Document:

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EXHIBIT 4.4

STATEMENT OF DESIGNATION

OF

CLASS D COMMON SHARES

OF

AMREIT

ARTICLE ONE

     AmREIT (the “Trust”), pursuant to the provisions of Section 3.30 of the Texas Real Estate
Investment Trust Act (the “Texas REIT Act”), hereby files this Statement of Designation of Class D
Common Shares of the Trust (the “Statement”) prior to the issuance of any Class D Common Shares,
such series of unissued shares having been established by a resolution duly adopted by all
necessary action on the part of the Trust and the Board of Trust Managers, as provided for in the
Amended and Restated Declaration of Trust, as amended (“Declaration of Trust”).

ARTICLE TWO

     The name of the Trust is AmREIT.

ARTICLE THREE

     Pursuant to the authority conferred upon the Board of Trust Managers by the Declaration of
Trust and Section 3.30 of the Texas REIT Act, the Board of Trust Managers, pursuant to Section
10.20 of the Texas REIT Act, adopted a resolution establishing the Class D Common Shares of the
Trust and designating the series and fixing and determining the preferences, limitations, and
relative rights thereof, as set forth in the true and correct copy of the resolution attached
hereto as Exhibit A (the “Designating Resolution”).

ARTICLE FOUR

     The Designating Resolution was adopted effective as of June 25, 2004.

ARTICLE FIVE

     The Designating Resolution was duly adopted by all necessary action on the part of the Trust.

 

 

     IN WITNESS WHEREOF, the undersigned officer has executed this Statement effective as of July
___, 2004.

By:                                                                                                     

Name:    Chad C. Braun

Title:      Executive Vice President and

               Chief Financial Officer

THE STATE OF TEXAS

COUNTY OF HARRIS

     BEFORE ME, the undersigned Notary Public, duly commissioned and qualified within and for the
State and County aforesaid, personally came and appeared CHAD C. BRAUN, in his capacity as
Executive Vice President and Chief Financial Officer of AmREIT, and acknowledged to me that he
executed the above and foregoing instrument on behalf of the said AmREIT, as his own free and
voluntary act and deed, for the uses, purposes and considerations therein expressed.

     IN WITNESS WHEREOF, has executed these presents together with me, Notary, on this ___day of
July, 2004.

                                                                                

NOTARY PUBLIC

My commission expires:                                        

2

 

EXHIBIT A

DESIGNATING RESOLUTIONS OF

THE BOARD OF TRUST MANAGERS OF

AMREIT

June 25, 2004

Authorization of Class D Common Shares 

     WHEREAS, the Board of Trust Managers of AmREIT (the “Trust”) has deemed it to be in the best
interest of the Trust and its shareholders for the Trust to establish a series of common shares
pursuant to the authority granted to the Board of Trust Managers in the Restated Declaration of
Trust, as amended (the “Declaration of Trust”) of the Trust:

     NOW, THEREFORE, BE IT RESOLVED, that pursuant to the authority vested in the Board of Trust
Managers by the Declaration of Trust, a series of common shares, par value $0.01 per share, is
hereby established, and the terms of the same shall be as follows:

     A. Title. The series of preferred shares is hereby designated as the “Class D Common
Shares” (the “Class D Common Shares”).

     B. Number. The maximum number of authorized shares of the Class C Shares shall be
17,000,000.

     C. Dividends. Subject to the preferential rights of any series of Preferred Shares,
holders of Class D Common Shares will be entitled to receive, when, as and if declared by the Board
of Trust Managers, out of funds legally available for the payment of dividends, non-cumulative cash
dividends in an amount per Class D Common Share equal to $0.65 per annum. Dividends payable on the
Class D Common Shares for each full monthly dividend period will be computed by dividing the annual
dividend rate by twelve. Dividends with respect to the Class D Common Shares will be
non-cumulative from the date of original issuance (the “Issue Date”) and will be payable monthly
when, as and if the Board of Trust Managers declares a monthly dividend on the Class D Common
Shares for that month in its discretion (the last day of each month being a “Dividend Payment
Date”). Any dividend payable on the Class D Common Shares for any partial dividend period after
the initial dividend period will be computed on the basis of a 360 day year consisting of twelve 30
day months. Dividends will be payable to holders of record as they appear in the shares records of
the Trust at the close of business on the applicable record date, which will be the nineteenth
(19th) day of the calendar month in which the applicable Dividend Payment Date falls or
such other date designated by the Board of Trust Managers for the payment of dividends that is no
more than thirty (30) nor less than ten (10) days prior to the Dividend Payment Date. Holders of
Series C Common Shares shall not be entitled to any dividends, whether payable in cash, property or
shares, in excess of non-cumulative dividends, as herein provided on the Class D Common Shares.
Dividends may not be paid on the Class D Common Shares unless all dividends then payable on the
Trust’s class B common shares (the “Class B Common Shares”) and class C common shares (the “Class C
Common Shares”) have been paid in full.

