Document:

RPAI-2014-3.31-EX 10.1

Exhibit 10.1

Execution Version

FIRST AMENDMENT TO  THIRD AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of February 21, 2014, is among RETAIL PROPERTIES OF AMERICA, INC., a corporation organized under the laws of the State of Maryland (the “Borrower”), each of the Lenders party hereto and KEYBANK NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”).

WHEREAS, the Borrower, certain banks, financial institutions and other entities party thereto (the “Lenders”), the Administrative Agent and certain other parties have entered into that certain Third Amended and Restated Credit Agreement dated as of May 13, 2013 (as amended and as in effect immediately prior to the effectiveness of this Amendment, the “Credit Agreement”); and 

WHEREAS, the Borrower, the Lenders and the Administrative Agent desire to amend certain provisions of the Credit Agreement on the terms and conditions contained herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows:

Section 1.  Specific Amendments to Credit Agreement.  Upon the effectiveness of this Amendment, the parties hereto agree that the Credit Agreement shall be amended as follows:

(a)The Credit Agreement is amended by restating the definitions of “Qualifying Unencumbered Pool Property” and “Unencumbered Pool Property” contained in Article I thereof in their entirety as follows:

“Qualifying Unencumbered Pool Property” means any Project which, as of any date of determination, (a) is located in the United States; (b) is wholly owned by the Borrower or a Wholly-Owned Subsidiary that, if prior to the Investment Grade Guarantor Release Date, is a Subsidiary Guarantor, in fee simple or under the terms of a Financeable Ground Lease; (c) is free of all structural defects or major architectural deficiencies, title defects, environmental conditions or other adverse matters except for defects, deficiencies, conditions or other matters individually or collectively which are not material to the profitable operation of such Project; and (d) is not, nor is any direct or indirect interest of the Borrower or any Subsidiary therein, subject to any Lien other than Permitted Liens set forth in clauses (i) through (iv) of Section 6.16 or to any Negative Pledge (other than Negative Pledges permitted under clause (ii) of Section 6.25). No asset shall be deemed to be unencumbered unless both such asset and all Capital Stock of the Subsidiary owning such asset is unencumbered. Nothing in this Agreement shall prohibit a Subsidiary from having other Unsecured Indebtedness or unsecured Guarantee Obligations and the existence of such Unsecured Indebtedness or unsecured Guarantee Obligations shall not prevent any Project owned by such Subsidiary from qualifying as a Qualifying Unencumbered Pool Property.

“Unencumbered Pool Property” means, as of any date, any Project which (i) is a Qualifying Unencumbered Pool Property as of such date and (ii) if prior to the Investment Grade Guarantor Release Date, is owned by a Subsidiary Guarantor (so long as no material adverse effect on the validity or enforceability of the Subsidiary Guaranty with respect to such Subsidiary Guarantor has occurred).

                    

(b)The Credit Agreement is further amended by adding the following definitions of “Guarantor Release Notice” and “Investment Grade Guarantor Release Date” to Article I thereof in the appropriate alphabetical location:

“Guarantor Release Notice” means a written notice delivered by the Borrower to the Administrative Agent and the Lenders at any time after the Borrower has received an Investment Grade Rating from either S&P or Moody’s specifying (a) the date (the “Investment Grade Guarantor Release Date”) on which it elects to have the Subsidiary Guarantors released as parties to the Subsidiary Guaranty pursuant to Section 6.26(c) and (b) each Subsidiary Guarantor, if any, that is required to remain a party to the Subsidiary Guaranty under Section 6.26(a)(ii) as of the Investment Grade Guarantor Release Date.

“Investment Grade Guarantor Release Date” is defined in the definition of “Guarantor Release Notice”.

(c)The Credit Agreement is further amended by restating Section 6.26. thereof in its entirety as follows:

6.26.    Subsidiary Guaranty. 

(a)    On the Agreement Effective Date, Borrower shall cause each of its existing Subsidiaries listed on Schedule 2, which includes all current subsidiaries of Borrower other than Excluded Subsidiaries, to execute and deliver to the Administrative Agent the Subsidiary Guaranty.  The Borrower shall cause each Subsidiary which satisfies any of the following applicable conditions to execute and deliver to the Administrative Agent a joinder to the Subsidiary Guaranty in the form of Exhibit A attached to the form of Subsidiary Guaranty within 10 Business Days of such Subsidiary first satisfying such condition: (i) during the period from the Agreement Effective Date until the Investment Grade Guarantor Release Date, each Subsidiary which is hereafter acquired or formed (other than Excluded Subsidiaries) and (ii) on and after the Investment Grade Guarantor Release Date, each Subsidiary (other than a Subsidiary of Borrower which (A) owns a single Project encumbered by Liens securing Secured Indebtedness permitted to exist hereunder or (B) is not a Wholly-Owned Subsidiary of Borrower) that either (x) incurs, acquires or suffers to exist Guarantee Obligations, or otherwise becomes obligated with respect to, any Indebtedness of another Person or (y) incurs, acquires or suffers to exist any Recourse Indebtedness, provided, that, the Borrower shall not be obligated to cause such Subsidiary to execute and deliver a joinder to the Subsidiary Guaranty as a result of the immediately preceding clause (i) if the Borrower reasonably and in good faith expects or intends such Subsidiary to become an Excluded Subsidiary after the date of such acquisition or formation.  If a Subsidiary that is initially not required to join in a Subsidiary Guaranty because it was an Excluded Subsidiary is later not precluded from doing so, then Borrower shall cause such Subsidiary to join in the Subsidiary Guaranty. At the time any Subsidiary becomes a Subsidiary Guarantor, the Borrower shall be deemed to make to the Administrative Agent and the Lenders all of the representations and warranties (subject in all cases to all materiality qualifiers and other exceptions in such representations and warranties) contained in the Agreement and the other Loan Documents to the extent they apply to such Subsidiary Guarantor.

(b)    From time to time, the Borrower may request, upon not less than two (2) Business Days prior written notice to the Administrative Agent, that a Subsidiary Guarantor 

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be released from the Subsidiary Guaranty, and upon receipt of such request the Administrative Agent shall release, such Subsidiary Guarantor from the Subsidiary Guaranty so long as: (i) on and after the Investment Grade Guarantor Release Date, such Subsidiary Guarantor is not, or immediately upon its release will not be, required to be a party to the Subsidiary Guaranty under the immediately preceding subsection (a)(ii), (ii) no Unmatured Default or Default will exist immediately following such release; and (iii) the representations and warranties (subject in all cases to all materiality qualifiers and other exceptions in such representations and warranties) contained in Article V shall be true and correct as of the date of such release and immediately after giving effect to such release, except to the extent any such representation or warranty is stated to relate solely to an earlier date (in which case such representation or warranty shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  Delivery by the Borrower to the Administrative Agent of any such request shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (both as of the date of the giving of such request and as of the date of the effectiveness of such request) are true and correct with respect to such request.

(c)    On the Investment Grade Guarantor Release Date, each Subsidiary Guarantor (other than those Subsidiary Guarantors identified in the Guarantor Release Notice) shall automatically be released as a Subsidiary Guarantor so long as (i) no Unmatured Default or Default will exist immediately following such release; and (ii) the representations and warranties (subject in all cases to all materiality qualifiers and other exceptions in such representations and warranties) contained in Article V shall be true and correct as of the date of such release and immediately after giving effect to such release, except to the extent any such representation or warranty is stated to relate solely to an earlier date (in which case such representation or warranty shall have been true and correct on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.  The delivery of the Guarantor Release Notice shall constitute a representation by the Borrower that the matters set forth in the preceding sentence (as of the Investment Grade Guarantor Release Date) are true and correct.  The Administrative Agent shall execute such documents and instruments as the Borrower may reasonably request, and at the Borrower’s sole cost and expense, to evidence such release.

(d)The Credit Agreement is further amended by restating clause (B) of Section 7.5 thereof in its entirety as follows:

(B) before the Investment Grade Guarantor Release Date, any other Indebtedness in excess of $150,000,000 in the aggregate

Section 2.  Conditions Precedent.  The effectiveness of this Amendment is subject to receipt by the Administrative Agent of each of the following in form and substance satisfactory to the Administrative Agent:

(a)    a counterpart of this Amendment duly executed by the Borrower, the Administrative Agent and each of the Required Lenders; and

(b)    such other documents, agreements and instruments as the Administrative Agent, or any Lender through the Administrative Agent, may reasonably request. 

