Document:

exv10w1

 

Exhibit 10.1

STERLING CONSTRUCTION COMPANY, INC.

Restricted Stock Agreement

	 	 	 
	Award Date:

	 	[__________________________]
	 
	 	 
	Award Recipient:

	 	[__________________________]
	 
	 	 
	Number of Shares of Common Stock:

	 	[__________________________]
	 
	 	 
	Termination (Vesting) Date:

	 	At 5:00 p.m. Central Time on
the day immediately preceding
the [year] Annual Meeting of
Stockholders

This Restricted Stock Agreement (this “Agreement”) is made effective on the Award Date set
forth above and is entered into between Sterling Construction Company, Inc., a Delaware corporation
(the “Company”) and the above-named Award Recipient (the “Grantee”) pursuant to the Company’s 2001
Stock Incentive Plan (the “Plan”) which is incorporated herein by reference. The Grantee
acknowledges that he has received a copy of the Plan. Capitalized terms used but not defined in
this Agreement have the meanings given to them in the Plan.

This Award constitutes the equity portion of non-employee director compensation due to the Grantee
that has been established by the Corporate Governance & Nominating Committee of the Board of
Directors (the “Board.”) In consideration of the premises and the covenants contained herein, the
parties agree as follows:

	1.	 	Grant of Restricted Stock. Subject to the terms and conditions of this Agreement, the
Company awards to the Grantee, and the Grantee accepts the number of shares of common stock of
the Company set forth above. Those shares together with any additional shares of stock of the
Company issued on account of those shares as a result of stock dividends, stock splits or
recapitalizations (whether by way of mergers, consolidations, combinations or exchanges of
shares or the like) are referred to in this Agreement as the “Restricted Stock.”)
	 
	2.	 	Restrictions.

Until the termination of the restrictions, the Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise disposed of or encumbered except as provided
in this Agreement.

No rights or interests of the Grantee under this Agreement or under the Plan may be
assigned, encumbered or transferred except by will or the laws of descent and
distribution.

On the date the Grantee ceases to be a director of the Company for any reason other his
death or Disability (as defined below) all Restricted Stock that is then subject to the
restrictions imposed under this Section 2 shall be forfeited and returned to the
Company unless the Board in its discretion shall determine otherwise.

Definition of Disability. As used herein, the term “Disability” means the Grantee’s
inability by reason of physical or mental impairment to perform service as a director
for ninety or more days within any six-month period. Any dispute as to whether a
Disability exists will be finally resolved by an independent qualified physician
acceptable to the Company and the Grantee or his personal representative, as
appropriate, or, if the Company and the

 

 

Grantee or his representative are unable to agree on an independent qualified physician,
by a panel of three physicians, one designated by the Company, one designated by the
Grantee or his representative, and one designated by the two physicians so designated.
The cost of the determination shall be borne by the Company.

	3.	 	Termination of Restrictions. The restrictions set forth in Section 2, above —

Shall terminate as to the Restricted Stock on the Termination Date set forth above,

Shall terminate earlier in the event the Grantee no longer serves as a member of the
Board by reason of his death or Disability, and

Shall terminate in the event of a Change in Control of the Company as described in
Section 9, below.

	 	 	Whether and when Vesting has occurred (other than by reason of the passage of time) shall be
determined by the Board in its sole discretion.
	 
	4.	 	Rights as Stockholder. Except for the restrictions and the other limitations and conditions
set forth in this Agreement, the Grantee as owner of the Restricted Stock shall have all the
rights of a stockholder, including but not limited to the right to receive any dividends paid
on the Restricted Stock and the right to vote the Restricted Stock.
	 
	5.	 	Stock Certificates.

Each certificate representing Restricted Stock shall be registered in the name of the
Grantee and shall be deposited with the Company by the Grantee together with a stock
power endorsed in blank and shall bear the following (or a similar) legend:

“The transferability of this certificate and the shares of stock represented
hereby are subject to the terms, conditions and restrictions (including forfeiture
provisions) contained in a stock incentive plan and in an agreement between the
registered owner and the issuer. A copy of the plan and the agreement will be
furnished to the holder of this certificate by the issuer without charge upon
written request.”

Upon the termination of the restrictions imposed by this Agreement, the Company
shall return to the Grantee (or to the Grantee’s legal representative, as appropriate) a
certificate for the Restricted Stock without the legend referred to in Section
0, above.

