Document:

Exhibit 10.1

Exhibit 10.1

NONQUALIFIED STOCK OPTION AGREEMENT

This AGREEMENT (this “Agreement”) is made as of June 29, 2010 (the “Effective Date”) by and
between HealthMarkets, Inc., a Delaware corporation (the “Company”), and Jack Victor Heller
(“Optionee”). As a condition precedent to the Company’s grant of the Options (as defined in
Section 2 of this Agreement) to Optionee, to the extent not already executed by Optionee, Optionee
is required to execute and deliver a counterpart of the Stockholders Agreement and thereby agrees
to be bound by the Stockholders Agreement as a “Management Stockholder” thereunder.

1. Certain Definitions. Capitalized terms used, but not otherwise defined, in this
Agreement will have the meanings given to such terms in the Company’s Second Amended and Restated
2006 Management Option Plan (the “Plan”). As used in this Agreement:

(a) “Call Right” has the meaning specified in Section 8 of this Agreement.

(b) “Company” has the meaning specified in the introductory paragraph of this Agreement.

(c) “Compensation Committee” means the Executive Compensation Committee of the Board.

(d) “Disability” means, unless defined otherwise in the applicable Employment Agreement,
Optionee’s incapacity due to physical or mental illness to substantially perform his duties on a
full-time basis for at least 26 consecutive weeks or an aggregate period in excess of 26 weeks in
any one fiscal year, and within 30 days after a notice of termination is thereafter given by the
Company, Optionee shall not have returned to the full-time performance of Optionee’s duties;
provided, however, that if Optionee shall not agree with a determination to terminate his
employment because of Disability, the question of Optionee’s Disability shall be subject to the
certification of a qualified medical doctor selected by the Company or its insurers and acceptable
to Optionee or, in the event of Optionee’s incapacity to accept a doctor, Optionee’s legal
representative.

(e) “Employment Agreement” means an employment agreement or offer letter, if any, with respect
to Optionee’s employment with the Company and certain related terms, by and between the Company and
Optionee.

(f) “Fair Market Value” shall have the meaning specified in the Stockholders Agreement.

(g) “Options” has the meaning specified in Section 2 of this Agreement.

(h) “Optionee” has the meaning specified in the introductory paragraph of this Agreement.

(i) “Option Price” has the meaning specified in Section 2 of this Agreement.

(j) “Plan” has the meaning specified in Section 1 of this Agreement.

(k) “Termination for Cause” means, unless defined otherwise in the applicable Employment
Agreement, the termination by the Company or any Subsidiary of Optionee’s employment
with the Company or any Subsidiary as a result of (i) the commission by Optionee of an act of
gross negligence, willful misconduct, fraud, embezzlement, misappropriation or breach of fiduciary
duty

 

 

 

against the Company or any of its affiliates or Subsidiaries, or the conviction of Optionee by
a court of competent jurisdiction of, or a plea of guilty or nolo contendere to, any felony or any
crime involving moral turpitude or any crime which reasonably could affect the reputation of the
Company or Optionee’s ability to perform the duties required under his Employment Agreement, if
any, with the Company or any Subsidiary, (ii) the commission by Optionee of a material breach of
any of the covenants in his Employment Agreement, if any, with the Company or any Subsidiary or the
Stockholders Agreement, which breach has not been remedied within 30 days of the delivery to
Optionee by the Board of written notice of the facts constituting the breach, and which breach if
not cured, would have a material adverse effect on the Company, or (iii) the habitual and willful
neglect by Optionee of his obligations under his Employment Agreement, if any, with the Company or
any Subsidiary or Optionee’s duties as an employee of the Company or any Subsidiary.

