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                                                                 EXHIBIT-10.1.12

                              EMPLOYMENT AGREEMENT

                  EMPLOYMENT AGREEMENT, dated as of the 31st day of March, 1998,
as amended and restated as of May 26, 1999, and as further  amended and restated
as  of  December  15,  1999,  between  CONSECO,  INC.,  an  Indiana  corporation
(hereinafter  called the "Company"),  and Thomas J. Kilian  (hereinafter  called
"Executive").

                                    RECITALS

         WHEREAS,  Executive  has been  employed  by the Company for a number of
years,   and  the  services  of  Executive,   his  managerial  and  professional
experience,  and his  knowledge of the affairs of the Company are of great value
to the Company; and

         WHEREAS, the Company deems it to be essential for it to have the
benefit and advantage of the services of the Executive for an extended period;
and

         WHEREAS,  the  Company  and  Executive  are  parties  to an  employment
agreement dated as of March 31, 1998, as amended and restated as of May 26, 1999
(as so  amended,  the  "Existing  Employment  Agreement"),  and the  Company and
Executive  desire  to make  certain  modifications  to the  Existing  Employment
Agreement;

         NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  mutual
covenants  contained herein,  the parties agree that the Existing  Employment be
amended and restated in its entirety to be as follows:

         1.  Employment.  The Company  hereby  employs  Executive  and Executive
hereby accepts employment upon the terms and conditions hereinafter set forth.

         2. Term. The effective date of this Agreement  shall be March 31, 1998.
Subject to the provisions for termination as provided in Section 10 hereof,  the
term of this Agreement shall be the period  beginning March 31, 1998, and ending
December 31, 2002, (hereinafter called the "Basic Employment Period").

         3. Duties. Executive is engaged by the Company in an executive capacity
as its chief operations  officer.  Executive shall report to the Chief Executive
Officer  regarding  the  performance  of his  duties and shall be subject to the
direction  and  control  of the Board of  Directors  of the  Company  (sometimes
referred to herein as the "Board") and the Chief Executive Officer.  Executive's
position with the Company shall  initially be Executive Vice President and Chief
Operations  Officer and such other  positions as may be determined  from time to
time by the Board.

         4. Extent of Services.  Executive, subject to the direction and control
of the Chief Executive Officer and the Board, shall have the power and authority
commensurate  with his  executive  status and  necessary  to perform  his duties
hereunder.  The Company agrees to provide to Executive such  assistance and work
accommodations  as are  suitable  to the  character  of his  positions  with the
Company and adequate for the  performance of his duties.  Executive shall devote
his entire  employable  time,  attention and best efforts to the business of the
Company,  and shall not, without the consent of the Company,  during the term of
this Agreement be actively engaged in any other

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business  activity,  whether or not such business  activity is pursued for gain,
profit  or  other  pecuniary  advantage;  but this  shall  not be  construed  as
preventing  Executive  from  investing his assets in such form or manner as will
not  require any  services  on the part of  Executive  in the  operation  of the
affairs of the  companies in which such  investments  are made.  For purposes of
this  Agreement,  full-  time  employment  shall  be the  normal  work  week for
individuals in comparable executive positions with the Company.

         5. Compensation.

            (a) As compensation for services  hereunder rendered during the term
         hereof,  Executive  shall receive a base salary ("Base  Salary") of Two
         Hundred Fifty  Thousand  Dollars  ($250,000)  per year payable in equal
         installments in accordance with the Company's payroll procedure for its
         salaried employees. Salary and all other payments made pursuant to this
         Agreement  shall be  subject to  withholding  of taxes.  Executive  may
         receive  increases in his Base Salary from time to time, based upon his
         performance  in his executive and management  capacity.  The amounts of
         any  such  salary  increases  shall  be  approved  by the  Board or the
         Compensation  Committee  of the Board  upon the  recommendation  of the
         Chief Executive Officer.

            (b) In addition to Base  Salary,  Executive  may receive  such other
         bonuses or incentive  compensation as the Compensation Committee or the
         Board may approve  from time to time,  upon the  recommendation  of the
         Chief Executive Officer;  provided, that Executive shall receive a cash
         bonus of at least Seven Hundred Fifty Thousand  Dollars  ($750,000) for
         each of the first two calendar  years (i.e.,  1998 and 1999)  completed
         under this Agreement.

         6. Fringe Benefits.

            (a)  Executive  shall be entitled to  participate  in such  existing
         employee  benefit plans and insurance  programs offered by the Company,
         or which it may adopt form time to time,  for its executive  management
         or supervisory personnel generally,  in accordance with the eligibility
         requirements  for  participation  therein.   Nothing  herein  shall  be
         construed  so as to prevent the Company from  modifying or  terminating
         any employee benefit plans or programs, or employee fringe benefits, it
         may adopt from time to time.

            (b)  During  the  term of this  Agreement,  the  Company  shall  pay
         Executive a monthly  automobile  allowance in the amount of Six Hundred
         Dollars  ($600),  and the Company shall pay directly or shall reimburse
         Executive for the cost of fuel that he incurs in using his automobile.

            (c) Executive  shall be entitled to four (4) weeks vacation with pay
         each year during the term hereof.

            (d)  Executive  may incur  reasonable  expenses  for  promoting  the
         Company's business,  including expenses for entertainment,  travel, and
         similar  items.  The Company  shall  reimburse  Executive  for all such
         reasonable  expenses  upon  Executive's  periodic  presentation  of  an
         itemized account of such expenditures.

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            (e) The Company shall,  upon periodic  presentation  of satisfactory
         evidence and to a maximum of Ten Thousand  Dollars  ($10,000)  per each
         year of this  Agreement,  reimburse  Executive for  reasonable  medical
         expenses  incurred  by  Executive  and  his  dependents  which  are not
         otherwise  covered by health  insurance  provided  to  Executive  under
         Section 6(a).

            (f)  During the term of this  Agreement,  the  Company  shall at its
         expense  maintain a term life insurance  policy or policies on the life
         of  Executive  in the face  amount  of Five  Hundred  Thousand  Dollars
         ($500,000), payable to such beneficiaries as Executive may designate.

         7.  Disability.  If  Executive  shall  become  physically  or  mentally
disabled  during the term of this  Agreement  to the extent  that his ability to
perform his duties and services hereunder is materially and adversely  impaired,
his salary, bonus and other compensation provided herein shall continue while he
remains employed by the Company; provided, that if such disability (as confirmed
by  competent  medical  evidence)  continues  for at least nine (9)  consecutive
months, the Company may terminate Executive's employment hereunder in which case
the  Company  shall  immediately  pay  Executive  a lump  sum  payment  equal to
one-quarter  of the sum of his annual  salary and bonus with respect to the most
recent  fiscal  year then ended  and,  provided  further,  that no such lump sum
payment shall be required if such disability  arises primarily from: (a) chronic
depressive  use  of  intoxicants,  drugs  or  narcotics,  or  (b)  intentionally
self-inflicted  injury or intentionally  self-induced  sickness; or (c) a proven
unlawful act or enterprise on the part of Executive.

         8. Disclosure of Information.  Executive  acknowledges that in and as a
result of his  employment  with the Company,  he has been and will be making use
of,  acquiring  and/or adding to  confidential  information  of the Company of a
special and unique nature and value. As a material  inducement to the Company to
enter into this  Agreement  and to pay to Executive the  compensation  stated in
Section 5, as well as any additional benefits stated herein, Executive covenants
and agrees that he shall not, at any time  during or  following  the term of his
employment,  directly  or  indirectly,  divulge  or  disclose  for  any  purpose
whatsoever,  any confidential information that has been obtained by or disclosed
to him as a result of his employment with the Company, except to the extent that
such  confidential  information  (a)  becomes a matter  of  public  record or is
published in a newspaper,  magazine or other periodical available to the general
public,  other  than as a result of any act or  omission  of  Executive,  (b) is
required  to be  disclosed  by any law,  regulation  or  order  of any  court or
regulatory  commission,  department  or agency,  provided that  Executive  gives
prompt notice of such  requirement  to the Company to enable the Company to seek
an appropriate protective order or confidential  treatment,  or (c) is necessary
to  perform  properly   Executive's  duties  under  this  Agreement.   Upon  the
termination of this  Agreement,  Executive  shall return all materials  obtained
from or belonging to the Company which he may have in his possession or control.

         9.  Covenants   Against   Competition   and   Solicitation.   Executive
acknowledges  that the  services he is to render to the Company are of a special
and unusual  character,  with a unique value to the  Company,  the loss of which
cannot  adequately be compensated by damages or an action at law. In view of the
unique value to the Company of the  services of Executive  for which the Company
has contracted hereunder, because of the confidential information to be obtained
by, or disclosed  to,  Executive  as  hereinabove  set forth,  and as a material
inducement to the Company to

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enter into this  Agreement  and to pay to Executive the  compensation  stated in
Section 5, as well as any additional  benefits stated herein, and other good and
valuable  consideration,  Executive  covenants  and agrees that  throughout  the
period  Executive  remains  employed  hereunder  and  for one  year  thereafter,
Executive  shall not,  directly or indirectly,  anywhere in the United States of
America (i) render any services, as an agent, independent contractor, consultant
or  otherwise,  or become  employed or  compensated  by, any other  corporation,
person or entity engaged in the business of selling or providing life,  accident
or health insurance products or services; (ii) render any services, as an agent,
independent   contractor,   consultant  or  otherwise,  or  become  employed  or
compensated by, any other corporation,  person or entity engaged in the business
of selling or providing any lending or other financial products or services that
are competitive with the lending or other financial products or services sold or
provided by the Company or its  subsidiaries,  (iii) in any manner  compete with
the Company or any of its  subsidiaries;  (iv)  solicit or attempt to convert to
other insurance carriers,  finance companies or other  corporations,  persons or
other entities  providing these same or similar products or services provided by
the Company and its subsidiaries, any customers or policyholders of the Company,
or any of its subsidiaries; or (v) solicit for employment or employ any employee
of the Company or any of its  subsidiaries.  The  covenants of Executive in this
Section 9 shall be void and unenforceable in the event of a Control  Termination
of this Agreement as defined in Section 10 below. Should any particular covenant
or provision of this Section 9 be held unreasonable or contrary to public policy
for any reason,  including,  without limitation,  the time period,  geographical
area, or scope of activity covered by any restrictive covenant or provision, the
Company and  Executive  acknowledge  and agree that such  covenant or  provision
shall  automatically  be deemed  modified  such that the  contested  covenant or
provision  shall have the closest  effect  permitted  by  applicable  law to the
original  form and shall be given effect and enforced as so modified to whatever
extent would be reasonable and enforceable under applicable law.