	6.	 	Tax Withholding. The Grantee shall pay to the Company or shall make provision satisfactory
to the Company for payment of any taxes required by law to be paid by or withheld from the
Grantee with respect to the Restricted Stock no later than the date of the event creating the
tax liability. To the extent permitted by law, the Company may deduct any such tax obligation
if not paid when due from any payment of any kind due from the Company to the Grantee.
	 
	7.	 	Securities and Other Laws. It shall be a condition to the Grantee’s right to receive the
Restricted Stock hereunder that the Company may, in its discretion, require —

that the Restricted Stock shall have been duly listed, upon official notice of issuance,
upon any national securities exchange or automated quotation system on which the
Company’s common stock may then be listed or quoted;

that either (a) a registration statement under the Securities Act of 1933 (the “Act”)
with respect to the Restricted Stock shall be in effect; or (b) in the opinion of
counsel to the Company, the proposed issuance and delivery of the Restricted Stock to
the Grantee shall be exempt from registration under the Act in which event, the Grantee
shall have made such undertakings and agreements with the Company as the Company may
reasonably require; and

 

 

that such other steps, if any, as counsel to the Company shall consider necessary to
comply with any law applicable to the issuance of the Restricted Stock shall have been
taken by the Company or the Grantee, or both. The certificate representing the
Restricted Stock may contain such legends as counsel for the Company shall consider
necessary to comply with any applicable law.

	8.	 	Adjustment in Provisions. Upon any change from time to time in the outstanding common stock
of the Company by reason of a stock dividend, extraordinary cash dividend, recapitalization,
reorganization, merger, consolidation, split-up, spin-off, combination, exchange of shares or
other such transaction affecting the Company’s common stock, the relevant parts of this
Agreement shall be appropriately adjusted by the Company, if necessary, to reflect such change
equitably.
	 
	9.	 	Change in Control. Notwithstanding any other provision of this Agreement, in order to
preserve the Grantee’s rights under this Agreement, upon a Change in Control of the Company,
all the restrictions imposed on the Restricted Stock by Section 2, above, shall
terminate.
	 
	10.	 	Notice of Election Under Section 83(b). If the Grantee makes an election under Section 83(b)
of the Internal Revenue Code of 1986, as amended, and the regulations and rulings promulgated
thereunder or under comparable provisions of other laws, he will provide a copy thereof to the
Company within thirty days of the filing of such election with the Internal Revenue Service or
other authority.
	 
	11.	 	Amendments. The Board may amend, modify or terminate this Agreement, including substituting
therefor another Award of the same or a different type, provided that the Grantee’s consent to
such action shall be required unless the Board determines that the action, taking into account
any related action, would not materially and adversely affect the Grantee.
	 
	12.	 	Decisions by the Board.

Any dispute or disagreement that arises under, or as a result of, or pursuant to, this
Agreement shall be resolved by the Board in its sole and absolute discretion, and any
such resolution or any other determination by the Board under, or pursuant to, this
Agreement and any interpretation by the Board of the terms of this Agreement or the Plan
shall be final, binding, and conclusive on all persons affected thereby.

For purposes of this Agreement, any action that is required to be or that may be taken
by the Board, shall mean taken in accordance with the by-laws of the Company by the
directors then in office, but excluding therefrom the Grantee so that the Board shall be
considered to consist of all directors then in office other than the Grantee.

In Witness Whereof, the Board has caused this Agreement to be executed by the Chairman of
the Board, and the Grantee has hereunto set his hand and seal, all effective on the Award Date.

Sterling Construction Company, Inc.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 
	 	 	 	 
	 	 
	 

	 	Patrick T. Manning, Chairman
	 	 	 	[Name of the Grantee]exv10w1

 

EXHIBIT 10.1

     THIS
FUTURE TRANSACTION FEE AGREEMENT is dated as of
May 11, 2006 (this “Agreement”) and is between HealthMarkets, Inc., a Delaware corporation
(“HealthMarkets” or the “Company”) and Blackstone Management Partners IV L.L.C.
(the “Advisor”).

RECITALS

     WHEREAS, the Advisor has expertise in the areas of finance, strategy, investment, acquisitions
and other matters relevant to the Company and its business.

