As filed with the Securities and Exchange Commission on January 29, 1997
Registration No. 333-__________
___________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
__________________________________
BRITTON & KOONTZ CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Mississippi 64-0665423
(State or other (I.R.S. Employer
jurisdiction of incorporation Identification Number)
or organization)
500 Main Street
Natchez, Mississippi 39120
(Address, including Zip Code of
Registrant's Principal Executive Offices)
__________________________________
BRITTON & KOONTZ CAPITAL CORPORATION
LONG-TERM INCENTIVE PLAN
(Full title of the plan)
W. PAGE OGDEN Copy to:
President ANDREW L. SCHWARCZ, ESQ.
and Chief Executive Officer Phelps Dunbar, L.L.P.
Britton & Koontz Capital Corporation 400 Poydras Street, 30th Floor
500 Main Street New Orleans, Louisiana 70130-3245
Natchez, Mississippi 39120 (504) 584-9361
(601) 445-5576
(Name, address and telephone number,
including area code, of agent for service)
__________________________________
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
Proposed Proposed
Title of securities Amount maximum maximum
to be registered To be offering aggregate Amount of
registered price per offering registration
share (1) price fee
<S> <C> <C> <C> <C>
Common Stock, $10.00 40,000 shares $59.50 $2,380,000 $725.00
par value
(1) Calculated pursuant to Rule 457(c) of the Securities Act of 1933, as amended
(the "Securities Act"), as permitted by Rule 457(h)(1) of the Securities Act,
based upon the average of the bid and asked price for the Company's shares of
common stock as of January 28, 1997.
</TABLE>
<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.Incorporation of Documents by Reference.
The following documents, which have been filed by Britton & Koontz
Capital Corporation (the "Company") with the Securities and Exchange
Commission (the "Commission") pursuant to the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), are incorporated herein by
this reference:
(1) The Company's Annual Report on Form 10-KSB, as amended,
for the fiscal year ended December 31, 1995, filed with the Commission
pursuant to Section 13(a) of the Exchange Act, including the report of
May & Company dated January 25, 1996, contained therein;
(2) The Company's Quarterly Reports on Form 10-QSB for the
quarters ended March 31, 1996, June 30, 1996 and September 30, 1996,
filed with the Commission pursuant to Section 13(a) of the Exchange
Act; and
(3) The description of the Company's common stock, $10.00 par
value (the "Common Stock"), set forth in the Company's Registration
Statement on Form 8-A filed with the Commission on October 13, 1993
pursuant to Section 12(g) of the Exchange Act.
In addition, all documents subsequently filed by the Company
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act
prior to the filing by the Company of a post-effective amendment which
indicates that all securities offered hereby have been sold or which
deregisters all securities then remaining unsold, shall be deemed by this
reference to be incorporated in this Registration Statement and to be a
part hereof from the date of filing such documents. Any statement
contained in a document incorporated or deemed to be incorporated by
reference herein shall be deemed to be modified or superseded for
purposes of this Registration Statement to the extent that a statement
contained herein or any other subsequently filed document which also is
or is deemed to be incorporated by reference herein modifies or
supersedes such statement. Any such statements so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Registration Statement.
Item 4.Description of Securities.
The shares of the Company's Common Stock registered hereby are
included in a class of securities registered under Section 12 of the
Exchange Act.
Item 5.Interest of Named Experts and Counsel.
Not applicable.
<PAGE>
Item 6.Indemnification of Directors and Officers.
The corporation laws of Mississippi and the Company's Articles of
Incorporation and By-laws provide for (i) indemnification of the
Company's officers and directors in a variety of circumstances, which
may include liabilities under the Securities Act of 1933, as amended (the
"Securities Act"), and (ii) limitation of liability of a director to the
Company or its shareholders for monetary damages, unless the director
failed to meet specified standards of conduct.
The Company also maintains officers' and directors' liability
insurance, which insures against liabilities that the officers and directors
of the Company may incur in such capacities.
Item 7.Exemption from Registration Claimed.
Not applicable.
Item 8.Exhibits.
Exhibit No. Description
4.1 Articles of Incorporation of the Company, as
amended to date.
4.2 The By-Laws of the Company, as amended to
date (incorporated by reference to Exhibit 3.2
to the Company's Current Report on Form 8A
filed with the Commission on October 13,
1993).
4.3 The Shareholder Rights Agreement, authorized
by the Company's shareholders on May 16,
1996 and adopted on behalf of the Company
and Britton & Koontz First National Bank on
July 16, 1996.
4.4 Britton & Koontz Capital Corporation Long-
Term Incentive Plan, including Amendment
Number One.
5 Opinion of Phelps Dunbar, L.L.P.,
regarding the legality of the Company
Common Stock being registered hereby.
23.1 Consent of Phelps Dunbar, L.L.P. (included in
Exhibit 5)
23.2 Consent of May & Company
24 Power of Attorney (included on signature page of
this Registration Statement)
<PAGE>
Item 9.Undertakings.
The Company hereby undertakes:
(1) To file, during any period in which it offers or sells securities,
a post-effective amendment to this Registration Statement to include any
additional or changed material information with respect to the plan of
distribution.
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To, by means of a post-effective amendment, remove from
registration any of the securities being registered which remain unsold
at the end of the offering.
(4) That, for purposes of determining any liability under the
Securities Act of 1933, each filing of the Company's annual report
pursuant to section 13(a) or section 15(d) of the Exchange Act (and,
where applicable, each filing of an employee benefit plan's annual report
pursuant to section 15(d) of the Exchange Act) that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(5) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling
persons of the Company pursuant to the foregoing provisions, or
otherwise, the Company has been advised that in the opinion of the
Commission such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable. In the event that
a claim for indemnification against such liabilities (other than the
payment by the Company of expenses incurred or paid by a director,
officer or controlling person of the Company in the successful defense
of any action, suit or proceeding) is asserted by such director, officer,
or controlling person in connection with the securities being registered,
the Company will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Company certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-8 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Natchez, State of Mississippi
on this 29th day of January, 1997.
BRITTON & KOONTZ CAPITAL CORPORATION
By: /s/ W. Page Ogden
W. Page Ogden, President
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears immediately below constitutes and appoints W. Page Ogden
and Bazile R. Lanneau, Jr., and each of them, his true and lawful
attorney-in-fact and agent, with full power of substitution, for him and
in his name, place and stead, in any and all capacities, to sign any and
all amendments (including post-effective amendments) to this
Registration Statement, and to file the same with all exhibits thereto, and
other documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorney-in-fact and agent full
power and authority to do and perform each and every act and thing
requisite and necessary to be done, as fully to all intents and purposes
as he might or could do in person, hereby ratifying and confirming all
that said attorney-in-fact and agent or his substitute or substitutes may
lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as
amended, this Registration Statement has been signed by the following
persons in the capacities and on the dates indicated.
<PAGE>
Signature Title Date
<TABLE>
<CAPTION>
<S> <C> <C>
/s/ W. Page Ogden President, January 29, 1997
W. Page Ogden Chief Executive
Officer and Director
(Principal Executive
Officer)
/s/ W. W. Allen, Jr. Director January 29, 1997
W. W. Allen, Jr.
/s/ Craig A. Bradford, DMD Director January 29, 1997
Craig A. Bradford, DMD
/s/ James J. Cole Director January 29, 1997
James J. Cole
/s/ Wilton R. Dale Director January 29, 1997
Wilton R. Dale
/s/ William J. Feltus, III Chairman and January 29, 1997
William J. Feltus, III Director
/s/ A. J. Ferguson Director January 29, 1997
A. J. Ferguson
/s/ Charles W. Herold, Jr. Director January 29, 1997
Charles W. Herold, Jr.
/s/ Hayden Kaiser, Jr. Vice Chairman January 29, 1997
Hayden Kaiser, Jr. and Director
/s/ Donald E. Killelea, M.D. Director January 29, 1997
Donald E. Killelea, M.D.
/s/ Bazile R. Lanneau, Sr. Director January 29, 1997
Bazile R. Lanneau, Sr.
/s/ Bazile R. Lanneau, Jr. Vice President, Chief January 29, 1997
Bazile R. Lanneau, Jr. Financial Officer,
Treasurer, Assistant
Secretary and Director
(Principal Financial Officer)
(Principal Accounting Officer)
/s/ Albert W. Metcalfe Secretary and January 29, 1997
Albert W. Metcalfe Director
/s/ Bethany L. Overton Director January 29, 1997
Bethany L. Overton
/s/ Robert R. Punches Director January 29, 1997
Robert R. Punches
</TABLE>
EXHIBIT 4.1
RESTATED
ARTICLES OF INCORPORATION
OF
BRITTON & KOONTZ CAPITAL CORPORATION
FIRST: The name of the corporation is Britton & Koontz
Capital Corporation.
SECOND: The period of its duration is ninety-nine (99) years.
