Document:

Exhibit

Federal Home Loan Bank of Pittsburgh

Supplemental Thrift Plan
Amended and Restated Effective June 26, 2007
Revised September 26, 2007, December 19, 2008, December 18, 2009, October 26, 2012,  
March 26, 2015, and June 21, 2019

    

Revised:  June 21, 2019    66342-v16

Table of Contents

Article    Page

Preamble      1

   I.    Definitions    2
        
  II.    Participation and Vesting    4
        
 III.    Deferral Elections; Employee Deferrals; Bank Deferrals    5

 IV.    Accounts and Investment Vehicles    7

      V.    Distribution of Benefits    8

 VI.    Administration of the Plan    11

VII.    General Provisions    13

VIII.    Amendment Effective March 26, 2015 Governing Deferrals of
		
	  Deferred Incentive Award Installments
	16

Revised:  June 21, 2019    66342-v16

Preamble

The Federal Home Loan Bank of Pittsburgh (the "Bank") participates in the Financial Institutions Thrift Plan (the "Thrift Plan"), a retirement savings plan qualified under the Internal Revenue Code (the "Code") for employees of the Federal Home Loan Bank of Pittsburgh.  The Thrift Plan permits eligible employees to elect to reduce and defer a percentage of their compensation, contributing the same to the Thrift Plan.  The Bank matches employee contributions based on length of service and the amount of employee contributions.

However, as a result of the limitations imposed upon the aggregate amount of contributions which can be made to the Thrift Plan under Section 415 and other sections of the Code, such limitations causing a reduction in the benefits otherwise provided to certain of the Bank's executives, the Bank has adopted this nonqualified, unfunded Supplemental Thrift Plan (the "Plan").  The purpose of this Plan is to allow those employees whose benefits under the Thrift Plan would otherwise be significantly restricted by the terms of the Thrift Plan itself or the Code to make elective pretax deferrals and to receive the Bank match relating to such deferrals.  Additionally, under the Plan, the Bank will match 200 percent of such employee's contributions; provided, however, that the Bank’s matching contribution will not exceed the excess of 3 percent of the employee's compensation (as defined in the Plan) over the Bank's contribution to the Thrift Plan.

1

Article I
Definitions

		
	1.1
	"Account" means the book reserve account established and maintained hereunder to record the contributions deemed to be made by the Participant and the Bank, as well as the increase in value attributable to the earnings thereon, all as described hereafter.

		
	1.2
	“Bank" means the Federal Home Loan Bank of Pittsburgh.

		
	1.3
	“Bank Deferral" means an amount allocated by the Bank to a Participant’s Account pursuant to Section 3.3.

		
	1.4
	"Beneficiary" means the person or persons designated by a Participant under the provisions of this Supplemental Thrift Plan to receive his/her benefits in the event of his/her death prior to receipt of all benefits hereunder.  If no person is designated by a Participant or the designated person or persons do not survive the Participant, the Participant’s Beneficiary shall be his/her estate.  If a Beneficiary who is receiving payments from a Participant’s Account dies before the entire Account has been distributed, the remaining payments shall be made to the Beneficiary’s estate.

		
	1.5
	"Board" or "Board of Directors" means the Board of Directors of the Federal Home Loan Bank of Pittsburgh.

		
	1.6
	“Code” means the Internal Revenue Code of 1986, as amended from time to time.

		
	1.7
	"Compensation" means annual base salary plus incentive compensation, excluding any Deferred Incentive Award as defined in Section 1.11.  

		
	1.8
	"Compensation Deferral Election" means a Participant's irrevocable election to defer a portion of his/her Compensation.

		
	1.9
	"Deferral Period" means the period commencing with the date a Deferred Amount is first credited to a Participant's Account and continuing until payment of the final installment payment from a Participant's Account.

		
	1.10
	"Deferred Amount" means the sum of all amounts deferred pursuant to a Participant's Deferral Elections pursuant to Articles III and VIII, plus the Bank match (if applicable), plus investment earnings thereon, plus any increments thereof credited to the Participant's Account, less any benefit payments made from the Participant's Account.

		
	1.11
	“Deferred Incentive Award” means that portion of a Participant’s award under a Bank incentive plan, if any, that is performance-based, contingent and subject to payment deferral under the terms of such incentive plan.  

		
	1.12
	"Disability" means with respect to eligibility for payment of a Participant’s vested benefit under the Plan through December 31, 2004, a Participant's total or partial disability as determined by the Thrift Plan in accordance with the Thrift Plan in effect at October 3, 2004.  With respect to eligibility for payment of a Participant’s vested benefit amounts under the Plan after December 31, 2004, “Disability” means that the Participant is: a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; b) by reason of any medically determinable physical or mental impairment, which can be expected to result in death or can be expected to last for a continuous period of not less than 12 

2

months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank; or c) determined to be totally disabled by the Social Security Administration.  

