EX-4.2



 Exhibit 4.2 

EXECUTION VERSION 
 KEMPER
CORPORATION 
 and 

The Bank of New York Mellon Trust Company, N.A., 

as Trustee 
 FIRST
SUPPLEMENTAL INDENTURE 
 dated as of February 27, 2014 

to the Indenture dated as of February 27, 2014 

7.375% Subordinated Debentures due 2054 







 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	 ARTICLE 1
	 	APPLICATION OF SUPPLEMENTAL INDENTURE	  	 	1	  
			
	 Section 1.1.
	 	Application of First Supplemental Indenture	  	 	1	  
			
	 ARTICLE 2
	 	DEFINITIONS	  	 	2	  
			
	 Section 2.1.
	 	Terms Defined in the Indenture	  	 	2	  
	 Section 2.2.
	 	Additional Definitions	  	 	2	  
			
	 ARTICLE 3
	 	FORM AND TERMS OF THE DEBENTURES	  	 	5	  
			
	 Section 3.1.
	 	Form; Denominations; Depositary	  	 	5	  
	 Section 3.2.
	 	Execution and Authentication of Initial Debentures	  	 	6	  
	 Section 3.3.
	 	Paying Agent	  	 	6	  
	 Section 3.4.
	 	Terms of the Debentures	  	 	6	  
	 Section 3.5.
	 	Option to Defer Interest Payments	  	 	7	  
	 Section 3.6.
	 	Redemption at the Option of the Company	  	 	8	  
	 Section 3.7.
	 	Payment Restrictions During a Deferral Period	  	 	9	  
	 Section 3.8.
	 	Events of Default	  	 	10	  
	 Section 3.9.
	 	Tax Treatment	  	 	11	  
	 Section 3.10.
	 	Defeasance and Covenant Defeasance	  	 	11	  
			
	 ARTICLE 4
	 	SUBORDINATION	  	 	11	  
			
	 Section 4.1.
	 	Agreement to Subordinate	  	 	11	  
	 Section 4.2.
	 	Default on Senior Indebtedness	  	 	11	  
	 Section 4.3.
	 	Prior Payment to Senior Indebtedness Upon Acceleration of Debentures	  	 	12	  
	 Section 4.4.
	 	Liquidation; Dissolution; Bankruptcy	  	 	12	  
	 Section 4.5.
	 	Subrogation	  	 	14	  
	 Section 4.6.
	 	Trustee to Effectuate Subordination	  	 	15	  
	 Section 4.7.
	 	Notice by the Company	  	 	15	  
	 Section 4.8.
	 	Rights of the Trustee; Holders of Senior Indebtedness	  	 	16	  
	 Section 4.9.
	 	Subordination May Not Be Impaired	  	 	16	  
	 Section 4.10.
	 	Article Applicable to Paying Agents	  	 	17	  
			
	 ARTICLE 5
	 	MISCELLANEOUS	  	 	17	  
			
	 Section 5.1.
	 	Trust Indenture Act Controls	  	 	17	  
	 Section 5.2.
	 	Governing Law	  	 	17	  
	 Section 5.3.
	 	Counterparts	  	 	17	  
	 Section 5.4.
	 	Severability	  	 	17	  
	 Section 5.5.
	 	Ratification	  	 	17	  
	 Section 5.6.
	 	Effectiveness	  	 	17	  
	 Section 5.7.
	 	Trustee Makes No Representation	  	 	18	  
			
	 EXHIBIT A
	 	– Form of Debenture	  	 	A-1	  


  
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 FIRST SUPPLEMENTAL INDENTURE 

FIRST SUPPLEMENTAL INDENTURE (this “First Supplemental Indenture”), dated as of February 27, 2014, between Kemper Corporation,
a Delaware corporation, and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”). 
 RECITALS OF THE
COMPANY 
 WHEREAS, the Company and the Trustee executed and delivered an Indenture, dated as of February 27, 2014 (the
“Base Indenture,” as supplemented by this First Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from time to time of Securities to be issued in one or more series as provided in the Base
Indenture; 
 WHEREAS, Section 14.01 of the Base Indenture provides, among other things, that the Company and the Trustee may
enter into indentures supplemental to the Base Indenture, without the consent of any Holders of Securities, to establish the form and terms of Securities of any series as permitted in Section 3.01 of the Base Indenture; 

WHEREAS, the Company desires to execute this First Supplemental Indenture to establish the form and terms of, and provide for the
issuance, of a series of its debt securities (which shall be a series of Securities as referred to in Section 3.01 of the Base Indenture) designated as its 7.375% Subordinated Debentures due 2054 (the “Debentures”), in an initial
aggregate principal amount of $150,000,000; 
 WHEREAS, the Company has requested that the Trustee execute and deliver this First
Supplemental Indenture; 
 WHEREAS, all things necessary have been done by the Company to make this First Supplemental Indenture,
when executed and delivered by the Company, a valid supplement to the Indenture; and 
 WHEREAS, all things necessary have been done
by the Company to make the Debentures, when executed by the Company and authenticated and delivered in accordance with the provisions of the Indenture, the valid obligations of the Company; 

NOW, THEREFORE, in consideration of the premises stated herein and the purchase of the Debentures by the Holders thereof, the Company
and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Debentures as follows: 

ARTICLE 1 

APPLICATION OF SUPPLEMENTAL INDENTURE 

Section 1.1. Application of First Supplemental Indenture. Notwithstanding any other provision of this First Supplemental
Indenture, all provisions of this First Supplemental Indenture are expressly and solely for the benefit of the Holders of the Debentures and any such provisions shall not be deemed to apply to any other Securities 


  
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issued under the Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Debentures. Unless otherwise expressly
specified, references in this First Supplemental Indenture to specific Article numbers or Section numbers refer to Articles and Sections contained in this First Supplemental Indenture as they amend or supplement the Base Indenture, and not the Base
Indenture or any other document. 
 ARTICLE 2 

DEFINITIONS 

Section 2.1. Terms Defined in the Indenture. For purposes of this First Supplemental Indenture, all capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Base Indenture, as amended hereby. 
 Section 2.2. Additional
Definitions. For the benefit of the Holders of the Debentures, Section 1.01 of the Base Indenture shall be amended by adding the following new definitions: 

“Additional Debentures” has the meaning specified in Section 3.4 hereto. 

