Document:

exv4w1

 

Exhibit 4.1

FORTY-SEVENTH AMENDMENT TO THE THIRD

AMENDED AND RESTATED AGREEMENT OF

LIMITED PARTNERSHIP OF AIMCO PROPERTIES, L.P.

     This FORTY-SEVENTH AMENDMENT TO THE THIRD AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP OF AIMCO PROPERTIES, L.P., dated as of May 31, 2005 (this “Amendment”), is being
executed by AIMCO-GP, Inc., a Delaware corporation (the “General Partner”), as the general partner
of AIMCO Properties, L.P., a Delaware limited partnership (the “Partnership”), pursuant to the
authority conferred on the General Partner by Section 7.3.C(7) of the Third Amended and Restated
Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994 (the
“Agreement”). Capitalized terms used, but not otherwise defined herein, shall have the respective
meanings ascribed thereto in the Agreement.

     WHEREAS, pursuant to Section 4.2.A of the Agreement, the General Partner is authorized to
cause the Partnership to issue Partnership Units with such designations, preferences and relative,
participating, optional or other special rights, powers and duties as the General Partner shall
determine and as shall be set forth in a written document attached to and made an exhibit to the
Agreement; and

     WHEREAS, the General Partner has determined that it is in the best interests of the
Partnership to issue up to 5,000 units of a new class of Partnership Units in consideration of
capital contributions to the Partnership in the aggregate amount of up to $780,000.

     NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

     1. The Agreement is hereby amended by the addition of a new exhibit, entitled “Exhibit
YY,” in the form attached hereto, which shall be attached to and made a part of the Agreement.

     2. Each Person to whom the General Partner shall initially cause the Partnership to issue any
of the Partnership Units described on Exhibit YY shall be admitted to the Partnership as a
Limited Partner with the rights of holders of the Partnership Units set forth on Exhibit
YY. The General Partner shall amend Exhibit A to the Agreement to reflect the
admittance of each such Person as a Limited Partner and the issuance of such Partnership Units to
each such Person.

     3. Except as specifically amended hereby, the terms, covenants, provisions and conditions of
the Agreement shall remain unmodified and continue in full force and effect and, except as amended
hereby, all of the terms, covenants, provisions and conditions of the Agreement are hereby ratified
and confirmed in all respects.

 

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.

	 	 	 	 	 
	 	GENERAL PARTNER:

AIMCO-GP, INC.

 	 
	 	By:  	     /s/ Miles Cortez
 	 
	 	 	Name:  	Miles Cortez 	 
	 	 	Title:  	Executive Vice President and General Counsel 	 

2

 

	 	 	 	 	 

EXHIBIT YY

PARTNERSHIP UNIT DESIGNATION

OF THE

CLASS VIII HIGH PERFORMANCE PARTNERSHIP UNITS

OF AIMCO PROPERTIES, L.P.

     1. Number of Units and Designation.

     A class of Partnership Units is hereby designated as “Class VIII High Performance Partnership
Units,” and the number of Partnership Units initially constituting such class shall be five
thousand (5,000), subject to adjustment at the Class VIII High Performance Valuation Date, as
provided in Section 3 hereof.

     2. Definitions.

     For purposes of this Partnership Unit Designation, the following terms shall have the meanings
indicated in this Section 2. Capitalized terms used and not otherwise defined herein shall have
the meanings assigned thereto in the Agreement.

     “AIMCO Equity Capitalization” shall mean the quotient obtained by dividing (i) the sum of the
AIMCO Market Values for each trading day included in the Measurement Period, by (ii) the number of
trading days included in the Measurement Period.

     “AIMCO Market Value” shall mean, for any date, the product of (i) the number of REIT Shares
and Partnership Units (other than Partnership Preferred Units) outstanding as of the close of
business on such date, multiplied by (ii) the Value of a REIT Share on such date.

     “AIMCO Total Return” shall mean the Total Return of the REIT Shares for the Measurement
Period; provided, however, that, for purposes of calculating the security price of
the REIT Shares (i) at the beginning of the Measurement Period, such price shall be $37.49 and (ii)
at the end of the Measurement Period, such price shall be the average of the daily market prices
for twenty (20) consecutive trading days ending immediately prior to the Class VIII High
Performance Valuation Date. The market price for any such trading day shall be:

     (a) if the REIT Shares are listed or admitted to trading on any securities exchange or
The Nasdaq Stock Market’s National Market System, the volume-weighted average of trading
prices on such day, as reported by Bloomberg Financial Markets (or another reliable source
selected by the General Partner), or if no trade takes place on such day, the average of
the closing bid and asked prices on such day, as reported in the principal consolidated
transaction reporting system;

     (b) if the REIT Shares are not listed or admitted to trading on any securities
exchange or The Nasdaq Stock Market’s National Market System, the

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last reported sale price on such day or, if no sale takes place on such day, the
average of the closing bid and asked prices on such day, as reported by a reliable
quotation source designated by the General Partner; or

     (c) if the REIT Shares are not listed or admitted to trading on any securities
exchange or The Nasdaq Stock Market’s National Market System and no such last reported sale
price or closing bid and asked prices are available, the average of the reported high bid
and low asked prices on such day, as reported by a reliable quotation source designated by
the General Partner, or if there shall be no bid and asked prices on such day, the average
of the high bid and low asked prices, as so reported, on the most recent day (not more than
ten (10) days prior to the date in question) for which prices have been so reported;

provided, however, that, if there are no bid and asked prices reported during the
ten (10) days prior to the date in question, the market price of the REIT Shares shall be
determined by the General Partner acting in good faith on the basis of such quotations and other
information as it considers, in its reasonable judgment, appropriate.

     “Agreement” shall mean the Third Amended and Restated Agreement of Limited Partnership of the
Partnership, as amended from time to time.

