Exhibit 10.1(a)

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of August 19, 2005 (this
“Amendment”), amends the Credit Agreement, dated as of May 31, 2005 (the “Credit
Agreement”), among Horace Mann Educators Corporation, a Delaware corporation
(the “Borrower”), the various financial institutions which are parties thereto
(collectively, the “Lenders”) and Bank of America, N.A., as administrative agent
for the Lenders (in such capacity, the “Administrative Agent”). Terms defined in
the Credit Agreement are, unless otherwise defined herein or the context
otherwise requires, used herein as defined therein.

 

WHEREAS, the parties hereto have entered into the Credit Agreement, which
provides for the Lenders to extend Loans to the Borrower from time to time; and

 

WHEREAS, the parties hereto desire to amend the Credit Agreement in certain
respects as hereinafter set forth;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto agree as follows:

 

SECTION 1. AMENDMENTS. Effective as of the Amendment Effective Date (as defined
below) the Credit Agreement shall be amended as follows:

 

1.1 The definition of “Material Insurance Subsidiary” in Section 1.01 of the
Credit Agreement is amended by inserting the following at the end thereof:

 

“Notwithstanding the foregoing, it is agreed that Allegiance Life Insurance
Company shall not be deemed a Material Insurance Subsidiary but its Subsidiary,
Horace Mann Life Insurance Company, shall be a Material Insurance Subsidiary.”

 

1.2 Section 6.01(f) of the Credit Agreement is amended by deleting the words
“the chief financial officer or treasurer of the Borrower” and inserting “a
Responsible Officer” therefor.

 

SECTION 2. CONDITIONS PRECEDENT. This Amendment shall become effective on the
date (the “Amendment Effective Date”) when each of the conditions precedent set
forth in this Section 2 shall have been satisfied.

 

2.1 Receipt of Documents. The Administrative Agent shall have received this
Amendment, duly executed by the Borrower, the Administrative Agent and the
Required Lenders.

 

2.2 Compliance with Warranties, No Default, etc. Both before and after giving
effect to the effectiveness of this Amendment, the following statements by the
Borrower shall be true and correct (and the Borrower, by its execution of this
Amendment, hereby represents and warrants to the Administrative Agent and the
Lenders that such statements are true and correct as at such times):

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(a) the representations and warranties set forth in Article V of the Credit
Agreement shall be true and correct with the same effect as if then made (unless
stated to relate solely to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date); and

 

(b) no Default (other than any Default under Section 7.02 arising by virtue of
Allegiance Life Insurance Company not having an A.M. Best rating) shall have
then occurred and be continuing.

 

SECTION 3. MISCELLANEOUS.

 

3.1 Continuing Effectiveness, etc. This Amendment shall be deemed to be an
amendment to the Credit Agreement, and the Credit Agreement, as amended hereby,
shall remain in full force and effect and is hereby ratified, approved and
confirmed in each and every respect.

 

3.2 Payment of Costs and Expenses. The Borrower agrees to pay on demand all
expenses of the Administrative Agent (including the fees and out-of-pocket
expenses of counsel to the Administrative Agent) in connection with the
negotiation, preparation, execution and delivery of this Amendment.

 

3.3 Severability. Any provision of this Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such provision and such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Amendment
or affecting the validity or enforceability of such provision in any other
jurisdiction.

 

3.4 Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this
Amendment or any provisions hereof.

 

3.5 Execution in Counterparts. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement.

 

3.6 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS.

 

3.7 Successors and Assigns. This Amendment shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and
assigns.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized as of the day and year
first above written.

 

HORACE MANN EDUCATORS CORPORATION By:  

/s/ Dwayne D. Hallman

Title:  

    Senior Vice President Finance

 

By:  

/s/ Angela Christian

Title:  

    Vice President and Treasurer

 

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BANK OF AMERICA, N.A., as Administrative Agent By:  

/s/ Debra Basler

Title:  

    Senior Vice President

 

S-2

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BANK OF AMERICA, N.A., as a Lender By:  

/s/ Debra Basler

Title:  

    Senior Vice President

 

S-3

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JPMORGAN CHASE BANK, N.A. By:  

/s/ Thomas A. Kiepura

Title:  

    Vice President

 

S-4

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NATIONAL CITY BANK OF THE MIDWEST By:  

/s/ Steve Vilatte

Title:  

    Vice President

 

S-5

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COMERICA BANK By:  

/s/ Felicia M. Maxwell

Title:  

    Vice President

 

S-6

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FIFTH THIRD BANK (CHICAGO), a Michigan Banking Corporation By:  

/s/ Kim Puszczewicz

Title:  

    Assistant Vice President

 

S-7

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LASALLE BANK NATIONAL ASSOCIATION By:  

/s/ Brandon S. Allison

Title:  

    Assistant Vice President

 

S-8

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PNC BANK, NATIONAL ASSOCIATION By:  

/s/ Edward J. Chidiac

Title:  

    Managing Director

 

S-9

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STATE STREET BANK AND TRUST COMPANY By:  

/s/ Anne W. Muita

Title:  

    Assistant Vice President

 

S-10

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ILLINOIS NATIONAL BANK By:  

/s/ Jeffrey L. Raes

Title:  

    Senior Vice President

 

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