Document:

Exhibit 10.3

 

FIRST
AMENDMENT

TO
THE

HORACE
MANN EDUCATORS CORPORATION

2010
COMPREHENSIVE EXECUTIVE COMPENSATION PLAN

 

(As
Amended and Restated Effective as of May 20, 2015)

 

THIS
FIRST AMENDMENT to the Horace Mann Educators Corporation 2010 Comprehensive Executive Compensation Plan, as amended and restated
effective as of May 20, 2015 (the “Plan”), is made and entered into by Horace Mann Educators Corporation (the
“Company”).

 

WHEREAS,
the Board of Directors of the Company deems it necessary and desirable to amend the Plan as set forth herein.

 

NOW,
THEREFORE, the Plan is hereby amended, effective as of March 7, 2017, as follows:

 

		1.	Section
                                         4.02 is amended to read as follows:

 

“4.02
Manner of Exercise of Committee Authority.

 

(a)
The Committee may act through subcommittees of the Board (including a subcommittee of one Board member if permitted by applicable
law), including for purposes of perfecting exemptions under Rule 16b-3 (in which case the members of the sub-committee shall qualify
as Non-Employee Directors), or qualifying Awards under Code Section 162(m) as performance-based compensation (in which case the
members of the sub-committee shall qualify as outside Directors under Code Section 162(m)). The express grant of any specific
power to the Committee, and the taking of any action by the Committee or a subcommittee, shall not be construed as limiting any
power or authority of the Committee.

 

(b)
To the fullest extent permitted under Section 157 and other applicable provisions of the Delaware General Corporation Law and
the Company’s bylaws, the Committee may delegate to an individual who is (or individuals who each are) an officer (as determined
pursuant to Section 16 of the Exchange Act), the power to approve Awards of Options, SARs, Restricted Stock or RSUs to persons
eligible to receive Awards under the Plan who are not (i) subject to Section 16 of the Exchange Act or (ii) at the time of such
approval, “covered employees” under Section 162(m) of the Code. Any action by an officer or officers pursuant to this
Section 4.02(b) shall be subject to the following limitations: (A) without the express approval of the Committee, Awards made
by such officer or officers not relate to more than 10,000 shares of Stock

 

     

     

    

 

(determined
pursuant to the share counting rules set forth in Section 5.02 of the Plan) in any calendar year, and (B) any such Award
must be made subject to the terms (including vesting or other lapse of restrictions) set forth in the form of Award Agreement
that was then most recently approved by the Committee for purposes of making such Awards. Any delegation pursuant to this Section
4.02(b) may be revoked at any time.

 

(c)
Except to the extent prohibited by applicable law, the Committee may delegate to one or more individuals the day-to-day administration
of the Plan and any of the functions assigned to the Committee under the Plan that relate to the day-to-day administration of
the Plan. Such delegation may be revoked at any time.”

 

		2.	Section
                                         7.01 is amended to read as follows:

 

“7.01
General.

 

“(a)  General
Terms. Awards may be granted on the terms and conditions set forth in this Article VII. In addition, the Committee may impose
on any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 12.07), such additional terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee shall determine, including terms requiring forfeiture
of Awards in the event of termination of employment or service by the Participant and terms permitting a Participant to make elections
relating to his or her Award. The Committee shall retain full power and discretion with respect to any term or condition of an
Award that is not mandatory under the Plan. The Committee shall require the payment of lawful consideration for an Award to the
extent necessary to satisfy the requirements of the Delaware General Corporation Law, and may otherwise require payment of consideration
for an Award except as limited by the Plan.

 

(b)  Minimum
Vesting. Except as otherwise set forth in this Section 7.01(b), no portion of any grant of Options, Stock Appreciation Rights,
Restricted Stock or Restricted Stock Units (including any such Award that is otherwise intended to constitute a Performance Award)
shall, on the date any such Award is granted, provide that such Award shall become vested (i.e., nonforfeitable) or free from
restriction, as applicable, sooner than the first anniversary of the date such Award is granted; provided, that an Award may provide
for earlier vesting or lapse of restrictions (i) in the event of the death or disability of the applicable Participant, (ii) if
such Award is granted pursuant to Section 10.01 hereof and the award being replaced was previously subject to vesting or a lapse
of restrictions that would have

 

     

     

    

 

occurred
within one year of the date the substitute Award is granted, (iii) Awards granted prior to March 7, 2017 shall not be subject
to the vesting minimums described in this Section 7.01(b). In addition to the exceptions set forth in clauses (i), (ii) and (iii)
above, the Committee shall have the authority to grant Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock
Units (including any such Award that is otherwise intended to constitute a Performance Award) that become vested (i.e., nonforfeitable)
or free from restrictions, as applicable, prior to the first anniversary of the grant date thereof, so long as such Awards do
not represent more than five percent (5%) of the aggregate maximum number of shares of Stock available for Awards under this Plan
(as set forth in Section 5.01). For purposes of determining the number of shares of Stock that remain available for delivery under
the five percent (5%) limit set forth in the preceding sentence, the counting rules set forth in Section 5.02 of this Plan shall
apply.”