		
	1.13
	"Employee Deferral" means an amount of Compensation deferred by a Participant under the Plan.

		
	1.14
	"Human Resources Committee" means the Human Resources Committee of the Board including any successor Board Committee as shall be designated by the Board from time to time as having responsibility for Bank compensation and benefits programs.

		
	1.15
	"Original Effective Date" means January 1, 1991.

		
	1.16
	"Participant" means an executive or other key employee who has been recommended by the President, and confirmed by the Board, as eligible to participate in the Plan.

		
	1.17
	"Plan Administrator" means such officer(s) or manager of the Bank who has been appointed by the Human Resources Committee to administer the Plan as set forth in Section 6.1 of the Plan.  The Human Resources Director (and any successor) shall serve as the Plan Administrator unless the Board shall appoint another Bank officer(s) or manager.  

		
	1.18
	“Separation from Service” means the Participant’s death, retirement, the time at which the Participant’s services performed for the Bank are permanently reduced to no more than 20 percent of the average level of services performed by the Participant over the preceding 36-month period, or other termination of employment all as set forth in applicable definitions under 26 C.F.R. 1.409A-1(h) and related and successor regulations as may be in effect from time to time.

		
	1.19
	“Unforeseeable Emergency” means: a) a severe financial hardship to a Participant resulting from an illness or accident of: (i) the Participant; (ii) the Participant’s spouse; (iii) the Participant’s dependent as defined in Code Section 152(a); or (iv) if the Participant is already receiving payments under the Supplemental Thrift Plan, a severe financial hardship resulting from illness or accident of the Beneficiary; b) loss of the Participant’s property due to casualty; or c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  

3

Article II
Participation and Vesting

		
	2.1
	Eligibility to Participate.  A Participant shall become eligible for Plan participation on the later of the first day of the calendar month coincident with or next following the date his/her participation is approved by the Board or the Effective Date.  Once selected as a Participant, the Participant shall continue as a Participant until the Board determines otherwise.  No Participant shall have the right to continue as a Participant in the Plan.

Upon designation as a Participant, each Participant will be given a copy of the Plan.  Upon becoming eligible to participate in the Plan, a Participant shall have the option to make a Compensation Deferral Election to defer a portion of his/her annual Compensation.

		
	2.2
	Termination of Participation.  No further Employee Deferrals, Bank Deferrals or deferrals pursuant to Article VIII shall occur with respect to a Participant after the Participant’s employment with the Bank terminates.  However, until the amounts in a Participant’s Account are fully paid out to the Participant and/or his/her Beneficiary, the Participant’s Account shall continue to be notionally invested as provided in Section 4.2, and the Participant (or his/her Beneficiary) shall continue to have the right to change such investments by written notice (which includes electronic notice and in the form prescribed by the Plan Administrator) to the Plan Administrator.  Once a Participant’s Account has been fully paid out, such Participant shall cease to be a Participant in the Plan and neither the Participant nor his/her Beneficiary shall have any further rights hereunder.

		
	2.3
	Vesting.  All benefits under the Plan are fully vested at all times subject only to Forfeiture for Cause as defined in Section 7.6.  For all purposes of the Plan, earnings with respect to amounts in a Participant’s Account which were vested as of December 31, 2004 (and earnings on such earnings) shall be deemed to have been vested as of December 31, 2004 and all other earnings with respect to amounts in a Participant’s Account shall be deemed not to have been vested as of December 31, 2004.

4

Article III
Deferral Elections; Employee Deferrals; Bank Deferrals

		
	3.1
	Compensation Deferral Elections.  The Plan Administrator shall provide each Participant with a form on which to make a Compensation Deferral Election within 10 days after such Participant becomes eligible to participate in the Plan and at least 30 days prior to the end of each calendar year.  Each Participant shall execute and deliver the Deferral Election to the Plan Administrator no later than the last business day of each calendar year with respect to Compensation to be earned as defined in Section 1.7, which includes incentive compensation to be earned in the following calendar year and excludes any Deferred Incentive Award.  

An executive or key employee who becomes eligible to participate during a calendar year shall have the option to execute a Compensation Deferral Election and deliver it to the Administrator within 30 days of the date he/she becomes eligible to participate in the Plan.  Such election shall apply only to Compensation and awards under an incentive plan (excluding any Deferred Incentive Award) to be earned after the date of the delivery of the Compensation Deferral Election to the Administrator and the Bank shall defer such amounts on a prorated basis when applicable.

