REPRESENTATIVES WARRANT AGREEMENT
August 13 September ____, 1999
REDSTONE SECURITIES, INC.
As Representative of the Several Underwriters
000 Xxxxxxxxx Xxxxxx
Xxxxxxxxx, Xxx Xxxx 00000
Gentlemen:
Rampart Capital Corporation, a Texas corporation (the ACompany@),
hereby agrees to sell to you, and you hereby agree to purchase from the Company
at an aggregate purchase price of $100, stock purchase warrants (the
ARepresentative=s Warrants@) covering 150,000 shares (the AShares@) to purchase
up to an aggregate of 50,000 Units (the AUnits@), each consisting of two shares
of the Company=s Common Stock, $.01 par value (the ACommon Stock@), and one
redeemable common stock purchase warrant (the AWarrants@) of the Company, or the
underlying Common Stock and Warrants, if separately transferable, issued in
accordance with the terms of the Warrant Agreement (the AWarrant Agreement@),
dated as of ____________, 1999, between the Company and American Stock Transfer
& Trust Co., New York, New York, as warrant agent (the AWarrant Agent@). The
Representative=s Warrants will be exercisable by you as to all or any lesser
number of Shares covered thereby Units, or the underlying Common Stock and
Warrants, if separately transferable, at the Purchase Price per Share Unit as
defined below, at any time and from time to time on and after the first
anniversary of the date hereof and ending at 5:00 p.m. on the fifth anniversary
of the date hereof.
1. Definitions.
As used herein, the following terms, unless the context otherwise
requires, shall have for all purposes hereof the following meanings:
The term AAct@ refers to the Securities Act of 1933, as amended.
The term AAffiliate@ of any Person refers to any Person directly or
indirectly controlling, controlled by or under direct or indirect common control
with, such other Person. A Person shall be deemed to control a corporation if
such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such corporation, whether through
the ownership of voting securities, by contract or otherwise.
The term ACommission@ refers to the Securities and Exchange Commission.
The term ACommon Stock@ refers to all stock of any class or classes
(however designated) of the Company, now or hereafter authorized, the holders of
which shall have the right without limitation as to amount, either to all or to
a part of the balance of current dividends and liquidating dividends after the
payment of dividends and distributions on any Shares shares entitled to
preference, and the holders of which shall ordinarily, in the absence of
contingency, be entitled to vote for the election of a majority of the directors
of the Company (even though the right so to vote has been suspended by the
occurrence of such a contingency).
The term ACurrent Market Price@ on any date refers to the average of
the daily Market Price per Share share for the 30 consecutive Trading Days
commencing 45 Trading Days before the date in question.
The term AExchange Act@ refers to the Securities Exchange Act of 1934,
as amended.
The term AMarket Price@ refers to the closing sale price on the
American Stock Exchange (AAMEX@) or, if no closing sale price is reported, the
closing bid price of the Common Stock, as quoted on the Nasdaq National Market,
or, if the Common Stock is not quoted on the Nasdaq National Market, as reported
by the National Quotation Bureau Incorporated. If Market Price cannot be
established as described above, Market Price shall be the fair market value of
the Common Stock as determined in good faith by the Board of Directors whose
determination shall be conclusive.
The term AOther Securities@ refers to any securities of the Company
(other than the Units, Common Stock ) or Warrants) or any other person
(corporate or otherwise) which the holders of the Representative=s Warrants at
any time shall be entitled to receive, or shall have received, upon the exercise
of the Representative=s Warrants, in lieu of or in addition to the Units, Common
Stock or Warrants, or which at any time shall be issuable or shall have been
issued in exchange for or in replacement of Units, Common Stock, Warrants or
Other Securities pursuant to Section 6 below or otherwise.
The term APerson@ refers to an individual, a partnership, a
corporation, a trust, a joint venture, an unincorporated organization and a
government or any department or agency thereof.
The term AProspectus@ shall mean the final prospectus of the Company,
dated the date hereof, relating to the offer and sale of Common Stock Units.
The term APurchase Price@ refers to the purchase price per Share of the
Common Stock Unit subject to this Agreement. The Purchase Price shall equal to
165% of the initial offering price to public of the Common Stock per Unit as set
forth in the Prospectus, subject to adjustment as provided in Section 6 below.
The term ARegistration Statement@ refers to a Registration Statement
filed with the Commission pursuant to the Rules and Regulations of the
Commission promulgated under the Act.
The term ATrading Day@ shall mean a day on which the Nasdaq National
Market System or the principal national securities exchange on which the Common
Stock is listed or admitted to trading is open for the transaction of business.
The term AUnderlying Stock Securities@ refers to the Shares Units,
Common Stock and Warrants (or Other Securities) issuable under this Warrant
Agreement pursuant to the exercise, in whole or in part, of the Representative=s
Warrants.
The purchase and sale of the Representative=s Warrants shall take
place, and the purchase price therefor shall be paid by delivery of your check,
simultaneously with the purchase of and payment for any Shares Units as provided
in the Underwriting Agreement between the Company and you, dated the date
hereof.
2. Representations and Warranties.
The Company represents and warrants to you as follows:
(a) Corporate Action. The Company has all requisite corporate power and
authority, and has taken all necessary corporate action, to execute and deliver
this Agreement, to issue and deliver the Representative=s Warrants and
certificates evidencing same, and to authorize and reserve for issuance, and
upon payment from time to time of the Purchase Price to issue and deliver, the
Shares. Units, including the Common Stock and the Warrants and shares of Common
stock underlying the Warrants.