“Base Indenture” has the meaning specified in the recitals hereto. 

“Comparable Treasury Issue” means the United States Treasury security or securities selected by an Independent Investment Banker as
having an actual or interpolated maturity that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing a new issue of corporate debt securities maturing on February 27, 2019. 

“Comparable Treasury Price” means, with respect to any Redemption Date, (1) the average of four Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such quotations. 
 “Debentures” has the meaning specified in the recitals hereto. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Global Debenture” has the meaning specified in 3.1(c). 

“Indebtedness for Money Borrowed” shall mean (i) any obligation of, or any obligation guaranteed by, the Company for which the
Company is responsible or liable as obligor or otherwise including principal, premium and interest (whether accruing before or after filing of any petition in bankruptcy or any similar proceedings by or against the Company and whether or not allowed
as a claim in bankruptcy or similar proceedings) for (A) indebtedness for money borrowed, (B) indebtedness evidenced by securities, bonds, debentures, notes or other similar written instruments, (C) any deferred obligation for the
payment of the purchase price or conditional sale obligation of property or assets 

  
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acquired other than in the ordinary course of business, (D) all obligations for the reimbursement of any letter of credit, banker’s acceptance, security purchase facility or similar
credit transaction, (E) all obligations under “keep-well” agreements required by insurance regulators or (F) any obligation referred to in (A) through (E) above of other Persons secured by any lien on any property or
asset of the Company and (ii) all indebtedness for obligations to make payment in respect of derivative products such as interest and foreign exchange rate contracts, commodity contracts (including future or options contracts), swap agreements,
cap agreements, repurchase and reverse repurchase agreements and similar arrangements, whether outstanding on February 27, 2014 or thereafter created, assumed or incurred. 

“Indebtedness Ranking Junior to the Debentures” shall mean any Indebtedness for Money Borrowed, whether outstanding on
February 27, 2014 or thereafter created, assumed or incurred, which specifically by its terms ranks junior to and not equally with or prior to the Debentures (and any other Indebtedness Ranking on a Parity with the Debentures) in right of
payment upon any dissolution or winding-up or liquidation or reorganization or similar events of the Company. The securing of any Indebtedness for Money Borrowed, otherwise constituting Indebtedness Ranking Junior to the Debentures, shall not be
deemed to prevent such Indebtedness for Money Borrowed from constituting Indebtedness Ranking Junior to the Debentures. 

“Indebtedness Ranking on a Parity with the Debentures” shall mean Indebtedness for Money Borrowed, whether outstanding on
February 27, 2014 or thereafter created, assumed or incurred, which specifically by its terms ranks equally with and not prior to the Debentures in right of payment upon dissolution or winding-up or liquidation or reorganization or similar
events of the Company. The securing of any Indebtedness for Money Borrowed, otherwise constituting Indebtedness Ranking on a Parity with the Debentures, shall not be deemed to prevent such Indebtedness for Money Borrowed from constituting
Indebtedness Ranking on a Parity with the Debentures. 
 “Independent Investment Banker” means one of J.P. Morgan Securities LLC
and Wells Fargo Securities, LLC, and their successors, appointed by the Company or, if such firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the
Company. 
 “Initial Debentures” has the meaning set forth in Section 3.4. 

“interest,” when used with respect to the Debentures, includes interest accruing on the Debentures, interest on deferred interest
payments and other unpaid amounts and compounded interest, as applicable. 
 “Interest Payment Date” means each
February 27, May 27, August 27 and November 27, beginning May 27, 2014. 
 “Optional Deferral
Period” means the period commencing on an Interest Payment Date with respect to which the Company defers interest pursuant to Section 3.5 and ending on the earlier of (i) the fifth anniversary of that Interest Payment Date and
(ii) the next Interest Payment Date on which the Company has paid all deferred and unpaid amounts (including compounded interest on such deferred amounts) and all other accrued interest on the Debentures. 

  
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 “Rating Agency Event” means that any nationally recognized statistical rating
organization within the meaning of Section 3(a)(62) under the Exchange Act that then publishes a rating for the Company (a “rating agency”) amends, clarifies or changes the criteria it uses to assign equity credit to securities such
as the Debentures, which amendment, clarification or change results in (a) the shortening of the length of time the Debentures are assigned a particular level of equity credit by that rating agency as compared to the length of time the
Debentures would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Debentures; or (b) the lowering of the equity credit (including up to a lesser amount) assigned to the
Debentures by that rating agency compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Debentures. 

“Reference Treasury Dealer” means (i) J.P. Morgan Securities LLC, and its successors, (ii) a Primary Treasury Dealer (as
defined herein) selected by Wells Fargo Securities, LLC and its successors, (iii) two other primary U.S. government securities dealers (each a “Primary Treasury Dealer”), specified by the Company; provided that if any of the
foregoing or any Primary Treasury Dealer specified by the Company shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to a Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such
Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Senior
Indebtedness” shall mean all Indebtedness for Money Borrowed, whether outstanding on February 27, 2014 or thereafter created, assumed or incurred, except Indebtedness Ranking on a Parity with the Debentures or Indebtedness Ranking Junior
to the Debentures, and any deferrals, renewals or extension of such Senior Indebtedness. Notwithstanding anything to the contrary, Senior Indebtedness shall not include obligations to trade creditors created or assumed by the Company in the ordinary
course of business. 
 “Tax Event” means that the Company will have received an opinion of counsel, rendered by a law firm of
nationally recognized standing that is experienced in such matters, stating that, as a result of any: 
 (a) amendment to, or change in
(including any promulgation, enactment, execution or modification of) the laws (or any regulations under those laws) of the United States or any political subdivision thereof or therein affecting taxation; 

  
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 (b) official administrative pronouncement (including a private letter ruling, technical advice
memorandum or similar pronouncement) or judicial decision or administrative action or other official pronouncement interpreting or applying the laws or regulations enumerated in clause (a) above, by any court, governmental agency or regulatory
authority; or 
 (c) threatened challenge asserted in connection with an audit of the Company or any Subsidiary of the Company, or a
threatened challenge asserted in writing against any taxpayer that has raised capital through the issuance of securities that are substantially similar to the Debentures, 

which amendment or change is enacted or effective or which pronouncement or decision is announced or which challenge is asserted against the Company or
becomes publicly known on or after February 27, 2014, there is more than an insubstantial increase in the risk that interest accruable or payable by the Company on the Debentures is not, or will not be, deductible by the Company in whole or in
part, for United States federal income tax purposes. 
 “Treasury Rate” means, with respect to any Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity or interpolated maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for such Redemption Date. 
 ARTICLE 3 

FORM AND TERMS OF THE DEBENTURES 

Section 3.1. Form; Denominations; Depositary.  

