Document:

Unitrin, Inc. Non-Qualified Deferred Compensation Plan

 Exhibit 10.14 
 UNITRIN, INC. 
 NON-QUALIFIED DEFERRED COMPENSATION PLAN 
 As Amended and Restated Effective January 1, 2009 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I
	  	DEFINITIONS	  	1
	 ARTICLE II
	  	ELIGIBILITY	  	4
	 ARTICLE III
	  	DEFERRALS	  	5
	 ARTICLE IV
	  	FUNDING	  	6
	 ARTICLE V
	  	INVESTMENT OF FUNDS, ACCOUNT MAINTENANCE AND VESTING	  	8
	 ARTICLE VI
	  	PAYMENT OF BENEFITS	  	9
	 ARTICLE VII
	  	PAYMENTS UPON DEATH	  	11
	 ARTICLE VIII
	  	ADMINISTRATION OF THE PLAN	  	11
	 ARTICLE IX
	  	AMENDMENT OR TERMINATION	  	12
	 ARTICLE X
	  	GENERAL PROVISIONS	  	13

  

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 UNITRIN, INC. 
 NON-QUALIFIED DEFERRED COMPENSATION PLAN 
 The Unitrin, Inc. Non-Qualified Deferred Compensation Plan
(the “Plan”) was adopted effective January 1, 2002 and was amended and restated effective January 1, 2008 to comply with Code Section 409A. The Plan is now further amended and restated effective January 1, 2009 to
clarify the operation of the Plan and its compliance with Code Section 409A. 
 The purpose of the Plan is to provide a benefit to
directors who are not employees of Unitrin, Inc. and select executives of Unitrin, Inc. or one of its subsidiaries. Plan Participants are allowed the opportunity to elect to defer a portion of their Eligible Compensation (as defined in
Section 1.14) to some future period. The Plan is intended to be an unfunded “top hat plan” exempt from certain provisions of ERISA. 
 ARTICLE I 
 DEFINITIONS 
 1.1 General. For purposes of the Plan, the following terms, when capitalized, will have the following meanings. The masculine pronoun wherever used herein will include the feminine gender, the singular number
will include the plural, and the plural will include the singular, unless the context clearly indicates a different meaning. 
 1.2
“Account” means the aggregate of a Participant’s bookkeeping sub-accounts established pursuant to Section 5.1. 
 1.3 “Administrative Committee” means the Administrative Committee of the Unitrin, Inc. 401(k) Savings Plan. 
 1.4
“Affiliated Company” or “Affiliate” means any corporation, trade or business entity which is a member of a controlled group of corporations, trades or businesses of which the Company is also a member, as provided in Code
Sections 414(b) or (c). 
 1.5 “Beneficiary Designation Form” means a written document, the form of which the Company shall
determine from time to time, on which a Participant shall have the right to designate a beneficiary. 
 1.6 “Board” means
the Board of Directors of the Company. 
 1.7 “Bonus Compensation” means the annual formula and annual discretionary
management bonuses earned in a given year and generally paid in the following year. Bonus Compensation does not include other bonuses such as a relocation bonus, a hiring bonus or other periodic bonuses. 
 1.8 “Change of Control” means Change of Control as defined in Section 4.3. 
 1.9 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

 1.10 “Committee” means the Compensation Committee of the Board. 
 1.11 “Company” means Unitrin, Inc., a Delaware corporation, or, to the extent provided in Section 10.9, any successor corporation
or other entity resulting from a reorganization, merger or consolidation into or with the Company, or a transfer or sale of substantially all of the assets of the Company. 
 1.12 “Deferral Election” means the following: (a) for Employee Participants, an election to defer all or part of such
Participant’s Regular Base Salary or such Participant’s Bonus Compensation, all pursuant to Section 3.1, and (b) for Outside Director Participants, an election to defer Director Fees pursuant to Section 3.1. A
Participant’s Deferral Election shall also include an election by the Participant specifying the calendar year in which payments shall commence and the method of payment with respect to the payout of all future benefits attributable to
deferrals for the Plan Year. 
 1.13 “Director Fees” means the cash fees Outside Directors earn. 
 1.14 “Eligible Compensation” means Regular Base Salary, Bonus Compensation or Director Fees. 
 1.15 “Eligible Employees” means a select group of management employees of the Company or an Affiliate. 
 1.16 “Employee Participant” means with respect to any Plan Year, an Eligible Employee who has been designated in writing as a
Participant pursuant to Section 2.1. 
 1.17 “Employer” means the Company and its Affiliates. 
 1.18 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated
thereunder. 
 1.19 “401(a)(17) Limit” means the amount of compensation which may be considered by a plan sponsor for
purposes of determining benefits under a qualified retirement plan. This amount is automatically adjusted annually by the Secretary of the Treasury for increases in the cost-of-living and such adjustment shall automatically be taken into account by
the Plan. 
 1.20 “Investment Preference Form” means a written document, the form of which the Company shall determine from
time to time, on which a Participant shall communicate his or her investment preference. 
 1.21 “Outside Directors” mean
the directors of the Board who are not employees of the Company. 
 1.22 “Outside Director Participant” means with respect
to any Plan Year, a Participant who is an Outside Director for that Plan Year. 
 1.23 “Participation Date” means the date
on which an Eligible Employee or an Outside Director is eligible to participate in the Plan, as set forth in Section 2.2. 
  

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 1.24 “Participant” means an Employee Participant or an Outside Director Participant.

 1.25 “Plan” means the Unitrin, Inc. Non-Qualified Deferred Compensation Plan. 
 1.26 “Plan Administrator” means the Committee. 
 1.27 “Plan Year” means any calendar year during which the Plan is in effect. 
 1.28
“Regular Base Salary” means the annual scheduled base salary, excluding, without limitation, stock option income, severance pay, and income included in pay due to fringe benefits. 
 1.29 “Regulations” means the regulations, as amended from time to time, which are issued under Code Section 409A. 
 1.30 “Separation from Service” means the Participant’s termination from employment from the Employer, subject to the following and
other provisions of the Regulations: 
 (a) The employment relationship is treated as continuing intact while the Participant
is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the individual retains a right to reemployment with the Employer under an applicable statute or by
contract. A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Participant will return to perform services for the Employer. If the period of leave exceeds six months and the Participant does
not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first day immediately following such six-month period. 
 (b) In determining whether a Separation from Service has occurred, the following presumptions, which may be rebutted as provided in the
Regulations, shall apply: 
 (i) A Participant is presumed to have separated from service where the level of bona fide
services performed decreases to a level equal to 20% or less of the average level of services performed by the Participant during the immediately preceding 36-month period. 
 (ii) A Participant will be presumed not to have separated from service where the level of bona fide services performed continues at a
level that is 50% or more of the average level of services performed by the Participant during the immediately preceding 36-month period. 
 No presumption applies to a decrease in the level of bona fide services performed to a level that is more than 20% but less than 50% of the average level of bona fide services performed during the immediately preceding 36-month period. If a
Participant had not performed services for the Employer for 36 months, the full period that the Participant has performed services for the Employer shall be substituted for 36 months. 
  