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Section 3.  Representations.  The Borrower represents and warrants to the Administrative Agent and the Lenders that:

(a)    Authorization.  The Borrower has the corporate power and authority and legal right to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement (as amended by this Amendment). The execution and delivery by the Borrower of this Amendment and the performance of its obligations hereunder and under the Credit Agreement (as amended by this Amendment) have been duly authorized by proper corporate proceedings. This Amendment and the Credit Agreement (as amended by this Amendment) constitute legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

(b)    No Conflict; Government Consent.  Neither the execution and delivery by the Borrower of this Amendment, nor the consummation of the transactions therein contemplated, nor compliance with the provisions thereof and of the Credit Agreement (as amended by this Amendment) will violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Borrower or the Borrower’s articles of incorporation or by-laws, or the provisions of any indenture, instrument or agreement to which the Borrower is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, except where such violation, conflict or default would not have a Material Adverse Effect, or result in the creation or imposition of any Lien (other than Permitted Liens set forth in Section 6.16 of the Credit Agreement) in, of or on the Property of the Borrower pursuant to the terms of any such indenture, instrument or agreement. No order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, any governmental or public body or authority, or any subdivision thereof, is required to authorize, or is required for the legality, validity, binding effect or enforceability of, any of this Amendment and the Credit Agreement (as amended by this Amendment).

(c)    No Default.  No Default or Unmatured Default has occurred and is continuing as of the date hereof nor will exist immediately after giving effect to this Amendment.

Section 4.  Reaffirmation of Representations.  The Borrower hereby repeats and reaffirms all representations and warranties contained in Article V of the Credit Agreement as of the date hereof and immediately after giving effect to this Amendment, except to the extent any such representation or warranty is stated to relate solely to an earlier date (in which case such representation or warranty is repeated and reaffirmed as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents.

Section 5.  Certain References.  Each reference to the Credit Agreement in any of the Loan Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment.  This Amendment is a Loan Document.

Section 6.  Costs and Expenses.  The Borrower shall reimburse the Administrative Agent for any costs, internal charges and out-of-pocket expenses (including, without limitation, all reasonable fees for consultants and fees and reasonable expenses for attorneys for the Administrative Agent, which attorneys may be employees of the Administrative Agent), paid or incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and the other agreements and documents executed and delivered in connection herewith.

Section 7.  Benefits.  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

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Section 8.  GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

Section 9.  Effect; Ratification.  Except as expressly herein amended, the terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect.  The amendments contained herein shall be deemed to have prospective application only.  The Credit Agreement is hereby ratified and confirmed in all respects.  Nothing in this Amendment shall limit, impair or constitute a waiver of the rights, powers or remedies available to the Administrative Agent or the Lenders under the Credit Agreement or any other Loan Document.  

Section 10.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns.

Section 11.  Definitions.  All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Credit Agreement.

[Signatures on Next Page]

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Third Amended and Restated Credit Agreement to be executed as of the date first above written.

RETAIL PROPERTIES OF AMERICA, INC.

By: /s/ Angela M. Aman
Name: Angela M. Aman
Title:   Executive Vice President, Chief Financial
Officer and Treasurer

[Signatures Continued on Next Page]

S-1

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

KEYBANK NATIONAL ASSOCIATION, individually and as Administrative Agent

By: /s/ Kristin Centracchio    
     Name: Kristin Centracchio
     Title:   Vice President

S-2

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

WELLS FARGO BANK, NATIONAL ASSOCIATION

By: /s/ Scott Solis    
     Name:  Scott Solis
     Title:    Senior Vice President

S-3

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

BANK OF AMERICA, N.A.

By: /s/ Asad Rafiq
     Name: Asad Rafiq
     Title:   Vice President

S-4

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

CITIBANK, N.A.

By: /s/ Michael Chlopak    
     Name: Michael Chlopak
     Title:   Vice President

S-5

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

DEUTSCHE BANK AG NEW YORK BRANCH

By: /s/ J.T. Johnston Coe
     Name: J.T. Johnston Coe
     Title:   Managing Director

By: /s/ Perry Forman
     Name: Perry Forman
     Title:   Director

S-6

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

PNC BANK, NATIONAL ASSOCIATION

By: /s/ Joel Dalson
     Name: Joel Dalson
     Title:   Senior Vice President

S-7

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

REGIONS BANK

By: /s/ Kevin W. Murry
     Name: Kevin W. Murry
     Title:   Director

S-8

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

THE BANK OF NOVA SCOTIA

By: /s/ Chad Hale
     Name: Chad Hale
     Title:   Director & Execution Head REGAL

S-9

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

U.S. BANK, NATIONAL ASSOCIATION

By: /s/ Curt M. Steiner
     Name: Curt M. Steiner
     Title:   Senior Vice President

S-10

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

CAPITAL ONE, N.A.