(l) “Termination for Good Reason” means, unless defined otherwise in the applicable Employment
Agreement, the termination by Optionee of Optionee’s employment with the Company or any Subsidiary
with written notice to the Company within 90 days following the occurrence, without Optionee’s
consent, of any of the following events (after failure of the Company or any Subsidiary to cure in
thirty (30) days): (i) the reduction of Optionee’s position from that of an executive level
position with the Company or any Subsidiary, (ii) a decrease in Optionee’s base salary or target
annual bonus, other than in the case of a decrease for a majority of similarly situated executives
of the Company or any Subsidiary, (iii) a reduction in Optionee’s participation in the Company’s or
any Subsidiary’s benefit plans and policies to a level materially less favorable to Optionee,
unless such reduction applies to a majority of the similarly situated executives of the Company or
any Subsidiary, or (iv) the announcement of the relocation of Optionee’s primary place of
employment to a location 50 or more miles from the current headquarters or, if Optionee is not
currently based at the Company’s current headquarters, Optionee’s primary place of employment as of
the Effective Date.

(m) “Termination Without Cause” means, unless defined otherwise in the applicable Employment
Agreement, the termination by the Company or any Subsidiary of Optionee’s employment with the
Company or any Subsidiary for any reason other than a Termination for Cause (other than by reason
of Optionee’s death or Disability).

(n) “Voluntary Termination” means Optionee’s termination of Optionee’s employment with the
Company or any Subsidiary for any reason, other than a Termination for Good Reason.

2. Grant of Stock Option; Exercise Price.

(a) Subject to and upon the terms, conditions, and restrictions set forth in this Agreement
and in the Plan, the Company hereby grants to Optionee options to purchase 150,000 Shares (the
“Options”) as of the date hereof. The Shares subject to the Option may be purchased pursuant to
the Options at a price (the “Option Price”) of $7.00 per Share. The Options may be exercised from
time to time in accordance with the terms of this Agreement. The Options are intended to be
nonqualified stock options and shall not be treated as an “incentive stock option” within the
meaning of that term under Section 422 of the Code, or any successor provision thereto.

(b) In connection with, and as a condition precedent to, the Company’s grant of the Options
set forth in Section 2(a) above, Optionee acknowledges and agrees to forfeit all of his or her
outstanding Options granted prior to the date hereof.

 

 

 

3. Term of Options. The term of the Options shall commence at the Effective Date and,
unless earlier terminated in accordance with the terms of this Agreement, shall expire ten (10)
years from the Effective Date.

4. Right to Exercise. Unless terminated as hereinafter provided and except as
otherwise provided in Section 7, the Options shall vest and become exercisable in equal 20%
installments on each of the first five anniversaries of the Effective Date, in each case, subject
to Optionee remaining in the continuous employ of the Company or any Subsidiary through the
applicable vesting date. Notwithstanding the foregoing, the Options granted hereby shall become
immediately exercisable with respect to all of the Shares upon the occurrence of a Change of
Control if Optionee remains in the continuous employ of the Company or any Subsidiary until the
date of the consummation of such Change of Control.

5. Option Nontransferable. Optionee may not transfer or assign all or any part of the
Options other than by will or by the laws of descent and distribution. The Options may be
exercised, during the lifetime of Optionee, only by Optionee, or in the event of Optionee’s legal
incapacity, by Optionee’s guardian or legal representative acting on behalf of Optionee in a
fiduciary capacity under state law and court supervision. Optionee shall be entitled to the
privileges of ownership with respect to Shares purchased and delivered to Optionee upon the
exercise of all or part of the Options.

6. Notice of Exercise; Payment.

(a) To the extent then exercisable, the Option may be exercised in whole or in part by written
notice to the Company stating the number of Shares for which the Options are being exercised and
the intended manner of payment. The date of such notice shall be the exercise date. Payment equal
to the aggregate Option Price of the Shares being purchased pursuant to an exercise of the Options
must be tendered in full with the notice of exercise to the Company in one or a combination of the
following methods as specified by Optionee in the notice of exercise: (i) cash in the form of
currency or check or by wire transfer as directed by the Company, (ii) solely following an IPO on
shares of the Company’s Class A-1 Common Stock otherwise being traded on an established securities
market, through the surrender to the Company of shares of Class A-1 Common Stock owned by Optionee
for at least six months as valued at their Fair Market Value on the date of exercise or (iii)
through such other form of consideration as is deemed acceptable by the Board.