(b) No Violation. Neither the execution nor delivery of this Agreement,
the consummation of the actions herein contemplated nor compliance with the
terms and provisions hereof will conflict with, or result in a breach of, or
constitute a default or an event permitting acceleration under, any of the
terms, provisions or conditions of the Articles of Incorporation or Bylaws of
the Company or any indenture, mortgage, deed of trust, note, bank loan, credit
agreement, franchise, license, lease, permit, judgment, decree, order, statute,
rule or regulation or any other agreement, understanding or instrument to which
the Company is a party or by which it is bound. 3. Compliance with the Act.
(a) Transferability of Representative=s Warrants. You agree that the
Representative=s Warrants may not be transferred, sold, assigned or hypothecated
for a period of one (1) year from the date hereof, except to (i) persons who are
officers of you; (ii) a successor to you in a merger or consolidation; (iii) a
purchaser of all or substantially all of your assets; (iv) your shareholders in
the event you are liquidated or dissolved; and (v) persons who are officers or
partners of participating broker-dealers.
(b) Registration of Underlying Stock. Securities. The Underlying Stock
Securities issuable upon the exercise of the Representative=s Warrants have not
been registered under the Act. You agree not to make any sale or other
disposition of the Underlying Stock Securities except pursuant to a Registration
Statement which has become effective under the Act, setting forth the terms of
such offering, the underwriting discount and the commissions and any other
pertinent data with respect thereto, unless you have provided the Company with
an opinion of counsel reasonably acceptable to the Company that such
registration is not required.
(c) Inclusion in Registration of Other Securities. If at any time
commencing one year after the date hereof but prior to the fifth anniversary of
the date hereof, the Company shall propose the registration on an appropriate
form under the Act of any Shares shares of Common Stock or Other Securities, the
Company shall at least 30 days prior to the filing of such Registration
Statement give you written notice, or telegraphic or telephonic notice followed
as soon as practicable by written confirmation thereof, of such proposed
registration and, upon written notice, or telegraphic or telephonic notice
followed as soon as practicable by written confirmation thereof, given to the
Company within five business days after the giving of such notice by the
Company, shall include or cause to be included in any such Registration
Statement all or such portion of the Underlying Stock Securities as you may
request, provided, however, that the Company may at any time withdraw or cease
proceeding with any such registration if it shall at the same time withdraw or
cease proceeding with the registration of such Common Stock or such Other
Securities originally proposed to be registered.
Notwithstanding any provision of this Agreement to the
contrary, if any holder of Representative=s Warrants exercises such
Representative=s Warrants but shall not have included all the Underlying Stock
Securities in a Registration Statement which complies with Section 10(a)(3) of
the Act, which has been effective for at least 30 calendar days following the
exercise of the Representative=s Warrants, the registration rights set forth in
this Section 3(c) shall be extended until such time as (i) such a Registration
Statement including such Underlying Stock Securities has been effective for at
least 30 calendar days or (ii) in the opinion of counsel satisfactory to you and
the Company, registration is not required under the Act or under applicable
state laws for resale of the Underlying Stock Securities in the manner proposed.
(d) Company's Obligations in Registration. In connection with any
offering of Underlying Securities pursuant to Section 3(c) above, the Company
shall:
(i) Notify you as to the filing thereof and of all amendments or supplements
thereto filed prior to the effective date thereof;
(ii) Comply with all applicable rules and regulations of the Commission;
(iii) Notify you immediately, and confirm the notice in writing, (1) when the
Registration Statement becomes effective, (2) of the issuance by the Commission
of any stop order or of the initiation, or the threatening, of any proceedings
for that purpose, (3) of the receipt by the Company of any notification with
respect to the suspension of qualification of the Underlying Securities for sale
in any jurisdiction or of the initiation, or the threatening, of any proceedings
for that purpose and (4) of the receipt of any comments, or requests for
additional information, from the Commission or any state regulatory authority.
If the Commission or any state regulatory authority shall enter such a stop
order or order suspending qualification at any time, the Company will make every
reasonable effort to obtain the lifting of such order as promptly as
practicable.
(iv) During the time when a Prospectus is required to be delivered under the Act
during the period required for the distribution of the Underlying Securities,
comply so far as it is able with all requirements imposed upon it by the Act, as
hereafter amended, and by the Rules and Regulations promulgated thereunder, as
from time to time in force, so far as necessary to permit the continuance of
sales of or dealings in the Underlying Securities. If at any time when a
Prospectus relating to the Underlying Securities is required to be delivered
under the Act any event shall have occurred as a result of which, in the opinion
of counsel for the Company or your counsel, the Prospectus relating to the
Underlying Securities as then amended or supplemented includes an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary
at any time to amend such Prospectus to comply with the Act, the Company will
promptly prepare and file with the Commission an appropriate amendment or
supplement (in form satisfactory to you).
(v) Endeavor in good faith, in cooperation with you, at or prior to the time the
Registration Statement becomes effective, to qualify the Underlying Securities
for offering and sale under the securities laws relating to the offering or sale
of the Underlying Securities of such jurisdictions as you may reasonably
designate and to continue the qualifications in effect so long as required for
purposes of the sale of the Underlying Securities; provided that no such
qualification shall be required in any jurisdiction where, as a result thereof,
the Company would be subject to service of general process, or to taxation as a
foreign corporation doing business in such jurisdiction. In each jurisdiction
where such qualification shall be effected, the Company will, unless you agree
that such action is not at the time necessary or advisable, file and make such
statements or reports at such times as are or may reasonably be required by the
laws of such jurisdiction. For the purposes of this paragraph, Agood faith@ is
defined as the same standard of care and degree of effort as the Company will
use to qualify its securities other than the Underlying Securities.
