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Exhibit 10.5
 
CNO FINANCIAL GROUP, INC.
 
as Issuer,
 
THE SUBSIDIARY GUARANTORS PARTIES HERETO
 
and
 
WILMINGTON TRUST, NATIONAL ASSOCIATION,
 
as Trustee
 
and
 
Collateral Agent
 

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FIRST SUPPLEMENTAL INDENTURE
 
Dated as of September 28, 2012
 
TO
 
INDENTURE
 
Dated as of December 21, 2010
 

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9.00% SENIOR SECURED NOTES DUE 2018
 
 
 

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FIRST SUPPLEMENTAL INDENTURE dated as of September 28, 2012 (this “Supplemental
Indenture”), to the Indenture dated as of December 21, 2010 (the “Indenture”)
among CNO FINANCIAL GROUP, INC., a corporation duly organized and existing under
the laws of the state of Delaware (the “Company”), certain subsidiaries of the
Company from time to time parties hereto (the “Subsidiary Guarantors”) and
WILMINGTON TRUST, NATIONAL ASSOCIATION (as successor by merger to Wilmington
Trust FSB), as trustee (together with its successors and assigns, in such
capacity, the “Trustee”) and as collateral agent (together with its successors
and assigns, in such capacity, the “Collateral Agent”).
 
W I T N E S S E T H
 
WHEREAS, the Company, the Subsidiary Guarantors, the Trustee and the Collateral
Agent have heretofore executed and delivered the Indenture, and the Company has
issued pursuant to the Indenture its 9.00% Senior Secured Notes due 2018 (the
“Notes”);
 
WHEREAS, Section 9.2 of the Indenture provides that with the consent of the
Holders (as defined in the Indenture) of a majority in principal amount of the
Notes outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes),
the Company, the Subsidiary Guarantors, the Trustee and the Collateral Agent may
amend or supplement the Indenture, subject to certain limitations set forth in
the Indenture;
 
WHEREAS, the Company has solicited the consents of the Holders of the Notes
pursuant to the offer to purchase and consent solicitation statement dated
September 4, 2012 (as the same may be amended or supplemented from time to time,
the “Offer to Purchase”), and the related letter of transmittal and consent
dated September 4, 2012 (as the same may be amended or supplemented from time to
time, the “Letter of Transmittal” and, together with the Offer to Purchase, the
“Offering Documents”), to the proposed amendments to the Indenture upon the
terms and conditions set forth therein (the “Amendments”);
 
WHEREAS, the Company has received and delivered or caused to be delivered to the
Trustee the consents of the Holders of at least a majority in outstanding
principal amount of the Notes to the Amendments in accordance with the Offering
Documents;
 
WHEREAS, the execution and delivery of this Supplemental Indenture has been duly
authorized by a Board Resolution (as defined in the Indenture) of the Company;
 
WHEREAS, the Company has requested that the Trustee and the Collateral Agent
join with the Company and the Subsidiary Guarantors in the execution and
delivery of this Supplemental Indenture;
 
WHEREAS, all conditions and requirements necessary to make this Supplemental
Indenture a valid, binding and legal instrument in accordance with its terms
have been performed and fulfilled by the parties hereto and the execution and
delivery thereof have been in all respects duly authorized by the parties
hereto; and
 
WHEREAS, the Amendments contained herein will become operative (the “Operative
Date”) upon the initial acceptance for payment by the Company of the Notes
validly tendered (and not validly withdrawn), following satisfaction or waiver
of the conditions to the tender offer and consent solicitation contemplated by
the Offering Documents.
 
 
 

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NOW, THEREFORE, in consideration of the premises and the covenants and
agreements contained herein, and for other good and valuable consideration the
receipt of which is hereby acknowledged, each party hereby agrees as follows:
 
ARTICLE 1
 
Section 1.1     Definitions.
 
Capitalized terms used in this Supplemental Indenture and not otherwise defined
herein shall have the meanings assigned to such terms in the Indenture.
 
ARTICLE 2
 
Section 2.1     Amendments to Table of Contents.
 
The Table of Contents of the Indenture is amended by deleting the titles to
Section 3.2, Section 3.3, Section 3.4, Section 3.5, Section 3.6, Section 3.7,
Section 3.8, Section 3.9, Section 3.10, Section 3.11, Section 3.13, Section 3.15
and Article 4 and inserting, in each case, in lieu thereof the phrase
“[intentionally omitted]”.
 
ARTICLE 3
 
Section 3.1     Elimination of Certain Definitions in Article 1 of the
Indenture.
 
Section 1.1 of the Indenture is amended by deleting all definitions of terms,
and references to definitions of terms, that are used exclusively in the text of
the Indenture and in the text of the Notes that are being otherwise eliminated
by this Supplemental Indenture.
 
Section 3.2     Elimination of Certain Provisions in Article 3 of the Indenture.
 