(b) As soon as practicable upon the Company’s receipt of Optionee’s notice of exercise and
payment, the Company shall direct the due issuance of the Shares so purchased.

(c) As a further condition precedent to the exercise of the Options in whole or in part,
Optionee shall comply with all regulations and the requirements of any regulatory authority having
control of, or supervision over, the issuance of the Shares and in connection therewith shall
execute any documents which the Board shall in its sole discretion deem necessary or advisable.

7. Termination of Employment.

(a) General. Except as provided immediately below, if Optionee’s employment
terminates for any reason, the Options, to the extent not then vested (i.e., exercisable), will be
immediately forfeited and all vested Options will remain exercisable for the shorter of (1) 90 days
following the date of termination and (2) the remainder of their original scheduled term. For the
avoidance of doubt, any reference to any Option being or becoming vested shall also mean it has
become or will become “exercisable”.

 

 

 

(b) Without Cause; for Good Reason. If Optionee’s employment with the Company or any
Subsidiary terminates for any reason other than a Termination for Cause or a Voluntary Termination,
to the extent not previously cancelled or expired, as of the date of termination Optionee’s
unvested Options that would have vested if Optionee had remained employed through the first
anniversary of the date of termination will vest and all vested Options will remain exercisable for
the shorter of (1) one year following the date of termination and (2) the remainder of their
original scheduled term.

(c) Death; Disability. If Optionee’s employment is terminated by reason of Optionee’s
death or Disability, to the extent not previously cancelled or expired, as of the date of
termination Optionee’s unvested Options that would have vested if Optionee had remained employed
through the first anniversary of the date of termination will vest and all vested Options will
remain exercisable for the shorter of (1) one year following the date of termination and (2) the
remainder of their original scheduled term; provided, however, that it shall be a condition to the
exercise of the Options in the event of Optionee’s death that the Person exercising the Options
shall (i) have agreed in a form satisfactory to the Company to be bound by the provisions of this
Agreement and the Stockholders Agreement and (ii) comply with all regulations and the requirements
of any regulatory authority having control of, or supervision over, the issuance of the Shares and
in connection therewith shall execute any documents which the Board shall in its sole discretion
deem necessary or advisable.

(d) Cause. Notwithstanding the foregoing or any provision of this Agreement or the
Employment Agreement to the contrary, if Optionee’s employment is terminated by the Company for
Cause, all options, whether or not vested, will be immediately forfeited as of the date of
termination.

8. Company Repurchase Rights.

(a) Upon termination of Optionee’s employment for any reason prior to an IPO, the Company will
have the right to purchase (the “Call Right”), subject to the provisions of Section 8(b) below, any
Shares that Optionee received pursuant to the terms and conditions set forth in Article VI Call
Rights of the Stockholders Agreement.

(b) Notwithstanding anything in the Stockholders Agreement or the Employment Agreement to the
contrary, in the event that Optionee is required to repay unvested cash bonus amounts paid to
Optionee by the Company, the Company shall have the right to reduce the purchase price payable to
Optionee with respect to any Shares held by Optionee by the amount owed to the Company by Optionee
with respect to such unvested cash bonus amounts.

(c) This Section 8 shall be deemed an amendment to the terms of the Stockholders Agreement to
the extent necessary to effectuate the terms of this Section 8. By executing this Agreement,
Optionee agrees to be bound by the terms of the Stockholders Agreement, as modified by this
Agreement, and accepts the rights and obligations set forth therein.

9. Initial Public Offering. Shares acquired on exercise of any Option will be subject
to the terms and conditions of the Stockholders Agreement. The Company and Optionee acknowledge
that they will agree to provide the Company with the right to require Optionee and other executives
of the Company or any Subsidiary to waive any registration rights with regard to such Shares upon
an IPO, in which case the Company will implement an IPO bonus plan in cash, stock or additional
options to compensate for Optionee’s and the other executives’ loss of liquidity.