(vi) Make generally available to its security holders as soon as practicable,
but not later than the first day of the eighteenth full calendar month following
the effective date of the Registration Statement, an earnings statement (which
need not be certified by independent public or independent certified public
accountants unless required by the Act or the rules and regulations promulgated
thereunder, but which shall satisfy the provisions of Section 11(a) of the Act)
covering a period of at least twelve months beginning after the effective date
of the Registration Statement.
(vii) After the effective date of such Registration Statement, prepare, and
promptly notify you of the proposed filing of, and promptly file with the
Commission, each and every amendment or supplement thereto or to any Prospectus
forming a part thereof as may be necessary to make any statements therein not
misleading; provided that no such amendment or supplement shall be filed if you
shall object thereto in writing promptly after being furnished a copy thereof.
(viii) Furnish to you, as soon as available, copies of any such Registration
Statement and each preliminary or final Prospectus, or supplement or amendment
prepared pursuant thereto, all in such quantities as you may from time to time
reasonably request;
(ix) Make such representations and warranties to any underwriter of the
Underlying Securities, and use your best efforts to cause Company counsel to
render such opinions to such underwriter, as such underwriter may reasonably
request; and
(x) Pay all costs and expenses incident to the performance of the Company's
obligations under Sections 3(c) and 3(d), including, without limitation, the
fees and disbursements of the Company=s auditors and legal counsel, fees and
disbursements of legal counsel for you, registration, listing and filing fees,
printing expenses and expenses in connection with the transfer and delivery of
the Underlying Stock Securities; provided, however, that the Company shall not
be responsible for compensation and reimbursement of expenses to underwriters or
selling agents for the included Underlying Securities.
(e) Agreements by Warrant Holder. In connection with the filing of a
Registration Statement pursuant to Section 3(c) above, if you participate in the
offering by including the Underlying Securities owned by you, you agree:
(i) To furnish the Company all material information requested by the Company
concerning yourself and your holdings of securities of the Company and the
proposed method of sale or other disposition of the Underlying Securities and
such other information and undertakings as shall be reasonably required in
connection with the preparation and filing of any such Registration Statement
covering all or a part of the Underlying Securities and in order to ensure full
compliance with the Act; and
(ii) To cooperate in good faith with the Company and its underwriters, if any,
in connection with such registration, including placing the Underlying
Securities to be included in such Registration Statement in escrow or custody to
facilitate the sale and distribution thereof.
(f) Indemnification. The Company shall indemnify and hold harmless you
and any underwriter (as defined in the Act) for you, and each person, if any,
who respectively controls you or such underwriter within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act, against any loss, liability,
claim, damage and expense whatsoever (including but not limited to any and all
expense whatsoever reasonably incurred in investigating, preparing or defending
against any litigation, commenced or threatened, or any claim whatsoever), joint
or several, to which any of you or such underwriter or such controlling person
becomes subject, under the Act or otherwise, insofar as such loss, liability,
claim, damage and expense (or actions in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact
contained in (i) a Registration Statement covering the Underlying Securities, in
the prospectus contained therein, or in an amendment or supplement thereto or
(ii) in any application or other document or communication (in this Section
collectively called Aapplication@) executed by or on behalf of the Company or
based upon written information furnished by or on behalf of the Company filed in
any jurisdiction in order to qualify the Underlying Securities under the
securities laws thereof or filed with the Commission, or arise out of or based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading;
provided, however, that the Company shall not be obligated to indemnify in any
such case to the extent that any such loss, claim, damage, expense or liability
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made in reliance upon, and in conformity with,
written information respectively furnished by you or such underwriter or such
controlling person for use in the Registration Statement, or any amendment or
supplement thereto, or any application, as the case may be.
If any action is brought against a person in respect of which
indemnity may be sought against, the Company pursuant to the foregoing
paragraph, such person shall promptly notify the Company in writing of the
institution of such action and the Company shall assume the defense of the
action, including the employment of counsel (satisfactory to the indemnified
person in its reasonable judgment) and payment of expenses. The indemnified
person shall have the right to employ its or their own counsel in any such case,
but the fees and expenses of such counsel shall be at the expense of such
indemnified person or unless the employment of such counsel shall have been
authorized in writing by the Company in connection with the defense of the
action or the Company shall not have employed counsel to have charge of the
defense of the action or the indemnified person shall have reasonably concluded
that there may be defenses available to it or them which are different from or
additional to those available to the Company (in which case the Company shall
not have the right to direct the defense of the action on behalf of the
indemnified person), in any of which events these fees and expenses shall be
borne by the Company. Anything in this paragraph to the contrary
notwithstanding, the Company shall not be liable for any settlement of any claim
or action effected without its written consent. The Company's indemnity
agreements contained in this Section shall remain in full force and effect
regardless of any investigation made by or on behalf of any indemnified person,
and shall survive any termination of this Agreement. The Company agrees promptly
to notify you of the commencement of any litigation or proceedings against the
Company or any of its officers or directors in connection with the Registration
Statement pursuant to Section 3(c) above.