     WHEREAS, the Advisor is willing to use its expertise to provide substantial financial and
structural analysis, due diligence investigations, corporate strategy, and other advice and
assistance in connection with the certain future transactions the Company may consider and engage
in from time to time.

     WHEREAS, the Company desires to avail itself and its subsidiaries of the Advisor’s expertise
in providing financial and structural analysis, due diligence investigations, corporate strategy,
and other advice and assistance, which the Company believes will be beneficial to it and its
subsidiaries, and the Advisor wishes to provide the services to the Company as set forth in this
Agreement in consideration of the payment of the fees described below.

     NOW, THEREFORE, in consideration of the premises and agreements contained herein and of other
good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree
as follows:

AGREEMENT

     SECTION 1. Services.

     (a) The Advisor agrees to be prepared and available to provide to the Company, to the extent
appropriate and reasonably requested by the Company, by and through itself, its affiliates and/or
such respective officers, employees, representatives and third parties (collectively hereinafter
referred to as the “Advisor Designees”) as the Advisor in its sole discretion may designate
from time to time, financial and strategic advisory services (“Services”) in relation to
actual and potential Future Transactions (as defined below), including, without limitation, (a)
financial and structural analysis, due diligence investigations, corporate strategy, and other
advice and assistance, (b) advice regarding the structure, terms, conditions and other provisions,
distribution and timing of debt and equity offerings and advice regarding relationships with the
Company’s and its subsidiaries’ lenders and bankers, (c) advice regarding the Company’s acquisition
strategy, and (d) such other advice directly related or ancillary to the above financial advisory
services as may be reasonably requested by the Company; provided that if the Investor Group
(as defined in the Stockholders Agreement) affiliated with the Advisor holds 5% or less of the
outstanding shares of common stock of HealthMarkets, the Advisor will not be obligated to be
prepared and available to provide any Services. “Stockholders Agreement” means the
Stockholders Agreement, dated as of April 5, 2006, by and among the Company and the stockholders
named therein.

 

 

     (b) It is expressly agreed that the Services to be performed under this Agreement will not
include any investment banking or other financial advisory services which may be provided by any
affiliate of the Advisor in connection with any actual or potential acquisition, divestiture,
financing, refinancing, recapitalization or other transaction involving the Company or any of its
subsidiaries.

     SECTION 2. Fees.

     (a) In consideration for the Advisor being prepared and available to provide Services (but
regardless of whether the Company elects to avail itself of such preparedness and availability), in
connection with any acquisition, divestiture, sale of all or part of the business, business
combination, financing, refinancing, recapitalization or similar transaction by the Company or any
of its subsidiaries (any such transaction, a “Future Transaction”), the Advisor or any
Advisor Designee designated by the Advisor from time to time shall be entitled to receive upon
consummation of (i) any such acquisition, disposition, sale, business combination, a fee equal to
(x) 0.6193% of the aggregate enterprise value of the acquired, divested, sold or combined,
financed, refinanced or recapitalized entity (calculated, on a consolidated basis for such entity,
as the sum of (1) the market value of its common equity (or the fair market value thereof if not
publicly traded), (2) the value of its preferred stock (at liquidation value), (3) the book value
of its minority interests and (4) its aggregate long- and short-term debt, less its unrestricted
cash), or (y) if such transaction is structured as an asset purchase or sale, 0.6193% of the
consideration paid for or received in respect of the assets acquired, disposed of or combined with
plus liabilities assumed and (ii) any such financing, refinancing or recapitalization, a fee equal
to 0.6193% of the aggregate value of the securities subject to such financing, refinancing or
recapitalization (in each such case as described in (i) and (ii), the “Contingent Fee”).
Under no circumstance shall the aggregate Contingent Fees paid pursuant to the Contingent Fee
Agreements (as defined below) be less than the aggregate fees paid to all third party advisors in
connection with such acquisition, divestiture, sale, business combination, financing, refinancing,
recapitalization or similar transaction. “Contingent Fee Agreements” means this Agreement
and any similar future transaction fee agreements entered into by the Company approximately
concurrently with the execution of this Agreement.