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 (c) For purposes of this Section, the term “Employer” has the meaning set forth
in Section 1.17 provided that the following shall apply in determining whether a person is an Affiliate as defined in Section 1.4: 
 (i) In applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining a controlled group of corporations under Code Section 414(b), the phrase “at least 50 percent” shall be used
instead of “at least 80 percent” each place it appears in Code Sections 1563(a)(1), (2) and (3); and 
 (ii) In
applying Treas. Reg. Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 50 percent” is used instead of
“at least 80 percent” each place it appears in Treas. Reg. Section 1.414(c)-2. 
 (d) In the event of the sale
or other disposition of assets by the Company or an Affiliate (the “Seller”) to an unrelated service recipient (the “Buyer”), the Seller and the Buyer may specify whether a Separation from Service has occurred for a
Participant who would otherwise experience a Separation from Service with the Seller, in accordance with the rules set forth in Section 1.409A-1(h)(4) of the Regulations. 
 1.31 “Trust” means a so-called “rabbi trust,” the assets of which shall remain, for all purposes, a part of the general
unrestricted assets of the Company. 
 1.32 “Valuation Date” means each day that the New York Stock Exchange is open for
business. The determination of the Valuation Date as of which changes in investment preferences under the Plan are effected shall be made in accordance with rules and procedures established by the Company. 
 ARTICLE II 
 ELIGIBILITY

 2.1 Eligibility. The Board may, in its discretion, or an Affiliate may, in its discretion and subject to the approval of the
Board, designate in writing any Eligible Employee as a Participant who is eligible to participate in the Plan. An Outside Director is automatically eligible to participate in the Plan. 
 2.2 Participation Date and Notice. An Eligible Employee designated as a Participant pursuant to Section 2.1 shall become a Participant as of
the first day of the Plan Year following such designation. An Outside Director shall become a Participant as of the date he or she is elected a director of the Board. The date that an Eligible Employee or Outside Director is eligible to participate
in the Plan shall be known as the Participation Date. The Company will provide the Participant with notice of the Participant’s Participation Date and the forms needed to make an election pursuant to Section 3.2 as soon as reasonably
practicable after the Company is informed of a Participant’s Participation Date. 
  

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 ARTICLE III 
 DEFERRALS 
 3.1 Deferral Amounts. Participants may elect to defer Eligible Compensation
subject to the limits described below. A separate election for Regular Base Salary, Bonus Compensation and Director Fees must be made. Outside Director Participants may elect to defer up to 100% of their Director Fees. Employee Participants may
elect to defer up to 100% of their Regular Base Salary in excess of the 401(a)(17) Limit in effect for the year of payment. Employee Participants may also elect to defer up to 100% of their Bonus Compensation to the extent that Bonus Compensation
plus non-deferred Regular Base Salary is in excess of the 401(a)(17) Limit in effect for the year in which such bonus is earned, instead of for the year of payment. 
 3.2 Deferral Election. The Company shall provide each Participant, upon becoming a Participant and thereafter annually, with a Deferral Election to be filed by the Participant, in accordance with such
procedures as may be established by the Company but subject to the following: 
 (a) An Employee Participant desiring to participate in the
Plan must file with the Company a Deferral Election prior to the beginning of the Plan Year to which it pertains, at which time the election shall become irrevocable. Such Deferral Election shall be effective on the first day of the Plan Year
following the filing thereof. 
 (b) A Director Participant desiring to participate in the Plan must file with the Company an initial
Deferral Election within 30 days (or such lesser number of days as the Company shall determine) following such Participant’s Participation Date at which time the election shall become irrevocable. Such initial election shall be effective
commencing with the first day of the first month following such filing. Thereafter, a Deferral Election must be filed by a Director Participant prior to the beginning of the Plan Year to which it pertains, at which time the election shall become
irrevocable. Such Deferral Election shall be effective on the first day of the Plan Year following the filing thereof. 
 (c) In no event
shall a Participant be permitted to defer Eligible Compensation for any period that has commenced prior to the date on which the Plan is effective or the date on which a Deferral Election is signed by the Participant and accepted by the Company.

 (d) Upon receipt of a properly completed and executed Deferral Election, the Company shall notify the payroll department of the
Participant’s Employer to withhold that portion of the Participant’s Eligible Compensation specified in the agreement. All amounts shall be withheld ratably throughout the Plan Year except for any bonus amounts which shall be withheld in a
single lump sum. In no event shall the Participant be permitted to defer more than the amount specified by the Plan. 
  

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 ARTICLE IV 
 FUNDING 
 4.1 Unsecured Obligation. Individual Participant deferrals of Eligible Compensation
and the hypothetical investment earnings/losses thereon shall be reflected in book entries maintained by or on behalf of the Company, as set forth in Section 5.1. The existence of such book entries shall not create a trust of any kind, or a
fiduciary relationship between the Company, any third party record keeper and the Participant, his or her designated beneficiary, or other beneficiaries provided for under the Plan. The bookkeeping entries represent an unsecured obligation of the
Company to pay deferred Eligible Compensation and the investment earnings/losses thereon to a Participant at a future date. 
 4.2
Discretionary Rabbi Trust. If the Company so determines, in its sole discretion, payments to a Participant or his or her designated beneficiary or any other beneficiary hereunder may be made from assets held in a Trust. No person shall have
any interest in such assets by virtue of the Plan. The Company’s obligations hereunder shall be an unfunded and unsecured promise to pay money in the future. Any Participant having a right to receive payments pursuant to the provisions of the
Plan shall have no greater rights than any unsecured general creditor of the Company in the event of the Company’s insolvency or bankruptcy, and no person shall have nor acquire any legal or equitable right, claim or interest in or to any
property or assets of the Company. In no event shall the assets accumulated in the Trust be construed as creating a funded plan under the applicable provisions of ERISA, or under the Code, or under the provisions of any other applicable statute or
regulation. 
 4.3 Change in Control. 
 (a) Upon a Change of Control the Company shall, as soon as possible, but in no event longer than 30 days following the Change of Control, make an irrevocable contribution to the Trust in an amount that is sufficient
to pay each Participant or beneficiary the benefits to which such Participant(s) or their beneficiaries would be entitled pursuant to the terms of the Plan as of the date on which the Change of Control occurred. For purposes of the Plan “Change
of Control” shall mean the occurrence of any of the following events: 
  

	 	(i)	any “Person” (defined below) is or becomes the “Beneficial Owner,” (defined below) directly or indirectly, of securities of the Company (not including in the
securities beneficially owned by such Person any securities acquired directly from the Company or its “Affiliate” (defined below)) representing 25% or more of the combined voting power of the Company’s then outstanding securities,
excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (1) of subparagraph (iii) below; or 

  

	 	(ii)	 the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on December 31, 2008,
constituted the Board of Directors and any new director (other 

  

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than a director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors of
the Company) whose appointment or election by the Board of Directors or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds of the directors still in office who either were
directors on December 31, 2008 or whose appointment, election or nomination for election was previously so approved or recommended; or 

  

	 	(iii)	there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (1) a merger or
consolidation which results in the directors of the Company immediately prior to such merger or consolidation continuing to constitute at least a majority of the board of directors of the surviving entity or any parent thereof, or (2) a merger
or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities
Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliate) representing 25% or more of the combined voting power of the Company’s then outstanding securities; or 

  

	 	(iv)	the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company
of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets immediately following which the individuals who comprise the Board of Directors
immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or any parent thereof. 