Exhibit A-1

 

 

     D. Liquidation Rights. In the event of any liquidation, dissolution or winding up of
the Trust, subject to the prior rights of any series of Preferred Shares, the holders of Class D
Common Shares will share pro rata, with the holders of the Trust’s class A common shares (the
“Class A Common Shares”), the Class B Common Shares and the Class C Common Shares and the holders
of any other series of Common Shares that rank on a parity with the Class D Common Shares as to the
distribution of assets upon liquidation, the assets of the Trust remaining following the payment of
all liquidating distributions payable to holders of capital shares of the Trust with liquidation
rights senior to those of the common shares.

     E. Mandatory Redemption by the Trust. The Class D Common Shares will not be
redeemable prior to the first anniversary of the Issue Date. On and after such first anniversary
date, the Trust, at its option (to the extent the Trust has funds legally available therefor) upon
not less than 30 nor more than 60 days’ written notice, may redeem the Class D Common Shares, in
whole or in part, at any time or from time to time, for cash at the redemption price per share of
$10.00, plus the pro rata portion of the 7.7% conversion premium, based on the number of years the
shares are outstanding (for example, if the Class D Common Shares are called on the first
anniversary of issuance the call price would be $10.11 per share).

     Notwithstanding the foregoing, unless the full then current monthly dividends on all Class D
Common Shares have been or contemporaneously are declared and paid or declared and a sum sufficient
for the payment thereof set apart for payment for the then current monthly dividend period (without
regard to whether any dividends were paid or not paid in any prior monthly dividend period), no
Class D Common Shares will be redeemed unless all outstanding Class D Common Shares are
simultaneously redeemed. The foregoing, however, will not prevent the purchase or acquisition of
the Class D Common Shares pursuant to a purchase or exchange offer made on the same terms to
holders of all outstanding Class D Common Shares. Unless full current monthly dividends on all
outstanding Class D Common Shares have been or contemporaneously are declared and paid or declared
and a sum sufficient for the payment thereof set apart for payment for the then current monthly
dividend period (without regard to whether any dividends were paid or not paid in any prior monthly
dividend period), the Trust will not purchase or otherwise acquire directly or indirectly through a
subsidiary or otherwise, any Class D Common Shares.

     If fewer than all of the outstanding Class D Common Shares are to be redeemed, the number of
shares to be redeemed will be determined by the Trust and those shares may be redeemed pro rata
from the holders of record of those shares in proportion to the number of those shares held by the
holders (as nearly as may be practicable without creating fractional Class D Common Shares) or any
other equitable method determined by the Trust.

     Class D Common Shares shall be redeemed by the Trust on the date specified in a notice to the
holders of the Class D Common Shares (the “Call Date”). Notice of redemption will be given by
publication in a newspaper of general circulation in the City of New York, such publication to be
made once a week for two successive weeks commencing not less than 30 nor more than 60 days’ prior
to the redemption date. A similar notice will be mailed by the Trust, postage prepaid, not less
than 30 nor more than 60 days’ prior to the redemption date, addressed to the respective holders of
record of Class D Common Shares to be redeemed at their respective addresses as they appear on the
shares transfer records of the Trust. No failure to give notice or

Exhibit A-2

 

 

