Document:

Exhibit 10.2
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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED. [***] INDICATES THAT INFORMATION HAS BEEN REDACTED.
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PERSONAL AND CONFIDENTIAL
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September 3, 2020
(By E-Mail)
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Mr. David C. Marek
[***]
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Re:[***] Agreement and Release
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Dear David:
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This [***] Agreement and Release (“Agreement”) sets forth the terms of your continued employment with Axsome Therapeutics, Inc. (together with each of its subsidiaries or affiliated companies, the “Company”) and related matters.
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1. [***]; Separation Date.
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(a) [***] (the “Separation Date”), you will remain as an employee of the Company subject to the terms of this Agreement, and you agree [***].
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(b)Through the Separation Date, [***]. You agree and acknowledge that, as of the Separation Date, you shall no longer serve as, and from and after that date you shall not hold yourself as, an employee, officer, executive, or representative of the Company, and you shall no longer hold yourself out as having any title with the Company. [***].
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(c)For the avoidance of doubt, through the Separation Date you shall continue to comply fully with and be bound by your Employee Proprietary Information and Inventions Agreement, dated as of August 9, 2019 (the “Proprietary Information Agreement”), the Company’s Insider Trading Policy and Code of Conduct and Ethics and all laws and regulations applicable to the business of the Company.  [***].
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2.Payments/Benefits.  In consideration of your obligations set forth in this Agreement, and provided you comply fully with, execute this Agreement, including but not limited to your consent to the Release set forth in Paragraph 4 of this Agreement below, and your consent and non-revocation to the supplemental release and waiver in the form annexed hereto as Exhibit A (the “Supplemental Release”), the Company agrees to the following:
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(a)[***].
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(b)[***].
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(c)[***].
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(d) [***]:
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		(i)
	[***]; and

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		(ii)
	[***].