By: /s/ Frederick H. Denecke
     Name: Frederick H. Denecke
     Title:   Senior Vice President

S-11

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

FIFTH THIRD BANK, 
an Ohio Banking Corporation

By: /s/ Michael Glandt
     Name: Michael Glandt
     Title:   Vice President

S-12

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

UNION BANK, N.A.

By: /s/ Gregory A. Conner
     Name: Gregory A. Conner
     Title:   Vice President

S-13

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

BRANCH BANKING AND TRUST COMPANY

By: /s/ Ahaz Armstrong
     Name: Ahaz Armstrong
     Title:   Assistant Vice President

S-14

[Signature Page to First Amendment to Third Amended and Restated Credit Agreement
with Retail Properties of America, Inc.]

JPMORGAN CHASE BANK, N.A.

By: /s/ Gian Longo
     Name: Gian Longo
     Title:   Authorized Officer

S-15Exhibit 10.1 - 03.31.2014 stock option

Exhibit 10.1

CNO FINANCIAL GROUP, INC.

Re:    Grant of Non-Qualified Stock Option
CNO Financial Group, Inc., a Delaware corporation (the "Company"), is pleased to advise you that, pursuant to the Company's Amended and Restated Long-Term Incentive Plan (the "Plan"), the Company has granted to you an option (the "Option") to acquire shares of the Company’s common stock, par value $.01 per share (“Common Stock”), as set forth below, subject to the terms and conditions of the Plan and the terms and conditions set forth herein.
The Option is not intended to be an "incentive stock option" within the meaning of Section 422 of the Code.  Any capitalized terms used herein and not defined herein have the meaning set forth in the Plan.
1.Option.

(a)Term.   Subject to the terms and conditions set forth herein, the Company hereby grants you (or such other persons as permitted by paragraph 5) an Option to purchase the number of shares of Common Stock at the exercise price per Option Share (the “Option Price”) set forth on the last page of this agreement, payable upon exercise as set forth in paragraph 1(b) below. The Option shall expire at the close of business on the date indicated on the last page of this agreement (the “Expiration Date”), which is the seventh anniversary of the date of grant (the "Grant Date"), subject to earlier expiration as provided in paragraph 2(c) below should your employment with the Company or a Subsidiary terminate.  The Option Price and the number and kind of shares of Common Stock or other property for which the Option may be exercised shall be subject to adjustment as provided in the Plan.

(b)Payment of Option Cost.  Subject to paragraph 2 below, the Option may be exercised in whole or in part upon payment of an amount (the "Option Cost") equal to the product of (i) the Option Price and (ii) the number of Option Shares to be acquired.  Payment of the Option Cost shall be made by one or more of the following means:

(i)in cash (including check, bank draft, money order or wire transfer of immediately available funds);

(ii)if permitted by the Company on the date of exercise, by delivery of outstanding shares of Common Stock owned by you (and not subject to any substantial risk of forfeiture) for at least six months with a Fair Market Value on the date of exercise equal to the Option Cost;

(iii)by means of any cashless exercise procedures approved by the Committee and as may be in effect on the date of exercise; or

(iv)by any combination of the foregoing.

2.Exercisability/Vesting and Expiration.

(a)Normal Vesting.  The Option granted hereunder may be exercised only to the extent it has become vested, as indicated by the vesting dates set forth on the last page of this agreement.

(b)Normal Expiration.  In no event shall any part of the Option be exercisable after the Expiration Date.

(c)Effect on Vesting and Expiration of Employment Termination.  Except as expressly set forth in any written agreement between you and the Company or a Subsidiary (whether entered into prior to or after the date of this agreement) and notwithstanding paragraphs 2(a) and (b) above, the following special vesting and expiration rules shall apply if your employment with the Company terminates prior to the Option becoming fully vested and/or prior to the Expiration Date:

(i)Termination Other than for Cause and Certain Other Events.  If your employment is terminated by you, or by the Company or a Subsidiary for any reason other than Cause, Retirement, death or Disability, (A) any portion of the Option that was exercisable on the date of such termination shall remain exercisable until the ninetieth (90th) day immediately following such termination, but in no event after the Expiration Date of the Option, and such portion of the Option shall expire and be forfeited on the ninetieth (90th) day immediately following such termination and (B) any portion of the Option that was not exercisable on the date of such termination shall be forfeited immediately upon such termination.

(ii)Termination for Cause.  If your employment is terminated by the Company or a Subsidiary for Cause, any portion of the Option that had not been exercised prior to the date of such termination shall be forfeited immediately upon such termination.