any defect therein or in the mailing thereof will affect the validity of the proceeding for the
redemption of any Class D Common Shares except as to the holder to whom notice was defective or not
given. Each notice will state: (1) the Call Date; (2) the redemption price; (3) the number of
Class D Common Shares to be redeemed; (4) the place or places where the Class D Common Shares are
to be surrendered for payment of the redemption price; (5) that dividends on the shares to be
redeemed will cease to accrue on the Call Date; and (6) that any conversion rights will terminate
at the close of business on the third business day immediately preceding the Call Date. If fewer
than all the Class D Common Shares held by any holder are to be redeemed, the notice mailed to that
holder will also specify the number of Class D Common Shares to be redeemed from that holder.
Notice having been given as aforesaid, from and after the Call Date (unless the Trust shall fail to
issue and make available the amount of cash necessary to effect such redemption), (i) except as
otherwise provided herein, dividends on the Class D Common Shares so called for redemption shall
cease to accrue on the Class D Common Shares called for redemption (except that, in the case of a
Call Date after a dividend record date and prior to the related Dividend Payment Date, holders of
Class D Common Shares on the dividend record date will be entitled on such Dividend Payment Date to
receive the dividend payable on such shares, if any), (ii) said shares shall no longer be deemed to
be outstanding, and (iii) all rights of the holders thereof as holders of Class D Common Shares
shall cease (except the rights to receive the cash payable upon such redemption, without interest
thereon, upon surrender and endorsement of their certificates if so required and to receive any
dividends payable thereon). As promptly as practicable after the surrender in accordance with said
notice of the certificates for any such shares so redeemed (properly endorsed or assigned for
transfer, if the Trust shall so require and if the notice shall so state), such holders will be
issued any cash (without interest thereon) for which such shares have been redeemed in accordance
with such notice.

     Upon any redemption of Class D Common Shares, the Trust shall pay in cash to the holder of
such shares an amount equal to the dividend accrued and unpaid for the then currently monthly
dividend period only (without regard to whether any dividends were paid or not paid in any prior
monthly dividend period), if any. Immediately prior to authorizing any redemption of the Class D
Common Shares, and as a condition precedent for such redemption, the Trust, by resolution of the
Board of Trust Managers, shall declare a mandatory dividend on the Class D Common Shares payable in
cash on the Call Date in an amount equal to the dividend owed and unpaid for the then current
monthly dividend period (without regard to whether any dividends were paid or not paid in any prior
monthly dividend period) on the Class D Common Shares to be redeemed, if any, which amount shall be
added to the redemption price. If the Call Date falls after a dividend payment record date and
prior to the corresponding Dividend Payment Date, then each holder of Class D Common Shares at the
close of business on such dividend payment record date shall be entitled to the dividend payable on
such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such
shares prior to such Dividend Payment Date. Except as provided above, the Trust shall make no
payment or allowance for accrued dividends on Class D Common Shares called for redemption.

     F. Limited Optional Redemption. Subject to and upon compliance with the provisions of
this Section F, at any time prior to the seventh anniversary of the Issue Date of the Class D
Common Shares, any holder of Class C Common Shares who has held Class D Common Shares for not less
than one year may present all or any portion (but not less than 25%) of those shares to the Trust
for redemption at any time (the “Limited Put Right”). The Trust may, at its

Exhibit A-3

 

 

sole option, redeem those shares presented for redemption for cash to the extent it has
sufficient funds available thereof. Notwithstanding anything to the contrary contained in this
Section F, at no time during a 12-month period, may the number of Class D Common Shares redeemed by
the Trust exceed 5% of the number of Class D Common Shares outstanding at the beginning of that
12-month period.

     To the extent that the Trust’s Board of Trust Managers decides to accept any shares for
redemption under this Section F, the Trust will only use the following amounts for redemptions
effected under this Section F: (1) the full amount of the
proceeds from the sale of shares under the
Trust’s dividend reinvestment plan (“Reinvestment Proceeds”) attributable to any calendar quarter
may be used to redeem shares presented for redemption pursuant to his Section F during that
quarter, and (2) at the sole discretion of the Trust’s Board of Trust Managers, up to $100,000 per
calendar quarter of the proceeds of any public offering of the Trust’s common shares. Any amount
of offering proceeds which is available for redemptions under this Section F, but which is unused
in any quarter, may be carried over to the next succeeding calendar quarter for use in addition to
the amount of offering proceeds and Reinvestment Proceeds that would otherwise be available for
redemptions under this Section F in such quarter.

     In the event there are insufficient funds to redeem all of the shares for which Limited Put
Right requests have been submitted, the Trust will redeem the shares in the order in which such
Limited Put Right requests have been received. A holder of Class D Common Shares whose shares are
not redeemed pursuant to a Limited Put Right request due to insufficient funds can either: (1) ask
that the request to redeem the Class D Common Shares be honored at such time, if any, as there are
sufficient funds available for redemption of shares pursuant to this Section F (in which event
the. Limited Put Right request will be retained and those shares will be redeemed before
any subsequently received Limited Put Right requests are honored), or (2) withdraw his or her
Limited Put Right request. A holder of Class D Common Shares will not relinquish his or her Class
D Common Shares until such time as the Trust commits to redeeming such shares pursuant to this
Section F.