 (b) As used in this Change of Control section: 
  

	 	(i)	“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”); 

  

	 	(ii)	“Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act; and 

  

	 	(iii)	 “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified in Sections 13(d)(3) and 14(d)(2) thereof, except that such
term shall not include (1) the Company or any entity, more than 50% 

  

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of the voting securities of which are Beneficially Owned by the Company, (2) a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or any of its Affiliates, (3) an underwriter temporarily holding securities pursuant to an offering of such securities, (4) a corporation owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of stock of the Company, (5) any individual, entity or group whose ownership of securities of the Company is reported on Schedule 13G pursuant to Rule 13d-1 promulgated under the Exchange
Act (but only for so long as such ownership is so reported) or (6) Singleton Group LLC or any successor in interest to such entity. 

 ARTICLE V 
 INVESTMENT OF FUNDS, ACCOUNT MAINTENANCE AND VESTING 
 5.1 Record Keeper. The Company shall appoint a Plan record keeper which shall establish and maintain an individual bookkeeping Account on behalf
of each Participant for purposes of determining each Participant’s benefits under the Plan. Separate sub-accounts shall be established for each Participant with respect to each year’s Deferral Election and for which a different form of
payment or payment start date has been elected. 
 5.2 Account Adjustments. 
 (a) The Plan record keeper shall adjust each Participant’s Account for amounts representing: 
  

	 	(i)	Participant deferrals, 

  

	 	(ii)	Hypothetical investment earnings/losses, 

  

	 	(iii)	Expenses, and 

  

	 	(iv)	Distributions paid to the Participant or beneficiaries. 

 (b) Each Participant electing to defer Eligible Compensation pursuant to the Plan shall also specify at the time the Deferral Election is made, the hypothetical measure(s) of investment performance from among the choices made available from
time to time to Plan participants by the Trust Administrative Committee of the Unitrin, Inc. 401(k) Savings Plan. If the Participant fails to specify the hypothetical measure of investment performance, the Company shall do so. The Participant’s
bookkeeping account shall be deemed to be invested in the hypothetical investment selected by the Participant, or if none, by the Company. Investment preferences selected by the Participant are used only to determine the value of a
Participant’s Account and in no event is the Company required to follow these investment preferences for actual plan investments. A Participant’s investment preference shall be communicated to the Company by completion and delivery to the
Company of an Investment Preference Form in such form as the Company shall 

  

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determine from time to time. Participants shall indicate their initial investment preferences by filing an Investment Preference Form with the Company prior
to the date on which deferrals commence under the terms of the Participant’s Deferral Election. Once elected, investment preferences shall be valid until revoked by filing a new Investment Preference Form. Participants shall have the
opportunity to change their investment preferences with respect to (i) new deferrals, (ii) their entire existing balances or (iii) deferrals made for a specific Plan Year, in accordance with such procedures as may be established by
the Company. 
 (c) The Plan record keeper shall determine the value of all Accounts maintained under the terms of the Plan on each Valuation
Date. The Plan record keeper shall provide each Participant with a statement of his or her individual bookkeeping Account reflecting adjustments to such Account during the period from the last statement date. Such statement shall be provided to
Participants as soon as administratively feasible following the end of each calendar quarter. 
 ARTICLE VI 
 PAYMENT OF BENEFITS 
 6.1
Distributions. A Participant’s or beneficiary’s benefit payable under the Plan shall be determined by reference to the value of each bookkeeping sub-account balance at the time of distribution. Sub-accounts shall be maintained for
each Plan Year’s deferrals. Benefit payments from the Plan shall be payable from the general assets of the Company which include any assets held in the Trust. 
 6.2 Timing of Payments. Subject to Section 6.4 through Section 6.10, each of a Participant’s subaccounts shall be paid or payment shall begin within 30 days following the specific date elected on
the Participant’s applicable Deferral Election. Except as set forth in Section 6.8 through Section 6.10, no Participant or beneficiary shall have any right to receive payment of his or her benefit under the Plan prior to the specific
date elected on the applicable Deferral Election. 
 6.3 Form of Payments. Each of a Participant’s subaccounts shall be paid as a
lump sum or in installments as elected in the applicable Deferral Election. A different form of payment, as to amount and timing, may be elected with respect to each year’s Deferral Election. Except as otherwise provided in Sections 6.4 and
6.5, once a Deferral Election is made with respect to amounts deferred for a Plan Year, it cannot be altered and is irrevocable. A Participant’s account balance shall be distributed to the Participant or his or her beneficiary in the form of
cash only. 
 6.4 Subsequent Deferral. A Participant may elect to delay payment or change the form of payment of any of his or her
sub-accounts if all of the following conditions are met with respect to such sub-account: 
 (a) Such election shall not take effect until at
least 12 months after the date on which the election is made; 
 (b) Payment must be deferred for a period of not less than five years from
the date such payment would otherwise have been paid; and 
  

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 (c) Any election must be made not less than 12 months before the first day of the calendar year in which
payment of such sub-account would otherwise be made or commence. 
 The right to a series of installment payments, as defined in the Regulations, shall be
treated as a right to a single payment. 
 6.5 Transitional Relief. Prior to January 1, 2009, a Participant may change the
specific date for payment and the form of payment for one or more of his or her subaccounts to the extent permitted by IRS Notice 2007-86 and administrative procedures adopted by the Company. 
 6.6 Acceleration Prohibited. Except as provided in Section 6.8 through 6.10, acceleration of the time of payment of any portion of the
balance of a Participant’s Account is prohibited. 
 6.7 Payments in Violation of Federal Securities Laws. To the extent
permitted by the Regulations, the Company may delay a benefit payment where the Company reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law. Such a benefit payment shall be made at the
earliest date at which the Company reasonably anticipates that the making of the benefit payment will not cause such violation and, if the Participant had elected installment payments, the first payment to the Participant shall include the payments
that the Participant would have received had payments begun as of the date such payments were scheduled to begin. Notwithstanding the foregoing, if a benefit payment to a Participant is delayed until the Participant’s Separation from Service,
then the benefit payment shall not be made before the first day of the seventh month after the Participant’s Separation from Service or, if earlier, the date of death of the Participant. 
 6.8 Accelerated Payment for Domestic Relations Orders. To the extent necessary to fulfill a domestic relations order (as defined in Code
Section 414(p)(1)(B)) and as permitted by the Regulations, the Company, in its sole discretion, may accelerate the time or schedule of a benefit payment under the Plan to an individual other than the Participant, or a benefit payment under the
Plan may be made to an individual other than the Participant. 
 6.9 Accelerated Payment for Failure to Comply with Code
Section 409A. To the extent permitted by the Regulations, at any time the Plan fails to meet the requirements of Code Section 409A and the Regulations, the Company may accelerate the time or schedule of a payment, or a payment under
the Plan may be made; provided, however, that such payment shall not exceed the amount required to be included in income as a result of the failure to comply with the requirements of Code Section 409A and the Regulations. 
 6.10 Small Benefits. If, upon the first day of the seventh month following a Participant’s Separation from Service (“Payment
Date”), a Participant’s Account is less than or equal to the applicable dollar limit under Code Section 402(g)(1)(B) and results in the determination and liquidation of the entirety of the Participant’s interest under all
agreements, methods, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Section 1.409A-1(c)(2) of the Regulations, the
Company may pay such Account to the Participant or his or her beneficiary in a single lump sum, in lieu of any further benefit payments hereunder, on the Payment Date. 
  