         10. Termination.

            (a) Either the Company or Executive may terminate  this Agreement at
         any  time  for any  reason  upon  written  notice  to the  other.  This
         Agreement  shall also terminate upon (i) the death of Executive or (ii)
         termination by the Company pursuant to Section 7.

            (b) In the event this  Agreement  is  terminated  by the Company and
         such  termination  is not pursuant to the last sentence of (a) above or
         for "just  cause" as  defined  in (e) below and does not  constitute  a
         Control  Termination  as  defined  in (d)  below,  Executive  shall  be
         entitled to receive  Executive's Base Salary, as determined pursuant to
         Section 5(a) hereof,  for the remainder of the Basic Employment  Period
         (provided,  that,  if  such  amount  for  the  remainder  of the  Basic
         Employment  Period  aggregates  less than  $1,000,000,  Executive shall
         receive an  aggregate  lump sum  payment of  $1,000,000)  and all other
         unpaid  amounts  previously  accrued or awarded  pursuant  to any other
         provision of this Agreement.

            (c) In the  event  this  Agreement  is  terminated  by the  death of
         Executive,  is terminated by the Company for "just cause" as defined in
         (e) below, or is terminated by Executive and such  termination does not
         constitute  a Control  Termination  as defined in (d) below,  Executive
         shall be  entitled  to receive  Executive's  Base Salary as provided in
         Section 5(a) accrued but unpaid as of the date of termination,  and all
         other  unpaid  amounts  previously  accrued or awarded  pursuant to any
         other provision of this Agreement.

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            (d) The term  "Control  Termination"  as used herein  shall mean (A)
         termination of this Agreement by the Company in  anticipation of or not
         later than two years following a "change in control" of the Company (as
         defined  below),  or (B)  termination  of this  Agreement  by Executive
         following  "change in control"  of the Company (as defined  below) upon
         the occurrence of any of the following events:

                  (i) a significant change in the nature or scope of Executive's
            authorities or duties from those in existence  immediately  prior to
            the change in control,  a reduction in his total  compensation  from
            that in existence  immediately prior to the change in control,  or a
            breach by the Company of any other provision of this Agreement; or

                  (ii) the  reasonable  determination  by Executive  that,  as a
            result  of a change in  circumstances  significantly  affecting  his
            position, he is unable to exercise Executive's authorities,  powers,
            functions or duties in existence  immediately prior to the change in
            control, or

                  (iii) the  Company's  principal  executive  offices  are moved
            outside the geographic area comprised of Marion County, Indiana, and
            the seven contiguous  counties or Executive is required to work at a
            location other than the Company's principal executive offices; or

                  (iv) the giving of notice of termination  by Executive  during
            the 6-month  period  commencing  six (6) months  after the change in
            control.

The term  "change in  control"  shall mean a change in control of a nature  that
would be required  to be  reported  in response to Item 6(e) of Schedule  14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934 (the "Act")
if such Item 6(e) were  applicable  to the  Company as such Item is in effect on
May 26, 1999; provided that, without limitation,

            (x) such a change in control shall be deemed to have occurred if and
         when either (A) except as provided in (y) below,  any "person" (as such
         term is used in  Sections  13(d) and 14(d) of the Act) is or  becomes a
         "beneficial  owner" (as such term is defined in Rule 13d-3  promulgated
         under the Act),  directly or  indirectly,  of securities of the Company
         representing  25% or more of the combined voting power of the Company's
         then  outstanding  securities  entitled  to vote  with  respect  to the
         election  of its Board of  Directors  or (B) as the  result of a tender
         offer, merger,  consolidation,  sale of assets, or contest for election
         of  directors,  or any  combination  of the foregoing  transactions  or
         events, individuals who, as of the date hereof, constitute the Board of
         Directors of the Company (the "Incumbent Board") cease to constitute at
         least a majority of such Board; provided,  however, that any individual
         who  becomes a director of the  Company  subsequent  to the date hereof
         whose  election  was  approved  by a vote of at least a majority of the
         directors then comprising the Incumbent Board,  shall be deemed to have
         been a member of the Incumbent  Board;  and provided  further,  that no
         individual who was initially  elected as a director of the Company as a
         result of an actual or threatened  election contest,  as such terms are
         used in Rule 14a-11 of Regulation 14A promulgated under the Act, or any
         other actual or threatened solicitation of

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         proxies or consents by or on behalf of any person  other than the Board
         of  Directors  shall be deemed  to have been a member of the  Incumbent
         Board,  or (C)  any  reorganization,  merger  or  consolidation  or the
         issuance  of  shares  of  common  stock of the  Company  in  connection
         therewith unless immediately after any such  reorganization,  merger or
         consolidation  (i)  more  than 60% of the then  outstanding  shares  of
         common  stock of the  corporation  surviving  or  resulting  from  such
         reorganization,  merger  or  consolidation  and  more  than  60% of the
         combined  voting  power  of the  then  outstanding  securities  of such
         corporation entitled to vote generally in the election of directors are
         then   beneficially   owned,   directly  or   indirectly,   by  all  or
         substantially   all  of  the  individuals  or  entities  who  were  the
         beneficial  owners,  respectively,  of the outstanding shares of common
         stock of the  Company  and the  outstanding  voting  securities  of the
         Company   immediately   prior  to  such   reorganization,   merger   or
         consolidation  and in substantially  the same  proportions  relative to
         each   other   as   their   ownership,   immediately   prior   to  such
         reorganization,  merger or consolidation,  of the outstanding shares of
         common stock of the Company and the  outstanding  voting  securities of
         the  Company,  as the case may be, and (ii) at least a majority  of the
         members  of the board of  directors  of the  corporation  surviving  or
         resulting  from  such  reorganization,  merger  or  consolidation  were
         members  of the Board of  Directors  of the  Company at the time of the
         execution of the initial  agreement or action of the Board of Directors
         providing for such reorganization,  merger or consolidation or issuance
         of shares of common stock of the Company, and

            (y) no change of  control  shall be deemed to have  occurred  if and
         when  any  such  person  becomes,  with the  approval  of the  Board of
         Directors of the Company,  the  beneficial  owner of  securities of the
         Company  representing  25% or more  but less  than 50% of the  combined
         voting power of the Company's then outstanding  securities  entitled to
         vote with  respect to the  election  of its Board of  Directors  and in
         connection  therewith  represents,   and  at  all  times  continues  to
         represent,  in a filing,  as amended,  with the Securities and Exchange
         Commission on Schedule 13D or Schedule 13G (or any  successor  Schedule
         thereto) that "such person has acquired such  securities for investment
         and not with the purpose nor with the effect of changing or influencing
         the control of the Company,  nor in connection with or as a participant
         in any  transaction  having  such  purpose  or  effect",  or  words  of
         comparable meaning and import. The designation by any such person, with
         the  approval of the Board of  Directors  of the  Company,  of a single
         individual  to serve as a member of, or observer  at  meetings  of, the
         Company's  Board of  Directors,  shall not be  considered  "changing or
         influencing  the  control of the  Company"  within  the  meaning of the
         immediately  preceding  clause (B), so long as such individual does not
         constitute  at any time more  than  one-third  of the  total  number of
         directors serving on such Board.

Upon the occurrence of a change in control,  the Company shall  promptly  notify
Executive in writing of the  occurrence of such event (such notice,  the "Change
in Control Notice"). If the Change in Control Notice is not given within 10 days
after the  occurrence  of a change in  control  the period  specified  in clause
(d)(A) of this Section 10 shall be extended until the second  anniversary of the
date such Change in Control Notice is given.

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            (e) For purposes of this Agreement "just cause" shall mean:

                  (i) a material  breach by  Executive  of this  Agreement,  the
            commission of gross negligence,  or willful  malfeasance or fraud or
            dishonesty  of  a  substantial  nature  in  performing   Executive's
            services on behalf of the Company, which is in each case (A) willful
            and  deliberate  on  Executive's  part and committed in bad faith or
            without  reasonable belief that such breach is in the best interests
            of the Company and (B) not  remedied by  Executive  in a  reasonable
            period of time  after  receipt of written  notice  from the  Company
            specifying such breach;

                  (ii)  Executive's  breach of any provisions of this Agreement,
            or his use of alcohol or drugs which interferes with the performance
            of his duties  hereunder  or which  compromises  the  integrity  and
            reputation of the Company, its employees, and products;

                  (iii)  Executive's  conviction by a court of law, or admission
            that he is  guilty,  of a felony  or  other  crime  involving  moral
            turpitude; or

                  (iv)  Executive's  absence from his employment other than as a
            result of Section 7 hereof, for whatever cause, for a period of more
            than one (1) month, without prior written consent from the Company.

         11.  Payments  for  Control  Termination.  In the  event  of a  Control
Termination of this  Agreement,  the Company shall pay Executive and provide him
with the following:

            (a) During the remainder of the Basic Employment Period, the Company
         shall  continue  to pay  Executive  his Base Salary at the same rate as
         payable immediately prior to the date of termination plus the estimated
         amount  of any  bonuses  to which he would  have been  entitled  had he
         remained  in the employ of the  Company  and a change in control of the
         Company had not occurred,  which  estimate shall be reasonable and made
         by the Company in good faith.