     Any holder of Class D Common Shares who wishes to have his or her shares redeemed pursuant to
this Section F must mail or deliver a written request on a form provided by the Trust and executed
by such holder, its trustee or authorized agent, to the Trust or a redemption agent designated by
it on such form (such person or entity, the “Redemption Agent”). The Redemption Agent at all times
will be registered as a broker-dealer with the Securities and Exchange Commission and each
applicable state securities commission. Within 30 days following the Redemption Agent’s receipt of
such holder’s request, the Redemption Agent will forward to that holder the documents necessary to
effect the redemption, including any signature guarantee the Trust or the Redemption Agent may
require. The Redemption Agent will effect the redemption for the calendar quarter provided that it
receives the properly completed redemption documents relating to the shares to be redeemed from the
holder at least one calendar month prior to the last day of the current calendar quarter and has
sufficient funds available to redeem the shares. The effective date of any redemption under this
Section F will be the last date during a quarter during which the Redemption Agent receives the
properly completed redemption documents.

Exhibit A-4

 

 

     Upon the Redemption Agent’s receipt of notice for redemption of shares pursuant to this
Section F, the redemption price for Class D Common Shares redeemed pursuant to this Section F (the
“Optional Redemption Price”) will initially be $10.00 per share. The Trust’s Board of Trust
Managers may, in its sole discretion, adjust the Optional Redemption Price at any time and from
time to time in its sole discretion. Any such change in the Optional Redemption Price will be
effective on the 10th day after the public announcement of such change in the Optional
Redemption Price. Any Class D Common Shares acquired pursuant to a redemption under this Section F
will be retired and no longer available for issuance by the Trust.

     A holder of Class D Common Shares may present fewer than all of his or her shares to the Trust
for redemption; provided, however, that (1) the minimum number of Class D Common Shares which must
be presented for redemption pursuant to this Section F shall be at least 25% of his or her shares,
and (2) if such holder retains any Class D Common Shares, he or she must retain at least $2,500
worth of such shares; provided further, that he or she must only retain $1,000 worth of Class D
Common Shares if such shares are held by an Individual Retirement Plan, Keogh Plan or pension plan.

     Notwithstanding anything contained in the Section F or any other provision hereof to the
contrary, the Trust’s Board of Trust Managers, in its sole discretion, may amend or suspend the
redemption plan at any time it determines that any amendment or suspension is in the best interest
of the Trust. The Trust’s Board of Trust Managers may suspend the redemption of shares if (1) it
determines, in its sole discretion, that the redemption impairs the capital or the operations of
the Trust; (2) it determines, in its sole discretion, that an emergency makes such redemption not
reasonably practical; (3) any governmental or regulatory agency with jurisdiction over the Trust so
demands for the protection of the shareholders; (4) it determines, in its sole discretion, that the
redemption would be unlawful; (5) it determines, in its sole discretion, that the redemption, when
considered with all other redemptions, sales, assignments, transfers and exchanges of the Trust’s
common shares, could cause direct or indirect ownership of shares of the Trust’s common stock to
become concentrated to an extent which would prevent the Trust from qualifying as a real estate
investment trust under the Internal Revenue Code of 1986, as amended, and/or the rules and
regulations promulgated thereunder; or (6) it determines, in its sole discretion, the suspension to
otherwise be in the best interest of the Trust. The redemption plan will terminate, and the Trust
no longer shall accept shares for redemption at such time as the Class D Common Shares become
eligible to convert into Class A Common Shares.

     G. Voting Rights. Holders of the Class D Common Shares shall have the right to vote
on all matters presented to common shareholders as a single class with all other holders of common
shares. In any matter in which the Class D Common Shares may vote, including any action by written
consent, each Class D Common Share will be entitled to one vote.