THIRD: The specific purpose or purposes for which the
corporation is organized stated in general terms are:
Primarily, to purchase, own and hold the stock of other
corporations, and to do every act and thing covered generally by the
denomination "holding corporation" or "holding company," and
especially to direct the operations of other corporations through the
ownership of stock therein; to purchase, subscribe for, acquire, own,
hold, sell, exchange, assign, transfer, create security interest in,
pledge or otherwise dispose of shares of the capital stock, or any
bonds, notes, securities or evidences of indebtedness created by any
other corporation or corporations organized under the laws of this
state or any other state or district or country, nation or government
and also bonds or evidences of indebtedness of the United States or
any other state, district, territory, dependency or country or
subdivision or municipality thereof; to issue in exchange therefor
shares of the capital stock, bonds, notes or other obligations of the
corporation and while the owner thereof to exercise all the rights,
powers and privileges of ownership including the right to vote on
any shares of stock; to promote, lend money to and guarantee the
bonds, notes, evidences of indebtedness, contracts or other
obligations of, and otherwise aid in any manner which shall be
lawful, any corporation or association of which any bonds, stocks or
other securities or evidences of indebtedness shall be held by or for
this corporation, or in which, or in the welfare of which, this
corporation shall have any interest, and to do any acts and things
permitted by law and designed to protect, preserve, improve or
enhance the value of any such bonds, stocks or other securities or
evidences of indebtedness or the property of this corporation.
<PAGE>
And, to engage in such activities or businesses as may from time to
time be permitted by State or Federal statutes, regulations or
authorities, including, but not limited to, the business of acting as
agent or broker for insurance companies in soliciting and receiving
application for any and all types of insurance, collecting premiums
and doing such other business as may be delegated to agents or
brokers by such insurance companies and to conduct an insurance
agency and insurance brokerage business.
To do any and all things and exercise any and all powers, rights and
privileges which the corporation may now or hereafter be authorized
to do under the Mississippi Business Corporation Act.
FOURTH: The Corporation has authority to issue 3,000,000
shares of capital stock all of which shall be designated as common stock
with a par value of $10.00 per share.
FIFTH: The corporation will not commence business until
consideration of the value of at least $1,000 has been received for the
issuance of shares.
SIXTH: Britton & Koontz Capital Corporation shall have the
right to purchase its own shares to the extent of its unreserved and
unrestricted earned surplus and capital surplus available therefor.
SEVENTH: If any person, firm, or corporation, (herein referred to
as the Tender Offeror) or any person, firm, or corporation controlling the
Tender Offeror, controlled by the Tender Offeror, or under common
control with the Tender Offeror, or any group of which the Tender Offeror
or any of the foregoing persons, firms, or corporations are members, or
any other group controlling the Tender Offeror, controlled by the Tender
Offeror, or under common control with the Tender Offeror owns of record,
or owns beneficially, directly or indirectly, more than 10% of any class of
equity voting security of this Corporation with the Tender Offeror, then any
merger or consolidation of this corporation with the Tender Offeror, or any
sale, lease, or exchange of substantially all of the assets of this Corporation
or of the Tender Offeror to the other may not be effected under the laws of
Mississippi unless a meeting of the shareholders of this Corporation is held
to vote thereon and the votes of the holders of voting securities of this
Company representing not less than 80% of the votes entitled to vote
thereon, vote in favor thereof. As used herein, the term group includes
persons, firms, and corporations acting in concert, whether or not as a
formal group, and the term equity security means any share or similar
security; or any security convertible, with or without consideration, into
such a security, or carrying any warrant to subscribe to or purchase such a
security; or any such warrant or right. The foregoing provision is to
require a greater vote of shareholders than is required by Mississippi Code
of 1972 Section 79-3-145 (dealing with mergers and consolidations) and
Section 79-3-157 (dealing with sales, mortgages, etc. of assets outside the
ordinary course of business) and the provisions of this Article SEVENTH
shall not be amended, changed or repealed without a similar 80% vote of
the voting securities in this Corporation, which is a greater vote than
required by Mississippi Code of 1972 Section 79-3-117 (dealing with
amendments to these Articles of Incorporation).
<PAGE>
EIGHTH: Pursuant to the provisions of Section 79-4-2.02(b)(4),
Miss. Code Ann. (1972), as Amended, the Directors of the Corporation
shall not be liable to the Corporation or its shareholders for money damages
for any action taken, or any failure to take action, as a Director, except
liability for: (a) the amount of a financial benefit received by a Director to
which he is not entitled; (b) an intentional infliction of harm on the
corporation or the shareholders; (c) a violation of Section 79-4-8.33, Miss.
Code Ann. (1972), as Amended; or (d) an intentional violation of criminal
law.
NINTH: The name and post office address of each incorporator is:
NAME STREET AND POST OFFICE ADDRESS
W. J. Feltus, Jr. 200 D'Evereaux Drive
P. O. Box 1067
Natchez, Mississippi 39120
Albert W. Metcalfe 108 Overton Road
Natchez, Mississippi 39120
TENTH: The Corporation shall have three classes of directors,
each class to be as nearly equal in number as possible, the term of office of
directors of the first class to expire at the first annual meeting of the
shareholders after their election, that of the second class to expire at the
second annual meeting after their election, and that of the third class to
expire at the third annual meeting after their election. At each annual
meeting after such classification, the number of directors equal to the
number of the class whose term expires at the time of such meeting shall be
elected to hold office.
Directors shall be elected only at annual meetings of shareholders,
and any vacancy in the Board of Directors, however created, shall be filled
at the annual meeting succeeding the creation of such vacancy. If the
number of directors is changed, any increase or decrease shall be
apportioned among the classes so as to maintain the number of directors in
each class as nearly equal as possible, and any additional director of any
class elected to fill a vacancy resulting from an increase in such class shall
hold office for a term that shall coincide with the remaining term of that
class, but in no case will a decrease in the number of directors shorten the
term of any incumbent director.
<PAGE>
No member of the Board of Directors may be removed, with or
without cause, except at a meeting called in accordance with the Bylaws
expressly for that purpose and except upon a vote in favor of such removal
of the holders of eighty percent (80%) of the shares then entitled to vote at
an election of directors; and in the event that less than the entire Board is to
be removed, no one of the directors may be removed if the votes cast
against his removal would be sufficient to elect him if then cumulatively
voted at an election of the class of directors of which he is a part.
The vote of shareholders required to alter, amend or repeal this
Article TENTH, or to alter, amend or repeal any other Article of the
Articles of Incorporation in any respect which would or might have the
effect, direct or indirect, of modifying, permitting any action inconsistent
with, or permitting circumvention of this Article TENTH, shall be by the
affirmative vote of at least eighty percent (80%) of the total voting power
of all shares of stock of the Corporation entitled to vote in the election of
directors, considered for purposes of this Article as one class.
ELEVENTH: The Board of Directors of the Corporation, in
connection with the exercise of its judgment in determining what is in the
best interest of the Corporation and its shareholders when evaluating any
proposed Major Business Transaction (as defined below), in addition to
considering the adequacy of the amount of consideration to be paid in
connection with such transaction, shall consider all of the following factors
and any other factors which it deems relevant:
(a) the social and economic effects of the transaction on the
Corporation, any subsidiary, depositors, loan and other
customers, creditors and employees of the Corporation and its
subsidiaries, and other elements of the community in which
the Corporation and its subsidiaries operate or are located;
(b) the business, financial condition and earnings prospects of the
acquiring person, including, but not limited to, debt service
and other existing or likely financial obligations of the
acquiring person, and the possible effect of such conditions
upon the Corporation, its subsidiaries and the other elements
of the community in which the Corporation and its
subsidiaries operate or are located; and
(c) the competence, experience and integrity of the acquiring
person and its management.
For purposes of this Article, the term "Major Business Transaction"
shall mean (i) any merger or consolidation of the Corporation or any
subsidiary, (ii) any sale, exchange, transfer or other disposition of all or
substantially all of the Corporation's or any subsidiary's assets, (iii) any
offer to purchase any or all of the Corporation's securities, or (iv) any
similar transaction or event.
<PAGE>
The vote of shareholders required to alter, amend or repeal this
Article ELEVENTH, or to alter, amend or repeal any other Article of the
Articles of Incorporation in any respect which would or might have the
effect, direct or indirect, of modifying, permitting any action inconsistent
with, or permitting circumvention of this Article ELEVENTH, shall be by
the affirmative vote of at least eighty percent (80%) of the total voting
power of all shares of stock of the Corporation entitled to vote in the
election of directors, considered for purposes of this Article as one class.
TWELFTH: Effective June 1, 1996, the Corporation hereby elects
to be governed by the provisions of the Mississippi Control Share Act, section
79-27-1 et. seq., and to be an "issuing public corporation" for all purposes
thereof.
The vote of shareholders required to alter, amend or repeal this
Article TWELFTH, or to alter, amend or repeal any other Article of the
Articles of Incorporation in any respect which would or might have the
effect, direct or indirect, of modifying, permitting any action inconsistent
with, or permitting circumvention of this Article TWELFTH, shall be by
the affirmative vote of at least eighty percent (80%) of the total voting
power of all shares of stock of the Corporation entitled to vote in the
election of directors, considered for purposes of this Article as one class.
