Document:

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                                                                 Exhibit 10.2(c)
                                               Form of Director Option Agreement
                                                  - Performance Accelerated NQSO
                                       -- Under 2002 Incentive Compensation Plan

                        HORACE MANN EDUCATORS CORPORATION

                        2002 Incentive Compensation Plan

                 Stock Option Agreement -- Non-Employee Director

         This Stock Option Agreement (the "Agreement") confirms the grant on
_________ __, ____ (the "Grant Date") by HORACE MANN EDUCATORS CORPORATION, a
Delaware corporation (the "Company"), to _______________ ("Optionee") of a
non-qualified stock option (the "Option") to purchase shares of Common Stock,
par value $.001 per share (the "Shares"), as follows:

         Shares purchasable:    ________________ Shares
         Exercise Price:        $_______________ per Share

         Option vests and becomes exercisable: As to all of the Shares on
         __________,_____; provided that portions of the Option will vest and
         become cumulatively exercisable ("Accelerated Vesting") if and to the
         extent that the performance goals set forth under the Company's
         Long-Term Incentive Plan have been achieved for the specified
         performance year. As specified on Attachment A hereto, for each year in
         the period _____ - _____, a level of achievement of performance
         targets, based __% on _____________ and __% on ________________, will
         be determined by the Committee. This level of achievement (the
         "Achievement Level") will be expressed as a percentage of target level
         performance (blending _____and ______performance), ranging from __% if
         the "threshold" level of performance is achieved to ___% if the
         "target" level of performance is achieved to ___% if the "maximum"
         level is achieved or exceeded. If the calculated Achievement Level for
         any year would be less than __%, the Achievement Level will be deemed
         to be _%, and no Accelerated Vesting will result for that year.
         Straight-line interpolation will apply if the level of achievement of
         _______ or ________is less than "target," based on the "threshold" and
         "target" datapoints, or between "target" and "maximum" based on those
         datapoints. The Committee will determine the Achievement Level
         following the completion of the audit of the Company's financial
         statements for the performance year, with any resulting Accelerated
         Vesting effective at the date of such determination. Committee
         determinations of the Achievement Level under the Long-Term Incentive
         Plan and all other matters hereunder will be final. The portion of the
         Option, expressed as a percentage of the total number of Shares
         purchasable under the Option, subject to Accelerated Vesting in each
         year will be as follows:

                                                Portion of Option Subject
         Performance Year                         to Accelerated Vesting
         ----------------                         ----------------------

                ____                        __% times the Achievement Level
                ____                        __% times the Achievement Level
                ____                        __% times the Achievement Level

         provided, however, that the portion of the Option subject to
         Accelerated Vesting in ____ in no event will exceed the then remaining
         unvested portion of the Option. In addition to possible Accelerated
         Vesting, the Option will become immediately vested and exercisable upon
         the occurrence of certain events relating to termination of service as
         a director, in accordance with Section 4 hereof.

         Expiration Date:  _______ __, ____ (the "Stated Expiration Date").

         The Option is subject to the terms and conditions of the 2002 Incentive
Compensation Plan (the "Plan") and this Agreement, including the Terms and
Conditions of Option Grant attached hereto and deemed a part hereof. The number
and kind of shares purchasable, the Exercise Price, and other terms and
conditions are subject to adjustment in accordance with Section 11(c) of the
Plan.

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         Optionee acknowledges and agrees that (i) the Option is
nontransferable, except as provided in Section 6 hereof and Section 11(b) of the
Plan, and (ii) sales of Shares will be subject to any Company policy regulating
trading by employees and directors.

         IN WITNESS WHEREOF, HORACE MANN EDUCATORS CORPORATION has caused this
Agreement to be executed by its officer thereunto duly authorized.

