Exhibit 10.4 UTG, Inc. Amended and Restated STOCK RESTRICTION AND BUY-SELL AGREEMENT UTG, Inc. (the "Company") adopted the United Trust Group, Inc. Stock Restriction and Buy-Sell Agreement (the "Initial Agreement") effective __November 1__, 2002. The parties hereto now desire to amend and restate the Initial Agreement in the following manner effective __September 18__, 2003. This Amended and Restated Stock Restriction and Buy-Sell Agreement ("Agreement"), dated ___________, 2005, is made and entered into by and among UTG, Inc., a Delaware corporation (the "Holding Company"), and the undersigned shareholders of the Holding Company (individually a "Shareholder" and, collectively, the "Shareholders"). Background The Holding Company has adopted the United Trust Group, Inc. Employee and Director Stock Purchase Plan (the "Plan") pursuant to which certain employees and directors of the Holding Company and its subsidiaries have been afforded the opportunity to purchase shares of common stock of the Holding Company. Each of the Shareholders is executing this Agreement concurrently with the purchase of shares pursuant to the Plan. As a condition to their participation in, and purchase of shares under, the Plan, the Shareholders are obligated to enter into this Agreement imposing certain restrictions and obligations on themselves and any shares of common stock of the Holding Company now or hereafter issued to them pursuant to the Plan (the "Shares"). As used in this Agreement, the term "participant" refers to an employee or director of the Holding Company who purchases Shares from the Holding Company pursuant to the Plan. Now, therefore, in consideration of the premises and the mutual covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Holding Company and the Shareholders agree as follows: 1. Restriction on Stock. Except as otherwise provided in this Agreement, no Shareholder shall sell, transfer or otherwise dispose of (whether voluntarily or involuntarily or by operation of law) or agree or commit to sell, transfer, or otherwise dispose of all or any part of the Shares owned by the Shareholder without complying with the terms of this Agreement. 2. Permitted Transfers and Sales of Shares. a. Any Shareholder may transfer all or any part of the Shares owned by such Shareholder by gift to or for the benefit of the Shareholder, the Shareholder's spouse, or the Shareholder's children. The transferee shall receive, hold, and/or own such Shares subject to the terms of this Agreement and the obligations hereunder of the transferor Shareholder. b. Any Shareholder may pledge, mortgage or otherwise encumber the Shares owned by such Shareholder; provided, however, that this Agreement shall be binding upon the person in whose favor the Shareholder pledges, mortgages or otherwise encumbers any or all of such Shares, and the pledgee shall receive, hold, and/or own such Shares subject to the terms of this Agreement and the obligations hereunder of the pledgor Shareholder. Notwithstanding the provisions of this Paragraph 2.b., any Shareholder may pledge, mortgage or otherwise encumber any or all of the Shares owned by them for the purpose of securing a loan or loans on behalf of the Holding Company or any affiliate of the Holding Company, and the pledgee of any such Shares shall receive, hold, and/or own such Shares free of the terms and restrictions contained in this Agreement and free of any obligations hereunder imposed on any Shareholder or any other person. For purposes of this Agreement, an "affiliate" shall mean any entity which is controlled by the Holding Company or by Jesse Correll, either individually or collectively. c. Any Shareholder may sell, at any time, all or a portion of the Shares owned by such Shareholder in accordance with the provisions of this Paragraph 2.c. or Paragraph 2.d. below. i. Such Shares must first be offered for sale to the Holding Company, and, within ten days of its receipt of such offer, the Holding Company (or its designee) shall purchase such Shares, at the price and in the manner provided in Paragraph 4; provided, however, that the selling Shareholder shall sell to the Holding Company not less than the lesser of: (1) all of the Shares then owned by such Shareholder; or (2) that number of Shares whose fair value as determined in accordance with Paragraph 4 is at least $1,000. ii. If the Holding Company (or its designee) is unable to purchase all of the Shares to be sold, then the remaining Shareholders will have a ten day option to purchase such Shares (or the remainder of such Shares if the Holding Company purchases less than all of the Shares offered for sale). All Shareholders who exercise their options to purchase such Shares may purchase an amount of such Shares equal to the percentage of Shares they own of the total number of Shares owned by all of the Shareholders exercising their options, at the price and in the manner provided in Paragraph 4. iii. If all or any part of the Shares of the selling Shareholder are not purchased by the Holding Company or the remaining Shareholders, or both, in accordance with the provisions of this Paragraph 2.c, then the selling Shareholder shall be free to sell all, but not less than all, of the Shares not purchased by Holding Company or the remaining Shareholders, for a period of 90 days from the expiration of the option of the remaining Shareholders; provided, however, that at the end of such 90-day period, all restrictions imposed by this Agreement shall again be applicable. d. Any Shareholder may sell, donate or otherwise transfer, at any time, all or a portion of the Shares owned by such Shareholder with the prior consent and approval of the board of directors of the Holding Company. In considering any request by a Shareholder pursuant to this Paragraph 2.d., the board of directors shall not be deemed to be under any obligation to consent to or approve of such request and may condition its consent and approval on such terms and conditions as the board of directors of the Holding Company deems appropriate, in the exercise of its discretion. 