Document:

Exhibit 10.43

    Exhibit
      10.43

    
 

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    AGREEMENT,
      dated as of the 4th day of December, 2006, by and between Arrhythmia Research
      Technology, Inc., a Delaware corporation (“ART”) having an office and place of
      business at 25 Sawyer Passway, Fitchburg, Massachusetts 01420 (hereinafter,
      together with any consolidated subsidiary, referred to as the “Company”) and
      James E. Rouse, an individual (hereinafter referred to as
“Executive”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      the Company recognizes the Executive’s past and potential contribution to the
      growth and success of the Company and the Board of Directors, on the advice
      of
      its Compensation Committee, desires to assure the Executive’s employment in an
      executive capacity and Executive desires to continue to render services to
      the
      Company in such capacity; and

     

    WHEREAS,
      Executive is currently employed by the Company pursuant to an Employment
      Agreement dated October 5,2001, and 

     

    WHEREAS,
      the parties desire to further the goals of stability and security, both with
      respect to the Company and with respect to the Executive by entering into this
      Executive Employment Agreement (this “Agreement”);

     

    NOW,
      THEREFORE, in consideration of these premises and other good and valuable
      consideration, the receipt, adequacy and sufficiency of which are hereby
      acknowledged, the Company and Executive hereby agree as follows:

     

    1.  Employment.
      During
      the Period of Employment (as hereinafter defined), and subject of the provisions
      of this Agreement, the Company agrees to employ Executive, and Executive agrees
      to be so employed in the capacity of President and Chief Executive Officer
      of
      ART and its wholly-owned subsidiary, Micron Products, Inc. 

     

    2.  Term.
      This
      Agreement shall be effective as of October 5, 2006, (the “Effective Date”).
      Subject to the terms hereinafter provided, the term of employment shall be
      from
      the Effective Date through the fifth anniversary of the Effective Date (the
      “Period of Employment”).

     

    3.  Duties.
      Executive agrees to perform such reasonable responsibilities and duties
      commensurate with such executive and managerial positions as set forth in the
      respective Bylaws of ART and Micron and shall at all times during the Period
      of
      Employment discharge his duties, in accordance with the policies of the Company
      as established from time to time, under the supervision and direction of the
      Company's Board of Directors. Executive shall conscientiously devote all of
      his
      time and attention and best efforts during working hours in the discharging
      of
      his duties. It is understood and agreed that Executive’s present duties
      generally require a minimum of forty (40) hours during each working
      week.

     

    4.  Compensation.
      For all
      services rendered by the Executive in any capacity during the Period of
      Employment, including, without limitation, services as an executive officer,
      director or member of any committee of the Company, or any subsidiary, affiliate
      or division thereof, the Executive shall be compensated as follows:

     

    a.  Base
      Compensation.
      The
      Company shall pay to Executive base compensation at the rate of $230,000 per
      annum, commencing as of October 5, 2006, which base compensation shall be paid
      to Executive in installments in accordance with the general practice of the
      Company, subject to withholding and other applicable taxes. The Executive’s base
      compensation, bonus and other perquisites shall be subject to an annual review
      and modification by the Board of Directors in its discretion upon the
      recommendation of the Compensation Committee, provided, however, that
      Executive’s base compensation shall be increased by at least $10,000 as of
      October 5, 2007, and by at least $10,000 as of October 5, 2008. 

     

    b.  Bonus
      Compensation and Option Plans.
      In
      addition to his base compensation set forth in Section 4(a) above, Executive
      shall be entitled to participate in such bonus compensation and employee benefit
      plans as the Company may institute from time to time in the discretion of the
      Compensation Committee upon the approval of the Board of Directors, including
      fringe benefit, defined compensation and stock option and stock award plans
      or
      programs of the Company, if any, to the extent that his position, tenure and
      other qualifications make him eligible to participate, subject to the terms
      of
      such plans or programs and the discretion of the Compensation
      Committee.

     

    c.  Expenses.
      The
      Executive shall be entitled to receive prompt reimbursement for all reasonable
      expenses incurred by him in accordance with the policies and procedures
      established by the Board for the senior executive officers of the Company in
      performing services hereunder and as required to preserve any deductions for
      federal income taxation purposes to which the Company may be
      entitled.

     

    d.  Other
      Benefits.
      The
      Company agrees to provide to Executive such hospital, surgical, dental and
      medical benefits and at a cost that is normally provided to its other executive
      officers under the Company's group health plans together with paid sick leave,
      all in accordance with the policies of the Company. In addition, the company
      agrees to purchase, at its expense, a term life insurance policy on the life
      of
      the Executive in the amount of $500,000 for the benefit of Executive’s estate or
      other beneficiary selected by Executive from time to time.

     

    5.  Non-Disclosure,
      Inventions, Non-Solicitation and Non-Compete.
      The
      parties hereto recognize that it is fundamental to the business and operation
      of
      the Company, its affiliates, subsidiaries and divisions thereof to preserve
      the
      specialized knowledge, trade secrets, and confidential information of the
      Company including, but not limited to, the research, development, design,
      manufacturing processes, formulas, data, engineering and manufacturing,
      know-how, design, improvements, discoveries, strategies, forecasts, projections,
      proprietary software programs, trade secrets, licenses, prices, costs, supplier
      lists, marketing practices, pricing practices, profit margins, analytical
      techniques, concepts, ideas, customer and client agreements, vendor and supplier
      agreements and information with respect to the Company’s proprietary processes
      (whether or not patentable) which are not in the public domain (collectively,
      the “Confidential Information”). In addition, the strength and good will of the
      Company is derived from the specialized knowledge, trade secrets, and
      confidential information generated from experience through the activities
      undertaken by the Company, its affiliates, subsidiaries and divisions thereof.
      The disclosure of any of such information and the knowledge thereof on the
      part
      of competitors would be beneficial to such competitors and detrimental to the
      Company, its affiliates, subsidiaries and divisions thereof. By reason of his
      position with the Company, in the course of his employment, the Executive has
      or
      shall have access to, and has obtained or shall obtain, specialized knowledge,
      trade secrets and confidential information such as that described herein about
      the business and operation of the Company, its affiliates, subsidiaries and
      divisions thereof. Therefore, the Executive hereby agrees as follows,
      recognizing and acknowledging that the Company is relying on the following
      in
      entering into this Agreement:

     

    a.  Confidential
      Information.
      Except
      as required in the course of performing his duties hereunder, the Executive
      shall keep secret and retain in strict confidence the Confidential Information,
      and shall not use, disclose to others, or publish any information, other than
      information which is in the public domain or becomes publicly available through
      no wrongful act on the part of the Executive (which information shall be deemed
      not to be Confidential Information) relating to the business, operation or
      other
      affairs of the Company, any affiliates, subsidiaries and divisions thereof,
      including but not limited to Confidential Information and any and all other
      trade secrets and Confidential Information acquired by him in the course of
      his
      past or future services for the Company or any affiliate, subsidiary or division
      thereof. The Executive shall hold as the Company's property all notes,
      memoranda, books, records, papers, letters, formulas and other data and all
      copies thereof and therefrom in any way relating to the business, operation
      or
      other affairs of the Company, its affiliates, subsidiaries and divisions
      thereof, whether made by him or otherwise coming into his possession. Upon
      termination of his employment or upon the demand of the Company, at any time,
      the Executive shall deliver the same to the Company within twenty-four (24)
      hours of such termination or demand.