     “Change of Control” shall mean the occurrence of any of the following events:

          (i) an acquisition (other than directly from the Previous General Partner) of any voting
securities of the Previous General Partner (the “Voting
Securities”) by any “person” (as the term
“person” is used for purposes of Section 13(d) or Section 14(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) immediately after which such person has “beneficial
ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) (“Beneficial
Ownership”) of 20% or more of the combined voting power of the Previous General Partner’s then
outstanding Voting Securities; provided, however, in determining whether a Change of Control has
occurred, Voting Securities that are acquired in a Non-Control Acquisition (as hereinafter defined)
shall not constitute an acquisition that would cause a Change of Control. “Non-Control
Acquisition” shall mean an acquisition by (A) an employee benefit plan (or a trust forming a part
thereof) maintained by (1) the Previous General Partner or (2) any corporation, partnership or
other person of which a majority of its voting power or its equity securities or equity interest is
owned directly or indirectly by the Previous General Partner or in which the Previous General
Partner serves as a general partner or manager (a “Subsidiary”), (B) the Previous General Partner
or any Subsidiary, or (C) any person in connection with a Non-Control Transaction (as hereinafter
defined);

          (ii) the individuals who constitute the Board of Directors of the Previous General Partner as
of January 1, 2005 (the “Incumbent Board”) cease for any reason to constitute at least two-thirds
(2/3) of the Board of Directors; provided, however, that if the election, or nomination for election
by the Previous General Partner’s stockholders, of any new director was approved by a vote of at
least two-thirds (2/3) of the Incumbent Board, such new director shall be considered as a member of
the Incumbent

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Board; provided, further, that no individual shall be considered a member of the Incumbent
Board if such individual initially assumed office as a result of either an actual or threatened
“election contest” (as described in Rule 14a-11 promulgated under the Exchange Act) (an “Election
Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of a
person other than the Board of Directors (a “Proxy
Contest”) including by reason of any agreement
intended to avoid or settle any Election Contest or Proxy Contest; or

          (iii) approval by stockholders of the Previous General Partner of: (A) a merger,
consolidation, share exchange or reorganization involving the Previous General Partner, unless (1)
the stockholders of the Previous General Partner, immediately before such merger, consolidation,
share exchange or reorganization, own, directly or indirectly immediately following such merger,
consolidation, share exchange or reorganization, at least 80% of the combined voting power of the
outstanding voting securities of the corporation that is the successor in such merger,
consolidation, share exchange or reorganization (the
“Surviving Company”) in substantially the same
proportion as their ownership of the Voting Securities immediately before such merger,
consolidation, share exchange or reorganization, (2) the individuals who were members of the
Incumbent Board immediately prior to the execution of the agreement providing for such merger,
consolidation, share exchange or reorganization constitute at least
two-thirds (2/3) of the members
of the board of directors of the Surviving Company, and (3) no persons (other than the Previous
General Partner or any Subsidiary, any employee benefit plan (or any trust forming a part thereof)
maintained by the Previous General Partner, the Surviving Company or any Subsidiary, or any person
who, immediately prior to such merger, consolidation, share exchange or reorganization had
Beneficial Ownership of 15% or more of the then outstanding Voting Securities has Beneficial
Ownership of 15% or more of the combined voting power of the Surviving Company’s then outstanding
voting securities (a transaction described in clauses (1) through (3) is referred to herein as a
“Non-Control Transaction”); (B) a complete liquidation or dissolution of the Previous General
Partner; or (C) an agreement for the sale or other disposition of all or substantially all of the
assets of the Previous General Partner to any person (other than a transfer to a Subsidiary).

     Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely because
any person (a “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of
the outstanding Voting Securities as a result of the acquisition of Voting Securities by the
Previous General Partner that, by reducing the number of Voting Securities outstanding, increases
the proportional number of shares Beneficially Owned by such Subject Person, provided that if a
Change of Control would occur (but for the operation of this sentence) as a result of the
acquisition of Voting Securities by the Previous General Partner, and after such share acquisition
by the Previous General Partner, such Subject Person becomes the Beneficial Owner of any additional
Voting Securities that increases the percentage of the then outstanding Voting Securities
Beneficially Owned by such Subject Person, then a Change of Control shall occur.

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     “Class VIII High Performance Cash Amount” shall mean, as of any date, the lesser of (i) an
amount of cash equal to the amount that a Holder would receive in respect of each Class VIII High
Performance Partnership Unit if the Partnership sold all of its properties at their fair market
value (which may be determined by reference to the Value of a REIT Share), paid all of its debts
and distributed the remaining proceeds to the Partners as provided in Section 13.2 of the
Agreement, determined as of the applicable Valuation Date, or (ii) in the case of a Declination
followed by a Public Offering Funding, the Public Offering Funding Amount.

     “Class VIII High Performance Partnership Unit” shall mean a Partnership Unit with the
designations, preferences and relative, participating, optional or other special rights, powers and
duties as are set forth in this Exhibit YY.

     “Class VIII High Performance Valuation Date” shall mean the earlier to occur of (i) January 1,
2008, or (ii) the date on which a Change of Control occurs.

     “Determination Date” shall mean (i) when used with respect to any dividend or other
distribution, the date fixed for the determination of the holders of the securities entitled to
receive such dividend or distribution, or, if a dividend or distribution is paid or made without
fixing such a date, the date of such dividend or distribution, and (ii) when used with respect to
any split, subdivision, reverse stock split, combination or reclassification of securities, the
date upon which such split, subdivision, reverse stock split, combination or reclassification
becomes effective.

     “Dilution Limit” shall mean an amount equal to the product of (i) 1.0% of the total number of
REIT Shares and Partnership Common Units outstanding on the Class VIII High Performance Valuation
Date, on a fully diluted basis (excluding any Partnership Common Units held by the Previous General
Partner or any of its wholly owned subsidiaries), and (ii) a fraction, the numerator of which is
the number of Pre-Adjustment Units, and the denominator of which is 5,000.

     “Ex-Date” shall mean (i) when used with respect to any dividend or distribution, the first
date on which the securities in respect of which the dividend or distribution is payable trade
regular way on the relevant exchange or in the relevant market without the right to receive such
dividend or distribution, and (ii) when used with respect to any split, subdivision, reverse stock
split, combination or reclassification of securities, the first date on which the securities trade
regular way on such exchange or in such market to reflect such split, subdivision, reverse stock
split, combination or reclassification becoming effective.

     “Extraordinary Distribution” shall mean the distribution by the Previous General Partner, by
dividend or otherwise, to all holders of its REIT Shares of evidences of its indebtedness or
assets (including securities) other than cash.

     “Hurdle Rate of Return” shall mean the greater of (i) 36.8% (or if the Measurement Period is
less than three years, a percentage equal to the return over the

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Measurement Period that would result in a cumulative return of 36.8% over a three year period
with annual compounding) or (ii) 115% of the Industry Total Return.

     “Industry Total Return” shall mean the Total Return of the securities included in the Industry
Peer Group Index for the Measurement Period, with such average determined in a manner consistent
with the manner in which such index is calculated; provided, however, that if such
Total Return would be less than zero without giving effect to the reinvestment of dividends, then
the “Industry Total Return” shall be equal to zero.

     “Industry Peer Group Index” shall mean the Morgan Stanley Dean Witter REIT Index or any other
similar industry index approved by the Board of Directors of the Previous General Partner.

     “Measurement Period” shall mean the period from and including January 1, 2005 to but excluding
the Class VIII High Performance Valuation Date.