EXHIBIT 4.3
RIGHTS AGREEMENT
between
BRITTON & KOONTZ CAPITAL CORPORATION
and
BRITTON & KOONTZ NATIONAL BANK
Dated as of June 1, 1996
<PAGE>
TABLE OF CONTENTS
Section 1. Certain Definitions . . . . . . . . . . . . . .
Section 2. Appointment of Rights Agent . . . . . . . . . .
Section 3. Issuance of Right Certificates. . . . . . . . .
Section 4. Form of Right Certificates. . . . . . . . . . .
Section 5. Countersignature and Registration . . . . . . .
Section 6. Transfer, Split Up, Combination and
Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right
Certificates. . . . . . . . . . . . . . . . . .
Section 7. Exercise of Rights; Purchase Price; Expiration
Date of Rights. . . . . . . . . . . . . . . . .
Section 8. Cancellation and Destruction of Right
Certificates. . . . . . . . . . . . . . . . . .
Section 9. Availability of Common Shares . . . . . . . . .
Section 10. Common Shares Record Date . . . . . . . . . . .
Section 11. Adjustment of Purchase Price; Number of
Shares or Number of Rights. . . . . . . . . . .
Section 12. Certificate of Adjusted Purchase Price or
Number of Shares. . . . . . . . . . . . . . . .
Section 13. Consolidation, Merger or Sale or Transfer of
Assets or Earning Power . . . . . . . . . . . .
Section 14. Fractional Rights and Fractional Shares . . . .
Section 15. Rights of Action. . . . . . . . . . . . . . . .
Section 16. Agreement of Right Holders. . . . . . . . . . .
Section 17. Right Certificate Holder Not Deemed a
Stockholder . . . . . . . . . . . . . . . . . .
Section 18. Concerning the Rights Agent . . . . . . . . . .
Section 19. Merger or Consolidation or Change of Name of
Rights Agent. . . . . . . . . . . . . . . . . .
Section 20. Duties of Rights Agent. . . . . . . . . . . . .
<PAGE>
Section 21. Change of Rights Agent. . . . . . . . . . . . .
Section 22. Issuance of New Right Certificates. . . . . . .
Section 23. Redemption. . . . . . . . . . . . . . . . . . .
Section 24. Exchange. . . . . . . . . . . . . . . . . . . .
Section 25. Notice of Certain Events. . . . . . . . . . . .
Section 26. Notices . . . . . . . . . . . . . . . . . . . .
Section 27. Supplements and Amendments. . . . . . . . . . .
Section 28. Successors. . . . . . . . . . . . . . . . . . .
Section 29. Benefits of this Agreement. . . . . . . . . . .
Section 30. Severability. . . . . . . . . . . . . . . . . .
Section 31. Governing Law . . . . . . . . . . . . . . . . .
Section 32. Counterparts. . . . . . . . . . . . . . . . . .
Section 33. Descriptive Headings. . . . . . . . . . . . . .
<PAGE>
RIGHTS AGREEMENT
Agreement, dated as of June 1, 1996, between Britton &
Koontz Capital Corporation, a Mississippi corporation (the "Company"),
and Britton & Koontz First National Bank (the "Rights Agent").
The Board of Directors of the Company has authorized and
declared a dividend of one common share purchase right (a "Right") for
each Common Share (as hereinafter defined) of the Company outstanding
on September 1, 1996 (the "Record Date"), each Right representing the
right to purchase one Common Share, upon the terms and subject to the
conditions herein set forth, and has further authorized and directed the
issuance of one Right with respect to each Common Share that shall
become outstanding between the Record Date and the earliest of the
Distribution Date, the Redemption Date and the Final Expiration Date (as
such terms are hereinafter defined).
Accordingly, in consideration of the premises and the
mutual agreements herein set forth, the parties hereby agree as follows:
Section 1. Certain Definitions. For purposes of this
Agreement, the following terms have the meanings indicated:
(a) "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates and
Associates (as such terms are hereinafter defined) of such Person, shall be
the Beneficial Owner (as such term is hereinafter defined) of 25% or more
of the Common Shares of the Company then outstanding, but shall not
include the Company, any Subsidiary (as such term is hereinafter defined)
of the Company, any employee benefit plan of the Company or any
Subsidiary of the Company, or any entity holding Common Shares for or
pursuant to the terms of any such plan. Notwithstanding the foregoing,
if the Board of Directors of the Company determines in good faith that a
Person who would otherwise be an "Acquiring Person", as defined
pursuant to the foregoing provisions of this paragraph (a), has become
such inadvertently, and such Person divests as promptly as practicable a
sufficient number of Common Shares so that such Person would no longer
be an "Acquiring Person," as defined pursuant to the foregoing provisions
of this paragraph (a), then such Person shall not be deemed to be an
"Acquiring Person" for any purposes of this Agreement.
(b) "Affiliate" and "Associate" shall have the respective
meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), as in effect on the date of this Agreement.
(c) A Person shall be deemed the "Beneficial Owner" of and
shall be deemed to "beneficially own" any securities:
(i) which such Person or any of such Person's Affiliates
or Associates beneficially owns, directly or indirectly;
<PAGE>
(ii) which such Person or any of such Person's Affiliates
or Associates has (A) the right to acquire (whether such right is
exercisable immediately or only after the passage of time) pursuant
to any agreement, arrangement or understanding (other than
customary agreements with and between underwriters and selling
group members with respect to a bona fide public offering of
securities), or upon the exercise of conversion rights, exchange
rights, rights (other than these Rights), warrants or options, or
otherwise; provided, however, that a Person shall not be deemed
the Beneficial Owner of, or to beneficially own, securities tendered
pursuant to a tender or exchange offer made by or on behalf of
such Person or any of such Person's Affiliates or Associates until
such tendered securities are accepted for purchase or exchange; or
(B) the right to vote pursuant to any agreement, arrangement or
understanding; provided, however, that a Person shall not be
deemed the Beneficial Owner of, or to beneficially own, any
security if the agreement, arrangement or understanding to vote
such security (1) arises solely from a revocable proxy or consent
given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the
applicable rules and regulations promulgated under the Exchange
Act and (2) is not also then reportable on Schedule 13D under the
Exchange Act (or any comparable or successor report); or
(iii) which are beneficially owned, directly or indirectly,
by any other Person with which such Person or any of such
Person's Affiliates or Associates has any agreement, arrangement
or understanding (other than customary agreements with and
between underwriters and selling group members with respect to
a bona fide public offering of securities) for the purpose of
acquiring, holding, voting (except to the extent contemplated by
the proviso to Section 1(c)(ii)(B)) or disposing of any securities of
the Company.
Notwithstanding anything in this definition of Beneficial Ownership
to the contrary, the phrase "then outstanding", when used with reference
to a Person's Beneficial Ownership of securities of the Company, shall
mean the number of such securities then issued and outstanding together
with the number of such securities not then actually issued and outstanding
which such Person would be deemed to own beneficially hereunder.
(d) "Business Day" shall mean any day other than a Saturday,
a Sunday, or a day on which banking institutions in New York are
authorized or obligated by law or executive order to close.
(e) "Close of business" on any given date shall mean 5:00
p.m., Natchez, Mississippi time, on such date; provided, however, that
if such date is not a Business Day it shall mean 5:00 p.m., Natchez,
Mississippi time, on the next succeeding Business Day.
(f) "Common Shares" when used with reference to the Company
shall mean the shares of common stock, par value $10.00 per share, of
the Company. "Common Shares" when used with reference to any Person other
than the Company shall mean the capital stock (or equity interest) with the
greatest voting power of such other Person or, if such other Person is a
Subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.
<PAGE>
(g) "Distribution Date" shall have the meaning set forth in
Section 3 hereof.
(h) "Final Expiration Date" shall have the meaning set forth in
Section 7 hereof.
(i) "Person" shall mean any individual, firm, corporation or
other entity, and shall include any successor (by merger or otherwise) of
such entity.
(j) "Redemption Date" shall have the meaning set forth in
Section 7 hereof.
(k) "Shares Acquisition Date" shall mean the first date of public
announcement by the Company or an Acquiring Person that an Acquiring
Person has become such.
(l) "Subsidiary" of any Person shall mean any corporation or
other entity of which a majority of the voting power of the voting equity
securities or equity interest is owned, directly or indirectly, by such
Person.
Section 2. Appointment of Rights Agent. The Company hereby
appoints the Rights Agent to act as agent for the Company and the holders
of the Rights (who, in accordance with Section 3 hereof, shall prior to the
Distribution Date also be the holders of the Common Shares) in
accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time
appoint such co-Rights Agents as it may deem necessary or desirable.