 

		3.	The
                                         Plan is further amended to make any conforming changes necessary to effectuate the foregoing
                                         amendments.

 

Dated: March
7, 2017

 

	 	HORACE MANN EDUCATORS CORPORATION
	 	 	 
	 	By:	/S/ John P. McCarthy
	 	 	 
	 	Its:	CHROExhibit 10.3(a)

 

HORACE MANN EDUCATORS CORPORATION

2010 Comprehensive
Executive Compensation Plan

(as amended and restated
effective May 20, 2015)

(Section 16 Officer)

 

Non-Qualified Stock Option Agreement
- Employee Grantee

 

This Non-Qualified
Stock Option Agreement, consisting of this designations page and the Non-Qualified Stock Option Terms and Conditions attached hereto
or delivered concurrently herewith, (the “Agreement”) evidences the grant by HORACE MANN EDUCATORS CORPORATION, a Delaware
corporation (the “Company”), to you of a non-qualified stock option (the “Option”) to purchase shares of
Common Stock, par value $0.001 per share if the Company under the 2010 Comprehensive Executive Compensation Plan (as amended and
restated effective May 20, 2015 and as further amended) (the “Plan”).

 

Designations:

 

	Employee Grantee:	«First_Name» «Last_Name»
	 	 
	Grant Date:	March 7, 2017

 

Number of shares of Stock for which the Option is granted:
«SO_text»

 

	Exercise Price:	$ 41.95 per share 
	 	 
	Expiration Date:	March 7, 2027 provided you remain continuously employed by the Company, except as otherwise provided herein.

 

Vesting Schedule:(Numbers shall be rounded up or down
to the nearest whole share.)

 

	The Option shall vest and become

nonforfeitable on the following Vesting

Dates:	%age

becoming

vested	Cumulative

%age vested
	Prior to first anniversary of Grant Date	0%	 	0%	 
	First anniversary of Grant Date	25%	 	25%	 
	Second anniversary of Grant Date	25%	 	50%	 
	Third anniversary of Grant Date	25%	 	75%	 
	Fourth anniversary of Grant Date	25%	 	100%	 

 

Except as otherwise provided in this Agreement,
if you have a termination of service prior to the Vesting Date for any reason, the unvested portion of the Option shall be forfeited
immediately.

 

	 	HORACE MANN EDUCATORS CORPORATION
	 	 	 
	Date:  April 3, 2017	By:	/s/ Marita Zuraitis
	 	 	Marita Zuraitis
	 	 	President and Chief Executive Officer

 

Attachment: Non-Qualified Stock
Option Terms and Conditions. Effective March 7, 2017

 

     

     

    

 

HORACE MANN EDUCATORS CORPORATION

2010 Comprehensive
Executive Compensation Plan

(as amended and restated effective May
20, 2015)

 

NON-QUALIFIED STOCK OPTION 

(Section 16 Officer)

TERMS AND CONDITIONS

 

The following Terms
and Conditions apply to the Option granted to you as an employee grantee by the Company under the Plan as specified in the Non-Qualified
Stock Option Agreement of which these Terms and Conditions form a part. Certain specific terms of the Option, including the number
of shares purchasable, the Grant Date, the vesting schedule, the Expiration Date, and Exercise Price, are set forth on the designations
page of this Agreement.

 

1.   General.
By accepting the grant of the Option, you 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. If there is any conflict between the provisions of this Agreement and mandatory provisions
of the Plan, the provisions of the Plan govern.

 

The Option is a non-qualified
option and is NOT an incentive stock option as defined under Section 422 of the Internal Revenue Code of 1986, as amended.

 

2.   Right to Exercise
Option. You may exercise the Option only after the time and to the extent the Option has become vested and exercisable
and prior to the Expiration Date or other termination or forfeiture of the Option.