     So long as any Class D Common Shares are outstanding, in addition to any other vote or consent
of shareholders required by law or by the Declaration of Trust, the affirmative vote of at lease 66
2/3% of the votes entitled to be cast by the holders of the Class D Common Shares, at the time
outstanding, acting as a single class, given in person or by proxy, either in writing without a
meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or
validating any sale of all or substantially all of the assets of the Trust, any liquidation of the
Trust or any amendment, alteration or repeal of any of the provisions of the Declaration of

Exhibit A-5

 

 

Trust or the Bylaws of the Trust that materially and adversely affects the voting powers,
rights or preferences of the holders of the Class D Common Shares; provided, however, that the
amendment of the provisions of the Declaration of Trust so as to authorize or create, or to
increase the authorized amount of, any shares of any class or series ranking on a parity with or
junior to the Class D Common Shares in the distribution of assets on any liquidation, dissolution
or winding up of the Trust or in the payment of dividends shall not be deemed to materially
adversely affect the voting powers, rights or preferences of the holders of Class D Common Shares;
provided further, however, that no such vote of the holders of Class D Common Shares shall be
required if, at or prior to the time when such amendment, alteration or repeal is to take effect,
or when the issuance of any such prior shares or convertible security is to be made, as the case
may be, provision is made for the redemption of all Class D Common Shares at the time outstanding.

     H. Conversion.

     Holders of Class D Common Shares shall have the right to convert all or a portion of such
shares into Class A Common Shares, as follows:

          (1) Subject to and upon compliance with the provisions of this Section H, a holder of Class D
Common Shares shall have the right, at such holder’s option, at any time on or after the seventh
anniversary of the Issue Date of such shares, to convert such shares, in whole or in part, into
fully-paid and non-assessable shares of authorized but unissued Class A Common Shares at a
conversion price equal to the purchase price of the Class C Common Shares plus a 7.7% premium (the
“Conversion Amount”). The number of Class A Common Shares to be issued upon conversion shall be
determined by dividing the Conversion Amount by the Market Price (as defined in the Declaration of
Trust) of the Class A Common Shares on the date the notice of conversion is received by the Trust;
provided, however, that the right to convert Class D Common Shares called for redemption shall
terminate at the close of business on the third business day immediately preceding the Call Date
fixed for such redemption, unless the Trust shall default in making payment upon such redemption.
All Class D Common Shares acquired through our dividend reinvestment plan will be convertible on a
dollar-for-dollar basis, based on the dividends invested in such reinvestment plan shares, into our
Class A Common Shares, with no premium associated with the conversion. The reinvestment plan
shares will be convertible on or after the seventh anniversary of the issuance of the original
Class D Common Shares, the dividends of which were used to acquire the reinvestment plan shares.

          (2) In order to exercise the conversion right, the holder of each Class D Common Share to be
converted shall send, to the office of the Trust, a written notice to the Trust that the holder
thereof elects to convert such share. Each share surrendered for conversion shall be accompanied
by instruments of transfer, in form satisfactory to the Trust, duly executed by the holder or such
holder’s duly authorized attorney and an amount sufficient to pay any transfer or similar tax (or
evidence reasonably satisfactory to the Trust demonstrating that such taxes have been paid).

     Holders of Class D Common Shares at the close of business on a dividend payment record date
shall be entitled to receive the dividend payable on such shares of the corresponding Dividend
Payment Date notwithstanding the conversion thereof following such dividend

Exhibit A-6

 

 

payment record date and prior to such Dividend Payment Date. However, Class D Common Shares
surrendered for conversion during the period between the close of business on any dividend payment
record date and the opening of business on the corresponding Dividend Payment Date (except shares
converted after the issuance of notice of redemption with respect to a Call Date during such
period, such shares being entitled to such dividend on the Dividend Payment Date) must be
accompanied by payment of an amount equal to the dividend payable on such shares on such Dividend
Payment Date. Except as provided above, the Trust shall make not payment or allowance for unpaid
dividends on converted shares or for dividends on the Class A Common Shares issued upon such
conversion.

     Each conversion shall be deemed to have been effected immediately prior to the close of
business on the date on which the certificates for Class D Common Shares shall have been
surrendered and such notice shall have been received by the Trust as aforesaid (and, if applicable,
payment of an amount equal to the dividend payable on such shares shall have been received by the
Trust as above-described) and the person or persons in whose name or names any certificate or
certificates for Class A Common Shares shall be issuable upon such conversion shall be deemed to
have become the holder or holders of record of the shares represented thereby at such time on such
date.

          (3) No fractional Class A Common Share shall be issued upon conversion. Instead any
fractional share that would otherwise be deliverable upon the conversion of Class D Common Shares,
the Trust shall pay to the holder of such share an amount in cash based upon the Market Price (as
defined in the Declaration of Trust) of the Class A Common Shares.

