Document:

Exhibit 10.8.14

                                  CONSECO, INC.

            AMENDED AND RESTATED 1997 NON-QUALIFIED STOCK OPTION PLAN

                                   ARTICLE I.

                                     Purpose

          The purpose of the CONSECO, INC. 1997 NON-QUALIFIED STOCK OPTION PLAN
(the "Plan") is to provide a means through which CONSECO, INC., an Indiana
corporation (the "Company"), may provide incentives to increase the personal
financial identification of key personnel with the long-term growth of the
Company and the interests of the Company's shareholders through the ownership
and performance of the common stock of the Company, to enhance the Company's
ability to retain key personnel and to attract outstanding prospective executive
employees.

                                   ARTICLE II.

                                   Definitions

          The following definitions shall be applicable throughout the Plan
unless specifically modified by any paragraph:

          (a) "Board" means the Board of Directors of the Company.

          (b) A "Change of Control" of the Company shall mean a change of
control of a nature that would be required to be reported in response to Item
6(e) of Schedule 14A of Regulation 14A promulgated under the 1934 Act as revised
effective January 20, 1987, or, if Item 6(e) is no longer in effect, any
regulations issued by the Securities and Exchange Commission pursuant to the
1934 Act which serve similar purposes; provided, that, without limitation, (x)
such a change of control shall be deemed to have occurred if and when either (A)
except as provided in (y) below, any "person" (as such term is used in Sections
13(d) and 14(d) of the 1934 Act) is or becomes a "beneficial owner" (as such
term is defined in Rule 13d-3 promulgated under the 1934 Act), directly
or indirectly, of securities of the Company representing 25% or more of the
combined voting power of the Company's then outstanding securities entitled to
vote with respect to the election of its Board of Directors or (B) as the result
of a tender offer, merger, consolidation, sale of assets, or contest for
election of directors, or any combination of the foregoing transactions or
events, individuals who were members of the Board of Directors of the Company
immediately prior to any such transaction or event shall not constitute a
majority of the Board of Directors following such transaction or event, and (y)
no such change of control shall be deemed to have occurred if and when either
(A) any such change is the result of a transaction which constitutes a "Rule
13e-3 transaction" as such term is defined in Rule 13e-3 promulgated under the
1934 Act or (B) any such person becomes, with the approval of the Board of
Directors of the Company, the beneficial owner of securities of the Company
representing 25% or more but less than 50% of the combined voting power of the

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Company's then outstanding securities entitled to vote with respect to the
election of its Board of Directors and in connection therewith represents, and
at all times continues to represent, in a filing, as amended, with the
Securities and Exchange Commission on Schedule 13D or Schedule 13G (or any
successor Schedule thereto) that "such person has acquired such securities for
investment and not with the purpose nor with the effect of changing or
influencing the control of the Company, nor in connection with or as a
participant in any transaction having such purpose or effect," or words or
comparable meaning and import. The designation by any such person, with the
approval of the Board of Directors of the Company, of a single individual to
serve as a member of, or observer at meetings of, the Company's Board of
Directors, shall not be considered "changing or influencing the control of the
Company" within the meaning of the immediately preceding clause (B), so long as
such individual does not constitute at any time more than one-third of the total
number of directors serving on such Board.

          (c) "Code" means the Internal Revenue Code of 1986, as amended.
Reference in the Plan to any section of the Code shall be deemed to include any
amendments or successor provisions to any section and any regulations under such
section.

          (d) "Compensation Committee" means not less than two members of the
Board who are selected by the Board as provided in Article IV, Section 4.01.

          (e) "Common Stock" means the common stock, no par value per share, of
the Company.

          (f) "Company" means Conseco, Inc., an Indiana corporation, and any
successor thereto.

          (g) "Director" means an individual elected to the Board by the
shareholders of the Company or by the Board under applicable corporate law who
is serving on the Board.

          (h) An "employee" means any person (including a Director) in an
employment relationship with the Company or any parent or subsidiary corporation
(as defined in Section 424 of the Code).

          (i) "1934 Act" means the Securities Exchange Act of 1934, as amended.

          (j) "Fair Market Value" means, as of any specified date, the mean of
the reported high and low sales prices of the Common Stock on the stock exchange

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composite tape on that date, or if no prices are reported on that date, on the
last preceding date on which such prices of the Common Stock are so reported. If
the Common Stock is traded over the counter at the time a determination of its
fair market value is required to be made hereunder, its fair market value shall
be deemed to be equal to the average between the reported high and low or
closing bid and asked prices of Common Stock on the most recent date on which
Common Stock was publicly traded. In the event Common Stock is not publicly
traded at the time a determination of this value is required to be made
hereunder, the determination of its fair market value shall be made by the
Compensation Committee in such manner as it deems appropriate.

          (k) "Holder" means an employee who has been granted an Option.

          (l) "Option" means an Option granted under Article VII of the Plan and
includes only Options to purchase Common Stock which do not constitute Incentive
Stock Options under Section 422 of the Code.

          (m) "Option Agreement" means a written agreement between the Company
and a Holder with respect to an Option.

          (n) "Plan" means Conseco, Inc. 1997 Non-Qualified Stock Option Plan,
as amended from time to time.

          (o) "Rule 16b-3" means SEC Rule 16b-3 promulgated under the 1934 Act,
as such may be amended from time to time, and any successor rule, regulation or
statute fulfilling the same or a similar function.

                                  ARTICLE III.

                     Effective Date and Duration of the Plan

          The Plan shall be effective as of April 1, 1997, the date of its
adoption by the Board, provided the Plan is approved by the shareholders of the
Company within twelve months thereafter. The Plan shall remain in effect until
all Options granted under the Plan have been satisfied or expired or until the
Plan is terminated in accordance with Article IX.

                                   ARTICLE IV.

                                 Administration

          Section 4.01 Composition of Compensation Committee. The Plan shall be
administered by a committee which shall be (i) appointed by the Board; and (ii)
constituted solely of "outside directors," within the meaning of Section 162(m)
of the Code and applicable interpretive authority thereunder.

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          Section 4.02 Powers. Subject to the provisions of the Plan, the
Compensation Committee shall have sole authority, in its discretion, to
determine which employees shall receive an Option, the time or times when such
Option shall be made, and the number of shares of Common Stock which may be
issued under each Option. In making such determinations the Compensation
Committee may take into account the nature of the services rendered by the
respective individuals, their present and potential contribution to the
Company's success and such other factors as the Compensation Committee in its
discretion shall deem relevant.

          Section 4.03 Additional Powers. The Compensation Committee shall have
such additional powers as are delegated to it by the other provisions of the
Plan. Subject to the express provisions of the Plan, the Compensation Committee
is authorized to construe the Plan and the respective agreements executed
thereunder, to prescribe such rules and regulations relating to the Plan as it
may deem advisable to carry out the Plan, to determine the terms, restrictions
and provisions of each Award, and to make all other determinations necessary or
advisable for administering the Plan. The Compensation Committee may correct any
defect or supply any omission or reconcile any inconsistency in any agreement
relating to an Option in the manner and to the extent it shall deem expedient to
carry it into effect. The determinations of the Compensation Committee on the
matters referred to in this Article IV shall be conclusive.

          Section 4.04 Additional Authority. Notwithstanding any other provision
of this Plan to the contrary, the Board may also appoint an additional
committee, comprised of one or more members of the Board, which additional
committee shall have the powers set forth under Sections 4.02 and 4.03 of the
Plan, with the following limitations: (i) the additional committee may grant
options only to those employees who are not expected to become subject to the
insider trading restrictions of Section 16 of the 1934 Act or Section 162(m) of
the Code; and (ii) the additional committee may not grant options to purchase
more than 25,000 shares to any employee in any calendar year.

                                   ARTICLE V.