            (b) During the remainder of the Basic Employment  Period,  Executive
         shall continue to be treated as an employee under the provisions of all
         incentive  compensation   arrangements   applicable  to  the  Company's
         executive  employees.  In  addition,  Executive  shall  continue  to be
         entitled  to all  benefits  and  service  credits  for  benefits  under
         medical,  insurance  and other  employee  benefit  plans,  programs and
         arrangements  of the  Company as if he were still  employed  under this
         Agreement and a change in control of the Company had not occurred.

            (c) If,  despite the  provisions  of paragraph  (b) above,  benefits
         under any employee  benefit plan shall not be payable or provided under
         any such plan to Executive,  or Executive's  dependents,  beneficiaries
         and estate,  because he is no longer an employee  of the  Company,  the
         Company itself shall, to the extent necessary to provide the full value
         of such

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         benefits  and service  credits to  Executive,  Executive's  dependants,
         beneficiaries  and estate,  pay or provide for payment of such benefits
         and service  credits for such  benefits to Executive,  his  dependents,
         beneficiaries and estate.

            (d) If, despite the  provisions of paragraph (b) above,  benefits or
         the right to accrue  further  benefits  under any stock option or other
         incentive compensation arrangement shall not be provided under any such
         arrangement to Executive, or his dependents,  beneficiaries and estate,
         because he is no longer an employee of the Company,  the Company shall,
         to the extent necessary, pay or provide for payment of such benefits to
         Executive, his dependents, beneficiaries and estate.

         12. Severance Allowance.  In the event of a Control Termination of this
Agreement,  Executive may elect, within 60 days after such Control  Termination,
to be paid a lump sum severance  allowance,  in lieu of the termination payments
provided for in Section 11 above,  in an amount which is equal to the sum of the
amounts determined in accordance with the following clauses (a) and (b):

            (a) an  amount  equal to the  aggregate  of salary  payments  for 60
         calendar  months at the rate of Base  Salary  which he would  have been
         entitled to receive in accordance with Section 5(a); and

            (b) an amount equal to the aggregate of 60 calendar  months of bonus
         at the  greater of (i) the  monthly  rate of the bonus  payment for the
         annual bonus period immediately prior to this termination date, or (ii)
         the monthly  rate of the  estimated  amount of the bonus for the annual
         bonus period which includes his termination date.

         In the event that Executive makes an election  pursuant to this Section
to receive a lump sum severance allowance of the amount described in clauses (a)
and (b),  then, in addition to such amount,  he shall receive (i) in addition to
the benefits  provided  under any deferred  compensation,  retirement or pension
benefit plan maintained by the Company, the benefits he would have accrued under
such  benefit plan if he had remained in the employ of the Company and such plan
had  remained  in effect for 60 calendar  months  after his  termination,  which
benefits  will be paid  concurrently  with,  and in  addition  to, the  benefits
provided under such benefit plan, and (ii) the employee benefits (including, but
not  limited  to,  coverage  under  any  medical  insurance  and life  insurance
arrangements  or  programs)  to which he would  have  been  entitled  under  all
employee benefit plans, programs or arrangements maintained by the Company if he
had  remained  in  the  employ  of the  Company  and  such  plans,  programs  or
arrangements   had  remained  in  effect  for  60  calendar   months  after  his
termination;  or the value of the amounts described in clauses (i) and (ii) next
preceding.  The amount of the payments described in the preceding sentence shall
be determined and such payments shall be distributed as soon as it is reasonably
possible.

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         13. Tax Indemnity Payments.

            (a) Anything in this Agreement to the contrary  notwithstanding,  in
         the event it shall be determined  that any payment or  distribution  by
         the  Company  or its  affiliated  companies  to or for the  benefit  of
         Executive,  whether  paid or payable or  distributed  or  distributable
         pursuant to the terms of the  Agreement  or  otherwise  but  determined
         without regard to any additional  payments  required under this Section
         13 (a "Payment"), would be subject to the excise tax imposed by Section
         4999 of the Internal  Revenue Code of 1986 (as amended the "Code"),  or
         any successor provision (collectively, "Section 4999"), or any interest
         or penalties are incurred by Executive  with respect to such excise tax
         (such excise tax,  together with any such interest and  penalties,  are
         hereinafter  collectively  referred  to  as  the  "Excise  Tax"),  then
         Executive  shall be  entitled  to  receive  an  additional  payment  (a
         "Gross-Up  Payment") in an amount such that after  payment by Executive
         of all taxes (including any interest or penalties  imposed with respect
         to such taxes),  including,  without limitation,  any Federal, state or
         local income and employment  taxes and Excise Tax (and any interest and
         penalties  imposed  with  respect to any such taxes)  imposed  upon the
         Gross-Up  Payment,  Executive retains an amount of the Gross-Up Payment
         equal to the Excise Tax imposed upon the Payments.

            (b) Subject to the provisions of Section 13(c),  all  determinations
         required to be made under this Section 13, including whether and when a
         Gross-Up  Payment is required and the amount of such  Gross-Up  Payment
         and the  assumptions to be utilized in arriving at such  determination,
         shall be made by the Company's public  accounting firm (the "Accounting
         Firm") which shall provide detailed supporting calculations both to the
         Company and Executive  within fifteen (15) business days of the receipt
         of notice from Executive that there has been a Payment, or such earlier
         time as is requested by the Company.  In the event that the  Accounting
         Firm is serving as accountant or auditor for the individual,  entity or
         group  effecting the Change in Control,  Executive may appoint  another
         nationally recognized public accounting firm to make the determinations
         required  hereunder (which accounting firm shall then be referred to as
         the Accounting Firm hereunder). All fees and expenses of the Accounting
         Firm shall be borne solely by the Company.  Any  Gross-Up  Payment,  as
         determined pursuant to this Section 13, shall be paid by the Company to
         Executive within five (5) days of the receipt of the Accounting  Firm's
         determination.  If the Accounting Firm determines that no Excise Tax is
         payable by Executive, it shall furnish Executive with a written opinion
         that failure to report the Excise Tax on Executive's applicable federal
         income tax return would not result in the imposition of a negligence or
         similar  penalty.  Any  determination  by the Accounting  Firm shall be
         binding upon the Company and Executive.  As a result of the uncertainty
         in the  application  of  Section  4999  at  the  time  of  the  initial
         determination  by the Accounting  Firm  hereunder,  it is possible that
         Gross-Up  Payments  which will not have been made by the Company should
         have been made by the  Company  ("Underpayment"),  consistent  with the
         calculations  required  to be made  hereunder.  In the  event  that the
         Company  exhausts its remedies  pursuant to Section 13(c) and Executive
         thereafter  is  required  to make a  payment  of any  Excise  Tax,  the
         Accounting Firm shall determine the amount of the Underpayment that has
         occurred  and any  such  Underpayment  shall  be  promptly  paid by the
         Company to or for the benefit of Executive.

                                        9
<PAGE>   10

            (c)  Executive  shall  notify the Company in writing of any claim by
         the Internal  Revenue  Service  that,  if  successful,  would require a
         payment by the  Company of, or a change in the amount of the payment by
         the Company of, the Gross-Up Payment.  Such notification shall be given
         as soon as practicable  after  Executive is informed in writing of such
         claim and shall apprise the Company of the nature of such claim and the
         date on which such claim is  requested  to be paid;  provided  that the
         failure to give any notice  pursuant  to this  Section  13(c) shall not
         impair  Executive's  rights  under this Section 13 except to the extent
         the Company is materially  prejudiced thereby.  Executive shall not pay
         such claim prior to the  expiration of the 30-day period  following the
         date on which  Executive  gives  such  notice to the  Company  (or such
         shorter  period  ending  on the date  that any  payment  of taxes  with
         respect to such claim is due).  If the Company  notifies  Executive  in
         writing  prior to the  expiration  of such  period  that it  desires to
         contest such claim, Executive shall:

                (1) give the Company any information reasonably requested by the
            Company relating to such claim,

                (2) take such action in connection with contesting such claim as
            the Company shall  reasonably  request in writing from time to time,
            including,  without limitation,  accepting legal representation with
            respect  to such claim by an  attorney  reasonably  selected  by the
            Company,

                (3)   cooperate   with  the  Company  in  good  faith  in  order
            effectively to contest such claim, and

                (4)  permit  the  Company  to  participate  in  any  proceedings
            relating to such claim;

provided,  however,  that the Company  shall bear and pay directly all costs and
expenses  (including  additional  interest and penalties) incurred in connection
with such  contest  and  shall  indemnify  and hold  Executive  harmless,  on an
after-tax  basis,  for  any  Excise  Tax or  income,  employment  or  other  tax
(including  interest and penalties with respect  thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the
foregoing  provisions  of this  Section  13(c),  the Company  shall  control all
proceedings  taken in connection with such contest and, at its sole option,  may
pursue or forgo any and all administrative  appeals,  proceedings,  hearings and
conferences  with the taxing  authority in respect of such claim and may, at its
sole option, either direct Executive to pay the tax claimed and sue for a refund
or  contest  the  claim in any  permissible  manner,  and  Executive  agrees  to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial  jurisdiction  and in one or more  appellate  courts,  as the
Company shall determine; provided further, that if the Company directs Executive
to pay such claim and sue for a refund,  the Company shall advance the amount of
such payment to Executive on an interest-free basis and shall indemnify and hold
Executive  harmless,  on an  after-tax  basis,  from any  Excise  Tax or income,
employment  or other tax  (including  interest or penalties  with respect to any
such taxes)  imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and provided further, that any extension of
the statute of limitations  relating to payment of taxes for the taxable year of
Executive with respect to which such contested amount is claimed to

                                       10
<PAGE>   11

be due is limited solely to such contested  amount.  Furthermore,  the Company's
control  of the  contest  shall be  limited  to issues  with  respect to which a
Gross-Up  Payment would be payable  hereunder and Executive shall be entitled to
settle or contest,  as the case may be, any other issue  raised by the  Internal
Revenue Service or any other taxing authority.

