Funeral Directors Life Insurance Company

Eligible employees of the Companies are provided a wide range of benefits and incentives. Some benefit programs require contributions from the employee, but most are fully paid on behalf of the employee by the Companies.

The following benefit programs are available to eligible employees:

Life Insurance

The Companies provide employer-paid life insurance for all eligible employees, who work 30 hours or more per week, $30,000.00 life insurance and $30,000.00 accidental death and dismemberment insurance for the employee only. Dependent life insurance is the financial responsibility of the employee. A dependent spouse can obtain life insurance coverage of $5,000.00 and each dependent child from birth to age 19 or to 25, if a full-time student, can obtain $1,000.00 in life insurance.

Medical Insurance

The Companies provide employer-paid medical insurance for all eligible employees, who work 30 hours or more per week. Employees can add eligible dependents; however, dependent coverage is the financial responsibility of the employee. Rates for dependent coverage can be obtained in the Human Resources Department.

Details of the Medical Plan benefits are furnished to employees each year and additional information is available in the Human Resources Department. For questions regarding specific coverage, employees are encouraged to contact Member Services at Blue Cross Blue Shield of Texas directly at 1-800-521-2227.

Dental Insurance

Eligible employees, who work 30 hours or more per week, have the opportunity to enroll in a pre-tax payroll-deduction dental program. Employee and dependent coverage is the financial responsibility of the employee. Rates and information on the dental program can be obtained in the Human Resources Department.

401(k) Defined Contribution Plan

Employees who work 20 hours or more per week and a minimum of 1,000 hours per year are eligible to join the 401(k) plan the 1st of the month following 12 months of service. All contributions are pre-tax contributions, and employees can contribute 100% of their total annual compensation up to the maximum allowed by law. The Companies will contribute $.50 for each $1.00 an employee contributes, up to a maximum of $5,000.00 annually. The vesting schedule on company matching contributions is outlined in the 401(k) Summary Plan Description.

Employee Stock Option Plan

Upon recommendation by the Employee Benefits Committee, full-time employees who reach their 24 month anniversary prior to the Annual Board of Directors Meeting, held during the last week of April each year, are eligible to participate in an employee stock option program whereby they may purchase shares of stock in Directors Investment Group, Inc. Participation in the plan is strictly voluntary and is the financial responsibility of the employee. Details of participation in the employee stock option plan are provided in the Employee Stock Option Agreement located in the corporate secretary's office.

Flexible Spending Account

Employees who work at least 30 hours or more per week are eligible to participate in the Flexible Spending Account, or FSA plan the 1st of the month following 12 months of service. Through this plan, employees can set aside a portion of their earnings, tax-free, for everyday expenses for dependent day care and out-of-pocket medical expenses including medical, dental, vision, over-the-counter medications, and prescription drug expenses.

Voluntary Benefits

Employees are provided the opportunity to purchase supplemental insurance benefits and have the convenience of automatic payroll deduction. The supplemental insurance products available are life, cancer, disability and critical illness. These products are elected at the discretion of the employee and are the financial responsibility of the employee.

Work-Life Balance

The work-life balance employee assistance program is free to all employees. Employees are given a Universal Access Card to access information for day to day living, emotional well-being, financial and legal questions, addiction and recovery, parenting and child care, education, retirement, work and health. Employees can also request free booklets and tapes.

Educational Assistance

Full-time employees are eligible to apply for Educational Assistance after 12 months of service. It is the goal of the Companies' to encourage employees to further develop their skills, knowledge and ability through accredited educational institutions. This program provides limited financial reimbursement for tuition, books and fees. Note: Educational financial support is contingent upon the availability of funds and is approved or disapproved on a semester basis.

Wellness Center

The Wellness Center is an on-site exercise facility available to all employees. It is furnished with cardiovascular equipment, weights and also has an area to work out to exercise classes on DVD. Use of the facility is voluntary and employees participate on their own time and at their own risk. Employees are required to sign a Waiver of Use form before they can use the facility.

