Document:

Specimen Employee Performance-Based Restricted Stock Units Agreement

 Exhibit 10.7 (d) 

 

 HORACE MANN EDUCATORS CORPORATION 

2010 Comprehensive Executive Compensation Plan 
 Specimen Performance-Based Restricted Stock Units Agreement – Employee 
 This Performance-Based Restricted Stock Units Agreement (“Agreement”) (consisting of this page containing designations and the Performance-Based Restricted Stock Units Terms and Conditions
attached hereto or delivered concurrently herewith) evidences the grant by HORACE MANN EDUCATORS CORPORATION, a Delaware corporation (the “Company”) to you of performance-based Restricted Stock Units (“Units”) under the 2010
Comprehensive Executive Compensation Plan (“Plan”). 
  

							
		 	 Grantee:
	 	 	 	 (“Employee” or “you”)

				
		 	 Grant Date:
	 	 	 	
				
		 	 Target Number of Units Granted:
	 	 	 	
		
		 	 Performance Period:    January 1, 20___ through December 31, 20 ___

		
		 	 Vesting:    Except as otherwise provided in this Agreement, the number of Units earned based on satisfaction of
performance goals at the end of the Performance Period shall, subject to your continued employment, become vested and nonforfeitable as follows:

		
		 	             ____% of the earned Units shall vest on the first anniversary of the
expiration of the Performance Period.

		
		 	             ____% of the earned Units shall vest on the second anniversary of the
expiration of the Performance Period.

		
		 	 Performance Goals:    Performance Goals are as follows:

  

															
	Metric	 	    Weighting    	 	  	 	
    Threshold (50% of    

Target # Earned)
	 	  	  	Target (100%) Earned	 	  	  	Maximum (200% of
Target
Number
Earned)
	  	 	  	 	  	 	  	 	  	  	  	 	  	  	  
	  	 	  	 	  	 	  	 	  	  	  	 	  	  	  
	  	 	  	 	  	 	  	 	  	  	  	 	  	  	  
	  	 	  	 	  	 	  	 	  	  	  	 	  	  	  

  

							
		 	 Earned awards for performance levels between threshold and target performance levels and between target and maximum performance levels are calculated
based on a straight-line interpolation.

		
		 	 Settlement:    The Units, together with Units, if any, credited as a result of Dividend Equivalents, will be settled by
delivery of one share of the Company’s Stock for each Unit being settled, as follows: (Administrator to check one)

		
		 	 ___ No election to defer settlement has been made and the Units shall be settled as soon as administratively practicable after the date they become
nonforfeitable, subject to the Terms and Conditions herein.

		
		 	 ___ A valid election to defer settlement has heretofore been filed with the Company, and settlement shall be made in accordance with such election,
whose terms are incorporated by reference.

		
		 	 The Units (Administrator to choose one)____ include ___ do not include a right to Dividend Equivalents, which shall become nonforfeitable and
be settled at the same time and manner as the Units to which they relate. The term “Units” includes any Dividend Equivalents credited to Employee’s Account.

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer and Employee has acknowledged the provisions of this Agreement. 
  

			
	 	  	 HORACE MANN EDUCATORS CORPORATION

		
	 Date:______________________
	  	 By:_____________________
 Title_____________________

 Attachment: Performance-Based Restricted Stock Unit Terms and Conditions 3/1/11 

 
  

  