If you choose to include any Underlying Securities in a public
offering pursuant to Section 3(c) or above, then you agree to indemnify and hold
harmless the Company and each of its directors and officers who have signed any
such Registration Statement, and any underwriter for the Company (as defined in
the Act), and each person, if any, who controls the Company or such underwriter
within the meaning of the Act, to the same extent as the indemnity by the
Company in this Section 3(f) but only with respect to statements or omissions,
if any, made in such Registration Statement, or any amendment or supplement
thereto, or in any application in reliance upon, and in conformity with, written
information furnished by you to the Company for use in the Registration
Statement, or any amendment or supplement thereto, or any application, as the
case may be. In case any action shall be brought in respect of which indemnity
may be sought against you, you shall have the rights and duties given to the
Company, and the persons so indemnified shall have the rights and duties given
to you by the provisions of the first paragraph of this Section.
The Company further agrees that, if the indemnity provisions
of the foregoing paragraphs are held to be unenforceable, any holder of a
Representative=s Warrant or controlling person of such a holder may recover
contribution from the Company in an amount which, when added to contributions
such holder or controlling person has theretofore received or concurrently
receives from officers and directors of the Company or controlling persons of
the Company, will reimburse such holder or controlling person for all losses,
claims, damages or liabilities and legal or other expenses; provided, however,
that if the full amount of the contribution specified in this Section 3(f) is
not permitted by law, then such holder or controlling person shall be entitled
to contribution from the Company and its officers, directors and controlling
persons to the full extent permitted by law.
4. Exercise of Representative=s Warrants.
(a) Cash Exercise. Each Representative=s Warrant may be exercised in
full or in part (but not as to a fractional Share) share of Common Stock) by the
holder thereof by surrender of the Warrant Certificate, with the form of
subscription at the end thereof duly executed by such holder, to the Company at
its principal office, accompanied by payment, in cash or by certified or bank
cashier=s check payable to the order of the Company, in the respective amount
obtained by multiplying the number of Shares Units to be purchased by the
Purchase Price per Share Unit.
(b) Net Exercise. Notwithstanding anything to the contrary contained in
Section 4(a), any holder of a Representative=s Warrant may elect to exercise the
Representative=s Warrant in full or in part and receive Shares Units on a Anet
exercise@ basis in an amount equal to the value of the Representative=s Warrant
by delivery of the form of subscription attached to the Warrant Certificate and
surrender of the Representative=s Warrant at the principal office of the
Company, in which event the Company shall issue to the holder a number of Shares
Units computed using the following formula:
X= (P)(Y)(A-B)
A
Where: X= the number of Shares Units to be issued to
holder.
P= the portion of the Representative=s Warrant
being exercised (expressed as a fraction).
Y= the total number of Shares Units issuable
upon exercise of the Representative=s
Warrant.
A= the Current Market Price of one Share Unit.
B= Purchase Price.
(c) Partial Exercise. Prior to the expiration of the Representative=s
Warrants, upon any partial exercise, the Company at its expense will forthwith
issue and deliver to or upon the order of the purchasing holder, a new Warrant
Certificate or Certificates of like tenor, in the name of the holder thereof or
as such holder (upon payment by such holder of any applicable transfer taxes)
may request calling in the aggregate for the purchase of the number of Shares of
the Underlying Stock Securities equal to the number of such Shares Units called
for on the face of the Warrant Certificate (after giving effect to any
adjustment therein as provided in Section 6 below) minus the number of such
Shares Units (after giving effect to such adjustment) designated by the holder
in the aforementioned form of subscription.
(d) Company to Reaffirm Obligations. The Company will, at the time of
any exercise of any Representative=s Warrant, upon the request of the holder
thereof, acknowledge in writing its continuing obligation to afford to such
holder any rights (including without limitation any right to registration of the
Shares Units issued upon such exercise) to which such holder shall continue to
be entitled after such exercise in accordance with the provisions of this
Agreement; provided, however, that if the holder of a Representative=s Warrant
shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such holder any such rights.
5. Delivery of Certificates on Exercise.
As soon as practicable after the any exercise of any Representative=s
Warrant in full or in part, and in any event within twenty days thereafter, the
Company at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the purchasing
holder thereof, a certificate or certificates for the number of fully paid and
nonassessable shares of the Underlying Common Stock and Warrants to which such
holder shall be entitled upon such exercise, plus in lieu of any fractional
share to which such holder would otherwise be entitled, cash in an amount
determined pursuant to Section 7(g), together with any other stock or other
securities and property (including cash, where applicable) to which such holder
is entitled upon such exercise pursuant to Section 6 below or otherwise.
6. Anti-Dilution Provisions.
The Representative=s Warrants are subject to the following terms and
conditions during the term thereof:
(a) Stock Distributions and Splits. In case (i) the outstanding Shares
shares of Common Stock (or Other Securities) shall be subdivided into a greater
number of shares or (ii) a dividend in Common Stock (or Other Securities) shall
be paid in respect of Common Stock (or Other Securities), the Purchase Price per
Share share in effect immediately prior to such subdivision or at the record
date of such dividend or distribution shall simultaneously with the
effectiveness of such subdivision or immediately after the record date of such
dividend or distribution be proportionately reduced; and if outstanding Shares
shares of Common Stock (or Other Securities) shall be combined into a smaller
number of shares thereof, the Purchase Price per Share share in effect
immediately prior to such combination shall simultaneously with the
effectiveness of such combination be proportionately increased. Any dividend
paid or distributed on the Common Stock (or Other Securities) in stock or any
other securities convertible into Shares shares of Common Stock (or Other
Securities) shall be treated as a dividend paid in Common Stock (or Other
Securities) to the extent that Shares shares of Common Stock (or Other
Securities) are issuable upon the conversion thereof.