          (4) The Conversion Amount shall be adjusted from time to time as follows:

               (i) If the Trust shall after the Issue Date (a) pay a dividend or make a distribution on any
class or series of its capital stock in Class A Common Shares, (b) subdivide its outstanding Class
A Common Shares into a greater number of shares, (c) combine its outstanding Class A Common Shares
into a smaller number of shares or (d) issue any shares of capital stock by reclassification of its
Class A Common Shares, the Conversion Amount in effect at the opening of business on the date
following the date fixed for the determination of a shareholder entitled to receive such dividend
or distribution or at the opening of business on the date following the day on which such
subdivision, combination or reclassification becomes effective, as the case may be, shall be
adjusted so that the holder of any Class D Common Shares thereafter surrendered for conversion
shall be entitled to receive the number of Class A Common Shares (or fraction of a share) that such
holder would have owned or have been entitled to receive after the happening of any of the events
described above had such Class D Common Shares been converted immediately prior to the record date
in the case of a dividend or distribution or the effective date in the case of a subdivision,
combination or reclassification. An adjustment made pursuant to this paragraph H(4) shall become
effective immediately after the opening of business on the day next following the record date
(except as provided in paragraph H(4)(vi) below) in the case of a dividend or distribution and
shall become effective immediately after the opening of business on the date next following the
effective date in the case of a subdivision, combination or reclassification.

Exhibit A-7

 

 

               (ii) If the Trust shall distribute to all holders of its Class A Common Shares any shares of
capital stock of the Trust (other than Class A Common Shares), evidence of its indebtedness or
assets (including cash, but excluding regularly scheduled cash dividends) or rights or warrants to
subscribe for or purchase any of its securities (any of the foregoing being hereinafter in this
paragraph H(4)(iii) called the “Distribution”), then in each such case the Conversion Amount in
effect at the opening of business on the date following the date fixed for the determination of a
shareholder entitled to receive such Distribution or at the opening of business on the date
following the day on which such subdivision, combination or reclassification becomes effective, as
the case may be, shall be adjusted so that the holder of any Class D Common Shares thereafter
surrendered for conversion shall be entitled to receive the number of Class A Common Shares (or
fraction of a share) that such holder would have owned or have been entitled to receive after the
happening of any of the events described above had such Class D Common Shares been converted
immediately prior to the record date in the case of a dividend or distribution or the effective
date in the case of a subdivision, combination or reclassification. An adjustment made pursuant to
this paragraph H(4) shall become effective immediately after the opening of business on the day
next following the record date (except as provided in paragraph H(4)(vi) below) in the case of a
dividend or distribution and shall become effective immediately after the opening of business on
the date next following the effective date in the case of a subdivision, combination or
reclassification.

               (iii) If the Trust shall be a party to any transaction (including, without limitation, a
merger, consolidation, statutory share exchange, issuer or self tender offer for all or a
substantial portion of the Class A Common Shares outstanding, sale of all or substantially all of
the Trust’s assets or recapitalization of the Class A Common Shares, but excluding any transaction
as to which paragraph (i) of this Section H(4) applies) (each of the foregoing being referred to
herein as a “Transaction”), in each case as a result of which Class A Common Shares shall be
converted into the right to receive stock, securities or other property (including cash or any
combination thereof), each Class D Common Share which is not converted into the right to receive
stock, securities or other property in connection with such Transaction shall thereupon be
convertible into the kind and amount of shares of stock, securities and other property (including
cash or any combination thereof) receivable upon consummation of such Transaction by a holder of
that number of Class A Common Shares, or fraction thereof, into which one (1) Class A Common Share
was convertible immediately prior to such Transaction. The Trust shall not be a party to any
Transaction unless the terms of such Transaction are consistent with the provisions of this
paragraph H(4)(iii), and it shall not consent or agree to the occurrence of any Transaction until
the Trust has entered into an agreement with the successor or purchasing entity, as the case may
be, for the benefit of the holders of the Class D Common Shares that will contain provisions
enabling the holders of the Class D Common Shares that remain outstanding after such Transaction to
convert into the consideration received by holders of Class A Common Shares at the Conversion
Amount in effect immediately prior to such Transaction. The provisions of paragraph H(4)(v) shall
similarly apply to successive Transactions.