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 ARTICLE VII 
 PAYMENTS UPON DEATH 
 7.1 Payment to Beneficiary. Any benefit which a deceased Participant is
entitled to receive under the Plan shall be paid to such Participant’s beneficiary. Such death benefit shall be paid in the form and at the time elected in accordance with the Participant’s Deferral Elections. 
 7.2 Designation of Beneficiary. A Participant shall have the right to designate a beneficiary on the Beneficiary Designation Form and to amend or
revoke such designation at any time in writing. Such designation, amendment or revocation shall be effective only when filed with the Company. Any beneficiary designation, amendment or revocation shall apply to all past and present Deferral
Elections. 
 If no Beneficiary Designation Form is filed with the Company, or if the Beneficiary Designation Form is held invalid, or if no
beneficiary survives the Participant and benefits remain payable following the Participant’s death, the Company shall direct that payment of benefits be made to the person or persons in the first category in which there is a survivor. The
categories of successor beneficiaries, in order, are (a) the Participant’s spouse and (b) the Participant’s estate. 
 ARTICLE VIII 
 ADMINISTRATION OF THE PLAN 
 8.1 Plan Administration. The Plan Administrator is the Committee. The Committee has complete authority to interpret and administer the Plan. The
Committee’s responsibilities and obligations may be delegated as deemed necessary by the Committee from time to time. The Committee may establish administrative practices as necessary for the establishment and ongoing maintenance of the Plan.
The Committee may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons to
render advice with respect to any responsibility the Committee or such person may have under the Plan. The decisions made by and the actions taken by the Plan Administrator in the administration and interpretation of the Plan shall be final and
conclusive for all persons. If, after reading the Plan, Participants have questions about the Plan, such questions should be directed to the designated contact at the Company. 
 8.2 Claims. 
 Any Participant or
beneficiary who believes that there was an error in the calculation of his or her account balance or in the payment of benefits under the Plan shall file a claim with the Plan Administrator. The claim must be filed, signed and dated within 90 days
of the date on which the claimant learned of the facts from which such claim arises. The claim must be sent by certified mail or presented in person to the Plan Administrator. 
  

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 The Plan Administrator, acting through the Company, shall respond in writing to the claimant within a
reasonable period of time but not later than 90 days after receipt of the claim unless special circumstances require an extension of time for processing. If such extension of time is required, the Plan Administrator, acting through the Company,
shall furnish written notice of the extension to the claimant prior to the termination of the initial 90 day period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan
Administrator, acting through the Company, expects to render a final decision. In no event shall such extension exceed a period of 90 days from the end of the initial period. 
 8.3 Appeals. 
 Any claimant not
satisfied with the Plan Administrator’s decision of a claim shall have the right to appeal to the Plan Administrator. The appeal must be signed and dated by the claimant and include a copy of the claim submitted to the Plan Administrator as
well as a copy of the Plan Administrator’s decision. The appeal should explain why the claimant does not agree with the Plan Administrator’s decision. The appeal must be filed within 60 days of the receipt of the Plan Administrator’s
decision. The appeal must be sent by certified mail or presented in person to the Plan Administrator. 
 The Plan Administrator shall
promptly advise the claimant of its decision on the claimant’s appeal. Such decision shall be written in layman’s terms, shall include specific reasons for the decision and shall contain specific references to pertinent Plan provisions
upon which the decision is based. The decision on appeal shall be made no later than 60 days after the Plan Administrator’s receipt of the appeal, unless special circumstances require an extension of the time for processing. If such an
extension of time is required, the Plan Administrator shall furnish written notice of the extension to the claimant prior to the termination of the 60 day period. The extension notice shall indicate the special circumstances requiring an extension
of time and the date by which the Plan Administrator expects to render a final decision. If an extension of time is required, a decision shall be rendered as soon as possible, but not later than 120 days following receipt of the appeal. 

ARTICLE IX 
 AMENDMENT OR
TERMINATION 
 9.1 Amendment or Termination. The Company intends the Plan to be permanent but reserves the right, subject to
Section 9.2, to amend or terminate the Plan when, in the sole opinion of the Company, such amendment or termination is advisable. However, no amendment shall deprive a Participant or beneficiary of any of the benefits which he or she has
accrued under the Plan or otherwise adversely affect the Participant’s Account with respect to amounts credited thereto prior to the date such amendment is made. The Administrative Committee of the Unitrin, Inc. 401(k) Savings Plan (the
“Administrative Committee”) shall have the authority, on behalf of the Company, to amend the Plan in any manner permitted by Article IX of the Plan as the Administrative Committee considers desirable, appropriate or necessary, provided
that no such amendments, either individually or in the aggregate, have a material adverse financial impact on the Company and the Employers. The Board reserves the authority to make any other 

  

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amendments to the Plan, including, but not limited to, amendments that the Administrative Committee deems desirable, appropriate or necessary which would
have a material adverse financial impact on the Company and the Employers. 
 9.2 Effect of Amendment or Termination. No amendment or
termination of the Plan shall, without the express written consent of the affected current or former Participant or beneficiary, reduce or alter any benefit entitlement of such Participant or beneficiary. Upon Plan termination, no further deferrals
shall be made. In such event, the Participant or his or her beneficiary, as the case may be, shall be entitled to receive any benefit attributable to the deferrals accrued as of the day preceding the effective date of termination, plus hypothetical
investment earnings and less hypothetical investment losses, taxes and expenses chargeable to the Participant’s Account up to the benefit distribution date. The Plan Administrator shall make distributions of the Participant’s benefit
(a) in accordance with the Participant elections then in effect, or (b) if permitted by the Regulations and elected by the Company, in a single lump sum payment that is paid at such time as is permitted by Section 1.409A-3(j)(4)(ix)
of the Regulations. 
 ARTICLE X 
 GENERAL PROVISIONS 
 10.1 Taxes. The Company shall have the right to (a) require any Participant or beneficiary
to pay the Company the amount of any taxes which the Company may be required to withhold with respect to any benefits earned under, or distributions from, the Plan or (b) deduct from all amounts paid the amount of any taxes which the Company
may be required to withhold with respect to any such distributions. 
 10.2 Entire Agreement. The Plan document along with the
Deferral Election, Investment Preference Form, Beneficiary Designation Form and other administration forms required of Participants, and made known to them by the Company, shall constitute the entire agreement or contract between the Company and the
Participant regarding the Plan. No oral statement regarding the Plan may be relied upon by the Participant or any other person claiming through or under the Participant. 
 10.3 Construction. Any mention of “Articles,” “Sections” and subsections thereof, unless stated specifically to the contrary, refers to Articles, Sections or subsections in the Plan.
Headings of Articles, Sections and subsections are for convenient reference. The headings are not part of the Plan and are not to be considered in its construction. All references to statutory sections shall include the section as amended from time
to time. 
 10.4 Employment Rights. Neither the establishment of the Plan nor any modification thereof, nor the creation of any trust
or account, nor the payment of any benefits, shall be construed as conferring upon a Participant the right to continue to be employed by the Company in his or her present capacity, or in any capacity, or the right to continue to serve as an Outside
Director. The Plan relates to the payment of deferred compensation as provided herein, and is not intended to be an employment contract. 
  