            (d) If, after the receipt by Executive of an amount  advanced by the
         Company  pursuant  to Section  13(c),  Executive  becomes  entitled  to
         receive, and receives, any refund with respect to such claim, Executive
         shall  (subject to the Company's  complying  with the  requirements  of
         Section  12(c))  promptly  pay to the Company the amount of such refund
         (together  with any  interest  paid or  credited  thereon  after  taxes
         applicable  thereto).  If,  after the receipt by Executive of an amount
         advanced by the Company  pursuant to Section 13(c), a determination  is
         made that Executive shall not be entitled to any refund with respect to
         such claim and the Company does not notify  Executive in writing of its
         intent to contest  such  denial of refund  prior to the  expiration  of
         thirty (30) days after such  determination,  then such advance shall be
         forgiven  and shall not be required to be repaid and the amount of such
         advance shall  offset,  to the extent  thereof,  the amount of Gross-Up
         Payment required to be paid.

         14. Payment for Options.  In the event of a Control Termination of this
Agreement,  Executive may also elect,  within sixty (60) days after such Control
Termination,  to receive (in  addition to any other  amounts  owed to  Executive
under  this  Agreement)  a lump  sum  payment  in cash  equal  to the sum of the
following: (i) all or any portion of the number of shares of common stock of the
Company  which may be acquired  pursuant  to options  granted by the Company and
held by  Executive  at the time of such  election,  multiplied,  with respect to
shares  subject to any such  options by the  difference  between the Conseco Put
Price and the  respective  exercise price under such option with respect to such
shares; plus (ii) all or any portion of the number of Successor Securities which
may be acquired  pursuant to options (which options were granted to Executive in
exchange or substitution for options to acquire the common stock of the Company)
held by  Executive  at the time of such  election,  multiplied  with  respect to
shares  subject to any such  options  relating to Successor  Securities,  by the
difference between the Successor Security Put Price and the respective  exercise
price under such option with respect to such shares. For purposes of calculating
the above lump sum payment,  the options described in clauses (i) and (ii) shall
include all such options, whether or not then exercisable.  The cash payment due
from the Company  pursuant to this Section 14 shall be made to Executive  within
ten (10) days after the date of such election  hereunder,  against the execution
and delivery by Executive to the Company of an appropriate  agreement confirming
the  surrender  to the  Company of the  options in respect of which the lump sum
cash payment is being made to Executive.

             "Successor  Securities" means any securities of any person received
by the holders of the common stock of the Company in exchange,  substitution  or
payment  for,  or upon  conversion  of,  the  common  stock  of the  Company  in
connection with a change in control.

             "Conseco  Put Price" means the greater of (i) the Change in Control
Price or (ii) the Current Market Price of the common stock of the Company.

                                       11
<PAGE>   12

             "Successor  Security Put Price" means the greater of (i) the Change
in Control Price divided by the Exchange  Ratio or (ii) the Current Market Price
of the Successor Securities.

             "Current  Market  Price" for any security  means the average of the
daily Prices per security for the twenty (20) consecutive trading days ending on
the trading day which is immediately  prior to  Executive's  election under this
Section 14.

             "Price"  for any  security  means the  average of the  highest  and
lowest sales price of such  security  (regular way) on a trading day as shown on
the Composite  Tape of the New York Stock  Exchange (or, if such security is not
listed or admitted to trading on the New York Stock  Exchange,  on the principal
national  securities  exchange  on which such  security is listed or admitted to
trading) or, in case no sales take place on such day, the average of the closing
bid and asked prices on the New York Stock Exchange (or, if such security is not
listed or admitted to trading on the New York Stock  Exchange,  on the principal
national  securities  exchange  on which such  security is listed or admitted to
trading)  or,  if it is not  listed  or  admitted  to  trading  on any  national
securities exchange,  the average of the highest and lowest sales prices of such
security on such day as reported by the NASDAQ Stock Market, or in case no sales
take place on such day,  the  average  of the  closing  bid and asked  prices as
reported by NASDAQ,  or if such security is not so reported,  the average of the
closing bid and asked  prices as furnished by any  securities  broker-dealer  of
recognized  national  standing selected from time to time by the Company (or its
successor in interest) for that purpose.

             "Change  in  Control  Price"  means  (i) in the case of a change in
control  which occurs solely as a result of a change in the  composition  of the
Board of Directors of the Company or which occurs in a transaction, or series of
related  transactions,  in which the same  consideration is paid or delivered to
all of the  holders  of  common  stock of the  Company  (or,  in the event of an
election  by holders of the common  stock of the Company of  different  forms of
consideration,  if the same  election is offered to all of the holders of common
stock of the Company), the Price per share of the common stock of the Company on
the date on which the change in control occurs, or if such date is not a trading
day, then the trading day immediately prior to such date, or (ii) in the case of
a change in control effected through a series of related  transactions,  or in a
single  transaction in which less than all of the  outstanding  shares of common
stock of the  Company is  acquired,  the  highest  price paid to the  holders of
common stock of the Company in the transaction or series of related transactions
whereby the change in control takes place. In determining the highest price paid
to the holders pursuant to clause (ii) of the immediately preceding sentence, in
the case of  Successor  Securities  paid or  delivered  to the holders of common
stock  of the  Company  in  exchange,  payment  or  substitution  for,  or  upon
conversion  of, the common stock of the Company,  the price paid to such holders
shall be the Price of such  security at the time or times paid or  delivered  to
such holders.

             "Exchange Ratio" means, in connection with a change in control, the
number of Successor  Securities to be paid or delivered to the holders of common
stock  of the  Company  in  exchange,  payment  or  substitution  for,  or  upon
conversion of, each share of such common stock.

         15. Character of Termination Payments. The amounts payable to Executive
upon any  termination  of this  Agreement  shall be considered  severance pay in
consideration  of past  services  rendered  on  behalf  of the  Company  and his
continued  service from the date hereof to the date he becomes  entitled to such
payments. Executive shall have no duty to mitigate his damages by seeking

                                       12
<PAGE>   13

other employment and, should Executive  actually receive  compensation  from any
such other employment,  the payments required  hereunder shall not be reduced or
offset by any such other compensation.

         16. Right of First Refusal to Purchase Stock. Executive agrees that the
Company shall have  throughout  the Basic  Employment  Period the right of first
refusal to  purchase  all or any portion of the shares of the  Company's  common
stock owned by him (the "Shares") at the following price:

            (a) in the event of a bona fide  offer for the  Shares,  or any part
         thereof,  received by  Executive  from any other person (a "Third Party
         Offer"),  the  price to be paid by the  Company  shall be the price set
         forth in such Third Party Offer; and

            (b) in the event Executive  desires to sell the Shares,  or any part
         thereof,  in the public securities  market, the price to be paid by the
         Company  shall be the last  sale  price  quoted  on the New York  Stock
         Exchange (or any other  exchange or national  market  system upon which
         price   quotations  for  the  Company's   common  stock  are  regularly
         available)  for the  Company's  common  stock on the last  business day
         preceding  the date on which  Executive  notifies  the  Company of such
         desire.

         In the event  Executive  shall  receive a Third  Party  Offer  which he
desires to accept, he shall deliver to the Company a written notification of the
terms  thereof  and the  Company  shall  have a period  of 48 hours  after  such
delivery in which to notify  Executive  of its desire to  exercise  its right of
first refusal hereunder.

         In the event Executive desires to sell any portion of the Shares in the
public  market he shall  deliver to the  Company a written  notification  of the
amount of Shares he desires to sell,  and the Company  shall have a period of 24
hours after such  delivery  to notify  Executive  of its desire to exercise  its
right of first refusal hereunder with respect to such amount of Shares.

         Upon  each  exercise  by the  Company  of its  right of  first  refusal
hereunder,  it shall make payment to Executive for the Shares in accordance with
standard practice in the securities  brokerage  industry.  After each failure by
the Company to exercise  its right of first  refusal  hereunder,  Executive  may
proceed to complete  the sale of Shares  pursuant to the Third Party Offer or in
the open market in  accordance  with his  notification  to the Company,  but his
failure to complete  such sale within two weeks  after his  notification  to the
Company  shall  reinstate  the  Company's  right of first  refusal  with respect
thereto and require a new notification to the Company.

         17. Arbitration of Disputes; Injunctive Relief.

             (a) Except as provided in paragraph (b) below,  any  controversy or
         claim  arising  out of or  relating  to this  Agreement  or the  breach
         thereof,  shall  be  settled  by  binding  arbitration  in the  City of
         Indianapolis,  Indiana,  in  accordance  with the laws of the  State of
         Indiana by three  arbitrators,  one of whom shall be  appointed  by the
         Company,  one by Executive  and the third of whom shall be appointed by
         the first two arbitrators. If the first two arbitrators cannot agree on
         the appointment of a third arbitrator,  then the third arbitrator shall
         be appointed by the Chief Judge of the United States District Court for
         the Southern District of

                                       13
<PAGE>   14

         Indiana.  The  arbitration  shall be conducted in  accordance  with the
         rules of the American Arbitration  Association,  except with respect to
         the  selection  of  arbitrators  which  shall  be as  provided  in this
         Section.  Judgment upon the award  rendered by the  arbitrators  may be
         entered in any court having jurisdiction  thereof. In the event that it
         shall be necessary or desirable  for  Executive to retain legal counsel
         and/or  incur  other  costs  and  expenses  in   connection   with  the
         enforcement  of any and all of his  rights  under this  Agreement,  the
         Company  shall pay (or  Executive  shall be entitled to recover from he
         Company,  as the case may be) his reasonable  attorneys' fees and costs
         and expenses in  connection  with the  enforcement  of any  arbitration
         award in court, regardless of the final outcome, unless the arbitrators
         shall determine that under the  circumstances  recovery by Executive of
         all or a part of any such fees and costs and expenses would be unjust.