(a) The Debentures and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached
hereto. The Debentures may have notations, legends or endorsements required by law, stock exchange rules or usage. The Debentures and any beneficial interest in the Debentures shall be in denominations of $25 and multiples of $25 in excess thereof.
The Debentures shall be issuable only in registered form without coupons. 
 (b) The terms and notations contained in the Debentures shall
constitute, and are hereby expressly made, a part of the Indenture, and the Company and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

(c) The Debentures shall be issued initially in the form of fully registered Global Securities (the “Global Debentures”). The
Depository Trust Company, New York, New York , is hereby designated as the Depositary with respect to the Debentures until one or more successor Depositaries for the Debentures shall have become such pursuant to the applicable provisions of the
Indenture. 

  
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 Section 3.2. Execution and Authentication of Initial Debentures. The Company shall
execute and the Trustee shall, in accordance with this Section 3.2 and Section 3.03(g) of the Base Indenture, authenticate and deliver a Global Debenture representing the Initial Debentures (as defined below) that shall be registered in the
name of Cede & Co., as nominee of the Depositary, and shall be deposited with the Trustee, as Security Custodian with respect thereto. 

Section 3.3. Paying Agent. The Company initially appoints the Trustee as Paying Agent for the payment of the principal of (and
premium, if any) and interest on the Debentures and designates the Corporate Trust Office of the Trustee, which office at the date hereof is located at 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602, as the Place of Payment where the
Debentures may be presented for payment. 
 Section 3.4. Terms of the Debentures. The following terms relating to the Debentures
are hereby established: 
 (a) Designation. The Debentures shall constitute a series of Securities designated as and having the title
“7.375% Subordinated Debentures due 2054”. 
 (b) Principal Amount. The aggregate principal amount of the Debentures that
may be initially authenticated and delivered under the Indenture (the “Initial Debentures”) shall be $150,000,000 (except for Debentures authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of,
other Debentures pursuant to Sections 3.04, 3.06, 3.07, 4.06 or 14.05 of the Base Indenture). The Company may from time to time, without the consent of the Holders of Debentures, issue additional Debentures (in any such case “Additional
Debentures”) having the same ranking and the same interest rate, Stated Maturity and other terms as the Initial Debentures (other than the public offering price and date of issuance and, under certain circumstances, the date from which interest
thereon will begin to accrue), provided, however, that no Additional Debentures may be issued unless the Additional Debentures are fungible with the Debentures for U.S. federal income tax purposes or issued with a different CUSIP number. Any
Additional Debentures together with the Initial Debentures shall constitute a single series of Securities for all purposes under the Indenture, including waivers, amendments and redemptions, and all references to the Debentures shall include the
Initial Debentures and any Additional Debentures unless the context otherwise requires. The aggregate principal amount of Additional Debentures that may be authenticated and delivered under and pursuant to the Indenture is unlimited. 

(c) Maturity Date. The entire outstanding principal amount of the Debentures shall be due and payable on February 27, 2054. 

(d) Interest. The rate at which the Debentures shall bear interest shall be 7.375% per annum; interest shall accrue on the
Debentures from and including February 27, 2014, or, if interest has already been paid, from the last date in respect of which interest has been paid or duly provided for to, but excluding, the next succeeding Interest Payment Date or Maturity,
as the case may be; subject to the Company’s right to defer payment of interest on the Debentures in accordance with Section 3.5, interest on the 

  
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Debentures will be payable quarterly in arrears on February 27, May 27, August 27 and November 27 of each year, beginning May 27, 2014; the interest so payable
with respect to a Debenture on any Interest Payment Date will be paid to the Persons in whose names the Debenture (or predecessor Debenture) is registered (which shall initially be the Depositary or its nominee) at the close of business on the
Record Date for such interest, which shall be February 12, May 12, August 12 and November 12 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. However, interest paid at
Maturity will be payable to the Person to whom the principal will be payable. Interest shall be computed on the basis of a 360-day year comprised of twelve 30-day months. 

(e) Sinking Fund. The Debentures shall not be subject to any sinking fund (pursuant to Article V of the Base Indenture or otherwise).

 (f) Subordination. The Debentures shall be subordinated in right of payment to the prior payment in full of all Senior Indebtedness
to the extent and in the manner set forth in Article IV. The provisions of Article XV of the Base Indenture and the definition of Senior Indebtedness in Section 1.01 of the Base Indenture shall not apply to the Debentures. 

(g) Payments. Payment of the principal of (and premium, if any) and the interest on the Debentures shall be made at the office of the
Paying Agent, which office at the date hereof is located at 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602, in such currency of the United States of America as at the time of payment is legal tender for payment of public and private debts,
provided that, at the option of the Company, payment of the interest on any Debenture may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Register or, in accordance with arrangements
satisfactory to the Trustee, by wire transfer to an account designated by the Holder; and provided further that, in the case of any Debentures represented by a Global Debenture, all payments of principal of (and premium, if any) and interest
thereon shall be made in accordance with the applicable procedures of the Depositary for such Global Debenture. 
 Section 3.5.
Option to Defer Interest Payments. (a) So long as no Event of Default with respect to the Debentures has occurred and is continuing, the Company shall have the right, at any time and from time to time, to defer the payment of interest on the
Debentures for one or more Optional Deferral Periods of up to five consecutive years, provided that no Optional Deferral Period shall extend beyond February 27, 2054, any earlier accelerated maturity date arising from an Event of Default
or any earlier redemption of the Debentures. 
 (b) During any Optional Deferral Period, interest shall continue to accrue on the Debentures,
and deferred interest payments shall accrue additional interest at the then applicable interest rate on the Debentures, compounded quarterly as of each Interest Payment Date to the extent permitted by applicable law. No interest otherwise due during
an Optional Deferral Period shall be due and payable on the Debentures until the end of such Optional Deferral Period except upon an acceleration or redemption of the Debentures during such deferral period. 

