Document:

Exhibit 10.4

 

, 2020

 

INSU Acquisition Corp. II

2929 Arch Street, Suite 1703

Philadelphia, PA 19104-2870  

 

Re: Initial Public Offering

 

Ladies and Gentlemen:

 

This letter (“Letter
Agreement”) is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting
Agreement”) entered into, or proposed to be entered into, by and between INSU Acquisition Corp. II, a Delaware corporation
(the “Company”), and Cantor Fitzgerald & Co. (“Cantor Fitzgerald”),
as the representative of the underwriters (the “Underwriters”), relating to an underwritten initial public
offering (the “Offering”), of up to 20,125,000 of the Company’s units (the “Units”),
each comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”),
and one third of one warrant, each whole warrant exercisable for one share of Common Stock (each, a “Warrant”).
The Units sold in the Offering will be registered under the Securities Act of 1933, as amended (the “Securities Act”),
pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”) filed by the Company
with the Securities and Exchange Commission (the “Commission”). The Company expects that the Units will
be listed for trading on the Nasdaq Capital Market. Certain capitalized terms used herein are defined in paragraph 16 hereof.

 

The Insiders signatory
hereto hereby agree with the Company as follows:

 

1. Each Insider agrees that, if
the Company seeks stockholder approval of (a) a proposed initial Business Combination or (b) a proposed amendment to the Company’s
amended and restated certificate of incorporation (as may be amended from time to time, the “Charter”)
to modify the substance or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company does not
complete its initial Business Combination within 24 months from the completion of the Offering, then in connection with such proposed
initial Business Combination or amendment to the Charter, such person shall vote, as applicable, all Founder Shares, Placement
Shares and any shares acquired by such person in the Offering or in the secondary public market in favor of such proposed initial
Business Combination or such amendment to the Charter, as applicable.

 

2. (a)
Each Insider hereby agrees that, if the Company fails to consummate a Business Combination within 24 months from the consummation
of the Offering, such person shall take all reasonable steps to cause the Company to (i) cease all operations except for the purpose
of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Offering Shares
at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including any amounts
representing interest earned on the Trust Account, less interest previously released to, or reserved for use by, the Company in
an amount up to $100,000 to pay dissolution expenses and less any other interest released to, or reserved for use by, the Company
to pay franchise and income taxes, divided by the number of Offering Shares then outstanding, which redemption will completely
extinguish the holder’s rights as a stockholder with respect to his, her or its Offering Shares (including the right to receive
further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors (the
“Board”), dissolve and liquidate, subject in the case of clauses (ii) and (iii) to the Company’s
obligations under Delaware law to provide for claims of creditors and other requirements of applicable law.

 

(b) Each Insider agrees
to not propose any amendment to the Charter that would affect the substance or timing of the Company’s obligation to redeem
100% of the Offering Shares if the Company does not consummate a Business Combination within 24 months from the completion of the
Offering, unless the Company provides the holders of Offering Shares with the opportunity to redeem their Offering Shares upon
approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust
account, including any amounts representing interest earned on the Trust Account, less any interest released to, or reserved for
use by, the Company to pay franchise and income taxes, divided by the number of then outstanding Offering Shares.

 

    

     

    

 

(c) Each Insider acknowledges
and agrees that Founder Shares or Placement Shares held by him, her or it are not entitled to, and have no right, interest or claim
of any kind in or to, any monies held in the Trust Account or distributed as a result of any liquidation of the Trust Account.

 

(d)  Each
Insider waives, with respect to any Founder Shares or Placement Shares held by such undersigned party, any redemption rights he,
she or it may have (i) in connection with the consummation of an initial Business Combination, (ii) if the Company fails to consummate
its initial Business Combination or liquidates within 24 months from the completion of the Offering or (iii) if the Company seeks
an amendment to its Charter that would affect the substance or timing of the Company’s obligation to redeem 100% of the Offering
Shares as described above. If any of the Insiders should acquire Offering Shares in or after the Offering, each Insider hereby
waives with respect to such Offering Shares held by such undersigned party any redemption rights such party may have in connection
with the consummation of a Business Combination or a stockholder vote to amend the Charter to modify the substance or timing of
the Company’s obligation to redeem 100% of the Offering Shares if the Company does not complete its initial Business Combination
within 24 months from the completion of the Offering; provided, however, that the Insiders will be entitled to redemption rights
with respect to such Offering Shares held by them if the Company fails to consummate a Business Combination or liquidates within
24 months from completion of the Offering.