     

    Executive
      represents that he has not previously, other than as required to perform his
      duties as an executive officer of the Company, disclosed any information or
      knowledge that would have fallen within the definition of "Confidential
      Information", that he has not transferred the physical embodiment of such
      information or knowledge, and that he has not appropriated such information
      or
      knowledge for the benefit of himself or any third party. 

     

    b.  Inventions.
      Executive hereby assigns and conveys and agrees to assign and convey to the
      Company all of his right, title,
      and
      interest in and to any Proprietary Inventions (as hereinafter defined) and
      acknowledges that the Company is and shall be the exclusive owner of any
      Proprietary Inventions, including patents and other rights related to any
      discovery, invention, improvement, process, formula, or technique, whether
      or
      not patentable, that Executive made, may make, conceived, or reduced to
      practice, either alone or with others, either (i) in the course of performing
      work for the Company or at the Company's expense, or (ii) that results from
      tasks assigned to him by the Company, or (iii) which relates to the business
      of
      the Company whose creation ordinarily would be associated with his then current
      responsibilities as an Executive of the Company (hereinafter “Proprietary
      Inventions”). 

     

    Executive
      will promptly disclose to the Company all such Proprietary Inventions and will
      help the Company, at its expense, obtain and enforce patents or Proprietary
      Inventions in any countries it selects, and Executive will execute any related
      documents, including, without limitation, application papers for patents,
      assignments, affidavits and oaths of facts within his knowledge, and assignment
      of his right, title and interest in and to Proprietary Inventions and related
      patent applications and patents to the Company or its designee. Executive will
      do any other things the Company requests to convey to, or vest in, the Company
      the rights, titles, benefits, and privileges intended to be conveyed.
      Executive's obligation under this paragraph shall continue after the termination
      of his employment, subject to the Company's compensating him at a reasonable
      rate for time actually spent by him at the Company's request after termination.
      

     

    Executive
      acknowledges that all works of authorship (including, without limitation, works
      or authorship that contain software program code) that Executive produces
      during, and within the scope of, his employment by the Company under this
      Agreement or any prior or subsequent employment agreement, whether they are
      or
      are not created on the Company's premises or during hours in which he is
      supposed to be rendering services to the Company, are works made for hire and
      are the property of the Company, and that copyrights in those works of
      authorship are the property of the Company. If for any reason it appears that
      the Company is not the author of any such works of authorship for copyright
      purposes, Executive hereby expressly assigns all of his rights in and to that
      work to the Company and agrees to sign any instrument of specific assignment
      requested. 

     

    If
      Executive is identified as an inventor in any application for any United States
      or foreign patent where the invention (i) is claimed to have been made,
      conceived, or reduced to practice during the first year after termination of
      his
      employment by the Company and (ii) would have been a Proprietary Invention
      relating to the Company’s business if it occurred before the termination of his
      employment, then that invention shall be rebuttably presumed to be a Proprietary
      Invention.

     

    c.  Non-Competition.
      While
      Executive is employed by the Company and for a period which is the greater
      of
      (i) two (2) years after Executive’s employment by the Company terminates or (ii)
      the period for which Executive receives payments in accordance with Section
      7(d)
      hereof, he will not directly or indirectly engage in activities in competition
      with the business activities of the Company, its subsidiaries and divisions,
      or
      perform services for or invest in any person, entity, or organization
      competitive with the Company, whether as an individual, owner, partner,
      stockholder, director, officer, employee, representative or consultant,
      provided, however, that nothing herein shall limit or restrict the Executive’s
      investment in less than 5% of the securities of a corporation subject to the
      reporting requirements of Section 13 or Section 15(d) of the Securities Exchange
      Act of 1934, as amended. 

     

    d.  Non-Solicitation.
      While
      Executive is employed by the Company and for a period which is the greater
      of
      (i) two (2) years after Executive’s employment by the Company terminates or (ii)
      the period for which Executive receives payments in accordance with Section
      7(d)
      hereof, he will not individually, or on behalf of or through any third party,
      directly or indirectly, solicit, entice or persuade any employee, other
      executive officer of or consultant to the Company to leave the services of
      the
      Company for any reason. 

     

    6.  Assignment.
      The
      rights and obligations of the parties hereto shall bind and inure to the benefit
      of each of the parties hereto and shall also bind and inure to the benefit
      of
      any successor or successors of the Company by reorganization, merger or
      consolidation and any assignee of all or substantially all of the Company’s
      business and properties, but, except as to any such successor or assignee of
      the
      Company, neither this Agreement nor any rights or benefits hereunder may be
      assigned by the Company or the Executive.

     

    7.  Termination.
      This
      Agreement may be terminated during the Period of Employment as
      follows:

     

    a.  Termination
      for Cause by the Company; without Good Reason by Executive.
      If the
      Company terminates the Executive’s employment for “Cause” (as hereinafter
      defined) or the Executive terminates his employment other than for “Good Reason”
(as hereinafter defined), the Period of Employment shall terminate immediately
      and Executive shall be entitled to the compensation earned prior to the date
      of
      termination as provided for in this Agreement, computed pro rata up to and
      including the date of termination. Executive shall be entitled to no further
      compensation or benefits under this Agreement. 

     

    For
      purposes of this Agreement, “Cause” for Executive’s termination shall exist at
      any time after the happening of one or more of the following
      events:

     

    i.  Executive
      shall have committed any material breach of any material provisions or covenants
      herein which the Executive does not or is unable to cure within fifteen (15)
      days after the Company provides written notice of such breach to the Executive,
      or 

     

    ii.  Executive
      shall have (x) committed any act of malfeasance or dishonesty against the
      Company, or (y) been convicted of, or pleaded guilty or no contest to, fraud,
      misappropriation or embezzlement or a felony involving a crime of moral
      turpitude, or (z) engaged in conduct materially injurious to the Company; or
      

     

    iii.  Executive
      shall have (x) willfully violated one or more written policies of the Company,
      (y) failed or refused to comply with a lawful directive of the Board of
      Directors, or (z) engaged in willful or gross neglect of duties for which the
      Executive is employed (other than on account of a medically determinable
      Disability (as hereinafter defined) which renders the Executive incapable of
      performing such services). 