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(e)[***].
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(f)For the avoidance of doubt, in the event of any breach, by you of any of your obligations pursuant to this Agreement, the Supplemental Release, Proprietary Information Agreement, and the Offer Letter, or if you do not consent to the Agreement or the Supplemental Release (or otherwise revoke the Supplemental Release): (i) you shall not be entitled to receive any of the payments described in Paragraph 2 of this Agreement, and any rights thereto shall be forfeited; and (ii) you shall be obligated to promptly repay to the Company any payments described in Paragraph 2 of this Agreement previously made to you, [***].
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3.COBRA.  In the event that you elect to receive after the Separation Date continuation coverage in the Company’s medical and dental plans pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), such continuation coverage shall be at your own expense.  COBRA continuation coverage shall in all respects be subject to the requirements, conditions and limitations of COBRA and of the medical and dental plans of the Company, which may be amended from time to time.
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4.General Release and Waiver of Claims.  In consideration of the Company’s obligations set forth in this Agreement, including but not limited to the arrangements, payments, and benefits described above, to which you acknowledge and agree you would not otherwise receive nor be entitled, you voluntarily, knowingly, willingly, unconditionally, and irrevocably, on behalf of yourself and all of your heirs, executors, administrators, beneficiaries, representatives, and assigns, hereby release and forever discharge the Company, each of its subsidiaries or affiliated companies, and each of their respective past, present and future officers, directors, trustees, shareholders, employees, agents, employee benefit plans, general and limited partners, members, managers, investors, joint venturers, representatives, successors, and assigns (collectively, the “Company Releasees”), both individually and in their official capacities, from any and all charges, complaints, claims, causes of action, rights, liabilities, obligations, promises, agreements, controversies, damages, actions, suits, rights, demands, costs, losses, debts, and expenses (including attorneys’ fees and costs actually incurred) of any type, nature or description, in law or equity, known or unknown, suspected or unsuspected, vested or contingent, accrued or yet to accrue, which you ever had in the past, now have, or hereafter can, shall or may have for, upon, or by reason of any matter, cause or thing whatsoever arising from the beginning of time to the time you sign this Agreement (the “Release”).  This Release includes, but is not limited to, any rights or claims in any way related to, connected with or arising out of your employment relationship with the Company, or the cessation of such employment; any claims for unpaid wages, back pay, salary, commissions, bonuses, incentive pay, vacation pay, legal fees, fringe benefits, severance or other compensation; any claims arising under any covenant of good faith and fair dealing, express or implied, or any agreements, contracts, understandings, plans, policies, or promises, express or implied, oral or written, formal or informal, including without limitation your Offer Letter, and any other employment agreements you received and/or executed in connection with your employment relationship with the Company; any tort, including without limitation intentional infliction of emotional distress, defamation, fraud, and breach of duty; any legal restrictions on the right to terminate employees; and any federal, state, local, or other governmental common law, statute, regulation, ordinance, or other requirement, including without limitation: Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866, Sections 1981 through 1988 of Title 42 of the United States Code, the Age Discrimination in Employment Act of 1967, as amended by the Older Workers Benefit Protection Act, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act of 1990, the Genetic Information Nondiscrimination Act of 2008, the Worker and Adjustment Retraining Notification Act, the Equal Pay Act, the Rehabilitation Act of 1973, the Family and Medical Leave Act of 1993, the anti-retaliation provisions of the Fair Labor Standards Act, the anti-retaliation provisions of the Corporate and Criminal Fraud Accountability Act of 2002, 18 U.S.C. § 1514A, also known as the Sarbanes-Oxley Act of 2002, or the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Occupational Safety and Health Act, the Uniformed Services Employment and Reemployment Rights Act, the Fair Credit Reporting Act, the New York State and New York City Human Rights laws, the New York Labor Law, and the New York City Administrative Code, the California Fair Employment and Housing Act, the California
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Unruh Civil Rights Act, the California Family Rights Act, the California Labor Code, the California Business & Professions Code, the California Government Code, the California Civil Code, each as amended, and any other federal, state, or local law, statute, regulation, ordinance, or common law; provided, however, that nothing in this Release or this Agreement shall serve to waive: any (a) claims or rights that, pursuant to law, cannot be legally waived or subject to a release of this kind, such as claims for unemployment or workers’ compensation benefits; (b) rights to receive any vested pension benefits under any plan or program maintained by the Company, in accordance with the terms of such plan or program; (c) your past and continuing rights, if any, to indemnity and advancement of defense costs to the fullest extent permitted by law and pursuant to the By-Laws and other governing plans and agreements of the Company by and between its current and former officers and employees; and (d) any right you may have to bring appropriate proceedings to enforce this Agreement.
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For the purpose of implementing a full and complete release, you expressly acknowledge that the releases given in this Agreement are intended to include, without limitation, claims that you did not know or suspect to exist in your favor at the time of the date of your execution of this Agreement, regardless of whether the knowledge of such claims, or the facts upon with they might be based, would have materially affected the settlement of this matter; and that the payments and arrangements provided under this Agreement was also for the release of those claims and contemplates the extinguishment of any such unknown claims, despite the fact that California Civil Code Section 1542 may provide otherwise.  You expressly waive any right or benefit available to you in any capacity under the provisions of California Civil Code Section 1542, which provides as follows:
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A general release does not extend to claims which a creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
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You further agree and represent that you have consulted with an attorney over the meaning and significance of this Civil Code § 1542 waiver and that you knowingly and voluntarily waive your rights under this statute.
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5.No Further Payments or Benefits.  You acknowledge that the arrangements, payments and benefits described in Paragraph 2 of this Agreement above are in lieu of and in full satisfaction of any amounts that might otherwise be payable under any contract, plan, policy or practice, past or present, of the Company, including but not limited to your Offer Letter.  [***].
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6.Confidentiality.
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(a)In addition to your confidentiality obligations pursuant to your Offer Letter and your Proprietary Information Agreement, all of which are incorporated by reference as if set forth expressly herein, you hereby acknowledge and agree that in the course of your employment with the Company you had access to confidential information and/or proprietary information (“Confidential Information”), which includes, without limitation, information relating to the Company, and its business, clients, prospective clients, vendors, suppliers, consultants, business plans and strategies, inventions, research, developments, products, product plans, designs, methods, know-how, techniques, systems, processes, software programs, works of authorship, processes, formulas, technology, drawings, assays, raw data, scientific pre-clinical or clinical data, records, databases, formulations, clinical protocols, equipment designs, customer or vendor lists, projects, proposals, market plans, forecasts, investment models and plans, performance information, business transactions and relationships, advertising, marketing, employees, contractors, shareholders, partners, members, officers and other personnel, accounts, credit and financial information, computer software, know-how, trade practices, trade secrets or other matters that are not publicly known outside the Company, all of which are integral to the operations and success of the Company, and that such Confidential Information has been disclosed to you in confidence and only for the use of the Company.  You understand and agree that: (a) you will keep such Confidential Information confidential at all times during and after your employment with the Company; (b) you will not at any time disclose, divulge, use, publish, reveal or in any other manner make use of, directly or indirectly, such Confidential
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Information on your own behalf, or on behalf of any third party; and (c) you have returned or will return to the Company, on or before [***], any and all copies, duplicates, reproductions or excerpts of such Confidential Information within your possession, custody or control.  You further agree that you shall abide by any and all common-law and statutory obligations relating to protection and non-disclosure of trade secrets and confidential and proprietary documents and information.
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(b)You are hereby notified in accordance with the Defend Trade Secrets Act of 2016 that you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Additionally, you are further notified that an individual who files an action or lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose a trade secret to the individual’s attorney and use the trade secret information in a proceeding if the individual: (c) files any document containing the trade secret under seal, and (d) does not disclose the trade secret except pursuant to court order.
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7.Continuing Obligations.
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(a) You agree to comply with your obligations pursuant to your Proprietary Information Agreement and your obligations of your Offer Letter.  For the avoidance of doubt, nothing in this Agreement shall eliminate, reduce, replace, or impair, or be construed to eliminate, reduce, replace, or impair your other continuing obligations pursuant to Paragraphs 4, 6, 7, 14 of the Proprietary Information Agreement, any additional continuing obligations you may have pursuant to any prior agreement(s) between you and the Company, including without limitation any restrictive covenants and/or post-employment obligations contained in any such prior agreement(s), plans or programs of the Company, which restrictive covenants and/or post-employment obligations shall continue in full force and effect.  For the further avoidance of doubt, nothing in this Agreement shall affect or be construed to affect any and all rights of the Company (or a designee thereof) to enforce, or to obtain recovery or relief for any breach of threatened breach by you of, any such restrictive covenants or post-employment obligations.  Furthermore, nothing in this Agreement shall eliminate, reduce, replace, or impair your obligations to comply with applicable policies and procedures of the Company through the Separation Date, and all requirements contained therein.  You acknowledge and agree that you are not relying on any representations or promises by any representative of the Company concerning the meaning of any aspect of this Agreement.
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(b)You acknowledge and agree that all documents, records, and files (electronic, paper or otherwise), materials, software, equipment, and other physical property, including but not limited to computers, mobile phones, electronic devices, laptops and peripherals, security access badges, ID cards, building and office access cards, entry badges, keys, access codes, passwords and log-in credentials, software, hardware, and databases, and all copies of the foregoing, including but not limited to all such items containing Confidential Information of the Company, that you have received, acquired, or which have come into your possession, custody or control or been produced by or to you in connection with your employment (collectively, “Company Property”), have been and remain the sole property of the Company. You represent and warrant that by no later than [***], you will conduct a thorough and diligent search for, and shall return to the Company, all such tangible Company Property.  You further agree that by no later than [***], you will conduct a thorough and diligent search for, and permanently and irrevocably delete, any intangible Company Property that exists or is stored: (a) in any email account; (b) in any “cloud” account; or (c) on any computer, laptop, tablet, mobile device, cellular phone, smartphone, or PDA, the foregoing of any of which are accessible, possessed, controlled or owned by you.