 

3. (a) To the extent that the Underwriters
do not exercise in full their over-allotment option to purchase an additional 2,625,000 Units (as described in the Prospectus),
the Initial Holders shall return to the Company for cancellation, at no cost, an aggregate number of Founder Shares determined
by multiplying 875,000 by a fraction: (i) the numerator of which is 2,625,000 minus the number of shares of the Common Stock purchased
by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is 2,625,000. The
Initial Holders further agree that, if the Company effects a stock split, stock dividend, reverse stock split, contribution back
to capital or otherwise in connection with any increase or decrease in the size of the Offering, to the extent that the Underwriters
do not exercise their over-allotment option in full, the aggregate number of shares that the Initial Holders will be required to
return to the Company as set forth in the immediately preceding sentence shall be adjusted so that the Founder Shares held by the
Initial Holders and their Permitted Transferees represent 25% of the Company’s issued and outstanding shares of Common Stock
immediately following such forfeiture. The number of Founder Shares to be returned by each Initial Holder, if any, pursuant to
this Section 3(a) shall be determined on a pro-rata basis based on the percentage of outstanding Founder Shares held by each Initial
Holder at the time of such forfeiture.

 

(b) Subject to paragraph
3(d), the Founder Shares owned by the Insiders shall not be transferable or salable (x)(a) with respect to 20% of such shares,
until consummation of a Business Combination, (b) with respect to 20% of such shares, when the closing price of the Common Stock
exceeds $12.00 for any 20 trading days within a 30-trading day period following the consummation of a Business Combination, (c)
with respect to 20% of such shares, when the closing price of the Common Stock exceeds $13.50 for any 20 trading days within a
30-trading day period following the consummation of a Business Combination, (d) with respect to 20% of such shares, when the closing
price of the Common Stock exceeds $15.00 for any 20 trading days within a 30-trading day period following the consummation of
a Business Combination and (e) with respect to 20% of such shares, when the closing price of the Common Stock exceeds $17.00 for
any 20 trading days within a 30-trading day period following the consummation of a Business Combination or earlier, in any case,
if, following a Business Combination (y) the Company completes a liquidation, merger, stock exchange or other similar transaction
that results in all of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities
or other property (such applicable period being the “Founder Lock-Up Period”).  During the Founder
Lock-Up Period, the Insiders shall not, except as described in the Prospectus, (I) sell, offer to sell, contract or agree to sell,
hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish
or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder (the “Exchange
Act”), with respect to the Founder Shares then subject to the Founder Lock-Up Period, (II) enter into any swap or
other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the
Founder Shares then subject to the Founder Lock-Up Period, whether any such transaction is to be settled by delivery of the Common
Stock or such other securities, in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified
in clause (b)(I) or (b)(II). 

 

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(c) Until 30 days after
the consummation of the initial Business Combination (“Placement Unit Lock-Up Period”), the Sponsor shall
not, except as described in the Prospectus, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any
option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect
to the Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants, (ii)
enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any of the Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants,
whether any such transaction is to be settled by delivery of the Common Stock or such other securities, in cash or otherwise, or
(iii) publicly announce any intention to effect any transaction specified in clause (c)(i) or (c)(ii).

 