                                               HORACE MANN EDUCATORS CORPORATION

                                               By:______________________________
                                                  [Name]
                                                  [Title]

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                      TERMS AND CONDITIONS OF OPTION GRANT

         The following Terms and Conditions apply to the Option granted to
Optionee by HORACE MANN EDUCATORS CORPORATION (the "Company"), as specified on
the preceding page. Certain specific terms of the Option, including the number
of shares purchasable, vesting and Expiration Date, and Exercise Price, are set
forth on the preceding page.

         1. General. The Option is granted to Optionee under the Company's 2002
Incentive Compensation Plan (the "Plan"), which has been previously delivered to
Optionee and/or is available upon request to the Corporate Benefits Department.
All of the applicable terms, conditions and other provisions of the Plan are
incorporated by reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan. If there is any
conflict between the provisions of this document and mandatory provisions of the
Plan, the provisions of the Plan govern. By accepting the grant of the Option,
Optionee agrees to be bound by all of the terms and provisions of the Plan (as
presently in effect or later amended), the rules and regulations under the Plan
adopted from time to time, and the decisions and determinations of the
Compensation Committee of the Company's Board of Directors (the "Committee")
made from time to time. The Option is a non-qualified stock option and not an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended.

         2. Right to Exercise Option. Subject to all applicable laws, rules,
regulations and the terms of the Plan and this Agreement, Optionee may exercise
the Option only after the time and to the extent the Option has become vested
and exercisable and prior to the Expiration Date of the Option.

         3. Method of Exercise. To exercise the Option, Optionee must (a) give
written notice to the Vice President, Corporate Benefits of the Company, which
notice shall specifically refer to this Agreement, state the number of Shares as
to which the Option is being exercised, the name in which he or she wishes the
Shares to be issued, and be signed by Optionee, and (b) pay in full to the
Company the Exercise Price of the Option for the number of Shares being
purchased either (i) in cash (including by check), payable in United States
dollars, (ii), by delivery of Shares already owned by Optionee (which Shares
must have been held for at least six months if they were acquired under a
Company plan and are not considered to be "mature" shares for accounting
purposes) having a fair market value, determined as of the date the Option is
exercised, equal to all or the part of the aggregate Exercise Price being paid
in this way, or (iii) in any other manner then permitted by the Committee. Once
Optionee gives notice of exercise, such notice may not be revoked. When Optionee
exercises the Option, or part thereof, the Company will transfer Shares (or make
a non-certificated credit) to Optionee's brokerage account at a designated
securities brokerage firm or otherwise deliver Shares to Optionee. No Optionee
or Beneficiary shall have at any time any rights with respect to Shares covered
by this Agreement prior to the valid exercise and full payment for the Shares as
specified herein, and no adjustment shall be made for dividends or other rights
for which the record date is prior to such valid exercise and payment.

         4. Termination Provisions. In the event of Optionee's termination of
service as a director of the Company for any reason (including due to death),
the Option, to the extent then outstanding, will vest and become immediately
exercisable in full, and will remain exercisable until the Stated Expiration
Date.

         5. Optionee Representations and Warranties Upon Exercise. As a
condition to the exercise of the Option, the Company may require Optionee to
make any representation or warranty to the Company as may be required under any
applicable law or regulation.

         6. Nontransferability. The Option is not transferable except to: (a)
the Optionee's spouse, sibling, parent, child or grandchild (including adoptive
relationships), (b) a trust primarily for the benefit of Optionee or the persons
described in (a), and (c) a corporation or other entity exclusively owned by
Optionee or by persons described in (a). In addition, the Option may be
transferred to a Beneficiary in the event of death or as otherwise permitted and
subject to the conditions under Section 11(b) of the Plan.

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         7.  Miscellaneous.

             (a) Binding Agreement; Written Amendments. This Agreement shall be
         binding upon the heirs, executors, administrators and successors of the
         parties. This Agreement constitutes the entire agreement between the
         parties with respect to the Option, and supersedes any prior agreements
         or documents with respect to the Option. No amendment or alteration of
         this Agreement which may impose any additional obligation upon the
         Company shall be valid unless expressed in a written instrument duly
         executed in the name of the Company, and no amendment, alteration,
         suspension or termination of this Agreement which may materially impair
         the rights of Optionee with respect to the Option shall be valid unless
         expressed in a written instrument executed by Optionee.