3. Events Triggering Holding Company's Right to Reacquire Shares. a. Upon the death of any Shareholder, or the termination of any Shareholder's employment with or service as a director of the Holding Company or any affiliate of the Holding Company (whether by reason of retirement, disability or voluntary or involuntary termination of employment, with or without cause), the Holding Company (or its designee) shall, at its option, have the right to purchase, and in the event of the exercise of such option, the Shareholder, or his or her personal representative, spouse and/or children, as the case may be, shall be required to sell, all or any part of such Shares: i. then held by such Shareholder; or ii. which were transferred by such Shareholder to or for the benefit of such Shareholder or his or her spouse or children in accordance with the terms of Paragraph 2.a of this Agreement; or iii. which were transferred to such Shareholder's spouse in accordance with the terms of a decree of divorce. b. Upon a non-employee, non-director Shareholder's divorce from the participant in the Plan from whom such Shareholder has acquired Shares, the Holding Company shall, at its option, have the right to purchase, and, in the event of the exercise of such option, the Shareholder shall be required to sell, all or any part of such Shares then held by such Shareholder, and, at the discretion of the board of directors of the Holding Company, any Shares which were transferred by such non-employee, non-director Shareholder to his or her children in accordance with Paragraph 2.a. c. Such purchase by the Holding Company upon the exercise of its options to purchase granted under Paragraph 3.a or 3.b above shall be at the price and in the manner provided in Paragraph 4 of this Agreement and shall take place within 90 days of such Shareholder's death or termination of employment or the entry of a decree of divorce. d. If all or any part of the Shares of the selling Shareholder (or his or her personal representative, spouse and/or children who are obligated to sell such Shares, as the case may be) are not purchased by the Holding Company in accordance with the provisions of this Paragraph 3, then the selling Shareholder (or his or her personal representative, spouse and/or children, as the case may be) shall be free to sell all, but not less than all, of the Shares not purchased by Holding Company for a period of 90 days from the expiration of the 90-day period set forth in Paragraph 3.c; provided, however, that at the end of such 90-day period, all restrictions imposed by this Agreement shall again be applicable. 4. Purchase Price and Terms of Purchase. The purchase price for any Shares purchased pursuant to this Agreement shall be, on a per Share basis, equal to the sum of (i) the original purchase price(s) paid to acquire such Shares from the Holding Company at the time they were sold pursuant to the Plan and (ii) the consolidated statutory net earnings (loss) per Share of such Shares during the period from the end of the month next preceding the month in which such Shares were acquired pursuant to the Plan to the end of the month next preceding the month in which the closing of such purchase occurs. The consolidated statutory net earnings per Share shall be computed as the net income of the Holding Company and its subsidiaries on a consolidated basis in accordance with statutory accounting principles applicable to insurance companies, as computed by the Holding Company, less any dividends paid to shareholders. The calculation of net earnings per Share shall be performed on a monthly basis using the number of common shares of the Holding Company outstanding as of the end of the reporting period. The purchase price for any Shares purchased hereunder shall be paid in cash within 60 days from the date of purchase subject to the receipt of any required regulatory approvals as provided in Paragraph 6 of this Agreement. 5. Tag-along Rights. If, during the term of this Agreement, Jesse Correll and his affiliates sell, in one or a series of related transactions, more than 50% of the then outstanding shares of common stock of the Holding Company to any third party who is not an affiliate of Jesse Correll, then all of the Shareholders will be given the opportunity to sell their Shares either to such third party or to the Holding Company on the same terms and conditions as Jesse Correll and his affiliates. 6. Regulatory Approvals. Should any regulatory approvals be required in connection with the purchase of any Shares provided for in this Agreement, the Shares and the purchase price therefor shall be escrowed pending receipt of such approvals. Interest on the purchase price placed in escrow shall accrue to the benefit of the selling Shareholder regardless of whether the sale ultimately takes place. Notwithstanding the necessity of obtaining any regulatory approval, the sale of any Shares hereunder must close, if at all, within 150 days from the date the Shares were first offered for sale or the date of death, termination of employment or divorce of a selling Shareholder. 