(d) Notwithstanding
the provisions contained in paragraphs 3(b) and 3(c) hereof, any Insider may transfer, as applicable, the Founder Shares and/or
Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants (1) in connection
with an initial Business Combination with the consent of the Company to any third party that agrees in writing to be bound by the
provisions of this agreement applicable to Insiders (other than paragraph 1 and the second sentence of paragraph 2(d)); and (2)
(a) to the Company’s officers, the Company’s directors, the Initial Holders, other Insiders or Cantor Fitzgerald, or
Cantor Fitzgerald’s officers, directors, or direct or indirect equityholders, (b) to an affiliate or immediate family member
of any of the Company’s officers and directors, Initial Holders, other Insiders and Cantor Fitzgerald, (c) to any member,
officer or director of the Sponsor, or any immediate family member, partner, affiliate or employee of a member of the Sponsor,
(d) by gift to any Permitted Transferee under any of the immediately preceding subsections (a) through (c), a trust, the beneficiaries
of which are one or more Permitted Transferees under any of the immediately preceding subsections (a) through (c), or a charitable
organization, (e) by virtue of laws of descent and distribution upon death of any of the Company’s officers, the Company’s
directors, the Initial Holders, members of the Sponsor, or any officers, directors, or direct or indirect equityholders of Cantor
Fitzgerald, (f) pursuant to a qualified domestic relations order, (g) in the event of the Company’s liquidation prior to
consummation of its initial Business Combination, (h) by virtue of the laws of Delaware, the Sponsor’s limited liability
company agreement upon dissolution of the Sponsor, or the organizational documents of Cantor Fitzgerald upon dissolution of Cantor
Fitzgerald, (i) subsequent to the Company’s consummation of its initial Business Combination, in the event of a liquidation,
merger, stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to
exchange their shares of Common Stock for cash, securities or other property, (j) subsequent to the Company’s consummation
of its initial Business Combination, in the event of a consolidation, merger or other similar transaction in which the Company
is the surviving entity that results in the directors and officers of the Company ceasing to comprise a majority of the Board (in
the case of directors) or management (in the case of officers) of the surviving entity or (k) through private sales or transfers
made in connection with any forward purchase agreement or similar arrangement or in connection with the consummation of the Company’s
initial Business Combination at prices no greater than the price at which the Founder Shares, Placement Shares or Placement Warrants
were originally purchased (each, a “Permitted Transferee”); provided, however, that, in the case of subclauses
(a) through (f), (h) and (k), these transferees enter into a written agreement with the Company agreeing to be bound by the
transfer restrictions set forth herein. For the avoidance of doubt, for the purposes of this Agreement, a managed account managed
by the same investment manager of any member of the Sponsor shall be deemed an affiliate of such member.

 

(e) Further, each
Insider agrees that after the Founder Lock-Up Period or the Placement Unit Lock-Up Period, as applicable, has elapsed, the Founder
Shares and/or Placement Units, Placement Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants
owned by such Insider shall only be transferable or saleable pursuant to a sale registered under the Securities Act or pursuant
to an available exemption from registration under the Securities Act. The Company and each Insider acknowledges that pursuant
to that certain registration rights agreement to be entered into among the Company and certain security holders of the Company,
parties to the agreement may request that a registration statement relating to the Founder Shares and/or Placement Units, Placement
Shares, Placement Warrants, or shares of Common Stock underlying the Placement Warrants be filed by the Company with the Commission
prior to the end of the Founder Lock-Up Period or the Placement Unit Lock-Up Period, as the case may be;  provided, 
however, that such registration statement does not become effective prior to the end of the Founder Lock-Up Period or the Placement
Unit Lock-Up Period, as applicable.

 

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(f) Subject to the
limitations described herein, each Insider shall retain all of such Insider’s rights as a security holder during, as applicable,
the Founder Lock-Up Period and/or Placement Unit Lock-Up Period including, without limitation, the right to vote, as the case may
be, the Founder Shares and/or Placement Shares.

 

(g) During the Founder
Lock-Up Period and Placement Unit Lock-Up Period, all dividends payable in cash with respect to such securities shall be paid,
as applicable, to each security holder, but all dividends payable in Common Stock or other non-cash property shall become subject
to the applicable lock-up period as described herein and shall only be released from such lock-up in accordance with the provisions
of this paragraph 3.

 

4. Without limiting the provisions
of paragraph 3(d) hereof, during the period commencing on the effective date of the Underwriting Agreement and ending 180 days
after such date, each of the undersigned shall not (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant
any option to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent
position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act with respect
to any Units, Placement Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any securities convertible
into, or exercisable, or exchangeable for, shares of Common Stock owned by an undersigned party, (ii) enter into any swap or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Units, Placement
Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any securities convertible into, or exercisable,
or exchangeable for, shares of Common Stock owned by the undersigned, whether any such transaction is to be settled by delivery
of such securities, in cash or otherwise, or (iii) publicly announce any intention to effect any transaction specified in clause
(i) or (ii); provided, however, that the restrictions of this Section 4 shall not apply to any distributions by the Sponsor to
its members of Units, Placement Units, shares of Common Stock, Warrants, Placement Shares, Placement Warrants or any securities
convertible into, or exercisable, or exchangeable for, shares of Common Stock.