                                Grant of Options;
                           Shares Subject to the Plan

          Section 5.01 Stock Option Limits. The Compensation Committee may from
time to time grant Options to one or more individuals determined by it to be
eligible for participation in the Plan in accordance with the provisions of
Article VI. Subject to Article VIII, the aggregate number of shares of Common
Stock for which Options may be granted under the Plan, when added to all

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outstanding, unexpired options under the Company's other employee benefit plans,
shall not exceed 20% of the shares of Common Stock outstanding on the date of
grant. In determining the number of shares outstanding on the date of grant, the
Compensation Committee shall include the number of shares then issuable under
any outstanding securities of the Company (other than options) which are then
exchangable for or convertible into Common Stock. Notwithstanding any provision
in the Plan to the contrary, the maximum number of shares of Common Stock that
may be subject to Options under Article VII hereof granted to any one individual
during any calendar year is: the sum (subject to adjustment in the same manner
as provided in Article VIII with respect to shares of Common Stock subject to
Options then outstanding) of (a) 1,000,000 plus (b) the number of shares (not to
exceed 3,000,000) issued under a Reload Program as described below, plus (c) the
number of options provided for in an employment contract that has been approved
by a vote of the shareholders. As an inducement to holders of non-qualified
stock options to exercise those options significantly before their expiration
date, the Compensation Committee may offer a Reload Program to such holders.
Under the Reload Program, new Options may be granted for a number of shares
equal to (a) the sum of (i) the total exercise price of the prior options
exercised in the Reload Program plus (ii) the taxes incurred by the holder as a
result of such exercise (deemed to be 45% of the taxable income resulting from
such exercise) divided by (b) the exercise price per share of the newly granted
Option. The limitation set forth in the preceding sentence shall be applied in a
manner which will permit compensation generated in connection with the exercise
of Options to constitute "performance-based" compensation for purposes of
Section 162(m) of the Code, including, without limitation, counting against such
maximum number of shares, to the extent required under Section 162(m) of the
Code and applicable interpretive authority thereunder, any shares subject to
Options that are canceled or repriced.

          Section 5.02 Stock Offered. The stock to be offered pursuant to the
grant of an Option may be authorized but unissued Common Stock or Common Stock
previously issued and outstanding and reacquired by the Company.

                                   ARTICLE VI.

                                   Eligibility

          Options may be granted only to persons who, at the time of grant, are
employees. Options under this Plan may not be granted to any Director who is not
an employee of the Company. An Award may be granted on more than one occasion to
the same person.

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                                  ARTICLE VII.

                                  Stock Options

          Section 7.01 Option Period. The term of each Option shall be as
specified by the Compensation Committee at the date of grant.

          Section 7.02 Limitations on Exercise of Option. An Option shall be
exercisable in whole or in such installments and at such times as determined by
the Compensation Committee.

          Section 7.03 Option Agreement. Each Option shall be evidenced by an
Option Agreement in such form and containing such provisions not inconsistent
with the provisions of the Plan as the Compensation Committee from time to time
shall approve. An Option Agreement may provide for the payment of the option
price, in whole or in part, by the delivery of a number of shares of Common
Stock (plus cash if necessary) having a Fair Market Value equal to such option
price. Each Option Agreement shall provide that the Option may not be exercised
earlier than six months from the date of grant and shall specify the effect of
termination of employment on the exercisability of the Option. Moreover, an
Option Agreement may provide for a "cashless exercise" of the Option by
establishing procedures whereby the Holder, by a properly-executed written
notice, directs (i) an immediate market sale or margin loan respecting all or a
part of the shares of Common Stock to which he is entitled upon exercise
pursuant to an extension of credit by the Company to the Holder of the option
price, (ii) the delivery of the shares of Common Stock from the Company directly
to a brokerage firm and (iii) the delivery of the option price from sale or
margin loan proceeds from the brokerage firm directly to the Company. Such
Option Agreement may also include, without limitation, provisions relating to
(i) subject to the provisions hereof accelerating such vesting on a Change of
Control, vesting of Options, including a provision that Options shall continue
to vest and remain exercisable for so long as a Holder who terminates employment
with the Company remains an employee of any Company subsidiary or affiliate of
the Company, (ii) tax matters (including provisions covering any applicable
employee wage withholding requirements and requiring additional "gross-up"
payments to Holders to meet any excise taxes or other additional income tax
liability imposed as a result of a Change of Control payment resulting from the
operation of the Plan or of such Option Agreement), and (iii) any other matters
not inconsistent with the terms and provisions of this Plan that the
Compensation Committee shall in its sole discretion determine. The terms and
conditions of the respective Option Agreements need not be identical.

          Section 7.04 Option Price and Payment. The price at which a share of
Common Stock may be purchased upon exercise of an Option shall be determined by
the Compensation Committee, but such purchase price (i) for options granted to
the chief executive officer of the Company and the other four most highly
compensated executive officers of the Company, shall not be less than the Fair
Market Value of a share of Common Stock on the date such Option is granted, and

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<PAGE>

(ii) shall be subject to adjustment as provided in Article VIII. An option may
not be granted at less than the Fair Market Value of a share of Common Stock on
the date such Option is to be granted if the sum of (i) the number of shares of
Common Stock which could be purchased under such Option plus (ii) the number of
shares of Common Stock which could be purchased under all other Options which
were granted under the Plan previously at less than the Fair Market Value of a
share of Common Stock on the date of grant would exceed five percent of the
maximum number of Options then available for grant under the second sentence of
Section 5.01. The Option or portion thereof may be exercised by delivery of an
irrevocable notice of exercise to the Company. The purchase price of the Option
or portion thereof shall be paid in full in the manner prescribed by the
Compensation Committee.

          Section 7.05 Shareholder Rights and Privileges. The Holder shall be
entitled to all the privileges and rights of a shareholder only with respect to
such shares of Common Stock as have been purchased under the Option and for
which certificates of stock have been registered in the Holder's name.

          Section 7.06 Options in Substitution for Stock Options Granted by
Other Corporations. Options may be granted under the Plan from time to time in
substitution for stock options held by individuals employed by corporations who
become employees as a result of a merger or consolidation of the employing
corporation with the Company or any subsidiary, or the acquisition by the
Company or a subsidiary of the assets of the employing corporation, or the
acquisition by the Company or a subsidiary of stock of the employing corporation
with the result that such employing corporation becomes a subsidiary.

                                  ARTICLE VIII.

                       Recapitalization or Reorganization

          Section 8.01 Stock Dividends, etc. The shares with respect to which
Options may be granted are shares of Common Stock as presently constituted, but
if, and whenever, prior to the expiration or exercise of an Option theretofore
granted, the Company shall effect a subdivision or consolidation of shares of
Common Stock or the payment of a stock dividend on Common Stock without receipt
of consideration by the Company, the number of shares of Common Stock with
respect to which such Option may thereafter be exercised, (i) in the event of an
increase in the number of outstanding shares shall be proportionately increased,
and the purchase price per share shall be proportionately reduced, and (ii) in
the event of a reduction in the number of outstanding shares shall be
proportionately reduced, and the purchase price per share shall be
proportionately increased.

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          Section 8.02 Recapitalizations. If the Company recapitalizes or
otherwise changes its capital structure, thereafter upon any exercise of an
Option theretofore granted the Holder shall be entitled to purchase under such
Option, in lieu of the number of shares of Common Stock then covered by such
Option, the number and class of shares of stock and securities to which the
Holder would have been entitled pursuant to the terms of the recapitalization
if, immediately prior to such recapitalization, the Holder had been the holder
of record of the number of shares of Common Stock then covered by such Option.

          Section 8.03 Change of Control. In the event of a Change of Control,
all outstanding Options shall immediately vest and become exercisable or
satisfiable, as applicable. The Compensation Committee, in its discretion, may
determine that upon the occurrence of a Change of Control, each Option
outstanding hereunder shall terminate within a specified number of days after
notice to the Holder, and such Holder shall receive, with respect to each share
of Common Stock subject to such Option, cash in an amount equal to the excess of
(i) the higher of (x) the Fair Market Value of such share of Common Stock
immediately prior to the occurrence of such Change of Control or (y) the value
of the consideration to be received in connection with such Change of Control
for one share of Common Stock over (ii) the exercise price per share, if
applicable, of Common Stock set forth in such Option. The provisions contained
in the preceding sentence shall be inapplicable to an Option granted within six
(6) months before the occurrence of a Change of Control if the Holder of such
Option is subject to the reporting requirements of Section 16(a) of the 1934 Act
and such disposition is not exempt under Rule 16b-3 but shall be applicable to
such Option after the expiration of six (6) months from the date of grant. If
the consideration offered to shareholders of the Company in any transaction
described in this paragraph consists of anything other than cash, the
Compensation Committee shall determine the fair cash equivalent of the portion
of the consideration offered which is other than cash. The provisions contained
in this paragraph shall not terminate any rights of the Holder to further
payments pursuant to any other agreement with the Company following a Change of
Control.

          Section 8.04 Other Adjustments. In the event of changes in the
outstanding Common Stock by reason of recapitalization, reorganizations,
mergers, consolidations, combinations, exchanges or other relevant changes in
capitalization occurring after the date of the grant of any Option and not
otherwise provided for by this Article VIII, any outstanding Options and any
agreements evidencing such Options shall be subject to adjustment by the
Compensation Committee at its discretion as to the number and price of shares of
Common Stock or other consideration subject to such Options.