(a) Section 3.2 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(b) Section 3.3 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(c) Section 3.4 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(d) Section 3.5 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
 
 

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(e) Section 3.6 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(f) Section 3.7 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(g) Section 3.8 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(h) Section 3.9 of the Indenture is amended by deleting the text of such Section
in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(i) Section 3.10 of the Indenture is amended by deleting the text of such
Section in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(j) Section 3.11 of the Indenture is amended by deleting the text of such
Section in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(k) Section 3.13 of the Indenture is amended by deleting the text of such
Section in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
(l) Section 3.15 of the Indenture is amended by deleting the text of such
Section in its entirety and inserting in lieu thereof the phrase “[intentionally
omitted]”.
 
Section 3.3     Elimination of Article 4 of the Indenture.
 
Article 4 of the Indenture is amended by deleting the text of such Article in
its entirety and inserting in lieu thereof the phrase “[intentionally omitted]”.
 
Section 3.4     Elimination of Certain Provisions in Article 6 of the Indenture.
 
(a) Section 6.1 of the Indenture is amended by deleting the text of clauses
(a)(iii), (iv), (v), (vi) and (ix) in their entirety and inserting, in each
case, in lieu thereof the phrase “[intentionally omitted]”.
 
ARTICLE 4
 
Section 4.1     Effectiveness of Amendments to Indenture.
 
Following the execution and delivery by the parties hereto of this Supplemental
Indenture, the Amendments shall not be operative until the Operative
Date.  Effective as of the Operative Date, this Supplemental Indenture hereby
amends the Indenture and Notes as provided for herein. In case of conflict
between the terms and conditions contained in the Notes and those contained in
the Indenture, as modified by this Supplemental Indenture, the provisions of the
Indenture, as modified by this Supplemental Indenture, shall control.
 
 
 

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Section 4.2     Continuing Effect of Indenture.
 
Except as expressly provided herein, all of the terms, provisions and conditions
of the Indenture and the Notes shall remain in full force and effect.
 
Section 4.3     Construction of Supplemental Indenture.
 
This Supplemental Indenture is executed as and shall constitute an indenture
supplemental to the Indenture and shall be construed in connection with and as
part of the Indenture for all purposes with respect to the Notes, and every
Holder of Notes heretofore or hereafter authenticated and delivered under the
Indenture shall be bound by the Indenture as amended by this Supplemental
Indenture.  THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS SUPPLEMENTAL INDENTURE.
 
Section 4.4     Trustee and Collateral Agent Disclaimer.
 
The recitals contained in this Supplemental Indenture shall be taken as the
statements of the Company and each of the Trustee and Collateral Agent assumes
no responsibility for their correctness.  The Trustee and the Collateral Agent
make no representations as to the validity or sufficiency of this Supplemental
Indenture.  All rights, protections, privileges, indemnities and benefits
granted or afforded to the Trustee and the Collateral Agent under the Indenture
shall be deemed incorporated herein by this reference and shall be deemed
applicable to all actions taken, suffered or omitted by the Trustee and the
Collateral Agent under this Supplemental Indenture.
 
Section 4.5     Counterparts.
 
The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy (including facsimile copies) shall be an original, but all of them
together represent the same agreement.
 
Section 4.6     Severability.
 
In case any provision in this Supplemental Indenture shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected.
 
[Remainder of Page Intentionally Left Blank]
 
 
 

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

 
CNO FINANCIAL GROUP, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President, Treasury and Investor
            Relations  

 
[Signature Page to Supplemental Indenture]
 
 
 

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40|86 ADVISORS, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
40|86 MORTGAGE CAPITAL, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
AMERICAN LIFE AND CASUALTY MARKETING DIVISION CO.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
CDOC, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
CNO MANAGEMENT SERVICES COMPANY
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 
[Signature Page to Supplemental Indenture]
 
 
 

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CNO SERVICES, LLC
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President, Treasury and Investor
            Relations  

 

 
K.F. AGENCY, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
PERFORMANCE MATTERS ASSOCIATES, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 

 
PERFORMANCE MATTERS ASSOCIATES OF TEXAS, INC.
         
 
By:
     /s/ Erik M. Helding       Name: Erik M. Helding       Title:   Senior Vice
President and Treasurer  

 
[Signature Page to Supplemental Indenture]
 
 
 

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WILMINGTON TRUST, NATIONAL ASSOCIATION, as
    Trustee
           
By
    /s/ Jane Schweiger      
Name: Jane Schweiger
     
Title:   Vice President
 

 

 
WILMINGTON TRUST, NATIONAL ASSOCIATION, as Collateral Agent
         
By
    /s/ Jane Schweiger      
Name: Jane Schweiger
     
Title:   Vice President
 

 
[Signature Page to Supplemental Indenture]