10. No Employment Contract. Nothing contained in this Agreement shall (a) confer upon
Optionee any right to be employed by or remain employed by the Company or any Subsidiary, or (b)
limit or affect in any manner the right of the Company or any Subsidiary to terminate the employment
or adjust the compensation of Optionee.

 

 

 

11. Taxes and Withholding. The Company or any Subsidiary may withhold, or require
Optionee to remit to the Company or any Subsidiary, an amount sufficient to satisfy federal, state,
local or foreign taxes (including Optionee’s FICA obligation) in connection with any payment made
or benefit realized by Optionee or other person under this Agreement or otherwise, and the amounts
available to the Company or any Subsidiary for such withholding are insufficient, it shall be a
condition to the receipt of such payment or the realization of such benefit that Optionee or such
other person make arrangements satisfactory to the Company or any Subsidiary for payment of the
balance of such taxes required to be withheld. The Company or any Subsidiary may elect to have
such withholding obligation satisfied by having Optionee surrender to the Company or any Subsidiary
a portion of the Shares that is issued or transferred to Optionee upon the exercise of an Option
(but only to the extent of the minimum withholding required by law), and the Shares so surrendered
by Optionee shall be credited against any such withholding obligation at the Fair Market Value of
such shares on the date of such surrender.

12. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws; provided, however, that notwithstanding any other
provision of this Agreement, the Options shall not be exercisable if the exercise thereof would
result in a violation of any such law.

13. Adjustments. In the event of any event described in Section 9 of the Plan
occurring after the Effective Date, the adjustment provisions as provided for under Section 9 of
the Plan shall apply.

14. Relation to Other Benefits. Any economic or other benefit to Optionee under this
Agreement shall not be taken into account in determining any benefits to which Optionee may be
entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by
the Company or any Subsidiary and shall not affect the amount of any life insurance coverage
available to any beneficiary under any life insurance plan covering employees of the Company or any
Subsidiary.

15. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however, that no
amendment shall adversely affect the rights of Optionee under this Agreement without Optionee’s
written consent.

16. Severability. If one or more of the provisions of this Agreement is invalidated
for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed
to be separable from the other provisions hereof, and the remaining provisions hereof shall
continue to be valid and fully enforceable.

17. Relation to Plan. This Agreement is subject to the terms and conditions of the
Plan. In the event of any inconsistent provisions between this Agreement and the Plan, the Plan
shall govern. The Board acting pursuant to the Plan, as constituted from time to time, shall,
except as expressly provided otherwise herein, have the right to determine any questions which
arise in connection with the Option or its exercise.

18. Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and
assigns of Optionee, and the successors and assigns of the Company.

19. Governing Law. The interpretation, performance, and enforcement of this Agreement
shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflict of laws thereof and all parties, including their successors and assigns, consent to the
jurisdiction of the state and federal courts of Delaware.

 

 

 

20. Prior Agreement. As of the date Optionee countersigns this Agreement, this
Agreement will supersede any and all prior and/or contemporaneous agreements, either oral or in
writing, between the parties hereto, or between either or both of the parties hereto and the
Company, with respect to the subject matter hereof, including, without limitation, the Employment
Agreement, if applicable. Each party to this Agreement acknowledges that no representations,
inducements, promises, or other agreements, orally or otherwise, have been made by any party, or
anyone acting on behalf of any party, pertaining to the subject matter hereof, which are not
embodied herein, and that no prior and/or contemporaneous agreement, statement or promise
pertaining to the subject matter hereof that is not contained in this Agreement shall be valid or
binding on either party.

21. Notices. For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof confirmed), or five business
days after having been mailed by United States registered or certified mail, return receipt
requested, postage prepaid, or three business days after having been sent by a nationally
recognized overnight courier service such as Federal Express, UPS, or Purolator, addressed to the
Company (to the attention of the Secretary of the Company) at its principal executive offices and
to Optionee at his principal residence, or to such other address as any party may have furnished to
the other in writing and in accordance herewith, except that notices of changes of address shall be
effective only upon receipt.

22. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
agreement.

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and Optionee has executed this Agreement, as of the day and year first
above written.

	 	 	 	 	 
	 	HealthMarkets, Inc.
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	 	 
	 	OPTIONEE 	 
	 	Name:  Jack Victor HellerExhibit 10.2

Exhibit 10.2

RESTRICTED SHARE AGREEMENT

This AGREEMENT, is made as of June 29, 2010 (the “Effective Date”), by and between
HealthMarkets, Inc., a Delaware corporation (together with its successors and assigns, the
“Company”), and Jack Victor Heller (the “Executive”);

WHEREAS, the Company and the Executive entered into an employment agreement or offer letter,
as applicable, with respect to the Executive’s employment as an executive of the Company and
certain related terms (the “Employment Agreement”);

WHEREAS, the Company, acting through the Compensation Committee with the consent of the Board
has agreed to grant to the Executive, effective on the Effective Date, restricted shares of the
Company’s Class A-1 Common Stock (the “Restricted Shares”) under the Second Amended and Restated
HealthMarkets 2006 Management Option Plan (the “Plan”) on the terms and subject to the conditions
set forth in this Agreement and the Plan;

WHEREAS, as a condition precedent to the Company’s grant of the Restricted Shares to the
Executive, the Executive must, to the extent the Executive has not yet done so, execute and deliver
a counterpart of the Stockholders Agreement and thereby agree to be bound by the Stockholders
Agreement as a “Management Stockholder” thereunder and the Restricted Shares shall be subject to
the terms of the Stockholders Agreement.

NOW, THEREFORE, in consideration of the promises and of the mutual agreements contained in
this Agreement, the parties hereto hereby agree as follows:

1. Capitalized Terms. Capitalized terms not defined herein shall have the definitions
ascribed to such terms in the Plan or the Employment Agreement, as the case may be.

2. Grant. Subject to and upon the terms, conditions, and restrictions set forth in
this Agreement, the Company hereby grants to the Executive 150,000 Restricted Shares as of the date
hereof.

3. Issuance of Stock. The Restricted Shares shall be subject to the restrictions
described herein. The Restricted Shares shall bear appropriate legends with respect to the
restrictions described herein.

4. Vesting. Subject to the Executive’s remaining in the continuous employ of the
Company or any Subsidiary through the applicable vesting date, except as otherwise provided in
Section 6 hereof, the Restricted Shares shall vest in equal 20% annual installments on each of the
first five anniversaries of the Effective Date; provided, that the Restricted Shares shall
immediately vest in full upon a Change of Control.

5. Restrictions. No portion of the Restricted Shares or rights granted hereunder may
be sold, transferred, assigned, pledged or otherwise encumbered or disposed of by the Executive
until such portion of the Restricted Shares becomes vested, and any purported sale, transfer,
assignment, pledge, encumbrance or disposition shall be void and unenforceable against the Company.

 

 

 

6. Termination of Employment.

(a) General. Except as provided immediately below, if the Executive’s employment
terminates for any reason, the Restricted Shares, to the extent not then vested will be immediately
forfeited.

(b) Without Cause; for Good Reason. If the Executive’s employment is terminated by
the Company without Cause or by the Executive for Good Reason, as of the date of termination, the
Restricted Shares that would have vested if the Executive had remained employed through the first
anniversary of the date of termination will vest.

(c) Death; Disability. If the Executive’s employment is terminated by reason of the
Executive’s death or Disability, as of the date of termination, the Restricted Shares that would
have vested if the Executive had remained employed through the first anniversary of the date of
termination will vest; provided, however, that it shall be a condition to the vesting of the
Restricted Shares in the event of the Executive’s death that the Person receiving the Shares shall
(i) have agreed in a form satisfactory to the Company to be bound by the provisions of this
Agreement and, if there has been no Change of Control or an IPO, the Stockholders Agreement and
(ii) comply with all regulations and the requirements of any regulatory authority having control
of, or supervision over, the issuance of the Shares and in connection therewith shall execute any
documents which the Board shall in its sole discretion deem necessary or advisable.