     

    For
      purposes of this section, except upon failure to comply with a lawful directive
      of the Board, no act or failure to act on the Executive’s part shall be
      considered “willful” if done or omitted to be done by him in good faith and upon
      reasonable belief that his act or omission was in the best interest of the
      Company. 

     

    b.  Termination
      for Other Specified Causes.
      The
      Period of Employment shall terminate immediately on the occurrence of any one
      of
      the following events: 

     

    i.  The
      occurrence of circumstances that make it impossible or impracticable for the
      business of the Company to be continued (other than a Change of Control (as
      hereinafter defined));

     

    ii.  The
      death
      of Executive; or

     

    iii.  The
      Disability (as hereinafter defined) of Executive, unless waived by the
      Company.

     

    For
      purposes of this Agreement, “Disability” shall mean the continued incapacity
      (due to a cause other than an industrial accident) on the part of Executive
      (i)
      because of which the Executive is unable to perform the principal duties of
      his
      employment for a continuous period of 180 days or (ii) which, in the judgment
      of
      the Board of Directors based on a written certificate of a physician (reasonably
      acceptable to the Company and the Executive or Executive’s personal
      representative) renders the Executive incapable of performing the principal
      duties of his employment. The determination of the physician selected under
      this
      Paragraph 7(b)(iii) will be binding on both parties. The Executive must submit
      to a reasonable number of examinations by the physician making the determination
      of disability under this Section 7(b) and the Executive hereby authorizes the
      disclosure and release to the Company of such determination and all supporting
      medical records. If the Executive is not legally competent, the Executive’s
      legal guardian or duly authorized attorney-in-fact will act in the Executive’s
      stead for the purposes of selecting the physician, submitting the Executive
      to
      the examinations, and providing the authorization of disclosure as required
      under this Section 7(b). If the Company and Executive (or Executive’s
      representative) are unable to agree upon an acceptable physician, then the
      determination of Disability shall be made by the majority vote of a panel of
      three (3) physicians, one selected by Employer, one selected by Executive (or
      Executive’s representative) and the third selected by the first
      two.

     

    In
      the
      event of the termination of the Period of Employment for any of the reasons
      set
      forth in Paragraphs 7(b)(i), (ii) or (iii) Executive shall be entitled to the
      compensation earned prior to the date of termination as provided for in this
      Agreement, computed pro rata up to and including the date of termination. In
      addition, in the event of termination of the Period of Employment for reasons
      set forth in Paragraph 7(b)(ii) or (iii), the Executive, or the Executive’s
      surviving spouse and dependents in the event of Executive’s death, shall be
      entitled to continued coverage under the Company’s hospital, surgical, dental
      and medical plans to the same extent as provided prior to the death or
      Disability of Executive for the greater of the remaining Period of Employment
      as
      in effect immediately prior to such termination or two (2) years following
      the
      death or Disability of Executive. 

     

    c.  Termination
      Without Cause by Company; For Good Reason by Executive.
      If the
      Company terminates the Executive’s employment during the Period of Employment
      without Cause upon giving thirty (30) days’ notice to Executive, or if the
      Executive terminates his employment with Good Reason upon giving thirty (30)
      days’ notice to the Company, the Period of Employment shall immediately upon the
      conclusion of such notice period terminate and the Executive shall be entitled
      to no further payments or benefits hereunder except that the Company shall
      pay
      to Executive the greater of his then current annual base compensation for the
      remaining Period of Employment as in effect immediately prior to such
      termination or his then current annual base compensation for a period of
      twenty-four (24) months from the date of termination. Any such payment shall
      be
      payable in four (4) bi-annual payments, the first of which must be paid within
      thirty (30) days of such termination. Executive shall also be entitled to all
      hospital, surgical, dental and medical benefits to which he would be entitled
      if
      he remained in the employ of the Company until the earlier of (i) twenty-four
      (24) months from the date of termination or (ii) the date Executive becomes
      eligible to be enrolled in a new employer-sponsored medical insurance plan.
      Executive shall not be entitled to any other severance payment. 

     

    “Good
      Reason” shall mean the occurrence of any of the following during the Period of
      Employment:

     

    i.  Any
      reduction in the Executive’s then current annual base compensation without the
      Executive’s prior written consent; or

     

    ii.  A
      material change in the Executive’s position causing it to be of materially less
      stature or responsibility or a material change in the Executive’s duties,
      authorities, responsibilities or reporting relationship, but in each case only
      without the Executive’s prior consent and if the Company does not cure such
      change within thirty (30) days after the Executive provides written notice
      of
      such material change to the Company; or

     

    iii.  The
      Company materially breaches this Agreement and does not cure such breach within
      thirty (30) days after the Executive provides written notice of such breach
      to
      the Company. 

     

    d.  Termination
      Following Change of Control.
      If
      during the Period of Employment the Company terminates the Executive’s
      employment or the Executive terminates his employment for Good Reason, in either
      case in accordance with Section 7(c), during the pendency of or following a
      Change of Control (as hereinafter defined), the Period of Employment shall
      immediately thereafter terminate and the Executive shall be entitled to no
      further payments or benefits hereunder, other than accrued payments or benefits
      and benefits in accordance with this Section 7(d), except that the Company
      shall
      pay to Executive the greater of two (2) times the Executive’s then current
      annual base compensation or the Executive’s then current annual base
      compensation for the remaining Period of Employment as in effect immediately
      prior to such termination. Any such payment shall be payable in four (4)
      bi-annual payments, the first of which must be paid within thirty (30) days
      of
      such termination. Executive shall also be entitled to all hospital, surgical,
      dental and medical benefits to which he would be entitled if he remained in
      the
      employ of the Company until the earlier of (i) twenty-four (24) months from
      the
      date of termination or (ii) the date Executive becomes eligible to be enrolled
      in a new employer-sponsored medical insurance plan. As used in this Section
      7(d)
      the term “Company” shall mean the resulting or surviving transferee corporation,
      partnership or joint venture or other entity upon conclusion of a Change of
      Control. 