 

5. (a)
In the event of the liquidation of the Trust Account without the consummation of a Business Combination, the Sponsor (the “Indemnitor”)
agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, damage and expense whatsoever (including,
but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any
litigation, whether pending or threatened, or any claim whatsoever) to which the Company may become subject as a result of any
claim by (i) any third party for services rendered or products sold to the Company or (ii) any prospective target business (a “Target”)
as described in the Prospectus; provided,  however, that such indemnification of the Company by the Indemnitor shall apply
only to the extent necessary to ensure that such claims by a third party for services rendered or products sold to the Company
or a Target do not reduce the amount of funds in the Trust Account to below $10.00 (regardless of whether or not the Underwriters
exercise any portion of their overallotment option) per Offering Share and only if such third party or Target has not executed
an agreement waiving claims against any and all rights to seek access to the Trust Account, regardless of whether such agreement
is enforceable. In the event that any such executed waiver is deemed to be unenforceable against such third party, the Indemnitor
shall not be responsible for any liability as a result of any such third party claims. Notwithstanding any of the foregoing, indemnification
of the Company by the Indemnitor pursuant to this paragraph 5 shall not apply as to any claims arising from the Company’s
obligation pursuant to the Underwriting Agreement to indemnify the Underwriters.

 

(b) If the Company
is liquidated within 24 months following completion of the Offering, to the extent that interest income on the balance of the Trust
Account (net of any taxes payable) released to the Company in an amount up to $100,000 to pay dissolution expenses and any other
interest released to, or reserved for use by, the Company to pay franchise and income taxes and loans from the Sponsor (each as
described in the Prospectus) are insufficient to fund the costs and expenses of liquidation, the Indemnitor agrees to pay the balance
of the amount necessary to complete the liquidation of the Company. 

 

6. The Company agrees that the Company
will not engage any third party to render services, agree to purchase any products from such third party, or enter into any discussion
or any acquisition agreement with a Target unless (i) such third party or Target has agreed to execute a waiver against any right,
title, interest or claim of any kind in or to any monies held in the Trust Account or any proceeds from the Trust Account, that
is acceptable to the Board or (ii) the Board and Sponsor have each consented in writing to dispense with such waiver with respect
to such services, product, discussions or acquisition agreement, in each case with the written consent of the Indemnitor as part
of the consent of the Board. In addition the Company shall endeavor, together with the officers and directors of any acquisition
target for its initial Business Combination, to obtain waivers of claims to the monies held in the Trust Account from creditors
of such acquisition target (which, for the avoidance of doubt, shall include creditors existing prior to the initial Business Combination
as well as after completion of the initial Business Combination).

 

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7. In order to minimize potential
conflicts of interest that may arise from multiple corporate affiliations, each officer and director of the Company who is signatory
to this Agreement agrees that until the earliest of the Company’s initial Business Combination, liquidation or the time at
which such person ceases to be an officer or director of the Company, such person shall present to the Company for its consideration,
prior to presentation to any other entity, any suitable Business Combination opportunities of which such person (or companies or
entities which such person manages or controls) becomes aware, subject to any current or future fiduciary or contractual obligations
of such person that such person discloses to the Company.

 

8. Each officer and director signatory
hereto represents and warrants that the biographical information furnished to the Company by him or her is true and accurate in
all material respects and does not omit any material information with respect to such person’s background. Each
of the answers of such person to the items in questionnaires furnished to the Company by such officer and director is true and
accurate in all material respects.

 

9. Each of the undersigned represents
and warrants that her, she or it:

 

(a) is not subject
to or a respondent in any legal action for any injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any jurisdiction;

 

(b) has never been
convicted of, or pleaded guilty to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds
of another person, or (iii) pertaining to any dealings in any securities, and the undersigned is not currently a defendant in any
such criminal proceeding; and

 

(c) has never been
suspended or expelled from membership in any securities or commodities exchange or association or had a securities or commodities
license or registration denied, suspended or revoked.

 

10. Each Insider agrees that he,
she or it shall receive no finder’s fees, consulting fees or other similar compensation from the Company prior to, or for
any services they render in order to effectuate, the consummation of the initial Business Combination, other than the following:

 

(a) repayment of loans
made to the Company by the Sponsor or its affiliate prior to completion of the Offering in connection with organizational expenses
and the preparation, filing and consummation of the Offering;

 

(b)payments to
the Sponsor or its affiliate of a total of $20,000 per month for office space, administrative and shared personnel support services,
pursuant to an Administrative Services Agreement;

 

(c) repayment of loans,
if any, and on such terms as to be determined by the Company from time to time, made by the Sponsor or one of its affiliates to
finance transaction costs in connection with an intended initial Business Combination, provided, that, if the Company does not
consummate an initial Business Combination, a portion of the working capital held outside the Trust Account may be used by the
Company to repay such loaned amounts. Up to $1,500,000 of such loans may be convertible into warrants at a price of $1.00 per warrant
at the option of the lender. Such warrants would be identical to the Private Placement Warrants, including as to exercise price,
exercisability and exercise period.;

 

(d) at the closing
of an initial Business Combination, a customary advisory fee to an affiliate of the Sponsor, in an amount that constitutes a market
standard advisory fee for comparable transactions and services provided; and

 

(e) reimbursement for
any out-of-pocket expenses related to identifying, investigating and consummating an initial Business Combination, provided that
no proceeds of the Offering placed in the Trust Account may be applied to the payment of such expenses prior to the consummation
of an initial Business Combination.