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 10.5 Benefit Transfers. Neither the Participant nor his or her designated or other beneficiary
under the Plan shall have any right to transfer, assign, anticipate, hypothecate or otherwise encumber all or any part of the amounts payable under the Plan, except as provided in Section 6.8. No such amounts shall be subject to seizure by any
creditor of any such Participant or beneficiary, by a proceeding at law or in equity, nor shall any such amounts be transferable by operation of law in the event of bankruptcy, insolvency or death of the Participant, his or her designated
beneficiary or any other beneficiary hereunder. Any attempted assignment or transfer in contravention of this provision shall be void. 
 10.6 Governing Law. Construction, validity and administration of the Plan shall be governed by applicable Federal law and the laws of the State of Illinois. 
 10.7 Inurement. The Plan shall be binding upon and inure to the benefit of the Company and its successors and assigns, and the Participant, his or
her successors, heirs, executors, administrators and beneficiaries. 
 10.8 Notices. Any notice (other than pursuant to enrollment
materials) required or permitted to be given pursuant to the Plan shall be in writing, and shall be signed by the person giving the notice. If such notice is mailed, it shall be sent by United States first class mail, postage prepaid, addressed to
such person’s last known address as shown on the records of the Company. The date of such mailing shall be deemed to be the date of notice, but the notice shall not be effective until actually received. The Company or the Participant may change
the address to which notice is sent by giving notice of such change in the manner above. 
 10.9 Corporate Successor. The Plan shall
not be automatically terminated by a Change of Control event, but the Plan shall be continued after such Change of Control event only if and to the extent that the transferee, purchaser or successor entity agrees to continue the Plan. In the event
that the Plan is not continued by the transferee, purchaser or successor entity, then the Plan shall terminate subject to the provisions of Section 9.2. 
 10.10 Unclaimed Benefit. Each Participant shall keep the Company informed of his or her current address and the current address of his or her beneficiary. The Company shall not be obligated to search for the
whereabouts of any person. The Company is authorized to adopt procedures regarding unclaimed benefits that provide for the irrevocable forfeiture of a benefit if the Company is unable to locate the Participant, or if the Participant is deceased, his
or her beneficiary. Such procedures shall be consistent with the Regulations and any other guidance issued by the Internal Revenue Service. 
 10.11 Limitations on Liability. Notwithstanding any of the preceding provisions of the Plan, neither the Company nor any individual acting as an employee or agent of the Company shall be liable to any Participant, former Participant,
beneficiary or any other person for any claim, loss, liability or expense incurred in connection with the Plan. 
 10.12 No Guaranty of
Benefits. Nothing contained in the Plan shall constitute a guaranty by the Company or any other entity or person that the assets of the Company will be sufficient to pay any benefit hereunder. 
  

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 10.13 409A Compliance. The Plan is intended to be a nonqualified deferred compensation plan that
complies with the provisions of Code Section 409A and the Regulations, and shall be interpreted and operated consistent with such intent. If any ambiguity exists in the terms of the Plan, it shall be interpreted to be consistent with this
purpose. 
 IN WITNESS WHEREOF, a duly appointed member of the Administrative Committee has executed the Plan on this 19th day of December,
2008. 
  

			
	UNITRIN, INC.
		
	By:	 	  

		
	Its:	 	  

  

 15Unitrin, Inc. Severance Plan, as amended and restated effective January 1, 2009

 Exhibit 10.16 
 UNITRIN, INC. 
 SEVERANCE PLAN 
 Unitrin, Inc. (the “Company”) adopted the Unitrin, Inc. Severance Plan (the “Plan”) effective January 1, 2002 for
the benefit of certain employees of the Company and its Subsidiaries and Affiliates, on the terms and conditions hereinafter stated. The Plan is being amended and restated as of January 1, 2009. 
 The Plan, as set forth herein, is intended to help retain qualified employees, maintain a stable work environment and provide economic security to
certain employees of the Company and its Subsidiaries and Affiliates in the event of a Qualifying Termination following a Change in Control. The Plan, as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of ERISA,
is intended to be excepted from the definitions of “employee pension benefit plan” and “pension plan” set forth under Section 3(2) of ERISA, and is intended to meet the descriptive requirements of a plan constituting a
“severance pay plan” within the meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b). 
 Section 1. DEFINITIONS. As hereinafter used: 
 1.1 “Affiliate” shall have the meaning set forth in Rule
12b-2 promulgated under Section 12 of the Exchange Act. 
 1.2 “Annual Compensation” shall mean: 
 (a) with respect to a Severed Employee who was a salaried employee immediately prior to his or her Qualifying Termination, such Severed
Employee’s rate of annual base salary as in effect immediately prior to such Severed Employee’s Qualifying Termination, without regard to any decrease in such salary constituting Good Reason; 
 (b) with respect to a Severed Employee who was compensated primarily based on commissions immediately prior to his or her Qualifying
Termination, the total commissions earned by such Severed Employee with respect to the 12 full calendar month period ending immediately prior to such Severed Employee’s Qualifying Termination, without regard to any decrease in the rate of such
commissions constituting Good Reason; 
 (c) with respect to a Severed Employee who was compensated based on an hourly rate of
pay immediately prior to his or her Qualifying Termination, the total hourly wages earned by such Severed Employee with respect to the 12 full calendar month period ending immediately prior to such Severed Employee’s Qualifying Termination,
without regard to any decrease in the Severed Employee’s hourly rate of pay constituting Good Reason; 
 1.3 “Beneficial
Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act. 
  

 1 

 1.4 “Board” shall mean the Board of Directors of the Company, or any successor thereto.

 1.5 “Cause” shall mean, with respect to a termination of the Employee’s employment with the Employer,
(a) fraud, misappropriation of or intentional material damage to the property or business of the Company (including its Subsidiaries and Affiliates), which in any such case is materially injurious to the Company (including its Subsidiaries and
Affiliates), monetarily or otherwise, or (b) the conviction of the Employee for the commission of a felony. 
 1.6 A “Change in
Control” shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred: 
 (a) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the
Company or any of its Subsidiaries or Affiliates) representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction
described in clause (i) of paragraph (c) below; or 
 (b) the following individuals cease for any reason to
constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds of the
directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 
 (c) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other
corporation, other than (i) a merger or consolidation which results in the directors of the Company immediately prior to such merger or consolidation continuing to constitute at least a majority of the board of directors of the Company, the
surviving entity or any parent thereof or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or any of its Subsidiaries or Affiliates) representing 25% or more of the combined voting power of the
Company’s then outstanding securities; or 
 (d) the shareholders of the Company approve a plan of complete liquidation
or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of
the Company’s assets immediately following which the individuals who comprise the Board 

  