  
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 (c) At the end of any Optional Deferral Period, the Company shall pay all deferred interest
(including compounded interest thereon) on the Debentures to the Persons in whose names the Debentures are registered at the close of business on the Record Date with respect to the Interest Payment Date at the end of such Optional Deferral Period.

 (d) At the end of five years following the commencement of any Optional Deferral Period, the Company shall pay all accrued and unpaid
deferred interest, including compounded interest thereon, and the Company’s failure to pay all such accrued and unpaid deferred interest, including compounded interest thereon, for a period of 30 days after the conclusion of such five-year
period shall result in an Event of Default giving rise to a right of acceleration. If, at the end of any Optional Deferral Period, the Company shall have paid all deferred interest due on the Debentures, including compounded interest, the Company
may again defer interest payments on the Debentures pursuant to this Section 3.5. 
 (e) The Company shall give written notice of its
election to commence or continue any Optional Deferral Period to the Trustee and the Holders of the Debentures at least one Business Day and not more than 60 Business Days before the next Interest Payment Date. In addition, the Company’s
failure to pay interest on the Debentures on any Interest Payment Date will itself constitute the commencement of an Optional Deferral Period unless the Company pays such interest within five Business Days after any such Interest Payment Date,
whether or not the Company provides a notice of deferral. 
 Section 3.6. Redemption at the Option of the Company. The
provisions of Article IV of the Base Indenture, as supplemented by the provisions of this First Supplemental Indenture, shall apply to the Debentures. 

(a) The Company may redeem the Debentures in increments of $25 principal amount: 

(i) in whole at any time or in part from time to time on or after February 27, 2019, at a Redemption Price equal to the
principal amount of the Debentures being redeemed plus any accrued and unpaid interest thereon (including compounded interest, if any) to, but excluding, the Redemption Date; provided that if the Debentures are not redeemed in whole, at least
$25 million aggregate principal amount of the Debentures must remain Outstanding after giving effect to such redemption; 

(ii) in whole, but not in part, at any time prior to February 27, 2019, within 90 days of the occurrence of a Tax Event,
at a Redemption Price equal to the principal amount of the Debentures being redeemed plus any accrued and unpaid interest thereon (including compounded interest, if any) to, but excluding, the Redemption Date; or 

  
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 (iii) in whole, but not in part, at any time prior to February 27, 2019,
within 90 days of the occurrence of a Rating Agency Event, at a Redemption Price equal to the greater of (a) the principal amount of the Debentures being redeemed or (b) the present value of a payment on February 27, 2019 in an amount
equal to the outstanding principal amount of the Debentures being redeemed and scheduled payments of interest that would have accrued on the Debentures to be redeemed from the Redemption Date to February 27, 2019, discounted to the Redemption
Date on a quarterly basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, in each case, plus any accrued and unpaid interest on the Debentures being redeemed (including compounded interest, if
any) to, but excluding, the Redemption Date. 
 Section 3.7. Payment Restrictions During a Deferral Period. After the
commencement of an Optional Deferral Period and until the Company has paid all accrued and unpaid interest on the Debentures, the Company shall not, and shall not permit any Subsidiary of the Company to: 

(i) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect
to, any Capital Stock of the Company, 
 (ii) make any payment of principal, interest or premium on or repay, repurchase or
redeem any Indebtedness Ranking on a Parity with the Debentures or Indebtedness Ranking Junior to the Debentures, or 
 (iii)
make any guarantee payments with respect to any guarantee by the Company of any securities of any Subsidiary of the Company if such guarantee ranks pari passu with or junior in right of payment to the Debentures; 

other than: 
 (a) dividends or distributions in
shares of, or options, warrants or rights to subscribe for or purchase shares of, Capital Stock of the Company where the dividend stock or stock issuable upon exercise of such options, warrants or other rights is the same stock as that on which the
dividend is being paid or ranks equally with or junior to such stock, 
 (b) any declaration of a dividend in connection with the
implementation of a stockholder’s rights plan, or the issuance of Capital Stock of the Company under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto, 

  
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 (c) as a result of a reclassification of any series or class of Capital Stock of the Company or
the exchange or conversion of one class or series of Capital Stock of the Company for or into another class or series of Capital Stock of the Company, 

(d) the purchase of fractional interests in shares of Capital Stock of the Company pursuant to an acquisition or the conversion or exchange
provisions of such Capital Stock or the security being converted or exchanged, 
 (e) purchases or acquisitions of shares of Capital Stock of
the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of directors, officers, agents, consultants or employees of the Company or satisfaction by the Company of its obligations under
any dividend reinvestment plan of the Company or director, officer, agent, consultant or employee stock purchase plans of the Company, 
 (f)
any exchange, redemption or conversion of any class or series of Capital Stock of the Company, or the Capital Stock of a Subsidiary of the Company, for any other class or series of Capital Stock of the Company, or of any class or series of
Indebtedness for Money Borrowed for any class or series of Capital Stock of the Company, 
 (g) purchases or acquisitions of shares of
Capital Stock of the Company in connection with satisfaction by the Company of its obligations under any contract or security entered into before commencement of the Optional Deferral Period, and 

(h) (i) payment of current or deferred interest on Indebtedness Ranking on a Parity with the Debentures made pro rata to the amounts due on the
Debentures and all other Indebtedness Ranking on a Parity with the Debentures and (ii) payment of principal or current or deferred interest on the Company’s Indebtedness Ranking on a Parity with the Debentures that, if not made, would
cause the Company to breach the terms of the instrument governing such Indebtedness Ranking on a Parity with the Debentures. 

Section 3.8. Events of Default. (a) With respect to the Debentures, the Events of Default set forth in clauses (a),
(c) and (d) of Section 7.01 of the Base Indenture shall not apply to the Debentures, and for purposes of the Debentures the following event shall be substituted for, and replace, the Event of Default set forth in clause (a) of
Section 7.01 of the Base Indenture: 
 (1) default in the payment of any interest upon any of the Debentures when due
and payable, and continuance of such default for a period of 30 days; provided that if the Company defers the payment of interest on the Debentures in accordance with the provisions of the Debentures and the Indenture, the date on which such
payment is due and payable shall be the date on which the Company is required to make payment following the applicable Optional Deferral Period. 