     

    For
      purposes of this Agreement, a “Change of Control” shall be deemed to occur upon
      closing of the following:

     

    i.  A
      merger,
      consolidation, liquidation or reorganization of the Company into or with another
      company or other legal person, after which merger, consolidation, liquidation
      or
      reorganization the capital stock of the Company outstanding prior to
      consummation of the transaction is not converted into or exchanged for or does
      not represent more than 50% of the aggregate voting power of the surviving
      or
      resulting entity;

     

    ii.  The
      direct or indirect acquisition by any person (as the term “person” is used in
      Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended)
      of more than fifty percent (50%) of the voting capital stock of the Company,
      in
      a single or series of related transactions; or

     

    iii.  The
      sale,
      exchange, or transfer of all or substantially all of the Company’s assets (other
      than a sale, exchange or transfer to one or more entities where the stockholders
      of the Company immediately before such sale, exchange or transfer retain,
      directly or indirectly, at least a majority of the beneficial interest in the
      voting stock of the entity or entities to which the assets were
      transferred).

     

    8.  Remedies
      for Breach.
      The
      parties recognize that the services to be performed by Executive are special
      and
      unique. Accordingly, if Executive breaches the terms and conditions of this
      Agreement, or shall threaten a breach of any such terms and conditions, then
      the
      Company shall be entitled to institute legal and equitable proceedings in any
      court of competent jurisdiction. Notwithstanding anything else contained herein,
      the Company may seek to obtain damages for any breach of this Agreement, to
      enforce its specific performance by Executive, or to obtain injunctive relief,
      without the necessity of posting a bond, to protect itself from such
      breach.

     

    9.  Partial
      Invalidity.
      Wherever possible each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law. Moreover, in the
      event
      that any one or more of the provisions hereof shall be held to be excessively
      broad as to duration, geographic scope, activity or subject, such provision
      shall be construed by limiting and reducing it in accordance with a judgment
      of
      a court of competent jurisdiction, so as to be enforceable under the specific
      circumstances of the particular case. Such holding shall, to the extent
      possible, not affect the validity or enforceability of any other provision
      hereof or of this Agreement as a whole. The parties acknowledge that they have
      closely examined and carefully negotiated the terms of this Agreement, deem
      such
      terms fair and adequate and wish them to be preserved.

     

    10.  Notices.
      Any
      notice to be delivered under this Agreement shall be deemed sufficiently given
      if in writing and delivered personally or mailed by certified mail, postage
      prepaid, to Executive at his then current residence address as on file with
      the
      Company, and to the Company at 25 Sawyer Passway, Fitchburg, Massachusetts
      01420, Attn: Chairman of the Board, or to any changed address that either party
      may designate by like notice. The effective date of such notice shall be its
      mailing date. 

     

    11.  Surviving
      Clauses.
      The
      provisions of Sections 5, 7, 9 and 12(f) will survive the expiration or
      termination of this Agreement and will continue in full force and
      effect.

     

    12.  Miscellaneous.

     

    a.  Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties with respect to
      its
      subject matter and supersedes any previous oral or written communications,
      representations, understandings or agreements. Any amendment, modification
      or
      waiver of this Agreement shall be effective only if evidenced by a written
      instrument executed by both parties, and in the case of the Company, upon
      written authorization of the Company's Board of Directors. 

     

    b.  Binding
      Effect.
      All
      terms and provisions of this Agreement shall be binding upon and inure to the
      benefit of and be enforceable by the parties, and their respective heirs,
      successors, assigns, and legal representatives. 

     

    c.  Non-Waiver.
      No
      delay or omission in enforcing any of the terms or conditions of this Agreement
      shall be construed as or constitute a waiver thereof or bar thereto; nor shall
      a
      waiver on any one occasion be construed as a bar to or waiver of any right
      or
      remedy on any future occasion.

     

    d.  Applicable
      Law.
      This
      Agreement shall be governed by, subject to, and interpreted in accordance with
      the laws of the Commonwealth of Massachusetts. 

     

    e.  Headings.
      Headings in this Agreement shall not be used to interpret or construe its
      provisions.

     

    f.  Arbitration.
      Any
      controversy or claim arising out of or relating to this Agreement or to the
      breach thereof shall be first submitted to mediation within thirty (30) days
      of
      either party requesting same and, if not successful, shall be settled by binding
      arbitration in accordance with the laws of the State of Massachusetts conducted
      in the City of Boston or some other mutually agreed upon location, in accordance
      with the commercial rules of the American Arbitration Association. Judgment
      upon
      the award rendered by the arbitrators may be entered in any court having
      jurisdiction thereof. The arbitrator shall have the authority to award any
      and
      all remedies, whether equitable or compensable that could have been awarded
      by
      any court of competent jurisdiction, including attorney’s fees and costs, if
      appropriate. The cost of any arbitration proceeding conducted hereunder shall
      be
      borne equally between the Executive and the Company.

     

    g.  Counterparts.
      This
      Agreement may be executed in two counterparts, each of which is an original
      but
      which shall together constitute one and the same instrument.

     

    
 

    EXECUTED
      under seal as of the date set forth above.

     

    
      	 	
              ARRHYTHMIA
                RESEARCH TECHNOLOGY, INC.

               

            
	 	
              By:

            	
              /s/
                E.P. Marinos

            
	 	 	
              E.P.
                Marinos, Chairman of the Board

            
	 	 	 
	 	 	 
	 	
              EXECUTIVE:

            
	 	 
	 	
              /s/
                James E. Rouse

            
	 	
              James
                E. RouseAmended and Restated UTG Employee-Director Stock Purchase Plan

 

    
      Exhibit 10.3

       

      Amended and Restated
        UTG,
        Inc. Employee and Director Stock Purchase Plan

       

      COMMON STOCK

      (no par value)

       

      Background

       

      The
        United Trust Group, Inc. Employee and Director Stock Purchase
        Plan (the “Initial Plan”), was approved by the board of directors of United
        Trust Group, Inc. (“United”), on March 26, 2002, and was approved by the
        shareholders of United on June 11, 2002.  On July 1, 2005, United was
        merged into UTG, Inc., a Delaware corporation.  The purpose of the merger
        was to effect a reincorporation of United as a Delaware corporation.  The
        board of directors of UTG, Inc. now desires to adopt this Restated UTG, Inc.
        Employee and Director Stock Purchase Plan (the “Restated Plan”) in order to
        reflect UTG, Inc. as the successor by merger to United.  The Restated Plan
        is set forth in its entirety as follows:

       

      We
        desire to offer employees and directors of UTG, Inc. and its subsidiaries
        the
        opportunity to invest in shares of our common stock.  This document
        describes the plan we have established under which employees and directors
        may
        purchase shares of UTG, Inc. common stock.  

       

      Investing in shares under the plan is not
        without risks.  The price at which shares are being offered under this plan
        is not based on market price, and employees and directors investing in shares
        under the plan will be required to execute a stock restriction agreement. 
The stock restriction agreement imposes significant restrictions on the
        transferability of shares, and fixes the price at which a participant in
        the
        plan may be required to sell shares back to UTG, Inc. based on the change
        in the
        book value of the shares, not market value.