 2 

 
immediately prior thereto constitute at least a majority of the board of directors of the entity to which such assets are sold or disposed or any parent
thereof. 
 1.7 “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time. 
 1.8 “Employee” shall mean any person who is employed by the Employer on a full-time basis (as determined under the Employer’s
policies) and whose compensation is reported on a Form W-2, excluding any Employee who has an individual severance agreement that provides for benefits in connection with a Change in Control. For purposes of the Plan, an Employee shall be considered
to continue to be employed by the Employer on a full-time basis during sick leave, military leave or any other leave of absence approved by the Employer. 
 1.9 The “Employer” of an Employee shall mean the Company or any Subsidiary or Affiliate of the Company by which such Employee is employed. 
 1.10 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time. 
 1.11 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 1.12 “Good Reason” shall mean any action taken by the Employer which results in a material negative change to the Employee in the
employment relationship, such as the duties to be performed, the conditions under which such duties are to be performed or the compensation to be received for performing such services. A termination by the Employee shall not constitute termination
for Good Reason unless the Employee shall first have delivered to the Employer written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than 90 days
after the occurrence of such event), and there shall have passed a reasonable time (not less than 30 days) within which the Company may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good
Reason as identified by the Employee. 
 1.13 “Level I Employee” shall mean any Employee who is primarily compensated by
commissions with at least three continuous years of service with the Employer as of the date of such Employee’s Qualifying Termination. 
 1.14 “Level II Employee” shall mean any Employee who is not primarily compensated by commissions and whose Annual Compensation is greater than $150,000. 
 1.15 “Level III Employee” shall mean any Employee who is not primarily compensated by commissions and whose Annual Compensation is at
least $100,000 and not more than $150,000. 
 1.16 “Level IV Employee” shall mean any Employee who is not primarily
compensated by commissions and whose Annual Compensation is at least $50,000 and less than $100,000. 
  

 3 

 1.17 “Level V Employee” shall mean any Employee who is not primarily compensated by
commissions and whose Annual Compensation is less than $50,000. 
 1.18
“Payment Date” means, with respect to a Severed Employee, the March 15th that next follows the calendar year in which the
Severed Employee’s Severance Date occurred. 
 1.19 “Person” shall have the meaning given in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (a) the Company or any of its Subsidiaries or Affiliates, (b) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Subsidiaries or Affiliates, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, (d) a corporation owned, directly or indirectly, by the
shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, (e) any individual, entity or group whose ownership of securities of the Company is reported on Schedule 13G pursuant to Rule 13d-1
promulgated under the Exchange Act (but only for so long as such ownership is so reported) or (f) Singleton Group LLC or any successor in interest to such entity. 
 1.20 “Plan Administrator” shall mean the committee appointed to administer the Plan. Such committee shall be selected by the Board. Following a Change in Control, a person may be appointed to such
committee only by a two-thirds majority of the individuals who were members of the Board immediately prior to such Change in Control. 
 1.21
A “Potential Change in Control” shall be deemed to occur in the event that (a) the Company enters into an agreement, the consummation of which would result in a Change in Control, (b) the Company or any Person publicly
announces an intention to take or to consider taking action which, if consummated would constitute a Change in Control, (c) any Person becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 15% or more
of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities (not including in the securities beneficially owned by such Person any securities acquired directly
from the Company or any of its Subsidiaries or Affiliates) or (d) the Board adopts a resolution to the effect that, for purposes of the Plan, a Potential Change in Control has occurred. 
 1.22 “Qualifying Termination” shall mean a termination of an Employee’s employment during the 2-year period immediately following a
Change in Control, either (a) by the Employer without Cause or (b) by the Employee for Good Reason. A termination of employment will not be deemed to have occurred upon (i) the transfer of the Employee to employment with a Subsidiary
or Affiliate of the Company or (ii) the divestiture of a business with which the Employee is primarily associated if the Employee is offered comparable employment by the successor company. 
 1.23 “Severance Benefits” shall mean the payments and benefits provided to Severed Employees pursuant to Sections 2.1, 2.2, and 2.3
hereof. 
  

 4 

 1.24 “Severance Date” shall mean the date on which an Employee incurs a Qualifying
Termination. 
 1.25 “Severance Weeks” means, for each Employee, one week for (a) each full year such Employee has been
continuously employed by the Employer, plus (without duplication), if there has been a break in such Employee’s employment with the Employer, (b) each full year of employment for which such Employee has received credit under any retirement
plan or program maintained by the Employer for employment prior to such break, but in no event less than four (4) weeks or more than twenty six (26) weeks (thirteen (13) weeks in the case of a Level I Employee). For purposes of
calculating an Employee’s full years of employment, (x) any partial year of employment of at least thirty five (35) weeks shall count as a full year of employment and (y) employment at one Employer shall count (without
duplication) toward the number of years of employment at another Employer, provided that (i) there is no break (other than as the result of vacation or sick leave, military leave or other approved leave of absence) in the employment between the
two Employers or (ii) such Employee has received credit under any retirement plan or program maintained by the Employer for such years of employment prior to such break. 
 1.26 “Severed Employee” shall mean an Employee who has incurred a Qualifying Termination. 
 1.27 “Subsidiary” shall mean any entity at least 50% of the voting securities of which are Beneficially Owned by the Company.

 Additional definitions are set forth within the Plan and shall have the meanings ascribed to them in the Plan. 
 Section 2. BENEFITS. 
 2.1 The Company shall pay
(or shall cause the Severed Employee’s Employer to pay) to each Severed Employee a severance payment (the “Severance Payment”) equal to: 
 (a) in the case of a Level I Employee, the product of (i) one-fifty-second
( 1/52) of his or her Annual Compensation and (ii) his or her Severance Weeks. 
 (b) in the case of a Level II Employee, one year’s Annual Compensation plus
the product of (i) one-fifty-second ( 1/52) of his or her Annual Compensation and (ii) his or her Severance Weeks.

 (c) in the case of a Level III Employee, thirty-five-fifty
seconds ( 35/52) of his or her Annual Compensation plus the product of (i) one-fifty-second ( 1/52) of his or her Annual Compensation and (ii) his or her Severance Weeks. 
 (d) in the case of a Level IV Employee, seventeen-fifty seconds ( 17/52) of his or her Annual Compensation plus the product of (i) one-fifty-second ( 1/52) of his or her Annual Compensation and (ii) his or her Severance Weeks. 
  

 5 

 (e) in the case of a Level V
Employee, the product of (i) one-fifty-second ( 1/52) of his or her Annual Compensation and (ii) his or her
Severance Weeks. 
 The Severance Payment shall be paid to such Severed Employee in a lump sum as soon as practicable following the Severed
Employee’s Qualifying Termination, but no later than the Payment Date. The Severance Payment that a Severed Employee receives under the Plan shall not be taken into account for purposes of determining benefits under any other qualified or
nonqualified plans of the Employer. 
 2.2 For a period equal to a number of weeks (not to exceed fifty-two (52) in total) equal to the
sum of (i) the Severed Employee’s Severance Weeks and (ii) in the case of (a) Level I Employees, eight (8) weeks, (b) Level II and III Employees, fifty-two (52) weeks, (c) Level IV Employees, thirty-five
(35) weeks, and (d) Level V Employees, seventeen (17) weeks (the “Welfare Benefit Continuation Period”), the Company shall provide (or shall cause the Severed Employee’s Employer to provide) the Severed Employee
and anyone entitled to claim under or through such Severed Employee with all Employer-provided benefits under any group health plan (including any dental coverage) and life insurance plan of the Employer (as in effect immediately prior to such
Severed Employee’s Severance Date or, if more favorable to the Severed Employee, immediately prior to the Change in Control) for which employees of the Employer are eligible, to the same extent as if such Severed Employee had continued to be an
employee of the Employer during the Welfare Benefit Continuation Period, at no greater cost to the Severed Employee than the cost to the Severed Employee immediately prior to such date. To the extent that the Severed Employee’s participation in
Employer benefit plans is not practicable, the Company shall arrange to provide, at the Company’s sole expense, the Severed Employee and anyone entitled to claim under or through such Severed Employee with equivalent health and life insurance
benefits under an alternative arrangement during the Welfare Benefit Continuation Period. The coverage period for purposes of the group health continuation requirements of Section 4980B of the Code shall commence at the expiration of the
Welfare Benefit Continuation Period. The benefits described in this Section 2.2 shall end as of the date the Severed Employee becomes covered under any group health plan maintained by a subsequent employer which provides benefits to the Severed
Employee (and anyone entitled to claim the benefits described in this Section 2.2 under or through such Severed Employee) not materially less favorable than the benefits described in this Section 2.2, and which does not exclude any
pre-existing condition that the Severed Employee or his or her dependents may have at that time. 
 2.3 Outplacement. 
 (a) Each Level II and III Employee who is entitled to receive a Severance Payment under Section 2.1 shall also be entitled to receive
outplacement services consisting of counseling, networking, spousal programs and the use of a private office. Such outplacement services will be provided for a maximum of thirty-nine (39) weeks by a reputable organization selected by the
Company. These outplacement services will be paid for by the Company. 
 (b) Each Level IV Employee who is entitled to receive
a Severance Payment under Section 2.1 shall also be entitled to receive outplacement services consisting of counseling, group workshops and the use of a semi-private office. Such 