 

11. Each of the undersigned acknowledges
and understands that the Underwriters and the Company will rely upon the agreements, representations, and warranties set forth
herein in proceeding with the Offering.

 

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12. Each of the undersigned authorizes
any employer, financial institution, or consumer credit reporting agency to release to the Underwriters and their legal representatives
or agents (including any investigative search firm retained by the Underwriters) any information they may have about such undersigned
party’s background and finances (“Information”), purely for the purposes of performing required
due diligence examinations in connection with the Offering (provided that the Underwriters agree to hold such Information in confidence).
Each of the undersigned agrees that neither the Underwriters nor their agents shall be violating such undersigned party’s
right of privacy by requesting and obtaining the Information in accordance with this Section 12.

 

13. Each of the undersigned acknowledges
and agrees that the Company will not consummate any initial Business Combination that involves a company which is affiliated with
such undersigned party unless the Company obtains an opinion from an independent investment banking firm that is a member of the
Financial Industry Regulatory Authority and reasonably acceptable to Cantor Fitzgerald that the Business Combination is fair to
the Company’s stockholders from a financial perspective.

 

14. Each officer and director signatory
hereto represents and warrants that he or she has full right and power, without violating any agreement to which such person is
bound (including, without limitation, any non-competition or non-solicitation agreement with any employer or former employer),
to enter into this Letter Agreement and to serve as an officer of the Company or as a director on the Board, as applicable, and
hereby consents to being named in the Prospectus as an officer and/or as a director of the Company, as applicable.

 

15. As used in this Letter Agreement,
(i) “Business Combination” shall mean a merger, capital stock exchange, asset acquisition, stock purchase,
reorganization or similar Business Combination, involving the Company and one or more businesses; (ii) “Founder Shares”
shall mean the 6,888,333 shares of Class B common stock of the Company, par value $0.0001 per share, acquired by the Sponsor and
the other Initial Holders for an aggregate purchase price of $25,000 prior to the consummation of the Offering; (iii) “Initial
Holders” shall mean John C. Chrystal, Sasson Posner, Sheila Nicoll, Andrew Hohns and the Sponsor; (iii) “Offering
Shares” shall mean the shares of Common Stock included in the units sold in the Offering; (iv) “Placement
Shares” shall mean the shares of Common Stock sold as part of the Placement Units; (v) “Placement Warrants”
shall mean the Warrants to purchase up to an aggregate of 180,000 shares of the Common Stock that are included in the Placement
Units; (vi) “Placement Units” shall mean the aggregate of 540,000 Units of the Company (each Placement
Unit consists of one Placement Warrant and one Placement Share) sold in the Private Placement to the Sponsor and Cantor Fitzgerald
for an aggregate purchase price of $5,400,000; (vii) “Trust Account” shall mean the trust account into
which net proceeds of the Offering and the Private Placement will be deposited; (viii) “Prospectus” shall
mean the prospectus included in the registration statement filed by the Company in connection with the Offering, as supplemented
or amended from time to time; (ix) “Private Placement” shall mean that certain private placement transaction
occurring simultaneously with the closing of the Offering pursuant to which the Company has agreed to sell an aggregate of 540,000
Placement Units to Insurance Acquisition Sponsor II, LLC, a Delaware limited liability company, and Cantor Fitzgerald; (x) “Sponsor”
shall mean, collectively, Insurance Acquisition Sponsor II, LLC, a Delaware limited liability company, and Dioptra Advisors II,
LLC, a Delaware limited liability company, (xi) “Insiders” shall mean the Sponsor and its members, any
holders of Founder Shares, any person who receives Placement Units, Founder Shares or their respective underlying securities as
a Permitted Transferee (except for Cantor Fitzgerald) and each officer and director of the Company; and (y) references to completion
of the Offering shall exclude any exercise of the Underwriters’ over-allotment option.