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          Section 8.05 Impact of Plan. The existence of the Plan and the Options
granted hereunder shall not affect in any way the right or power of the Board or
the shareholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company's capital
structure or its business, any merger or consolidation of the Company, any issue
of debt or equity securities ahead of or affecting Common Stock or the rights
thereof, the dissolution or liquidation of the Company or any sale, lease,
exchange or other disposition of all or any part of its assets or business or
any other corporate act or proceeding.

          Section 8.06 Shareholder Action. Any adjustment provided for in
Sections 8.01, 8.02, 8.03 and 8.04 above shall be subject to any required
shareholder action.

          Section 8.07 Other. Except as hereinbefore expressly provided, the
issuance by the Company of shares of stock of any class or securities
convertible into shares of stock of any class, for cash, property, labor or
services, upon direct sale, upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company convertible
into such shares or other securities, and in any case whether or not for fair
value, shall not affect, and no adjustment by reason thereof shall be made with
respect to the number of shares of Common Stock subject to Options theretofore
granted or the purchase price per share.

                                   ARTICLE IX.

                      Amendment and Termination of the Plan

          The Board in its discretion may terminate the Plan at any time with
respect to any shares for which Options have not theretofore been granted. The
Board shall have the right to alter or amend the Plan or any part thereof from
time to time; provided that no change in any Option theretofore granted may be
made which would impair the rights of the Holder without the consent of the
Holder (unless such change is required in order to cause the benefits under the
Plan to qualify as performance-based compensation within the meaning of Section
162(m) of the Code and applicable interpretive authority thereunder), and
provided, further, that the Board may not, without approval of the shareholders,
amend the Plan if such approval is required under applicable law or stock
exchange rule or in order for the Plan to continue to comply with Section 162(m)
of the Code.

                                   ARTICLE X.

                                  Miscellaneous

          Section 10.01 No Right To An Option. Neither the adoption of the Plan
by the Company nor any action of the Board or the Compensation Committee shall
be deemed to give an employee any right to be granted an Option to purchase

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Common Stock except as may be evidenced by an Option or by an Option Agreement
duly executed on behalf of the Company, and then only to the extent and on the
terms and conditions expressly set forth therein. The Plan shall be unfunded.
The Company shall not be required to establish any special or separate fund or
to make any other segregation of funds or assets to assure the payment of any
Option.

          Section 10.02 No Employment Rights Conferred. Nothing contained in the
Plan shall (i) confer upon any employee any right with respect to continuation
of employment with the Company or any subsidiary or (ii) interfere in any way
with the right of the Company or any subsidiary to terminate his or her
employment (or service as a Director, in accordance with applicable corporate
law) at any time.

          Section 10.03 Other Laws; Withholding. The Company shall not be
obligated to issue any Common Stock pursuant to any Option granted under the
Plan at any time when the shares covered by such Award have not been registered
under the Securities Act of 1933 and such other state and federal laws, rules or
regulations as the Company or the Compensation Committee deems applicable and,
in the opinion of legal counsel for the Company, there is no exemption from the
registration requirements of such laws, rules or regulations available for the
issuance and sale of such shares. No fractional shares of Common Stock shall be
delivered, nor shall any cash in lieu of fractional shares be paid. The Company
shall have the right to deduct in cash (whether under this Plan or otherwise) in
connection with all Options any taxes required by law to be withheld and to
require any payments required to enable it to satisfy its withholding
obligations. In the case of any Option satisfied in the form of Common Stock, no
shares shall be issued unless and until arrangements satisfactory to the Company
shall have been made to satisfy any withholding tax obligations applicable with
respect to such Option. Subject to such terms and conditions as the Compensation
Committee may impose, the Company shall have the right to retain, or the
Compensation Committee may, subject to such terms and conditions as it may
establish from time to time, permit Holders to elect to tender Common Stock
(including Common Stock issuable in respect of an Option) to satisfy, in whole
or in part, the amount required to be withheld.

          Section 10.04 No Restriction on Corporate Action. Nothing contained in
the Plan shall be construed to prevent the Company or any subsidiary from taking
any corporate action which is deemed by the Company or such subsidiary to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Option granted under the Plan. No employee,
beneficiary or other person shall have any claim against the Company or any
subsidiary as a result of any such action.

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          Section 10.05 Restrictions on Transfer. An Option shall not be
transferable except (i) by will or the laws of descent and distribution, or (ii)
by gift to any member of the Holder's immediate family, to a partnership
consisting only of members of the Holder's immediate family or to a trust for
the benefit of such immediate family member or to such other persons or entities
as the Compensation Committee determines in its discretion, if permitted in the
applicable Option Agreement. An option may be exercisable during the lifetime of
the Holder only by such Holder or the Holder's guardian or legal representative
unless it has been transferred to a member of the Holder's immediate family, to
a partnership consisting only of members of the Holder's immediate family or to
a trust for the benefit of such immediate family member, in which case it shall
be exercisable only by such transferee. For the purpose of this provision, a
Holder's "immediate family" shall mean the Holder's spouse, children and
grandchildren. Notwithstanding any such transfer, the Holder will continue to be
subject to the withholding requirements provided for in Section 10.03 hereof.

          Section 10.06 Section 162(m). It is intended that the Plan comply
fully with and meet all the requirements of Section 162(m) of the Code so that
Options granted hereunder with an exercise price not less than Fair Market Value
of a share of Common Stock on the date of grant shall constitute
"performance-based" compensation within the meaning of such section. If any
provision of the Plan would disqualify the Plan or would not otherwise permit
the Plan to comply with Section 162(m) as so intended, such provision shall be
construed or deemed amended to conform to the requirements or provisions of
Section 162(m); provided that no such construction or amendment shall have an
adverse effect on the economic value to a Holder of any Option previously
granted hereunder.

          Section 10.07 Governing Law. This Plan shall be construed in
accordance with the laws of the State of Indiana.

                                       11Exhibit 10.8.31

                      FIRST STAGE AMENDMENT AND AGREEMENT

                        Re: Non-Refinanced 1998 D&O Loans

          THIS FIRST STAGE AMENDMENT AND AGREEMENT, dated as of March20, 2002
(this "Agreement"), among Conseco, Inc. ("Conseco"), CDOC, Inc. ("CDOC"), CIHC,
Incorporated ("CIHC"), Bank of America, N.A., as administrative agent (in such
capacity, the "Administrative Agent"), as Collateral Agent (in such capacity,
the "Collateral Agent") and as Depositary Bank (in such capacity, the
"Depositary Bank"), the various financial institutions parties hereto (each a
"Bank" and collectively, the "Banks").

                              W I T N E S S E T H:

          WHEREAS, Conseco, the Banks and the Administrative Agent are parties
to that certain Agreement, dated as of September 22, 2000, relating to the 1998
Director and Officer Loan Credit Agreement (the "September 22, 2000 Agreement");

          WHEREAS, Conseco has requested that the Administrative Agent and the
Banks amend the September 22, 2000 Agreement as more fully described herein;

          WHEREAS, CDOC, the Collateral Agent and the Depositary Bank are
parties to that certain Amended and Restated Cash Collateral Pledge Agreement,
dated as of November 22, 2000 (the "Cash Collateral Agreement");

          WHEREAS, CDOC has requested that the Administrative Agent and the
Banks amend the Cash Collateral Agreement as more fully described herein;

          WHEREAS, Conseco, pursuant to a Guaranty, dated as of August 21, 1998
(the "Conseco Guaranty") has guaranteed the obligations of the borrowers under
the Credit Agreement, dated as of August 21, 1998, among the persons listed on
the signature pages thereto as Borrowers, the Banks, and the Administrative
Agent (the "Credit Agreement");

          WHEREAS, Conseco has requested that the Administrative Agent and the
Banks amend the Conseco Guaranty as more fully described herein;

          WHEREAS, CIHC, pursuant to a Guaranty and Subordination Agreement,
dated as of September 22, 2000 (the "CIHC Guaranty"), has, among other things,
guaranteed the obligations Conseco under the Conseco Guaranty;

          WHEREAS, CIHC has requested that the Administrative Agent and the
Banks amend the CIHC Guaranty as more fully described herein;

          WHEREAS, Articles II, III and IV to the Appendix to that certain
Five-Year Credit Agreement, dated as of September 25, 1998, as amended (the
"Five-Year Credit Agreement"), were incorporated by reference into the September
22, 2000 Agreement;

          WHEREAS, the parties to the Five-Year Credit Agreement now wish to
amend the Appendix and the parties hereto wish to consent to the amendment of
the Appendix; and

<PAGE>

          WHEREAS, Conseco will agree to pay certain fees as more fully
described below;

          NOW, THEREFORE, in consideration of the mutual promises herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

          Section 1. DEFINITIONS. Capitalized terms used and not otherwise
defined in this Agreement shall have the meanings assigned thereto in the Credit
Agreement. As used herein, the following terms shall have the following
meanings:

          "A.M. Best A- Status" shall have the meaning set forth in Section 1.01
          of the Appendix.