The Compensation Deferral Election will state the percentage of Compensation which the Participant elects to defer for the remainder of the first year of his/her eligibility or for the forthcoming calendar year, as the case may be; provided that different deferral percentages may apply to base salary and the portion of incentive compensation included in the definition of Compensation in Section 1.7.  A Compensation Deferral Election shall be irrevocable for the calendar year (or portion thereof in the case of the first year of eligibility) for which the deferral is elected unless an amendment of the Thrift Plan requires a new election by a Participant, and such a new election is permissible under I.R.C. Section 409A and implementing regulations.  If such an event occurs, the Plan Administrator will communicate in writing with the Participant to request a new Compensation Deferral Election.  Notwithstanding an amendment of the Thrift Plan:

		
	(a)
	(i) As to amounts earned in the first calendar year of participation, no modification of a Compensation Deferral Election may be made more than thirty (30) days after a Participant becomes eligible to participate in the Plan; and (ii) as to amounts earned in the second and subsequent calendar years of participation, no modification of a Compensation Deferral Election may be made after December 31 of the calendar year preceding the calendar year in which the amounts are earned; and 

		
	(b)
	as to amounts in a Participant’s Account which are not vested as of December 31, 2004, the last four sentences of Section 5.5 shall apply.

		
	3.2
	Employee Deferrals.  Once the Participant has made the maximum amount of employee contributions allowable under the Thrift Plan in a calendar year, additional amounts shall be deferred under this Plan in accordance with the Participant’s Compensation Deferral Election.  Amounts deferred under this Plan with respect to any calendar year may not exceed 80 percent of the Participant's Compensation (including amounts earned pursuant to a Bank incentive plan which are includable in the definition of Compensation) less the Participant’s contributions to the Thrift Plan.  For this purpose, a Participant’s contributions to the Thrift Plan shall include any after‐tax contributions to the Thrift Plan by such Participant.  

		
	3.3
	Bank Deferrals. (a) For each Employee Deferral, the Bank shall allocate a matching Bank Deferral equal to 200 percent of the Employee Deferral; provided that, Bank Deferrals for each 

5

Participant with respect to each calendar year shall not exceed the excess of (a) 3 percent of the Participant’s Compensation over (b) the Bank’s matching contribution to the Thrift Plan.  

(b)  Effective June 21, 2019 for Plan Year 2019 and subsequent Plan Years if a Participant: (1) has contributed to the Thrift Plan the maximum amount of employee contributions permitted under the terms of the Thrift Plan but (2) was credited with an amount of matching Bank contributions to the Thrift Plan which is less than the amount set forth in Section 3.3(a), then, the Participant shall be credited with an additional Bank Deferral under this Plan calculated after taking into account Bank matching contributions actually credited to the Participant under the Thrift Plan for such Plan Year.   

6

Article IV
Accounts and Investment Vehicles

		
	4.1
	Accounts.  The total of the Employee and Bank Deferrals shall be credited monthly to the applicable Participant Account (to a Sub-Account Titled “Compensation Deferrals”) as the deferred amounts are earned and shall be recorded on the financial books and records of the Bank as a liability owed to the Participant and separate investment elections may be made as to separate sub-accounts.  As set forth in Article VIII, any Deferred Incentive Award installments for which an election is made under Article VIII shall be credited to a separate sub-account of such Participant’s Account.

		
	4.2
	Notional Investments.  Effective November 1, 2007, all Employee and Bank Deferrals credited to a Participant's Account will be assumed to be notionally invested in the investment funds selected by Participant from time to time from a list provided to the Participant by the Bank (such list is referred to as the “Eligible Investments”).  Such Eligible Investments shall be substantially similar to the investment choices available under the Thrift Plan from time to time.  Each Participant's notional share in the investment funds shall be represented by notional units in such funds.  Each valuation day the number of new notional units credited to a Participant in the investment funds will be determined by dividing the total amount of such Participant’s Employee and Bank Deferrals notionally invested in the investment funds during the month by the unit value of the investment funds as of the most recent valuation date.  The notional allocations of Employee and Bank Deferrals (as applicable) to the investment funds shall be as set forth in the investment election forms completed by each Participant and submitted to the Plan Administrator from time to time.  Such election forms may be submitted in electronic form in accordance with instructions from the Plan Administrator or, at the option of the Participant in written form.  

		
	4.3
	Records.  The Plan Administrator shall maintain such records as it deems necessary to administer this Plan and shall direct the calculation of amounts in the Participants' Accounts.  To this end, the Plan Administrator is authorized to use Bank employees, agents or contractors to calculate the benefits due hereunder.