 

16. This Letter Agreement constitutes
the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject
matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other
than to correct a typographical error) as to any particular provision, except by a written instrument executed by the parties hereto.

 

17. No party may assign either
this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other
party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer
or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on each undersigned party and
each of such undersigned party’s, as applicable, heirs, personal representatives, successors and assigns.

 

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18. This Letter Agreement shall
be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts entered
into within the borders of such state and without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction. The parties (i) agree that any action, proceeding, claim or dispute arising out
of, or relating in any way to, this Letter Agreement shall be brought and enforced in the federal or state courts in the borough
of Manhattan in the City of New York, and irrevocably submits to such jurisdiction and venue, which jurisdiction and venue shall
be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such courts represent an inconvenient
forum.

 

19. Any notice, consent or request
to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing and shall be sent by
express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery, electronic or
facsimile transmission.

 

20. This Letter Agreement shall
terminate in the event that the Offering is not completed by December 31, 2020; and, provided, further, that paragraph 5 of
this Letter Agreement shall survive any liquidation of the Company.

 

[Signature page
follows]

 

    7

     

    

 

	 	Sincerely,
	 	 
	 	
        INSU ACQUISITION CORP. II 

        a Delaware corporation 

	 	 
	 	By: 	                 
	 	Name:	John M. Butler
	 	Title:	President and Chief Executive Officer

 

	 	
        INSURANCE ACQUISITION SPONSOR, II LLC, a Delaware
limited liability company 

	 	 
	 	By: 	                       
	 	Name:	Daniel G. Cohen
	 	Title:	Chief Executive Officer

 

	 	
        DIOPTRA ADVISORS II, LLC, a Delaware limited
liability company 

	 	 
	 	By: 	            
	 	Name:	Daniel G. Cohen
	 	Title:	Chief Executive Officer

 

[Signature Page to Letter Agreement]

 

    

     

    

 

	 	 
	 	Daniel G. Cohen, individually
	 	 
	 	 
	 	John M. Butler, individually
	 	 
	 	 
	 	Joseph W. Pooler, Jr., individually
	 	 
	 	 
	 	John C. Chrystal, individually
	 	 
	 	 
	 	Sheila Nicoll, individually
	 	 
	 	 
	 	Sasson Posner, individually
	 	 
	 	 

 

[Signature Page to Letter Agreement]Document

Exhibit 10.1

M.D.C. HOLDINGS, INC. 
2011 EQUITY INCENTIVE PLAN 
PERFORMANCE SHARE UNIT GRANT AGREEMENT 
The Compensation Committee (the “Committee”) of M.D.C. Holdings, Inc., a Delaware corporation (the “Company”), awards performance share units (“PSUs”) under the Company’s 2011 Equity Incentive Plan (the “Plan”) to the Employee named below.  This Performance Share Unit Grant Agreement (the “Agreement”) evidences the terms and conditions of the Company’s award and the PSUs constitute “qualified performance based compensation and other stock-based awards” under Sections 9 and 10 of the Plan. 
A. NOTICE OF AWARD 
Name of Employee:       
Target Number of Performance Share Units Granted:    (“Target PSUs”)
Award Date:        
Performance Period:      through    
Base Period:       through    
Performance Goal:  The award will be earned based upon the Company’s performance, over a three-year period, measured by increasing home sale revenues, while maintaining a minimum average gross margin from home sales percentage (excluding impairments) of at least fifteen percent (15%) over the Performance Period (this later requirement being referenced as the “GSM Condition”). 
The average annual increase in the Company’s home sale revenues will be calculated: (1) by aggregating the sum of the home sale revenues reported by the Company for the Performance Period in the Company’s regularly prepared financial statements as filed with the Securities and Exchange Commission (the “SEC”); (2) dividing by three; and (3) then computing the amount of the percentage increase, if any, when compared to the home sale revenues for the Base Period in the amount of $3,205,248,289.
Vesting of PSUs:  Subject to the terms of this Agreement, PSU’s will vest when the Committee has certified (which certification shall be made as soon as reasonably possible after the end of the Performance Period but in no event later than the tenth business day following the filing with the SEC of the Company’s Form 10-K for the year ended December 31, 2022) that: (a) the Employee has been in continuous employment with the Company or any Affiliate up to and including the last day of the Performance Period (except as otherwise provided below); (b) the Company has filed its financial statements with the SEC for the Performance Period (to and including, the period ending December 31, 2022); and (c) the Performance Goal and any other material terms were satisfied, based on a certification the Committee has received from the Company attesting to the satisfaction of the material terms and conditions of this Agreement and the amount of the award that had been earned based upon attainment of the GSM Condition and achievement of the Performance Goal in accordance with the following table:

									
	Threshold	Target	Maximum
	Average increased home sale revenues during Performance Period over Base Period of at least 5%	Average increased home sale revenues during Performance Period over Base Period of at least 10%	Average increased home sale revenues during Performance Period over Base Period of 20% or more
	50% of Target PSUs Vested	100% of Target PSUs Vested	200% of Target PSUs Vested

The number of PSUs to be vested shall be adjusted to be proportional to the partial performance between Threshold, Target and Maximum amounts.  Any fractional PSUs will be rounded down to the nearest whole number.  Any PSU’s that do not vest pursuant to the provisions of this Agreement will be forfeited and canceled. 

B. PERFORMANCE SHARE UNIT GRANT AGREEMENT 
1. Award. Subject to the terms and conditions of this Agreement and the Plan, as an inducement to Employee to continue employment with the Company, the Company awards to Employee effective as of the Award Date the number of Target PSUs as set forth in the Notice of Award on the cover page of this Agreement, subject to the terms and conditions of the Plan, which is incorporated herein by reference. In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall govern. All capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the Plan. 
2. Type of Award. This is an award of performance share units. 
3. Performance Share Units.  Each PSU represents the conditional right to receive one share of the Company’s Common Stock (the “Stock”), subject to the terms and conditions set forth in this Agreement.  The number of PSUs that actually vest for the Performance Period will be determined by the level of achievement of the Performance Goal.  
4. Requirements for Vesting of PSUs. Except as otherwise provided in Section 5, Section 6, or in the Plan, the PSUs shall vest in accordance with and upon satisfaction of the requirements set forth in Part A (Vesting of PSUs).
5. Termination of Continuous Service.  If the Employee’s Service terminates for any reason at any time during the Performance Period, the unvested PSUs shall be automatically forfeited and cancelled upon such termination of Service and the Company shall not have any further obligations to Employee under this Agreement; provided,  however that: 
a. if the Employee’s Service terminates during the Performance Period as a result of the Employee’s death or Disability, the PSUs will become 100% vested at the Maximum level as of the date of death or Disability; and
b. if the Employee’s Service terminates during the Performance Period as a result of termination by the Company without Cause or termination by Employee for Good Reason (as defined in the Plan), the PSUs will vest, at the time specified in Section 4 above and subject to achievement of the GSM Condition and at least the Threshold level of the Performance Goal (based on the Company’s performance as of the end of the Performance Period), to the same extent as if the Employee had been employed through and including the last day of the Performance Period.
6. Change in Control. Upon the occurrence of a “Change in Control Event,” as such term is defined in the Employment or Change in Control Agreement between the Company and the Employee as in effect on the Award Date, the PSUs will become 100% vested at the Maximum level as of the date of such Change in Control Event.   
7. Leave of Absence. For purposes of the Award, continuous Service does not terminate when Employee goes on a bona fide employee leave of absence that was approved by the Company or an Affiliate in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, Service will be treated as terminating ninety (90) days after Employee went on the approved leave, unless Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends unless Employee immediately returns to active Service. The Committee determines, in its sole discretion, which leaves of absence count for this purpose, and when Service terminates for all purposes under the Plan. 
8. Settlement of Vested PSUs.  Except as other provided herein, at the end of the Performance Period, the Employee (or, in the event of the Employee’s death, the Employee’s beneficiary) will receive one (1) share of Stock for each PSU that vests in accordance with this Award Agreement. PSU’s settled under this Award Agreement are intended to be exempt from Code Section 409A under the exemption for short term deferrals. Accordingly, PSU’s 
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will be settled in shares of Stock promptly but in no later than the tenth business day following the filing with the SEC of the Company’s Form 10-K for the year ended as of the end of the Performance Period.
9. Tax Withholding. The Company or any Affiliate shall have the right to deduct from payments of any kind otherwise due to Employee, any federal, state, local or foreign taxes of any kind required by law to be withheld upon the issuance, vesting or payment of shares with respect to vested PSUs.  The Company may withhold taxes from any payments or shares due to Employee or Employee may deliver a check to the Company. Subject to the prior approval of the Company, which may be withheld by the Company, in its sole discretion, Employee may elect to have shares of Stock withheld or to satisfy the minimum statutory withholding obligations, in whole or in part, by delivering to the Company shares of Stock already owned by Employee (for at least six months or any other minimum period required by the Company). The shares withheld or delivered shall have an aggregate Fair Market Value not in excess of the minimum statutory total tax withholding obligations. The Fair Market Value of the shares used to satisfy the withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined (“Tax Date”). Shares used to satisfy any tax withholding obligation must be vested and cannot be subject to any repurchase, forfeiture, or other similar requirements. Any election must be made prior to the Tax Date, shall be irrevocable, made in writing, signed by Employee, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