     (b) Timing and Method of Payments. Each Contingent Fee shall become due and payable
upon the earlier of the execution of any agreement or commitment with respect to the relevant
Future Transaction or the consummation thereof, and shall be paid promptly upon consummation of the
relevant Future Transaction. All amounts paid by the Company to the Advisor or its Advisor
Designee pursuant to this Section 2 shall be made by wire transfer in same-day funds on the date of
the consummation of the relevant Future Transaction to the respective bank accounts designated by
the Advisor or its Advisor Designee, and shall not be refundable under any circumstances.

     SECTION 3. Reimbursements.

     In addition to the fees payable pursuant to this Agreement, from time to time as proper
invoices are presented, the Company will pay directly or reimburse the Advisor and each of its
Advisor Designees for their respective Out-of-Pocket Expenses (as defined below). For the purposes
of this Agreement, the term “Out-of-Pocket Expenses” means the out-of-pocket costs

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and expenses incurred by an Advisor or its Advisor Designees in connection with the Services
provided under this Agreement, including, without limitation, (a) fees and disbursements of any
independent professionals and organizations, including independent accountants, financial advisor,
outside legal counsel, advisor or consultants, retained by the Advisor or any of its Advisor
Designees, (b) costs of any outside services or independent contractors such as couriers, business
publications, on-line financial services or similar services, retained or used by the Advisor or
any of its Advisor Designees, and (c) transportation, per diem costs, word processing expenses or
any similar expense not associated with the Advisor or its Advisor Designees’ ordinary operations.
All payments or reimbursements for Out-of-Pocket Expenses will be made by wire transfer in same-day
funds to the bank accounts designated by the Advisor or its Advisor Designee (if such Out-of-Pocket
Expenses were incurred by the Advisor or its Advisor Designees) promptly upon or as soon as
practicable following request for payment or reimbursement in accordance with this Agreement, or at
the Advisor’s election to the account indicated to the Company by the relevant payee.

     SECTION 4. Indemnification.

     (a) The Company will indemnify and hold harmless, to the full extent permitted by law, the
Advisor, its Advisor Designees and their respective partners (both general and limited), members
(both managing and otherwise), stockholders, officers, directors, advisory directors, managing
directors, employees, agents, representatives and affiliates (as the term is defined in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as in effect on the date hereof) (other than
the Company and its subsidiaries) (and partners (both general and limited), members (both managing
and otherwise), stockholders, officers, directors, advisory directors, managing directors,
employees, agents, representatives and controlling persons thereof) (each such person being an
“Indemnified Party”) against any and all losses, claims, damages and liabilities, including
in connection with seeking indemnification, whether joint or several (the “Liabilities”),
related to, arising out of or in connection with the Services under this Agreement or the
engagement of the Advisor or its Advisor Designees pursuant to and the performance by the Advisor
and its Advisor Designees of the Services under this Agreement, whether or not pending or
threatened, whether or not an Indemnified Party is a party, whether or not resulting in any
liability and whether or not such action, claim, suit, investigation or proceeding is initiated or
brought by the Company. The Company will reimburse any Indemnified Party for all reasonable costs
and expenses (including without limitation reasonable attorneys’ fees and any and all expenses
incurred investigating, preparing or defending against any litigation, commenced or threatened, or
any claim, and any and all amounts paid in any settlement of any such claim or litigation) as they
are incurred in connection with investigating, preparing, pursuing, defending or assisting in the
defense of any action, claim, suit, investigation or proceeding for which the Indemnified Party
would be entitled to indemnification under the terms of the previous sentence, or any action or
proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. The
Company will not be liable under the foregoing indemnification provision with respect to any
particular loss, claim, damage, liability, cost or expense of an Indemnified Party to the extent
that such is determined by a court, in a final judgment from which no further appeal may be taken,
to have resulted primarily from the gross negligence or willful misconduct of such Indemnified
Party. The attorneys’ fees and other expenses of an Indemnified Party shall be paid by the Company
as they are incurred upon receipt, in each case, of an undertaking by or on behalf of the
Indemnified Party to repay such amounts if it is finally judicially determined that the Liabilities
in question resulted primarily

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from the gross negligence or willful misconduct of such Indemnified Party. Such
indemnification obligation shall be in addition to any liability that the Company may otherwise
have to any other such Indemnified Party. The provisions of this Section 4 are intended to be for
the benefit of, and shall be enforceable by, each Indemnified Party and its respective successors,
heirs and representatives.