7

Article V
Distribution of Benefits

		
	5.1
	Amount of Benefits.  A Participant's Account shall be valued as of the last day of the month preceding each month with respect to which the Participant is entitled to receive a distribution hereunder, assuming no contributions were made since the last day of the preceding month.  If a contribution was made since the last day of the preceding month, the amount of such contribution shall be added to the value determined under the preceding sentence.  This Article V shall apply solely to distributions from a Participant’s Compensation Deferral Sub-Account.  This Article shall not apply to distributions under Article VIII.

		
	5.2
	Events Which Trigger Payment of Amounts Vested as of 12/31/04.  The amounts in a Participant's Account which are vested as of December 31, 2004, including all earnings thereon, shall become payable to him/her pursuant to Section 5.3 as of the earliest of the date of his/her termination of employment with the Bank, including termination due to death, his/her Disability, or his/her retirement or other Separation from Service as defined above.  With respect to amounts in a Participant’s Account which are vested as of December 31, 2004, notwithstanding any deferral election previously made, a Participant may at any time submit a request, through the Plan Administrator, to the Human Resources Committee seeking a distribution of part or all of such amounts for reasons of severe financial hardship or other reasons as permitted under the provisions of the Thrift Plan in its form as of October 3, 2004.  The Human Resources Committee may, in its absolute discretion, grant or refuse any such request.  It is the intention of the Board that hardship and other withdrawals of amounts in a Participant’s Account which are vested as of December 31, 2004 shall be available for the same reasons as such withdrawals are available from the Thrift Plan (in its form as of October 3, 2004) and that the Participant shall provide such proof and documentation as is required for hardship and other withdrawals from the Thrift Plan.

		
	5.3
	Amounts Vested as of 12/31/04 – Form and Timing of Payment.  When a Participant’s Account is payable pursuant to Section 5.2, it shall be paid in a lump sum within 90 days following the applicable payment event set forth in Section 5.2.  Alternatively, if the Participant has so elected, the Participant’s Account shall be paid in from two to ten annual installments.  In the case of installment payments, the first installment payment shall be made within 90 days of the applicable payment event set forth in Section 5.2 and each remaining annual installment shall be paid no later than March 31 of each succeeding year.  The amount of the installment payment to be distributed in each calendar year shall be the amount calculated by dividing the value of the Participant’s Account as of the immediately preceding month-end by the number of remaining installment payments, including the one whose value is being calculated.  The elections and any changes to an election which are permitted hereunder will become effective on the first January 1 which is at least twelve months after the date of the election.  Failure to make an election shall result in a lump sum payment within 90 days of the triggering payment event.

		
	5.4
	Events Which Trigger Payment of Amounts Not Vested as of 12/31/04.  The amount in a Participant’s Account which is not vested as of December 31, 2004, including all earnings thereon, shall become payable to him/her pursuant to Section 5.5 as of the earliest of the date of his/her termination of employment with the Bank (including retirement or other Separation from Service as defined above), his/her Disability or his/her death.  With respect to amounts in a Participant’s Account which are not vested as of December 31, 2004, notwithstanding any deferral election previously made, in the event that a Participant suffers an Unforeseeable Emergency, the Participant may submit a request, through the Plan Administrator, to the Human Resources Committee seeking a distribution of part or all of the amount credited to such Participant's Account.  The Human Resources Committee may, in its absolute discretion, grant or refuse any such request.  The amount of a distribution that the Bank may make hereunder in 

8

response to such a Participant request shall be limited to the amount needed to satisfy the Unforeseeable Emergency plus taxes reasonably anticipated as a result of the distribution.  Distributions shall not be allowed to the extent that the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise, or by liquidation of a Participant’s assets (to the extent such liquidation would not itself cause a severe financial hardship).   

		
	5.5
	Amounts Not Vested as of 12/31/04 – Form of Payment.  When a Participant’s Account is payable pursuant to Section 5.4, it shall be paid in a lump sum within 90 days following the applicable payment event set forth in Section 5.4.  Alternatively, if the Participant has so elected, the Participant’s Account shall be paid in from two to ten annual installments.  Failure to make an election at any time shall result in a lump sum payment.  Any change in an installment payment election, from an installment payment election to a lump sum election or from a lump sum election to an installment payment election (“Revised Election”) will become effective on the first January 1 which is at least twelve months after the date of the election.  In addition, with respect to any such Revised Election which changes the timing of any payment, each payment to be made to the Participant shall be deferred by a date which is at least five years after the date on which such payment would have been made; provided that, for this purpose, a series of installment payments shall be treated as the entitlement to a single payment on the date of the first payment.  A Revised Election which changes an Existing Election from installment payments to a lump sum payment shall require that the date of such lump sum payment shall be a date that is at least five years from the date the initial installment payment would have been made.  Notwithstanding the foregoing or any provision in this Plan, a Revised Election may not cause the impermissible acceleration of any payment, within the meaning of Internal Revenue Code Section 409A or its implementing regulations.   