          "Agreement Fee" shall have the meaning set forth in Section 7.1(a)
          hereof.

          "Appendix" shall have the meaning set forth in Section 6.1 hereof.

          "Appendix Amendment" shall have the meaning set forth in Section 6.1
          hereof.

          "D&O Facilities" shall have the meaning set forth in Section 1.01 of
          the Appendix.

          "Effective Date" shall have the meaning set forth in Section 8 hereof.

          "Exchange Offer" shall have the meaning set forth in Section 1.01 of
          the Appendix.

          "Fees" shall have the meaning set forth in Section 7.1 hereof.

          "Specified D&O Facilities" shall have the meaning set forth in Section
          1.01 of the Appendix.

          "Trust Preferred Securities" shall have the meaning set forth in
          Section 1.01 of the Appendix.

          Section 2. AMENDMENTS TO SEPTEMBER 22, 2000 AGREEMENT.

          2.1 Section 1.1 of the September 22, 2000 Agreement is hereby amended
as follows:

               (a) The definition of "CDOC" is hereby added to Section 1.1 of
          the September 22, 2000 Agreement in its proper alphabetical order and
          reads as follows:

          "CDOC" shall mean CDOC, Inc., a Delaware corporation.

               (b) The definition of "Required Banks" is hereby added to Section
          1.1 of the September 22, 2000 Agreement in its proper alphabetical
          order and reads as follows:

          "Required Banks" shall have (a) with respect to the Loans, the meaning
          assigned thereto in the Loan Documents and (b) with respect to the New
          Loans, the meaning assigned thereto in the New Loan Documents.

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               (c) The definition of "Regulation U" is hereby added to Section
          1.1 of the September 22, 2000 Agreement in its proper alphabetical
          order and reads as follows:

          "Regulation U" shall have the meaning set forth in the Existing
          Guaranty.

          2.2 Section 3 of the September 22, 2000 Agreement is hereby amended
by:

               (a) deleting "No Default Acknowledgment" appearing therein and
          substituting in lieu thereof "No Default Acknowledgments";

               (b) inserting "(a)" immediately prior to the first sentence of
          such section; and

               (c) inserting a new clause (b) to read as follows:

                    "(b) The Administrative Agent and the Banks hereby
               acknowledge that the Guarantor will not be in default of Section
               3.4 or Section 4.3 of the Existing Guaranty (and CIHC will not be
               in default of the CIHC Guaranty) if the Guarantor, in furtherance
               of its rights set forth in Section 5(e) of this Agreement in
               respect of the Existing Loans, takes possession of any Borrower's
               "margin stock" (as defined in Regulation U) so long as Guarantor
               complies with the provisions of Regulation U in connection
               therewith."

          2.3 The following sentence is hereby added to the end of Section 5(a)
of the September 22, 2000 Agreement to read as follows: "For purposes of this
Section 5(a), in making any calculation to determine Cash Collateral Deposits
required to be made or held, such required amounts will be reduced by the amount
of any application of cash collateral under Section 5(e) hereof."

          2.4 Section 5(e) is hereby added to the September 22, 2000 Agreement
to read as follows:

               "(e) The Guarantor may, at its option, direct the Administrative
               Agent to apply the cash collateral provided by CDOC in respect of
               the Specified D&O Facilities as follows: (i) to the payment of
               the Specified D&O Facilities (or to all the D&O Facilities, as
               applicable under Article II of the Appendix), pro rata as to the
               Specified D&O Facilities (or to all the D&O Facilities, as
               applicable under Article II of the Appendix), but such allocation
               thereof need not be pro rata as to the underlying borrowers; (ii)
               to the payment under the Existing Guaranty or the New Conseco
               Guaranty of the Specified D&O Facilities (or to all the D&O
               Facilities, as applicable under Article II of the Appendix), pro
               rata as to the Specified D&O Facilities (or to all the D&O
               Facilities, as applicable under Article II of the Appendix), but
               such allocation thereof need not be pro rata as to the underlying
               borrowers or (iii) to the Guarantor's purchase of Borrowers'
               loans, subject to intercreditor rights satisfactory to the
               Required Banks and the Guarantor, provided that the Guarantor may
               only purchase an individual Borrower's loans if the Guarantor
               simultaneously purchases all loans under the D&O Facilities of
               such Borrower. To the extent the Guarantor purchases an
               individual Borrower's loans pursuant to clause (iii) of the

                                       3
<PAGE>

               preceding sentence, each Bank hereby consents to the
               Administrative Agent (in its sole discretion) entering into an
               amendment of the Credit Agreement with such Borrower subsequent
               to the Effective Date which (x) amends the definition of
               "Eligible Assignee" in the New Loan Documents to include the
               Guarantor and (y) provides for any other amendments of any other
               provisions of the New Loan Documents necessary to provide that
               the purchase of such Borrower's loans may be non-pro-rata as to
               the assigning Bank and the other underlying Borrowers."

          2.5 Section 5(f) is hereby added to the September 22, 2000 Agreement
to read as follows:

                    "(c) If for any reason the Guarantor believes that any
               payment made by it pursuant to Section 5(e) of this Agreement in
               respect of the Existing Loans would not be subject to subrogation
               rights under Section 2.6 of the Existing Guaranty, the Guarantor
               and the Required Banks in their sole discretion, may agree to an
               alternative procedure to preserve substantially equivalent
               economic rights to the Guarantor and substantially equivalent
               economic results for the Banks. Without limiting the foregoing,
               if the Guarantor is paying all of the Existing Loans of a
               particular Borrower, the Banks will assign their rights in
               respect of said Existing Loans to the Guarantor, subject to
               intercreditor rights satisfactory to the Required Banks and the
               Guarantor."

          Section 3. AMENDMENTS TO CASH COLLATERAL AGREEMENT. The following
sentence shall be added at the end of Section 4.5 of the Cash Collateral
Agreement: "The Grantor shall have the right to make withdrawals to the extent
such withdrawals are simultaneously applied as set forth in Section 5(e) of the
Agreements Re: Specified D&O Facilities."

          Section 4. RESERVED.

          Section 5. AMENDMENT TO CIHC GUARANTY. Section 5.14 of the CIHC
Guaranty is hereby deleted.

          Section 6. CONSENT.

          6.1 The parties hereto consent to the amendment of the Appendix as
attached hereto as Exhibit A (the "Appendix Amendment"). The parties hereto
further agree that all references in the September 22, 2000 Agreement and the
Conseco Guaranty to the Appendix shall mean the Appendix as so amended by the
Appendix Amendment (the "Appendix").

          6.2 Conseco may, at its option, make payments or purchases under the
Specified D&O Facilities (or to all the D&O Facilities, as applicable under
Article II of the Appendix or the related Conseco guaranty), pro rata as to the
Specified D&O Facilities (or to all the D&O Facilities, as applicable under
Article II of the Appendix), but such allocation thereof need not be pro rata as
to the underlying borrowers.

                                       4
<PAGE>

          Section 7. FEES.

          7.1 Conseco hereby agrees that, upon the effectiveness of this
Agreement pursuant to the provisions of Section 8 hereof, Conseco shall be
obligated to pay, and shall pay, to the Administrative Agent, for the pro rata
benefit of the Banks, the following fees (the "Fees"):

               (a) On the Effective Date, an agreement fee (the "Agreement Fee")
          in immediately available funds equal 0.50% of the principal amount of
          the Loans outstanding on such date, net of a proportionate share
          (which share shall equal the share of the Loans payable to such Bank
          divided by the outstanding Loans under all the Specified D&O
          Facilities) of the cash collateral then on deposit securing Conseco's
          obligations relating to the Credit Agreement; provided that the
          Agreement Fee shall only be payable to those Banks that execute and
          deliver this Agreement by March 20, 2002; and

               (b) From and after the Effective Date and until all Loans are
          paid in full, a continuing per annum fee equal to 0.75% of all Loans
          then outstanding, payable quarterly in arrears, quarterly on the last
          Business Day of each calendar quarter, with payment commencing on
          March 31, 2002.

          7.2 Conseco's obligation to pay each of the Fees shall be irrevocable,
unconditional, and absolute and, consistent therewith, shall not terminate in
the event that this Agreement shall otherwise be terminated pursuant to its
provisions. Such fees shall be in addition to any fees provided for under the
September 22, 2000 Agreement or the Credit Agreement.

          Section 8. CONDITIONS PRECEDENT. This Agreement shall become effective
on such date (the "Effective Date") when each of the conditions precedent set
forth in this Section 8 shall have been satisfied, and notice thereof shall have
been given by the Administrative Agent to Conseco and the Banks.

          8.1 Receipt of Documents. The Administrative Agent shall have received
all of the following documents duly executed, dated the date hereof or such
other date as shall be acceptable to the Administrative Agent, and in form and
substance satisfactory to the Administrative Agent:

               (a) This Agreement, duly executed by Conseco, CDOC, CIHC, the
          Administrative Agent and the Required Banks;

               (b) A certificate of the Secretary or Assistant Secretary of
          Conseco (i) certifying the names and true signatures of the officers
          of Conseco authorized to execute, deliver and performance, as
          applicable, this Agreement, and all other documents to be delivered by
          it hereunder and (ii) attaching copies of the resolutions of the board
          of directors of Conseco authorizing the transactions contemplated
          hereby;

               (c) A certificate of the Secretary or Assistant Secretary of CIHC
          (i) certifying the names and true signatures of the officers of CIHC
          authorized to execute, deliver and perform, as applicable, all
          documents to be delivered by it hereunder and (ii) attaching copies of
          the resolutions of the board of directors of CIHC authorizing the
          transactions contemplated hereby;

                                       5
<PAGE>

               (d) A certificate of the Secretary or Assistant Secretary of CDOC
          (i) certifying the names and true signatures of the officers of CDOC
          authorized to execute, deliver and perform, as applicable, all
          documents to be delivered by it hereunder and (ii) attaching copies of
          the resolutions of the board of directors of CDOC authorizing the
          transactions contemplated hereby;

               (e) The Reaffirmation of (i) the Conseco Guaranty, (ii) the CIHC
          Guaranty and (iii) the Amended and Restated Cash Collateral Agreement,
          in the form of Exhibit B attached hereto;

               (f) The opinion of David K. Herzog, counsel of Conseco and CIHC,
          substantially in the form of Exhibit C, and addressing such
          other legal matters as the Administrative Agent may reasonably
          require;

               (g) The opinion of Weil, Gotshal & Manges LLP, outside counsel to
          Conseco and CIHC, substantially in the form of Exhibit D, and
          addressing such other legal matters as the Administrative Agent may
          reasonably require;

               (h) Duly authorized, executed and delivered copies of (i) the
          First Stage Amendment and Agreement Re: 1997 D&O Loans, dated as of
          March 20, 2002, (ii) the First Stage Amendment and Agreement Re: 1998
          D&O Loans, dated as of March 20, 2002, and (iii) the First Stage
          Amendment and Agreement Re: 1999 D&O Loans, dated as of March 20,
          2002, substantially in the form hereof;

               (i) A duly authorized, executed and delivered copy of Third
          Amendment to Five-Year Credit Agreement, dated as of March 20, 2002,
          among Conseco, the various financial institutions party thereto, and
          Bank of America, N.A. as agent thereunder; and

               (j) Receipt by the Administrative Agent of a letter to the Banks
          evidencing Conseco's understanding if scheduled payments are not made
          on or before the date that such scheduled payments become due and
          payable in respect of all Trust Preferred Securities, a downgrade from
          A.M. Best A- Status would occur.

          8.2 Additional Conditions. The effectiveness of this Agreement and the
consent of the Banks are subject to the following further conditions precedent:

               (a) With respect to Conseco, no Default exists and no Event of
          Default will exist after giving effect to this Agreement;

               (b) The representations and warranties of Conseco contained in
          Article III of the Conseco Guaranty, are true and correct in all
          material respects with the same effect as though made on the Effective
          Date, except, to the extent that any such representations and
          warranties relate expressly to an earlier date, such representations
          and warranties shall have been true and correct in all material
          respects as of such earlier date;

               (c) No Material Litigation exists other than the litigation
          described in Schedule I attached hereto;

                                       6
<PAGE>

               (d) No Material Adverse Change has occurred with respect to
          Conseco or CIHC since September 30, 2001 (except for changes in or
          adverse effects upon, the business, properties, condition (financial
          or otherwise) of Conseco and CIHC as disclosed in press releases,
          public filings or otherwise in writing to the Administrative Agent);

               (e) Conseco shall have paid all accrued and unpaid fees, costs,
          expenses and other disbursements to date, including attorneys' fees
          and costs, including those to be incurred in connection, negotiation,
          and execution of this Agreement. Conseco shall remain liable and shall
          promptly reimburse the Administrative Agent for such future fees,
          costs expenses and other disbursements as provided for in the existing
          Loan Documents;

               (f) The Banks, with the approval of Conseco, shall have hired
          Ernst & Young LLP as a financial advisor to review the financial
          condition and performance of Conseco and its Subsidiaries, and the
          Administrative Agent shall be satisfied as to the duration and scope
          of such review; and

               (g) The Exchange Offer and the disclosures made in connection
          therewith (including, without limitation, pursuant to the related
          offering memorandum) shall be on terms and conditions satisfactory to
          the Administrative Agent.

          Section 9. MISCELLANEOUS.

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

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

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

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

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

                               [signatures follow]

                                       7

<PAGE>

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

                                   CONSECO, INC.

                                   By: /s/ James S. Adams
                                      ----------------------------------
                                   Name:  James S. Adams
                                   Title: Senior Vice President, Chief
                                          Accounting Officer and Treasurer

                                   CIHC, INCORPORATED

                                   By: /s/ William T. Devanney, Jr.
                                      ----------------------------------
                                   Name:  William T. Devanney, Jr.
                                   Title: Senior Vice President, Corporate Taxes

                                   CDOC, INC.

                                   By: /s/ William T. Devanney, Jr.
                                      ----------------------------------
                                   Name:  William T. Devanney, Jr.
                                   Title: Senior Vice President, Corporate Taxes

                                   BANK OF AMERICA, N.A., as Administrative
                                   Agent, as a Bank, as Collateral Agent
                                   and as Depositary Bank

                                   By: /s/ Bridget Garavalia
                                      ----------------------------------
                                   Name:  Bridget Garavalia
                                   Title: Managing Director

<PAGE>

                                   JPMORGAN CHASE BANK

                                   By: /s/ Helen L. Newcomb
                                      ----------------------------------
                                   Name:  Helen L. Newcomb
                                   Title: Vice President

                                   DEUTSCHE BANK AG, New York and/or
                                   Cayman Island Branches

                                   By: /s/ Robert M. Wood, Jr.
                                      ----------------------------------
                                   Name:  Robert M. Wood, Jr.
                                   Title: Director

                                   By: /s/ Mark B. Cohen
                                      ----------------------------------
                                   Name:  Mark B. Cohen
                                   Title: Managing Director

                                   THE BANK OF NEW YORK

                                   By: /s/ Stephen C. Brennan
                                      ----------------------------------
                                   Name:  Stephen C. Brennan
                                   Title: Vice President

<PAGE>

                                   Schedule I

                               Material Litigation

          Litigation described in Form 10-Q of Conseco, Inc. for the quarterly
period ended September 30, 2001.

          Donald J. Trump v. Conseco, Inc., et al.

<PAGE>

                                    Exhibit A

                               Appendix Amendment

          AMENDMENT, dated as of March 20, 2002 (this "Amendment"), to the
Conseco, Inc. Appendix, dated as of September 22, 2000 (the "Appendix").

          1. Definitions. Unless otherwise defined herein, terms defined in the
Appendix and used herein shall have the meanings given to them in the Appendix.

          Amendment to Section 1.01. Section 1.01 is hereby amended as follows:

               (i) (a) by deleting in its entirety the definition of "Cash on
          Hand Target".

          (b) by amending the definition of "Conseco Adjusted Earnings" as
          follows:

               (i) by deleting the term "non-cash" each time it appears in
          clauses (f) and (g) thereof;

               (ii) by deleting the phrase "(provided that the after tax amounts
          described in clauses (f) and (g) shall not exceed in the aggregate
          $500,000,000 for any Calculation Period ending on or before September
          30, 2001, and $50,000,000 for any Calculation Period ending
          thereafter)" where it appears after clause (g) thereof and inserting
          in lieu thereof the following:

               "(provided that the after tax amounts described in clauses (f)
               and (g) shall not exceed (i) more than $500,000,000 in the
               aggregate accrued or incurred during Fiscal Year 2002 (provided
               that no more than $50,000,000 (accrued or incurred during Fiscal
               Year 2002) of such expenses, losses or other charges in the
               aggregate may be in cash), and (ii) more than $50,000,000 in the
               aggregate accrued or incurred for any Fiscal Year thereafter)";
               and

               (iii) by inserting the following sentence at the end thereof:

               "Notwithstanding the foregoing, Conseco Adjusted Earnings shall
               exclude any income or gain, or expense, loss or charge, (x)
               associated with Conseco's ownership of AT&T Wireless Stock, (y)
               resulting from any impairment of the D&O Facilities or (z) set
               forth on Annex II attached hereto, provided that the amounts set
               forth for the fiscal periods on such Annex may be excluded in the
               applicable Calculation Period prior to the date of the Amendment
               as well as any Calculation Period after the date of the Amendment
               that includes such fiscal period(s)."