(d) Cause. Notwithstanding the foregoing or any provision of this Agreement or the
Employment Agreement to the contrary, if the Executive’s employment is terminated by the Company
for Cause, all unvested Restricted Shares will be immediately forfeited as of the date of
termination.

7. Company Repurchase Rights.

(a) The Company will have the right to purchase (the “Call Right”), subject to the provisions
of Section 7(b) below, any Shares that the Executive received pursuant to the terms and conditions
set forth in the Stockholders Agreement.

(b) Notwithstanding anything in the Stockholders Agreement or the Employment Agreement to the
contrary, in the event that the Executive is required to repay unvested cash bonus amounts paid to
the Executive by the Company, the Company shall have the right to reduce the purchase price payable
to the Executive with respect to any Shares held by the Executive by the amount owed to the Company
by the Executive with respect to such unvested cash bonus amounts.

(c) This Section 7 shall be deemed an amendment to the terms of the Stockholders Agreement to
the extent necessary to effectuate the terms of this Section 7. By executing this Agreement, the
Executive agrees to be bound by the terms of the Stockholders Agreement, as modified by this
Agreement, and accepts the rights and obligations set forth therein.

8. Initial Public Offering. The Restricted Shares shall be subject to the terms and
conditions of the Stockholders Agreement. The Company and the Executive acknowledge that they will
agree to provide the Company with the right to require the Executive and other executives of the
Company or any Subsidiary to waive any registration rights with regard to such Shares upon an IPO,
in which case the Company will implement an IPO bonus plan in cash, stock or additional options to
compensate for the Executive’s and the other executives’ loss of liquidity; provided that if the
Executive’s employment is terminated without Cause or for Good Reason, then the Executive shall fully vest
upon the date of termination in any grant made under such IPO bonus plan.

 

 

 

9. Executive Shareholder Rights. Prior to the date on which the Restricted Shares
vest, except as otherwise set forth herein, the Executive shall have all rights of a shareholder
with respect to the Restricted Shares. Notwithstanding the foregoing, cash dividends, if any, paid
with respect to any Restricted Shares which have not vested at the time of the dividend payment
shall be paid to and held in the custody of the Company, and shall be subject to the same
restrictions that apply to the corresponding Restricted Shares, and shall be released from the
custody of the Company at such time as the restrictions on the underlying Shares to which the
dividends relate have lapsed. At such time as any Restricted Share vests, any such custodial
dividends held by the Company (including any interest thereon payable in accordance with this
Section 9) with respect to such vested share shall be paid to the Executive.

10. No Employment Contract. Nothing contained in this Agreement shall (a) confer upon
the Executive any right to be employed by or remain employed by the Company or any Subsidiary, or
(b) limit or affect in any manner the right of the Company or any Subsidiary to terminate the
employment or adjust the compensation of the Executive.

11. Taxes and Withholding. The Company or any Subsidiary may withhold, or require the
Executive to remit to the Company or any Subsidiary, an amount sufficient to satisfy federal,
state, local or foreign taxes (including the Executive’s FICA obligation) in connection with any
payment made or benefit realized by the Executive or other person under this Agreement or
otherwise, and the amounts available to the Company or any Subsidiary for such withholding are
insufficient, it shall be a condition to the receipt of such payment or the realization of such
benefit that the Executive or such other person make arrangements satisfactory to the Company or
any Subsidiary for payment of the balance of such taxes required to be withheld. The Executive may
elect to have such withholding obligation satisfied by surrendering to the Company a portion of the
Shares that is issued or transferred to the Executive upon the vesting of the Restricted Shares
(but only to the extent of the minimum withholding required by law), and the Shares so surrendered
by the Executive shall be credited against any such withholding obligation at the Fair Market Value
of such Shares on the date of such surrender (and the amount equal to the Fair Market Value of such
shares shall be remitted to the appropriate tax authorities).