     (b) If such indemnification is for any reason not available or insufficient to hold an
Indemnified Party harmless, the Company agrees to contribute to the Liabilities involved in such
proportion as is appropriate to reflect the relative benefits received (or anticipated to be
received) by the Company, on the one hand, and by the Advisor or Advisor Designee, on the other
hand, with respect to the Services or, if such allocation is determined by a court or arbitral
tribunal to be unavailable, in such proportion as is appropriate to reflect other equitable
considerations such as the relative fault of the Company, on the one hand, and of the Advisor or
Advisor Designee, on the other hand; provided, however, that to the extent
permitted by applicable law, the Indemnified Parties shall not be responsible for amounts which in
the aggregate are in excess of the amount of all fees actually received by the Advisor and Advisor
Designees from the Company with respect to the Services. Relative benefits to the Company, on the
one hand, and to the Advisor and Advisor Designees, on the other hand, with respect to the Services
shall be deemed to be in the same proportion as (i) the total value received or proposed to be
received by the Company in connection with the Services or any transactions to which the Services
relates bears to (ii) all fees actually received by the Advisor and Advisor Designees in connection
with the Services. Relative fault shall be determined, in the case of Liabilities arising out of
or based on any untrue statement or any alleged untrue statement of a material fact or omission or
alleged omission to state a material fact, by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company to the Advisor and Advisor Designees
and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act of 1933, as amended) shall be entitled
to contribution from any person who was not guilty of such fraudulent misrepresentation.

     (c) Upon receipt by an Indemnified Party of actual notice of any pending or threatened action,
claim, suit, investigation or proceeding (an “Action”) against such Indemnified Party with
respect to which indemnity may be sought under this Agreement, such Indemnified Party shall
promptly notify the Company in writing; provided that failure to so notify the Company
shall not relieve the Company from any liability which the Company may have on account of the
indemnity provision under this Agreement or otherwise, except to the extent the Company shall have
been materially prejudiced by such failure. The Company shall, if requested by such Indemnified
Party, assume the defense of any such Action including the employment of counsel reasonably
satisfactory to such Indemnified Party. Any Indemnified Party shall have the right to employ
separate counsel in any such action and participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party, unless: (i) the
Company has failed to assume the defense and employ counsel promptly or (ii) the named parties to
any such Action (including any impleaded parties) include such Indemnified Party and the Company,
and such Indemnified Party shall have been advised by counsel that there may be one or more legal
defenses available to it which are different from or in addition to those available to the Company;
provided that the Company shall not in such

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event be responsible hereunder for the fees and expenses of more than one firm of separate
counsel in connection with any Action in the same jurisdiction, in addition to any local counsel.
The Company will not, without the Advisor’s prior written consent, settle, compromise, or consent
to the entry of any judgment in or otherwise seek to terminate any Action in respect of which
indemnification may be sought hereunder (whether or not any Indemnified Party is a party therein)
unless the Company has given the Advisor reasonable prior written notice thereof and such
settlement, compromise, consent or termination includes an unconditional release of each
Indemnified Party from any liabilities arising out of such Action. The Company will not permit any
such settlement, compromise, consent or termination to include a statement as to, or an admission
of, fault, culpability or a failure to act by or on behalf of an Indemnified Party, without such
Indemnified Party’s prior written consent. No Indemnified Party seeking indemnification,
reimbursement or contribution under this Agreement will, without the Company’s prior written
consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate
any Action referred to herein.

     (d) Prior to entering into any agreement or arrangement with respect to, or effecting, any
merger, statutory exchange or other business combination or proposed sale or exchange, dividend or
other distribution or liquidation of all or a significant portion of its assets in one or a series
of transactions or any significant recapitalization or reclassification of its outstanding
securities that does not directly or indirectly provide for the assumption of the obligations of
the Company set forth herein, the Company will promptly notify the Advisor in writing thereof and,
if requested by the Advisor, shall arrange in connection therewith alternative means of providing
for the obligations of the Company set forth herein, including the assumption of such obligations
by another party, insurance, surety bonds or the creation of an escrow, in each case in an amount
and on terms and conditions satisfactory to the Advisor.

     (e) The Company’s obligations hereunder shall be in addition to any rights that any
Indemnified Party may have at common law or otherwise. The Company acknowledges that in connection
with the Services the Advisor and Advisor Designees are acting as independent contractors and not
in any other capacity with duties owing solely to the Company.