 

3.   Method of Exercise.
To exercise the Option, you must (a) give written notice to the Vice President, HR Finance or other designee of the Company, which
notice shall specifically refer to this Agreement, state the number of shares of Stock as to which the Option is being exercised,
state whether you wish the shares of Stock to be in your name or jointly in the names of you and your spouse (and if so, the spouse’s
name), and be signed by you, and (b) pay in full to the Company the Exercise Price of the Option for the number of Shares being
purchased either (i) in cash (including by check), payable in United States dollars, (ii), by delivery of a number of whole Shares
already owned by you having a fair market value, determined as of the date the Option is exercised, equal to (but not in excess
of) all or the part of the aggregate Exercise Price being paid in this way, (iii) by a net exercise or other cashless exercise
technique permitted by the Committee, or (iv) in any other manner then permitted by the Committee. The value of any fractional
share shall be paid in cash. Once you give notice of exercise, such notice may not be revoked. When you exercise the Option or
part thereof, the Company will transfer shares of Stock (or make a non-certificated credit) to your brokerage account at a designated
securities brokerage firm or otherwise deliver shares of Stock to you. Neither you nor your Beneficiary shall have at any time
any rights with respect to shares of Stock covered by the Option prior to the valid exercise and full payment for the shares, and
no adjustment shall be made for dividends or

 

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other rights for which the record date
is prior to such valid exercise and payment. To the extent you excise any portion of the Option and later dispose of the shares
of Stock acquired in connection with such exercise prior to the later of (A) the second anniversary of the Grant Date, and (B)
the first anniversary of the date of exercise, you shall promptly notify the Company of such disposition.

 

		4.	Termination of Service or Change in Control Prior to the Expiration Date of the Option.

 

(a)  Termination
of Service in General. Except as otherwise provided in this paragraph 4, if you have a termination of service for any reason
other than Cause (as defined in Section 11.03 of the Plan) prior to the Expiration Date, the Option (i) to the extent then vested
and outstanding, shall remain outstanding and exercisable for three months following such termination of service (or, if earlier,
until the Expiration Date), and (ii) to the extent then unvested, shall immediately terminate and shall not thereafter be exercisable,
and shall be forfeited. To the extent any portion of the Option remains unexercised following the period described in clause (i)
of the preceding sentence, such portion of the Option shall immediately terminate and shall not thereafter be exercisable, and
shall be forfeited. If you have a termination of service for Cause (as defined in Section 11.03 of the Plan) prior to the Expiration
Date, the entire Option, whether vested or unvested, shall immediately terminate and shall not thereafter be exercisable, and shall
be forfeited.

 

(b)  Death.
In the event you terminate service due to death prior to the Expiration Date, the Option, to the extent then outstanding, will
immediately vest and become nonforfeitable (to the extent not already vested) and shall be immediately exercisable in full by your
Beneficiary. The Option will remain exercisable until the earlier of the Expiration Date of the Option shown on the designations
page or the second anniversary of your death. To the extent any portion of the Option remains unexercised following the period
described in the preceding sentence, such portion of the shall immediately terminate and shall not thereafter be exercisable, and
shall be forfeited.

 

(c)  Disability.
In the event you terminate service due to Disability (as defined below), the Option, to the extent then outstanding, will immediately
vest and become nonforfeitable (to the extent not already vested) and shall be immediately exercisable in full by you. The Option
and will remain exercisable until the Expiration Date. To the extent any portion of the Option remains unexercised following the
Expiration Date, such portion of the shall immediately terminate and shall not thereafter be exercisable, and shall be forfeited.

 

(d)  Retirement.
In the event you terminate service due to Retirement (as defined below), the Option, to the extent then vested and outstanding
or becoming vested as provided below, will remain exercisable (unless sooner exercised or terminated) until the Expiration Date.
To the extent any portion of the Option remains unexercised following the Expiration Date, such portion of the shall immediately
terminate and shall not thereafter be exercisable, and shall be forfeited. Upon your termination of service due to Retirement one
year or more after the Option was granted, a portion of the unvested Option shall become vested immediately, such portion determined
by (a) multiplying the number of Options granted (as shown on the designations page) by a fraction, the numerator of which is the
number of months elapsed since the Grant Date (for example, if the Grant Date is March 15, one month elapses as of the

 

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14th of each subsequent
month) and the denominator of which is 48, and (b) subtracting the number of Options that became vested prior to your Retirement.
Upon your termination of service due to Retirement less than one year after the Option was granted, the Option shall be forfeited.

 

(e)  Change in
Control. If a Change in Control occurs prior to the Expiration Date of the Option and prior to or coincident with the date
of your termination of service, then unless the Committee provides otherwise in the exercise of its discretion, the following terms
shall apply:

 

(i) If
the acquiring company assumes the Option (as determined in the discretion of the Committee), and if you are involuntarily terminated
by the applicable employer other than for Cause, death or Disability on or prior to the first anniversary of the Change in Control,
then to the extent outstanding, the Option will vest, become nonforfeitable, and remain exercisable (unless sooner exercised) until
the Expiration Date; or

 

(ii) If
the acquiring company does not assume the Option, and the Option remain outstanding following the Change in Control, then upon
the Change in Control (whether you are terminated or not), to the extent outstanding, the Option will vest and become nonforfeitable
(to the extent not previously vested) and become immediately exercisable in full and remain exercisable (unless sooner exercised)
until the Expiration Date.