       

      A note about UTG, Inc.

       

      UTG, Inc. is a publicly-held company that
        files
        reports with the Securities and Exchange Commission pursuant to the Securities
        Exchange Act of 1934.  The common stock United Trust Group, Inc., the
        predecessor of UTG, Inc., was formerly traded on the Nasdaq Small Cap Stock
        Market.  Effective December 31, 2001, we voluntarily de-listed the shares
        of United Trust Group, Inc. from Nasdaq.  Shares of UTG, Inc. are now
        traded sporadically in the over-the-counter market.  

       

      Jesse Correll, and his affiliates and
        associates own a majority of our outstanding shares of common stock.

       

      How many shares may be issued under the plan

       

      The board of directors has authorized the
        issuance of a total of 400,000 shares of common stock pursuant to this
        plan.  The number of shares authorized to be issued under the plan will be
        subject to adjustment proportionately if there is a stock dividend, stock
        split
        or similar recapitalization event resulting in a change in shares of UTG,
        Inc.

       

      How the plan operates

       

                 
Annual offering of shares.  Eligible employees and directors
        of UTG,
        Inc. and its subsidiaries may be offered the opportunity to purchase a limited
        amount of shares of UTG, Inc. under the plan annually.  Each annual
        offering, if made, will remain open for a period of 30 days, during which
        directors and eligible employees selected by our board of directors may elect
        to
        purchase shares of UTG, Inc. under the plan.  An election to purchase
        shares will not be valid unless the employee/director meets the eligibility
        requirements to participate in the plan and, prior to the end of the offering
        period, 

       

      (1)   
        the employee/director delivers to UTG, Inc. a signed, completed subscription
        agreement, in the form attached as Exhibit A, together with payment in full
        of
        the purchase price of the shares, and

      (2)   
        the employee/director signs and delivers to UTG, Inc. a stock restriction
        agreement, in the form attached as Exhibit B.

       

                 
Limit on number of shares that may be
        purchased annually.  The board of
        directors of UTG, Inc. shall have discretion to determine the number of shares
        to be offered in any annual offering subject to the limitations in this plan
        and
        to determine the number of shares, if any, to be offered to each director
        or
        eligible employee in an annual offering under the plan.  No fractional
        shares will be issued, and any fractions will be rounded down to the next
        whole
        number.  

       

                 
Closing of annual offering.  The closing of an annual offering
        will
        occur within 5 business days following the end of the annual offering
        period.  At that time, certificates representing the shares purchased by a
        participating employee in an annual offering will be issued, in the name
        of the
        participating employee, and, if there has been an oversubscription, any excess
        funds received will be returned, by check, to participating employees (without
        interest).   

       

                 
Timing of annual offerings.  The board of directors of UTG, Inc.
        will
        determine if and when annual offerings of shares under the plan will be
        made.  

       

                 
Price of shares in an annual offering. The price at which shares will be
        offered in the first annual offering has been arbitrarily set at $12.00 per
        share. At each annual offering thereafter, the board of directors of UTG,
        Inc.
        will fix the price at which shares will be offered under the plan at the
        time it
        authorizes the annual offering.  In any case, the price at which shares
        will be offered under the plan will not be less than 100% of the fair market
        value of shares of UTG, Inc. at the time the offering is authorized by the
        UTG,
        Inc. board of directors.

       

      Eligibility requirements for participants

       

      The
        board of directors of UTG, Inc. shall have discretion to
        select the directors and eligible employees who will be extended the opportunity
        to purchase shares in any annual offering under the plan. Only individual
        employees of UTG, Inc. or its subsidiaries who either (1) serve as directors
        of
        UTG, Inc. or its subsidiaries or (2) have been employed full-time by UTG,
        Inc.
        or its subsidiaries for at least 1 year at the time of an offering of shares
        under the plan are eligible to participate and purchase shares in that offering
        under the plan.  Any person serving as a director of UTG, Inc. or any of
        its subsidiaries at the time of an offering of shares under the plan is eligible
        to participate and purchase shares in that offering under the plan. 

       

      The board of directors of UTG, Inc. may refuse
        to issue any shares to a person if it determines, in good faith, that the
        foregoing eligibility requirement was not met either during the annual offering
        period and at the time of the closing of the offering.  Independent
        contractors and other individuals who are not employees or directors are
        not
        eligible to participate in the plan.

       

      The
        employment relationship will be treated as continuing intact
        while an employee is on sick leave or other bona fide leave of absence for
        a
        period not to exceed 90 days.  Where the period of leave exceeds 90 days,
        the employment relationship will be deemed terminated on the 91st day
        of such leave.

       

      The opportunity to participate in the plan
        is
        personal to eligible employees and directors selected by the board of
        directors.  No right with regard to participation in the plan or right to
        purchase and receive shares of UTG, Inc. under the plan may be assigned,
        transferred, pledged or otherwise disposed of in any way by a participating
        employee or director.  Any such attempted assignment, transfer, pledge, or
        other disposition will be without effect.  An eligible employee’s or
        director’s right to purchase shares under the plan may be exercised only during
        the employee’s or director’s lifetime.

       

      A
        participating employee or director will have no interest in, or
        rights to, any shares under the plan until the certificate represented shares
        purchased by that participating employee has been issued.  

       

      Who administers the plan

       

      The
        plan is administered by the board of directors of UTG, Inc.
        The board of directors of UTG, Inc. has full power and authority to construe,
        interpret and administer the plan and may adopt rules and regulations for
        carrying out the plan.  The board of directors may make arrangements for
        individuals or organizations to assist in the administration of the plan. 
Decisions made by the board of directors of UTG, Inc. in the administration
        of
        the plan are final and binding absent manifest error.

       

      Conditions of the plan

       

      It
        is a condition of any offer of shares under this plan that the
        offer and sale of the shares are either exempt from the registration
        requirements imposed under the Securities Act of 1933 and applicable state
        securities laws or are duly registered in compliance with such registration
        requirements, and will be administered accordingly.  UTG, Inc. will not be
        obligated to offer or issue any shares under this plan if it determines,
        in good
        faith, that the offering or issuance of such sale violates any law.

       

      Until the shareholders of UTG, Inc. approve the participation of directors
        in the plan, directors of UTG, Inc. will not be entitled to participate in
        the
        plan, or in any offering under the plan, unless they are otherwise entitled
        to
        participate in the plan as eligible employees of UTG, Inc. and its subsidiaries.
        