Exhibit A-8

 

 

     (iv) If:

               (1) the Trust shall authorize the granting to the holders of the Class A Common Shares of
rights or warrants to subscribe for or purchase any shares of any class or series of capital stock
or any other rights or warrants; or

               (2) there shall be any reclassification of the Class A Common Shares or any consolidation or
merger to which the Trust is a party and for which approval of any shares of the Trust is required,
or a statutory share exchange, or an issuer or self tender offer by the Trust for all or a
substantial portion of its outstanding Class A Common Shares (or an amendment thereto changing the
maximum number of shares sought or the amount or type of consideration being offered therefor) or
the sale or transfer of all or substantially all of the assets of the Trust as an entirety; or

               (3) there shall occur the voluntary or involuntary liquidation, dissolution or winding up of
the Trust,

then the Trust shall cause to be mailed to each holder of Class D Common Shares at such holder’s
address as shown on the stock records of the Trust, as promptly as possible, but at least fifteen
(15) days prior to the applicable date hereinafter specified, a notice stating (A) the record date
for the payment of such dividend, distribution or rights or warrants, or, if a record date is not
established, the date as of which the holders of Class A Common Shares of record to be entitled to
such dividend, distribution or rights or warrants are to be determined or (B) the date on which
such reclassification, consolidation, merger, statutory share exchange, sale, transfer,
liquidation, dissolution or winding up is expected to become effective, and the date as of which it
is expected that holders of Class A Common Shares of record shall be entitled to exchange their
Class A Common Shares for securities or other property, if any, deliverable upon such
reclassification, consolidation, merger, statutory share exchange, sale, transfer, liquidation,
dissolution or winding up or (C) the date on which such tender offer commenced, the date on which
such tender offer is scheduled to expire unless extended, the consideration offered and the other
material terms thereof (or the material terms of any amendment thereto). Failure to give or
receive such notice or any defect therein shall not affect the legality or validity of the
proceedings described in this Section H(4).

     (v) Whenever the Conversion Amount is adjusted as herein provided, the Trust shall promptly
prepare a notice of such adjustment of the Conversion Amount setting forth the adjusted Conversion
Amount and the effective date such adjustment becomes effective and shall mail such notice of such
adjustment of the Conversion Amount to each holder of Class D Common Shares at such holder’s last
address as shown on the stock records of the Trust.

     (vi) In any case in which this Section H(4) provides that an adjustment shall become effective
on the day next following the record date for an event, the Trust may defer until the occurrence of
such event (A) issuing to the holder of any Class D Common Shares converted after such record date
and before the occurrence of such event the additional Class A Common Shares issuable upon such
conversion by reason of the adjustment required by such event over and above the Class A Common
Shares issuable upon such

Exhibit A-9

 

 

conversion before giving effect to such adjustment and (B) paying to such holder any amount of
cash in lieu of any fraction.

               (vii) There shall be no adjustment of the Conversion Amount in case of the issuance of any
capital stock of the Trust in a reorganization, acquisition or other similar transaction except as
specifically set forth in this Section H. If any action or transaction would require adjustment of
the Conversion Amount pursuant to more than one paragraph of this Section H(4)E, only one
adjustment shall be made and such adjustment shall be the amount of adjustment that has the highest
absolute value.

               (viii) If the Trust shall take any action affecting the Class A Common Shares, other than
action described in this Section H(4), that in the opinion of the Board of Trust Managers would
materially adversely affect the conversion rights of the holders of Class D Common Shares, the
Conversion Amount for the Class D Common Shares may be adjusted, to the extent permitted by law, in
such manner, if any, and at such time as the Board of Trust Managers, in its sole discretion, may
determine to be equitable under the circumstances.

               (ix) The Trust shall at all times reserve and keep available, free from preemptive rights, out
of the aggregate of its authorized but unissued Class A Common Shares solely for the purpose of
effecting conversion of the Class D Common Shares, the full number of Class A Common Shares
deliverable upon the conversion of all outstanding Class D Common Shares not theretofore converted
into Class A Common Shares. For purposes of this paragraph H(4)(ix), the number of Class A Common
Shares that shall be deliverable upon the conversion of all outstanding Class D Common Shares shall
be computed as if at the time of computation all such outstanding shares were held by a single
holder.

     The Trust covenants that any Class A Common Shares issued upon conversion of the Class D
Common Shares shall be validly issued, fully-paid and non-assessable.