     “Outperformance Return” shall mean the amount (measured as a percentage), if any, by which the
AIMCO Total Return exceeds the Hurdle Rate of Return. If the AIMCO Total Return does not exceed
the Hurdle Rate of Return, “Outperformance Return” shall be 0%.

     “Partnership” shall mean AIMCO Properties, L.P., a Delaware limited partnership.

     “Pre-Adjustment Units” shall mean the Class VIII High Performance Partnership Units issued and
outstanding immediately prior to the Class VIII High Performance Valuation Date.

     “Total Return” shall mean, for any security and for any period, the cumulative total return
for such security over such period, as measured by (i) the sum of (A) the cumulative amount of
dividends paid in respect of such security for such period (assuming that all dividends other than
Extraordinary Distributions are reinvested in such security as of the payment date for such
dividend based on the security price on the dividend payment date), and (B) an amount equal to (1)
the security price at the end of such period, minus (2) the security price at the beginning of such
period, divided by (ii) the security price at the beginning of the measurement period;
provided, however, that if the foregoing calculation results in a negative number,
the “Total Return” shall be equal to zero.

     “Value” shall have the meaning set forth in the Agreement, except that Value shall be
determined by reference to the average of the daily market prices for twenty (20) consecutive
trading days rather than ten (10) consecutive trading days.

     3. Adjustment of Units at Class VIII High Performance Valuation Date.

          On the Class VIII High Performance Valuation Date, without any action on the part of the
Partnership, the General Partner or the Holder of any Class VIII High

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Performance Partnership Unit, each Class VIII High Performance Partnership Unit shall
automatically be adjusted to equal (a) if the Outperformance Return is 0%, 1/100 of a Class VIII
High Performance Partnership Unit, or (b) if the Outperformance Return is greater than 0%, the
lesser of (i) the Dilution Limit divided by the number of Pre-Adjustment Units, or (ii) the
quotient obtained by dividing (x) the product of (A) 5% of the Outperformance Return, multiplied by
(B) a fraction, the numerator of which is the number of Pre-Adjustment Units, and the denominator
of which is 5,000, multiplied by (C) the AIMCO Equity Capitalization, by (y) the product of (A) the
number of Pre-Adjustment Units and (B) the Value of a REIT Share on the Class VIII High Performance
Valuation Date. For illustrative purposes, examples of the calculation of adjustments to the
number Class VIII High Performance Partnership Units are set forth in Annex I hereto.

     4. Distributions.

          (a) Prior to the Class VIII High Performance Valuation Date, Holders of Class VIII High
Performance Partnership Units shall be entitled to receive distributions (other than distributions
upon liquidation) if, as, when and in the same amounts and of the same type as may be paid to
Holders of Partnership Common Units as if each Class VIII High Performance Partnership Unit was
1/100 of a Partnership Common Unit.

          (b) On and after the Class VIII High Performance Valuation Date, the Holders of Class VIII
High Performance Partnership Units shall be entitled to receive distributions (other than
distributions upon liquidation) if, as, when and in the same amounts and of the same type as may be
paid to Holders of Partnership Common Units as if each Class VIII High Performance Partnership Unit
was a Partnership Common Unit originally issued on the Class VIII High Performance Valuation Date.

     5. Allocations.

     (a) Prior to the Class VIII High Performance Valuation Date, Net Income and Net Loss shall be
allocated to the Holders of Class VIII High Performance Partnership Units as if each Class VIII
High Performance Partnership Unit was 1/100 of a Partnership Common Unit.

     (b) On and after the Class VIII High Performance Valuation Date, Net Income and Net Loss shall
be allocated to the Holders of Class VIII High Performance Partnership Units as if each Class VIII
High Performance Partnership Unit was a Partnership Common Unit originally issued on the Class VIII
High Performance Valuation Date; provided, however, that if the Outperformance
Return is 0% on the Class VIII High Performance Valuation Date, then as of the last day of the
Measurement Period, each of the Holders of Class VIII High Performance Partnership Units shall be
specially allocated Net Loss or deduction in an amount equal to (i) the excess of (x) the aggregate
Class VIII High Performance Partnership Unit capital contributions over (y) the fair market value
of the Class VIII High Performance Partnership Units as of such date, after applying the
adjustments required by Section 3 of this Partnership Unit

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Designation, divided by (ii) the number of Class VIII High Performance Partnership Units held
by such Holder.

     (c) In the event that the Partnership disposes of all or substantially all of its assets in a
transaction that will lead to a liquidation of the Partnership pursuant to Article XIII of the
Agreement, then, notwithstanding Section 6.3.C of the Agreement, each Holder of Class VIII High
Performance Partnership Units shall be specifically allocated items of Partnership income and gain
in an amount sufficient to cause the Capital Account of such Holder to be equal to that of a Holder
of an equal number of Partnership Common Units.

     6. Redemption.

     Upon the occurrence of a Change of Control, and subject to the applicable requirements of
Federal securities laws and any securities exchange or quotation system rules or regulations, each
Holder of Class VIII High Performance Partnership Units shall have the redemption rights of
Qualifying Parties set forth in Section 8.6 of the Agreement, except that (i) all references
therein to “Redeemable Units” or “Partnership Common Units” shall be deemed to be references to
Class VIII High Performance Partnership Units, (ii) the first Twelve-Month Period applicable to all
Class VIII High Performance Partnership Units shall be deemed to have passed, (iii) all references
therein to “Cash Amount” shall be deemed to be references to the Class VIII High Performance Cash
Amount, and (iv) in the event that the Previous General Partner elects to acquire Class VIII High
Performance Partnership Units that have been tendered for Redemption, the Previous General Partner
shall acquire each such Class VIII High Performance Partnership Unit in exchange for a number of
REIT Shares equal to the quotient obtained by dividing the Class VIII High Performance Cash Amount
by the Value of a REIT Share, determined as of the applicable Valuation Date.

     7. Status of Reacquired Units.

     All Class VIII High Performance Partnership Units which shall have been issued and reacquired
in any manner by the Partnership shall be deemed cancelled and no longer outstanding.

     8. Restrictions on Ownership and Transfer.

     The restrictions on Transfer set forth in Sections 11.1.B and 11.3.A of the Agreement shall
not apply to Transfers of Class VIII High Performance Partnership Units. Prior to the Class VIII
High Performance Valuation Date, the Class VIII High Performance Partnership Units shall be owned
and held solely by SMP 2008, L.L.C., a Delaware limited liability company (the “SMP”). On or after
the Class VIII High Performance Valuation Date, the Class VIII High Performance Partnership Units
may be Transferred (i) by the SMP to (a) any Person who is
a member (a “Member”) of the SMP
immediately prior to such transfer, (b) a Family Member of a Member, (c) a Controlled Entity of a
Member, (c) any Person with respect to whom the Member constitutes a Controlled Entity, (d) upon
the death of a Member, by will or by the laws of

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descent and distribution to any Qualified Transferee, and (ii) by any other Person to (a) a
Family Member of a such Person, (b) a Controlled Entity of such Person, (c) any other Person with
respect to whom such Person constitutes a Controlled Entity, (d) upon the death of such Person, by
will or by the laws of descent and distribution to any Qualified Transferee.

     9.
Voting Rights.

     Each Holder of Class VIII High Performance Partnership Units shall have the same voting and
approval rights as a Holder of an equal number of Partnership Common Units.

     10.
Adjustments.

          (a) In the event of any Extraordinary Distribution occurring on or after January 1, 2005, for
purposes of determining the Value of a REIT Share or the AIMCO Total Return, each price of a REIT
Share determined as of a date on or after the Ex-Date for such Extraordinary Distribution shall be
adjusted by multiplying such price by a fraction (i) the numerator of which shall be the price of a
REIT Share on the date immediately prior to such Ex-Date, and (ii) the denominator of which shall
be (A) the price of a REIT Share on the date immediately prior to such Ex-Date, minus (B) the fair
market value on the date fixed for such determination of the portion of the evidences of
indebtedness or assets so distributed applicable to one REIT Share (as determined by the General
Partner, whose determination shall be conclusive); provided further, that such amount shall be so
adjusted for each such Extraordinary Distribution occurring on or after January 1, 2005.

          (b) In the event that, on or after January 1, 2004, the Previous General Partner (i) declares
or pays a dividend on its outstanding REIT Shares in REIT Shares or makes a distribution to all
holders of its outstanding REIT Shares in REIT Shares, (ii) splits or subdivides its outstanding
REIT Shares, (iii) effects a reverse stock split or otherwise combines its outstanding REIT Shares
into a smaller number of REIT Shares, or (iv) otherwise reclassifies its outstanding REIT Shares,
then, for purposes of determining the Value of a REIT Share or the AIMCO Total Return, each price
of a REIT Share determined as of a date on or after the Ex-Date for such transaction shall be
adjusted by multiplying such price by a fraction (x) the numerator of which shall be the number of
REIT Shares issued and outstanding on the Determination Date for such dividend, distribution,
split, subdivision, reverse stock split, combination or reclassification (assuming for such
purposes that such dividend, distribution, split, subdivision, reverse split or combination has
occurred as of such time) and (y) the denominator of which shall be the actual number of REIT
Shares (determined without the above assumption) issued and outstanding on the Determination Date
for such dividend, distribution, split, subdivision, reverse stock split, combination or
reclassification.

          (c) The General Partner shall have authority to appropriately adjust the AIMCO Market Value,
the AIMCO Total Return or the Value of a REIT Share if any other transaction or circumstance occurs
or arises that would have an inequitable result.

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     11. General.

     Class VIII High Performance Partnership Units shall be evidenced by certificates in the form
of Annex II hereto, or in such other form as the General Partner shall specify from time to
time. The Class VIII High Performance Partnership Units shall be securities governed by Article 8
of the Uniform Commercial Code. Each certificate evidencing a Class VIII High Performance
Partnership Unit shall bear the following legend: “This certificate evidences an interest in AIMCO
Properties, L.P. and shall be a security for purposes of the Uniform Commercial Code.” This
provision shall not be amended, and any purported amendment to this provision shall not take effect
until all outstanding certificates have been surrendered for cancellation. The General Partner
shall amend Exhibit A to the Agreement from time to time to the extent necessary to reflect
accurately the issuance of, and subsequent conversion, redemption, or any other event having an
effect on the ownership of, Class VIII High Performance Partnership Units.

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ANNEX I TO

EXHIBIT YY

Numerical Examples of the Calculation of the Adjustment to the Number of Class VIII

High Performance Partnership Units on the Class VIII High Performance

Valuation Date

     The following table illustrates the adjustment that would be made to 5,000 Class VIII
High Performance Partnership Units (“HPUs”) on the Class VIII High Performance Valuation Date under
different circumstances. Except as otherwise indicated, it is assumed, for purposes of the
illustration, that: (i) the Class VIII High Performance Valuation Date is January 1, 2008; (ii)
the Industry Total Return is less than 32.0%, resulting in a Hurdle Rate of Return of 36.8%; and
(iii) the AIMCO Equity Capitalization is $3,962,506,000.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	AIMCO	 	 	 	 
	 	 	AIMCO	 	 	 	 	 	 	Equity	 	 	 	 
	Stock	 	Total	 	 	Outperformance	 	 	Capitalization	 	 	Number of	 
	Price	 	Return	 	 	Return	 	 	(Thousands)	 	 	HPUs	 
	 
	$38.00
	 	 	36.57	%	 	 	0	%	 	$	3,962,506	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	40.00
	 	 	41.90	%	 	 	5.10	%	 	$	3,962,506	 	 	 	219,855	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	42.00
	 	 	47.24	%	 	 	10.44	%	 	$	3,962,506	 	 	 	430,892	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	44.00
	 	 	52.57	%	 	 	15.77	%	 	$	3,962,506	 	 	 	625,046	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	46.00
	 	 	57.91	%	 	 	21.11	%	 	$	3,962,506	 	 	 	804,266	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	48.00
	 	 	63.24	%	 	 	26.44	%	 	$	3,962,506	 	 	 	970,210	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	50.00
	 	 	68.58	%	 	 	31.78	%	 	$	3,962,506	 	 	 	1,060,990	*
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	52.00
	 	 	73.91	%	 	 	37.11	%	 	$	3,962,506	 	 	 	1,060,990	*

	*	 	The number of HPUs has been restricted based on the Dilution Limit.

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ANNEX II TO

EXHIBIT YY

THE SECURITY EVIDENCED HEREBY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO AIMCO
PROPERTIES, L.P. AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE PARTNERSHIP, TO
THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED WITHOUT
REGISTRATION UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS. IN ADDITION,
THE LIMITED PARTNERSHIP INTEREST EVIDENCED BY THIS CERTIFICATE MAY BE SOLD OR OTHERWISE TRANSFERRED
ONLY IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFER SET FORTH IN THE THIRD AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF AIMCO PROPERTIES, L.P., DATED AS OF JULY 29, 1994, AS AMENDED,
A COPY OF WHICH MAY BE OBTAINED FROM AIMCO-GP, INC., THE GENERAL PARTNER, AT ITS PRINCIPAL
EXECUTIVE OFFICE.

THIS CERTIFICATE EVIDENCES AN INTEREST IN AIMCO PROPERTIES, L.P. AND SHALL BE A SECURITY FOR
PURPOSES OF ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE.