(b) Adjustments. Whenever the Purchase Price per Share Unit is adjusted
as provided in Section 6(a) above, the number of Shares Units purchasable upon
exercise of the Representative=s Warrants immediately prior to such Purchase
Price adjustment shall be adjusted, effective simultaneously with such Purchase
Price adjustment, to equal the product obtained (calculated to the nearest full
Share) Unit) by multiplying such number of Shares Units by a fraction, the
numerator of which is the Purchase Price per Share Unit in effect immediately
prior to such Purchase Price adjustment and the denominator of which is the
Purchase Price per Share Unit in effect upon such Purchase Price adjustment,
which adjusted number of Shares Units shall thereupon be the number of Shares
Units purchasable upon exercise of the Representative=s Warrants until further
adjusted as provided herein.
(c) Reorganizations. In case the Company shall be recapitalized by
reclassifying its outstanding Common Stock (or Other Securities) into a stock
with a different par value or by changing its outstanding Common Stock (or Other
Securities) with par value to stock without par value, then, as a condition of
such reorganization, lawful and adequate provision shall be made whereby each
holder of a Representative=s Warrant shall thereafter have the right to
purchase, upon the terms and conditions specified herein, in lieu of the Shares
shares of Common Stock (or Other Securities) theretofore purchasable upon the
exercise of the Representative=s Warrants, the kind and amount of shares of
stock and other securities receivable upon such recapitalization by a holder of
the number of Shares shares of Common Stock (or Other Securities) which the
holder of a Representative=s Warrant might have purchased immediately prior to
such recapitalization. If any consolidation or merger of the Company with
another corporation, or the sale of all or substantially all of its assets to
another corporation, shall be effected in such a way that holders of Common
Stock shall be entitled to receive stock, securities or assets with respect to
or in exchange for Common Stock, then, as a condition of such consolidation,
merger or sale, lawful and adequate provisions shall be made whereby the holder
hereof shall thereafter have the right to purchase and receive upon the basis
and upon the terms and conditions specified in this Warrant Agreement and in
lieu of the Shares shares of the Common Stock of the Company immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby, such shares of stock, securities or assets as may be issued
or payable with respect to or in exchange for a number of outstanding Shares
shares of such Common Stock equal to the number of Shares shares of such stock
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby had such consolidation, merger or sale not taken
place, and in any such case, appropriate provision shall be made with respect to
the rights and interests of the holders of Representative=s Warrants to the end
that the provisions hereof (including without limitation provisions for
adjustments of the Purchase Price and of the number of Shares Units purchasable
and receivable upon the exercise of the Representative=s Warrants) shall
thereafter be applicable, as nearly as may be, in relation to any shares of
stock, securities or assets thereafter deliverable upon the exercise hereof
(including an immediate adjustment, by reason of such consolidation or merger,
of the Purchase Price to the value for the Common Stock reflected by the terms
of such consolidation or merger if the value so reflected is less than the
Purchase Price in effect immediately prior to such consolidation or merger). In
the event of a merger or consolidation of the Company with or into another
corporation as a result of which a number of Shares shares of Common Stock of
the surviving corporation greater or lesser than the number of Shares shares of
Common Stock of the Company outstanding immediately prior to such merger or
consolidation are issuable to holders of Common Stock of the Company, then the
Purchase Price in effect immediately prior to such merger or consolidation shall
be adjusted in the same manner as though there were a subdivision or combination
of the outstanding Shares shares of Common Stock of the Company. The Company
will not effect any such consolidation, merger or sale, unless prior to the
consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets shall assume by written instrument executed and mailed or delivered to
the registered holder hereof at the last address of such holder appearing on the
books of the Company, the obligation to deliver to such holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions,
such holder may be entitled to purchase. If a purchase, tender or exchange offer
is made to and accepted by the holders of more than of the outstanding Shares
shares of Common Stock of the Company, the Company shall not effect any
consolidation, merger or sale with the Person having made such offer or with any
Affiliate of such Person, unless prior to the consummation of such
consolidation, merger or sale the holders of Representative=s Warrants shall
have been given a reasonable opportunity to then elect to receive upon the
exercise of Representative=s Warrants either the stock, securities or assets
then issuable with respect to the Common Stock of the Company or the stock,
securities or assets, or the equivalent issued to previous holders of the Common
Stock in accordance with such offer.
(d) Effect of Dissolution or Liquidation. In case the Company shall
dissolve or liquidate all or substantially all of its assets, all rights under
this Agreement shall terminate as of the date upon which a certificate of
dissolution or liquidation shall be filed with the Secretary of the State of
Texas (or, if the Company theretofore shall have been merged or consolidated
with a corporation incorporated under the laws of another state, the date upon
which action of equivalent effect shall have been taken); provided, however,
that (i) no dissolution or liquidation shall affect the rights under Section
6(c) of any holder of a Representative=s Warrant and (ii) if the Company's Board
of Directors shall propose to dissolve or liquidate the Company, each holder of
a Representative=s Warrant shall be given written notice of such proposal at the
earlier of (x) the time when the Company's shareholders are first given notice
of the proposal or (y) the time when notice to the Company's shareholders is
first required.