             (b) No Promise of Service. The Option and the granting thereof
         shall not constitute or be evidence of any agreement or understanding,
         express or implied, that Optionee has a right to continue as a director
         of the Company for any period of time, or at any particular rate of
         compensation.

             (c) Governing Law. The validity, construction, and effect of this
         agreement shall be determined in accordance with the laws (including
         those governing contracts) of the state of Delaware, without giving
         effect to principles of conflicts of laws, and applicable federal law.

             (d) Notices. Any notice to be given the Company under this
         Agreement shall be addressed to the Company at its principal executive
         offices, in care of the Vice President, Corporate Benefits, and any
         notice to the Optionee shall be addressed to the Optionee at Optionee's
         address as then appearing in the records of the Company.

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                                                                    Attachment A

                         CORPORATE PERFORMANCE MEASURES
                        FOR THE LONG TERM INCENTIVE PLAN

                                    ____-____

<TABLE>
<CAPTION>
Measure                   Weight            ____ (  % Vesting)                 ____ (  % Vesting)               ____ (   % Vesting)
------------------------------------------------------------------------------------------------------------------------------------
                                            Thres.  Target  Max.               Thres.  Target  Max.             Thres.  Target  Max.
                                            ----------------------------------------------------------------------------------------
<S>                       <C>               <C>     <C>     <C>                <C>     <C>     <C>              <C>     <C>     <C>
-----------------          --%              ---     ----    ----               ----     ----   ----             ----     ----   ----

-----------------          --%              ---     ----    ----               ----     ----   ----             ----     ----   ----
</TABLE>

Note: Threshold payout is at __%. Target payout is at ___%. Maximum is at ___%.

                                       5<PAGE>

                                                                   Exhibit 10-21

                            TERM LOAN PROMISSORY NOTE

$399,937.50                                               Dated:  July 17, 2002

     FOR VALUE RECEIVED, the undersigned, James Bazet (the "Borrower"), HEREBY
UNCONDITIONALLY PROMISES TO PAY to the order of COBRA ELECTRONICS CORPORATION, a
Delaware corporation (the "Company"), at its office at 6500 West Cortland
Street, Chicago, Illinois 60707, or at such other place as the holder of this
Term Loan Promissory Note ("Term Loan Note") may from time to time designate in
writing, in lawful money of the United States of America and in immediately
available funds, the principal sum of THREE HUNDRED NINETY-NINE THOUSAND NINE
HUNDRED THIRTY-SEVEN AND 50/100 DOLLARS ($399,937.50), together with interest on
the unpaid principal balance at the rate provided below from the date hereof
until the principal amount hereof is paid in full and this Term Loan Note has
terminated. This Term Loan Note was executed pursuant to an authorization of the
Company's Board of Directors, pursuant to which the Company agrees to extend
credit to the Borrower for the purpose of the Borrower's exercising 71,100
Incentive Stock Options.

     The entire principal indebtedness evidenced hereby, together with all
accrued but unpaid interest thereon, shall be due and payable on July 18, 2006
(the "Maturity Date"); provided, however, that the Borrower may, at his option
and without penalty or premium, prepay the outstanding principal balance and
accrued interest thereon, or any portion thereof, at any time prior to the
Maturity Date. Any such prepayment of less than the entire outstanding principal
balance hereof shall be applied first to all accrued but unpaid interest
hereunder, and second to the unpaid principal balance hereof. Interest shall
accrue on the unpaid principal balance hereof at a floating per annum rate equal
to LaSalle Bank National Association's publicly announced prime rate in effect
from time to time or, if such bank's prime rate is unascertainable, the prime
rate as published from time to time in the "Money Rates" section of The Wall
Street Journal. Interest shall be payable on July 18 in each year, commencing
July 18, 2003, and on the Maturity Date, and shall be payable after the Maturity
Date upon demand; provided, however, that the Borrower may, at his option by
written notice to the Company, elect to add the interest due and payable on any
interest payment date prior to the Maturity Date to the outstanding principal
balance hereof and interest shall thereafter accrue thereon as provided above.
The Borrower further agrees to pay all costs and expenses incurred by the
Company in connection with the collection or enforcement of the Borrower's
obligations hereunder.

