Document:

Amendment No. 1 to the HMSC Executive Severance Plan

 Exhibit 10.16(a) 

AMENDMENT NO. 1 TO THE 
 HORACE MANN SERVICE CORPORATION EXECUTIVE SEVERANCE PLAN 

The Horace Mann Service Corporation Executive Severance Plan, as effective March 15, 2012 (the “Plan”), is
hereby amended, effective June 1, 2012, as follows: 
 I. 
 The first full sentence of Section 4.1(a)(iii) is amended to read as follows: 
 The Severance Payment shall be paid in the form of (I) a lump sum for any Participant described in Section 4.3(c)(3)(ii), and (II) salary continuation for all other Participants, commencing (or
paid) no more than sixty days after the Termination Date, provided the revocation period described in the release has expired prior to the date of the first payment, and subject to Section 10.11(c); provided that if the sixtieth day after the
Termination Date falls in the calendar year following the year in which the Termination Date occurs, such lump sum shall be paid, or such salary continuation shall commence, in such following year, regardless of the year the revocation period
described in the release actually expires. 
 II. 
 Section 4.3(c) is amended to read as follows: 
  

	 	(c)	 Coordination with individual agreements. 

    (i) Notwithstanding Section 3.1(a), except for Participants
described in Section 4.3(c)(ii), any individual who is a party to an agreement (“Severance Agreement”) between the individual and an Employer that provides for payments of “nonqualified deferred compensation” under Code
Section 409A upon termination of employment or service (either before or after a change in control) shall not be eligible to become a Participant in the Plan until the next January 1 after he or she ceases to be covered by such Severance
Agreement, provided that if a change in control (as defined in the Severance Agreement) shall have occurred prior to such January 1, then such individual shall not become a participant herein. 

    (ii) A Participant is described in this Section 4.3(c)(ii)
if he or she is listed in Schedule A or Schedule B with an Effective Date of Participation of June 1, 2012; provided that such Participant is described in this Section 4.3(c)(ii) (and thus would receive any Severance Payment to which he or
she may become entitled in the form of a lump sum) only during the period commencing June 1, 2012 and ending December 31 of the year in which such individual ceases to be covered by a Severance Agreement (as defined above). 

  
 1 

 III. 
 Section 9.3 is amended to read as follows: 
 9.3 No Duplication of Benefits; Recoupment. Subject to Section 4.3 and 10.11(f), (a) salary continuation payments hereunder shall be offset (at the time otherwise payable) by any salary
continuation payments under the Horace Mann Service Corporation Severance Pay Plan (which provides solely for limited salary continuation payments) or any other plan, policy or individual agreement providing for salary continuation payments; and
(b) lump sum payments hereunder shall be offset (at the time otherwise payable) by any lump sum payments under a Severance Agreement (as defined in Section 4.3(c)), or any other plan, policy or individual agreement providing for lump sum
severance payments. Payments and benefits provided under the Plan shall be in lieu of any termination or severance payments or benefits for which the Participant may be eligible under any of the plans or policies of the Company or an Affiliate or
any agreement between an individual and the Company or an Affiliate (except as provided above in this Section 9.3), or under the Worker Adjustment Retraining Notification Act of 1988 or any similar statute or regulation. Any amounts paid or
provided under the Plan shall be subject to the Employer’s policies regarding recoupment as in effect from time to time. 

  
 2HMSC Executive Severance Plan Schedule A Participants

 Exhibit 10.16(b) 

HORACE MANN SERVICE CORPORATION 
 EXECUTIVE SEVERANCE PLAN 
 SCHEDULE A PARTICIPANTS 

 

			
	NAME OR TITLE	  	
                      
                          EFFECTIVE DATE
                                  
               OF

                      
                          PARTICIPATION*

	
	 TIER I PARTICIPANTS

	 None
	  	
	
	 TIER II PARTICIPANTS

	 EVP and CFO
	  	                          
                      June 1, 2012**
	 EVP and Chief Marketing Officer
	  	                          
                      June 1, 2012**
	 EVP, Property and Casualty
	  	                          
                      June 1, 2012**
	 EVP, Annuity, Life, Group
	  	                          
                      March 15, 2012
	
	 TIER III PARTICIPANTS

	 SVP, HR & Administrative Operations
	  	                          
                      June 1, 2012**

  

	*	 Subject to acceptance within 30 days of the effective date of participation 

**      Designates an individual who, as of the Effective Date of Participation, is covered by a Severance
Agreement, as defined in Section 4.3(c)(i) of the Plan. 
 Last updated: May 23, 2012Promissory Note due to Pikerni, LLC ($250,000)