(iii)Termination Upon Retirement.    If you elect to terminate your employment with the Company and you satisfy the definition of Retirement set forth in the Plan, then any portion of the Option which remains outstanding at the date of your Retirement shall continue to vest on the dates included in this agreement and you may exercise the Option until the earlier of (x) the Expiration Date or (y) five years after the date of your Retirement.

(iv)Termination Due to Death or Disability.  If your employment is terminated by the Company or a Subsidiary due to your death or Disability, (A) any portion of the Option that was exercisable on the date of such termination shall remain exercisable until twelve (12) months after such termination, but in no event after the Expiration Date of the Option, and such portion of the Option shall expire and be forfeited on the first anniversary of the date of such termination, whether or not then exercisable and (B) any portion of the Option that was not exercisable on the date of such termination shall be forfeited immediately upon such termination.

(v)Change in Control.  In the event that your employment is terminated by the Company without Cause or by you for Good Reason within 24 months after a Change in Control has occurred, the Option shall become vested and fully exercisable as to all of the Option Shares.

3.Procedure for Exercise.  Except as expressly set forth in any written agreement between you and the Company or a Subsidiary (whether entered into prior to or after the date of this agreement), you may exercise all or any portion of the Option, to the extent it has vested and is exercisable, at any time and from time to time prior to the earlier of the Expiration Date or the date specified in paragraph  2 above, by logging onto the Company’s equity administration website and selecting the “Exercise Options” menu option, indicating the specific option grant to be exercised and answering the on-screen prompts to complete the exercise, together with payment of the Option Cost in accordance with the provisions of paragraph 1(b) above. The Option may not be exercised for a fraction of an Option Share.

4.Withholding of Taxes.

(a)Participant Election.  If permitted by the Company, you may elect to deliver shares of Common Stock (or have the Company withhold Option Shares acquired upon exercise of the Option) to satisfy, in whole or in part, the amount the Company is required to withhold for taxes in connection with the exercise of the Option.  Such election must be made on or before the date the amount of tax to be withheld is determined.  Once made, the election shall be irrevocable.  The Fair Market Value of the shares to be withheld or delivered will be the Fair Market Value as of the date the amount of tax to be withheld is determined.

(b)Company Requirement.  The Company, to the extent permitted or required by law, shall have the right to deduct from any payment of any kind (including salary or bonus) otherwise due to you, an amount equal to any federal, state or local taxes of any kind required by law to be withheld with respect to the delivery of Option Shares under this agreement.

5.Transferability of Option.  You may transfer the Option granted hereunder only by will or the laws of descent and distribution.  Unless the context requires otherwise, references herein to you are deemed to include any permitted transferee under this paragraph 5.  The Option may be exercised only by you; by the executor or administrator of your estate; by any person to whom the Option is transferred by will or the laws of descent and distribution; or by the guardian or representative of any of the foregoing.

6.Conformity with Plan.  This agreement and the Option are intended to conform in all respects with, and are subject to all applicable provisions of, the Plan (which is incorporated herein by reference).  Inconsistencies between this agreement and the Plan shall be resolved in accordance with the terms of the Plan.  By accepting this stock option award, you acknowledge your receipt of this agreement and the Plan and agree to be bound by all of the terms of this agreement and the Plan.

7.Rights of Participants.  Nothing in this agreement shall interfere with or limit in any way the right of the Company to terminate your employment or other performance of services at any time, nor confer upon you any right to continue in the employ or as a director or 

officer of, or in the performance of other services for, the Company or a Subsidiary for any period of time, or to continue your present (or any other) rate of compensation or level of responsibility.  Nothing in this agreement shall confer upon you any right to be selected again as a Plan participant, and nothing in the Plan or this agreement shall provide for any adjustment to the number of Option Shares subject to the Option upon the occurrence of subsequent events except as provided in the Plan.

8.Certain Definitions.  For the purposes of this agreement, the following terms have the meanings set forth below:

“Cause” means the occurrence of one or more of the following events, as determined by the Committee:
(i)    commission of (x) a felony or (y) any crime or offense lesser than a felony involving the property of the Company or a Subsidiary; or
(ii)    conduct that has caused demonstrable and serious injury to the Company or a Subsidiary, monetary or otherwise; or
(iii)willful refusal to perform or substantial disregard of duties properly assigned; or
(iv)breach of duty of loyalty to the Company or a Subsidiary or other act of fraud or dishonesty with respect to the Company or a Subsidiary.