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8.Non-Disclosure.
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(a)You agree to keep any discussions and negotiations leading up to and in connection with this Agreement strictly confidential.  [***].  Nothing in this Paragraph or this Agreement shall affect or interfere with any right you may have under Section 7 of the National Labor Relations Act.
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(b)Nothing in this Agreement or the Supplement Release is intended to or shall preclude you from: (i) providing truthful testimony on any non-privileged subject matter in response to a valid subpoena, court order, regulatory request or other judicial, administrative, or legal process or otherwise as required by law, in which event you agree that you shall notify the Company, in writing, unless prohibited to do so by law, as promptly as practicable after receiving any such request of the anticipated testimony and at least ten (10) days prior to providing such testimony (or, if such notice is not possible under the circumstances, with as much prior notice as is possible) so that the Company may seek a protective order or other appropriate remedy, and you agree to cooperate with the Company in any effort the Company undertakes to obtain a protective order or other remedy; or (ii) reporting, without any prior authorization from, or notification to, the Company, possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the SEC, the Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation.
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9.Non-Disparagement. You agree not to [***]. The Company agrees that [***].
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10.Injunctive Relief.  You acknowledge and agree that the Company will be irreparably harmed by any breach, or threatened breach, by you of any of Paragraphs 6, 7, 8 or 9 of this Agreement and that monetary damages would be grossly inadequate.  You further acknowledge and agree without reservation that the terms, conditions, and restraints in Paragraphs 6, 7, 8 and 9 of this Agreement are reasonable and no greater than necessary to ensure the reasonable and proper protection of the relationships (client, customer, personnel, and business), goodwill, Confidential Information, and other legitimate business interests of the Company and the Company Releasees; that each and every one of such terms, conditions, and restraints, individually or in the aggregate, will not prevent you from obtaining other suitable employment following the Separation Date and will not impose any undue hardship upon you.  Accordingly, you agree that in the event of a breach or threatened breach by you of any or all of Paragraphs 6, 7, 8 or 9 of this Agreement, the Company shall be entitled to seek and obtain immediate injunctive or other preliminary or equitable relief, as appropriate, in addition to all other remedies available at law and equity, without being required to post a bond.  You further understand and agree that if the Company is successful in whole or in part in any legal or equitable suit, claim, charge, action, or proceeding against you under this Agreement, the Company shall be entitled to payment and/or reimbursement, from you, of all reasonable attorneys’ fees, costs, and expenses incurred with respect to any such suit, claim, charge, action, or proceeding.
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11.Cooperation.  You agree to cooperate fully with the Company concerning reasonable requests for information about the business of the Company or your involvement and participation therein; the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while you were employed by the Company about which you may have knowledge; and in connection with any investigation or review internally or externally by any federal, state or local regulatory, quasi-regulatory or self-governing authority as any such investigation or review relates to events or occurrences relating to business matters or other work-related issues that transpired while you were employed by the Company or about which you may have knowledge.  Your cooperation shall include, but not be limited to, being available to meet and speak with officers, directors, executives, members, managers, or employees of the Company and/or their counsel at reasonable times and locations, executing accurate and truthful documents and providing truthful testimony at deposition and/or court appearances, and taking such other actions as may reasonably be requested by the Company and/or their counsel to effectuate the foregoing.
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12.No Suits.  You hereby represent and warrant that you have not filed, caused to be filed or permitted to be filed any complaints charges, lawsuits or other proceedings against the Company or any of the Company Releasees, and that no such complaints, charges, lawsuits or other proceedings are pending.  You further agree not to initiate any legal action or proceeding against the Company or any of the Company Releasees in any forum in connection with the claims released by you.  Notwithstanding the foregoing, nothing in this Agreement shall prohibit you from filing an administrative charge with, or participating in, any investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”), the SEC, or any other comparable state or local agency or other governmental or law enforcement agency, subject to the restriction that if any such charge is filed, you agree to the fullest extent permitted
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by law not to violate the confidentiality provisions of this Agreement.  You further agree that, to the fullest extent permitted by law, if you, or anyone on your behalf, files a charge with the EEOC, civil action, suit or legal proceeding against the Company or Company Releasees, you shall not be entitled to any personal recovery in any such action or proceeding before the EEOC or otherwise that may be commenced on your behalf arising out of the matters released hereby, provided, however, that the foregoing limitation on recovery shall not apply to administrative proceedings before the SEC.
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13.No Wrongful Conduct.  You hereby represent, warrant, and covenant that at no time prior to or contemporaneous with your execution of this Agreement have you knowingly engaged in any wrongful conduct against, on behalf of or as the representative or agent of the Company, or otherwise engaged in any conduct or activity in violation of any applicable laws, statutes, rules, regulations, or ordinances, including without limitation any rules or regulations of (or enforced by) the SEC, or any state or other applicable regulatory or self-regulatory agency, body or organization of which the Company is a member or to whose jurisdiction or authority you or the Company are otherwise subject.  You further hereby represent, warrant, and covenant that you are not aware of any actions or omissions by any current or former executive, officer, member, director, employee, contractor, agent, attorney, consultant, or representative of the Company (including yourself) through the date of your execution of this Agreement that were (individually or collectively) in any way knowingly or intentionally harmful or detrimental to the Company, and/or the business, clients, or customers of the Company that you have not previously shared with the Company or its counsel.
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14.Governing Law and Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to the conflict of law provisions thereof.  Further, you agree to submit to the exclusive jurisdiction of the state and/or federal courts located within the State of New York for the resolution of any matter in any way arising out of, relating to or connected with this Agreement, the Supplemental Release, your employment by the Company or the cessation of your employment.  The Company and you each hereby waive, as against the other, trial by jury in any judicial proceeding to which the Company and you are both parties involving, directly or indirectly, any matter in any way arising out of, related to or connected with this Agreement or the Supplemental Release.
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15.Contents of Agreement, Amendment, Interpretation.
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(a)Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in each and every jurisdiction in which enforcement is sought.  In the event that any one or more of the terms, provisions, clauses, and/or paragraphs of this Agreement shall be held to be invalid, illegal or unenforceable in any way and to any extent, the validity, legality and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby.  Moreover, if any one or more of the provisions contained in this Agreement shall be held to be excessively broad or invalid as to duration, scope, activity or subject, such provisions shall be construed by limiting, modifying, and/or reducing such provisions so as to be enforceable to the maximum extent compatible with and permitted by applicable law.  No waiver by either party of any breach by the other party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time.
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(b)Ambiguities; Paragraph Headings.  This Agreement and the provisions contained herein shall not be construed or interpreted for or against either party because that party drafted or caused that party’s legal representative to draft any of its provisions, and the paragraph headings contained in this Agreement are for reference purposes only and shall not affect or alter the meaning or interpretation of this Agreement or any term or provision hereof.
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(c)Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns.  Additionally, the provisions of this Agreement shall survive the cessation of your employment with the Company, in accordance with the respective terms of such provisions.
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(d)Entire Agreement.  The terms described in this Agreement sets forth our entire agreement and understanding and supersedes all prior agreements, contracts, arrangements, and understandings, written or oral, express
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or implied, between you and the Company or any of the Company Releasees, except your Proprietary Information Agreement, which shall continue in full force and effect as if set forth expressly herein.
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(e)Modification.  This Agreement may not be amended, altered or modified other than in a writing signed by you and an authorized representative of the Company.
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(f)No Admission.  Neither this Agreement nor the Company’s offer to you of this Agreement shall be construed as, any admission of liability or of any improper conduct on the part of the Company or any of the Company Releases.
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16.Notices.  Except as otherwise provided herein, for the purposes of this Agreement and the Supplemental Release, notices, demands and all other communications provided for in this Agreement or the Supplemental Release, shall be in writing and shall be deemed to have been duly given when delivery is made by e-mail, addressed to you at [***] or, in the case of the Company, to Herriot Tabuteau, Chief Executive Officer ([***]@axsome.com), with a copy to Emilio Ragosa, DLA Piper ([***]@dlapiper.com).
17.Consideration Period. [***]. The Agreement will not become effective until [***].
18.Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument, notwithstanding that all the parties are not signatory to the same counterpart.  This Agreement may be executed either by original, facsimile or electronic copy (including the electronic delivery of signed documents in PDF format), each of which will be equally binding and shall have the same force and effect as original signatures.
19.Acknowledgments and Representations.  The Company advised you to consult with an attorney of your choice prior to signing this Agreement and you acknowledge that you have done so.  You also understand and agree that the Company is under no obligation to offer you the arrangements, payments and benefits set forth above, and that you are under no obligation to consent to the Release and the Supplemental Release.  You acknowledge and agree that the arrangements, payments and benefits described above constitute sufficient consideration to require you to abide with your obligations under this Agreement, including but not limited to the Release and the Supplemental Release.  You represent that you have read this Agreement, including the Release and the Supplemental Release, that you fully understand its terms, and that you choose to enter into this Agreement freely, voluntarily, and without coercion.
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If the foregoing sets forth our agreement as you understand it and consent to it, please sign this Agreement and return it to me at the address listed above.
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	Very truly yours,

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	Axsome Therapeutics, Inc.

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	/s/ Herriot Tabuteau, M.D.

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	By: Herriot Tabuteau, M.D.

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	Title: President and Chief Executive Officer

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	Agreed to and Accepted by:
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	/s/ David C. Marek
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	By: David C. Marek
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	Date:
	September 3, 2020
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Exhibit A
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SUPPLEMENTAL RELEASE
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(to be signed after the Separation Date)
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[***]
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[The remainder of this page has been left blank intentionally.]
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Agreed to and Accepted:
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_______________________
David C. Marek
Date:
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Exhibit B
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[***]

10
​Document

Exhibit 10.2

CNO SERVICES, LLC
EXECUTIVE SEVERANCE PAY PLAN  

Restated Effective as of November 13, 2019

ARTICLE I.

PURPOSE AND TERM OF PLAN

1.1Purpose of the Plan.  The CNO Services, LLC Executive Severance Pay Plan (the “Plan”), as set forth herein, is sponsored by CNO Services, LLC (“Sponsor”) and is intended to ease financial hardships which may be experienced by the eligible Employees of an Employer whose employment is terminated involuntarily other than for Just Cause.  The Plan is not intended to be an “employee pension benefit plan” or “pension plan” as those terms are defined in Section 3(2) of ERISA.  Rather, the Plan is intended to constitute the type of arrangement identified as a “severance pay arrangement” within the meaning of Section 3(2)(B)(i) of ERISA, as further elaborated by regulations promulgated by the Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b), which is subject to ERISA.  No Employee shall have a vested right to such Benefits.  The Benefits paid by the Plan are not intended to constitute deferred compensation and as such, it is intended that the Plan be exempt from Code Section 409A.  It is further intended that any Benefit paid under the Plan be excluded from the benefit-generating or contribution-generating base of any tax-qualified or nonqualified deferred compensation plan or arrangement sponsored or maintained by Employer, unless the documents setting forth such plan or arrangement specifically state otherwise.

1.2Term of the Plan.  The Plan was effective August 6, 2019, (the “Effective Date”), and was subsequently restated effective November 13, 2019.  The Plan will continue until Sponsor, acting in its sole discretion, elects to amend, modify, or terminate the Plan.

ARTICLE II.

 DEFINITIONS

2.1“Actual Bonus” means the amount payable under a Bonus Plan for any calendar year or portion thereof.  Unless determined otherwise by the Employer, the Actual Bonus payable under the P4P Plan shall be based on (i) business results, (ii) Executive Leadership Group department performance and (iii) individual performance, in each case for the applicable time period. 

2.2“Base Salary” means the current base salary or wages paid to a Participant, on a monthly basis, as of the Employee’s Employment Termination Date.  Base Salary shall not include performance, incentive or other bonuses; commissions; Employer contributions to Social Security; benefits payable under, or Employer contributions to, any retirement or other plan of deferred compensation; or the value of any fringe benefits provided by Employer.

2.3“Benefit” means the amount that a Participant is entitled to receive pursuant to Section 4.1 of the Plan.

2.4“Bonus Plan” means the P4P Plan or any other bonus plan in which the Participant is eligible to participate.

2.5“CNO” means CNO Financial Group, Inc.
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2.6“Code” means the Internal Revenue Code of 1986, as amended.
2.7“Control Group Employer” means the Sponsor and any other entity that is under common control of CNO within the meaning of section 1563 (a) of the Internal Revenue Service Code of 1986 as amended (the “Code”).
2.8“Control Termination” means any termination by the Employer (or its successor) of Employee’s employment for any reason, or by Employee With Reason, within six months in anticipation of or within two years following a Change in Control.
The term "Change in Control" shall mean the occurrence of any of the following:
(i)the acquisition (other than an acquisition in connection with a “Non-Control Transaction”) by any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "1934 Act")) of "beneficial ownership" (as such term is defined in Rule 13d-3 promulgated under the 1934 Act), directly or indirectly, of securities of CNO or its Ultimate Parent representing 51% or more of the combined voting power of the then outstanding securities of CNO or its Ultimate Parent entitled to vote generally with respect to the election of the Board of Directors of CNO or the board of directors of CNO’s Ultimate Parent; or
(ii)as a result of or in connection with a tender or exchange offer or contest for election of directors, individual board members of CNO (identified as of the date of commencement of such tender or exchange offer, or the commencement of such election contest, as the case may be) cease to constitute at least a majority of the Board of Directors of CNO; or 
(iii) the consummation of a merger, consolidation or reorganization with or into CNO unless (x) the stockholders of CNO immediately before such transaction beneficially own, directly or indirectly, immediately following such transaction securities representing 51% or more of the combined voting power of the then outstanding securities entitled to vote generally with respect to the election of the board of directors of CNO (or its successor) or, if applicable, the Ultimate Parent and (y) individual board members of CNO (identified as of the date that a binding agreement providing for such transaction is signed) constitute at least a majority of the board of directors of CNO (or its successor) or, if applicable, the Ultimate Parent (a transaction to which clauses (x) and (y) apply, a “Non-Control Transaction”).  

For purposes of this Plan, “Ultimate Parent” shall mean the parent corporation (or if there is more than one parent corporation, the ultimate parent corporation) that, following a transaction, directly or indirectly beneficially owns a majority of the voting power of the outstanding securities entitled to vote with respect to the election of the board of directors of CNO (or its successor).

2.9“Employee” means an individual eligible to participate in the Plan in accordance with Section 3.1.
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2.10“Employer” means the Sponsor and any Control Group Employer that adopts the Plan with the written approval of the Plan Administrator.  A Control Group Employer shall be deemed to be an Employer only during the period subsequent to the Effective Date specified in such written approval and prior to any revocation by the Plan Administrator of such written approval.

2.11“Employment Termination Date” means the date on which the employment relationship between the Employee and Employer is involuntarily terminated and the Employee experiences a “separation from service” as such term is defined under Code Section 409A.  In no event shall an Employee be considered to have involuntarily terminated his or her employment or to have experienced an Employment Termination Date for the purposes of the Plan if his or her employment with Employer is terminated due to (a) Employee’s voluntary cessation of employment (with or without notice); (b) Employee’s death or Disability (as such term is defined under Code Section 409A); or (c) Just Cause.

2.12“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

2.13“Just Cause” means
(a)(i)  a material breach of Employee’s duty of loyalty to the Employer or its affiliates not cured within 15 days after written notice to Employee by the Employer, or (ii) willful malfeasance or fraud or dishonesty of a substantial nature in performing Employee’s services on behalf of the Employer or its affiliates, which in each case is willful and deliberate on Employee’s part and committed in bad faith or without reasonable belief that such breach or action is in the best interests of the Employer or its affiliates; 

(b)Employee’s use of alcohol or drugs (other than drugs prescribed to Employee by a physician and used by Employee for their intended purposes for which they had been prescribed) or other repeated conduct which materially and repeatedly interferes with the performance of Employee’s duties hereunder, which materially compromises the integrity or the reputation of the Employer or its affiliates, or which results in other substantial economic harm to the Employer or its affiliates; 

(c)Employee’s conviction by a court of law, admission that Employee is guilty, or entry of a plea of nolo contendere with regard to a felony or other crime involving moral turpitude;
 
(d)Employee’s unscheduled absence from Employee’s employment duties other than as a result of illness or disability, for whatever cause, for a period of more than three (3) consecutive days, without consent from the Employer prior to the expiration of the three (3) day period; 

(e)Employee’s failure to take action or to abstain from taking action, as directed in writing by a member of the Board of Directors of CNO or a higher ranking Employee of the Sponsor or CNO, where such failure continues after Employee has been given written notice of such failure and at least five (5) business days thereafter to cure such failure; or
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(f)Any intentional wrongful act or omission by Employee that results in the restatement of CNO’s financial statements due to a violation of the Sarbanes-Oxley Act of 2002.
No termination shall be deemed to be a termination by the Employer for Just Cause if the termination is as a result of Employee refusing to act in a manner that Employee believes in good faith would be a violation of applicable law or where Employee acts (or refrains from taking action) in good faith in accordance with directions of a member of the Board of Directors of CNO or higher-ranking executive but was unable to attain the desired results because such results were inherently unreasonable or unattainable.
2.14“Manager” means the member/manager of CNO Services, LLC.

2.15“Named Fiduciary” means Employer and the Plan Administrator.  Each Named Fiduciary shall have only those particular powers, duties, responsibilities and obligations as are specifically given such Named Fiduciary under the Plan.  Any Named Fiduciary, if so appointed, may perform in more than one fiduciary capacity.

2.16“Officer” means an employee with a position of Vice President or higher with an Employer. 

2.17“P4P Plan” means the CNO Pay for Performance Incentive Plan, as amended from time to time.

2.18“Participant” means any of the individuals described in Section 3.1.

2.19“Plan” means the CNO Services, LLC Executive Severance Pay Plan.

2.20“Plan Administrator” means a committee or individual designated by the Sponsor to serve as the Plan Administrator and, in the absence of such designation, means the Sponsor.

2.21“Plan Year” means the period commencing each January 1 and ending on the following December 31, provided the first Plan Year shall be a short plan year commencing on the Effective Date and ending on December 31, 2019.

2.22“Separation Agreement” has such meaning as is set forth in Section 3.3.

2.23“Sponsor” means CNO Services, LLC.  The term “Sponsor” shall also include any successor to CNO Services, LLC if such successor adopts the Plan.

2.24“Spouse” means a person of the opposite sex or a person of the same sex legally married to the Employee in any of the fifty (50) States, the District of Columbia, U.S. Territories, and/or in a foreign country, unless: (1) the Employee and his or her Spouse are divorced, or (2) the Employee and his or her Spouse are legally separated under a decree of divorce or separate maintenance.  The term “Spouse” shall not apply to an individual who has entered into a domestic partnership, civil union, or other similar formal relationship with an Employee that is not denominated as a marriage if the individual is not otherwise married to the Employee as described in the preceding sentence.
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2.25“Target Bonus” means the amount calculated by multiplying the annual actual base salary earnings for a Participant by the applicable percentage as determined by the Plan Administrator.

2.26“Terminated Employee” means a former Employee who has experienced an involuntary termination of employment within the meaning of Section 2.11.

2.27“With Reason” means an Employee’s separation from service with the Employee’s Employer as a result of either (a) a material reduction in Employee’s Base Salary or Target Bonus without Employee’s consent, or (b) a "Change in Control" as defined under the definition of Control Termination and, following Employee’s written request made prior to the Change in Control, the ultimate parent entity or entities directly or indirectly gaining control of a majority of the Board of Directors of CNO or outstanding securities entitled to vote with respect to the Board of Directors of CNO fails to affirm and guarantee the Employer’s current and future obligations under this Plan; provided that the events described in clauses (a) and (b) above shall constitute With Reason only if the Employer fails to cure such event (if capable of being cured) within 30 days after receipt from Employee of written notice of the event which constitutes With Reason; provided, further, that With Reason shall cease to exist for an event on the 60th day following the later of its occurrence or Employee’s knowledge thereof, unless Employee has given the Employer written notice thereof prior to such date.  An Employee’s termination of employment with the Employee’s Employer With Reason shall be deemed an involuntary termination under the Plan.
ARTICLE III.

PARTICIPATION AND 
ELIGIBILITY FOR BENEFITS

3.1Plan Participants.  Employees of an Employer who are Officers of the Employer and report directly to the Chief Executive Officer of CNO shall be eligible to participate in the Plan and to receive Benefits under the Plan, provided that they meet all the requirements stated herein, as determined by the Plan Administrator on a case-by-case basis and, further provided, that the individual has not already satisfied and, as of the individual’s Employment Termination Date, will not satisfy the conditions in order to receive severance benefits under any other arrangement or agreement executed between the Employee and Employer (with the exception of arrangements or agreements under the CNO Amended and Restated Long-Term Incentive Plan, as the same may be amended from time to time, or any other equity plan which may be adopted by CNO).  

