What is the primary purpose of these stock forward contracts?

The primary purpose of these forward contracts is for DRHCLH Partnership, L.P. to sell a portion of Quanta Services, Inc. common stock it controls over a three-year period. The partnership receives an upfront payment and has the opportunity to benefit from future stock price appreciation.

How does this transaction affect Quanta Services, Inc. as a company?

The transaction primarily affects the partnership and its associated board member. For Quanta Services, Inc., it represents a pre-arranged sale of shares by a related party, which could potentially lead to dilution if a large number of shares are delivered at a lower price relative to the upfront payment, or a reduced outstanding share count if cash settlement occurs. The company itself is not directly selling shares in this transaction.

Will David Helwig still have voting rights on the pledged shares?

Yes, the Partnership pledged the shares but retained voting rights on them, except in the event of a default as defined in the pledge agreements.

Are these forward contracts related to Quanta's own stock repurchase programs or issuances?

No, these forward contracts are personal transactions entered into by DRHCLH Partnership, L.P., an entity related to a board member, and UBS Securities LLC. They are separate from any potential stock repurchase programs or new stock issuances by Quanta Services, Inc. itself.

PWR 8-K SEC Disclosure — Sep 18, 2007

Summary

Quanta Services, Inc. (PWR) filed an 8-K on September 18, 2007, to disclose a stock transaction involving a board member. Specifically, DRHCLH Partnership, L.P., where a Quanta board member, David Helwig, is a general partner, entered into three stock purchase agreements (Forward Contracts) with UBS Securities LLC. These contracts obligate the Partnership to deliver up to an aggregate of 454,209 shares of Quanta's common stock over three tranches, with settlement dates in September 2008, 2009, and 2010. The number of shares delivered will be based on the market price at the time of delivery, or the Partnership may opt to deliver an equivalent amount of cash. The Partnership received an upfront payment and retains voting rights on the pledged shares, except in cases of default.

Key Highlights

1DRHCLH Partnership, L.P., associated with Board Member David Helwig, entered into stock forward contracts.
2Up to 454,209 shares of Quanta common stock are to be delivered over three years (2008, 2009, 2010).
3The number of shares delivered is variable and based on the future market price of Quanta's stock.
4The Partnership received an upfront payment for these forward contracts.
5The Partnership retains voting rights on the pledged shares, with an exception for default.
6These contracts are separate from previously disclosed 10b5-1 trading plans.

QUANTA SERVICES, INC. 8-K Report, Corporate Update (Sep 18, 2007)

Summary

Key Highlights

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