X0306 4 2017-08-08 0000701869 INDEPENDENCE HOLDING CO IHC 0001213774 KETTIG DAVID T 96 CUMMINGS POINT ROAD STAMFORD CT 06902 1 1 0 0 COO & EVP Stock Option (right to buy) 9.99 2017-08-08 4 D 0 27500 0 D 2018-03-18 Common Stock 27500 0 D Stock Option (right to buy) 9.99 2017-08-08 4 A 0 27500 0 A 2011-03-19 2018-03-18 Common Stock 27500 27500 D Stock Option (right to buy) 9.09 2017-08-08 4 D 0 38800 0 D 2019-01-04 Common Stock 38800 0 D Stock Option (right to buy) 9.09 2017-08-08 4 A 0 38800 0 A 2013-01-05 2019-01-04 Common Stock 38800 38800 D Granted on March 19, 2008 (the "2008 Option") under the Independence Holding Company 2006 Stock Incentive Plan ("2006 Plan"), which expired in 2016. The 2008 Option is being cancelled in exchange for issuance of a new option ("2008 Replacement Option") under the Independence Holding Company 2016 Stock Incentive Plan ("2016 Plan") that has the same terms as the cancelled 2008 Option. The option vests in three equal installments on each of the three annual anniversaries of the grant date of March 19, 2008. As of the date of the filing, the option has fully vested. Granted under the 2016 Plan upon cancellation of the 2008 Option. This 2008 Replacement Option is exercisable for the same number of shares as issuable under the 2008 Option and has the same expiration date and exercise price as the 2008 Option. Granted on January 5, 2010 ("2010 Option") under the 2006 Plan. The 2010 Option is being cancelled in exchange for issuance of a new option ("2010 Replacement Option") under the 2016 Plan that has the same terms as the cancelled 2010 Option. The option vests 1/3 on each of the first 3 anniversaries dates of the option holder's continuous service after the grant date of January 1, 2010. As of the date of the filing, the option has fully vested. Granted under the 2016 Plan upon cancellation of the 2010 Option. This 2010 Replacement Option is exercisable for the same number of shares as issuable under the 2010 Option and has the same expiration date and exercise price as the 2010 Option. /David T. Kettig/ 2017-08-08