Section 3. Issuance of Right Certificates. (a) Until the earlier of
(i) the tenth day after the Shares Acquisition Date or (ii) the tenth business
day (or such later date as may be determined by action of the Board of
Directors prior to such time as any Person becomes an Acquiring Person)
after the date of the commencement by any Person (other than the
Company any Subsidiary of the Company, any employee benefit plan of
the Company or of any Subsidiary of the Company or any entity holding
Common Shares for or pursuant to the terms of any such plan) of, or of
the first public announcement of the intention of any Person (other than
the Company, any Subsidiary of the Company, any employee benefit plan
of the Company or of any Subsidiary of the Company or any entity
holding Common Shares for or pursuant to the terms of any such plan) to
commence, a tender or exchange offer the consummation of which would
result in any Person becoming the Beneficial Owner of Common Shares
aggregating 25% or more of the then outstanding Common Shares
(including any such date which is after the date of this Agreement and
prior to the issuance of the Rights; the earlier of such dates being herein
referred to as the "Distribution Date"), (x) the Rights will be evidenced
(subject to the provisions of Section 3(b) hereof) by the certificates for
Common Shares registered in the names of the holders thereof (which
certificates shall also be deemed to be Right Certificates) and not by
separate Right Certificates, and (y) the right to receive Right Certificates
<PAGE>
will be transferable only in connection with the transfer of Common
Shares. As soon as practicable after the Distribution Date, the Company
will prepare and execute, the Rights Agent will countersign, and the
Company will send or cause to be sent (and the Rights Agent will, if
requested, send) by first-class, insured, postage-prepaid mail, to each
record holder of Common Shares as of the close of business on the
Distribution Date, at the address of such holder shown on the records of
the Company, a Right Certificate, in substantially the form of Exhibit A
hereto (a "Right Certificate"), evidencing one Right for each Common
Share so held. As of the Distribution Date, the Rights will be evidenced
solely by such Right Certificates.
(b) On the Record Date, or as soon as practicable thereafter,
the Company will send a copy of a Summary of Rights to Purchase
Common Shares, in substantially the form of Exhibit B hereto (the
"Summary of Rights"), by first-class, postage-prepaid mail, to each record
holder of Common Shares as of the close of business on the Record Date,
at the address of such holder shown on the records of the Company. With
respect to certificates for Common Shares outstanding as of the Record
Date, until the Distribution Date, the Rights will be evidenced by such
certificates registered in the names of the holders thereof together with a
copy of the Summary of Rights attached thereto. Until the Distribution
Date (or the earlier of the Redemption Date or the Final Expiration Date),
the surrender for transfer of any certificate for Common Shares
outstanding on the Record Date, with or without a copy of the Summary
of Rights attached thereto, shall also constitute the transfer of the Rights
associated with the Common Shares represented thereby.
(c) Certificates for Common Shares which become outstanding
(including, without limitation, reacquired Common Shares referred to in
the last sentence of this paragraph (c)) after the Record Date but prior to
the earliest of the Distribution Date, the Redemption Date or the Final
Expiration Date shall have impressed on, printed on, written on or
otherwise affixed to them the following legend:
This certificate also evidences and entitles
the holder hereof to certain rights as set
forth in a Rights Agreement between Britton
& Koontz Capital Corporation and Britton &
Koontz First National Bank dated as of June
1, 1996 (the "Rights Agreement"), the terms
of which are hereby incorporated herein by
reference and a copy of which is on file at
the principal executive offices of Britton &
Koontz Capital Corporation. Under certain
circumstances, as set forth in the Rights
Agreement, such Rights will be evidenced
by separate certificates and will no longer be
evidenced by this certificate. Britton &
Koontz Capital Corporation will mail to the
holder of this certificate a copy of the Rights
Agreement without charge after receipt of a
written request therefor. As described in
the Rights Agreement, Rights issued to any
Person who becomes an Acquiring Person
(as defined in the Rights Agreement) shall
become null and void.
<PAGE>
With respect to such certificates containing the foregoing legend, until the
Distribution Date, the Rights associated with the Common Shares
represented by such certificates shall be evidenced by such certificates
alone, and the surrender for transfer of any such certificate shall also
constitute the transfer of the Rights associated with the Common Shares
represented thereby. In the event that the Company purchases or acquires
any Common Shares after the Record Date but prior to the Distribution
Date, any Rights associated with such Common Shares shall be deemed
cancelled and retired so that the Company shall not be entitled to exercise
any Rights associated with the Common Shares which are no longer
outstanding.
Section 4. Form of Right Certificates. The Right Certificates
(and the forms of election to purchase Common Shares and of assignment
to be printed on the reverse thereof) shall be substantially the same as
Exhibit A hereto and may have such marks of identification or designation
and such legends, summaries or endorsements printed thereon as the
Company may deem appropriate and as are not inconsistent with the
provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or
with any rule or regulation of any stock exchange on which the Rights
may from time to time be listed, or to conform to usage. Subject to the
provisions of Section 22 hereof, the Right Certificates shall entitle the
holders thereof to purchase such number of Common Shares as shall be
set forth therein at the price per Common Share set forth therein (the
"Purchase Price"), but the number of such Common Shares and the
Purchase Price shall be subject to adjustment as provided herein.
Section 5. Countersignature and Registration. The Right
Certificates shall be executed on behalf of the Company by its Chairman
of the Board, its Chief Executive Officer, or its President, either manually
or by facsimile signature, shall have affixed thereto the Company's seal
or a facsimile thereof, and shall be attested by the Secretary or an
Assistant Secretary of the Company, either manually or by facsimile
signature. The Right Certificates shall be manually countersigned by the
Rights Agent and shall not be valid for any purpose unless countersigned.
In case any officer of the Company who shall have signed any of the
Right Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the
Company, such Right Certificates, nevertheless, may be countersigned by
the Rights Agent and issued and delivered by the Company with the same
force and effect as though the person who signed such Right Certificates
had not ceased to be such officer of the Company; and any Right
Certificate may be signed on behalf of the Company by any person who,
at the actual date of the execution of such Right Certificate, shall be a
proper officer of the Company to sign such Right Certificate, although at
the date of the execution of this Rights Agreement any such person was
not such an officer.
Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its principal office, books for registration and transfer
of the Right Certificates issued hereunder. Such books shall show the
names and addresses of the respective holders of the Right Certificates,
the number of Rights evidenced on its face by each of the Right
Certificates and the date of each of the Right Certificates.
<PAGE>
Section 6. Transfer, Split Up, Combination and Exchange of
Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
Subject to the provisions of Section 14 hereof, at any time after the close
of business on the Distribution Date, and at or prior to the close of
business on the earlier of the Redemption Date or the Final Expiration
Date, any Right Certificate or Right Certificates (other than Right
Certificates representing Rights that have become void pursuant to Section
11(a)(ii) hereof or that have been exchanged pursuant to Section 24
hereof) may be transferred, split up, combined or exchanged for another
Right Certificate or Right Certificates, entitling the registered holder to
purchase a like number of Common Shares as the Right Certificate or
Right Certificates surrendered then entitled such holder to purchase. Any
registered holder desiring to transfer, split up, combine or exchange any
Right Certificate or Right Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Right Certificate or
Right Certificates to be transferred, split up, combined or exchanged at
the principal office of the Rights Agent. Thereupon, the Rights Agent
shall countersign and deliver to the person entitled thereto a Right
Certificate or Right Certificates, as the case may be, as so requested. The
Company may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer,
split up, combination or exchange of Right Certificates.
Upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a Right Certificate, and, in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to them, and, at the
Company's request, reimbursement to the Company and the Rights Agent
of all reasonable expenses incidental thereto, and upon surrender to the
Rights Agent and cancellation of the Right Certificate, if mutilated, the
Company will make and deliver a new Right Certificate of like tenor to
the Rights Agent for delivery to the registered holder in lieu of the Right
Certificate so lost, stolen, destroyed or mutilated.
Section 7. Exercise of Rights; Purchase Price; Expiration Date
of Rights. (a) The registered holder of any Right Certificate may exercise
the Rights evidenced thereby (except as otherwise provided herein) in
whole or in part at any time after the Distribution Date upon surrender of
the Right Certificate, with the form of election to purchase on the reverse
side thereof duly executed, to the Rights Agent at the principal office of
the Rights Agent, together with payment of the Purchase Price for each
Common Share as to which the Rights are exercised, at or prior to the
earliest of (i) the close of business on September 1, 2006 (the "Final
Expiration Date"), (ii) the time at which the Rights are redeemed as
provided in Section 23 hereof (the "Redemption Date"), or (iii) the time
at which such Rights are exchanged as provided in Section 24 hereof.
(b) The Purchase Price for each Common Share purchasable
pursuant to the exercise of a Right shall initially be $150.00, and shall be
subject to adjustment from time to time as provided in Sections 11 and 13
hereof and shall be payable in lawful money of the United States of
America in accordance with paragraph (c) below.