(b) The Events of Default set forth in clauses (b), (e) and (f) of Section 7.01 of the Base Indenture shall apply to the
Debentures. 

  
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 Section 3.9. Tax Treatment. Each Holder or beneficial owner of the Debentures will,
by accepting the Debentures or a beneficial interest therein, be deemed to have agreed that the Holder or beneficial owner intends that the Debentures constitute indebtedness and will treat the debentures as indebtedness for all United States
federal, state and local tax purposes. 
 Section 3.10. Defeasance and Covenant Defeasance. Provision is hereby made for both
Defeasance and Covenant Defeasance of the Debentures, in each case, upon the terms and conditions contained in Article XII of the Base Indenture. 

ARTICLE 4 

SUBORDINATION 

Section 4.1. Agreement to Subordinate. The Company covenants and agrees, and each Holder of Debentures issued under the Indenture
likewise covenants and agrees, that the Debentures shall be issued subject to the provisions of this Article 4; and each Holder of a Debenture, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to be bound by
such provisions. 
 The payment by the Company of the principal of, premium, if any, and interest on the Debentures shall, to the extent and
in the manner set forth in this Article 4, be subordinated and junior in right of payment to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of this First Supplemental Indenture or thereafter incurred. 

No provision of this Article 4 shall prevent the occurrence of any Event of Default with respect to the Debentures or any event, act or
condition that with notice or lapse of time, or both, would constitute an Event of Default with respect to the Debentures. 

Section 4.2. Default on Senior Indebtedness. Unless Section 4.3 shall be applicable, in the event and during the continuation of
any default by the Company in the payment of principal, premium, interest or any other payment due on any Senior Indebtedness, or in the event that the maturity of any Senior Indebtedness has been or would be permitted upon notice or the passage of
time to be accelerated because of a default, then, unless and until such event of default shall have been cured or waived or shall have ceased to exist and such acceleration shall have been rescinded or annulled, no payment or distribution of any
kind or character, whether in cash, property or securities shall be made by the Company with respect to the principal (including redemption payments) of or premium, if any, or interest on the Debentures or on account of the purchase or other
acquisition of Debentures by the Company or any Subsidiary of the Company, in each case unless and until all amounts due or to become due on such Senior Indebtedness are paid in full in cash or other consideration satisfactory to the holders of such
Senior Indebtedness. 

  
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 In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee or
a Holder of any Debenture when such payment is prohibited by the preceding paragraph of this Section 4.2, such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Indebtedness or their
respective representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, but only to the extent that the holders of the Senior
Indebtedness (or their representative or representatives or a trustee) notify a Responsible Officer of the Trustee in writing at its Corporate Trust Office, within 90 days of such payment, and only the amount specified in such notice to the Trustee
shall be paid to the holders of such Senior Indebtedness. 
 Section 4.3. Prior Payment to Senior Indebtedness Upon Acceleration of
Debentures. In the event that any Debentures are declared due and payable before their Stated Maturity, then no payment or distribution of any kind or character, whether in cash, property or securities shall be made by the Company on account of
the principal (including redemption payments) of, or premium, if any, or interest on the Debentures or on account of the purchase or other acquisition of Debentures by the Company or any Subsidiary of the Company, until all amounts due on or in
respect of Senior Indebtedness outstanding at the time of such acceleration shall have been paid in full to the holders of such Senior Indebtedness in cash or other consideration satisfactory to the holders of such Senior Indebtedness, or provision
shall have been made for such payment. 
 In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee or
the Holder of any Debenture prohibited by the foregoing provisions of this Section 4.3, such payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of Senior Indebtedness or their respective
representatives, or to the trustee or trustees under any indenture pursuant to which any of such Senior Indebtedness may have been issued, as their respective interests may appear, but only to the extent that the holders of the Senior Indebtedness
(or their representative or representatives or a trustee) notify a Responsible Officer of the Trustee in writing at its Corporate Trust Office, within 90 days of such payment, and only the amounts specified in such notice to the Trustee shall be
paid to the holders of such Senior Indebtedness. 
 The provisions of this Section 4.3 shall not apply to any payment with respect to which
Section 4.4 would be applicable. 
 Section 4.4. Liquidation; Dissolution; Bankruptcy. In the case of the pendency of any
receivership, insolvency, dissolution, winding-up, liquidation, reorganization, assignment for the benefit of creditors or any other marshaling of assets or liabilities of the Company or other similar judicial proceeding relative to the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or other proceedings (each such event, if any, herein sometimes referred to as a “Proceeding”), then the holders of Senior Indebtedness shall be entitled to
receive payment in full of all amounts due or to become due on such Senior Indebtedness, or provision shall be made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, before the
Holders of the Debentures are entitled to receive or retain any payment or distribution of any kind or character, whether in cash, property or securities (including any payment or distribution which may be payable or deliverable by reason of the
payment of any other debt of the Company subordinated to the payment of 

  
 12 








 
the Debentures, such payment or distribution being hereinafter referred to as a “Junior Subordinated Payment”), on account of principal of (or premium, if any) or interest on the
Debentures or on account of the purchase or other acquisition of Debentures by the Company or any Subsidiary of the Company, and to that end the holders of Senior Indebtedness shall be entitled to receive, for application to the payment thereof, any
payment or distribution of any kind or character, whether in cash, property or securities, including any Junior Subordinated Payment, which may be payable or deliverable in respect of the Debentures in any such Proceeding. 

In the event that, notwithstanding the foregoing provisions of this Section 4.4, the Trustee or the Holders of any Debenture shall have
received any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, including any Junior Subordinated Payment, before all amounts due or to become due on all Senior Indebtedness are paid
in full or payment thereof is provided for in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, and if such fact shall, at or prior to the time of such payment or distribution, have been made
actually known to a Responsible Officer of the Trustee or, as the case may be, such Holder, then in such event such payment or distribution shall be paid over or delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of assets of the Company for application to the payment of all amounts due or to become due on all Senior Indebtedness remaining unpaid, to the extent necessary to pay all
amounts due or to become due on all Senior Indebtedness in full, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness. 