 HORACE MANN EDUCATORS CORPORATION 

2010 Comprehensive Executive Compensation Plan 
 PERFORMANCE-BASED RESTRICTED STOCK UNITS 
 TERMS AND CONDITIONS

 The following Terms and Conditions apply to the Restricted Stock Units granted to Employee by the Company
and Units resulting from Dividend Equivalents (if any), as specified in the Restricted Stock Units Agreement of which these Terms and Conditions form a part. Certain terms of the Units, including the number of Units granted, general vesting date(s)
and settlement date, are set forth on the designations page. 
 1. General.    By accepting
the grant of the Units, Employee agrees to be bound by all of the terms and provisions of this Agreement and the Plan (as presently in effect or later amended) which are incorporated herein by reference, the rules and regulations under the Plan
adopted from time to time, and any interpretations, decisions and determinations the Compensation Committee of the Company’s Board of Directors (the “Committee”) may make from time to time. Terms used in this Agreement but not defined
herein shall have the same meanings as in the Plan, except that the term “Units” shall refer solely to the Units granted hereunder. If there is any conflict between the provisions of this Agreement and mandatory provisions of the Plan, the
provisions of the Plan govern. 
 2. Account for Employee.    The Company shall maintain a
bookkeeping account for Employee (the “Account”) reflecting the number of Units granted hereunder, and adjusted for any Dividend Equivalents or other adjustments to the Units or any settlement or forfeiture thereof. 

3. Settlement in General; Six-month Delay for Specified Employees.    Settlement of Units for which no
valid deferral election is in effect shall be made as soon as practicable following the date such the Units become nonforfeitable, and in any event within 75 days following such date, except as provided in paragraph 5(c) or (d). Settlement of units
for which a valid deferral election is in effect shall be made in accordance with such deferral election. Notwithstanding the foregoing provisions of this paragraph 3, if the Employee is a Specified Employee on the date of termination of service,
any Units subject to Code Section 409A becoming subject to settlement on account of termination of service for any reason other than death shall not be settled earlier than six months and one day after the Employee’s termination of
service. 
 4. Nontransferability and Other Limitations..    Until a Unit has been settled,
Employee may not transfer the Unit or any rights relating thereto to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under
Section 12.03 of the Plan. Sales of shares of Stock delivered in settlement of Units will be subject to any Company policy regulating trading by Employees. Additional events could result in forfeiture or loss of the Units. 

5. Termination of Service; Death, Disability, Retirement Eligibility; Change in Control    Except as
provided below in this paragraph 5, if Employee has a termination of service for any reason, any unvested Units shall thereupon be forfeited immediately. 
 (a) Death or disability.    If Employee incurs a disability (as defined below) or has a termination of service on account of Employee’s death prior to the
date an earned Unit becomes vested, the earned Unit shall thereupon become vested and no longer subject to 

  
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forfeiture, and shall be settled in accordance with the terms designated in this Agreement under “Settlement Date.” If the Employee’s disability or termination of service on
account of death occurs prior to the end of the applicable Performance Period, the number of an Employee’s earned Units shall be a prorata portion of the number of Units that would have been earned if Employee had remained employed (not
disabled) throughout the Performance Period, determined assuming target performance. The earned Units shall be vested and nonforfeitable immediately and shall be settled in accordance with the terms designated in this agreement under
“Settlement Date.” The prorata portion shall be determined by multiplying the number of Units that would have been so earned times a fraction (the “Proration Fraction”), the numerator of which is the number of days Employee was
employed and not disabled during the Performance Period, and the denominator of which is the total number of days in the Performance Period. An Employee will be “disabled” for purposes of this paragraph 5(a) if the employee has a
disability determined under Internal Revenue Code Section 409A regulations 1.409A-3(i)(4). 
 (b)
Retirement Eligibility.    If Employee would become Eligible to Retire (as defined below) prior to the second anniversary of the end of the performance period, then any Units earned shall be vested and not subject to
forfeiture, and shall be settled (notwithstanding anything to the contrary in the designations) 50% on the first anniversary of the expiration of the Performance Period and 50% on the second anniversary of the expiration of the Performance Period
(whether or not the Employee has a termination of service prior to settlement), other than as provided in paragraphs 5(a) above. If the Employee actually Retires prior to the expiration of the Performance Period, the number of the Employee’s
earned Units shall be a pro rata portion of the number of Units that would have been earned if Employee had remained employed throughout the Performance Period, determined based on actual performance, which Units shall be vested and nonforfeitable
and shall be settled (notwithstanding anything to the contrary in the designations) 50% on the first anniversary of the expiration of the Performance Period, and 50% on the second anniversary of the expiration of the Performance Period, subject to
paragraph 5(a) above. The pro rata portion of such earned Units shall be determined by multiplying the number of Units that would have been earned times the Proration Fraction (as defined above). An Employee shall be Eligible to Retire upon the
earlier of (i) age 65 and 5 years of service, or (ii) age 55 and 10 years of service. Notwithstanding the foregoing, all Units shall be forfeited in the event of a termination of service for Cause. 

