 31 of the year following the year in which the expense was incurred. The amount of expenses reimbursed in one year shall
not affect the amount eligible for reimbursement in any subsequent year. The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind
benefits provided in any other year. 

  

	(c)	 For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment
shall at all times be considered a separate and distinct payment. Whenever a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period shall be within the sole discretion of the
Company. 

  
 10 

	(d)	 Notwithstanding any other provision of this Agreement to the contrary, if at the time of Executive’s separation from service (as
defined in Code Section 409A), Executive is a “Specified Employee”, then the Company will defer the payment or commencement of any nonqualified deferred compensation subject to Code Section 409A payable upon separation from
service (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six (6) months following separation from service or, if earlier, the earliest other date as is permitted under Code
Section 409A (and any amounts that otherwise would have been paid during this deferral period will be paid in a lump sum on the day after the expiration of the six (6) month period or such shorter period, if applicable). Executive will be
a “Specified Employee” for purposes of this Agreement if, on the date of Executive’s separation from service, Executive is an individual who is, under the method of determination adopted by the Company designated as, or within the
category of employees deemed to be, a “Specified Employee” within the meaning and in accordance with Treasury Regulation Section 1.409A-1(i). The Company shall determine in its sole discretion
all matters relating to who is a “Specified Employee” and the application of and effects of the change in such determination. 

  

	(e)	 Notwithstanding anything in this Agreement or elsewhere to the contrary, a termination of employment shall not be deemed to have
occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that constitute “non-qualified deferred compensation” within the meaning of Code
Section 409A upon or following a termination of the Employee’s employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this
Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service” and the date of such separation from service shall be the date of termination for purposes of any
such payment or benefits. 

 17. NOTICES. 
 Any notice, consent, request or other communication made or given in connection with this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by nationally
recognized overnight courier services, by registered or certified mail, return receipt requested, by facsimile or by hand delivery, to those listed below at their following respective addresses or at such other address as each may specify by notice
to the others: 
 To the Company: 
 [insert address] 
 Attention: ___________________ 

To Executive: 

[insert address] 
 18.
MISCELLANEOUS. 
  

	(a)	 Waiver. The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a
waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement. 

  

	(b)	 Separability. If any term or provision of this Agreement above is declared illegal or unenforceable by any court of competent
jurisdiction and cannot be modified to be enforceable, 

  
 11 

	 	
such term or provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. 

 

	(c)	 Headings. Section headings are used herein for convenience of reference only and shall not affect the meaning of any provision of this
Agreement. 

  

	(d)	 Rules of Construction. Whenever the context so requires, the use of the singular shall be deemed to include the plural and vice versa.

  

	(e)	 Counterparts. This Agreement may be executed via electronic signature and in any number of counterparts, each of which so executed
shall be deemed to be an original, and such counterparts will together constitute but one Agreement. 

 IN WITNESS WHEREOF,
the Parties hereto have duly executed this Agreement as of the day and year set forth below. 
  

			
	VERICITY HOLDINGS, INC.	  	EXECUTIVE
	By:	  	
		
	  
	  	  

		
	Name:	  	Date:
		
	  
	  	  

		
	Title:	  	Address:
		
	  
	  	  

		
	Date:	  	
		
	  
	  	  

  
 12

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