		
	5.6
	Amounts Not Vested as of 12/31/04 – Timing and Calculation of Installment Payments.  Installment payments under this Plan shall be made as follows: the first payment shall be made within 90 days of the payment event with each remaining annual installment paid no later than March 31 of each succeeding year.  The amount of the installment payment to be distributed in each calendar year shall be the amount calculated by dividing the value of the Participant’s Account as of the immediately preceding month end by the number of remaining installment payments, including the one whose value is being calculated.  

		
	5.7
	Amounts Not Vested as of 12/31/04 – Revision of Existing Payment Election Prior to 12/31/07.  The Plan is hereby amended to permit each Participant, on or before December 31, 2007, to amend his/her current payment election as in effect on June 25, 2007, covering amounts not vested as of December 31, 2004.  Such a revised payment election shall be referred to as a “Transition Election.”  Provided that such Transition Election does not result in a payment in 2007, such Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 5.5.  Any Transition Election shall be subject to the requirements of I.R.S. Notice 2006-79.  

Additional Transition Election Prior to 12/31/08:  Effective January 1, 2008, the Plan is hereby amended to permit Participant, on or before December 31, 2008, to amend his/her current payment election with respect to amounts not vested as of December 31, 2004.  Such revised payment election shall be referred to as the 2008 Transition Election.  Provided that such 2008 Transition Election does not result in a payment in 2008, such 2008 Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 5.5.  Any 2008 Transition Election shall be subject to the requirements of I.R.S. Notice 2006-79, as modified by IRS Notice 2007-86.

		
	5.8
	Death Benefits.  In the event of a Participant's death prior to the payment of all amounts in the Participant’s Account, the amount then held in the Participant's Account shall become payable to 

9

his/her Beneficiary in the same manner as such amount would have been paid to the Participant had he/she not died.

		
	5.9
	Loans.  No loans are available from the Plan.

10

Article VI
Administration of the Plan

		
	6.1
	Human Resources Committee.  The Board has delegated to the Human Resources Committee authority over, and responsibility for, the interpretation and administration of the Plan; except that the power to determine eligibility for participation in the Plan pursuant to Section 2.1 is reserved to the Board.  The Human Resources Committee shall interpret and construe the Plan and have the responsibility to ensure that its provisions are carried out.  The Human Resources Committee shall exercise such power and responsibilities in its sole and absolute discretion.  The Human Resources Committee shall designate the Plan Administrator.

		
	6.2
	Plan Administration.  The Plan Administrator shall:

		
	(a)
	act as the point of contact for submission of claims for benefits due under the Plan;

		
	(b)
	calculate the benefits due under the Plan or arrange for the calculation of benefits;

		
	(c)
	inform Participants of the terms of the Plan and respond to their questions regarding the Plan;

		
	(d)
	review and process claims for the payment of benefits under the Plan;

		
	(e)
	provide necessary reporting to Bank management, Participants, the Human Resources Committee, the Board, and others as necessary; and

		
	(f)
	take such other action as is required to perform the tasks listed hereunder or otherwise administer the terms of the Plan.  In fulfilling the responsibilities in this section, the Plan Administrator may use other Bank staff, other agents or engage contractors.  

		
	6.3
	Claims Procedure.  All claims for benefits shall be in writing and shall be filed with the Plan Administrator.  If the Plan Administrator wholly or partially denies a Participant's or Beneficiary's claim for benefits, the Plan Administrator shall, within 90 days after the Plan's receipt of the claim, give the claimant written notice setting forth in understandable language:

		
	(a)
	the specific reason(s) for the denial;

		
	(b)
	specific reference to pertinent Plan provisions on which the denial is based;

		
	(c)
	a description of any additional material or information which must be submitted to perfect the claim, and an explanation of why such material or information is necessary; and

		
	(d)
	an explanation of the Plan's review procedure.

The claimant shall have 60 days after the day on which such written notice of denial is handed or mailed to him/her in which to apply (in person or by authorized representative) to the Human Resources Committee, in writing, for a full and fair review of the denial of this claim.  In connection with such review, the claimant (or this representative) shall be afforded a reasonable opportunity to review pertinent documents and may submit issues and comments in writing.

The Human Resources Committee shall issue its decision on review promptly and within 60 days after the Plan's receipt of the request for review, unless special circumstances require an extension 

11

to not later than 120 days after receipt of the request for review.  (Written notice of any such extension shall be furnished to the claimant before the commencement of such extension.)  The decision shall be in writing and shall set forth in understandable language specific reasons for the decision and specific references to pertinent Plan provisions on which the decision is based.