(c) Change in Control.    If a Change in Control (as defined in Section 3.08(b) of the
Plan) occurs, Units that became vested under paragraph 5(b) shall be immediately settled. If on or after the occurrence of such Change in Control, but prior to the first anniversary thereof, Employee (i) has an involuntary termination of
service by the Company other than for Cause and other than on account of death and is not disabled (as provided in paragraph 5(a)), or (ii) has a constructive termination, any unvested Units shall thereupon become vested and no longer subject
to forfeiture, and shall be settled in accordance with the terms designated in this agreement under “Settlement Date.” Determination of whether Employee has had a constructive termination shall be made by the Committee in its discretion,
consistent with the “good reason” definition in Internal Revenue Code Section 409A regulations 1.409A-1(n)(2). 
  

	6.	 Dividend Equivalents and Adjustments. 

(a) Dividend Equivalents.    Dividend Equivalents will be credited on Units (other than Units
that, at the relevant record date, previously have been settled or forfeited) and deemed 

  
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reinvested in additional Units. Such crediting shall be as follows, except that the Committee, in its discretion, may vary the manner of crediting (for example, by crediting cash dividend
equivalents rather than additional Units for administrative convenience), and Dividend Equivalents so credited will be distributed or settled when the underlying Account is settled: 

(i) Cash Dividends.    If the Company declares and pays a dividend or distribution on Stock in
the form of cash, then additional Units shall be credited to Employee’s Account in lieu of payment or crediting of cash dividend equivalents equal to the number of Units credited to the Account as of the relevant record date multiplied by the
amount of cash paid per share in such dividend or distribution divided by the Fair Market Value of a share of Stock at the payment date for such dividend or distribution. 

(ii) Non-Stock Dividends.    If the Company declares and pays a dividend or distribution on
Stock in the form of property other than shares of Stock, then a number of additional Units shall be credited to Employee’s Account as of the payment date for such dividend or distribution equal to the number of Units credited to the Account as
of the record date for such dividend or distribution multiplied by the fair market value of such property actually paid as a dividend or distribution on each outstanding share of Stock at such payment date, divided by the Fair Market Value of a
share of Stock at such payment date. 
 (iii) Stock Dividends and Splits.    If the
Company declares and pays a dividend or distribution on Stock in the form of additional shares of Stock, or there occurs a forward split of Stock, then a number of additional Units shall be credited to Employee’s Account as of the payment date
for such dividend or distribution or forward split equal to the number of Units credited to the Account as of the record date for such dividend or distribution or split multiplied by the number of additional shares of Stock actually paid as a
dividend or distribution or issued in such split in respect of each outstanding share of Stock. 
 (b)
Adjustments.    The number of Units credited to Employee’s Account shall be appropriately adjusted, in order to prevent dilution or enlargement of Employee’s rights with respect to Units or to reflect any changes
in the number of outstanding shares of Stock resulting from any event referred to in Section 12.05 of the Plan or otherwise, in the discretion of the Committee. 
 7.      Employee Representations and Warranties.    Employee acknowledges receipt of Form S-8 Prospectus in connection with the grant
of Units. As a condition to the settlement of the Units, the Company may require Employee to make any representation or warranty to the Company as may be determined by the Committee or by counsel to the Company to be appropriate or required by law
or regulation. 
 8.      Miscellaneous. 