For purposes of this Article 4, the words “cash, property or securities” shall not be deemed (so long as the effect of any exclusion
employing this definition is not to cause the Debentures to be treated in any Proceeding as a part of the same class of claims as the Senior Indebtedness or any class of claims pari passu with, or senior to the Senior Indebtedness) to include shares
of stock of the Company as reorganized or readjusted, or securities of the Company or any other Person provided for by a plan of reorganization or readjustment, the payment of which is subordinated at least to the extent provided in this Article 4
with respect to the Debentures to the payment of Senior Indebtedness that may at the time be outstanding, provided that (i) such Senior Indebtedness is assumed by the new Person, if any, resulting from any such reorganization or
readjustment, and (ii) the rights of the holders of such Senior Indebtedness are not, without the consent of such holders, altered by such reorganization or readjustment. The consolidation of the Company with, or the merger of the Company with
or into, another Person or the liquidation or dissolution of the Company following the sale, assignment, transfer, lease or conveyance of all or substantially all of its properties and assets to another Person upon the terms and conditions provided
for in Section 6.04 of the Base Indenture shall not be deemed a dissolution, winding-up, liquidation or reorganization for the purposes of this Section 4.4 if such other Person shall, as a part of such consolidation, merger, sale, assignment,
transfer, lease or conveyance, comply with the conditions stated in Section 6.04 of the Base Indenture. 

  
 13 








 Section 4.5. Subrogation. Subject to the payment in full of all amounts due or to
become due on all Senior Indebtedness to the extent provided herein or the provision for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, the rights of the Holders of the
Debentures shall be subrogated to the rights of the holders of such Senior Indebtedness to receive payments and distributions of cash, property or securities of the Company, as the case may be, made to the holders of such Senior Indebtedness
pursuant to the provisions of this Article 4 (equally and ratably with the holders of all Indebtedness of the Company which by its express terms is subordinated to Senior Indebtedness of the Company to substantially the same extent as the Debentures
are subordinated to the Senior Indebtedness and is entitled to like rights of subrogation by reason of payments or distributions made to holders of such Senior Indebtedness) until the principal of (and premium, if any) and interest on the Debentures
shall be paid in full; and, for the purposes of such subrogation, no payments or distributions to the holders of such Senior Indebtedness of any cash, property or securities to which the Holders of the Debentures or the Trustee would be entitled
except for the provisions of this Article 4, and no payment over pursuant to the provisions of this Article 4 to or for the benefit of the holders of such Senior Indebtedness by Holders of the Debentures or the Trustee, shall, as between the
Company, its creditors other than holders of Senior Indebtedness of the Company, and the Holders of the Debentures, be deemed to be a payment by the Company to or on account of such Senior Indebtedness. It is understood that the provisions of this
Article 4 are and are intended solely for the purposes of defining the relative rights of the Holders of the Debentures, on the one hand, and the holders of such Senior Indebtedness on the other hand. 

Nothing contained in this Article 4 or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as between the
Company, its creditors other than the holders of Senior Indebtedness of the Company, and the Holders of the Debentures, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of the Debentures the principal of (and
premium, if any) and interest on the Debentures as and when the same shall become due and payable in accordance with their terms, or is intended to or shall affect the relative rights of the Holders of the Debentures and creditors of the Company, as
the case may be, other than the holders of Senior Indebtedness of the Company, as the case may be, nor shall anything herein or therein prevent the Trustee or the Holder of any Debenture from exercising all remedies otherwise permitted by applicable
law upon default under the Indenture, subject to the rights, if any, under this Article 4 of the holders of such Senior Indebtedness in respect of cash, property or securities of the Company, as the case may be, received upon the exercise of any
such remedy nor shall anything herein or therein prevent the application by the Trustee of any moneys or assets deposited with it hereunder to the payment of or on account of the principal of (or premium, if any) or interest, if any, on the
Debentures, unless a Responsible Officer of the Trustee shall have received at its Corporate Trust Office written notice of any fact prohibiting the making of such payment from the Company or from the holder of any Senior Indebtedness or from the
trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee more than two Business Days prior to the date fixed for such payment. 

  
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 Section 4.6. Trustee to Effectuate Subordination. Each Holder of the Debentures by
such Holder’s acceptance thereof authorizes and directs the Trustee on such Holder’s behalf to take such action as may be necessary or appropriate to effectuate the subordination provided in this Article 4 and appoints the Trustee such
Holder’s attorney-in-fact for any and all such purposes. 
 Section 4.7. Notice by the Company. The Company shall give
prompt written notice to a Responsible Officer of the Trustee at its Corporate Trust Office of any fact known to the Company that would prohibit the making of any payment of monies to or by the Trustee in respect of the Debentures pursuant to the
provisions of this Article 4; provided that any failure by the Company to give such notice shall not constitute a Default or an Event of Default. Notwithstanding the provisions of this Article 4 or any other provision of the Indenture, the Trustee
shall not be charged with knowledge of the existence of any facts that would prohibit the making of any payment of monies to or by the Trustee in respect of the Debentures pursuant to the provisions of this Article 4, unless and until a Responsible
Officer of the Trustee shall have received written notice thereof from the Company or a holder or holders of Senior Indebtedness or from any trustee therefor; and before the receipt of any such written notice, the Trustee, subject to the provisions
of this Article 4, shall be entitled in all respects to assume that no such facts exist; provided that if a Responsible Officer of the Trustee shall not have received the notice provided for in this Section 4.7 at least two Business Days
prior to the date (i) upon which by the terms hereof any money may become payable for any purpose (including, without limitation, the payment of the principal of (or premium, if any) or interest on any Debenture), or (ii) money and/or U.S.
Government Obligations are deposited in trust pursuant to Article XII of the Base Indenture then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such money and U.S. Government
Obligations and to apply the same to the purposes for which they were received, and shall not be affected by any notice to the contrary that may be received by it within two Business Days prior to such date. 

The Trustee, subject to the provisions of Article XI of the Base Indenture, shall be entitled to conclusively rely on the delivery to it of a
written notice by a Person representing himself to be a holder of Senior Indebtedness of the Company (or a trustee or representative on behalf of such holder) to establish that such notice has been given by a holder of such Senior Indebtedness or a
trustee or representative on behalf of any such holder or holders. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of such Senior Indebtedness to
participate in any payment or distribution pursuant to this Article 4, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of such Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article 4, and, if such evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such payment. 