Sponsor reserves the right, in its discretion, to cover any additional positions or individuals under the Plan, under whatever terms and conditions that Sponsor shall elect.

3.2General Benefits Award Requirement.  A Terminated Employee shall be eligible to receive a Benefit under the Plan only upon an involuntary termination employment by Employer as provided in Section 2.11. 

3.3Execution of a Separation Agreement.  In order to be eligible to receive the Benefit under the Plan, the Participant must execute a separation agreement in such form and 
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containing such terms as shall be required by the Plan Administrator from time to time, in its sole and absolute discretion, which terms shall include a waiver and release of claims and non-disclosure and non-solicitation provisions (the “Separation Agreement”).

ARTICLE IV.

CALCULATION OF SEVERANCE BENEFIT

4.1Amount of Benefit.  A Terminated Employee who has satisfied the requirements of Article 3 shall be entitled to receive the following benefits, as determined by the Plan Administrator:
(a)Severance Benefit Amount.  A Terminated Employee shall receive a Severance Benefit Amount as follows:

(i)         Termination by the Employer without Just Cause (other than in a Control Termination) or by the Employee With Reason (other than in a Control Termination): a cash lump sum amount equal to 1.5 times the sum of (A) the Employee’s Base Salary and (B) the Employee’s Target Bonus, each as in effect as of the Employee’s Employment Termination Date.

(ii)Termination by the Employer in a Control Termination or by the Employee With Reason in a Control Termination: a cash lump sum amount equal to two times the sum of (A) the Employee’s Base Salary and (B) the Employee’s Target Bonus, each as in effect as of the Employee’s Employment Termination Date.

(b)Actual Bonus.  In addition to the amount set forth in Section 4.1(a), the Terminated Employee shall receive a pro-rated payment of the Terminated Employee’s Actual Bonus for the calendar year in which the Employee’s Employment Termination Date occurs, with such amount to be paid at such time that Actual Bonus payments are made to other Employer executives but in no event later than March 15 of the calendar year following the calendar year with respect to which such Actual Bonuses were payable, unless the Actual Bonus amounts to be paid cannot be confirmed and paid on or before March 15, in which event the Actual Bonuses will be paid within 15 days after the Actual Bonus amounts have been confirmed by the Employer and, in any event, within the calendar year that contains such March 15 date.

(c)COBRA Benefits.  For each Terminated Employee whose Employment Termination Date is on or after November 13, 2019, who is eligible for continuation benefits under the Employer’s medical, dental, vision, On-Site Clinic, EAP and/or Health Care FSA as a result of being entitled to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), hereinafter referred to as “COBRA Coverages,” and the Terminated Employee elects to continue COBRA Coverage, the Terminated Employee’s Employer will subsidize the cost of such COBRA Coverage for eighteen (18) months, by paying directly to the carrier/ administrator an amount equal to the Employer’s portion of the premium for such COBRA Coverage as was in effect immediately prior to the Terminated Employee’s 
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Employment Termination Date on a monthly basis in accordance with the Employer’s usual schedule for remitting payment, which subsidized COBRA Coverage premium payment will be treated as taxable compensation to the Terminated Employee, and will be subject to all applicable federal, state, local and other taxes, including any gross-up amount to be paid by the Employer for such taxes, in accordance with the Employer’s normal payroll schedule and procedures.

(d)Outplacement Assistance.  Employer shall provide to the Terminated Employee outplacement assistance for up to twelve (12) months following the Employee’s Employment Termination Date through an outplacement assistance firm selected by Sponsor, in its sole discretion.  Employer shall pay the costs of such assistance directly to the outplacement assistance firm, such costs not to exceed $25,000.

(e)Financial Planning/Tax Preparation Assistance.  Employer shall pay to the Terminated Employee a single lump sum payment equal to the Employer portion of an additional six months of service for financial planning/tax preparation assistance expenses in the calendar year in which the termination of employment occurs, such cost not to exceed $10,000.  The Terminated Employee may, but is not required to, use this payment for financial planning/tax preparation assistance.

(f)Tax Treatment.  Terminated Employees shall pay (and Employer shall be permitted to withhold) any and all federal, state and local taxes, if any, that are required by law to be paid with respect to the Benefits received.

4.2Reductions.  Except with regard to COBRA Coverage under Section 4.1(c), all other Benefits payable hereunder shall be reduced by any and all payments required to be made by Employer for taxes or otherwise under federal, state and local law.

4.3Effect on At-Will Employment Relationship and on Other Benefits.  Neither the Plan, nor any of its provisions, alters the at-will employment relationship between Employee and Employer.  In addition, there shall not be drawn from the continued provision by Employer of any Benefit hereunder any implication of continued employment or of any continued right to accrue vacation days, paid holidays, paid sick days or other similar benefits normally associated with employment for any part of the period during or in respect of which a Benefit is payable under the Plan.

4.4Benefits as Consideration for Waivers, Covenants and Releases.  The Benefit provided hereunder, where applicable, shall constitute consideration for the release that a Terminated Employee is required to provide to Employer relating to prior employment by Employer.  The Benefit provided hereunder, where applicable, shall also constitute consideration for any waiver by the Terminated Employee, whether full or partial, and whether absolute or conditional, of any rights, claims, entitlement to relief or damages, or entitlement to seek imposition upon Employer of penalties, in connection with any contract, express or implied, or under any statute, regulation, rule, order, or similar promulgation by a governmental or quasi-governmental entity.  In addition, the Benefit provided hereunder, where applicable, shall constitute consideration for any covenants or agreements contained in the Separation Agreement executed by the Terminated Employee in connection with this Plan.
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ARTICLE V.

METHOD AND DURATION OF BENEFIT PAYMENTS

5.1Method of Payment.  Except as otherwise provided in Article 4, a Participant’s Benefits shall be paid in the form of a single lump sum payment as soon as practicable after both (a) the Participant’s Employment Termination Date and (b) the date the Separation Agreement referenced in Section 3.3 becomes effective (as described below), but in no event beyond thirty (30) days from such date; provided, if any such Benefits constitute deferred compensation under Code Section 409A and are payable within a period that spans two calendar years, such Benefits shall be paid in the later calendar year; provided further that, if the Terminated Employee is deemed on the Employee’s Employment Termination Date to be a “specified employee” within the meaning of Section 409A(a)(2)(B) of the Code, any such Benefits that constitute deferred compensation under Code Section 409A and would otherwise be payable prior to the earlier of (i) the 6-month anniversary of the Employee’s Employment Termination Date and (ii) the date of the Employee’s death (the “Delay Period”) shall instead be paid in a lump sum immediately upon (and not before) the expiration of the Delay Period.  For purposes herein, a Participant’s Separation Agreement shall not become effective unless and until the Participant timely executes the Separation Agreement on or before the date set forth in such agreement and does not subsequently timely revoke the Separation Agreement under applicable law.