Holidays

The Companies will grant holiday time off to all employees on the following holidays:

• New Year's Day
• Good Friday
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Christmas

Sick and Personal Leave

The Companies provide paid sick and personal leave benefits to all regular full-time employees for periods of temporary absence due to illnesses or injuries of the employee or family member, appointments, inclement weather, funerals, etc.

On January 1 each year, eligible employees are allowed seven (7) days or fifty-six (56) hours of sick and personal leave. Employees exceeding the seven (7) day or fifty-six (56) hour limits may be allowed to use vacation time for extended illness. Sick and personal leave benefits for new employees joining the Companies after January 1, are pro rated based on the number of workdays remaining in the calendar year from the date of hire.

Vacation Benefits

Vacation time off with pay is available to eligible employees to provide opportunities for rest, relaxation, and personal pursuits. Regular full-time employees are eligible to earn and use vacation time as described in this policy.

The amount of paid time off employees receive each year increases with the length of their employment as shown in the following schedule. Length of service will be determined on a calendar basis after first year of employment. Vacation leave may be used in minimum increments of four hours at a time. The maximum leave available at one time is two weeks. There must be three months between leave when scheduling two weeks at a time.

Regular part-time employees are eligible for vacation benefits based on the above schedule on a prorated calculation following their one year anniversary of employment.

Regular full-time employees will be eligible for vacation leave after six months of service. After six months of employment, vacation will be prorated based on remaining months in a calendar year.

An employee hired after June 30th of any year will not be eligible for prorated vacation in the current year of hire.

Bereavement Leave

Regular full-time employees who have completed 90 calendar days of employment may request bereavement leave for three (3) days following the death of a spouse, parent, son, daughter, brother or sister of the employee. Employees wishing to attend the funerals of other relatives or friends can arrange to use vacation, personal, sick leave or unpaid leave to attend those funerals.

Death Benefits

If a person dies, from causes other than suicide, while fully employed by DIG or one of its' subsidiaries as an employee, a funeral service, outer burial container, and casket shall be provided for the employee. The full price for the funeral service, outer burial container, and casket shall not exceed the average total funeral value equal to FDLIC's current average pre-need funeral contract and the deceased must have a Thoughtful Decisions Guide completed and in his/her employment file with the respective company at the time of his/her death. In addition, the company of employment shall pay the surviving spouse or dependent children only, if any, a lump sum amount equal to three months salary. The deceased must have been employed by DIG or one of its subsidiaries as a full-time employee for a minimum of one (1) full year in order for death benefits to apply.

Hope Fund Program

The HOPE Fund Program provides an emergency fund for eligible employees who have need for financial assistance due to emergency or financial hardship. It is the goal of the Companies to encourage and educate employees on the importance of good money management.

Charitable Contributions Match Program

The Charitable Contributions Match Program allows eligible employees to apply to Funeral Directors Life Insurance Company to match personal contributions to eligible organizations.

Helpers of People Leave Program

The purpose of the companies' Helpers of People Leave Program is to support activities that enhance the lives and communities in which we live and work.

FDLIC is characterized by people who really care. Our people want to be servants to one another, to our funeral home customers, sales professionals, to our policyholders, and to our community. We believe that by continuing to place an emphasis on service not only within our work environment, but in our activities outside of work, we will have an even greater opportunity to give back to our communities and promote positive change in people's lives.

The intention of this program is to devote time to a service project, mission trip, relationship in need of repair or personal growth. The Company recognizes that participating in these sorts of activities enriches the lives of its employees and others.

All full time regular employees who have reached 5 years of service to the Companies are eligible to participate in this program, however leave must meet the approval of the review committee and employees are required to Blog a minimum of one time about their activity. Employees are encouraged to schedule the Helpers of People leave time in conjunction with one week of vacation time.