       

      Transfer restrictions

       

      Shares issued under the Plan shall be subject to the restrictions on
        transferability contained in the stock restriction agreement and applicable
        restrictions under federal and state securities laws.  

       

      Amendment and termination of the plan

       

      The plan may be amended or terminated by
        the
        board of directors of UTG, Inc. at any time.  

       

      Construction of plan

       

      This plan shall be governed by the laws of Delaware. 

       

      No
        provision of this plan shall be construed as giving any person
        any right he would not otherwise have to become or remain an employee of
        UTG,
        Inc. or any of its subsidiaries or any other right not expressly created
        by such
        provision.

       

      No
        provision of this plan shall be construed as requiring Jesse
        Correll or any of his associates or affiliates to acquire or retain ownership
        of
        shares of UTG, Inc., or restrict in any way the issuance of shares of UTG,
        Inc.
        or the transfer of ownership or control of shares of any of UTG, Inc. or
        any of
        its subsidiaries.

       

      This plan is not intended to qualify as an “employee stock purchase plan”
under Section 423 of the Internal Revenue Code.

       

       

      Date the Initial Plan was approved by the board of directors of United
        Trust Group, Inc.: March 26, 2002

       

      Date the Initial Plan was approved by the shareholders of United Trust
        Group, Inc.: June 11, 2002

       

      Date the Restated Plan was approved by the board of directors of UTG,
        Inc.:
        December 6, 2006

       

       

                                        UTG,
        INC.

       

       

                                      By
        _____________________________

       

                                      Title
        ___________________________

       

      Exhibit A

       

      Subscription
        Agreement

      This
        Subscription Agreement is being delivered by the undersigned to
        UTG, Inc. (the “Company”) to purchase shares of Common Stock of the Company that
        are being offered to me pursuant to the Restated UTG, Inc. Employee and Director
        Stock Purchase Plan (the “Plan”).  I accept the Company’s offer and agree
        to purchase shares of Common Stock of the Company in the offering pursuant
        to
        the Plan as follows:

       

      Number of shares being purchased:  ________________________

       

      Price:  $____________ per share ($__________________ in the
        aggregate)

       

      Manner of payment:  
____________________________________________________________

       

      Please register the shares I am acquiring in my name (as printed below)
        at
        the following address:

       

      _____________________________________________________________________________

      [insert
        the
        address that will be used for the Company’s shareholders’ list]

      Accompanying this notice is the Restated Stock
        Restriction and Buy-Sell Agreement which I have executed and join in as a
        Shareholder of the Company.

      I agree and confirm that:

      ·        
I have received
        and read the Plan and agree to be bound by the terms and
        conditions contained in the Plan and in the Restated Stock Restriction and
        Buy-Sell Agreement.

      ·        
I have received
        a copy of the Prospectus relating to the shares being offered
        under the Plan, and the most recent annual report and annual meeting proxy
        materials of the Company.

      ·        
I understand
        that the transferability of the shares I am acquiring is subject to
        restrictions under the Restated Stock Restriction and Buy-Sell Agreement. 

      ·        
I agree that
        the certificates representing all shares of Common Stock acquired
        under the Plan will bear a legend providing notice that such shares are
        restricted and bound by the terms and conditions of the Restated Stock
        Restriction and Buy-Sell Agreement, as in effect from time to time. 

      The foregoing agreements, commitments and
        obligations are being made by and on behalf of and shall be binding on me
        and my
        heirs, legatees and legal representatives and any transferee with respect
        to all
        shares of Common Stock acquired pursuant to the Plan (or any shares of Common
        Stock issued pursuant to a stock dividend or stock split thereon or any
        securities issued in lieu thereof or in substitution or exchange
        therefor).

      This Subscription Agreement is being executed
        and delivered to the Company on _____________________

                [insert date]

       

                                                                                         
____________________________________ 

                                         
[signature]

       

                                                                                         
____________________________________

                                         
[printed name]

       

      UTG,
        Inc. 

      Amended
        and Restated Stock Restriction And Buy-Sell
        Agreement

       

      United
        Trust Group, Inc. ("United") adopted the United Trust
        Group, Inc. Stock Restriction and Buy-Sell Agreement (the “Initial Agreement”)
        effective November 1, 2002.  The Initial Agreement was amended and restated
        effective September 18, 2003 (the “Amended and Restated Agreement”).  On
        July 1, 2005, United was merged into UTG, Inc., a Delaware corporation (the
        “Company”).  The purpose of the merger was to effect a reincorporation of
        United as a Delaware corporation.  The board of directors of the Company
        now desires to restate the Amended and Restated Agreement in order to reflect
        UTG, Inc. as the successor by merger to United.  The Restated Stock
        Restriction and Buy-Sell Agreement is set forth in its entirety as
        follows:

       

      This
        Restated Stock Restriction and Buy-Sell
        Agreement (“Agreement”), dated January 24, 2007, is made and entered
        into by and among UTG, Inc., a Delaware corporation (the “Holding Company”), and
        the undersigned shareholders of the Holding Company (individually a
“Shareholder” and, collectively, the “Shareholders”).

       

      Background

       

      The
        Holding Company has adopted the Restated UTG, Inc. Employee
        and Director Stock Purchase Plan (the “Plan”) pursuant to which certain
        employees and directors of the Holding Company and its subsidiaries have
        been
        afforded the opportunity to purchase shares of common stock of the Holding
        Company.  Each of the Shareholders is executing this Agreement concurrently
        with the purchase of shares pursuant to the Plan.  As a condition to their
        participation in, and purchase of shares under, the Plan, the Shareholders
        are
        obligated to enter into this Agreement imposing certain restrictions and
        obligations on themselves and any shares of common stock of the Holding Company
        now or hereafter issued to them pursuant to the Plan (the “Shares”).  As
        used in this Agreement, the term “participant” refers to an employee or director
        of the Holding Company who purchases Shares from the Holding Company pursuant
        to
        the Plan.

       

      Now,
        therefore, in consideration of the premises
        and the mutual covenants hereinafter set forth and for other good and valuable
        consideration, the receipt and sufficiency of which are hereby acknowledged,
        the
        Holding Company and the Shareholders agree as follows:

       

      1.  
Restriction
        on Stock.  Except as
        otherwise provided in this Agreement, no Shareholder shall sell, transfer
        or
        otherwise dispose of (whether voluntarily or involuntarily or by operation
        of
        law) or agree or commit to sell, transfer, or otherwise dispose of all or
        any
        part of the Shares owned by the Shareholder without complying with the terms
        of
        this Agreement.