(e) Notice of Change of Purchase Price. Whenever the Purchase Price per
Share Unit or the kind or amount of securities purchasable under the
Representative=s Warrants shall be adjusted pursuant to any of the provisions of
this Agreement, the Company shall forthwith thereafter cause to be sent to each
holder of a Representative=s Warrant, a certificate setting forth the
adjustments in the Purchase Price per Share Unit and/or in such number of Shares
Unit, and also setting forth in detail the facts requiring, such adjustments,
including without limitation a statement of the consideration received or deemed
to have been received by the Company for any additional shares of stock issued
by it requiring such adjustment. In addition, the Company at its expense shall
within 90 days following the end of each of its fiscal years during the term of
this Agreement, and promptly upon the reasonable request of any holder of a
Representative=s Warrant in connection with the exercise from time to time of
all or any portion of any Representative=s Warrant, cause independent certified
public accountants of recognized standing selected by the Company to compute any
such adjustment in accordance with the terms of the Representative=s Warrants
and prepare a certificate setting forth such adjustment and showing in detail
the facts upon which such adjustment is based.
(f) Notice of a Record Date. In the event of (i) any taking by the
Company of a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend (other
than a cash dividend payable out of earned surplus of the Company) or other
distribution, or any right to subscribe for, purchase or otherwise acquire any
shares of stock of any class or any other securities or property, or to receive
any other right, (ii) any capital reorganization of the Company, or any
reclassification or recapitalization of the capital stock of the Company, or any
transfer of all or substantially all of the assets of the Company to, or
consolidation or merger of the Company with or into, any other person or (iii)
any voluntary or involuntary dissolution or liquidation of the Company, then and
in each such event the Company will mail or cause to be mailed to each holder of
a Representative=s Warrant a notice specifying not only the date on which any
such record is to be taken for the purpose of such dividend, distribution or
right and stating the amount and character of such dividend, distribution or
right, but also the date on which any such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or
winding-up is to take place, and the time, if any, as of which the holders of
record of Common Stock (or Other Securities) shall be entitled to exchange their
Shares shares of Common Stock (or other Securities) for securities or other
property deliverable upon such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or
winding-up. Such notice shall be mailed at least twenty (20) days prior to the
proposed record date therein specified.
7. Further Covenants of the Company.
(a) Reservation of Stock. The Company shall at all times reserve and
keep available, solely for issuance and delivery upon the exercise of the
Representative=s Warrants, all Shares Units from time to time issuable upon the
exercise of the Representative=s Warrants and shall take all necessary actions
to ensure that the par value per Share Unit, if any, of the Underlying Stock
Securities is, at all times equal to or less than the then effective Purchase
Price per Share Unit.
(b) Title to Shares. Units. All shares of the Underlying Stock
Securities delivered upon the exercise of the Representative=s Warrants shall be
validly issued, fully paid and nonassessable; each holder of a Representative=s
Warrant shall receive good and marketable title to the Underlying Stock
Securities, free and clear of all voting and other trust arrangements, liens,
encumbrances, equities and adverse claims whatsoever; and the Company shall have
paid all taxes, if any, in respect of the issuance thereof.
(c) Listing on Securities Exchanges; Registration. If the Company at
any time shall list any Common Stock on any national securities exchange, the
Company will, at its expense, simultaneously list on such exchange, upon
official notice of issuance upon the exercise of the Representative=s Warrants,
and maintain such listing of, all shares of the Underlying Stock Securities from
time to time issuable upon the exercise of the Representative=s Warrants; and
the Company will so list on any national securities exchange, will so register
and will maintain such listing of, any Other Securities if and at the time that
any securities of like class or similar type shall be listed on such national
securities exchange by the Company.
(d) Exchange of Representative=s Warrants. Subject to Section 3(a)
hereof, upon surrender for exchange of any Warrant Certificate to the Company,
the Company at its expense will promptly issue and deliver to or upon the order
of the holder thereof a new Warrant Certificate or certificates of like tenor,
in the name of such holder or as such holder (upon payment by such holder of any
applicable transfer taxes) may direct, calling in the aggregate for the purchase
of the number of Shares Units called for on the face or faces of the Warrant
Certificate or Certificates so surrendered.
(e) Replacement of Representative=s Warrants. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of any Warrant Certificate and, in the case of any such loss, theft
or destruction, upon delivery of an indemnity agreement reasonably satisfactory
in form and amount to the Company or, in the case of any such mutilation, upon
surrender and cancellation of such Warrant Certificate, the Company, at the
expense of the warrant holder will execute and deliver, in lieu thereof, a new
Warrant Certificate of like tenor.
(f) Reporting by the Company. The Company agrees that, if it files a
Registration Statement during the term of the Representative=s Warrants, it will
use its best efforts to keep current in the filing of all forms and other
materials which it may be required to file with the appropriate regulatory
authority pursuant to the Exchange Act, and all other forms and reports required
to be filed with any regulatory authority having jurisdiction over the Company.
(g) Fractional Shares. Units. No fractional Shares Units are to be
issued upon the exercise of any Representative=s Warrant, but the Company shall
pay a cash adjustment in respect of any fraction of a Share Unit which would
otherwise be issuable in an amount equal to the same fraction of the highest
market price per Share Unit on the day of exercise, as determined by the
Company.