	 		
	___ Units
	 	Certificate Number ___

AIMCO PROPERTIES, L.P.

FORMED UNDER THE LAWS OF THE STATE OF DELAWARE

CLASS VIII HIGH PERFORMANCE PARTNERSHIP UNITS

     This
certifies that___ is the owner of ___ Class VIII High Performance
Partnership Units of AIMCO Properties, L.P., a Delaware limited partnership. This Certificate and
the Class VIII High Performance Partnership Units represented hereby are issued and shall be held
subject to all of the provisions of the Agreement of Limited Partnership of AIMCO Properties, L.P.,
as amended and/or supplemented from time to time.

     IN WITNESS WHEREOF, the General Partner of AIMCO Properties, L.P. has caused this Certificate
to be signed by an authorized person on this ___ day of ___, ___

	 	 	 	 	 
	 	 	By: AIMCO-GP, Inc.,
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 

YY-11

 

[REVERSE OF CERTIFICATE]

	 	 	 
	     For
Value Received, 	 	 hereby sells, assigns and
transfers unto

	 	 
	 
	 	 
	 

Class VIII High Performance Partnership Units represented by the within Certificate, and does
hereby irrevocably constitute and appoint the General Partner of AIMCO Properties, L.P. as its
Attorney to transfer said Class VIII High Performance Partnership Units on the books of AIMCO
Properties, L.P. with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 

YY-12exv4w4

 

Exhibit 4.4

WARRANT AGREEMENT

      This Agreement made as of      , 2005 between JK Acquisition Corp., a Delaware
corporation, with offices at 5847 San Felipe, Suite 4350, Houston, TX 77057 (“Company”),
and Continental Stock Transfer & Trust Company, a New York corporation, with offices at 17 Battery
Place, New York, New York 10004 (“Warrant Agent”).

      WHEREAS, the Company is engaged in a public offering (“Public Offering”) of Units
(“Units”) and, in connection therewith, has determined to issue and deliver (i) up to
18,400,000 Warrants, including 2,400,000 Warrants that may be issued to Ferris, Baker Watts,
Incorporated (“FBW”) upon exercise of its over-allotment option, (“Public
Warrants”) to the public investors, and (ii) 1,600,000 Warrants to FBW or its designees
(“Sole Underwriter’s Warrants” and, together with the Public Warrants, the
“Warrants”), each Warrant evidencing the right of the holder thereof to purchase one share
of common stock, par value $.0001 per share, of the Company’s Common Stock (“Common Stock”)
for $5.00, subject to adjustment as described herein; and

      WHEREAS, the Company has filed with the Securities and Exchange Commission a Registration
Statement, No. 333-[ ] on Form S-1 (“Registration Statement”) for the
registration, under the Securities Act of 1933, as amended (“Act”) of, among other
securities, the Warrants and the Common Stock issuable upon exercise of the Warrants; and

      WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the
Warrant Agent is willing to so act, in connection with the issuance, registration, transfer,
exchange, redemption and exercise of the Warrants; and

      WHEREAS, the Company desires to provide for the form and provisions of the Warrants, the terms
upon which they shall be issued and exercised, and the respective rights, limitation of rights, and
immunities of the Company, the Warrant Agent, and the holders of the Warrants; and

      WHEREAS, all acts and things have been done and performed which are necessary to make the
Warrants, when executed on behalf of the Company and countersigned by or on behalf of the Warrant
Agent, as provided herein, the valid, binding and legal obligations of the Company, and to
authorize the execution and delivery of this Agreement.

      NOW, THEREFORE, in consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

1. Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent to act as
agent for the Company for the Warrants, and the Warrant Agent hereby accepts such appointment and
agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

2. Warrants.

      2.1 Form of Warrant. Each Warrant shall be issued in registered form only, shall be
in substantially the form of Exhibit A hereto, the provisions of which are incorporated
herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board, Chief
Executive Officer or President, and Chief Financial Officer, Secretary or Assistant Secretary of
the Company and shall bear a facsimile of the Company’s seal. In the event the person whose
facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity in
which such person signed the Warrant before such Warrant is issued, it may be issued with the same
effect as if he or she had not ceased to be such at the date of issuance.

      2.2 Effect of Countersignature. Unless and until countersigned by the Warrant Agent
pursuant to this Agreement, a Warrant shall be invalid and of no effect and may not be exercised by
the holder thereof.

1

 

      2.3 Registration.

               2.3.1 Warrant Register. The Warrant Agent shall maintain books (“Warrant
Register”), for the registration of original issuance and the registration of transfer of the
Warrants. Upon the initial issuance of the Warrants, the Warrant Agent shall issue and register
the Warrants in the names of the respective holders thereof in such denominations and otherwise in
accordance with instructions delivered to the Warrant Agent by the Company.

               2.3.2 Registered Holder. Prior to due presentment for registration of transfer of any
Warrant, the Company and the Warrant Agent may deem and treat the person in whose name such Warrant
shall be registered upon the Warrant Register (“Registered Holder”), as the absolute owner
of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership
or other writing on the Warrant Certificate made by anyone other than the Company or the Warrant
Agent), for the purpose of any exercise thereof, and for all other purposes, and neither the
Company nor the Warrant Agent shall be affected by any notice to the contrary.

      2.4 Detachability of Warrants. The securities comprising the Units will not be
separately transferable until 90 days after the date hereof unless FBW informs the Company of its
decision to allow earlier separate trading, but in no event will FBW allow separate trading of the
securities comprising the Units until the Company files a Current Report on Form 8-K which includes
an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Public
Offering including the proceeds received by the Company from the exercise of the Underwriter’s
over-allotment option, if the over-allotment option is exercised prior to the filing of the Form
8-K.

      2.5 Warrants and Sole Underwriter’s Warrants. The Sole Underwriter’s Warrants shall
have the same terms and be in the same form as the Public Warrants.

3. Terms and Exercise of Warrants.

      3.1 Warrant Price. Each Warrant shall, when countersigned by the Warrant Agent,
entitle the registered holder thereof, subject to the provisions of such Warrant and of this
Warrant Agreement, to purchase from the Company the number of shares of Common Stock stated
therein, at the price of $5.00 per whole share, subject to the adjustments provided in Section 4
hereof and in the last sentence of this Section 3.1. The term “Warrant Price” as used in this
Warrant Agreement refers to the price per share at which Common Stock may be purchased at the time
a Warrant is exercised. The Company in its sole discretion may lower the Warrant Price at any time
prior to the Expiration Date; provided, however, that the any change in the Warrant Price must
apply equally to all of the Warrants.