5.2Cessation of Benefit Payments.  A Participant shall cease to participate in the Plan, and all Benefit payments shall cease, upon the occurrence of the earliest of:
(a)Completion of the payment to the Participant of the entitled Benefit under Section 4.1; or
(b)The violation by the Terminated Employee of any of the provisions of this Plan or of any provisions contained in the Separation Agreement executed by the Terminated Employee.

5.3Death of A Participant.  In the event a Participant dies after executing the Separation Agreement described in Section 3.3, but before receiving all Benefit payments as provided under Section 4.1(a), the remaining Benefit payments as provided under Section 4.1(a) will be made to the Participant’s surviving Spouse.  If the Participant has no surviving Spouse at his or her death, payments will be made to the Participant’s estate.

ARTICLE VI.

THE PLAN ADMINISTRATOR

6.1Authority and Duties.  It shall be the duty of the Plan Administrator, on the basis of information supplied to it by Sponsor, to determine the eligibility of each Terminated Employee to participate in the Plan, to calculate the Benefit to be paid to each Terminated Employee who has been selected by Sponsor to receive a severance pay award and to determine the manner and time of payment of the Benefit.  Employer shall make such payments as are certified to it by the Plan Administrator to be due to Participants.
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The Plan Administrator shall have the full discretionary power and authority to construe, interpret and administer the Plan, to make Benefit eligibility determinations, to correct deficiencies in the Plan, and to supply omissions.  All decisions, actions and interpretations of the Plan Administrator shall be final, binding and conclusive upon the parties, subject only to determinations by individuals appointed by the Manager to review denied claims for Benefits.

6.2Records, Reporting and Disclosure.  The Plan Administrator shall keep all individual and group records relating to Participants and all other records necessary for the proper operation of the Plan.  Such records shall be made available to Employer and to each Participant for examination during business hours, except that a Participant shall examine only such records as pertain exclusively to the examining Participant and to the Plan.  The Plan Administrator shall prepare and shall file as required by law or regulation all reports, forms, documents and other items required by ERISA, the Code, and every other relevant statute, each as amended, and all regulations thereunder (except that Employer, as payor of the Benefits, shall prepare and distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security contributions, and other amounts which may be similarly reportable).

ARTICLE VII.

AMENDMENT AND TERMINATION

7.1Amendment, Modification or Termination.  The Manager retains the right, at any time and from time to time, to amend, modify or terminate the Plan, including amendment or modification of any Appendices hereto, in whole or in part, for any reason, and without either the consent of or the prior notification to any Participant.  Any such amendment may not cause the cessation and discontinuance of payments of a Benefit to any person or persons under the Plan.  The Manager shall have the right to delegate its authority and power hereunder, or any portion thereof, to any committee of the Manager, and the right to rescind any such delegation in whole or in part.

7.2Adoption of Plan.  Any Control Group Employer may adopt the Plan and become a participating Employer by filing a certified copy of a resolution of the governing body of the Control Group Employer with the Plan Administrator, and obtaining written consent by the Plan Administrator by a written document signed by an officer of the Sponsor which indicates the Plan Administrator’s consent to that action.

ARTICLE VIII.

DUTIES OF EMPLOYER

8.1Records.  Employer shall supply to the Plan Administrator all records and information necessary to the performance of the Plan Administrator’s duties.

8.2Payment.  Employer shall make payments from its general assets to Participants formerly in its employ in accordance with the terms of the Plan, as directed by the Plan Administrator.
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ARTICLE IX.

CLAIMS PROCEDURES

9.1General.  Subject to Section 9.2 below, all questions arising in connection with the interpretation of the Plan or its administration or operation shall be submitted to and settled and determined by the Plan Administrator in accordance with the rules and procedures it establishes for the Plan from time to time.  Any such settlement and determination shall be final and conclusive, may be relied upon by, and shall bind, the Sponsor, each of the Employers, each of the Employees and all other parties in interest.  Consequently, benefits under this Plan shall be paid only if the Plan Administrator decides in its discretion that the applicant is entitled to them.  In exercising the discretion expressly vested in it under the Plan, the Plan Administrator shall act only in accordance with nondiscriminatory rules of uniform application to similarly situated employees.  An Employee’s disability status shall not be determined by the Plan Administrator under the Plan, but instead an Employee shall be deemed to be disabled hereunder if the Employee has been determined to be disabled by the Social Security Administration or under the Sponsor’s long-term disability plan.

9.2Claims for Benefits.  In the event of a claim by an Employee concerning eligibility for Benefits hereunder or the amount of any distribution or its method of payment, such Employee shall present the reason for his or her claim in writing to a Human Resources Officer of the Plan Administrator together with all supporting materials.  The Plan Administrator shall, within sixty (60) days after receipt of such written claim, send a written notification to the Employee as to its disposition by certified mail.  In the event the claim is wholly or partially denied, such written notification shall (a) state the specific reason or reasons for the denial, (b) make specific reference to pertinent Plan provisions on which the denial is based, (c) provide a description of any additional material or information necessary for the Employee to perfect the claim and an explanation of why such material or information is necessary, and (d) set forth the procedure by which the Employee may appeal the denial of his or her claim.  In the event an Employee wishes to appeal the denial of his or her claim, he or she may request a review of such denial by making application in writing to a Human Resources Officer of the Plan Administrator within sixty (60) days after receipt of such denial.  Such Employee (or his or her duly authorized legal representative) may upon written request to the Plan Administrator review any documents pertinent to his or her claim, and submit in writing, issues and comments in support of his or her position.  Within sixty (60) days after receipt of a written appeal (unless special circumstances, such as the need to hold a hearing, require an extension of time, but in no event more than one hundred twenty (120) days after such receipt), the Plan Administrator shall notify the Employee of the final decision.  The final decision shall be in writing and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, and contain specific references to the pertinent Plan provision on which the decision is based.

9.3Statute of Limitations.  No action at law or in equity shall be brought by or on behalf of any Employee to recover from the Plan prior to the exhaustion of all administrative remedies provided herein and in any event no action shall be brought unless brought within the earlier of the applicable statute of limitations or three (3) years from the Employee’s Employment Termination Date.  By virtue of participation in this Plan, the Employee agrees that 
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the standard for reviewing any denial of a claim or for recovery from the Plan will be whether the denial of a claim was made in an arbitrary or capricious manner.