8. Other Holders.
The Representative=s Warrants are issued upon the following terms, to
all of which each holder or owner thereof by the taking thereof consents and
agrees as follows: (a) any person who shall become a transferee, within the
limitations on transfer imposed by Section 3(a) hereof, of a Representative=s
Warrant properly endorsed shall take such Representative=s Warrant subject to
the provisions of Section 3(a) hereof and thereupon shall be authorized to
represent himself as absolute owner thereof and, subject to the restrictions
contained in this Agreement, shall be empowered to transfer absolute title by
endorsement and delivery thereof to a permitted bona fide purchaser for value;
(b) each prior taker or owner waives and renounces all of his equities or rights
in such Representative=s Warrant in favor of each such permitted bona fide
purchaser, and each such permitted bona fide purchaser shall acquire absolute
title thereto and to all rights presented thereby; (c) until such time as the
respective Representative=s Warrant is transferred on the books of the Company,
the Company may treat the registered holder thereof as the absolute owner
thereof for all purposes, notwithstanding any notice to the contrary and (d) all
references to the word Ayou@ in this Warrant Agreement shall be deemed to apply
with equal effect to any person to whom a Warrant Certificate or Certificates
have been transferred in accordance with the terms hereof, and where
appropriate, to any person holding shares of the Underlying Stock Securities.
9. Miscellaneous.
All notices, certificates and other communications from or at the
request of the Company to the holder of any Representative=s Warrant shall be
mailed by first class, registered or certified mail, postage prepaid, to such
address as may have been furnished to the Company in writing by such holder, or,
until an address is so furnished, to the address of the last holder of such
Representative=s Warrant who has so furnished an address to the Company, except
as otherwise provided herein. This Agreement and any of the terms hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of Texas. The headings in
this Agreement are for reference only and shall not limit or otherwise affect
any of the terms hereof. This Agreement, together with the forms of instruments
annexed hereto as Schedule I, constitutes the full and complete agreement of the
parties hereto with respect to the subject matter hereof.
IN WITNESS WHEREOF, this Representative=s Warrant Agreement has been
duly executed on the date hereof.
Rampart Capital Corporation
By:_____________________ ______
Xxxxxxx X. Xxxxx X. X. Xxxxxxxxx
Chairman and Chief Executive Officer President
Redstone Securities, Inc.
By:____________________________________
Xxxxxx X. Xxxxx, III
EXHIBIT A
Warrant Agreement
35541_5 - 75205/00005
SCHEDULE I
RAMPART CAPITAL CORPORATION
Warrant Certificate
Evidencing Right to Purchase 150,000 Shares of Common Stock 50,000 Units
This is to certify that Redstone Securities, Inc. (ARSI@) or assigns,
is entitled to purchase at any time or from time to time after 10:00 a.m.,
Dallas, Texas New York, New York time, on August 13, 1999 September ____, 2000
and until 5:00 p.m., Dallas, Texas New York, New York time, on August 13
September ___, 2004 up to the above referenced number of shares (the AShares@)
Units (the AUnits@), each consisting of two shares of Common Stock, $.01 par
value (the ACommon Stock@), and one redeemable common stock purchase warrant
(the AWarrants@) of Rampart Capital Corporation, a Texas corporation (the
ACompany@), or the underlying shares of Common Stock and Warrants, if separately
transferable, for the consideration specified in Section 4 of the Warrant
Agreement dated the date hereof between the Company and RSI (the AWarrant
Agreement@), pursuant to which this Warrant is issued. All rights of the holder
of this Warrant Certificate are subject to the terms and provisions of the
Warrant Agreement, copies of which are available for inspection at the office of
the Company. Capitalized terms used but not defined herein shall have the
respective meanings set forth in the Warrant Agreement.
The Shares Underlying Securities issuable upon the exercise of this
Warrant have not been registered under the Securities Act of 1933, as amended
(the AAct@), and no distribution of such Shares Underlying Securities may be
made until the effectiveness of a Registration Statement under the Act covering
such Shares Underlying Securities. Transfer of this Warrant Certificate is
restricted as provided in Section 3(a) of the Warrant Agreement.
This Warrant has been issued to the registered owner in reliance upon
written representations necessary to ensure that this Warrant was issued in
accordance with an appropriate exemption from registration under any applicable
state and federal securities laws, rules and regulations. This Warrant may not
be sold, transferred, or assigned unless, in the opinion of the Company and its
legal counsel, such sale, transfer or assignment will not be in violation of the
Act, applicable rules and regulations of the Securities and Exchange Commission,
and any applicable state securities laws.
Subject to the provisions of the Act and of such Warrant Agreement,
this Warrant Certificate and all rights hereunder are transferable, in whole or
in part, at the offices of the Company, by the holder hereof in person or by
duly authorized attorney, upon surrender of this Warrant Certificate, together
with the Assignment hereof duly endorsed. Until transfer of this Warrant
Certificate on the books of the Company, the Company may treat the registered
holder hereof as the owner hereof for all purposes.
Any Shares (or other securities) Underlying Securities (or Other
Securities) which are acquired pursuant to the exercise of this Warrant shall be
acquired in accordance with the Warrant Agreement and certificates representing
all securities so acquired shall bear a restrictive legend reading substantially
as follows:
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 OR UNDER ANY APPLICABLE STATE LAW. THEY MAY NOT BE OFFERED FOR
SALE, SOLD, TRANSFERRED OR PLEDGED WITHOUT (1) REGISTRATION UNDER THE
SECURITIES ACT OF 1933 AND ANY APPLICABLE STATE LAW, OR (2) AN OPINION
OF COUNSEL (SATISFACTORY TO THE CORPORATION) THAT REGISTRATION IS NOT
REQUIRED.