      3.2 Duration of Warrants. A Warrant may be exercised only during the period
(“Exercise Period”) commencing on the later of the consummation by the Company of a merger,
capital stock exchange, asset acquisition or other similar business combination (“Business
Combination”) (as described more fully in the Company’s Registration Statement) or
        , 2006, and terminating at 5:00 p.m., New York City local time on the earlier to occur of (i)
        , 2009 or (ii) the date fixed for redemption of the Warrants as provided in Section 6 of this
Agreement (“Expiration Date”). Except with respect to the right to receive the Redemption
Price (as set forth in Section 6 hereunder), each Warrant not exercised on or before the Expiration
Date shall become void, and all rights thereunder and all rights in respect thereof under this
Agreement shall cease at the close of business on the Expiration Date. The Company in its sole
discretion may extend the duration of the Warrants by delaying the Expiration Date; provided,
however, that any extension of the duration of the Warrants must apply equally to all of the
Warrants.

      3.3 Exercise of Warrants.

               3.3.1 Payment. Subject to the provisions of the Warrant and this Warrant Agreement, a
Warrant, when countersigned by the Warrant Agent, may be exercised by the registered holder thereof
by surrendering it, at the office of the Warrant Agent, or at the office of its successor as
Warrant Agent, in the Borough of Manhattan, City and State of New York, with the subscription form,
as set forth in the Warrant, duly executed, and by paying in full, in lawful money of the United
States, in cash, good certified check or good bank draft payable to the order of the Company (or as
otherwise agreed to by the Company), the Warrant Price for each full share of Common Stock

2

 

as to which the Warrant is exercised and any and all applicable taxes due in connection with
the exercise of the Warrant, the exchange of the Warrant for the Common Stock, and the issuance of
the Common Stock.

               3.3.2 Issuance of Certificates. As soon as practicable after the exercise of any
Warrant and the clearance of the funds in payment of the Warrant Price, the Company shall issue to
the registered holder of such Warrant a certificate or certificates for the number of full shares
of Common Stock to which he is entitled, registered in such name or names as may be directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new countersigned
Warrant for the number of shares as to which such Warrant shall not have been exercised.
Notwithstanding the foregoing, the Company shall not be obligated to deliver any securities
pursuant to the exercise of a Warrant unless a registration statement under the Act with respect to
the Common Stock is effective. Warrants may not be exercised by, or securities issued to, any
registered holder in any state in which such exercise would be unlawful.

               3.3.3 Valid Issuance. All shares of Common Stock issued upon the proper exercise of a
Warrant in conformity with this Agreement shall be validly issued, fully paid and nonassessable.

               3.3.4 Date of Issuance. Each person in whose name any such certificate for shares of
Common Stock is issued shall for all purposes be deemed to have become the holder of record of such
shares on the date on which the Warrant was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of business on the
next succeeding date on which the stock transfer books are open.

4. Adjustments.

      4.1 Stock Dividends — Split-Ups. If after the date hereof, and subject to the
provisions of Section 4.6 below, the number of outstanding shares of Common Stock is increased by a
stock dividend payable in shares of Common Stock, or by a split-up of shares of Common Stock, or
other similar event, then, on the effective date of such stock dividend, split-up or similar event,
the number of shares of Common Stock issuable on exercise of each Warrant shall be increased in
proportion to such increase in outstanding shares of Common Stock.

      4.2 Aggregation of Shares. If after the date hereof, and subject to the provisions of
Section 4.6, the number of outstanding shares of Common Stock is decreased by a consolidation,
combination, reverse stock split or reclassification of shares of Common Stock or other similar
event, then, on the effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock issuable on exercise of
each Warrant shall be decreased in proportion to such decrease in outstanding shares of Common
Stock.

      4.3 Adjustments in Exercise Price. Whenever the number of shares of Common Stock
purchasable upon the exercise of the Warrants is adjusted, as provided in Section 4.1 and 4.2
above, the Warrant Price shall be adjusted (to the nearest cent) by multiplying such Warrant Price
immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number
of shares of Common Stock purchasable upon the exercise of the Warrants immediately prior to such
adjustment, and (y) the denominator of which shall be the number of shares of Common Stock so
purchasable immediately thereafter.

      4.4 Replacement of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of Common Stock (other than a change
covered by Section 4.1 or 4.2 hereof or that solely affects the par value of such shares of Common
Stock), or in the case of any merger or consolidation of the Company with or into another
corporation (other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization of the outstanding
shares of Common Stock), or in the case of any sale or conveyance to another corporation or entity
of the assets or other property of the Company as an entirety or substantially as an entirety in
connection with which the Company is dissolved, the Warrant holders shall thereafter have the right
to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants
and in lieu of the shares of Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented thereby, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such reclassification,

3

 

reorganization, merger or consolidation, or upon a dissolution following any such sale or
transfer, that the Warrant holder would have received if such Warrant holder had exercised his, her
or its Warrant(s) immediately prior to such event; and if any reclassification also results in a
change in shares of Common Stock covered by Section 4.1 or 4.2, then such adjustment shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The provisions of this Section 4.4 shall
similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales
or other transfers.

      4.5 Notices of Changes in Warrant. Upon every adjustment of the Warrant Price or the
number of shares issuable upon exercise of a Warrant, the Company shall give written notice thereof
to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment and
the increase or decrease, if any, in the number of shares purchasable at such price upon the
exercise of a Warrant, setting forth in reasonable detail the method of calculation and the facts
upon which such calculation is based. Upon the occurrence of any event specified in Sections 4.1,
4.2, 4.3 or 4.4, then, in any such event, the Company shall give written notice to the Warrant
holder, at the last address set forth for such holder in the warrant register, of the record date
or the effective date of the event. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such event.

      4.6 No Fractional Shares. Notwithstanding any provision contained in this Warrant
Agreement to the contrary, the Company shall not issue fractional shares upon exercise of Warrants.
If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant would
be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the
Company shall, upon such exercise, round up or down to the nearest whole number the number of the
shares of Common Stock to be issued to the Warrant holder.

      4.7 Form of Warrant. The form of Warrant need not be changed because of any
adjustment pursuant to this Section 4, and Warrants issued after such adjustment may state the same
Warrant Price and the same number of shares as is stated in the Warrants initially issued pursuant
to this Agreement. However, the Company may at any time in its sole discretion make any change in
the form of Warrant that the Company may deem appropriate and that does not affect the substance
thereof, and any Warrant thereafter issued or countersigned, whether in exchange or substitution
for an outstanding Warrant or otherwise, may be in the form as so changed.