  
 15 








 Upon any payment or distribution of assets of the Company referred to in this Article 4, the
Trustee and the Holders of the Debentures shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution,
winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors, agent or other person making such payment or distribution, delivered
to the Trustee or to the Holders of the Debentures, for the purpose of ascertaining the persons entitled to participate in such payment or distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 4. 

Section 4.8. Rights of the Trustee; Holders of Senior Indebtedness. The Trustee in its individual capacity shall be
entitled to all the rights set forth in this Article 4 in respect of any Senior Indebtedness at any time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in the Indenture shall deprive the Trustee of any of its
rights as such holder. 
 With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only
such of its covenants and obligations as are specifically set forth in this Article 4, and no implied covenants or obligations with respect to the holders of Senior Indebtedness shall be read into the Indenture against the Trustee. The Trustee shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness and, subject to the provisions of Article XI of the Base Indenture, the Trustee shall not be liable to any holder of Senior Indebtedness if it shall pay over or deliver to
Holders of the Debentures, the Company or any other Person money or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article 4 or otherwise. 

Nothing in this Article 4 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.05 or Section 11.01
of the Base Indenture. 
 Section 4.9. Subordination May Not Be Impaired. No right of any present or future holder of any
Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by
any noncompliance by the Company with the terms, provisions and covenants of the Indenture, regardless of any knowledge thereof that any such holder may have or otherwise be charged with. 

Without in any way limiting the generality of the foregoing paragraph, the holders of Senior Indebtedness may, at any time and from time to
time, without the consent of or notice to the Trustee or the Holders of the Debentures, without incurring responsibility to the Holders of the Debentures and without impairing or releasing the subordination provided in this Article 4 or the
obligations hereunder of the Holders of the Debentures to the holders of Senior Indebtedness, do any one or more of the following: (i) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, such Senior
Indebtedness, or otherwise amend or supplement in any manner such Senior Indebtedness or any instrument evidencing the same or any agreement under which such 

  
 16 








 
Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing such Senior Indebtedness; (iii) release any
Person liable in any manner for the collection of such Senior Indebtedness; and (iv) exercise or refrain from exercising any rights against the Company and any other Person. 

Section 4.10. Article Applicable to Paying Agents. In case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and then be acting hereunder, the term “Trustee” as used in this Article 4 shall in such case (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meanings
as fully and for all intents and purposes as if such Paying Agent were named in this article in addition to or in place of the Trustee. 

ARTICLE 5 

MISCELLANEOUS 

Section 5.1. Trust Indenture Act Controls. If and to the extent that any provision of this First Supplemental Indenture limits,
qualifies or conflicts with the duties imposed by, or another provision included in this First Supplemental Indenture which is required to be included in this First Supplemental Indenture by any of the provisions of Sections 310 to 318, inclusive,
of the Trust Indenture Act, such imposed duties or incorporated provision shall control. 
 Section 5.2. Governing Law. This
First Supplemental Indenture and the Debentures shall be deemed to be contracts made under the law of the State of New York, and for all purposes shall be governed by and construed in accordance with the law of the State of New York. 

Section 5.3. Counterparts. This First Supplemental Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

Section 5.4. Severability. In case any provision in this First Supplemental Indenture or in the Debentures shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 5.5. Ratification. The Base Indenture, as supplemented and amended by this First Supplemental Indenture, is in all
respects ratified and confirmed. The Indenture shall be read, taken and construed as one and the same instrument. All provisions included in this First Supplemental Indenture supersede any conflicting provisions included in the Base Indenture unless
not permitted by law. The Trustee accepts the trusts created by the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture. 

Section 5.6. Effectiveness. The provisions of this First Supplemental Indenture shall become effective as of the date hereof. 


  
 17 








 Section 5.7. Trustee Makes No Representation. The recitals contained herein are made
by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this First Supplemental Indenture. All rights, protections,
privileges, indemnities, immunities and benefits granted or afforded to the Trustee 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 in
each of its capacities hereunder, and each agent, custodian and other Person employed to act under this First Supplemental Indenture. 

[Remainder of page intentionally left blank.] 

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

			
	KEMPER CORPORATION
		
	By:	 	 /s/ Christopher L. Moses

		 	Name: Christopher L. Moses
		 	Title: Vice President and Treasurer
	
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	By:	 	 /s/ Michael Countryman

		 	Name: Michael Countryman
		 	Title: Vice President









 EXHIBIT A 

[THIS DEBENTURE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
(AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE ONLY IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND,
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.]1 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]2 

KEMPER CORPORATION 
 7.375%
Subordinated Debentures due 2054 
  

									
	No.	 		 		 		  	Principal Amount
	CUSIP No.	 		 		 		  	$

 Kemper Corporation, a Delaware corporation (hereinafter called the “Company”, which term includes
any successor Person under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
                     United States Dollars, subject to increase or decrease as set forth in 

 

	1 	This legend to be included if the Debenture is a Global Debenture. 


	2 	To be included if the Debenture is a Global Debenture for which the Depositary is The Depository Trust Company, unless such Depositary requires a different legend or otherwise does not require this legend.



  
 A-1 








 
the attached Schedule, on February 27, 2054 and to pay interest thereon from February 27, 2014 or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, quarterly in arrears on February 27, May 27, August 27 and November 27 in each year (each an “Interest Payment Date”), beginning May 27, 2014, subject to the Company’s right to defer
the payment of interest on the Debentures in accordance with said Indenture, at the rate of 7.375% per annum, until the principal hereof is paid or duly made available for payment. The interest so payable and punctually paid or duly provided
for on any Interest Payment Date shall, as provided in such Indenture, be paid to the Person in whose name this Debenture (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such interest, which
shall be the February 12, May 12, August 12 or November 12 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. However, interest paid at Maturity shall be paid to the Person
to whom the principal will be payable. 
 Any interest on this Debenture that is payable but is not punctually paid or duly provided for on
any Interest Payment Date shall forthwith cease to be payable to the Holder hereof on the relevant Record Date by virtue of his, her or its having been such Holder, and may be paid by the Company, at its election (i) to the Person in whose name
this Debenture (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date fixed by the Trustee, notice whereof shall be given to Holders of the Debentures not less than 10 calendar days prior to such
Special Record Date, or (ii) in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debentures may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. 
 Payment of the principal of (and premium, if any) and the interest on this Debenture shall be made at the
office of the Paying Agent, in such currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, provided that, at the option of the Company, payment of the interest on this
Debenture may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Register or, in accordance with arrangements satisfactory to the Trustee, by wire transfer to an account designated by the Holder
[; and provided further that all payments of principal of (and premium, if any) and interest on this Debenture shall be made in accordance with the applicable procedures of the Depositary for this Debenture]3. 
 This Debenture is one of the duly authorized series of Securities of the Company,
designated as the Company’s “7.375% Subordinated Debentures due 2054”, initially limited to an aggregate principal amount of $150,000,000, all issued or to be issued under and pursuant to an Indenture (the “Base Indenture”),
dated as of February 27, 2014, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (hereinafter referred to as the “Trustee”), as supplemented by the First Supplemental Indenture thereto, dated as of
February 27, 2014 (the “First Supplemental 
  