12

Article VII
General Provisions

		
	7.1
	Rights to Employment.  The establishment of the Plan, and selection of an executive for inclusion as a Participant in the Plan, shall not be construed as conferring any legal rights upon any Participant or other person for the continuation of employment; nor shall it interfere with the rights of the Bank to discharge any Participant and to treat him/her without regard to the effect such treatment might have upon him/her as a Participant in the Plan.

		
	7.2
	Source of Funding – Participant as General Creditor.  The Bank has not established any form of trust or funded account for the purpose of providing benefits under this Plan.  In the event that the Bank establishes a rabbi trust or other similar arrangement, such arrangement shall preserve this Plan’s status under the Internal Revenue Code as an unfunded nonqualified deferred compensation plan and the assets of the Bank held pursuant to any such arrangement shall remain subject to the claims of the Bank's general creditors.  Any Participant who may have or claim any interest in or right to any amount payable hereunder shall rely solely upon the unsecured promise of the Bank, as set forth herein, for the payment of the claim.  Nothing herein contained should be construed to give to or vest in any Participant, now or at any time in the future, any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatever owned by the Bank, or in which the Bank may have any right, title or interest, now or at any time in the future.  The Plan is not intended to be a qualified plan within the meaning of Section 401(a) of the Code and the Bank shall not be required to qualify the Plan under the Code.

		
	7.3
	Incapacity.  In the event that the Human Resources Committee shall find that a Participant is unable to care for his/her affairs because of illness or accident, the Human Resources Committee may direct that any payment due him/her, unless claim shall have been made therefor by a duly appointed legal representative, be paid to his/her spouse, a child, a parent or other blood relative, or to a person with whom he/she resides, and any such payment so made shall be a complete discharge of the liabilities of the Plan therefor.

		
	7.4
	Reporting and Withholding of Taxes.  The Bank shall file Form W-2 and other applicable tax documents as required under applicable federal and state law, including, without limitation, required annual federal tax filings of a Participant’s accrued benefits under the Plan.  The Bank shall have the right to deduct from each payment to be made under the Plan any required withholding taxes and shall withhold or cause to be withheld from all payments or accruals of benefits under the Plan (if applicable), all federal, state or local taxes required to be withheld by law.  The Participant shall be liable for the payment of all taxes on the benefits under the Plan that are the Participant's responsibility under the laws establishing such taxes.

		
	7.5
	Alienation of Benefits under the Plan.  Benefits payable under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, whether voluntary or involuntary, including any such liability which is for alimony or other payments for the support of a spouse or former spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the benefits under the terms of the Plan, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; nor shall any such distribution or payment be in any way liable for or subject to the debts, contracts, liabilities, engagements or torts of any person entitled to such distribution or payment.  If any Participant or Beneficiary is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any such distribution or payment voluntarily or involuntarily, the Bank, in its discretion, may hold or cause to be held or applied such distribution or payment or any part thereof to or for the benefit of such Participant or Beneficiary in such manner as the Bank shall direct.

13

		
	7.6
	Forfeiture for Cause.  The Bank Deferrals and the earnings on the Bank Deferrals otherwise payable by the Plan may be subject to forfeiture for cause at any time.  "Cause" shall mean:

		
	(a)
	the perpetration by a Participant of a defalcation involving the Bank or any affiliate;

		
	(b)
	willful, reckless or grossly negligent conduct of a Participant entailing a substantial violation of any material provision of the laws, rules, regulations or orders of any governmental agency applicable to the Bank or an affiliate;

		
	(c)
	the repeated and deliberate failure by a Participant to comply with reasonable policies or directives of the Board of Directors; or

		
	(d)
	the breach by a Participant of a noncompetitive covenant or agreement with the Bank or affiliate.

Whether the facts in any given case amount to "Cause" shall be determined by the Board of Directors.

		
	7.7
	Compliance with Laws.  The provisions of the Plan shall be construed, administered and governed under the laws of the United States including, without limitation, Internal Revenue Code Section 409A and implementing regulations and, to the extent they defer to state law, the laws of the Commonwealth of Pennsylvania.  

		
	7.8
	Construction.  Whenever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and whenever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.  Titles of Articles and Sections hereof are for convenience of reference only and are not to be taken into account in construing the provisions of this Plan.  In case any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if said illegal and invalid provision had never been inserted herein.