Ratification and Authorization

     RESOLVED, that any and all acts and deeds of any officer or Trust Manager of the Trust taken
prior to the date hereof on behalf of the Trust with regard to the foregoing resolutions are hereby
approved, ratified and confirmed in all respects as and for the acts and deeds of the Trust; and

     FURTHER RESOLVED, that the officers of the Trust be, and each of them hereby is, severally and
without the necessity for joinder of any other person, authorized, empowered and directed to
execute and deliver any and all such further documents and instruments and to do and perform any
and all such further acts and deeds that may be necessary or advisable to effectuate and carry out
the purposes and intents of the foregoing resolutions, including, but not limited to, the filing of
a statement with the County Clerk of Harris County, Texas, setting forth the designations,
preferences, limitations and rights of Class D Shares pursuant to Section 3.30 of the Texas REIT
Act, all such actions to be performed in such manner, and all such documents and instruments to be
executed and delivered in such form, as the officer performing or executing the same shall approve,
the performance or execution thereof by such officer to be conclusive evidence of the approval
thereof by such officer and by the Board of Trust Managers.

Exhibit A-10EX-4.1

 

EXHIBIT 4.1

SPECIMEN UNIT CERTIFICATE

	 	 	 
	NUMBER

	 	UNITS
	U-                                        
	 	 

See Reverse for

certain definitions

COMMUNITY BANKERS ACQUISITION CORP.

CUSIP                                         

UNITS CONSISTING OF ONE SHARE OF COMMON STOCK AND ONE

WARRANT

EACH TO PURCHASE ONE SHARE OF COMMON STOCK

THIS CERTIFIES THAT                                                                                                                                                                 is the owner of
                                                                                                                 
                         
                 
       Units.

Each Unit (“Unit”) consists of one (1) share of common stock, par value $.01 per share (“Common
Stock”), of Community Bankers Acquisition Corp., a Delaware corporation (the “Company”), and one
warrant (the “Warrant”). Each Warrant entitles the holder to purchase one (1) share of Common Stock
for $6.00 per share (subject to adjustment). Each Warrant will become exercisable on the later of
the Company’s completion of a business combination or                     , 2006 and will expire unless
exercised before 5:00 p.m., New York City Time, on                     , 2010, or earlier upon redemption
(the “Expiration Date”). The Common Stock and Warrants comprising the Units represented by this
certificate are not transferable separately prior to                     , 2005, subject to earlier
separation in the discretion of I-Bankers Securities Incorporated. The terms of the Warrants are
governed by a Warrant Agreement, dated as of                     , 2005, between the Company and Continental
Stock Transfer & Trust Company, as Warrant Agent, and are subject to the terms and provisions
contained therein, all of which terms and provisions the holder of this certificate consents to by
acceptance hereof. Copies of the Warrant Agreement are on file at the office of the Warrant Agent
at 17 Battery Place, 8th Floor, New York, NY 10004, and are available to any Warrant
holder on written request and without cost.

     This certificate is not valid unless countersigned by the Transfer Agent and Registrar of the
Company.

     Witness the facsimile seal of the Company and the facsimile signature of its duly authorized
officers.

 

 

By

COMMUNITY BANKERS ACQUISITION CORP.

CORPORATE

SEAL

2005

DELAWARE

	 	 	 
	 

	 	 
	President

	 	Secretary

COMMUNITY BANKERS ACQUISITION CORP.

     The Company will furnish without charge to each stockholder who so requests, a statement of
the powers, designations, preferences and relative, participating, optional or other special rights
of each class of stock or series thereof of the Company and the qualifications, limitations, or
restrictions of such preferences and/or rights.

     The following abbreviations, when used in the inscription on the face of this certificate,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 
	

	 	TEN COM - as tenants in common
	

	 	TEN ENT - as tenants by the entireties
	

	 	JT TEN - as joint tenants with right of survivorship and not as tenants in common
	

	 	UNIF GIFT MIN ACT-                               Custodian                          under
	

	 	     
                                             (Cust)                                   (Minor)
	Uniform Gifts to Minors Act ________.

	

	 	                                
                       
                        
                 
(state)

Additional Abbreviations may also be used though not in the above list.

       For value received,                                                             
hereby sell, assign and transfer unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER
	 	 
	IDENTIFYING NUMBER OF ASSIGNEE
	 	 
	 

	 	 

 

 

	 	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 
	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

	 
	 	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 

Units represented by the within Certificate, and do hereby irrevocably constitute and appoint
________________________________________
_____________ Attorney to transfer the said Units on the
books of the within named Company will full power of substitution in the premises.

Dated                                        

NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the certificate in every particular, without alteration or enlargement or any change
whatever.

Signature(s) Guaranteed:

	 	 	 
	 

	 	 
	 

	 	 

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS,
SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15.

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED, THE
COMPANY WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT
CERTIFICATE.

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