<PAGE>
(c) Upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied
by payment of the Purchase Price for the
shares to be purchased and an amount equal to any applicable transfer tax
required to be paid by the holder of such Right Certificate in accordance
with Section 9 hereof by certified check, cashier's check or money order
payable to the order of the Company, the Rights Agent shall thereupon
promptly (i) requisition from any transfer agent of the Common Shares
certificates for the number of Common Shares to be purchased and the
Company hereby irrevocably authorizes its transfer agent to comply with
all such requests, (ii) when appropriate, requisition from the Company the
amount of cash to be paid in lieu of issuance of fractional shares in
accordance with Section 14 hereof, (iii) after receipt of such certificates,
cause the same to be delivered to or upon the order of the registered
holder of such Right Certificate, registered in such name or names as may
be designated by such holder, and (iv) when appropriate, after receipt,
deliver such cash to or upon the order of the registered holder of such
Right Certificate.
(d) In case the registered holder of any Right Certificate shall
exercise less than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be
issued by the Rights Agent to the registered holder of such Right
Certificate or to his duly authorized assigns, subject to the provisions of
Section 14 hereof.
(e) The issuance of Rights pursuant to this Agreement shall be
deemed to be an issuance of rights created in connection with the prior
and prospective issuance and sale of the Company's Common Shares and
has been authorized by a vote of the Board of Directors of the Company
by a vote of more than two-thirds of the directors then in office. If any
registered holder of Rights, other than Rights that are or were acquired or
beneficially owned by any Acquiring Person or any Associate or Affiliate
of such Acquiring Person and voided pursuant to Section 11(a)(ii) of this
Agreement, is prevented from exercising the Rights pursuant to the terms
of this Section 7 of the Agreement or any other section of this Agreement
for reasons other than as set forth in this Agreement, then the Company
shall take all steps necessary and obtain all required authorizations to
allow such registered holder to exercise his or her Rights. If the
Company is unable to take steps necessary or obtain required
authorizations to allow such holder to exercise his or her Rights, then the
Company shall provide cash compensation to such registered holder in
such an amount as is required to place said registered holder in the same
economic position to the fullest extent possible after giving effect to taxes
and all other relevant considerations as he or she would have been in had
he or she been permitted to exercise the Rights as contemplated by the
terms of this Agreement; provided, however, that if the Company is
unable to pay such cash compensation or if the obligation of the Company
to pay such cash compensation is unenforceable, then no Rights granted
pursuant to this Agreement shall be exercisable until such time as all
holders intended to be able to exercise Rights under the terms of this
Agreement are permitted to do so.
Section 8. Cancellation and Destruction of Right Certificates. All
Right Certificates surrendered for the purpose of exercise, transfer, split
up, combination or exchange shall, if surrendered to the Company or to
any of its agents, be delivered to the Rights Agent for cancellation or in
cancelled form, or, if surrendered to the Rights Agent, shall be cancelled
<PAGE>
by it, and no Right Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Rights Agreement.
The Company shall deliver to the Rights Agent for cancellation and
retirement, and the Rights Agent shall so cancel and retire, any other
Right Certificate purchased or acquired by the Company otherwise than
upon the exercise thereof. The Rights Agent shall deliver all cancelled
Right Certificates to the Company, or shall, at the written request of the
Company, destroy such cancelled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.
Section 9. Availability of Common Shares. The Company
covenants and agrees that it will cause to be reserved and kept available
out of its authorized and unissued Common Shares or any Common Shares
held in its treasury, the number of Common Shares that will be sufficient
to permit the exercise in full of all outstanding Rights in accordance with
Section 7. The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all Common Shares delivered
upon exercise of Rights shall, at the time of delivery of the certificates for
such Common Shares (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and nonassessable shares.
The Company further covenants and agrees that it will pay when
due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the issuance or delivery of the Right
Certificates or of any Common Shares upon the exercise of Rights. The
Company shall not, however, be required to pay any transfer tax which
may be payable in respect of any transfer or delivery of Right Certificates
to a person other than, or the issuance or delivery of certificates for the
Common Shares in a name other than that of, the registered holder of the
Right Certificate evidencing Rights surrendered for exercise or to issue or
to deliver any certificates for Common Shares upon the exercise of any
Rights until any such tax shall have been paid (any such tax being payable
by the holder of such Right Certificate at the time of surrender) or until
it has been established to the Company's reasonable satisfaction that no
such tax is due.
Section 10. Common Shares Record Date. Each person in whose
name any certificate for Common Shares is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of
record of the Common Shares represented thereby on, and such certificate
shall be dated, the date upon which the Right Certificate evidencing such
Rights was duly surrendered and payment of the Purchase Price (and any
applicable transfer taxes) was made; provided, however, that if the date
of such surrender and payment is a date upon which the Common Shares
transfer books of the Company are closed, such person shall be deemed
to have become the record holder of such shares on, and such certificate
shall be dated, the next succeeding Business Day on which the Common
Shares transfer books of the Company are open. Prior to the exercise of
the Rights evidenced thereby, the holder of a Right Certificate shall not
be entitled to any rights of a holder of Common Shares for which the
Rights shall be exercisable, including, without limitation, the right to vote,
to receive dividends or other distributions or to exercise any preemptive
rights, and shall not be entitled to receive any notice of any proceedings
of the Company, except as provided herein.
<PAGE>
Section 11. Adjustment of Purchase Price; Number of Shares or
Number of Rights. The Purchase Price, the number of Common Shares
covered by each Right and the number of Rights outstanding are subject
to adjustment from time to time as provided in this Section 11.
(a) (i) In the event the Company shall at any time after the date
of this Agreement (A) declare a dividend on the Common Shares
payable in Common Shares, (B) subdivide the outstanding
Common Shares, (C) combine the outstanding Common Shares
into a smaller number of Common Shares, or (D) issue any shares
of its capital stock in a reclassification of the Common Shares
(including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this
Section 11(a), the Purchase Price in effect at the time of the record
date for such dividend or of the effective date of such subdivision,
combination or reclassification, and the number and kind of shares
of capital stock issuable on such date, shall be proportionately
adjusted so that the holder of any Right exercised after such time
shall be entitled to receive the aggregate number and kind of
shares of capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the Common
Shares transfer books of the Company were open, he would have
owned upon such exercise and been entitled to receive by virtue of
such dividend, subdivision, combination or reclassification;
provided, however, that in no event shall the consideration to be
paid upon the exercise of one Right be less than the aggregate par
value of the shares of capital stock of the Company issuable upon
exercise of one Right.
(ii) Subject to Section 24 of this Agreement, in the event that
any Person should become an Acquiring Person, each holder of a
Right shall thereafter have a right to receive, upon exercise thereof
at a price equal to the then current Purchase Price multiplied by
the number of Common Shares for which a Right is then
exercisable, in accordance with the terms of this Agreement, such
number of Common Shares of the Company as shall equal the
result obtained by (x) multiplying the then current Purchase Price
by the number of Common Shares for which a Right is then
exercisable and dividing that product by (y) 50% of the then
current per share market price of the Company's Common Shares
(determined pursuant to Section 11(d) hereof) on the date of the
occurrence of such event. In the event that any Person shall
become an Acquiring Person and the Rights shall then be
outstanding, the Company shall not take any action which would
eliminate or diminish the benefits intended to be afforded by the Rights.
From and after the occurrence of such event, any Rights that are
or were acquired or beneficially owned by any Acquiring Person or any
Associate or Affiliate of such Acquiring Person (including, without
limitation, any Rights issued in respect of any Common Shares that are
beneficially owned by any Acquiring Person at the time such Acquiring
Person becomes an Acquiring Person) shall be void and any holder of
such Rights shall thereafter have no right to exercise such Rights under
any provision of this Agreement. No Right Certificate shall be issued
pursuant to Section 3 that represents Rights beneficially owned by an
Acquiring Person whose Rights would be void pursuant to the preceding
sentence or any Associate or Affiliate thereof; no Right Certificate shall
<PAGE>
be issued at any time upon the transfer of any Rights to an Acquiring
Person whose Rights would be void pursuant to the preceding sentence or
any Associate or Affiliate thereof or to any nominee of such Acquiring
Person, Associate or Affiliate; and any Right Certificate delivered to the
Rights Agent for transfer to an Acquiring Person whose Rights would be
void pursuant to the preceding sentence shall be cancelled.
(iii) In the event that there shall not be sufficient
Common Shares issued but not outstanding or authorized but
unissued to permit the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii), the Company shall take all
such action as may be necessary to authorize additional Common
Shares for issuance upon exercise of the Rights.
(b) In case the Company shall fix a record date for the issuance
of rights, options or warrants to all holders of Common Shares entitling
them (for a period expiring within 45 calendar days after such record date)
to subscribe for or purchase Common Shares or securities convertible into
Common Shares at a price per Common Share (or having a conversion
price per share, if a security convertible into Common Shares) less than
the then current per share market price of the Common Shares (as defined
in Section 11(d)) on such record date, the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the
numerator of which shall be the number of Common Shares outstanding
on such record date plus the number of Common Shares which the
aggregate offering price of the total number of Common Shares so to be
offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such current market price
and the denominator of which shall be the number of Common Shares
outstanding on such record date plus the number of additional Common
Shares to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of
capital stock of the Company issuable upon exercise of one Right. In case
such subscription price may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall
be as determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent. Common Shares owned by or held for the account of the
Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such
a record date is fixed; and in the event that such rights, options or
warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not
been fixed.