<PAGE>

          (c) by amending the definition of "Conseco Finance Tangible Net Worth"
by deleting the text of clause (b) where it occurs in the definition thereof and
inserting in lieu thereof the following:

          "(b) any charges specified in clause (f) or (g) of the definition of
          Conseco Adjusted Earnings; provided that such charges shall not be
          permitted to exceed $150,000,000 on an after tax basis in the
          aggregate and no more than $15,000,000 of such $150,000,000 of charges
          on an after-tax basis may be in cash"

          (d) by amending the definition of "Interest Coverage Ratio" by
inserting the following sentence at the end thereof:

          "For purposes of determining the Interest Coverage Ratio, the term
          "Conseco Available Cash Flow" shall exclude the amount of (i) Net
          Proceeds received by Conseco in connection with any Disposition of any
          right or interest of Conseco or any of its Subsidiaries in the General
          Motors Building less (ii) the statutory carrying value of Conseco and
          its Subsidiaries in respect of the General Motors Building (the amount
          of clause (i) less the amount of clause (ii), the "GM Gain");
          provided, that in connection with determining the Interest Coverage
          Ratio for purposes of compliance with any conditions precedent to an
          extension of the maturity date of the $1.5 Billion Facility or any of
          the D&O Facilities, only the first $250,000,000 of any such GM Gain
          may be included in such determination."

          (e) by amending the definition of "Relevant CIHC Guaranty" by deleting
the second sentence thereof.

          (f) by deleting in its entirety the definition of "$144 Million D&O
Credit Agreement" and inserting in lieu thereof the following:

          "$144 Million D&O Credit Agreement" means the Credit Agreement, dated
          as of November 22, 2000, as amended, supplemented or otherwise
          modified or refinanced, among the individual borrowers parties
          thereto, the banks parties thereto and JPMorgan Chase Bank as
          administrative agent (relating to all of the then-existing loans under
          the $144 Million D&O Facility).

          (g) by deleting in its entirety the definition of "$181 Million D&O
Credit Agreement" and inserting in lieu thereof the following:

          "$181 Million D&O Credit Agreement" means collectively (i) the Credit
          Agreement, dated as of August 21, 1998, among the individual borrowers
          parties thereto, the banks parties thereto and Bank of America, N.A.,
          as administrative agent, as amended, supplemented or otherwise
          modified or refinanced, and (ii) the Credit Agreement, dated as of
          November 22, 2000, as amended, supplemented or otherwise modified or
          refinanced, (relating to certain but not all of the then-existing
          loans under the $181 Million D&O Facility) pursuant to which Bank of
          America, N.A. is the administrative agent.

                                      A-2
<PAGE>

          (h) by deleting in its entirety the definition of "$245 Million D&O
Credit Agreement" and inserting in lieu thereof the following:

          "$245 Million D&O Credit Agreement" means the Credit Agreement, dated
          as of November 22, 2000, as amended, supplemented or otherwise
          modified or refinanced, among the individual borrowers parties
          thereto, the banks parties thereto and Bank of America, N.A., as
          administrative agent (relating to all of the then-existing loans under
          the $245 Million D&O Facility).

          (i) by adding thereto the following new definitions in the appropriate
alphabetical order:

          "Amendment" means this Amendment, dated as of March 20, 2002, in
respect of the Appendix.

          "Amendment Effective Date" means the "Effective Date" as defined in
the Amendment.

          "AT&T Wireless Stock" means 10,319,050 shares of AT&T Wireless
Services, Inc. common stock par value $.01 per share.

          "Exchange Offer" means the exchange offer pursuant to the Offering
Memorandum dated as of March 18, 2002, pursuant to which Conseco offered to
exchange Specified Existing Public Debt for New Exchange Offer Public Debt in
accordance with the terms of such Offering Memorandum, any exchange offer in
connection with the registration of the New Exchange Offer Public Debt with the
Securities and Exchange Commission and any exchange offer on terms substantially
similar to the foregoing exchange offers.

          "General Motors Building" means the building located at 767 5th
Avenue, New York, NY 10153.

          "New Exchange Offer Public Debt" means the senior notes issued
pursuant to an Exchange Offer in exchange for Specified Existing Public Debt or
other New Exchange Offer Public Debt.

          "Specified Existing Public Debt" means collectively Conseco's 8.5%
Senior Notes due October 15, 2002, 6.4% Senior Notes due February 10, 2003,
8.75% Senior Notes due February 9, 2004, 6.8% Senior Notes due June 15, 2005, 9%
Senior Notes due October 15, 2006 and 10.75% Senior Notes due June 15, 2008.

          "Trigger Date" means (i) in the case of the sale of Sufficient Assets,
the Reduction Date and (ii) in the case of any other Approved Strategic
Alternative, the date such Approved Strategic Alternative is approved by the
Required Banks.

                                      A-3
<PAGE>

          2. Amendment to Section 1.03. Section 1.03 of the Appendix is hereby
amended by inserting at the end thereof a new Section 1.03(c):

          "(c) For purposes of calculating any financial covenants or related
          definitions hereunder, any charges taken to writeoff goodwill to the
          extent required by the Financial Accounting Standards Board of the
          American Institute of Certified Public Accountants Statement No. 142
          shall be excluded."

          (a) Amendment to Section 2.01. (a) Section 2.01(a) of the Appendix is
hereby amended by deleting such Section in its entirety and substituting in lieu
thereof the following:

          "(a) [Intentionally Omitted.]"

          (b) Section 2.01(b) of the Appendix is hereby amended by deleting such
Section 2.01(b) in its entirety and substituting in lieu thereof the following:

          "(b) On the Amendment Effective Date and thereafter, within three
          Business Days after Conseco or any of its Subsidiaries receives any
          Available Net Proceeds, such Available Net Proceeds shall be applied
          as follows: first, the first $352,000,000 shall be retained by
          Conseco; second, the next $313,000,000 shall be applied pro rata to
          the $1.5 Billion Facility and the Specified D&O Facilties (in the
          manner contemplated by Section 2.02(c)); third, following the
          application of $313,000,000 pursuant to clause second above and
          thereafter until the earlier of (i) December 31, 2003 and (ii) the
          application of an additional $250 million pursuant to this clause, 50%
          per transaction of any Available Net Proceeds shall be retained by
          Conseco and 50% per transaction of any Available Net Proceeds shall be
          applied pro rata to the $1.5 Billion Facility and the Specified D&O
          Facilities (in the manner contemplated by Section 2.02(c)); fourth,
          after the earlier of (i) December 31, 2003 and (ii) the application of
          an additional $250 million pursuant to clause third above, 25% per
          transaction of any Available Net Proceeds shall be retained by Conseco
          and 75% per transaction of any Available Net Proceeds shall be applied
          pro rata to the $1.5 Billion Facility and the Specified D&O Facilities
          (in the manner contemplated by Section 2.02(c)); and fifth, after
          March 31, 2004, 50% per transaction of any Available Net Proceeds
          shall be retained by Conseco and 50% per transaction of any Available
          Net Proceeds shall be applied pro rata to the $1.5 Billion Facility
          and the Specified D&O Facilities (in the manner contemplated by
          Section 2.02(c)); provided that in the event that the Relevant Banks
          under the D&O Facilities agree to grant Conseco an option to extend
          the date by which Conseco is required to pay, purchase or cash
          collateralize in full the D&O Facilities or the related Conseco
          Guaranty from December 31, 2003 until March 31, 2005, the application
          of Available Net Proceeds pursuant to this Section 2.01(b) to the $1.5
          Billion Facility and the D&O Facilities shall be as follows: (i) in
          clause second above, after $50,000,000 of Available Net Proceeds have
          been applied to the Specified D&O Facilities, the remainder shall be
          applied pro rata to the $1.5 Billion Facility and the D&O Facilities
          (in the manner contemplated by Section 2.02(c)); and (ii) in clauses
          third, fourth and fifth above, the references to the Specified D&O

                                      A-4
<PAGE>

          Facilities shall be deemed to be references to the D&O Facilities. Any
          Available Net Cash Proceeds referred to in this paragraph as being
          available for retention by Conseco (A) must, if received by a
          Subsidiary, be distributed to Conseco for such purpose if such
          distribution is not prohibited by law, rule or regulation or the
          Lehman Agreement and (B) may be used by Conseco for any purpose
          permitted by this Appendix.