5. Transfer and Exchange of Warrants.

      5.1 Registration of Transfer. The Warrant Agent shall register the transfer, from
time to time, of any outstanding Warrant upon the Warrant Register, upon surrender of such Warrant
for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate
instructions for transfer. Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the Warrant Agent.
The Warrants so cancelled shall be delivered by the Warrant Agent to the Company from time to time
upon request.

      5.2 Procedure for Surrender of Warrants. Warrants may be surrendered to the Warrant
Agent, together with a written request for exchange or transfer, and thereupon the Warrant Agent
shall issue in exchange therefor one or more new Warrants as requested by the registered holder of
the Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however,
that in the event that a Warrant surrendered for transfer bears a restrictive legend, the Warrant
Agent shall not cancel such Warrant and issue new Warrants in exchange therefor until the Warrant
Agent has received an opinion of counsel for the Company stating that such transfer may be made and
indicating whether the new Warrants must also bear a restrictive legend.

      5.3 Fractional Warrants. The Warrant Agent shall not be required to effect any
registration of transfer or exchange which will result in the issuance of a warrant certificate for
a fraction of a warrant.

      5.4 Service Charges. No service charge shall be made for any exchange or registration
of transfer of Warrants.

      5.5 Warrant Execution and Countersignature. The Warrant Agent is hereby authorized to
countersign and to deliver, in accordance with the terms of this Agreement, the Warrants required
to be issued pursuant to the

4

 

provisions of this Section 5, and the Company, whenever required by the Warrant Agent, will
supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

6. Redemption.

      6.1 Redemption. Subject to Section 6.4 hereof, not less than all of the outstanding
Warrants may be redeemed, at the option of the Company, at any time after they become exercisable
and prior to their expiration, at the office of the Warrant Agent, upon the notice referred to in
Section 6.2, at the price of $.01 per Warrant (“Redemption Price”), provided that the last
sales price of the Common Stock has been at least $8.50 per share, on each of twenty (20) trading
days within any thirty (30) trading day period ending on the third business day prior to the date
on which notice of redemption is given. The provisions of this Section 6.1 may not be modified,
amended or deleted without the prior written consent of FBW. FBW is an intended third party beneficiary of this
Section 6.1.

      6.2 Date Fixed for, and Notice of, Redemption. In the event the Company shall elect
to redeem all of the Warrants, the Company shall fix a date for the redemption. Notice of
redemption shall be mailed by first class mail, postage prepaid, by the Company not less than 30
days prior to the date fixed for redemption to the registered holders of the Warrants to be
redeemed at their last addresses as they shall appear on the registration books. Any notice mailed
in the manner herein provided shall be conclusively presumed to have been duly given whether or not
the registered holder received such notice.

      6.3 Exercise After Notice of Redemption. The Warrants may be exercised in accordance
with Section 3 of this Agreement at any time after notice of redemption shall have been given by
the Company pursuant to Section 6.2 hereof and prior to the time and date fixed for redemption. On
and after the redemption date, the record holder of the Warrants shall have no further rights
except to receive, upon surrender of the Warrants, the Redemption Price.

      6.4 Outstanding Warrants Only. The Company understands that the redemption rights
provided for by this Section 6 apply only to outstanding Warrants. To the extent a person holds
rights to purchase Warrants, such purchase rights shall not be extinguished by redemption.
However, once such purchase rights are exercised, the Company may redeem the Warrants issued upon
such exercise provided that the criteria for redemption is met. The provisions of this Section 6.4
may not be modified, amended or deleted without the prior written consent of FBW.

7. Other Provisions Relating to Rights of Holders of Warrants.

      7.1 No Rights as Stockholder. A Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company, including, without limitation, the
right to receive dividends, or other distributions, exercise any preemptive rights to vote or to
consent or to receive notice as stockholders in respect of the meetings of stockholders or the
election of directors of the Company or any other matter.

      7.2 Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost, stolen,
mutilated, or destroyed, the Company and the Warrant Agent may on such terms as to indemnity or
otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the
Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a
substitute contractual obligation of the Company, whether or not the allegedly lost, stolen,
mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

      7.3 Reservation of Common Stock. The Company shall at all times reserve and keep
available a number of its authorized but unissued shares of Common Stock that will be sufficient to
permit the exercise in full of all outstanding Warrants issued pursuant to this Agreement.

      7.4 Registration of Common Stock. The Company agrees that prior to the commencement
of the Exercise Period, it shall file with the Securities and Exchange Commission a post-effective
amendment to the Registration Statement, or a new registration statement, for the registration,
under the Act, of, and it shall take such action as is necessary to qualify for sale, in those
states in which the Warrants were initially offered by the Company, the Common Stock issuable upon
exercise of the Warrants. In either case, the Company will use its best efforts to cause the same
to become effective and to maintain the effectiveness of such registration statement until the
expiration of

5

 

the Warrants in accordance with the provisions of this Agreement (except in connection with a
going private transaction). The provisions of this Section 7.4 may not be modified, amended or
deleted without the prior written consent of FBW.

8. Concerning the Warrant Agent and Other Matters.

      8.1 Payment of Taxes. The Company will from time to time promptly pay all taxes and
charges that may be imposed upon the Company or the Warrant Agent in respect of the issuance or
delivery of shares of Common Stock upon the exercise of Warrants, but the Company shall not be
obligated to pay any transfer taxes in respect of the Warrants or such shares.

      8.2 Resignation, Consolidation, or Merger of Warrant Agent.

               8.2.1 Appointment of Successor Warrant Agent. The Warrant Agent, or any successor to
it hereafter appointed, may resign its duties and be discharged from all further duties and
liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the
office of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the
Company shall appoint in writing a successor Warrant Agent in place of the Warrant Agent. If the
Company shall fail to make such appointment within a period of 30 days after it has been notified
in writing of such resignation or incapacity by the Warrant Agent or by the holder of the Warrant
(who shall, with such notice, submit his Warrant for inspection by the Company), then the holder of
any Warrant may apply to the Supreme Court of the State of New York for the County of New York for
the appointment of a successor Warrant Agent at the Company’s cost. Any successor Warrant Agent,
whether appointed by the Company or by such court, shall be a corporation organized and existing
under the laws of the State of New York, in good standing and having its principal office in the
Borough of Manhattan, City and State of New York, and authorized under such laws to exercise
corporate trust powers and be subject to supervision or examination by federal or state authority.
After appointment, any successor Warrant Agent shall be vested with all the authority, powers,
rights, immunities, duties, and obligations of its predecessor Warrant Agent with like effect as if
originally named as Warrant Agent hereunder, without any further act or deed; but if for any reason
it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at
the expense of the Company, an instrument transferring to such successor Warrant Agent all the
authority, powers, and rights of such predecessor Warrant Agent hereunder; and upon request of any
successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming to such successor
Warrant Agent all such authority, powers, rights, immunities, duties, and obligations.