7. Endorsement on Stock Certificates. All stock certificates representing the Shares of the Holding Company shall contain the following legend: "The shares represented by this certificate may not be transferred except in accordance with the terms contained in a certain Amended and Restated Stock Restriction and Buy-Sell Agreement dated as of ______________, 20__. Transfers in violation of that Agreement are void. A copy of that Agreement may be obtained from UTG, Inc." 8. Notice. Any notice required or permitted under this Agreement shall be in writing, shall be delivered to the residence or principal place of business of the intended recipient as noted on the stock record books of the Holding Company, by either registered mail, overnight courier service or hand delivery, and shall be deemed received the third business day after such notice is deposited in the U.S. mail, postage prepaid the next business day after deposit with an overnight courier service or the date of hand delivery. 9. Binding Effect. This Agreement shall be binding on the parties hereto, their successors, assigns, estates and heirs, and on any transferee of Shares of the Holding Company. As a condition of any transfer of Shares, including any transfer on the books of the Holding Company and the issuance of certificates representing such Shares, the transfer must be made in accordance with this Agreement and the transferee of such Shares shall execute and become a party to this Agreement. Any attempt to transfer Shares or to assign rights and obligations under this Agreement, whether voluntarily or by operation of law, shall be void and shall not be binding on the Holding Company or its Shareholders unless done in accordance with the terms of this Agreement. 10. Other Shareholders. The Holding Company may issue additional Shares pursuant to the Plan for such consideration as may be determined by the Board of Directors of the Holding Company. The Holding Company agrees that no such Shares shall be issued pursuant to the Plan except upon agreement by the purchaser thereof to become a party to and be bound by the provisions of this Agreement by executing this Agreement in the spaces provided below. From and after the date of issuance of such Shares, the purchaser thereof shall, for all purposes, be deemed to be a Shareholder as that term is used in this Agreement. 11. Amendments and Waivers. This Agreement may be amended or modified only by an instrument in writing signed by the Holding Company and the holders of a majority of the outstanding Shares that are subject to this Agreement, and any provision of this Agreement may be waived by the board of directors of the Holding Company; provided, however, that no such amendment, modification or waiver shall, unless by an instrument signed by the Holding Company and all of the Shareholders [i] differ in effect on any Shareholder in a material and adverse manner from the effect of such amendment, modification or waiver on the holders of a majority of the Shares, [ii] create any additional obligation for a Shareholder without creating similar obligations on the other Shareholders without the prior written consent of the Shareholder so affected, or [iii] alter the terms of Paragraph 5 of this Agreement. 12. Termination of Agreement. This Agreement may be voluntarily terminated by the affirmative vote of at least two-thirds of the outstanding Shares. This Agreement will automatically terminate if Jesse Correll and his affiliates sell substantially all of their shares of common stock of the Holding Company and all Shareholders have had the same opportunity to sell their Shares as provided for in Paragraph 5. 13. Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute one and the same agreement. 14. Retroactive Effect; Status of Initial Agreement. This Agreement shall be binding upon each Shareholder who becomes a signatory to this Agreement and shall supersede the Initial Agreement with respect to all shares of common stock of the Holding Company issued to such Shareholder under the Plan. The Initial Agreement shall remain in full force and effect with respect to any participant who is a signatory to the Initial Agreement who does not become a signatory to this Agreement. In the event all participants who are signatories to the Initial Agreement become signatories to this Agreement, the Initial Agreement shall terminate and no longer be of any effect. The failure of any such participant to become a signatory to this Agreement shall not affect the validity or enforceability of this Agreement against any signatory to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. UTG, INC. By_/s/ Theodore C. Miller_________ Title___Senior Vice President_____ UTG, Inc. STOCK RESTRICTION AND BUY-SELL AGREEMENT The undersigned does hereby execute and become a party to the UTG, Inc. Amended and Restated Stock Restriction and Buy-Sell Agreement dated as of _September 18_, 2003. _______________________________ Shareholder Signature Printed Name: ________________________ Date: ________________________
- UTGN Dashboard
- Financials
- Filings
- Insider
- Institutional
-
10-K Filing
Utg (UTGN) 10-K2005 FY Annual report
Filed: 22 Mar 06, 12:00am