(c) In case the Company shall fix a record date for the making
of a distribution to all holders of the Common Shares (including any such
distribution made in connection with a consolidation or merger in which
the Company is the continuing or surviving corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend or a
dividend payable in Common Shares) or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price
<PAGE>
to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a
fraction, the numerator of which shall be the then current per share
market price of the Common Shares on such record date, less the fair
market value (as determined in good faith by the Board of Directors of the
Company whose determination shall be described in a statement filed with
the Rights Agent) of the portion of the assets or evidences of indebtedness
so to be distributed or of such subscription rights or warrants applicable
to one Common Share and the denominator of which shall be such current
per share market price of the Common Shares; provided, however, that
in no event shall the consideration to be paid upon the exercise of one
Right be less than the aggregate par value of the shares of capital stock of
the Company to be issued upon exercise of one Right. Such adjustments
shall be made successively whenever such a record date is fixed; and in
the event that such distribution is not so made, the Purchase Price shall
again be adjusted to be the Purchase Price which would then be in effect
if such record date had not been fixed.
(d) For the purpose of any computation hereunder, the "current
per share market price" of the Common Shares on any date shall be
deemed to be the average of the daily closing prices per share of such
Common Shares for the 30 consecutive Trading Days (as such term is
hereinafter defined) immediately prior to such date; provided, however,
that in the event that the current per share market price of the Common
Shares is determined during a period following the announcement by the
issuer of such Common Shares of (A) a dividend or distribution on such
Common Shares payable in shares of such Common Shares or securities
convertible into such shares, or (B) any subdivision, combination or
reclassification of such Common Shares and prior to the expiration of 30
Trading Days after the ex-dividend date for such dividend or distribution,
or the record date for such subdivision, combination or reclassification,
then, and in each such case, the current per share market price shall be
appropriately adjusted to reflect the current market price per Common
Share. The closing price for each day shall be the last sale price, regular
way, or, in case no such sale takes place on such day, the average of the
closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Common Shares are listed or admitted to trading or, if the Common
Shares are not listed or admitted to trading on any national securities
exchange, the last quoted price or, if not so quoted, the average of the
high bid and low asked prices in the over-the-counter market, as reported
by the National Association of Securities Dealers, Inc. Automated
Quotations System ("NASDAQ") or such other system then in use, or, if
on any such date the Common Shares are not quoted by any such
organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in the Common Shares
selected by the Board of Directors of the Company. The term "Trading
Day" shall mean a day on which the principal national securities exchange
on which the Common Shares are listed or admitted to trading is open for
the transaction of business or, if the Common Shares are not listed or
admitted to trading on any national securities exchange, a Business Day.
If the Common Shares are not publicly held or so listed or traded,
"current per share market price" shall mean the fair value per share as
determined in good faith by the Board of Directors of the Company,
whose determination shall be described in a statement filed with the Rights
Agent.
<PAGE>
(e) No adjustment in the Purchase Price shall be required
unless such adjustment would require an increase or decrease of at least
1% in the Purchase Price; provided, however, that any adjustments which
by reason of this Section 11(e) are not required to be made shall be
carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 shall be made to the nearest cent or to
the nearest one ten-thousandth of a share as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i)
three years from the date of the transaction which requires such
adjustment or (ii) the date of the expiration of the right to exercise any
Rights.
(f) If as a result of an adjustment made pursuant to Section
11(a) hereof, the holder of any Right thereafter exercised shall become
entitled to receive any shares of capital stock of the Company other than
Common Shares, thereafter the number of such other shares so receivable
upon exercise of any Right shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Shares contained in Section 11(a)
through (c), inclusive, and the provisions of Sections 7, 9, 10 and 13 with
respect to the Common Shares shall apply on like terms to any such other
shares.
(g) All Rights originally issued by the Company subsequent to
any adjustment made to the Purchase Price hereunder shall evidence the
right to purchase, at the adjusted Purchase Price, the number of Common
Shares purchasable from time to time hereunder upon exercise of the
Rights, all subject to further adjustment as provided herein.
(h) Unless the Company shall have exercised its election as
provided in Section 11(i), upon each adjustment of the Purchase Price as
a result of the calculations made in Sections 11(b) and (c), each Right
outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Purchase Price,
that number of Common Shares (calculated to the nearest one
ten-thousandth of a share) obtained by (i) multiplying (x) the number of
shares covered by a Right immediately prior to this adjustment by (y) the
Purchase Price in effect immediately prior to such adjustment of the
Purchase Price and (ii) dividing the product so obtained by the Purchase
Price in effect immediately after such adjustment of the Purchase Price.
(i) The Company may elect on or after the date of any
adjustment of the Purchase Price to adjust the number of Rights, in
substitution for any adjustment in the number of Common Shares
purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the
number of Common Shares for which a Right was exercisable immediately
prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one ten-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase
Price by the Purchase Price in effect immediately after adjustment of the
Purchase Price. The Company shall make a public announcement of its
election to adjust the number of Rights, indicating the record date for the
<PAGE>
adjustment, and, if known at the time, the amount of the adjustment to be
made. This record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Right Certificates have been
issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each
adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to
holders of record of Right Certificates on such record date Right
Certificates evidencing, subject to Section 14 hereof, the additional Rights
to which such holders shall be entitled as a result of such adjustment, or,
at the option of the Company, shall cause to be distributed to such holders
of record in substitution and replacement for the Right Certificates held
by such holders prior to the date of adjustment, and upon surrender
thereof, if required by the Company, new Right Certificates evidencing
all the Rights to which such holders shall be entitled after such
adjustment. Right Certificates so to be distributed shall be issued,
executed and countersigned in the manner provided for herein and shall
be registered in the names of the holders of record of Right Certificates
on the record date specified in the public announcement.
(j) Irrespective of any adjustment or change in the Purchase
Price or the number of Common Shares issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may
continue to express the Purchase Price and the number of Common Shares
which were expressed in the initial Right Certificates issued hereunder.
(k) Before taking any action that would cause an adjustment
reducing the Purchase Price below the then par value, if any, of the
Common Shares issuable upon exercise of the Rights, the Company shall
take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully
paid and nonassessable Common Shares at such adjusted Purchase Price.
(l) In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for
a specified event, the Company may elect to defer until the occurrence of
such event the issuing to the holder of any Right exercised after such
record date of the Common Shares and other capital stock or securities of
the Company, if any, issuable upon such exercise over and above the
Common Shares and other capital stock or securities of the Company, if
any, issuable upon such exercise on the basis of the Purchase Price in
effect prior to such adjustment; provided, however, that the Company
shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder's right to receive such additional shares upon the
occurrence of the event requiring such adjustment.
(m) Anything in this Section 11 to the contrary notwithstanding,
the Company shall be entitled to make such reductions in the Purchase
Price, in addition to those adjustments expressly required by this Section
11, as and to the extent that it in its sole discretion shall determine to be
advisable in order that any consolidation or subdivision of the Common
Shares, issuance wholly for cash of any Common Shares at less than the
current market price, issuance wholly for cash of Common Shares or
securities which by their terms are convertible into or exchangeable for
Common Shares, dividends on Common Shares payable in Common
Shares or issuance of rights, options or warrants referred to hereinabove
in Section 11(b), hereafter made by the Company to holders of its
Common Shares shall not be taxable to such stockholders.
<PAGE>
Section 12. Certificate of Adjusted Purchase Price or Number of
Shares. Whenever an adjustment is made as provided in Section 11 or 13
hereof, the Company shall promptly (a) prepare a certificate setting forth
such adjustment, and a brief statement of the facts accounting for such
adjustment, (b) file with the Rights Agent and with each transfer agent for
the Common Shares a copy of such certificate, and (c) mail a brief
summary thereof to each holder of a Right Certificate in accordance with
Section 25 hereof.
Section 13. Consolidation, Merger or Sale or Transfer of Assets
or Earning Power. In the event, directly or indirectly, at any time after
a Person has become an Acquiring Person (a) the Company shall
consolidate with, or merge with and into, any other Person, (b) any
Person shall consolidate with the Company, or merge with and into the
Company and the Company shall be the continuing or surviving entity of
such merger and, in connection with such merger, all or part of the
Common Shares shall be changed into or exchanged for stock or other
securities of any other Person (or the Company) or cash or any other
property, or (c) the Company shall sell or otherwise transfer (or one or
more of its Subsidiaries shall sell or otherwise transfer), in one or more
transactions, assets or earning power aggregating 50% or more of the
assets or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person other than the Company or one or more of its
wholly owned Subsidiaries, then, and in each such case, proper provision
shall be made so that (i) each holder of a Right (except as otherwise
provided herein) shall thereafter have the right to receive, upon the
exercise thereof at a price equal to the then current Purchase Price
multiplied by the number of Common Shares for which a Right is then
exercisable, in accordance with the terms of this Agreement, such number
of Common Shares of such other Person (including the Company as
successor thereto or as the surviving entity) as shall equal the result
obtained by (A) multiplying the then current Purchase Price by the number
of Common Shares for which a Right is then exercisable and dividing that
product by (B) 50% of the then current per share market price of the
Common Shares of such other Person (determined pursuant to Section
11(d) hereof) on the date of consummation of such consolidation, merger,
sale or transfer; (ii) the issuer of such Common Shares shall thereafter be
liable for, and shall assume, by virtue of such consolidation, merger, sale
or transfer, all the obligations and duties of the Company pursuant to this
Agreement; (iii) the term "Company" shall thereafter be deemed to refer
to such issuer; and (iv) such issuer shall take such steps (including, but
not limited to, the reservation of a sufficient number of its Common
Shares in accordance with Section 9 hereof) in connection with such
consummation as may be necessary to assure that the provisions hereof
shall thereafter be applicable, as nearly as reasonably may be, in relation
to the Common Shares thereafter deliverable upon the exercise of the
Rights. The Company shall not consummate any such consolidation,
merger, sale or transfer unless prior thereto the Company and such issuer
shall have executed and delivered to the Rights Agent a supplemental
agreement so providing, which agreement shall provide among other
things that all Persons who are registered holders of the Rights entitled to
exercise said Rights in accordance with the provisions of this Agreement
shall be entitled to exercise the Rights as provided hereunder without any
restrictions being imposed thereon. The Company shall not enter into any
<PAGE>
transaction of the kind referred to in this Section 13 if at the time of such
transaction there are any rights, warrants, instruments or securities
outstanding or any agreements or arrangements which, as a result of the
consummation of such transaction, would eliminate or substantially
diminish the benefits intended to be afforded by the Rights. The
provisions of this Section 13 shall similarly apply to successive mergers
or consolidations or sales or other transfers.
Section 14. Fractional Rights and Fractional Shares. (a) The
Company shall not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights. In lieu of such
fractional Rights, there shall be paid to the registered holders of the Right
Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the
Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price
for any day shall be the last sale price, regular way, or in case no such
sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or, if the Rights are not listed
or admitted to trading on the New York Stock Exchange, as reported in
the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the
Rights are listed or admitted to trading or, if the Rights are not listed or
admitted to trading on any national securities exchange, the last quoted
price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by NASDAQ or such
other system then in use or, if on any such date the Rights are not quoted
by any such organization the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the
Rights selected by the Board of Directors of the Company. If on any such
date no such market maker is making a market in the Rights, the fair
value of the Rights on such date as determined in good faith by the Board
of Directors of the Company shall be used.
(b) The Company shall not be required to issue fractions of
Common Shares upon exercise of the Rights or to distribute certificates
which evidence fractional Common Shares. In lieu of fractional Common
Shares, the Company shall pay to the registered holders of Right
Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of
one Common Share. For the purposes of this Section 14(b), the current
market value of a Common Share shall be the closing price of a Common
Share (as determined pursuant to the second sentence of Section 11(d)(i)
hereof) for the Trading Day immediately prior to the date of such
exercise.
(c) The holder of a Right by the acceptance of the Right
expressly waives his right to receive any fractional Rights or any
fractional shares upon exercise of a Right (except as provided above).
<PAGE>
Section 15. Rights of Action. All rights of action in respect of
this Agreement, excepting the rights of action given to the Rights Agent
under Section 18 hereof, are vested in the respective registered holders of
the Right Certificates (and, prior to the Distribution Date, the registered
holders of the Common Shares); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Shares),
without the consent of the Rights Agent or of the holder of any other
Right Certificate (or, prior to the Distribution Date, of the Common
Shares), may, in his own behalf and for his own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company
to enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for
any breach of this Agreement and will be entitled to specific performance
of the obligations under, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to, this Agreement.
Section 16. Agreement of Right Holders. Every holder of a
Right, by accepting the same, consents and agrees with the Company and
the Rights Agent and with every other holder of a Right that:
(a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares;
(b) after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered
at the principal office of the Rights Agent, duly endorsed or accompanied
by a proper instrument of transfer; and
(c) the Company and the Rights Agent may deem and treat the
person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Shares certificate) is registered as the
absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right
Certificates or the associated Common Shares certificate made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever,
and neither the Company nor the Rights Agent shall be affected by any
notice to the contrary.
Section 17. Right Certificate Holder Not Deemed a Stockholder.
No holder, as such, of any Right Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of the
Common Shares or any other securities of the Company which may at any
time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Right Certificate be construed
to confer upon the holder of any Right Certificate, as such, any of the
rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action,
or to receive notice of meetings or other actions affecting stockholders
(except as provided in Section 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by
such Right Certificate shall have been exercised in accordance with the
provisions hereof.
<PAGE>
Section 18. Concerning the Rights Agent. The Company agrees
to pay to the Rights Agent reasonable compensation for all services
rendered by it hereunder and, from time to time, on demand of the Rights
Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the administration and execution of this Agreement and the
exercise and performance of its duties hereunder. The Company also
agrees to indemnify the Rights Agent for, and to hold it harmless against,
any loss, liability, or expense, incurred without negligence, bad faith or
wilful misconduct on the part of the Rights Agent, for anything done or
omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of
defending against any claim of liability in the premises.
The Rights Agent shall be protected and shall incur no liability for,
or in respect of any action taken, suffered or omitted by it in connection
with, its administration of this Agreement in reliance upon any Right
Certificate or certificate for the Common Shares or for other securities of
the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate,
statement, or other paper or document believed by it to be genuine and to
be signed, executed and, where necessary, verified or acknowledged, by
the proper person or persons, or otherwise upon the advice of counsel as
set forth in Section 20 hereof.
Section 19. Merger or Consolidation or Change of Name of
Rights Agent. Any corporation into which the Rights Agent or any
successor Rights Agent may be merged or with which it may be
consolidated, or any corporation resulting from any merger or
consolidation to which the Rights Agent or any successor Rights Agent
shall be a party, or any corporation succeeding to the stock transfer or
corporate trust powers of the Rights Agent or any successor Rights Agent,
shall be the successor to the Rights Agent under this Agreement without
the execution or filing of any paper or any further act on the part of any
of the parties hereto; provided that such corporation would be eligible for
appointment as a successor Rights Agent under the provisions of Section
21 hereof. In case at the time such successor Rights Agent shall succeed
to the agency created by this Agreement, any of the Right Certificates
shall have been countersigned but not delivered, any such successor Rights
Agent may adopt the countersignature of the predecessor Rights Agent and
deliver such Right Certificates so countersigned; and in case at that time
any of the Right Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates either in
the name of the predecessor Rights Agent or in the name of the successor
Rights Agent; and in all such cases such Right Certificates shall have the
full force provided in the Right Certificates and in this Agreement.
In case at any time the name of the Rights Agent shall be changed
and at such time any of the Right Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so
countersigned; and in case at that time any of the Right Certificates shall
<PAGE>
not have been countersigned, the Rights Agent may countersign such
Right Certificates either in its prior name or in its changed name; and in
all such cases such Right Certificates shall have the full force provided in
the Right Certificates and in this Agreement.
Section 20. Duties of Rights Agent. The Rights Agent undertakes
the duties and obligations imposed by this Agreement upon the following
terms and conditions, by all of which the Company and the holders of
Right Certificates, by their acceptance thereof, shall be bound:
(a) The Rights Agent may consult with legal counsel (who may
be legal counsel for the Company), and the opinion of such counsel shall
be full and complete authorization and protection to the Rights Agent as
to any action taken or omitted by it in good faith and in accordance with
such opinion.
(b) Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any
fact or matter be proved or established by the Company prior to taking or
suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by any one of
the Chairman of the Board, the Chief Executive Officer, or the President
of the Company and delivered to the Rights Agent; and such certificate
shall be full authorization to the Rights Agent for any action taken or
suffered in good faith by it under the provisions of this Agreement in
reliance upon such certificate.
(c) The Rights Agent shall be liable hereunder to the Company
and any other Person only for its own negligence, bad faith or wilful
misconduct.
(d) The Rights Agent shall not be liable for or by reason of any
of the statements of fact or recitals contained in this Agreement or in the
Right Certificates (except its countersignature thereof) or be required to
verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.
(e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery
hereof (except the due execution hereof by the Rights Agent) or in respect
of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in
any Right Certificate; nor shall it be responsible for any change in the
exercisability of the Rights (including the Rights becoming void pursuant
to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights
(including the manner, method or amount thereof) provided for in Section
3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that
would require any such change or adjustment (except with respect to the
exercise of Rights evidenced by Right Certificates after actual notice that
such change or adjustment is required); nor shall it by any act hereunder
be deemed to make any representation or warranty as to the authorization
or reservation of any Common Shares to be issued pursuant to this
Agreement or any Right Certificate or as to whether any Common Shares
will, when issued, be validly authorized and issued, fully paid and
nonassessable.
<PAGE>
(f) The Company agrees that it will perform, execute,
acknowledge and deliver or cause to be performed, executed,
acknowledged and delivered all such further and other acts, instruments
and assurances as may reasonably be required by the Rights Agent for the
carrying out or performing by the Rights Agent of the provisions of this
Agreement.