ARTICLE X.

MISCELLANEOUS

10.1Nonalienation of Benefits.
(a)          Except as provided in Subsection (b) of this Section 10.1, none of the payments, Benefits or rights of any Participant shall be subject to any claim of any creditor, and, in particular, to the fullest extent permitted by law, all such payments, Benefits and rights shall be free from attachment, garnishment, trustee’s process, or any other legal or equitable process available to any creditor of such Participant.  No Participant shall have the right to alienate, anticipate, commute, pledge, encumber or assign any Benefit or any of the payments which he or she may expect to receive, contingently or otherwise, under the Plan.
(b)Notwithstanding the provisions of Subsection (a) of this Section, any Benefit hereunder shall be subject to (1) offset by any claims of Employer against the Participant; (2) tax liens imposed thereon; and (3) the terms of any valid court order attaching thereto.

10.2Severability of Provisions.  If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included.

10.3Heirs, Assigns, and Personal Representatives.  The Plan shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Participant, present and future (except that no successor to an Employer shall be considered a Plan Employer unless that successor adopts the Plan).

10.4Headings and Captions.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan.

10.5Gender and Number.  Except where clearly indicated otherwise by context, the masculine form of any word shall include the feminine and the neuter, the feminine form shall include the masculine and the neuter, the singular form shall include the plural, and the plural form shall include the singular.

10.6Unfunded Plan.  The Plan shall not be funded.  No Participant shall have any right to, or interest in, any assets of Employer which may be applied to the payment of a Benefit hereunder.

10.7Appendices.  From time to time, Employer may elect to append provisions of limited duration to the Plan to govern what Sponsor determines to be special circumstances governing a substantial number of Employees.  Each such Appendix, during the period stipulated therein, shall be deemed a part of the Plan.  Except as otherwise stated in any such Appendix applicable to any Employee or Terminated Employee, the rights of such Employee or 
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Terminated Employee as stated in such Appendix shall supersede the rights provided under the Plan, the Benefit provided under such Appendix shall be in lieu of comparable or stipulated Benefits provided under the Plan, and there shall be no duplication of Benefits.

10.8Lost Payees.  A Benefit shall be deemed forfeited if the Plan Administrator is unable to locate a Participant to whom a Benefit is otherwise due.

10.9Controlling Law.  The Plan shall be construed and enforced according to federal law.  In the absence of applicable federal law as to any issue, such issue shall be resolved in accordance with the laws of the State of Indiana.

10.10Compliance with Code Section 409A.  This Plan is intended to be exempt from or comply with Code Section 409A and will be interpreted accordingly.  Notwithstanding anything herein to the contrary, (i) if at the time of an Employee’s Employment Termination Date the Employee is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of the Employee’s termination of employment is necessary in order to prevent any accelerated or additional tax under Code Section 409A, then the Employer will defer the commencement of the payment  as described in Section 5.1, and (ii) if any other payments of money or other benefits due to the Employee hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Employer, that does not cause such an accelerated or additional tax.  To the extent any reimbursements or in-kind benefits due to the Employee under this Plan constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to the Employee in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).  Each payment, including each installment payment, made under this Plan shall be designated as a “separate payment” within the meaning of Section 409A of the Code.  As such, and to the extent applicable and permissible under Section 409A of the Code, each such “separate payment” shall be made in a manner so as to satisfy Section 409A of the Code and Treasury Regulations promulgated thereunder, including the provisions which exempt certain compensation from Section 409A, including but not limited to Treasury Regulations Section 1.409A-1(b)(4) regarding payments made within the applicable 2 1⁄2 month period and Section 1.409A-1(b)(9)(iii) regarding payments made only upon an involuntary separation from service.  The Employer shall consult with the Employee in good faith regarding the implementation of the provisions of this paragraph; provided that neither the Employer, nor any of its employees or representatives shall have any liability to the Employee with respect thereto.

10.11Effect of Excise Tax and Limit on Golden Parachute Payments. 

(a)Contingent Reduction of Parachute Payments. If there is a change in ownership or control of CNO that would cause any payment or distribution by the Sponsor or any of its subsidiaries or any other person or entity to Employee or for Employee’s benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise) (each, a “Payment”, and collectively, the “Payments”) to be subject to the excise 
12

tax imposed by Section 4999 of the Code (such excise tax, together with any interest or penalties incurred by Employee with respect to such excise tax, the “Excise Tax”), then Employee will receive the greatest of the following, whichever gives Employee the highest net after-tax amount (after taking into account federal, state, local and social security taxes): (1) the Payments or (2) one dollar less than the amount of the Payments that would subject Employee to the Excise Tax (the “Safe Harbor Amount”). If a reduction in the Payments is necessary so that the Payments equal the Safe Harbor Amount, then the reduction will be determined in a manner which has the least economic cost to Employee and, to the extent the economic cost is equivalent, will be reduced in the inverse order of when payment would have been made to Employee, until the reduction is achieved.  Any reductions pursuant to this Section shall be made in a manner intended to be consistent with the requirements of Section 409A of the Code.

(b)Determination of the Payments. All determinations required to be made under this Section, including whether and when the Safe Harbor Amount is required and the amount of the reduction of the Payments and the assumptions to be utilized in arriving at such determination, shall be made by the Employer which shall provide detailed supporting calculations to Employee.  Employee shall cooperate with any reasonable requests by the Employer in connection with any contests or disputes with the Internal Revenue Service in connection with the Excise Tax.

(c)Adjustments.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of a determination hereunder, it is possible that Payments will be made which should not have been made under clause (a) of this Section (“Overpayment”) or that additional Payments which are not made pursuant to clause (a) of this Section should have been made (“Underpayment”).  In the event that there is a final determination by the Internal Revenue Service, or a final determination by a court of competent jurisdiction, that an Overpayment has been made, any such Overpayment shall be treated for all purposes as a loan to Employee which Employee shall repay to the Employer together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code.  In the event that there is a final determination by the Internal Revenue Service, a final determination by a court of competent jurisdiction or a change in the provisions of the Code or regulations pursuant to which an Underpayment arises under this Plan, any such Underpayment shall be promptly paid by the Employer to or for the benefit of Employee, together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code.
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IN WITNESS WHEREOF, and as evidence of the adoption of the Plan effective November 13, 2019, CNO Services, LLC has caused the same to be executed the thirteenth day of November, 2019.

						
	CNO SERVICES, LLC
		
		
	By:	/s/ Yvonne K. Franzese
		Yvonne K. Franzese
		
	Its:	Chief Human Resources Officer
		
		
		

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