            (b) Executive  acknowledges  that a breach or  threatened  breach by
         Executive  of  Sections  8 or 9 of this  Agreement  will  give  rise to
         irreparable  injury to the Company and that money  damages  will not be
         adequate relief for such injury.  Notwithstanding  paragraph (a) above,
         the  Company and  Executive  agree that the Company may seek and obtain
         injunctive relief, including, without limitation, temporary restraining
         orders,  preliminary  injunctions  and/or permanent  injunctions,  in a
         court of  proper  jurisdiction  to  restrain  or  prohibit  a breach or
         threatened  breach of Section 8 or 9 of this Agreement.  Nothing herein
         shall be construed as  prohibiting  the Company from pursuing any other
         remedies available to the Company for such breach or threatened breach,
         including the recovery of damages from Executive.

         18.  Notices.  Any notice  required or permitted to be given under this
Agreement  shall be sufficient  if in writing and if sent by registered  mail to
his residence,  in the case of Executive, or to the business office of its Chief
Executive Officer, in the case of the Company.

         19. Waiver of Breach and Severability.  The waiver by either party of a
breach of any  provision of this  Agreement by the other party shall not operate
or be construed as a waiver of any  subsequent  breach by either  party.  In the
event any provision of this  Agreement is found to be invalid or  unenforceable,
it may be  severed  from  the  Agreement  and the  remaining  provisions  of the
Agreement shall continue to be binding and effective.

         20. Entire Agreement.  This instrument contains the entire agreement of
the parties and supersedes all prior agreements between them. This agreement may
not be changed orally,  but only by an instrument in writing signed by the party
against  whom  enforcement  of any waiver,  change,  modification,  extension or
discharge is sought.

         21.  Binding  Agreement and Governing  Law;  Assignment  Limited.  This
Agreement  shall be binding  upon and shall  inure to the benefit of the parties
and their lawful  successors  in interest  and shall be construed in  accordance
with  and  governed  by the laws of the  State of  Indiana.  This  Agreement  is
personal  to each of the  parties  hereto,  and  neither  party may  assign  nor
delegate any of its rights or  obligations  hereunder  without the prior written
consent of the other.

                                       14
<PAGE>   15

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                                            CONSECO, INC.

                                            By: /s/ Stephen C. Hilbert
                                                -------------------------
                                                Stephen C. Hilbert
                                                   Chairman of the Board

                                                "Company"

                                                /s/ Thomas J. Kilian
                                                -------------------------
                                                Thomas J. Kilian

                                                     "Executive"

                                       15<PAGE>   1
                                                                 EXHIBIT-10.1.14

                              EMPLOYMENT AGREEMENT

               EMPLOYMENT AGREEMENT, dated as of the 28th day of July, 1999, as
amended and restated as of December 15, 1999, between CONSECO, INC., an Indiana
corporation (hereinafter called the "Company"), and Maxwell E. Bublitz
(hereinafter called "Executive").

                                    RECITALS

         WHEREAS, Executive has been employed by the Company for a number of
years, and the services of Executive, his managerial and professional
experience, and his knowledge of the affairs of the Company are of great value
to the Company; and

         WHEREAS, the Company deems it to be essential for it to have the
benefit and advantage of the services of the Executive for an extended period;
and

         WHEREAS, the Company and Executive are parties to an employment
agreement dated as of July 28, 1999 (the "Existing Employment Agreement") and
the Company and Executive desire to make certain modifications to the Existing
Employment Agreement;

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants contained herein, the parties agree that the Existing Employment
Agreement be amended and restated in its entirety to be as follows:

         1. Employment. The Company hereby employs Executive and Executive
hereby accepts employment upon the terms and conditions hereinafter set forth.

         2. Term. The effective date of this Agreement shall be July 28, 1999.
Subject to the provisions for termination as provided in Section 10 hereof, the
term of this Agreement shall be the period beginning July 28, 1999, and ending
December 31, 2002, (hereinafter called the "Basic Employment Period").

         3. Duties. Executive is engaged by the Company in an executive capacity
as the head of Conseco Capital Management, Inc. ("CCM"). Executive shall report
to the Chief Financial Officer or, if the Chief Executive Officer so designates
from time to time, the Chief Executive Officer (the officer to whom Executive
reports at any time being referred to as the "Reporting Officer") regarding the
performance of his duties and shall be subject to the direction and control of
the Board of Directors of the Company (sometimes referred to herein as the
"Board") and the Reporting Officer. Executive's position with the Company shall
initially be Senior Vice President, Investments and President of CCM and such
other positions as may be determined from time to time by the Board.

         4. Extent of Services. Executive, subject to the direction and control
of the Reporting Officer and the Board, shall have the power and authority
commensurate with his executive status and necessary to perform his duties
hereunder. The Company agrees to provide to Executive such assistance and work
accommodations as are suitable to the character of his positions with the
Company and adequate for the performance of his duties. Executive shall devote
his entire employable time, attention and best efforts to the business of the
Company, and shall not, without the consent of the Company, during the term of
this Agreement be actively engaged in any other

                                        1

<PAGE>   2

business activity, whether or not such business activity is pursued for gain,
profit or other pecuniary advantage; but this shall not be construed as
preventing Executive from investing his assets in such form or manner as will
not require any services on the part of Executive in the operation of the
affairs of the companies in which such investments are made. For purposes of
this Agreement, full-time employment shall be the normal work week for
individuals in comparable executive positions with the Company.

         5. Compensation.

            (a) As compensation for services hereunder rendered during the term
         hereof, Executive shall receive a base salary ("Base Salary") of Two
         Hundred Fifty Thousand Dollars ($250,000) per year payable in equal
         installments in accordance with the Company's payroll procedure for its
         salaried employees. Salary and all other payments made pursuant to this
         Agreement shall be subject to withholding of taxes. Executive may
         receive increases in his Base Salary from time to time, based upon his
         performance in his executive and management capacity. The amounts of
         any such salary increases shall be approved by the Board or the
         Compensation Committee of the Board upon the recommendation of the
         Chief Executive Officer.

            (b) In addition to Base Salary, Executive may receive such other
         bonuses or incentive compensation as the Compensation Committee or the
         Board may approve from time to time, upon the recommendation of the
         Chief Executive Officer; provided, that Executive shall receive a cash
         bonus of at least Seven Hundred Fifty Thousand Dollars ($750,000) for
         each of the first two calendar years (i.e., 1999 and 2000) completed
         under this Agreement.

         6. Fringe Benefits.

            (a) Executive shall be entitled to participate in such existing
         employee benefit plans and insurance programs offered by the Company,
         or which it may adopt form time to time, for its executive management
         or supervisory personnel generally, in accordance with the eligibility
         requirements for participation therein. Nothing herein shall be
         construed so as to prevent the Company from modifying or terminating
         any employee benefit plans or programs, or employee fringe benefits, it
         may adopt from time to time.

            (b) During the term of this Agreement, the Company shall pay
         Executive a monthly automobile allowance in the amount of Six Hundred
         Dollars ($600), and the Company shall pay directly or shall reimburse
         Executive for the cost of fuel that he incurs in using his automobile.

            (c) Executive shall be entitled to four (4) weeks vacation with pay
         each year during the term hereof.

            (d) Executive may incur reasonable expenses for promoting the
         Company's business, including expenses for entertainment, travel, and
         similar items. The Company shall

                                        2

<PAGE>   3

         reimburse Executive for all such reasonable expenses upon Executive's
         periodic presentation of an itemized account of such expenditures.

            (e) The Company shall, upon periodic presentation of satisfactory
         evidence and to a maximum of Ten Thousand Dollars ($10,000) per each
         year of this Agreement, reimburse Executive for reasonable medical
         expenses incurred by Executive and his dependents which are not
         otherwise covered by health insurance provided to Executive under
         Section 6(a).

            (f) During the term of this Agreement, the Company shall at its
         expense maintain a term life insurance policy or policies on the life
         of Executive in the face amount of Five Hundred Thousand Dollars
         ($500,000), payable to such beneficiaries as Executive may designate.

         7. Disability. If Executive shall become physically or mentally
disabled during the term of this Agreement to the extent that his ability to
perform his duties and services hereunder is materially and adversely impaired,
his salary, bonus and other compensation provided herein shall continue while he
remains employed by the Company; provided, that if such disability (as confirmed
by competent medical evidence) continues for at least nine (9) consecutive
months, the Company may terminate Executive's employment hereunder in which case
the Company shall immediately pay Executive a lump sum payment equal to
one-quarter of the sum of his annual salary and bonus with respect to the most
recent fiscal year then ended and, provided further, that no such lump sum
payment shall be required if such disability arises primarily from: (a) chronic
depressive use of intoxicants, drugs or narcotics, or (b) intentionally
self-inflicted injury or intentionally self-induced sickness; or (c) a proven
unlawful act or enterprise on the part of Executive.

         8. Disclosure of Information. Executive acknowledges that in and as a
result of his employment with the Company, he has been and will be making use
of, acquiring and/or adding to confidential information of the Company of a
special and unique nature and value. As a material inducement to the Company to
enter into this Agreement and to pay to Executive the compensation stated in
Section 5, as well as any additional benefits stated herein, Executive covenants
and agrees that he shall not, at any time during or following the term of his
employment, directly or indirectly, divulge or disclose for any purpose
whatsoever, any confidential information that has been obtained by or disclosed
to him as a result of his employment with the Company, except to the extent that
such confidential information (a) becomes a matter of public record or is
published in a newspaper, magazine or other periodical available to the general
public, other than as a result of any act or omission of Executive, (b) is
required to be disclosed by any law, regulation or order of any court or
regulatory commission, department or agency, provided that Executive gives
prompt notice of such requirement to the Company to enable the Company to seek
an appropriate protective order or confidential treatment, or (c) is necessary
to perform properly Executive's duties under this Agreement. Upon the
termination of this Agreement, Executive shall return all materials obtained
from or belonging to the Company which he may have in his possession or control.