12. Compliance with Law. The Company shall make reasonable efforts to comply with all
applicable federal and state securities laws; provided, however, that notwithstanding any other
provision of this Agreement, the Restricted Shares shall not vest if the vesting thereof would
result in a violation of any such law.

13. Adjustments. In the event of any stock split, reverse stock split, share
dividend, merger, consolidation or other event after the Effective Date that makes an equitable
adjustment appropriate, the Board shall make such substitution or adjustment (including cash
payments) in the number and kind of Restricted Shares covered thereby and/or such other equitable
substitution or adjustments as it determines in good faith to be equitable. In connection with a
Change of Control, such substitutions and adjustments may include, without limitation, canceling
any and all Restricted Shares in exchange for cash payments equal to the Fair Market Value of the
Restricted Shares in connection with such an adjustment event.

14. Relation to Other Benefits. Any economic or other benefit to the Executive under
this Agreement shall not be taken into account in determining any benefits to which the Executive
may be entitled under any profit-sharing, retirement or other benefit or compensation plan
maintained by the Company or any Subsidiary and shall not affect the amount of any life insurance
coverage available to any beneficiary under any life insurance plan covering employees of the
Company or any Subsidiary.

15. Amendments. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto; provided, however, that no
amendment shall adversely affect the rights of the Executive under this Agreement or the Employment
Agreement without the Executive’s written consent.

 

 

 

16. Severability. If one or more of the provisions of this Agreement is invalidated
for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed
to be separable from the other provisions hereof, and the remaining provisions hereof shall
continue to be valid and fully enforceable.

17. Relation to Plan. This Agreement is subject to the terms and conditions of the
Plan; provided, however, that in the event of any inconsistent provisions between this Agreement
and the Plan, this Agreement shall govern. In addition, in the event of any inconsistent
provisions between the Plan and the Employment Agreement, the Plan shall govern. The Board acting
pursuant to the Plan, as constituted from time to time, shall, except as expressly provided
otherwise herein, have the right to determine (in good faith) any questions which arise in
connection with the Restricted Shares.

18. Successors and Assigns. The provisions of this Agreement shall inure to the
benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and
assigns of the Executive, and the successors and assigns of the Company.

19. Governing Law. The interpretation, performance, and enforcement of this Agreement
shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflict of laws thereof and all parties, including their successors and assigns, consent to the
jurisdiction of the state and federal courts of Delaware.

20. Prior Agreement; Employment Agreement. As of the date that the Executive
countersigns this Agreement, this Agreement will supersede any and all prior and/or contemporaneous
agreements, either oral or in writing, between the parties hereto, or between either or both of the
parties hereto and the Company, with respect to the subject matter hereof, including, without
limitation, the Employment Agreement and any Exhibits thereto. Each party to this Agreement
acknowledges that no representations, inducements, promises, or other agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, pertaining to the
subject matter hereof and that no prior and/or contemporaneous agreement, statement or promise
pertaining to the subject matter hereof that is not contained in this Agreement shall be valid or
binding on either party.

21. Notices. For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof confirmed), or five business
days after having been mailed by United States registered or certified mail, return receipt
requested, postage prepaid, or three business days after having been sent by a nationally
recognized overnight courier service such as Federal Express, UPS, or Purolator, addressed to the
Company (to the attention of the Secretary of the Company) at its principal executive offices and
to the Executive at his principal residence, or to such other address as any party may have
furnished to the other in writing and in accordance herewith, except that notices of changes of
address shall be effective only upon receipt.

22. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
agreement.

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its
duly authorized officer and the Executive has executed this Agreement, as of the day and year first
above written.

	 	 	 	 	 
	 	HealthMarkets, Inc.
 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	 	 
	 	EXECUTIVE 	 
	 	Name:  Jack Victor Heller

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]