 

(f)  Certain Definitions.
The following definitions apply for purposes of this Agreement:

 

(i)  “Disability”
means a disability entitling you to long-term disability benefits under the Company’s long-term disability policy applicable
to you (or which would be applicable if you were covered by the policy) as in effect at the date of your termination of service.

 

(ii)  “Retirement”
means your termination of service with the Company and its subsidiaries (other than a termination by death or by the Company for
Cause) after attaining the earlier of (A) age 65 with 5 years of service or (B) age 55 with 10 years of service.

 

5.  Your Representations
and Warranties. You acknowledges receipt of the Plan and a form of S-8 prospectus in connection with the Option.
As a condition to the exercise of the Option, the Company may require you 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.

 

6.  Nontransferability
and Other Limitations.

 

(a) Nontransferability. You
may not transfer the Option or any rights thereunder to any third party other than by will or the laws of descent
and distribution, and, during your lifetime, only you or your duly appointed guardian or legal representative may exercise
the Option.

 

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(b)  Beneficiary
Designation. Notwithstanding the foregoing, you may designate a Beneficiary to exercise the Option after your death, and you
may transfer any portion of the Option that is not an incentive stock option to a Permitted Transferee during your lifetime, provided
such transfer is not for value, subject to the applicable terms and conditions set forth in Section 12.03 of the Plan.

 

(c)  Potential
Forfeiture. Additional events could result in forfeiture of loss of the Option. In addition, all rights granted and/or shares
of Stock delivered under this Agreement are subject to recoupment under the Company’s recoupment policy as in effect from
time to time.

 

(d)  12-month
Holding Requirement for Section 16 Officers. If on the date of exercise you are a Section 16 Officer, then for a period of
at least 12 months after the date of exercise, you shall not sell, transfer, pledge, alienate or otherwise encumber the net shares
of Stock (or any rights thereunder) received after payment of the Exercise Price and any required Stock withholding, other than
by will or the laws of descent and distribution.

 

(e)  Shares
Subject to Insider Trading and Recoupment Policies. Sales of shares of Stock will be subject to any Company policy regulating
trading by employees. All rights granted and/or shares of Stock delivered under this Agreement are subject to recoupment under
the Company’s recoupment policy as in effect from time to time.

 

		7.	Miscellaneous.

 

(a) Binding Agreement;
Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the
parties. This Agreement and the Plan constitute the entire agreement between the parties with respect to the Option, and
supersede any prior agreements or understandings with respect to the Option. No amendment or alteration of this Agreement
which may impose any additional obligation upon the Company shall be valid unless expressed in a written instrument duly
executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which
materially impairs your rights with respect to the Option shall be valid unless expressed in a written instrument executed by
you. 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 Option for you shall be deemed not to materially impair
your rights with respect to the Option.

 

(b) Adjustments; No Dividend
Equivalents. The number and/or type of shares of Stock and or the Option Exercise Price shall be appropriately adjusted in
order to prevent dilution or enlargement of your rights or economic benefits with respect to the Option or to reflect any changes
in the number or type of outstanding shares of Stock resulting from an event described in Section 12.05 of the Plan, as the Committee
shall determine. Dividend Equivalents shall not be credited to the Option.

 

(c) No
Promise of Continued Employment. The Option and the granting thereof shall not constitute or be evidence of any agreement or
understanding, express or implied, that you have a right to continue as an officer or employee of the Company for any period of
time, or at any particular rate of compensation.

 

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(d) 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.

 

(e) Mandatory
Tax Withholding. Unless otherwise determined by the Committee, if and at the time the Option becomes subject to tax, the Company
will withhold from any shares deliverable in settlement of the Option a 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 to the appropriate taxing authorities. You 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 Option on exercise or otherwise. You 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 Option
upon exercise or otherwise. The Company makes to representations and gives no advice on the taxation of the Option.

 

(f) 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, HR Finance, and any notice to you shall be addressed to you at your address as then appearing in the
records of the Company.

 

(g) No
Shareholder Rights. You and any Beneficiary or Permitted Transferee shall not have any rights with respect to Stock (including
voting rights) covered by this Agreement prior to the exercise of the Option and delivery of the shares of Stock in accordance
with such exercise.

 

Effective March 7, 2017

 

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