10. Investment Representations. The Committee may require Employee (or Employee’s estate or heirs) to represent and warrant in writing that the individual is acquiring the shares of Stock for investment and without any present intention to sell or distribute such shares and to make such other representations as are deemed necessary or appropriate by the Company and its counsel. 
11. Continued Service. Neither the Award of PSUs nor this Agreement gives Employee the right to continue Service with the Company or its Affiliates in any capacity. The Company and its Affiliates reserve the right to terminate Employee’s Service at any time and for any reason not prohibited by law. 
12. Stockholder Rights. Unless and until shares of the Stock are issued to Employee pursuant to this Agreement, the Employee shall have no rights of a stockholder with respect to the shares of Stock reflected by the PSU. 
13. Adjustments. The number of PSUs granted under this Agreement shall be proportionately increased or decreased for any increase or decrease in the number of shares of Stock on account of any Corporate Event. The conversion of any convertible securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. In the event of any distribution to the Company’s stockholders of an extraordinary cash dividend or securities of any other entity or other assets (other than ordinary dividends payable in cash or shares of Stock) without receipt of consideration by the Company, the Company shall proportionately adjust the number of PSUs subject to this Agreement. Any fractional amounts will be rounded down to the nearest whole number of PSUs.  
14. Additional Requirements. Employee acknowledges that shares of Stock issued with respect to vested PSUs may bear such legends as the Company deems appropriate to comply with applicable federal, state or other securities laws. No shares shall be issued or delivered pursuant to this Agreement unless there shall have been compliance with all applicable requirements of federal, state and other securities laws, all applicable listing requirements of the New York Stock Exchange, if applicable, and all other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery. In connection therewith and prior to the issuance of the shares, Employee may be required to deliver to the Company such other documents as may be reasonably necessary to ensure compliance with applicable laws and regulations. 
15. Governing Law. The validity and construction of this Agreement shall be construed in accordance with and governed by the laws of the State of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive laws of any other jurisdiction. 
16. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Company and Employee and their respective heirs, executors, administrators, legal representatives, successors and assigns. 
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17. Amendment. The terms and conditions set forth in this Agreement may only be amended by the written consent of the Company and Employee, except to the extent set forth herein or in any other provision set forth in the Plan. 
18. 2011 Equity Incentive Plan; Clawback Policy. The Award and shares of Stock reflected by the Award shall be subject to:  (a) such additional terms and conditions as may be imposed under the terms of the Plan, a copy of which has been provided to Employee; and (b) the Clawback Policy adopted by the Company’s Corporate Governance/Nominating Committee on January 14, 2015. 
19. Headings; Construction. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 
20. Other Employee Benefits. The amount of any compensation deemed to be received by Employee as a result of this Agreement and the issuance of shares of Stock hereunder, shall not constitute “earnings” or “compensation” with respect to which any other employee benefits of Employee are determined, including without limitation benefits under any pension, profit sharing, 401(k), bonus, life insurance or salary continuation plan, except to the extent specifically provided in such separate plan or agreement. 
21. Interpretation; Administration. The Committee shall have the full power and authority to administer the terms and conditions of this Agreement, to adopt any procedures, make any determinations, correct any defect, supply any omission or reconcile any inconsistency with respect to the terms and conditions of this Agreement in the manner and to the extent it shall deem expedient and it shall be the sole and final judge of such expediency. No member of the Committee shall be liable for any action or determination made in good faith. The determinations, interpretations and other actions of the Committee with respect to this Agreement and the PSUs shall be binding and conclusive for all purposes and on all persons. 
22. Acceptance. The Award and this Agreement are voidable by the Company if the Employee does not accept this Agreement within 30 days after the Agreement is made available, electronically or otherwise, to the Employee by the Company. 
Dated: as of the Award Date set forth above. 
 
									
			
	M.D.C. HOLDINGS, INC.		
			
	By:	 	 
	Its	 	 

EMPLOYEE 

									
			
	Signed:	 	 

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