      2.  
Permitted Transfers
        and Sales of Shares.

      a.        
Any
        Shareholder
        may transfer all or any part of the Shares owned by such Shareholder by gift
        to
        or for the benefit of the Shareholder, the Shareholder’s spouse, or the
        Shareholder’s children.  The transferee shall receive, hold, and/or own
        such Shares subject to the terms of this Agreement and the obligations hereunder
        of the transferor Shareholder.

       

      b.        
Any
        Shareholder
        may pledge, mortgage or otherwise encumber the Shares owned by such Shareholder;
        provided, however, that this Agreement shall be binding upon the person in
        whose
        favor the Shareholder pledges, mortgages or otherwise encumbers any or all
        of
        such Shares, and the pledgee shall receive, hold, and/or own such Shares
        subject
        to the terms of this Agreement and the obligations hereunder of the pledgor
        Shareholder.  Notwithstanding the provisions of this Paragraph 2.b., any
        Shareholder may pledge, mortgage or otherwise encumber any or all of the
        Shares
        owned by them for the purpose of securing a loan or loans on behalf of the
        Holding Company or any affiliate of the Holding Company, and the pledgee
        of any
        such Shares shall receive, hold, and/or own such Shares free of the terms
        and
        restrictions contained in this Agreement and free of any obligations hereunder
        imposed on any Shareholder or any other person.  For purposes of this
        Agreement, an “affiliate” shall mean any entity which is controlled by the
        Holding Company or by Jesse Correll, either individually or collectively.

       

      c.        
Any
        Shareholder
        may sell, at any time, all or a portion of the Shares owned by such Shareholder
        in accordance with the provisions of this Paragraph 2.c. or Paragraph 2.d.
        below.  

       

      i.         
Such
        Shares must first be offered for sale to the Holding Company, and, within
        ten
        days of its receipt of such offer, the Holding Company

      (or
        its designee) shall purchase such Shares, at the price and in
        the manner provided in Paragraph 4; provided, however, that the selling 

      Shareholder
        shall sell to the Holding Company not less than the
        lesser of: 

       

      (1)       
        all of the Shares then owned by such Shareholder; or 

      (2)       
        that number of Shares whose fair value as determined in accordance with
        Paragraph 4 is at least $1,000.

       

      ii.         
If
        the
        Holding Company (or its designee) is unable to purchase all of the Shares
        to be
        sold, then the remaining Shareholders will have a 

      ten day
        option to purchase such Shares (or the remainder of such Shares if the Holding
        Company purchases less than all of the Shares offered for 

      sale). 
        All Shareholders who exercise their options to purchase such Shares may purchase
        an amount of such Shares equal to the percentage of 

      Shares
        they
        own of the total number of Shares owned by all of the Shareholders exercising
        their options, at the price and in the manner provided 

      in Paragraph
        4.

       

      iii.        
        If all or any part of the Shares of the selling Shareholder are not purchased
        by
        the Holding Company or the remaining Shareholders, or both, in accordance
        with
        the provisions of this Paragraph 2.c, then the selling Shareholder shall
        be free
        to sell all, but not less than all, of the Shares not purchased by Holding
        Company or the remaining Shareholders, for a period of 90 days from the
        expiration of the option of the remaining Shareholders; provided, however,
        that
        at the end of such 90-day period, all restrictions imposed by this Agreement
        shall again be applicable.

       

      d.        
Any
        Shareholder
        may sell, donate or otherwise transfer, at any time, all or a portion of
        the
        Shares owned by such Shareholder with the prior consent and approval of the
        board of directors of the Holding Company.  In considering any request by a
        Shareholder pursuant to this Paragraph 2.d., the board of directors shall
        not be
        deemed to be under any obligation to consent to or approve of such request
        and
        may condition its consent and approval on such terms and conditions as the
        board
        of directors of the Holding Company deems appropriate, in the exercise of
        its
        discretion.

       

      3.   Events
        Triggering Holding Company’s Right to Reacquire Shares.  

      a.        
Upon
        the death
        of any Shareholder, or the termination of any Shareholder’s employment with or
        service as a director of the Holding Company or any affiliate of the Holding
        Company (whether by reason of retirement, disability or voluntary or involuntary
        termination of employment, with or without cause), the Holding Company (or
        its
        designee) shall, at its option, have the right to purchase, and in the event
        of
        the exercise of such option, the Shareholder, or his or her personal
        representative, spouse and/or children, as the case may be, shall be required
        to
        sell, all or any part of such Shares: 

       

      i.         
        then held by such Shareholder; or 

       

      ii.         
        which were transferred by such Shareholder to or for the benefit of such
        Shareholder or his or her spouse or children in accordance with the terms
        of
        Paragraph 2.a of this Agreement; or 

       

      iii.        
        which were transferred to such Shareholder’s spouse in accordance with the terms
        of a decree of divorce.

       

      b.        
Upon
        a
        non-employee, non-director Shareholder’s divorce from the participant in the
        Plan from whom such Shareholder has acquired Shares, the Holding Company
        shall,
        at its option, have the right to purchase, and, in the event of the exercise
        of
        such option, the Shareholder shall be required to sell, all or any part of
        such
        Shares then held by such Shareholder, and, at the discretion of the board
        of
        directors of the Holding Company, any Shares which were transferred by such
        non-employee, non-director Shareholder to his or her children in accordance
        with
        Paragraph 2.a. 

       

      c.        
Such
        purchase
        by the Holding Company upon the exercise of its options to purchase granted
        under Paragraph 3.a or 3.b above shall be at the price and in the manner
        provided in Paragraph 4 of this Agreement and shall take place within 90
        days of
        such Shareholder’s death or termination of employment or the entry of a decree
        of divorce.

       

      d         
If
        all or
        any part of the Shares of the selling Shareholder (or his or her personal
        representative, spouse and/or children who are obligated to sell such Shares,
        as
        the case may be) are not purchased by the Holding Company in accordance with
        the
        provisions of this Paragraph 3, then the selling Shareholder (or his or her
        personal representative, spouse and/or children, as the case may be) shall
        be
        free to sell all, but not less than all, of the Shares not purchased by Holding
        Company for a period of 90 days from the expiration of the 90-day period
        set
        forth in Paragraph 3.c; provided, however, that at the end of such 90-day
        period, all restrictions imposed by this Agreement shall again be
        applicable.