		
	7.9
	Amendment and Termination.  The Bank specifically reserves the right, in the sole and unfettered discretion of its Board, at any time, to amend, in whole or in part, any or all of the provisions of the Plan and to terminate the Plan in whole or in part; provided, however, that no such amendment or termination shall reduce or eliminate the rights of a Participant accrued hereunder to the date of such amendment or termination.  Provided further, that no such termination shall result in an impermissible acceleration of any amount deferred under this Plan that would violate the provisions of Internal Revenue Code Section 409A(a)(3) or Treasury Regulation Section 1.409A-3(j) or any successor regulations.  

		
	7.10
	Binding on Successors.  The Plan shall be binding upon and inure to the benefit of the Bank and its successors and assigns.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank.  Nothing in the Plan shall preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder.  The Bank agrees that it will make appropriate provision for the preservation of Participants' rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of the Bank, the term "Bank" shall refer to such other organization and the Plan shall continue in full force and effect.

14

		
	7.11
	Permissible Payment Acceleration.  In the event of an Internal Revenue Code Section 409A Plan failure that results in income inclusion to a Participant, payment of Participant’s benefits under this Plan shall be accelerated; provided that, the amount of the accelerated payment shall not exceed the amount required to be included in Participant’s income due to the Plan failure.

15

Article VIII
Amendment Effective March 26, 2015 Governing Deferrals of
Deferred Incentive Award Installments 

		
	8.1
	Definitions Applicable to Article VIII. Terms defined in this Article shall have the meanings set forth herein and shall apply solely to the deferrals of performance-based Deferred Incentive Award installments.  Other capitalized terms used in this Article shall have the meanings ascribed to them in the Plan.     

		
	8.2
	Implementation of Deferrals of Deferred Incentive Award Installments.  

		
	(a)
	Employee Deferrals – Existing Participants.  A Participant may elect to defer a specified percentage of each Deferred Incentive Award installment.  Each Participant shall be provided with a Deferred Incentive Installment Election Form (“Deferred Incentive Election Form”) at least 30 days prior to each calendar year.  Notwithstanding the foregoing, to the extent that Participant’s Deferred Incentive Award installments constitute “performance-based compensation” as defined by Treasury Regulation 1.409A-2(b) and the following requirements are met: (i) the Participant must be performing services for the Bank continuously from the beginning of the performance period (or date when the criteria are set) through the date of the election, and (ii) the election cannot apply to any portion of the award that is substantially certain to be paid on the date of the election, the Participant may execute and deliver a Deferred Incentive Election Form with respect to each Deferred Incentive Award installment after the beginning of the performance period for such installment, but no later than six months before the end of the performance period; all such elections shall be irrevocable for the performance period for which such deferral is elected.  In no event may a Deferred Incentive Election Form be executed and delivered as to any portion of such award that is substantially certain to be paid.  

		
	(b)
	Deferrals by New Participants.  If a Participant was not employed by the Bank on the first day of the performance period applicable to the Deferred Incentive Award installment, then for purposes of this Section the Participant is only eligible to defer a portion of his or her Deferred Incentive Award installments if he or she makes an initial deferral election within thirty (30) days after the date when he or she first becomes eligible to participate in a Deferred Incentive Award.  Furthermore, a deferral election that is subject to this subsection (b) shall only apply to the portion of the Participant's Deferred Incentive Award installment that is earned after the date when the Participant's election is submitted to the administrator of the Plan.  In all cases such elections shall be irrevocable for the performance period for which such deferral is elected.  

		
	(c)
	Accounts and Investment Vehicles.  To the extent that a Participant has made such deferral election(s) as described in (a) or (b) of Section 8.2 as to any Deferred Incentive Award installment payable to the Participant, each such installment that is subject to a deferral election shall (instead of being paid to the Participant in accordance with the terms of the applicable incentive plan): (i) be credited to the Participant’s Account under the Plan (specifically into a sub-account titled “Deferred Incentive Sub-Account”); (ii) shall be invested pursuant to the Participant’s Deferred Incentive Sub-Account investment election form; and (iii) shall receive earnings on the same basis as other amounts in the Participant’s Account receive earnings credit under this Plan in accordance with the terms of Section 4.1 and 4.2.  In the absence of a Participant Deferred Incentive Sub-Account investment election form, Sub-Account amounts shall be allocated to a notional money market investment.  Deferred Incentive Award installments which the Participant defers under this Section 8.2 shall not be included in 

16

the definition of Compensation under the Plan and such amounts shall not be subject to matching Bank Deferrals under the Plan.   
		