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be executed by its duly authorized officer.
Date: August 13 September ____, 1999.
Rampart Capital Corporation
By:
X. X. Xxxxxxxxx, President
SUBSCRIPTION
(To be signed only upon exercise of Warrant)
To: Rampart Capital Corporation
The undersigned, the holder of the enclosed Warrant Certificate, hereby
irrevocably elects to exercise the purchase right represented by such Warrant
Certificate for, and to purchase thereunder, _________________ Units (AUnits@),
each consisting of two shares shares of Common Stock, $.01 par value, (the
ACommon Stock@), and one redeemable common stock purchase warrant (the
AWarrants@) of Rampart Capital Corporation, or the underlying Common Stock and
Warrants, if separately transferable, and either tenders herewith payment of the
purchase price in full in the form of cash or a certified or cashier=s check in
the amount of $______________ therefor or, if the undersigned elects pursuant to
Section 4(b) of the Warrant Agreement referred to in the Warrant Certificate to
convert the enclosed Warrant Certificate into Common Stock by net issuance, the
undersigned exercises the Warrant by exchange under the terms of said Section
4(b), and requests that the certificate or certificates for such Shares
securities be issued in the name of and delivered to the undersigned.
Date: ______________________________
----------------------------------------
(Signature must conform
in all respects to name
of holder as specified on
the face of the Warrant
Certificate)
---------------------------------------
---------------------------------------
(Address)
Please indicate in the space below the number of Shares Units called
for on the face of the Warrant Certificate (or, in the case of a partial
exercise, the portion thereof as to which the Warrant is being exercised), in
either case without making any adjustment for additional Shares Units or other
securities or property or cash which, pursuant to the adjustment provisions of
the Warrant, may be deliverable upon exercise and whether the exercise is a cash
exercise pursuant to Section 4(a) of the Warrant Agreement or a net issuance
exercise pursuant to Section 4(b) of the Warrant Agreement.
Number of Shares Units (or shares of Common Stock and Warrants): __________
Cash:____________________
Net issuance:______________
ASSIGNMENT
(To be signed only upon transfer of Warrant)
For value received, the undersigned hereby sells, assigns and transfers unto
____________________________________ the right represented by the enclosed
Warrant Certificate to purchase ____________________ Units (AUnits@), each
consisting of two shares of Common Stock, $.01 par value, (ACommon Stock@), and
one redeemable common stock purchase warrant (AWarrant@) of Rampart Capital
Corporation, or the underlying Common Stock or Warrants, with full power of
substitution in the premises.
The undersigned represents and warrants that the transfer, in whole in
or in part, of such right to purchase represented by the enclosed Warrant
Certificate is permitted by the terms of the Warrant Agreement referred to in
the Warrant Certificate, and the transferee hereof, by his acceptance of this
Assignment, represents and warrants that he or she is familiar with the terms of
such Warrant Agreement and agrees to be bound by the terms thereof with the same
force and effect as if a signatory thereto.
Date:___________________
(Signature must conform
in all respects to name of
holder as specified on
the face of the Warrant
Certificate)
(Address)
Signed in the presence of:
EXHIBIT B
FORM OF LOCK-UP AGREEMENT
Redstone Securities, Inc.,
As Representative of the Several Underwriters
000 Xxxxxxxxx Xxxxxx
Xxxxxxxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The undersigned understands that you, as the Representative of the
several underwriters (the AUnderwriters@), propose to enter into an Underwriting
Agreement (the AUnderwriting Agreement@) with Rampart Capital Corporation, a
Texas corporation (the ACompany@), providing for the initial public offering
(the AOffering@) by the Underwriters, of 1,500,000 500,000 Units, each
consisting of two shares of Common Stock of the Company, $.01 par value (the
ACommon Stock@), and one redeemable common stock purchase warrant (the
AWarrants@), pursuant to the Company=s Registration Statement on Form SB-2 (the
ARegistration Statement@) filed with the Securities and Exchange Commission.
In consideration of the Underwriters= agreement to purchase the Common
Stock, and for other good and valuable consideration, receipt of which is hereby
acknowledged, the undersigned hereby agrees that during the period beginning on
the date of this letter and ending three (3) years (the ALock-Up Period@) after
the date of the final prospectus relating to the offer and sale of the Common
Stock, the undersigned will not, directly or indirectly, offer, sell, contract
to sell, grant any option for the sale of, pledge, or otherwise dispose of
(individually, a ADisposition@) any Common Stock, or securities exercisable,
convertible, or exchangeable for or into Common Stock (collectively, the
ASecurities@), that the undersigned now owns or will own in the future
(beneficially or of record), except (i) as a bona fide gift or gifts, provided
the donee or donees thereof agree in writing to be bound by this Lock-Up
Agreement, or (ii) with the prior written consent of the Representative. The
foregoing restriction is expressly agreed to preclude the holder of Securities
from engaging in any hedging or other transaction which is designed to or
reasonably expected to lead to or result in a Disposition of Securities during
the Lock-Up Period, even if such Securities would be disposed of by someone
other than the undersigned. Such prohibited hedging or other transactions would
include, without limitation, any short sale or any purchase, sale or grant of
any right (including, without limitation, any put or call option) with respect
to any security (other than a broad-based market basket or index) that includes,
relates to or derives any significant part of its value from Securities.
Sincerely,
Date: August 13 September ____, 1999
By:
