CONSECO INC
EXHIBIT 10.1
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>exhibit101.txt
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
                                                                    Exhibit 10.1


                             AMENDMENT NO. 1 TO THE
                      AMENDED AND RESTATED CREDIT AGREEMENT

     AMENDMENT NO. 1 TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment") dated as of June 12, 2007, by and among CONSECO, INC., a Delaware
corporation (the "Borrower"), the lenders providing the Commitment Increase (as
defined in the Credit Agreement referred to below) signatory hereto
(collectively, the "Increasing Lenders") and the other lenders signatory hereto
and BANK OF AMERICA, N.A., as administrative agent (the "Agent") for the
Lenders.

     PRELIMINARY STATEMENTS:

     (1) The Borrower, the Subsidiary Guarantors referred to therein, the
Lenders, the Agent and JPMorgan Chase Bank, N.A. ("JPMC"), as syndication agent,
have entered into a Second Amended and Restated Credit Agreement dated as of
October 10, 2006 (as amended, restated, supplemented or otherwise modified
through the date hereof, the "Credit Agreement"). Capitalized terms not
otherwise defined in this Amendment have the same meanings as specified in the
Credit Agreement.

     (2) The Borrower has requested a Commitment Increase in respect of the Term
Facility in a principal amount of $200,000,000 pursuant to Section 2.14 of the
Credit Agreement. Each Increasing Lender has provided a commitment in the amount
set forth opposite such Increasing Lender's name on Schedule 2.01 to this
Amendment to make a term loan having the same terms as the existing Term Loans.
Such incremental commitments and Term Loans are referred to herein as the
"Incremental Facility."

     (3) As provided in Section 2.14 of the Credit Agreement, the Borrower and
the Agent hereby agree to make certain technical amendments to the Credit
Agreement to add the Incremental Facility thereto, as hereinafter set forth.

     (4) The Borrower has also requested (a) an increase in the principal amount
of permitted Commitment Increases pursuant to Section 2.14 of the Credit
Agreement to $330 million (after giving effect to the Incremental Facility, but
with Commitment Increases to be limited to $130 million during the first year
following the Amendment No. 1 Effective Date (as defined below)) and (b) an
increase in the general basket for Restricted Payments under Section 7.08(g) of
the Credit Agreement to $300 million, to be measured from and after the
Amendment No. 1 Effective Date (as defined in Section 3 below).

     NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the sufficiency and receipt of all of which is hereby
acknowledged, the parties hereto hereby agree as follows:

     SECTION 1. Amendments to Credit Agreement. Upon, and subject to, the
satisfaction (or waiver) of the conditions precedent set forth in Section 3
below, the Credit Agreement is hereby amended as follows:

     (a) Section 1.01 of the Credit Agreement is hereby amended by adding in the
appropriate alphabetical order the following new definitions:

<PAGE>

          "`Additional Term Commitment' means, with respect to each Increasing
     Lender, the commitment of such Increasing Lender to make an Additional Term
     Loan pursuant to Amendment No. 1 and Section 2.14 of this Agreement, in the
     amount set forth opposite such Increasing Lender's name on Schedule 2.01 to
     Amendment No. 1."

          "`Additional Term Loans' means $200,000,000 of incremental Term Loans
     made by the Increasing Lenders pursuant to Amendment No. 1 and Section 2.14
     of this Agreement."

          "`Amendment No. 1' means Amendment No. 1 to this Agreement dated as of
     June 12, 2007."

          "`Amendment No. 1 Effective Date' means June 12, 2007, which is the
     date of satisfaction (or waiver) of the conditions precedent set forth in
     Section 3 of Amendment No. 1."

          "`Increasing Lender' has the meaning specified therefor in Amendment
     No. 1.

     (b) The definition of "Security Agreement" contained in Section 1.01 to the
Credit Agrement is hereby amended in its entirety to read as follows:

          "Security Agreement" means the Guarantee and Security Agreement, dated
     as of June 22, 2004, among the Obligors and the Agent, as modified,
     supplemented, and amended from time to time.

     (c) The definition of "Term Commitment" contained in Section 1.01 to the
Credit Agreement is hereby amended in its entirety to read as follows:

          "`Term Commitment' means, as to each Term Lender, its obligation to
     make Term Loans to the Company pursuant to Section 2.01 in an aggregate
     principal amount at any one time outstanding not to exceed (a) in the case
     of any initial Term Lender, the amount set forth opposite such Term
     Lender's name on Schedule 2.01 under the caption "Term Commitment", (b) in
     the case of any Increasing Lender, the amount set forth opposite such
     Increasing Lender's name on Schedule 2.01 under the caption "Additional
     Term Commitment" or (c) otherwise, the amount set forth opposite the
     caption "Term Commitment" in the Assignment and Assumption pursuant to
     which such Term Lender becomes a party hereto, as applicable, as such
     amount may be adjusted from time to time in accordance with this
     Agreement."

     (d) Section 2.01(a) of the Credit Agreement is hereby amended in its
entirety to read as follows:

          "(i) Subject to the terms and conditions set forth herein, each Term
     Lender severally agrees to make a single loan (together with the Additional
     Term Loans, each a "Term Loan") to the Company on the Effective Date in an
     amount not to exceed such Term Lender's Term Commitment at such time and
     (ii) each Lender with an Additional Term Commitment agrees to make an
     Additional Term Loan to the Borrower on the Amendment No. 1 Effective Date
     in a principal amount not to exceed its Additional Term Commitment. Each
     Borrowing under this Section 2.01(a) shall consist of Term Loans made
     simultaneously by the Term Lenders ratably according to their Term
     Commitments. Amounts borrowed under this Section 2.01(a) and repaid or
     prepaid may not be reborrowed."

     (e) Section 2.01(b) of the Credit Agreement is hereby amended by adding the
following provision immediately before the period at the end thereof:

<PAGE>

          "; provided that Additional Term Loans shall initially bear interest
     at the rate in effect for the existing Term Loans then outstanding until
     the end of the Interest Period then in effect with respect thereto"

     (f) Section 2.05(b)(i) of the Credit Agreement is hereby amended by adding
to the end thereof, immediately before the period, the following language: ",
except that the Additional Term Commitments will terminate upon the making of
the Additional Term Loans".

     (g) Section 2.07(a) is hereby amended in its entirety to read as follows:

          "Term Loans. The Company shall repay to the Agent, (i) for the ratable
     account of the Term Lenders (other than the Increasing Lenders), the
     following percentages of the initial aggregate principal amount of all Term
     Loans (other than the Additional Term Loans) on the following dates (which
     percentages shall be reduced as a result of the application of prepayments
     in accordance with the order of priority set forth in Section 2.08(c)):
<TABLE>
<CAPTION>

                              ------------------------------------------------ -------------------------------
                                                   Date                                  Percentage
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              <S>                                              <C>
                              December 31, 2006                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2007                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2007                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2007                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2007                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2008                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2008                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2008                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2008                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2009                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2009                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2009                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2009                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2010                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2010                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2010                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2010                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2011                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2011                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2011                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2011                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2012                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2012                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2012                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2012                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2013                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2013                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2013                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------

                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              Maturity Date                                            93%
                                                                                       ---
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------

                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              Total                                                   100.00%
                              ------------------------------------------------ -------------------------------
</TABLE>
<PAGE>

     and (ii) for the ratable account of the Increasing Lenders, the following
     percentages of the initial aggregate principal amount of all Additional
     Term Loans on the following dates (which percentages shall be reduced as a
     result of the application of prepayments in accordance with the order of
     priority set forth in Section 2.08(c)):
<TABLE>
<CAPTION>

                              ------------------------------------------------ -------------------------------
                                                   Date                                  Percentage
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              <S>                                              <C>
                              September 30, 2007                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2007                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2008                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2008                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2008                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2008                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2009                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2009                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2009                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2009                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2010                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2010                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2010                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2010                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2011                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2011                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2011                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2011                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2012                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2012                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2012                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              December 31, 2012                                         0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              March 31, 2013                                            0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              June 30, 2013                                             0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              September 30, 2013                                        0.25%
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------

                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              Maturity Date                                            93.75%
                                                                                       ------
                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------

                              ------------------------------------------------ -------------------------------
                              ------------------------------------------------ -------------------------------
                              Total                                                   100.00%
                              ------------------------------------------------ -------------------------------
         "
</TABLE>

     (h) Section 2.14 of the Credit Agreement is hereby amended in its entirety
to read as follows:

          "Incremental Facility. The Company may, at any time prior to the
     Maturity Date, by notice to the Agent, request the addition of up to two
     new facilities or up to two increases in the Term Facility (each such
     increase or any new facility being a "Commitment Increase") equal to up to
     $330,000,000 (after giving effect to the Additional Term Loans incurred on
     the Amendment No. 1 Effective Date, but with Commitment Increases made
     during the first year following the Amendment No. 1 Effective Date to be
     limited to $130,000,000) in the aggregate for all Commitment Increases, to
     be effective as of a date that is at least 90 days prior to the scheduled

<PAGE>


     Maturity Date (for each such Commitment Increase, an "Increase Date") as
     specified in the related notice to the Agent; provided, however, that (i)
     on any Increase Date the Company shall be in pro forma compliance with all
     financial covenants set forth in Sections 7.11, 7.12, 7.14 and 7.15; (ii)
     on any Increase Date, no Default or Event of Default shall have occurred
     and be continuing; (iii) each such Commitment Increase shall be documented
     on other terms and conditions that are reasonably satisfactory to the Agent
     and the Company; and (iv) if on the closing of any Commitment Increase, the
     applicable margin on such Commitment Increase is greater than 0.25% per
     annum above the Applicable Margin on the Term Facility, the Applicable
     Margin on the Term Facility shall be increased to a percentage per annum
     equal to (A) the applicable margin on such Commitment Increase minus (B)
     0.25% per annum; and (v) notwithstanding any other provision of any Loan
     Document (including, without limitation, Section 10.01), the Loan Documents
     may be amended by the Agent and the Company, if necessary, to provide for
     terms applicable to each Commitment Increase consistent with the terms
     hereof. Notwithstanding the foregoing, in no event shall any Lender be
     obligated to increase its Term Commitment or Revolving Credit Commitment in
     connection with any Commitment Increase."

     (i) Section 6.14 of the Credit Agreement is hereby amended in its entirety
to read as follows:

          "Use of Proceeds. (a) The Term Loans shall be used solely to (i)
     effect the Refinancing, (ii) pay fees and expenses incurred in connection
     with the Refinancing, (iii) fund the repurchase or redemption of CDOC
     Preferred Stock, (iv) make capital contributions to Insurance Subsidiaries
     and (v) in the case of the Additional Term Loans, or other Term Loans
     requested pursuant to Section 2.14, for general corporate purposes of the
     Company and its Subsidiaries, and (b) any Revolving Credit Loans shall be
     used solely for general corporate purposes of the Company and its
     Subsidiaries."

     (j) Clause (g)(i) of Section 7.08 of the Credit Agreement is hereby amended
in its entirety to read as follows:

          "(i) (A) during the twelve months commencing on the Amendment No. 1
     Effective Date, $200,000,000, and (B) thereafter $300,000,000 (in each
     case, less any amount thereof paid in any prior Fiscal Year, but following
     the Amendment No. 1 Effective Date),"

     (k) The Agent is irrevocably authorized to acknowledge and agree to any
reaffirmation of the Security Documents.

     (l) Section 10.07(b) of the Credit Agreement is hereby amended by (x)
deleting in the first proviso thereto the word "and" immediately prior to clause
(v) and inserting in its place a comma and (y) adding a new clause (vi) in the
first proviso thereto as follows:

          "and (vi) in the case of any assignment of a Term Loan, the assigning
     Lender shall specify whether all or a portion of such assigned Term Loan
     constitutes an Additional Term Loan"

     (m) Schedule 2.01 to the Credit Agreement is amended and restated as set
forth on Schedule 2.01 to this Amendment.

     SECTION 2. Additional Term Commitment. Each Increasing Lender hereby
acknowledges that it has made the Additional Term Commitment set forth opposite
such Increasing

<PAGE>

Lender's name on Schedule 2.01 to this Amendment. Each of the Borrower and each
Increasing Lender hereby agrees that from and after the Amendment No. 1
Effective Date (as defined below), such Increasing Lender shall be a "Term
Lender" for all purposes under the Credit Agreement.

     SECTION 3. Conditions to Effectiveness. This Amendment shall become
effective as of the date (the "Amendment No. 1 Effective Date") on which the
following conditions shall have been satisfied (or waived):

          (a) The Agent shall have received the following documents, each dated
     as of the Amendment No. 1 Effective Date:

               (i) counterparts of this Amendment executed by the Loan Parties,
          each Increasing Lender and, in the case of Section 1(g) and (i) above,
          the Required Lenders;

               (ii) counterparts of the Consent executed by the Subsidiary
          Guarantors;

               (iii) a Loan Notice as required by Section 2.03 of the Credit
          Agreement with respect to the Borrowing of the Additional Term Loans;

               (iv) a certificate of a Responsible Officer of the Borrower, the
          statements in which shall be true, certifying that (i) the
          representations and warranties set forth in Article 5 of the Credit
          Agreement are true and correct in all material respects as of the
          Amendment No. 1 Effective Date, with the same effect as though made on
          and as of such date, except to the extent such representations and
          warranties expressly relate to an earlier date (in which case such
          representations and warranties shall be true and correct in all
          material respects as of such earlier date), (ii) at the time of and
          immediately after the Borrowing of the Additional Term Loans, no
          Default or Event of Default shall have occurred and be continuing and
          (iii) immediately prior to and after giving effect to the Amendment
          No. 1 Effective Date (and the making of the Additional Term Loans),
          the Borrower is in compliance, on a pro forma basis, with Sections
          7.11, 7.12, 7.14 and 7.15 of the Credit Agreement;

               (v) a certificate of the secretary or assistant secretary or
          similar officer of each Obligor dated the Amendment No. 1 Effective
          Date and certifying:

                    (A) that attached thereto is a true and complete copy of the
               by-laws (or limited partnership agreement, limited liability
               company agreement or other equivalent governing documents) of
               such Obligor as in effect on the Amendment No. 1 Effective Date
               and at all times since a date prior to the date of the
               resolutions described in clause (B) below,

                    (B) that attached thereto is a true and complete copy of
               resolutions duly adopted by the board of directors (or equivalent
               governing body) of such Obligor (or its managing general partner
               or managing member) authorizing the execution, delivery and
               performance of this Amendment or the Consent to which such person
               is a party and, in the case of the Borrower, the borrowings of
               the Additional Term Loans, and that such resolutions have not
               been modified, rescinded or amended and are in full force and
               effect on the Amendment No. 1 Effective Date,

<PAGE>

                    (C) that attached thereto is a true and complete copy of the
               certificate or articles of incorporation, certificate of limited
               partnership or certificate of formation as in effect on the
               Amendment No. 1 Effective Date, and

                    (D) that attached thereto is a certificate of good standing
               or equivalent document for each Obligor from the Secretary of
               State (or similar, applicable Governmental Authority) of its
               state of incorporation or organization as of a recent date;

          provided, that with respect to any constituent document or resolution
          (to the extent the same authorizes this Amendment) required to be
          delivered pursuant to this clause (iii) that was delivered on the
          Effective Date and has not since been amended or otherwise modified,
          the applicable Obligor may be permitted to certify as such in lieu of
          delivery of such document or resolution; and

               (vi) a written opinion (addressed to the Agent and the Increasing
          Lenders and dated the Amendment No. 1 Effective Date) of Kirkland &
          Ellis LLP, counsel for the Obligors, reasonably acceptable to the
          Agent.

          (b) No later than 15 days, or such later time that the Administrative
     Agent reasonably agrees, after the Amendment No. 1 Effective Date, the
     Agent shall have received a written opinion (addressed to the Agent and the
     Increasing Lenders and dated the Amendment No. 1 Effective Date) of Baker &
     Daniels LLP, Indiana counsel for the Obligors, reaosnably acceptable to the
     Agent. Failure to deliver such opinion shall constitute an Event of Default
     under the Credit Agreement.

          (c) The Borrower shall have paid or caused to be paid, in cash, all
     fees which have been separately agreed in writing (including the fees of
     the Agent and JPMC, as arrangers for this Amendment) and all reasonable and
     invoiced out-of-pocket expenses of the Agent in connection with this
     Amendment.

     SECTION 4. Reference to and Effect on the Credit Agreement and the Loan
Documents. (a) On and after the effectiveness of this Amendment, each reference
in the Credit Agreement to "this Agreement", "hereunder", "hereof" or words of
like import referring to the Credit Agreement, and each reference in the Notes
and each of the other Loan Documents to "the Credit Agreement", "thereunder",
"thereof" or words of like import referring to the Credit Agreement, shall mean
and be a reference to the Credit Agreement, as amended by this Amendment.

     (b) The Credit Agreement, the Notes and each of the other Loan Documents,
as specifically amended by this Amendment (and as contemplated to be amended,
modified, supplemented, restated, substituted or replaced by this Amendment) are
and shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed. Without limiting the generality of the foregoing, the
Security Documents and all of the Collateral described therein do and shall
continue to secure the payment of all Obligations of the Obligors under the Loan
Documents, in each case, as amended by this Amendment.

     (c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of any Lender, any Issuing Bank or the Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

<PAGE>

     SECTION 5. Expenses. The Borrower agrees that all reasonable out-of-pocket
expenses incurred by the Agent in connection with the preparation, execution,
delivery and administration, modification and amendment of this Amendment and
the other instruments and documents to be delivered hereunder or in connection
herewith (including, without limitation, the reasonable fees, charges and
disbursements of counsel for the Agent), are expenses that the Borrower is
required to pay or reimburse pursuant to Section 10.04 of the Credit Agreement.

     SECTION 6. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute but one and the same agreement. Delivery
of an executed counterpart of a signature page to this Amendment by telecopier
or electronic transmission (e.g., .pdf or .tif file) shall be effective as
delivery of a manually executed counterpart of this Amendment.

     SECTION 7. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.



            [The remainder of this page is intentionally left blank]

<PAGE>



     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                           CONSECO, INC., as Borrower


                           By /s/ Daniel J. Murphy
                             -------------------------------------------
                             Name: Daniel J. Murphy
                             Title: Senior Vice President and Treasurer

                           BANK OF AMERICA, N.A., as Agent


                           By /s/ Kip Davis
                             --------------------------------------------
                              Name: Kipling Davis
                              Title: Senior Vice President

</TEXT>
</DOCUMENT>