          (c) Section 2.01(c) is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof the following:

          "(c) [Intentionally Omitted]."

          (d) Amendment to Section 2.02. (a) Section 2.02(a) is hereby amended
by deleting such Section in its entirety and substituting in lieu thereof the
following:

          "(a) [Intentionally Omitted]."

          (e) Section 2.02(b) is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof the following:

          "(b) [Intentionally Omitted]."

          (f) Section 2.02(c) is hereby amended by deleting such Section in its
entirety and substituting in lieu thereof the following:

          "(c) Any application of Available Net Proceeds allocated to the $1.5
          Billion Facility and the Specified D&O Facilities or the D&O
          Facilities, as applicable, pursuant to Section 2.01(b) (and any
          application of Net Proceeds pursuant to clause (a)(ii) of the
          definition of "Exempt Waterfall Amounts") shall be allocated ratably
          to each such Facility based on the aggregate Exposure then outstanding
          under such Facilities, and ratably to the Exposure of each Bank under
          each such Facility. The Available Net Proceeds so allocated to each
          Specified D&O Facility and D&O Facility, as applicable, at the
          discretion of Conseco, shall be either (i) deposited in a cash
          collateral account pursuant to the applicable Cash Collateral
          Agreement or (ii) applied to purchase or repay "Loans" made to the
          individual borrowers pursuant to the applicable Specified D&O Facility
          or D&O Facility, as applicable or (iii) applied to pay the related
          Conseco Guaranty."

          (g) Amendment to Article III. Article III of the Appendix is hereby
amended by adding at the end thereof the following new Sections 3.12 and 3.13:

          "3.12. Hiring of Ernst & Young. Conseco hereby agrees to (i) the
hiring by the Banks of Ernst & Young LLP as a financial advisor to review the
financial condition and performance of Conseco and its Subsidiaries, the
duration and scope of such review to be at the direction and under the control
of Conseco and the Agents (and Conseco agrees to use reasonable best efforts to
facilitate such review) and (ii) paying all fees, costs and expenses incurred
from time to time in connection with such review promptly upon receipt of an
invoice for such services.

                                      A-5
<PAGE>

          3.13. A.M. Best Rating Reduction Remedy. If on any date (the
"Reduction Date") the rating from A.M. Best Company is reduced to less than B+
on Bankers Life and Casualty Company, Conseco Annuity Assurance Company, Conseco
Health Insurance Company, Conseco Life Insurance Company or Conseco Senior
Health Insurance Company, Conseco shall be obligated to retain an investment
banker of national recognition (the "Investment Banker") reasonably satisfactory
to the Agents to explore strategic alternatives ("Strategic Alternatives") to
repaying in full in cash all Obligations under the $1.5 Billion Facility and
each of the D&O Facilities (or, in the case of the D&O Facilities, cash
collateralize such Facilities), which Strategic Alternatives shall include
either (i) the sale of one or more of its Subsidiaries ("Sufficient Assets") the
value of which will be sufficient to repay in full in cash all such Obligations,
(ii) such other Strategic Alternative(s) approved by the Required Banks or (iii)
both the sale of Sufficient Assets and one or more other Strategic Alternatives
approved by the Required Banks (clauses (i), (ii) or (iii), individually, an
"Approved Strategic Alternative"). At any time, the Required Banks may amend,
supplement or otherwise modify the requirements of this Section 3.13, including
amending the terms and/or conditions of an Approved Strategic Alternative,
releasing Conseco from its obligations to proceed with the sale of Sufficient
Assets or otherwise. Conseco and its Subsidiaries shall diligently pursue and
take material steps toward achieving each Approved Strategic Alternative,
including, to the extent applicable, the preparation and distribution of
offering materials with respect to each Approved Strategic Alternative,
facilitating advisors of Conseco in making contact with potential purchasers or
other relevant parties in their due diligence processes, using reasonable best
efforts to prepare, negotiate and execute transaction documents with respect
thereto and consummate such transactions.

          Conseco shall provide the Agents with bi-weekly written reports (in
form and scope acceptable to the Agents), describing the status of its progress
in pursuing, and actions it has taken and is planning on taking toward achieving
each Approved Strategic Alternative. Without limiting the generality of
Conseco's obligations set forth above, Conseco shall have:

          (A) Engaged the Investment Banker to explore Strategic Alternatives no
later than 30 days after the Reduction Date;

          (B) Distributed offering materials, and provided copies thereof to the
Agents, with respect to any Approved Strategic Alternative, no later than 90
days after the Trigger Date;

          (C) Used reasonable best efforts to receive written expressions of
interest, and provided copies thereof to the Agents, with respect to each
Approved Strategic Alternative, no later than 120 days after the Trigger Date;

          (D) Used reasonable best efforts to sign the appropriate transaction
documents with respect to any Approved Strategic Alternative no later than 180
days after the Trigger Date, unless the Required Banks have agreed to extend
such date; and

          (E) Used reasonable best efforts to consummate any Approved Strategic
Alternative no later than 270 days after the Trigger Date, unless the Required
Banks have agreed to extend such date."

                                      A-6
<PAGE>

          (h) Amendment to Section 4.01. Section 4.01 of the Appendix is hereby
amended by (i) deleting from Section 4.01(l) the word "and" where it appears at
the end of such Section 4.01, (ii) replacing in Section 4.01(m) the "." where it
appears at the end of such Section with a "; and" and (iii) adding at the end
thereof the following new subsection 4.01(n):

          "(n) subordinated Contingent Obligations of CIHC in respect of the New
          Exchange Offer Public Debt (the "Subordinated CIHC Guaranty"),
          provided that (i) such Subordinated CIHC Guaranty shall contain terms
          and conditions and shall be subordinated to any and all Obligations
          under the $1.5 Billion Facility and each of the D&O Facilities, in
          each case on terms and conditions satisfactory to the Agents and (ii)
          the Exchange Offer and the disclosures made in connection therewith
          (including, without limitation, pursuant to the Offering Memorandum)
          shall be on terms and conditions satisfactory to the Agents.

          3. Amendment to Section 4.08. Section 4.08(c) of the Appendix is
hereby amended by replacing the number "$100,000,000" where it appears in
Sections 4.08(c)(i) and 4.08(c)(ii) thereof with the number "$50,000,000".

          4. Amendment to Section 4.14. Section 4.14 of the Appendix is hereby
amended by deleting the table contained therein in its entirety and inserting in
lieu thereof the following table:
<TABLE>
<CAPTION>

                           "Fiscal Quarter
                           Ending                                     Ratio
                           ------                                     -----
                           <S>                                         <C>

                           December 31, 2001                           1.20 to 1.0
                           March 31, 2002                              1.25 to 1.0
                           June 30, 2002                               1.25 to 1.0
                           September 30, 2002                          1.10 to 1.0
                           December 31, 2002                           1.10 to 1.0
                           March 31, 2003                              1.30 to 1.0
                           June 30, 2003                               1.75 to 1.0
                           September 30, 2003                          1.90 to 1.0
                           December 31, 2003                           2.15 to 1.0
                           March 31, 2004                              2.25 to 1.0
                           June 30, 2004                               2.50 to 1.0
                           September 30, 2004                          2.50 to 1.0
                           December 31, 2004 and thereafter            2.50 to 1.0"
</TABLE>

          5. Amendment to Section 4.15. Section 4.15 of the Appendix is hereby
amended by (i) deleting the parenthetical contained therein and (ii) deleting
the table contained therein in its entirety and inserting in lieu thereof the
following table:

                                      A-7
<PAGE>

<TABLE>
<CAPTION>

                           "Fiscal Quarter
                           Ending                                     Amount
                           ------                                     ------
                           <S>                                       <C>
                           December 31, 2001                          $1,600,000,000
                           March 31, 2002                             $1,200,000,000
                           June 30, 2002                              $1,200,000,000
                           September 30, 2002                         $1,200,000,000
                           December 31, 2002                          $1,300,000,000
                           March 31, 2003                             $1,300,000,000
                           June 30, 2003                              $1,350,000,000
                           September 30, 2003                         $1,400,000,000
                           December 31, 2003                          $1,400,000,000
                           March 31, 2004                             $1,500,000,000
                           June 30, 2004                              $1,500,000,000
                           September 30, 2004                         $1,700,000,000
                           December 31, 2004 and thereafter           $1,700,000,000"
</TABLE>

          6. Amendment to Section 4.16. Section 4.16 of the Appendix is hereby
amended by deleting such Section in its entirety and inserting in lieu thereof
the following:

               "4.16. Conseco Finance Tangible Net Worth. Conseco shall not
permit Conseco Finance Tangible Net Worth as at the end of any Fiscal Quarter
set forth below to be less than the relevant amount set forth below:
<TABLE>
<CAPTION>

                           Fiscal Quarter
                           Ending                                     Amount
                           ------                                     ------
                           <S>                                        <C>

                           December 31, 2001                          $1,200,000,000
                           March 31, 2002                             $1,200,000,000
                           June 30, 2002                              $1,200,000,000
                           September 30, 2002                         $1,200,000,000
                           December 31, 2002                          $1,200,000,000
                           March 31, 2003                             $1,200,000,000
                           June 30, 2003                              $1,200,000,000
                           September 30, 2003                         $1,200,000,000
                           December 31, 2003                          $1,300,000,000
                           March 31, 2004                             $1,300,000,000
                           June 30, 2004                              $1,300,000,000
                           September 30, 2004                         $1,300,000,000
                           December 31, 2004                          $1,300,000,000
                           March 31, 2005 and thereafter              $1,600,000,000"
</TABLE>

          7. Amendment to Section 4.17. Section 4.17 is hereby amended by
replacing the percentage "200%" where it appears therein with the percentage
"250%".

          8. Amendment to Section 5.01. Section 5.01(c) is hereby amended by
deleting the reference therein to "3.03(a), 4.01" and substituting in lieu
thereof a reference to "3.03(a), 3.12(i), 3.13(A), (B) or (E), 4.01".

                                      A-8
<PAGE>

                                                                        ANNEX II

                         Consolidated Adjusted Earnings

                              Excluded Transactions

Conseco, Inc.
Analysis of Special Charges
Four Quarters Ended December 31,
2001
<TABLE>
<CAPTION>

                                         1Q01            2Q01           3Q01            4Q01            2001
                                    --------------------------------------------------------------------------------
<S>                                <C>               <C>            <C>             <C>             <C>
Employment-Related                    (600,000)       4,968,600      4,745,126       2,350,000       11,463,726

Exit Costs/Restructuring            20,709,158        1,047,338        791,676       3,441,534       25,989,706

Advisory Fees                           86,275        2,044,264      1,512,020         144,034        3,786,593

Legal Fees                           4,382,435        3,100,000           -         26,748,986       34,231,421

Loss on Disposition of Asset         8,624,576        2,400,000           -               -          11,024,576

Outsourcing                               -           2,454,000      4,372,000       3,798,000       10,624,000

Miscellaneous                          401,045          178,636        124,516      (2,539,550)      (1,835,353)

Amort. of deferred sales                  -                -         3,176,576            -           3,176,576

Valuation Adjustments                6,000,000             -              -         (2,500,000)       3,500,000
                                    --------------------------------------------------------------------------------

                                    39,603,490       16,192,838     14,721,914      31,443,004      101,961,246

Less Cash Special Charges               46,475       (6,467,182)    (5,852,042)           -         (12,272,749)

Cap on Special Charge Basket              -                -              -        (12,115,401)     (12,115,401)
                                    --------------------------------------------------------------------------------

Sub-total-Accrued Special Charges   39,649,965        9,725,656      8,869,872      19,327,603       77,573,096

Income Taxes on Accrued Special
Charges                            (14,300,000)      (3,403,980)    (3,104,455)     (6,764,661)     (27,573,096)
                                    --------------------------------------------------------------------------------

Total Conseco, Inc. and
Subsidiaries Special Charges After
Tax                                 25,349,965        6,321,676      5,765,417      12,562,942       50,000,000
                                    ================================================================================

</TABLE>

                                      A-9
<PAGE>

                                    Exhibit B

                              Form of Reaffirmation

March ___, 2002

Bank of America, N.A., as Administrative Agent
231 South LaSalle Street
Chicago, Illinois 60697

Attention: ________________

          Re:  First Stage Amendment and Agreement, dated March 20, 2002 (the
               "Agreement"), among Conseco, Inc. ("Conseco"), CDOC, Inc.
               ("CDOC"), CIHC, Incorporated ("CIHC"), the financial institutions
               party thereto (collectively, the "Banks"), and Bank of America,
               N.A., as Administrative Agent (the "Administrative Agent")

Ladies and Gentlemen:

          Reference is made to the Agreement. Capitalized terms used herein,
unless otherwise defined herein, shall have the meaning assigned thereto in the
Agreement.

          This letter is intended to constitute the reaffirmation (this
"Reaffirmation") of specified documents referenced in the Agreement, and, as
such, is being delivered to satisfy the condition of Section 8.1(e) of the
Agreement, which requires a reaffirmation of the agreements listed on Schedule I
hereto (the "Reaffirmed Agreements") as a condition to the effectiveness of the
Agreement. This letter is for the benefit of the Administrative Agent and the
Banks.

          Each of the parties hereto hereby reaffirm the Reaffirmed Agreements
to which it is a party in each and every respect, including, without limitation,
the validity of any and all of its obligations under each of the Reaffirmed
Agreements including, without limitation, regardless of:

               (a) any defense any borrower has, may have, or may otherwise
          assert with respect to his, her, or its liability for any loans or
          otherwise with respect to any other obligation any such borrower may
          have under the Credit Agreement, dated as of August 21, 1998, among
          the persons listed on the signature pages thereto, as Borrowers, the
          Banks and the Administrative Agent (the "Credit Agreement"), or any
          Loan Document relating thereto, including, without limitation, any
          defense asserted or that might be asserted by any such borrower as
          arising from:

                    (i) the execution, delivery and performance or
               non-performance by any party under of the September 22, 2000
               Agreement,

                    (ii) the execution, delivery, and performance or
               non-performance by any party under the Credit Agreement,

<PAGE>

                    (iii) the execution, delivery or non-performance by any
               party under any other Loan Document and/or

                    (iv) any aspect of the Plan, and/or

               (b) any past, present, or future exercise or non-exercise by the
          Administrative Agent of any right, power and/or remedy against any
          borrower under the Credit Agreement (and/ or his, her, or its
          property), any Cash Collateral Deposits (as such term is defined in
          the September 22, 2000 Agreement), or CIHC (and/or its property).

          Furthermore, each of the parties hereto hereby (a) confirms that it
has requested the Administrative Agent and the Banks to enter into the Agreement
and (b) acknowledges that the Administrative Agent and the Banks would not enter
into the Agreement in the absence of its reaffirmation of the Reaffirmed
Agreements and that the Administrative Agent and the Banks are thus relying upon
such reaffirmation.

          Each of the undersigned represents and warrants that he or she has
been properly authorized to execute and deliver this Reaffirmation on behalf of
Conseco, CIHC or CDOC, as applicable.

          Finally, each of the undersigned acknowledge that each of the
Administrative Agent, the Banks, and their respective successors and assigns
shall be entitled to rely upon this Reaffirmation and that this Reaffirmation is
governed by Illinois law.

                               [signatures follow]

                                      B-2

<PAGE>

                                        Very truly yours,

                                        CONSECO, INC.

                                        By: /s/ James S. Adams
                                           ------------------------------------
                                        Name:  James S. Adams
                                        Title: Senior Vice President, Chief
                                               Accounting Officer and Treasurer

                                        CIHC, INCORPORATED

                                        By: /s/ William T. Devanney, Jr.
                                           ------------------------------------
                                        Name:  William T. Devanney, Jr.
                                        Title: Senior Vice President,
                                               Corporate Taxes

                                        CDOC, INC.

                                        By: /s/ William T. Devanney, Jr.
                                           ------------------------------------
                                        Name:  William T. Devanney, Jr.
                                        Title: Senior Vice President,
                                               Corporate Taxes

                                      B-3
<PAGE>

                                Schedule I

          1. Guaranty, dated August 21, 1998, between Conseco, Inc. as Guarantor
and Bank of America, National Association as Administrative Agent

          2. Guaranty and Subordination Agreement, dated as of September 22,
2000, made by CIHC, Incorporated, as Guarantor and Subordinated Borrower,
Conseco Inc. as Obligor and Subordinated Lender, in favor of Bank of America,
National Association as Administrative Agent

          3. Amended and Restated Cash Collateral Pledge Agreement, dated as of
November 22, 2000, among CDOC, Inc, Bank of America , National Association as
Collateral Agent and Bank of America, National Association as Depositary Bank

                                      B-4

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