     Each of the following shall constitute an Event of Default under this Term
Loan Note:

          (1) Borrower fails to pay when due, whether by acceleration or
     otherwise, any payment required under this Term Loan Note;

          (2) Borrower fails generally to pay, or admits in writing his
     inability to pay, his debts as they mature, or applies for, consents to, or
     acquiesces in the appointment of a trustee, receiver or other custodian for
     the Borrower or for a substantial part of the Borrower's property, or makes
     a general assignment for the benefit of creditors; or, in the

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     absence of such application, consent or acquiescence, a trustee, receiver
     or other custodian is appointed for the Borrower or for a substantial part
     of the Borrower's property, or any bankruptcy, debt arrangement or other
     proceeding under any bankruptcy or insolvency law is instituted by or
     against the Borrower, or any warrant of attachment or similar legal process
     is issued against any substantial part of the property of the Borrower, and
     such trustee, receiver, custodian, proceeding or process, as the case may
     be, is not discharged, satisfied, dismissed, stayed or lifted, as
     applicable, within sixty (60) days; or

          (3) There shall be entered against the Borrower one or more judgments
     or decrees in excess of $100,000 in the aggregate at any one time
     outstanding, excluding those judgments or decrees (a) that shall have been
     outstanding less than sixty (60) calendar days from the entry thereof or
     (b) for and to the extent to which the Borrower is insured and with respect
     to which the insurer has assumed responsibility in writing or for and to
     the extent to which the Borrower is otherwise indemnified if the terms of
     such indemnification are satisfactory to the Company.

In the event that one or more Events of Default described in clause (2) above
shall occur, all principal, interest and other obligations and liabilities of
the Borrower hereunder (the "Obligations") shall be immediately due and payable
without demand, notice or declaration of any kind whatsoever. In the event an
Event of Default other than one described in clause (2) above shall occur, the
Company, in its sole discretion, may declare the Obligations due and payable
without demand or notice of any kind whatsoever, whereupon all of the
Obligations shall be immediately due and payable. The Company shall promptly
advise the Borrower of any such declaration, but failure to do so shall not
impair the effect of such declaration.

     To the extent not waived in the preceding paragraph, demand, presentment,
protest and notice of nonpayment and protest are hereby waived by the Borrower.

     This Term Loan Note shall terminate upon the payment in full of all of the
Obligations of the Borrower to the Company hereunder.

     This Term Loan Note has been delivered at and shall be deemed to have been
made in Chicago, Illinois and shall be interpreted and the rights and
liabilities of the parties hereto determined in accordance with the internal
laws (as opposed to the conflicts of law provisions) of the State of Illinois.
Whenever possible each provision of this Term Loan Note shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Term Loan Note shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Term Loan Note. THIS TERM LOAN NOTE IS
NON-NEGOTIABLE, AND UNDER NO CIRCUMSTANCES SHALL THE SAME BE CONSTRUED AS A
NEGOTIABLE INSTRUMENT UNDER THE UNIFORM COMMERCIAL CODE, AS ENACTED IN ANY
RELEVANT JURISDICTION. Whenever in this Term Loan Note reference is made to the
Company or the Borrower, such reference shall be deemed to include, as
applicable, a reference to their respective successors and assigns. The
provisions of this Term Loan Note shall be binding upon and shall inure to the

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benefit of said successors and assigns. The Borrower's successors and
assigns shall include, without limitation, a receiver, trustee or
debtor-in-possession of or for the Borrower.
                                                  /s/ James Bazet
                                       -----------------------------------------
                                                      James Bazet

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