         9. Covenants Against Competition and Solicitation. Executive
acknowledges that the services he is to render to the Company are of a special
and unusual character, with a unique value to the Company, the loss of which
cannot adequately be compensated by damages or an action at

                                        3

<PAGE>   4

law. In view of the unique value to the Company of the services of Executive for
which the Company has contracted hereunder, because of the confidential
information to be obtained by, or disclosed to, Executive as hereinabove set
forth, and as a material inducement to the Company to enter into this Agreement
and to pay to Executive the compensation stated in Section 5, as well as any
additional benefits stated herein, and other good and valuable consideration,
Executive covenants and agrees that throughout the period Executive remains
employed hereunder and for one year thereafter, Executive shall not, directly or
indirectly, anywhere in the United States of America (i) render any services, as
an agent, independent contractor, consultant or otherwise, or become employed or
compensated by, any other corporation, person or entity engaged in the business
of selling or providing life, accident or health insurance products or services;
(ii) render any services, as an agent, independent contractor, consultant or
otherwise, or become employed or compensated by, any other corporation, person
or entity engaged in the business of selling or providing any lending or other
financial products or services that are competitive with the lending or other
financial products or services sold or provided by the Company or its
subsidiaries, (iii) render any services, as an agent, independent contractor,
consultant or otherwise, or become employed or compensated by, any other
corporation, person or entity engaged in the business of providing investment
management or advisory services; (iv) in any manner compete with the Company or
any of its subsidiaries; (v) solicit or attempt to convert to other insurance
carriers, finance companies or other corporations, persons or other entities
(including, without limitation, investment management or advisory firms)
providing these same or similar products or services provided by the Company and
its subsidiaries, any customers or policyholders of the Company, or any of its
subsidiaries; or (vi) solicit for employment or employ any employee of the
Company or any of its subsidiaries. The covenants of Executive in this Section 9
shall be void and unenforceable in the event of a Control Termination of this
Agreement as defined in Section 10 below. Should any particular covenant or
provision of this Section 9 be held unreasonable or contrary to public policy
for any reason, including, without limitation, the time period, geographical
area, or scope of activity covered by any restrictive covenant or provision, the
Company and Executive acknowledge and agree that such covenant or provision
shall automatically be deemed modified such that the contested covenant or
provision shall have the closest effect permitted by applicable law to the
original form and shall be given effect and enforced as so modified to whatever
extent would be reasonable and enforceable under applicable law.

         10. Termination.

            (a) Either the Company or Executive may terminate this Agreement at
         any time for any reason upon written notice to the other. This
         Agreement shall also terminate upon (i) the death of Executive or (ii)
         termination by the Company pursuant to Section 7.

            (b) In the event this Agreement is terminated by the Company and
         such termination is not pursuant to the last sentence of (a) above or
         for "just cause" as defined in (e) below and does not constitute a
         Control Termination as defined in (d) below, Executive shall be
         entitled to receive Executive's Base Salary, as determined pursuant to
         Section 5(a) hereof, for the remainder of the Basic Employment Period
         (provided, that, if such amount for the remainder of the Basic
         Employment Period aggregates less than $1,000,000, Executive shall
         receive

                                        4

<PAGE>   5

         an aggregate lump sum payment of $1,000,000) and all other unpaid
         amounts previously accrued or awarded pursuant to any other provision
         of this Agreement.

            (c) In the event this Agreement is terminated by the death of
         Executive, is terminated by the Company for "just cause" as defined in
         (e) below, or is terminated by Executive and such termination does not
         constitute a Control Termination as defined in (d) below, Executive
         shall be entitled to receive Executive's Base Salary as provided in
         Section 5(a) accrued but unpaid as of the date of termination, and all
         other unpaid amounts previously accrued or awarded pursuant to any
         other provision of this Agreement.

            (d) The term "Control Termination" as used herein shall mean (A)
         termination of this Agreement by the Company in anticipation of or not
         later than two years following a "change in control" of the Company (as
         defined below), or (B) termination of this Agreement by Executive
         following "change in control" of the Company (as defined below) upon
         the occurrence of any of the following events:

                   (i) a significant change in the nature or scope of
            Executive's authorities or duties from those in existence
            immediately prior to the change in control, a reduction in his total
            compensation from that in existence immediately prior to the change
            in control, or a breach by the Company of any other provision of
            this Agreement; or

                   (ii) the reasonable determination by Executive that, as a
            result of a change in circumstances significantly affecting his
            position, he is unable to exercise Executive's authorities, powers,
            functions or duties in existence immediately prior to the change in
            control, or

                   (iii) the Company's principal executive offices are moved
            outside the geographic area comprised of Marion County, Indiana, and
            the seven contiguous counties or Executive is required to work at a
            location other than the Company's principal executive offices; or

                   (iv) the giving of notice of termination by Executive during
            the 6-month period commencing six (6) months after the change in
            control.

The term "change in control" shall mean a change in control of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934 (the "Act")
if such Item 6(e) were applicable to the Company as such Item is in effect on
May 26, 1999; provided that, without limitation,

            (x) such a change in control shall be deemed to have occurred if and
         when either (A) except as provided in (y) below, any "person" (as such
         term is used in Sections 13(d) and 14(d) of the Act) is or becomes a
         "beneficial owner" (as such term is defined in Rule 13d-3 promulgated
         under the Act), directly or indirectly, of securities of the Company
         representing 25% or more of the combined voting power of the Company's
         then outstanding securities

                                        5

<PAGE>   6

         entitled to vote with respect to the election of its Board of Directors
         or (B) as the result of a tender offer, merger, consolidation, sale
         of assets, or contest for election of directors, or any combination of
         the foregoing transactions or events, individuals who, as of the date
         hereof, constitute the Board of Directors of the Company (the
         "Incumbent Board") cease to constitute at least a majority of such
         Board; provided, however, that any individual who becomes a director of
         the Company subsequent to the date hereof whose election was approved
         by a vote of at least a majority of the directors then comprising the
         Incumbent Board, shall be deemed to have been a member of the Incumbent
         Board; and provided further, that no individual who was initially
         elected as a director of the Company as a result of an actual or
         threatened election contest, as such terms are used in Rule 14a-11 of
         Regulation 14A promulgated under the Act, or any other actual or
         threatened solicitation of proxies or consents by or on behalf of any
         person other than the Board of Directors shall be deemed to have been a
         member of the Incumbent Board, or (C) any reorganization, merger or
         consolidation or the issuance of shares of common stock of the Company
         in connection therewith unless immediately after any such
         reorganization, merger or consolidation (i) more than 60% of the then
         outstanding shares of common stock of the corporation surviving or
         resulting from such reorganization, merger or consolidation and more
         than 60% of the combined voting power of the then outstanding
         securities of such corporation entitled to vote generally in the
         election of directors are then beneficially owned, directly or
         indirectly, by all or substantially all of the individuals or entities
         who were the beneficial owners, respectively, of the outstanding shares
         of common stock of the Company and the outstanding voting securities of
         the Company immediately prior to such reorganization, merger or
         consolidation and in substantially the same proportions relative to
         each other as their ownership, immediately prior to such
         reorganization, merger or consolidation, of the outstanding shares of
         common stock of the Company and the outstanding voting securities of
         the Company, as the case may be, and (ii) at least a majority of the
         members of the board of directors of the corporation surviving or
         resulting from such reorganization, merger or consolidation were
         members of the Board of Directors of the Company at the time of the
         execution of the initial agreement or action of the Board of Directors
         providing for such reorganization, merger or consolidation or issuance
         of shares of common stock of the Company, and

            (y) no change of control shall be deemed to have occurred if and
         when any such person becomes, with the approval of the Board of
         Directors of the Company, the beneficial owner of securities of the
         Company representing 25% or more but less than 50% of the combined
         voting power of the Company's then outstanding securities entitled to
         vote with respect to the election of its Board of Directors and in
         connection therewith represents, and at all times continues to
         represent, in a filing, as amended, with the Securities and Exchange
         Commission on Schedule 13D or Schedule 13G (or any successor Schedule
         thereto) that "such person has acquired such securities for investment
         and not with the purpose nor with the effect of changing or influencing
         the control of the Company, nor in connection with or as a participant
         in any transaction having such purpose or effect", or words of
         comparable meaning and import. The designation by any such person, with
         the approval of the Board

                                        6

<PAGE>   7

         of Directors of the Company, of a single individual to serve as a
         member of, or observer at meetings of, the Company's Board of
         Directors, shall not be considered "changing or influencing the control
         of the Company" within the meaning of the immediately preceding clause
         (B), so long as such individual does not constitute at any time more
         than one-third of the total number of directors serving on such Board.

Upon the occurrence of a change in control, the Company shall promptly notify
Executive in writing of the occurrence of such event (such notice, the "Change
in Control Notice"). If the Change in Control Notice is not given within 10 days
after the occurrence of a change in control the period specified in clause
(d)(A) of this Section 10 shall be extended until the second anniversary of the
date such Change in Control Notice is given.

            (e) For purposes of this Agreement "just cause" shall mean:

                (i) a material breach by Executive of this Agreement, the
            commission of gross negligence, or willful malfeasance or fraud or
            dishonesty of a substantial nature in performing Executive's
            services on behalf of the Company, which is in each case (A) willful
            and deliberate on Executive's part and committed in bad faith or
            without reasonable belief that such breach is in the best interests
            of the Company and (B) not remedied by Executive in a reasonable
            period of time after receipt of written notice from the Company
            specifying such breach;

                (ii) Executive's breach of any provisions of this Agreement, or
            his use of alcohol or drugs which interferes with the performance of
            his duties hereunder or which compromises the integrity and
            reputation of the Company, its employees, and products;

                (iii) Executive's conviction by a court of law, or admission
            that he is guilty, of a felony or other crime involving moral
            turpitude; or

                (iv) Executive's absence from his employment other than as a
            result of Section 7 hereof, for whatever cause, for a period of more
            than one (1) month, without prior written consent from the Company.