     (f) The provisions of this Section and any modification thereof shall apply to the Services
provided to the Company by the Advisor or its Advisor Designees (including related activities prior
to the date hereof) and shall remain in full force and effect regardless of the completion or
termination of this Agreement. If any term, provision, covenant or restriction herein is held by a
court of competent jurisdiction to be invalid, void or unenforceable or against public policy, the
remainder of the terms, provisions and restrictions contained herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.

     SECTION 5. Accuracy of Information.

     The Company shall furnish or cause to be furnished to the Advisor and its Advisor Designees
such information as the Advisor or its Advisor Designees believe reasonably appropriate to their
Services hereunder and to comply with Securities and Exchange Commission or other legal
requirements relating to the beneficial ownership by the Investors (as defined in the Stockholders
Agreement) of equity securities of the Company (all such information so furnished, the
“Information”). The Company recognizes and confirms that the Advisor (a) has and will use
and rely primarily on the Information and on information available from generally recognized public
sources in performing the Services contemplated by this Agreement without

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having independently verified the same, (b) does not assume responsibility for the accuracy or
completeness of the Information and such other information and (c) is entitled to rely upon the
Information without independent verification.

     SECTION 6. Term.

     This Agreement shall terminate upon the earlier of (i) the Termination Date (as defined
below), and (ii) the date upon which the Lump Sum Payment (as defined in the Transaction and
Monitoring Fee Agreement (as defined below)) is made pursuant to the Transaction and Monitoring Fee
Agreement; provided, in the case of clause (ii) that, in the event that, within six months
after the date upon which the Lump Sum Payment is made, the Company enters into a Future
Transaction, the Advisor or its Advisor Designees shall be entitled to receive the Contingent Fee
payable in connection with such Future Transaction in accordance with Section 2, such fee to be
paid immediately upon the earlier of the execution of any agreement or commitment with respect
thereto or the consummation thereof; provided, further, with respect to either of
clauses (i) or (ii), that the Company’s obligations pursuant to Sections 2, 3, and 4, and its
obligation to pay any unpaid amounts that have otherwise become due and payable hereunder, shall
survive any such termination. “Termination Date” means the earliest of (x) April 5, 2016,
(y) such time as the Advisor is no longer obligated to be prepared and available to provide
Services pursuant to Section 1(a) and (z) such earlier date as the Company and the Majority Sponsor
Stockholders (as defined in the Stockholders Agreement) may mutually agree upon with respect to all
of the Contingent Fee Agreements. “Transaction and Monitoring Fee Agreement” means the
Transaction and Monitoring Fee Agreement, dated as of April 5, 2006, by and between the Company and
the Advisor.

     SECTION 7. Permissible Activities.

     Nothing herein will in any way preclude the Advisor or its Advisor Designees (other than the
Company or its subsidiaries and their respective employees) or their respective partners (both
general and limited), members (both managing and otherwise), officers, directors, employees,
affiliates, agents or representatives from engaging in or investing in any business activities or
from performing services for its or their own account or for the account of others, including for
companies that may be or are in competition with the Company or any of its subsidiaries in any
business conducted by the Company or its subsidiaries.

     SECTION 8. Miscellaneous.

     (a) This Agreement may be amended, modified or supplemented without consent or signature of
the Advisor, but only in writing by the Company and Sponsor Stockholders (as defined in the
Stockholders Agreement) that own not less than 70% of the Sponsor Shares (as defined in the
Stockholders Agreement); provided, however, that this Agreement may be amended by
the Company and the Majority Sponsor Stockholders (as defined in the Stockholders Agreement) to
increase or decrease fees payable by the Company, provided that the fees payable by the Company
under all Contingent Fee Agreements in which the advisor thereunder is still obligated to be
prepared and available to provide Services as specified in Section 1(a) of each Contingent Fee
Agreement are increased or decreased in the same proportion; provided, further,
that any amendment, modification or supplement that affects the Advisor adversely and
disproportionately relative to the advisors under any other Contingent Fee Agreements shall require
the consent of the Advisor. Any party hereto may, on behalf of itself

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only, (i) extend the time for the performance of any of the obligations or other acts of the
other parties hereto, (ii) waive any inaccuracies in the representations and warranties of any
other party contained herein or in any document delivered pursuant hereto, and (iii) waive
compliance by any other party with any of the agreements or conditions contained herein. Any
agreement on the part of a party hereto to any such extension or waiver shall be valid only if set
forth in an instrument in writing signed by the party granting such waiver, but such waiver or
failure to insist upon strict compliance with such obligation, covenant, agreement or condition
shall not operate as a waiver of, or estoppel with respect to, any subsequent or future failure.
Any amendment, waiver or consent will be effective only in the specific instance and for the
specific purpose for which given.