 Exhibit 10.7 
 PROMISSORY NOTE 
  

			
	 $250,000
	  	Westminster, Colorado
		  	March 28, 2012

 For value received, the undersigned, Arête Industries, Inc.
(“Debtor”), of 7260 Osceola Street, Westminster, CO 80030, hereby promises to pay to the order Pikerni, LLC (Pikerni), 10860 E Democrat Road, Parker, Colorado 80222 on or before the
28th day of March 2013 (“Maturity Date”), the
principal sum of Two Hundred Fifty Thousand ($250,000) Dollars, with interest of $2,500.00, payable monthly, at the rate of 12.00% per annum. 
 Principal and Interest: This Promissory Note (“Note”) shall be paid in 1 payment of principal of $250,000, due on March 15, 2013 and monthly interest payments of $2,500.00 due on the
28th day of each month. 

Payments of both principal and interest are to be made in lawful money of the United States of America in immediately available funds.

 Prepayment: Debtor shall have the privilege of prepaying without penalty all or any part of this Note, at any time,
that includes the full interest payment. 
 Default and Acceleration: Upon the occurrence of a Default as defined in the
Security Agreement, at the option of the Holder hereof, (i) the entire outstanding principal balance and all accrued but unpaid interest shall become immediately due and payable upon written notice to Borrower, (ii) the Holder may fully
enforce its rights in the Collateral given to secure the payment of this Note, and (iii) the Holder may pursue all other rights and remedies available under this Note, any instrument securing payment of this Note, or by law. 

Default Rate of Interest: Upon the occurrence of a Default, Borrower promises to pay interest on the outstanding principal balance
of this Note at a simple rate of interest equal to eighteen percent (18%) per annum, plus 7,500 shares in Common Stock of Arête Industries, Inc. (“Default Rate”). 

Early Discharge: Upon full payment of the outstanding principal balance and all accrued but unpaid interest, this Note shall be
fully discharged, cancelled and surrendered to Borrower. 
 Remedies Cumulative: The rights or remedies of the Holder as
provided in this Note and any instrument securing payment of this Note shall be cumulative and concurrent and may be pursued at the sole discretion of the Holder singly, successively, or together against Borrower and/or the Collateral described in
the Security Agreement. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies or the right to exercise them at any later time. 

 Forbearance: Any forbearance of the Holder in exercising any right or remedy
hereunder or under the Security Agreement, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any right or remedy. The acceptance by the Holder of payment of any sum payable hereunder after the due date of
such payment shall not be a waiver of the Holder’s right to require prompt payment when due of all other sums payable hereunder. 
 Application of Payments: All payments made on this Note shall be applied first to to payment of accrued but unpaid interest and the remainder of all such payments shall be applied to the reduction
of the outstanding principal balance on this Note. 
 Usury: In the event the interest provisions hereof, any exactions
provided for herein or in the Security Agreement or any other instrument securing this Note, shall result, in an effective rate of interest which, exceeds the limit of the usury or any other applicable law, all sums in excess of those lawfully
collectible as interest for the period in question shall, without further agreement or notice between or by any party hereto, be applied upon the outstanding principal balance of this Note immediately upon receipt of such moneys by the Holder, and
any such amount in excess of such outstanding principal balance shall be immediately returned to Borrower. 
 Note and
Security Agreement: The Borrower is executing this Note in connection with a Security Agreement between Borrower and Pikerni of even date herewith (Security Agreement”) and this Note is secured by the Collateral described in the Security
Agreement. In the event of any conflict between any provision of the Security Agreement and any provisions of this Note, the provision of the Security Agreement shall control. 
 Jurisdiction: This Note is to be governed according to the laws of the State of Colorado, without giving effect to conflict of law principles. 

Binding Effect: This Note shall be binding upon Borrower, and its successors and assigns and shall inure to the benefit of the
Holder and its successors and assigns. 
 Notice: All notices required or permitted in connection with this Note shall be
given at the place and in the manner provided in the Security Agreement for the giving of notices. 
 Attorneys’
Fees: Borrower further promises to pay all reasonable attorneys’ fees incurred by the Holder in connection with any Default hereunder and in any proceeding brought to enforce any of the provisions of this Note. 

 IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note effective as of the day
and year first above written. 
  

			
	BORROWER:
	
	ARÊTE INDUSTRIES, INC..
		
	 By:
	 	/s/ Donald W. Prosser
		 	  

	 Name:
	 	Donald W. Prosser
	 Title:
	 	CEO

  

			
	 Witness:

		
	 By:
	 	/s/ Charles L. Gamber
	 Name:
	 	Charles L. Gamber
	 Title:
	 	Secretary

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