         11. Payments for Control Termination. In the event of a Control
Termination of this Agreement, the Company shall pay Executive and provide him
with the following:

            (a) During the remainder of the Basic Employment Period, the Company
         shall continue to pay Executive his Base Salary at the same rate as
         payable immediately prior to the date of termination plus the estimated
         amount of any bonuses to which he would have been entitled had he
         remained in the employ of the Company and a change in control of the
         Company had not occurred, which estimate shall be reasonable and made
         by the Company in good faith.

                                        7

<PAGE>   8

            (b) During the remainder of the Basic Employment Period, Executive
         shall continue to be treated as an employee under the provisions of all
         incentive compensation arrangements applicable to the Company's
         executive employees. In addition, Executive shall continue to be
         entitled to all benefits and service credits for benefits under
         medical, insurance and other employee benefit plans, programs and
         arrangements of the Company as if he were still employed under this
         Agreement and a change in control of the Company had not occurred.

            (c) If, despite the provisions of paragraph (b) above, benefits
         under any employee benefit plan shall not be payable or provided under
         any such plan to Executive, or Executive's dependents, beneficiaries
         and estate, because he is no longer an employee of the Company, the
         Company itself shall, to the extent necessary to provide the full value
         of such benefits and service credits to Executive, Executive's
         dependants, beneficiaries and estate, pay or provide for payment of
         such benefits and service credits for such benefits to Executive, his
         dependents, beneficiaries and estate.

            (d) If, despite the provisions of paragraph (b) above, benefits or
         the right to accrue further benefits under any stock option or other
         incentive compensation arrangement shall not be provided under any such
         arrangement to Executive, or his dependents, beneficiaries and estate,
         because he is no longer an employee of the Company, the Company shall,
         to the extent necessary, pay or provide for payment of such benefits to
         Executive, his dependents, beneficiaries and estate.

         12. Severance Allowance. In the event of a Control Termination of this
Agreement, Executive may elect, within 60 days after such Control Termination,
to be paid a lump sum severance allowance, in lieu of the termination payments
provided for in Section 11 above, in an amount which is equal to the sum of the
amounts determined in accordance with the following clauses (a) and (b):

            (a) an amount equal to the aggregate of salary payments for 60
         calendar months at the rate of Base Salary which he would have been
         entitled to receive in accordance with Section 5(a); and

            (b) an amount equal to the aggregate of 60 calendar months of bonus
         at the greater of (i) the monthly rate of the bonus payment for the
         annual bonus period immediately prior to this termination date, or (ii)
         the monthly rate of the estimated amount of the bonus for the annual
         bonus period which includes his termination date.

         In the event that Executive makes an election pursuant to this Section
to receive a lump sum severance allowance of the amount described in clauses (a)
and (b), then, in addition to such amount, he shall receive (i) in addition to
the benefits provided under any deferred compensation, retirement or pension
benefit plan maintained by the Company, the benefits he would have accrued under
such

                                        8

<PAGE>   9

benefit plan if he had remained in the employ of the Company and such plan had
remained in effect for 60 calendar months after his termination, which benefits
will be paid concurrently with, and in addition to, the benefits provided under
such benefit plan, and (ii) the employee benefits (including, but not limited
to, coverage under any medical insurance and life insurance arrangements or
programs) to which he would have been entitled under all employee benefit plans,
programs or arrangements maintained by the Company if he had remained in the
employ of the Company and such plans, programs or arrangements had remained in
effect for 60 calendar months after his termination; or the value of the amounts
described in clauses (i) and (ii) next preceding. The amount of the payments
described in the preceding sentence shall be determined and such payments shall
be distributed as soon as it is reasonably possible.

         13. Tax Indemnity Payments.

            (a) Anything in this Agreement to the contrary notwithstanding, in
         the event it shall be determined that any payment or distribution by
         the Company or its affiliated companies to or for the benefit of
         Executive, whether paid or payable or distributed or distributable
         pursuant to the terms of the Agreement or otherwise but determined
         without regard to any additional payments required under this Section
         13 (a "Payment"), would be subject to the excise tax imposed by Section
         4999 of the Internal Revenue Code of 1986 (as amended the "Code"), or
         any successor provision (collectively, "Section 4999"), or any interest
         or penalties are incurred by Executive with respect to such excise tax
         (such excise tax, together with any such interest and penalties, are
         hereinafter collectively referred to as the "Excise Tax"), then
         Executive shall be entitled to receive an additional payment (a
         "Gross-Up Payment") in an amount such that after payment by Executive
         of all taxes (including any interest or penalties imposed with respect
         to such taxes), including, without limitation, any Federal, state or
         local income and employment taxes and Excise Tax (and any interest and
         penalties imposed with respect to any such taxes) imposed upon the
         Gross-Up Payment, Executive retains an amount of the Gross-Up Payment
         equal to the Excise Tax imposed upon the Payments.

            (b) Subject to the provisions of Section 13(c), all determinations
         required to be made under this Section 13, including whether and when a
         Gross-Up Payment is required and the amount of such Gross-Up Payment
         and the assumptions to be utilized in arriving at such determination,
         shall be made by the Company's public accounting firm (the "Accounting
         Firm") which shall provide detailed supporting calculations both to the
         Company and Executive within fifteen (15) business days of the receipt
         of notice from Executive that there has been a Payment, or such earlier
         time as is requested by the Company. In the event that the Accounting
         Firm is serving as accountant or auditor for the individual, entity or
         group effecting the Change in Control, Executive may appoint another
         nationally recognized public accounting firm to make the determinations
         required hereunder (which accounting firm shall then be referred to as
         the Accounting Firm hereunder). All fees and expenses of the Accounting
         Firm shall be borne solely by the Company. Any Gross-Up Payment, as
         determined pursuant to this Section 13, shall be paid by the Company to

                                        9

<PAGE>   10

         Executive within five (5) days of the receipt of the Accounting Firm's
         determination. If the Accounting Firm determines that no Excise Tax is
         payable by Executive, it shall furnish Executive with a written opinion
         that failure to report the Excise Tax on Executive's applicable federal
         income tax return would not result in the imposition of a negligence or
         similar penalty. Any determination by the Accounting Firm shall be
         binding upon the Company and Executive. As a result of the uncertainty
         in the application of Section 4999 at the time of the initial
         determination by the Accounting Firm hereunder, it is possible that
         Gross-Up Payments which will not have been made by the Company should
         have been made by the Company ("Underpayment"), consistent with the
         calculations required to be made hereunder. In the event that the
         Company exhausts its remedies pursuant to Section 13(c) and Executive
         thereafter is required to make a payment of any Excise Tax, the
         Accounting Firm shall determine the amount of the Underpayment that has
         occurred and any such Underpayment shall be promptly paid by the
         Company to or for the benefit of Executive.

            (c) Executive shall notify the Company in writing of any claim by
         the Internal Revenue Service that, if successful, would require a
         payment by the Company of, or a change in the amount of the payment by
         the Company of, the Gross-Up Payment. Such notification shall be given
         as soon as practicable after Executive is informed in writing of such
         claim and shall apprise the Company of the nature of such claim and the
         date on which such claim is requested to be paid; provided that the
         failure to give any notice pursuant to this Section 13(c) shall not
         impair Executive's rights under this Section 13 except to the extent
         the Company is materially prejudiced thereby. Executive shall not pay
         such claim prior to the expiration of the 30-day period following the
         date on which Executive gives such notice to the Company (or such
         shorter period ending on the date that any payment of taxes with
         respect to such claim is due). If the Company notifies Executive in
         writing prior to the expiration of such period that it desires to
         contest such claim, Executive shall:

                (1) give the Company any information reasonably requested by the
            Company relating to such claim,

                (2) take such action in connection with contesting such claim as
            the Company shall reasonably request in writing from time to time,
            including, without limitation, accepting legal representation with
            respect to such claim by an attorney reasonably selected by the
            Company,

                (3) cooperate with the Company in good faith in order
            effectively to contest such claim, and

                (4) permit the Company to participate in any proceedings
            relating to such claim;

                                       10

<PAGE>   11

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income, employment or other tax
(including interest and penalties with respect thereto) imposed as a result of
such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 13(c), the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct Executive to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided further, that if the Company directs Executive
to pay such claim and sue for a refund, the Company shall advance the amount of
such payment to Executive on an interest-free basis and shall indemnify and hold
Executive harmless, on an after-tax basis, from any Excise Tax or income,
employment or other tax (including interest or penalties with respect to any
such taxes) imposed with respect to such advance or with respect to any imputed
income with respect to such advance; and provided further, that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and Executive shall be entitled to settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

            (d) If, after the receipt by Executive of an amount advanced by the
         Company pursuant to Section 13(c), Executive becomes entitled to
         receive, and receives, any refund with respect to such claim, Executive
         shall (subject to the Company's complying with the requirements of
         Section 12(c)) promptly pay to the Company the amount of such refund
         (together with any interest paid or credited thereon after taxes
         applicable thereto). If, after the receipt by Executive of an amount
         advanced by the Company pursuant to Section 13(c), a determination is
         made that Executive shall not be entitled to any refund with respect to
         such claim and the Company does not notify Executive in writing of its
         intent to contest such denial of refund prior to the expiration of
         thirty (30) days after such determination, then such advance shall be
         forgiven and shall not be required to be repaid and the amount of such
         advance shall offset, to the extent thereof, the amount of Gross-Up
         Payment required to be paid.