	8.3
	Deferred Incentive Sub-Account Distribution Elections. 

		
	(a)
	Initial Distribution Elections

Amounts in the Deferred Incentive Sub-Account shall be payable to the Participant in accordance with the Participant’s executed distribution election form (referred to as the “Sub-Account Distribution Form”) as described herein.  The balance in the Deferred Incentive Sub-Account shall be paid to the Participant either: (i) in a lump sum payment or (ii) annual installments over two to ten years, as elected by the Participant on his Sub-Account Distribution Form.  If installment payments are elected such payments shall be calculated and paid as to the Sub-Account balance in the manner described in Section 5.6 of the Plan.  
As elected by the Participant on his Sub-Account Distribution Form such distributions shall commence on: (i) a date following the Participant’s Separation from Service with the Bank, but no later than 90 days after the Participant’s Separation from Service or (ii) a date certain elected by the Participant.  
		
	(b)
	Subsequent Distribution Elections

A Participant’s Sub-Account Distribution Form shall be in writing and shall be subject to the following additional rules: any subsequent Sub-Account distribution election (i.e., any election following the Participant’s initial distribution election under Section 8.3(a) above) will become effective on the first January 1 which is at least 12 months after the date of such subsequent election.

In addition, with respect to any such subsequent distribution election which changes the timing of any payment, each payment to be made to the Participant shall be deferred by a date which is at least five years after the date on which such payment would have been made; provided that, for this purpose, a series of installment payments shall be treated as the entitlement to a single payment on the date of the first payment.  A subsequent distribution election which changes an existing distribution election from installment payments to a lump sum payment shall require that the date of such lump sum payment shall be a date that is at least five years from the date the initial installment payment would have been made.  Notwithstanding the foregoing or any provision in this Plan, a subsequent distribution election may not cause the impermissible acceleration of any payment, within the meaning of Internal Revenue Code Section 409A or its implementing regulations.   
		
	(c)
	Payment of Sub-Account Balance Following Participant’s Death.  If a Participant dies prior to receiving the balance credited to his Sub-Account, the balance in his Sub-Account shall be paid to his/her Beneficiary at the same time and in the same manner as if the Participant had continued to live. 

		
	(d)
	Unforeseeable Emergency Distribution.  The terms and limitations of Section 5.4 of the Plan regarding requests for distributions due to Unforeseeable Emergency shall apply as to the Participant’s Sub-Account balance as well.  No loans from the Sub-Account shall be permitted.  

		
	8.4
	Incorporation of Remaining Terms of the Supplemental Thrift Plan.  Except as modified through Sections 8.1 through 8.4 or unless stated elsewhere in the Plan, the remaining terms and 

17

conditions of this Plan shall apply to Article VIII including, without limitation, Articles VI and VII of the Plan.   

18Exhibit

Exhibit 10.1

CNO SERVICES, LLC
EXECUTIVE SEVERANCE PAY PLAN

Effective August 6, 2019

ARTICLE 1

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 shall be effective August 6, 2019, (the “Effective Date”) and will continue until Sponsor, acting in its sole discretion, elects to amend, modify, or terminate the Plan.

ARTICLE 2

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.

1

2.6“Code” shall mean 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.

2

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 date of 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

3

(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“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.

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

4

2.26“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 3

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 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”).

5

ARTICLE 4

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 who, upon such Employee’s Employment Termination Date, is enrolled in Employer’s Medical and Dental Insurance plans and, as a result is entitled to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), Employer will pay to the Terminated Employee an amount equal to the monthly premium for medical and dental coverage provided to the Terminated Employee as of his or her Employment Termination Date, multiplied by six (6), which the Terminated Employee may, but is not required to, use to pay for any elected COBRA coverage or other health care coverage. 
 
(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 

6

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.  The Benefit payable hereunder shall be reduced by any and all payments required to be made by Employer 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.

ARTICLE 5

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 

7

years, such Benefits shall be paid in the later calendar year; provided further that, if the 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.

ARTICLE 6

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.

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 

8

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 7

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.

ARTICLE 8

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.

ARTICLE 9

CLAIMS PROCEDURES

9.1General.  Subject to 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 

9

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 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 10

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

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 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 IRC Section 409A.  This Plan is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and will be interpreted in a manner intended to comply with Section 409A of the Code.  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 Section 409A of the Code, then the Employer will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or

11

provided to the Employee) until the date that is six months following the Employee’s Employment Termination Date with the Employer (or the earliest date as is permitted under Section 409A of the Code) 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 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 

12

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.

IN WITNESS WHEREOF, and as evidence of the adoption of the Plan effective August 6, 2019, CNO Services, LLC has caused the same to be executed this the sixth day of August, 2019.

	
		
	CNO SERVICES, LLC

	 
	 

	By:
	/s/ Yvonne K. Franzese

	 
	Yvonne K. Franzese

	 
	 

	Its: Chief Human Resources Officer

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}]]