       

      4.   Purchase
        Price and Terms of Purchase.  The purchase price for any Shares
        purchased pursuant to this Agreement shall be, on a per Share basis, equal
        to
        the sum of (i) the original purchase price(s) paid to acquire such Shares
        from
        the Holding Company at the time they were sold pursuant to the Plan and (ii)
        the
        consolidated statutory net earnings (loss) per Share of such Shares during
        the
        period from the end of the month next preceding the month in which such Shares
        were acquired pursuant to the Plan to the end of the month next preceding
        the
        month in which the closing of such purchase occurs.  The consolidated
        statutory net earnings per Share shall be computed as the net income of the
        Holding Company and its subsidiaries on a consolidated basis in accordance
        with
        statutory accounting principles applicable to insurance companies, as computed
        by the Holding Company, except that earnings of insurance companies or block
        of
        business acquired after the original plan date, November 1, 2002, shall be
        adjusted to reflect the amortization of intangibles established at the time
        of
        acquisition in accordance with generally accepted accounting principles (GAAP),
        less any dividends paid to shareholders. The calculation of net earnings
        per
        Share shall be performed on a monthly basis using the number of common shares
        of
        the Holding Company outstanding as of the end of the reporting period. The
        purchase price for any Shares purchased hereunder shall be paid in cash within
        60 days from the date of purchase subject to the receipt of any required
        regulatory approvals as provided in Paragraph 6 of this Agreement. 

      5.  
Tag-along Rights.  If, during the
        term of this Agreement, Jesse
        Correll and his affiliates sell, in one or a series of related transactions,
        more than 50% of the then outstanding shares of common stock of the Holding
        Company to any third party who is not an affiliate of Jesse Correll, then
        all of
        the Shareholders will be given the opportunity to sell their Shares either
        to
        such third party or to the Holding Company on the same terms and conditions
        as
        Jesse Correll and his affiliates.  

      6.  
Regulatory Approvals.  Should any regulatory
        approvals be required
        in connection with the purchase of any Shares provided for in this Agreement,
        the Shares and the purchase price therefor shall be escrowed pending receipt
        of
        such approvals.  Interest on the purchase price placed in escrow shall
        accrue to the benefit of the selling Shareholder regardless of whether the
        sale
        ultimately takes place.  Notwithstanding the necessity of obtaining any
        regulatory approval, the sale of any Shares hereunder must close, if at all,
        within 150 days from the date the Shares were first offered for sale or the
        date
        of death, termination of employment or divorce of a selling Shareholder.

      7.  
Endorsement on Stock
        Certificates.  All stock certificates
        representing the Shares of the Holding Company shall contain the following
        legend:

      “The shares represented by this
        certificate may not be transferred except in accordance with the terms contained
        in a certain Restated Stock Restriction and Buy-Sell Agreement dated as of
        January 24, 2007.  Transfers in violation of that Agreement are void. 
A copy of that Agreement may be obtained from UTG, Inc.”

      8.  
Notice. Any notice
        required or permitted under this Agreement shall be in
        writing, shall be delivered to the residence or principal place of business
        of
        the intended recipient as noted on the stock record books of the Holding
        Company, by either registered mail, overnight courier service or hand delivery,
        and shall be deemed received the third business day after such notice is
        deposited in the U.S. mail, postage prepaid the next business day after deposit
        with an overnight courier service or the date of hand delivery.

      9.   Binding
        Effect.  This Agreement shall be binding on the parties hereto, their
        successors, assigns, estates and heirs, and on any transferee of Shares of
        the
        Holding Company.  As a condition of any transfer of Shares, including any
        transfer on the books of the Holding Company and the issuance of certificates
        representing such Shares, the transfer must be made in accordance with this
        Agreement and the transferee of such Shares shall execute and become a party
        to
        this Agreement.  Any attempt to transfer Shares or to assign rights and
        obligations under this Agreement, whether voluntarily or by operation of
        law,
        shall be void and shall not be binding on the Holding Company or its
        Shareholders unless done in accordance with the terms of this Agreement.

      10. Other
        Shareholders.  The Holding Company may issue additional Shares pursuant
        to the Plan for such consideration as may be determined by the Board of
        Directors of the Holding Company.  The Holding Company agrees that no such
        Shares shall be issued pursuant to the Plan except upon agreement by the
        purchaser thereof to become a party to and be bound by the provisions of
        this
        Agreement by executing this Agreement in the spaces provided below.  From
        and after the date of issuance of such Shares, the purchaser thereof shall,
        for
        all purposes, be deemed to be a Shareholder as that term is used in this
        Agreement.

      11. Amendments and
        Waivers.  This Agreement may be amended or modified only by an
        instrument in writing signed by the Holding Company and the holders of a
        majority of the outstanding Shares that are subject to this Agreement, and
        any
        provision of this Agreement may be waived by the board of directors of the
        Holding Company; provided, however, that no such amendment, modification
        or
        waiver shall, unless by an instrument signed by the Holding Company and all
        of
        the Shareholders [i] differ in effect on any Shareholder in a material and
        adverse manner from the effect of such amendment, modification or waiver
        on the
        holders of a majority of the Shares, [ii] create any additional obligation
        for a
        Shareholder without creating similar obligations on the other Shareholders
        without the prior written consent of the Shareholder so affected, or [iii]
        alter
        the terms of Paragraph 5 of this Agreement.

      12. Termination of
        Agreement.  This Agreement may be voluntarily terminated by the
        affirmative vote of at least two-thirds of the outstanding Shares.  This
        Agreement will automatically terminate if Jesse Correll and his affiliates
        sell
        substantially all of their shares of common stock of the Holding Company
        and all
        Shareholders have had the same opportunity to sell their Shares as provided
        for
        in Paragraph 5.

      13.
Counterparts.  This Agreement
        may be executed in counterparts, all
        of which taken together shall constitute one and the same agreement.

      14. Retroactive Effect;
        Status of Initial Agreement.  This Agreement shall be binding upon each
        Shareholder who becomes a signatory to this Agreement and shall supersede
        the
        Initial Agreement with respect to all shares of common stock of the Holding
        Company issued to such Shareholder under the Plan.  The Initial Agreement
        shall remain in full force and effect with respect to any participant who
        is a
        signatory to the Initial Agreement who does not become a signatory to this
        Agreement.  In the event all participants who are signatories to the
        Initial Agreement become signatories to this Agreement, the Initial Agreement
        shall terminate and no longer be of any effect.  The failure of any such
        participant to become a signatory to this Agreement shall not affect the
        validity or enforceability of this Agreement against any signatory to this
        Agreement.

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

       

                                      UTG,
        INC.

       

       

                                      By
        _____________________________

       

                                      Title
        ___________________________

       

      UTG,
        Inc.

      Restated
        Stock Restriction And Buy-Sell
        Agreement

       

      The undersigned does hereby execute and become a party to the UTG, Inc.
        Restated Stock Restriction and Buy-Sell Agreement dated as of ________________,
        2007.

       

      _______________________________

      Shareholder Signature

      Printed

      Name: 
________________________

      Date:  ________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]