(a) Binding Agreement; Written Amendments.    This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties. The Plan, this Agreement and any deferral election relating to the Units constitute the entire agreement between the parties with respect to the Units, and supersede any prior agreements or
understandings with respect to the Units. 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, 

  
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suspension or termination of this Agreement which materially impairs the rights of Employee with respect to the Units shall be valid unless expressed in a written instrument executed by Employee.
Any amendment, alteration, suspension or termination required by law or the terms of any Agreement to which the Company is a party, or necessary to preserve or improve the tax status of the Units for the Employee shall be deemed not to materially
impair the rights of the Employee with respect to the Units. 
 (b) No Promise of Continued
Employment.    The Units and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue as an officer or employee 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 in accordance with applicable federal law. 
 (d) Fractional Units and
Shares.    The number of Units credited to Employee’s Account shall include fractional Units calculated to at least two decimal places, unless otherwise determined by the Committee. Upon settlement of the Units Employee
shall be paid, in cash, an amount equal to the value of any fractional share that would have otherwise been deliverable in settlement of such Units. 
 (e) Mandatory Tax Withholding.    Unless otherwise determined by the Committee, at the time the Units become subject to tax, the Company will withhold from any shares
deliverable in settlement of the Units (or if the Units become subject to tax prior to the settlement date, the Company will reduce the number of Units in the Employee’s Account), in accordance with Section 12.06 of the Plan, the number of
whole shares of Stock having a value nearest to, but not exceeding, the amount of income and employment taxes required to be withheld under applicable laws and regulations, and pay the amount of such withholding taxes in cash to the appropriate
taxing authorities. Employee will be responsible for any withholding taxes not satisfied by means of such mandatory withholding and for all taxes in excess of such withholding taxes that may be due with respect to the Units upon vesting or
settlement or otherwise. 
 (g) Unfunded Obligations.    The grant of the Units and
the maintenance of Employee’s Account shall be by means of bookkeeping entries on the books of the Company and shall not create in Employee any right to, or claim against any, specific assets of the Company, nor result in the creation of any
trust or escrow account for Employee. With respect to Employee’s entitlement to any distribution hereunder, Employee shall be a general creditor of the Company. 

(h) 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, Shared Services: HR Financial Services, and any notice to the Employee shall be addressed to the Employee at Employee’s address as then appearing in the records of
the Company. 
 (i) No Shareholder Rights.    Employee and any Beneficiary shall not
have any rights with respect to Stock (including voting rights) covered by this Agreement prior to the settlement of the Units and distribution of the shares of Stock as specified herein. 

  
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 Effective 3/1/11 

  
 5Summary of HMEC Named Executive Officer Annualized Salaries

 Exhibit 10.12 
 Summary of Horace Mann Educators Corporation 
 Named Executive Officer
Annualized Salaries 
 The table below summarizes the annualized salaries of Horace Mann Educators
Corporation’s (the “Company”) Chief Executive Officer, the Chief Financial Officer and the other three highest compensated Executive Officers, as defined in the Company’s Proxy Statement for the 2011 Annual Meeting of
Shareholders (collectively the “Named Executive Officers”), except that Brent H. Hamann is not listed following his departure from the Company. These salaries may be changed at any time at the discretion of the Compensation Committee
and/or Board of Directors of the Company. These salaries do not include short-term and long-term incentive compensation amounts, the Company’s contributions to defined contribution plans and the Company’s contributions to other employee
benefit programs on behalf of these individuals. 
  

			
	Named Executive Officer	  	Annualized Salary
	 Peter H. Heckman

    President and Chief Executive Officer
	  	$600,000.00
	 Dwayne D. Hallman

    Executive Vice President and Chief Financial Officer
	  	$320,000.00
	 Stephen P. Cardinal

    Executive Vice President and Chief Marketing Officer
	  	$395,750.00
	 Thomas C. Wilkinson

    Executive Vice President, Property & Casualty
	  	$321,350.00

  
 Last revision date: May 15, 2011

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