  

 6 

 
outplacement services will be provided for a maximum of twenty-six (26) weeks by a reputable organization selected by the Company. These outplacement
services will be paid for by the Company. 
 (c) Each other Employee who is entitled to receive a Severance Payment under
Section 2.1 shall also be entitled to receive outplacement services consisting of group workshops, resume writing assistance and help-line support. Such outplacement services will be provided for a maximum of eight (8) weeks by a reputable
organization selected by the Company. These outplacement services will be paid for by the Company. 
 2.4 In the event of a claim by an
Employee as to the amount or timing of any payment or benefit under the Plan, such Employee shall present the reason for his or her claim in writing to the Plan Administrator. The Plan Administrator shall, within 90 days after receipt of such
written claim, send a written notification to the Employee as to its disposition. In the event the claim is wholly or partially denied, such written notification shall (a) state the specific reason or reasons for the denial, (b) make
specific reference to pertinent Plan provisions on which the denial is based, (c) provide a description of any additional material or information necessary for the Employee to perfect the claim and an explanation of why such material or
information is necessary, and (d) set forth the procedure by which the Employee may appeal the denial of his or her claim. In the event an Employee wishes to appeal the denial of his or her claim, he or she may request a review of such denial
by making application in writing to the Plan Administrator within 60 days after receipt of such denial. Such Employee (or his or her duly authorized legal representative) may, upon written request to the Plan Administrator, review any documents
pertinent to his or her claim, and submit in writing issues and comments in support of his or her position. Within 60 days after receipt of a written appeal (unless special circumstances require an extension of time, but in no event more than 120
days after such receipt), the Plan Administrator shall notify the Employee of the final decision. The final decision shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the
claimant, and specific references to the pertinent Plan provisions on which the decision is based. 
 2.5 Any further dispute or controversy
arising under or in connection with the Plan with respect to an Employee shall be settled exclusively by arbitration at a location within fifty miles from the location of such Employee’s job with an Employer immediately prior to the Change in
Control (determined without regard to any relocation thereof which constitutes Good Reason) in accordance with the rules of the American Arbitration Association then in effect; provided, however, that the evidentiary standards set
forth in the Plan shall apply. Judgment may be entered on the award of the arbitrator in any court having jurisdiction. Each party shall bear its own expenses of such arbitration. 
 2.6 Cap. 
 (a)
Notwithstanding any other provision of the Plan, in the event that any payment or benefit received or to be received by the Employee in connection with a Change in Control or the termination of the Employee’s employment (whether pursuant to the
terms of the Plan or any other plan, arrangement or agreement with the Company, 

  

 7 

 
any Person whose actions result in a Change in Control or any Person Affiliated with the Company or such Person) (all such payments and benefits, including
the Severance Benefits, being hereinafter called “Total Payments”) would not be deductible (in whole or part), by the Company, Affiliate or Person making such payment or providing such benefit as a result of Code section 280G, then,
to the extent necessary to make such portion of the Total Payments deductible (and after taking into account any reduction in the Total Payments provided by reason of Code section 280G in such other plan, arrangement or agreement), the cash
Severance Payments shall first be reduced (if necessary, to zero), and all other Severance Payments shall thereafter be reduced (if necessary, to zero); provided, however, that the Employee may elect to have the noncash Severance
Payments reduced (or eliminated) prior to any reduction of the cash Severance Payments. 
 (b) For purposes of this
limitation, (i) no portion of the Total Payments the receipt or enjoyment of which the Employee shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Code section 280G(b) shall be
taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Employee and selected by the accounting firm which was,
immediately prior to the Change in Control, the Company’s independent auditor (the “Auditor”), does not constitute a “parachute payment” within the meaning of Code section 280G(b)(2), including by reason of Code
section 280G(b)(4)(A), (iii) the Severance Benefits shall be reduced only to the extent necessary so that the Total Payments (other than those referred to in clauses (i) or (ii)) in their entirety constitute reasonable compensation for
services actually rendered within the meaning of Code section 280G(b)(4)(B) or are otherwise not subject to disallowance as deductions by reason of Code section 280G, in the opinion of Tax Counsel, and (iv) the value of any noncash benefit or
any deferred payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of Code sections 280G(d)(3) and (4). 
 (c) If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding that, notwithstanding the
good faith of the Employee and the Company in applying the terms of this Section 2.6, the Total Payments paid to or for the Employee’s benefit are in an amount that would result in any portion of such Total Payments being subject to the
Excise Tax, then, if such repayment would result in (i) no portion of the remaining Total Payments being subject to the Excise Tax and (ii) a dollar-for-dollar reduction in the Employee’s taxable income and wages for purposes of
federal, state and local income and employment taxes, the Employee shall have an obligation to pay the Company upon demand an amount equal to the sum of (i) the excess of the Total Payments paid to or for the Employee’s benefit over the
Total Payments that could have been paid to or for the Employee’s benefit without any portion of such Total Payments being subject to the Excise Tax; and (ii) interest on the amount set forth in clause (i) of this sentence at the rate
provided in Code section 1274(b)(2)(B) from the date of the Employee’s receipt of such excess until the date of such payment. 
  

 8 

 Section 3. PLAN ADMINISTRATION. 
 3.1 The Plan shall be interpreted, administered and operated by the Plan Administrator, which shall have complete authority, in its sole discretion subject to the express provisions of the Plan, to determine who shall
be eligible for Severance Benefits, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, and to make all other determinations necessary or advisable for the administration of the Plan. 
 3.2 All questions of any character whatsoever arising in connection with the interpretation of the Plan or its administration or operation shall be
submitted to and settled and determined by the Plan Administrator in an equitable and fair manner in accordance with the procedure for claims and appeals described in Section 2.4 hereof. 
 3.3 The Plan Administrator may delegate any of its duties hereunder to such person or persons from time to time as it may designate. 
 3.4 The Plan Administrator is empowered, on behalf of the Plan, to engage accountants, legal counsel and such other personnel as it deems necessary or
advisable to assist it in the performance of its duties under the Plan. The functions of any such persons engaged by the Plan Administrator shall be limited to the specified services and duties for which they are engaged, and such persons shall have
no other duties, obligations or responsibilities under the Plan. Such persons shall exercise no discretionary authority or discretionary control respecting the management of the Plan. All reasonable expenses thereof shall be borne by the Company.