         14. Payment for Options. In the event of a Control Termination of this
Agreement, Executive may also elect, within sixty (60) days after such Control
Termination, to receive (in addition to any other amounts owed to Executive
under this Agreement) a lump sum payment in cash equal to the sum of the
following: (i) all or any portion of the number of shares of common stock of the
Company which may be acquired pursuant to options granted by the Company and
held by Executive at the time of such election, multiplied, with respect to
shares subject to any such options by the difference between the Conseco Put
Price and the respective exercise price under such option

                                       11

<PAGE>   12

with respect to such shares; plus (ii) all or any portion of the number of
Successor Securities which may be acquired pursuant to options (which options
were granted to Executive in exchange or substitution for options to acquire the
common stock of the Company) held by Executive at the time of such election,
multiplied with respect to shares subject to any such options relating to
Successor Securities, by the difference between the Successor Security Put Price
and the respective exercise price under such option with respect to such shares.
The cash payment due from the Company pursuant to this Section 14 shall be made
to Executive within ten (10) days after the date of such election hereunder,
against the execution and delivery by Executive to the Company of an appropriate
agreement confirming the surrender to the Company of the options in respect of
which the lump sum cash payment is being made to Executive.

               "Successor Securities" means any securities of any person
received by the holders of the common stock of the Company in exchange,
substitution or payment for, or upon conversion of, the common stock of the
Company in connection with a change in control.

               "Conseco Put Price" means the greater of (i) the Change in
Control Price or (ii) the Current Market Price of the common stock of the
Company.

               "Successor Security Put Price" means the greater of (i) the
Change in Control Price divided by the Exchange Ratio or (ii) the Current Market
Price of the Successor Securities.

               "Current Market Price" for any security means the average of the
daily Prices per security for the twenty (20) consecutive trading days ending on
the trading day which is immediately prior to Executive's election under this
Section 14.

               "Price" for any security means the average of the highest and
lowest sales price of such security (regular way) on a trading day as shown on
the Composite Tape of the New York Stock Exchange (or, if such security is not
listed or admitted to trading on the New York Stock Exchange, on the principal
national securities exchange on which such security is listed or admitted to
trading) or, in case no sales take place on such day, the average of the closing
bid and asked prices on the New York Stock Exchange (or, if such security is not
listed or admitted to trading on the New York Stock Exchange, on the principal
national securities exchange on which such security is listed or admitted to
trading) or, if it is not listed or admitted to trading on any national
securities exchange, the average of the highest and lowest sales prices of such
security on such day as reported by the NASDAQ Stock Market, or in case no sales
take place on such day, the average of the closing bid and asked prices as
reported by NASDAQ, or if such security is not so reported, the average of the
closing bid and asked prices as furnished by any securities broker-dealer of
recognized national standing selected from time to time by the Company (or its
successor in interest) for that purpose.

               "Change in Control Price" means (i) in the case of a change in
control which occurs solely as a result of a change in the composition of the
Board of Directors of the Company or which occurs in a transaction, or series of
related transactions, in which the same consideration is paid or delivered to
all of the holders of common stock of the Company (or, in the event of an
election by

                                       12

<PAGE>   13

holders of the common stock of the Company of different forms of consideration,
if the same election is offered to all of the holders of common stock of the
Company), the Price per share of the common stock of the Company on the date on
which the change in control occurs, or if such date is not a trading day, then
the trading day immediately prior to such date, or (ii) in the case of a change
in control effected through a series of related transactions, or in a single
transaction in which less than all of the outstanding shares of common stock of
the Company is acquired, the highest price paid to the holders of common stock
of the Company in the transaction or series of related transactions whereby the
change in control takes place. In determining the highest price paid to the
holders pursuant to clause (ii) of the immediately preceding sentence, in the
case of Successor Securities paid or delivered to the holders of common stock of
the Company in exchange, payment or substitution for, or upon conversion of, the
common stock of the Company, the price paid to such holders shall be the Price
of such security at the time or times paid or delivered to such holders.

             "Exchange Ratio" means, in connection with a change in control,
the number of Successor Securities to be paid or delivered to the holders of
common stock of the Company in exchange, payment or substitution for, or upon
conversion of, each share of such common stock.

         15. Character of Termination Payments. The amounts payable to Executive
upon any termination of this Agreement shall be considered severance pay in
consideration of past services rendered on behalf of the Company and his
continued service from the date hereof to the date he becomes entitled to such
payments. Executive shall have no duty to mitigate his damages by seeking other
employment and, should Executive actually receive compensation from any such
other employment, the payments required hereunder shall not be reduced or offset
by any such other compensation.

         16. Right of First Refusal to Purchase Stock. Executive agrees that
         the Company shall have throughout the Basic Employment Period the right
of first refusal to purchase all or any portion of the shares of the Company's
common stock owned by him (the "Shares") at the following price:

            (a) in the event of a bona fide offer for the Shares, or any part
         thereof, received by Executive from any other person (a "Third Party
         Offer"), the price to be paid by the Company shall be the price set
         forth in such Third Party Offer; and

            (b) in the event Executive desires to sell the Shares, or any part
         thereof, in the public securities market, the price to be paid by the
         Company shall be the last sale price quoted on the New York Stock
         Exchange (or any other exchange or national market system upon which
         price quotations for the Company's common stock are regularly
         available) for the Company's common stock on the last business day
         preceding the date on which Executive notifies the Company of such
         desire.

         In the event Executive shall receive a Third Party Offer which he
desires to accept, he shall deliver to the Company a written notification of the
terms thereof and the Company shall have a

                                       13

<PAGE>   14

period of 48 hours after such delivery in which to notify Executive of its
desire to exercise its right of first refusal hereunder.

         In the event Executive desires to sell any portion of the Shares in the
public market he shall deliver to the Company a written notification of the
amount of Shares he desires to sell, and the Company shall have a period of 24
hours after such delivery to notify Executive of its desire to exercise its
right of first refusal hereunder with respect to such amount of Shares.

         Upon each exercise by the Company of its right of first refusal
hereunder, it shall make payment to Executive for the Shares in accordance with
standard practice in the securities brokerage industry. After each failure by
the Company to exercise its right of first refusal hereunder, Executive may
proceed to complete the sale of Shares pursuant to the Third Party Offer or in
the open market in accordance with his notification to the Company, but his
failure to complete such sale within two weeks after his notification to the
Company shall reinstate the Company's right of first refusal with respect
thereto and require a new notification to the Company.

                                       14

<PAGE>   15

         17. Arbitration of Disputes; Injunctive Relief.

            (a) Except as provided in paragraph (b) below, any controversy or
         claim arising out of or relating to this Agreement or the breach
         thereof, shall be settled by binding arbitration in the City of
         Indianapolis, Indiana, in accordance with the laws of the State of
         Indiana by three arbitrators, one of whom shall be appointed by the
         Company, one by Executive and the third of whom shall be appointed by
         the first two arbitrators. If the first two arbitrators cannot agree on
         the appointment of a third arbitrator, then the third arbitrator shall
         be appointed by the Chief Judge of the United States District Court for
         the Southern District of Indiana. The arbitration shall be conducted in
         accordance with the rules of the American Arbitration Association,
         except with respect to the selection of arbitrators which shall be as
         provided in this Section. Judgment upon the award rendered by the
         arbitrators may be entered in any court having jurisdiction thereof. In
         the event that it shall be necessary or desirable for Executive to
         retain legal counsel and/or incur other costs and expenses in
         connection with the enforcement of any and all of his rights under this
         Agreement, the Company shall pay (or Executive shall be entitled to
         recover from he Company, as the case may be) his reasonable attorneys'
         fees and costs and expenses in connection with the enforcement of any
         arbitration award in court, regardless of the final outcome, unless the
         arbitrators shall determine that under the circumstances recovery by
         Executive of all or a part of any such fees and costs and expenses
         would be unjust.

            (b) Executive acknowledges that a breach or threatened breach by
         Executive of Sections 8 or 9 of this Agreement will give rise to
         irreparable injury to the Company and that money damages will not be
         adequate relief for such injury. Notwithstanding paragraph (a) above,
         the Company and Executive agree that the Company may seek and obtain
         injunctive relief, including, without limitation, temporary restraining
         orders, preliminary injunctions and/or permanent injunctions, in a
         court of proper jurisdiction to restrain or prohibit a breach or
         threatened breach of Section 8 or 9 of this Agreement. Nothing herein
         shall be construed as prohibiting the Company from pursuing any other
         remedies available to the Company for such breach or threatened breach,
         including the recovery of damages from Executive.

         18. Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and if sent by registered mail to
his residence, in the case of Executive, or to the business office of its Chief
Executive Officer, in the case of the Company.

         19. Waiver of Breach and Severability. The waiver by either party of a
breach of any provision of this Agreement by the other party shall not
operate\or be construed as a waiver of any subsequent breach by either party. In
the event any provision of this Agreement is found to be invalid or
unenforceable, it may be severed from the Agreement and the remaining provisions
of the Agreement shall continue to be binding and effective.

         20. Entire Agreement. This instrument contains the entire agreement of
the parties and supersedes all prior agreements between them. This agreement may
not be changed orally, but only

                                       15

<PAGE>   16

by an instrument in writing signed by the party against whom enforcement of any
waiver, change, modification, extension or discharge is sought.

         21. Binding Agreement and Governing Law; Assignment Limited. This
Agreement shall be binding upon and shall inure to the benefit of the parties
and their lawful successors in interest and shall be construed in accordance
with and governed by the laws of the State of Indiana. This Agreement is
personal to each of the parties hereto, and neither party may assign nor
delegate any of its rights or obligations hereunder without the prior written
consent of the other.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                                             CONSECO, INC.

                                             By: /s/ Stephen C. Hilbert
                                                 -------------------------------
                                                 Stephen C. Hilbert
                                                 Chairman of the Board

                                                 "Company"

                                                 /s/ Maxwell E. Bublitz
                                                 -------------------------------
                                                 Maxwell E. Bublitz

                                                 "Executive"

                                       16

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