"Change in Control" means the occurrence of any of the following events:
(i)    the acquisition (other than an acquisition in connection with a "Non-Control Transaction" (as defined below)) by any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) of "beneficial ownership" (as such term is defined in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company or its Ultimate Parent representing 51% or more of the combined voting power of the then outstanding securities of the Company or its Ultimate Parent entitled to vote generally with respect to the election of the board of directors of the Company or its 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 the Company (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 the Company; or 
(iii)    the consummation of a merger, consolidation or reorganization with or into the Company unless (x) the stockholders of the Company 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 the Company (or its successor) or, if applicable, the Ultimate Parent and (y) individual board members of the Company (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 the Company (or its successor) or, if applicable, the Ultimate Parent (a transaction to which clauses (x) and (y) apply, a "Non-Control Transaction").
“Disability” means that, solely because of injury or sickness, you are either: (i) unable to perform all the material duties of the occupation that you routinely performed just prior to the date the Disability begins; or (ii) unable to earn 80% or more of your annual salary in effect just prior to the date the Disability begins.
“Good Reason” means (i) any material diminution in the nature or scope of your authority, duties or responsibilities from those you had as of the date immediately preceding the Change in Control, (ii) requiring your relocation to a location more than 50 miles from your primary location of employment immediately preceding the Change in Control without your consent or (iii) any reduction in your base salary or target bonus opportunity without your consent.
"Option Shares" means (i) all shares of Common Stock issued or issuable upon the exercise of the Option and (ii) all shares of Common Stock issued with respect to the Common Stock referred to in clause (i) above by way of stock dividend or stock split or in connection with any conversion, merger, consolidation or recapitalization or other reorganization affecting the Common Stock.
“Subsidiary” means a corporation or other entity of which outstanding shares or ownership interests representing 50% or more of the combined voting power of such corporation or other entity entitled to elect the management thereof, or such lesser percentage as may be approved by the Committee, are owned directly or indirectly by the Company.
"Ultimate Parent" means 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 the Company (or its successor).
9.Successors and Assigns.  Except as otherwise expressly provided herein, all covenants and agreements contained in this agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and permitted assigns of the parties hereto whether so expressed or not.

10.Severability.  Whenever possible, each provision of this agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this agreement.

11.Descriptive Headings.  The descriptive headings of this agreement are inserted for convenience only and do not constitute a part of this agreement.

12.Governing Law.  THE VALIDITY, CONSTRUCTION, INTERPRETATION, ADMINISTRATION AND EFFECT OF THE PLAN, AND OF ITS RULES AND 

REGULATIONS, AND RIGHTS RELATING TO THE PLAN AND TO THIS AGREEMENT, SHALL BE GOVERNED BY THE SUBSTANTIVE LAWS, BUT NOT THE CHOICE OF LAW RULES, OF THE STATE OF DELAWARE.

13.Notices.  All notices, demands or other communications to be given or delivered under or by reason of the provisions of this agreement shall be in writing and shall be deemed to have been given when (i) delivered personally, (ii) mailed by certified or registered mail, return receipt requested and postage prepaid or (iii) sent by reputable overnight courier, to the recipient.  Such notices, demands and other communications shall be sent to you at the address on file with the Company and to the Company at 11825 N. Pennsylvania Street, P.O. Box 1911 (46082), Carmel, Indiana 46032, Attn: General Counsel, or to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.

14.Entire Agreement.  This agreement, any written agreement between you and the Company or a Subsidiary to the extent contemplated by paragraph 2(c) hereof, and the terms of the Plan constitute the entire understanding between you and the Company, and supersede all other agreements, whether written or oral, with respect to your acquisition of the Option Shares.

15.Section 409A.  The Option awarded hereunder is intended to be a Non-409A Award (as defined in the Plan) and is at all times intended to comply with Section 409A of the Code, as provided under the Plan.  To the extent that Section 409A(a)(2)(B)(i) (regarding certain payments to “key employees” in connection with a separation from service) requires the Company to delay payment and/or other delivery beyond the date(s) otherwise specified in this agreement, the Company shall pay such amounts to you upon the earliest date permitted under Section 409A(a)(2)(B)(i) of the Code without incurring excise tax.

Details of the Award are displayed on the Company’s equity administration website in the grant details section.
To execute this agreement and confirm your understanding and acceptance of the agreements contained you must click the Accept button and enter your assigned PIN as your digital signature.

Very truly yours,
CNO FINANCIAL GROUP, INC.
	
			
	 
	 
	By:       /s/ Sue Menzel

	 
	 
	Name:  Susan L. Menzel

	 
	 
	Title:    Executive Vice President,

	 
	 
	             Human Resources

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