               8.2.2 Notice of Successor Warrant Agent. In the event a successor Warrant Agent shall
be appointed, the Company shall give notice thereof to the predecessor Warrant Agent and the
transfer agent for the Common Stock not later than the effective date of any such appointment.

               8.2.3 Merger or Consolidation of Warrant Agent. Any corporation into which the
Warrant Agent may be merged or with which it may be consolidated or any corporation resulting from
any merger or consolidation to which the Warrant Agent shall be a party shall be the successor
Warrant Agent under this Agreement without any further act.

      8.3 Fees and Expenses of Warrant Agent.

               8.3.1 Remuneration. The Company agrees to pay the Warrant Agent reasonable
remuneration for its services as such Warrant Agent hereunder and will reimburse the Warrant Agent
upon demand for all expenditures that the Warrant Agent may reasonably incur in the execution of
its duties hereunder.

               8.3.2 Further Assurances. The Company agrees to perform, execute, acknowledge, and
deliver or cause to be performed, executed, acknowledged, and delivered all such further and other
acts, instruments, and

6

 

assurances as may reasonably be required by the Warrant Agent for the carrying out or
performing of the provisions of this Agreement.

      8.4 Liability of Warrant Agent.

               8.4.1 Reliance on Company Statement. Whenever in the performance of its duties under
this Warrant Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed)
may be deemed to be conclusively proved and established by a statement signed by the Chief
Executive Officer, President or Chairman of the Board of the Company and delivered to the Warrant
Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good
faith by it pursuant to the provisions of this Agreement.

               8.4.2 Indemnity. The Warrant Agent shall be liable hereunder only for its own
negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent and
save it harmless against any and all liabilities, including judgments, costs and reasonable counsel
fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement except
as a result of the Warrant Agent’s negligence, willful misconduct, or bad faith.

               8.4.3 Exclusions. The Warrant Agent shall have no responsibility with respect to the
validity of this Agreement or with respect to the validity or execution of any Warrant (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Warrant; nor shall it be responsible to
make any adjustments required under the provisions of Section 4 hereof or be responsible for the
manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that
would require any such adjustment; nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any shares of Common Stock to
be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common Stock
will when issued be valid and fully paid and nonassessable.

      8.5 Acceptance of Agency. The Warrant Agent hereby accepts the agency established by
this Agreement and agrees to perform the same upon the terms and conditions herein set forth and
among other things, shall account promptly to the Company with respect to Warrants exercised and
concurrently account for, and pay to the Company, all moneys received by the Warrant Agent for the
purchase of shares of the Company’s Common Stock through the exercise of Warrants.

9. Miscellaneous Provisions.

      9.1 Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective
successors and assigns.

      9.2 Notices. Any notice, statement or demand authorized by this Warrant Agreement to
be given or made by the Warrant Agent or by the holder of any Warrant to or on the Company shall be
sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail
or private courier service within five days after deposit of such notice, postage prepaid,
addressed (until another address is filed in writing by the Company with the Warrant Agent), as
follows:

JK Acquisition Corp.

5847 San Felipe, Suite 4350

Houston, Texas 77057

Attn: President

      Any notice, statement or demand authorized by this Agreement to be given or made by the holder
of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given when so
delivered if by hand or overnight delivery or if sent by certified mail or private courier service
within five days after deposit of such notice,

7

 

postage prepaid, addressed (until another address is filed in writing by the Warrant Agent
with the Company), as follows:

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Compliance Department

with a copy in each case to:

Patton Boggs LLP

2001 Ross Avenue, Suite 3000

Dallas, Texas 75201

Attn: Fred S. Stovall, Esq.

         Robert Jeffery Cole, Esq.

and:

Ferris, Baker Watts, Incorporated

7601 Lewinsville Road

Suite 450

McLean, Virginia 22102

Attn: Christopher A. Freeman

and:

Venable LLP

8010 Towers Crescent Drive

Suite 300

Vienna, Virginia 22182

Attn: Elizabeth R. Hughes, Esq.

         Matthew B. Swartz, Esq.

      9.3 Applicable law. The validity, interpretation, and performance of this Agreement
and of the Warrants shall be governed in all respects by the laws of the State of New York, without
giving effect to conflict of laws. The Company hereby agrees that any action, proceeding or claim
against it arising out of or relating in any way to this Agreement shall be brought and enforced in
the courts of the State of New York or the United States District Court for the Southern District
of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
The Company hereby waives any objection to such exclusive jurisdiction and that such courts
represent an inconvenience forum. Any such process or summons to be served upon the Company may be
served by transmitting a copy thereof by registered or certified mail, return receipt requested,
postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such mailing
shall be deemed personal service and shall be legal and binding upon the Company in any action,
proceeding or claim.

      9.4 Persons Having Rights under this Agreement. Nothing in this Agreement expressed
and nothing that may be implied from any of the provisions hereof is intended, or shall be
construed, to confer upon, or give to, any person or corporation other than the parties hereto and
the registered holders of the Warrants and, for the purposes of Sections 2.5, 6.1, 6.4, 7.4 and 9.2
hereof, FBW, any right, remedy, or claim under or by reason of this Warrant Agreement or of any
covenant, condition, stipulation, promise, or agreement hereof. FBW shall be deemed to be a
third-party beneficiary of this Agreement with respect to Sections 2.5, 6.1, 6.4, 7.4 and 9.2
hereof. All covenants, conditions, stipulations, promises, and agreements contained in this
Warrant Agreement shall be for the sole and exclusive benefit of the parties hereto (and FBW with
respect to the Sections 2.5, 6.1, 6.4, 7.4 and 9.2 hereof) and their successors and assigns and of
the registered holders of the Warrants.

8

 

      9.5 Examination of the Warrant Agreement. A copy of this Agreement shall be available
at all reasonable times at the office of the Warrant Agent in the Borough of Manhattan, City and
State of New York, for inspection by the registered holder of any Warrant. The Warrant Agent may
require any such holder to submit his Warrant for inspection by it.

      9.6 Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

      9.7 Effect of Headings. The Section headings herein are for convenience only and are
not part of this Warrant Agreement and shall not affect the interpretation thereof.

[Remainder of this page intentionally left blank; signature page follows.]

9

 

      

      IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the day
and year first above written.

	 	 	 	 	 
	 	Attest:

JK ACQUISITION CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Keith D. Spickelmier	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	Attest:

CONTINENTAL STOCK TRANSFER & TRUST

COMPANY	 
	 	By:  	 	 
	 	 	Name:  	[____________________]	 
	 	 	Title:  	[____________________]	 
	 

10

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