	3 	To be included if the Debenture is a Global Debenture. 


  
 A-2 








 
Indenture”, and together with the Base Indenture, the “Indenture”). Reference is hereby made to the Indenture for a description of the respective rights, limitation of rights,
obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Debentures. The Company may from time to time following the issuance of the Initial Debentures, without consent of the Holders of Debentures, issue
Additional Debentures under and pursuant to the Indenture, and the aggregate principal amount of Additional Debentures that may be authenticated and delivered under and pursuant to the Indenture is unlimited; provided, however, that no Additional
Debentures may be issued unless the Additional Debentures are fungible with the Debentures for U.S. federal income tax purposes or issued with a different CUSIP number. 

This Debenture is an unsecured obligation of the Company and is subordinated to all Senior Indebtedness of the Company in the manner set forth
in the Indenture. 
 Subject to, and in accordance with, the Indenture, the Company has the right, at any time and from time to time, to
defer the payment of interest on the Debentures. 
 The Company may redeem the Debentures in the manner and under the circumstances set
forth in the Indenture. 
 If an Event of Default with respect to the Debentures shall occur and be continuing, the principal of the
Debentures may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Debentures under the Indenture from time to time and at any time by the Company and
the Trustee with the consent of the Holders of a majority in aggregate principal amount of the Outstanding Debentures. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Debentures at
the time Outstanding, on behalf of the Holders of all Debentures, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Debenture shall be conclusive and binding upon such Holder and every subsequent Holder of this Debenture and of any Debenture issued upon the transfer hereof or in exchange herefor or in place hereof, even if notation of such consent
or waiver is not made upon any such Debenture. 
 Nothing in the Indenture or this Debenture shall affect or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Debenture to the Holder of this Debenture at the respective due dates herein stated, subject to the Company’s right to defer the
payment of interest on the Debentures in accordance with the Indenture, or affect or impair the right, which is also absolute and unconditional, of such Holder to institute suit to enforce the payment thereof. 

  
 A-3 








 As provided in the Indenture and subject to certain limitations set forth therein, the transfer
of this Debenture may be registered in the Register, upon surrender of this Debenture for registration of transfer at the Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the
Company, the Trustee and the Registrar duly executed by, the Holder hereof or by such Holder’s attorney duly authorized in writing, and thereupon one or more new Debentures for like aggregate principal amount of any authorized denomination or
denominations shall be executed, authenticated and delivered in the name of the designated transferee. 
 The Debentures are issuable only
in registered form without coupons in denominations of $25 and multiples of $25 in excess thereof. Subject to certain limitations therein set forth in the Indenture and in this Debenture, the Debentures are exchangeable for a like aggregate
principal amount of Debentures in different authorized denominations, as requested by the Holders surrendering the same. 
 No service
charge will be made for any registration of transfer or exchange of this Debenture, but the Company or the Trustee may require payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of a Debenture, other than in certain cases expressly provided in the Indenture. 
 Prior to
the due presentation of this Debenture for registration of transfer or exchange, the Company, the Trustee, the Paying Agent, the Registrar, any co-Registrar or any of their agents shall deem and treat the Person in whose name this Debenture is
registered as the absolute owner hereof (whether or not this Debenture shall be overdue and notwithstanding any notation of ownership or other writing thereon) for all purposes whatsoever, and none of the Company, the Trustee, the Paying Agent, the
Registrar, any co-Registrar or any of their agents shall be affected by any notice to the contrary. 
 The Indenture contains provisions
whereby (i) the Company may be discharged from its obligations with respect to the Debentures (subject to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the
Indenture, in each case if the Company irrevocably deposits with the Trustee money or U.S. Government Obligations sufficient to pay and discharge the entire indebtedness on all Debentures of this series, and satisfies certain other conditions, all
as more fully provided in the Indenture. 
 This Debenture shall be deemed to be a contract made under the law of the State of New York, and
for all purposes shall be governed by and construed in accordance with the law of the State of New York. 
 All terms used in this Debenture
which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 Unless the certificate of authentication
hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories, this Debenture shall not be entitled, and shall not entitle the Holder hereof, to any benefits under the
Indenture or be valid or obligatory for any purpose. 

  
 A-4 








 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	KEMPER CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:


  

  
 A-5 








 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

Date of authentication: 
  

			
	THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A, as Trustee
		
	By:	 	  

		 	Authorized Signatory



  
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 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
                                         

 
  

(Please print or typewrite name and address including postal zip code of Assignee) 

the within Debenture of KEMPER CORPORATION and does hereby irrevocably constitute and appoint
                                         attorney
to transfer the said Debenture on the books of the Company, with full power of substitution in the premises. 
  

					
	Dated:                                     
                                    	 		 	                                      
                                         
       
		 		 	(Signature)

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within
instrument in every particular, without alteration or enlargement or any change whatever. 

  
 A-7 








 Kemper Corporation 

7.375% Subordinated Debentures due 2054 
 No: 

SCHEDULE OF INCREASES AND DECREASES IN GLOBAL DEBENTURE 

The following increases or decreases in this Global Debenture have been made: 

 

									
	Date	  	 Amount of decrease in

principal amount of this
 Global
Debenture
	  	 Amount of increase in

principal amount of this
 Global
Debenture
	  	 Principal Amount of this

Global Debenture following
 such
decrease or increase
	  	 Signature of authorized

signatory of Trustee or
 Security
Custodian



  
 A-8