     (b) Any notices, demands, requests, waivers, or other communications required or permitted
under this Agreement shall be in writing and shall be addressed as follows:

	 	 	 	 	 
	 

	 	To the Company:
	 	HealthMarkets, Inc.
	 

	 	 	 	9151 Grapevine Highway
	 

	 	 	 	North Richland Hills, TX 76180
	 

	 	 	 	Facsimile: (817) 255-5334
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	To the Advisor:
	 	Blackstone Management Partners IV L.L.C.
	 

	 	 	 	345 Park Avenue, 31st Floor
	 

	 	 	 	New York, NY 10154
	 

	 	 	 	Facsimile: (212) 583-5722
	 

	 	 	 	Attention: Chinh E. Chu
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Wachtell, Lipton, Rosen & Katz
	 

	 	 	 	51 West 52nd Street
	 

	 	 	 	New York, NY 10019
	 

	 	 	 	Facsimile: (212) 403-2000
	 

	 	 	 	Attention: Mark Gordon, Esq.

Unless otherwise specified herein, such notices or other communications will be deemed received (i)
on the date delivered, if delivered personally, and (ii) one business day after being sent by
overnight courier.

     (c) This Agreement sets forth the entire understanding and agreement of the parties hereto
with respect to the subject matter hereof, and will supersede all previous oral and written (and
all contemporaneous oral) negotiations, commitments, agreements and understandings relating hereto.

     (d) This Agreement will be governed by, and construed in accordance with, the laws of the
State of New York.

     (e) The parties hereby irrevocably and unconditionally consent to submit to the exclusive
jurisdiction of the federal courts of the Southern District of New York and New York State courts
sitting in New York City for any actions, suits or proceedings arising out of or relating to this
Agreement and the transactions contemplated hereby (and agree not to commence

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any action, suit or proceeding relating thereto except in such courts, and further agree that
service of any process, summons, notice or document by U.S. registered mail to its address set
forth above shall be effective service of process for any action, suit or proceeding brought
against such party in any such court). The parties hereby irrevocably and unconditionally waive
any objection to the laying of venue of any action, suit or proceeding arising out of this
Agreement or the transactions contemplated hereby in the federal courts of the Southern District of
New York and New York State courts sitting in New York City, and hereby further irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such action, suit
or proceeding brought in any such court has been brought in an inconvenient forum.

     (f) The provisions of this Agreement are binding upon and inure to the benefit of the parties
hereto and their respective successors. Subject to the next sentence, no Person other than the
parties hereto and their respective successors is intended to be a beneficiary of this Agreement.
The parties acknowledge and agree that the Advisor Designees and the respective partners (both
general and limited), members (both managing and otherwise), stockholders, officers, directors,
advisory directors, managing directors, employees, agents, representatives and affiliates of the
Advisor and its Advisor Designees are third-party beneficiaries under Section 4 of this Agreement.
The Advisor shall have the right to assign this Agreement to its affiliate or affiliates.

     (g) This Agreement may be executed by one or more parties to this Agreement on any number of
separate counterparts (including by facsimile), and all of said counterparts taken together will be
deemed to constitute one and the same instrument.

     (h) Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction
will, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction will not invalidate or render unenforceable such provision in any other
jurisdiction.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this Future
Transaction Fee Agreement on the date first written above.

	 	 	 	 	 	 
	 	HEALTHMARKETS, INC.	 	 
	 	 	 	 	 	 
	 	By:	 	/s/ William J. Gedwed 	 	 
	 	 	 	 

Name: William J. Gedwed
	 
	 	 	 	Title: President and Chief Executive
Officer	 

[HealthMarkets Signature Page to Future Transaction Fee Agreement]

 

 

	 	 	 	 	 	 	 
	 	 	BLACKSTONE MANAGEMENT PARTNERS IV L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Chinh E. Chu 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Blackstone Signature Page to Future Transaction Fee Agreement]

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