 Section 4. PLAN MODIFICATION OR TERMINATION. 
 The Plan may be amended by the Plan Administrator or terminated by the Board at any time; provided, however, that (a) no termination or amendment of the Plan may reduce the Severance Benefits to be
paid or provided under the Plan to an Employee if the Employee’s termination of employment with the Employer has occurred prior to such termination of the Plan or amendment of its provisions and (b) during the pendency of a Potential
Change in Control and during the two-year period following a Change in Control, the Plan may not be terminated or amended, if such amendment would be adverse to the interests of any Employee or his or her beneficiary, without the consent of such
Employee or beneficiary. 
 Section 5. GENERAL PROVISIONS. 
 5.1 Except as otherwise provided herein or by law, none of the payments, benefits or rights of any Employee shall be subject to any claim of any creditor, and, in particular, to the fullest extent permitted by law,
all such payments, benefits and rights shall be free from attachment, garnishment, trustee’s process, or any other legal or equitable process available to any creditor of such Employee. No Employee shall have the right to alienate, anticipate,
commute, pledge, encumber or assign any of the benefits or payments which he or she may expect to receive, contingently or otherwise, under the Plan. 
  

 9 

 5.2 Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund,
trust or account, nor the payment of any benefits shall be construed as giving any Employee, or any person whomsoever, the right to be retained in the service of the Employer, and all Employees shall remain subject to discharge to the same extent as
if the Plan had never been adopted. 
 5.3 If any provision of the Plan shall be held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included. 
 5.4 The Company shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Company, expressly and
unconditionally to assume and agree to perform the Company’s obligations under the Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. In such event,
the term “Company,” as used in the Plan, shall mean the Company as herein before defined and any successor or assignee to the business or assets which by reason hereof becomes bound by the terms and provisions of the Plan. 
 5.5 The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed
in the construction of the Plan. 
 5.6 The Plan shall not be funded. No Employee shall have any right to, or interest in, any assets of the
Company which may be applied by the Company to the payment of benefits or other rights under the Plan. 
 5.7 Any benefit payable to or for
the benefit of a minor, an incompetent person or other person incapable of giving a receipt therefor shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such
person, and such payment shall fully discharge the Company, the Plan Administrator and all other parties with respect thereto. If a Severed Employee dies prior to the payment of all benefits due such Severed Employee, such unpaid amounts shall be
paid to the executor, personal representative or estate of such Employee. 
 5.8 The Severance Benefits that a Severed Employee may be
entitled to receive pursuant to the Plan are not intended to be duplicative of any similar benefits to which a Severed Employee may be entitled from the Company or any of its Subsidiaries or Affiliates under any other severance plan, agreement,
policy or program maintained by the Company or any of its Subsidiaries or Affiliates or to which the Company or any of its Subsidiaries or Affiliates is a party. Accordingly, to the extent permissible under Code section 409A, the Company shall
reduce the benefits to which a Severed Employee may be entitled under the Plan to take account of any other similar benefits to which the Severed Employee is entitled from the Company or any of its Subsidiaries or Affiliates; provided,
however, that if the amount of benefits to which such Severed Employee is entitled under such other severance plan, agreement, policy or program is greater than the benefits to which the Severed Employee is entitled under the Plan, the Severed
Employee will be entitled to receive the full amount of the benefits to 

  

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which such Employee is entitled under such other plan, agreement, policy or program and no benefits under the Plan. 
 5.9 Any notice or other communication required or permitted pursuant to the terms hereof shall have been duly given when delivered or mailed by United
States mail, first class, postage prepaid, addressed to the intended recipient at his, her or its last known address. 
 5.10 The Plan shall
be construed and enforced according to the laws of the State of Illinois, without giving effect to its principles of conflicts of law, to the extent not preempted by federal law, which shall otherwise control. 
 Section 6. 409A COMPLIANCE. 
 6.1 The Plan shall
be interpreted and administered in a manner so that any amount or benefit payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Code section 409A and the regulations and other
guidance issued thereunder. 
 6.2 Notwithstanding anything in the Plan to the contrary, to the extent that the requirements of Code section
409A apply to any amount or benefit that would otherwise be payable or distributable hereunder by reason of the Employee’s termination of employment, such amount or benefit will not be payable or distributable to the Employee by reason of such
circumstance unless the circumstances giving rise to such termination of employment meet any description or definition of “separation from service” in Code section 409A and applicable regulations, without giving effect to any elective
provisions that may be available under such definition, except that in determining whether there is a separation from service with the employer (as defined in the regulations under Code section 409A), the employer shall be determined as follows:

 (a) In applying Code section 1563(a)(1), (2) and (3) for purposes of determining a controlled group of
corporations under Code section 414(b), the phrase “at least 50 percent” shall be used instead of “at least 80 percent” each place it appears in Code section 1563(a)(1), (2) and (3); and 
 (b) In applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated)
that are under common control for purposes of Code section 414(c), “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2. 
 6.3 Nothing in this Section 6 prohibits the vesting of any amount upon a termination of employment, however defined. If this Section 6 prevents
the payment or distribution of any amount or benefit, such payment or distribution shall be made on the date, if any, on which an event occurs that constitutes a Code section 409A-compliant “separation from service” or such later date as
may be required by Section 6.4 below. 
 6.4 Notwithstanding anything in the Plan to the contrary, if any amount or benefit is
nonqualified deferred compensation for purposes of Code section 409A that would otherwise be payable or distributable under the Plan by reason of the Employee’s separation 

  

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from service during a period in which he is a Specified Employee (as defined in the regulations under Code section 409A), then, subject to any permissible
acceleration of payment by the Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes): 
 (a) If the payment or distribution is payable in a lump sum, the Employee’s right to receive payment or distribution of such
non-exempt deferred compensation will be delayed until the earlier of Employee’s death or the first day of the seventh month following the Employee’s separation from service; and 
 (b) If the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise be
payable during the six-month period immediately following the Employee’s separation from service will be accumulated and the Employee’s right to receive payment or distribution of such accumulated amount will be delayed until the earlier
of the Employee’s death or the first day of the seventh month following the Employee’s separation from service, whereupon the accumulated amount will be paid or distributed to the Employee on such date and the normal payment or
distribution schedule for any remaining payments or distributions will resume. 
 6.5 With regard to any provision herein that provides for
reimbursement of costs and expenses or in-kind benefits that are not exempt from Code section 409A, (a) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (b) the amount of
expenses eligible for reimbursement, or in-kind benefits, provided during any of the Employee’s taxable years shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other of the Employee’s
taxable years, provided that the foregoing clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code section 105(b) solely because such arrangement provides for a limit on the amount of expenses
that may be reimbursed over some or all of the period the arrangement is in effect and (c) such payments shall be made on or before the last day of the Employee’s taxable year following the taxable year in which the expenses was incurred.

  

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