(g) The Rights Agent is hereby authorized and directed to
accept instructions with respect to the performance of its duties hereunder
from any one of the Chairman of the Board, the Chief Executive Officer,
or the President of the Company, and to apply to such officers for advice
or instructions in connection with its duties, and it shall not be liable for
any action taken or suffered by it in good faith in accordance with
instructions of any such officer or for any delay in acting while waiting
for those instructions.
(h) The Rights Agent and any stockholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights
or other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or
lend money to the Company or otherwise act as fully and freely as though
it were not Rights Agent under this Agreement. Nothing herein shall
preclude the Rights Agent from acting in any other capacity for the
Company or for any other legal entity.
(i) The Rights Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent shall
not be answerable or accountable for any act, default, neglect or
misconduct of any such attorneys or agents or for any loss to the
Company resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued
employment thereof.
Section 21. Change of Rights Agent. The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties
under this Agreement upon 30 days' notice in writing mailed to the
Company and to each transfer agent of the Common Shares by registered
or certified mail, and to the holders of the Right Certificates by first-class
mail. The Company may remove the Rights Agent or any successor
Rights Agent upon 30 days' notice in writing, mailed to the Rights Agent
or successor Rights Agent, as the case may be, and to each transfer agent
of the Common Shares by registered or certified mail, and to the holders
of the Right Certificates by first-class mail. If the Rights Agent shall
resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Rights Agent. If the Company
shall fail to make such appointment within a period of 30 days after giving
notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent
or by the holder of a Right Certificate (who shall, with such notice,
submit his Right Certificate for inspection by the Company), then the
registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any
<PAGE>
successor Rights Agent, whether appointed by the Company or by such
a court, shall be a corporation organized and doing business under the
laws of the United States or of the State of Mississippi (or of any other
state of the United States so long as such corporation is authorized to do
business as a banking institution in the State of Mississippi, in good
standing, having an office in the State of Mississippi), which is authorized
under such laws to exercise corporate trust or stock transfer powers and
is subject to supervision or examination by federal or state authority.
After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed; but the predecessor
Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not
later than the effective date of any such appointment the Company shall
file notice thereof in writing with the predecessor Rights Agent and each
transfer agent of the Common Shares, and mail a notice thereof in writing
to the registered holders of the Right Certificates. Failure to give any
notice provided for in this Section 21, however, or any defect therein,
shall not affect the legality or validity of the resignation or removal of the
Rights Agent or the appointment of the successor Rights Agent, as the
case may be.
Section 22. Issuance of New Right Certificates. Notwithstanding
any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Right Certificates evidencing
Rights in such form as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price and the number or
kind or class of shares or other securities or property purchasable under
the Right Certificates made in accordance with the provisions of this
Agreement.
Section 23. Redemption. (a) The Board of Directors of the
Company may, at its option, at any time prior to such time as any Person
becomes an Acquiring Person, redeem all but not less than all the then
outstanding Rights at a redemption price of $.001 per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such redemption price being hereinafter
referred to as the "Redemption Price"). The redemption of the Rights by
the Board of Directors may be made effective at such time, on such basis
and with such conditions as the Board of Directors in its sole discretion
may establish.
(b) Immediately upon the action of the Board of Directors of
the Company ordering the redemption of the Rights pursuant to paragraph
(a) of this Section 23, and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right
thereafter of the holders of Rights shall be to receive the Redemption
Price. The Company shall promptly give public notice of any such
redemption; provided, however, that the failure to give, or any defect in,
any such notice shall not affect the validity of such redemption. Within
10 days after such action of the Board of Directors ordering the
redemption of the Rights, the Company shall mail a notice of redemption
to all the holders of the then outstanding Rights at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the
Common Shares. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the
notice. Each such notice of redemption will state the method by which
<PAGE>
the payment of the Redemption Price will be made. Neither the Company
nor any of its Affiliates or Associates may redeem, acquire or purchase
for value any Rights at any time in any manner other than that specifically
set forth in this Section 23 or in Section 24 hereof, and other than in
connection with the purchase of Common Shares prior to the Distribution
Date.
Section 24. Exchange. (a) The Board of Directors of the Company
may, at its option, at any time after any Person becomes an Acquiring
Person, exchange all or part of the then outstanding and exercisable
Rights (which shall not include Rights that have become void
pursuant to the provisions of Section 11(a)(ii) hereof) for Common Shares
at an exchange ratio of one Common Share per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such exchange ratio being hereinafter
referred to as the "Exchange Ratio"). Notwithstanding the foregoing, the
Board of Directors shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan of the Company or any such
Subsidiary, or any entity holding Common Shares for or pursuant to the
terms of any such plan), together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 50% or more of the Common
Shares then outstanding.
(b) Immediately upon the action of the Board of Directors of
the Company ordering the exchange of any Rights pursuant to paragraph
(a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of
Common Shares equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give
public notice of any such exchange; provided, however, that the failure to
give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such
exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent. Any notice which is
mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of exchange will state
the method by which the exchange of the Common Shares for Rights will
be effected and, in the event of any partial exchange, the number of
Rights which will be exchanged. Any partial exchange shall be effected
pro rata based on the number of Rights (other than Rights which have
become void pursuant to the provisions of Section 11(a)(ii) hereof) held
by each holder of Rights.
(c) In the event that there shall not be sufficient Common
Shares issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with this Section 24,
the Company shall take all such action as may be necessary to authorize
additional Common Shares for issuance upon exchange of the Rights.
(d) The Company shall not be required to issue fractions of
Common Shares or to distribute certificates which evidence fractional
Common Shares. In lieu of such fractional Common Shares, the
Company shall pay to the registered holders of the Right Certificates with
regard to which such fractional Common Shares would otherwise be
<PAGE>
issuable an amount in cash equal to the same fraction of the current
market value of a whole Common Share. For the purposes of this
paragraph (d), the current market value of a whole Common Share shall
be the closing price of a Common Share (as determined pursuant to the
second sentence of Section 11(d) hereof) for the Trading Day immediately
prior to the date of exchange pursuant to this Section 24.
Section 25. Notice of Certain Events. (a) In case the Company
shall propose (i) to pay any dividend payable in stock of any class to the
holders of its Common Shares or to make any other distribution to the
holders of its Common Shares (other than a regular quarterly cash
dividend), (ii) to offer to the holders of its Common Shares rights or
warrants to subscribe for or to purchase any additional Common Shares
or shares of stock of any class or any other securities, rights or options,
(iii) to effect any reclassification of its Common Shares (other than a
reclassification involving only the subdivision of outstanding Common
Shares), (iv) to effect any consolidation or merger into or with, or to
effect any sale or other transfer (or to permit one or more of its
Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the
Company and its Subsidiaries (taken as a whole) to, any other Person, or
(v) to effect the liquidation, dissolution or winding up of the Company,
then, in each such case, the Company shall give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of
such stock dividend, or distribution of rights or warrants, or the date on
which such reclassification, consolidation, merger, sale, transfer,
liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the Common Shares, if any such
date is to be fixed, and such notice shall be so given in the case of any
action covered by clause (i) or (ii) above at least 10 days prior to the
record date for determining holders of the Common Shares for purposes
of such action, and in the case of any such other action, at least 10 days
prior to the date of the taking of such proposed action or the date of
participation therein by the holders of the Common Shares whichever shall
be the earlier.
(b) In case the event set forth in Section 11(a)(ii) hereof shall
occur, then the Company shall as soon as practicable thereafter give to
each holder of a Right Certificate, in accordance with Section 26 hereof,
a notice of the occurrence of such event, which notice shall describe such
event and the consequences of such event to holders of Rights under
Section 11(a)(ii) hereof.
Section 26. Notices. Notices or demands authorized by this
Agreement to be given or made by the Rights Agent or by the holder of
any Right Certificate to or on the Company shall be sufficiently given or
made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:
Britton & Koontz Capital Corporation
500 Main Street
Natchez, Mississippi 39121
Attention: W. Page Ogden
<PAGE>
Subject to the provisions of Section 21 hereof, any notice or demand
authorized by this Agreement to be given or made by the Company or by
the holder of any Right Certificate to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Company) as
follows:
Britton & Koontz First National Bank
500 Main Street
Natchez, Mississippi 39121
Attention: Bazile R. Lanneau, Jr.
Notices or demands authorized by this Agreement to be given or made by
the Company or the Rights Agent to the holder of any Right Certificate
shall be sufficiently given or made if sent by first-class mail, postage
prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company.
Section 27. Supplements and Amendments. The Company may
from time to time supplement or amend this Agreement without the
approval of any holders of Right Certificates in order to cure any
ambiguity, to correct or supplement any provision contained herein which
may be defective or inconsistent with any other provisions herein, or to
make any other provisions with respect to the Rights which the Company
may deem necessary or desirable, any such supplement or amendment to
be evidenced by a writing signed by the Company and the Rights Agent;
provided, however, that from and after such time as any Person becomes
an Acquiring Person, this Agreement shall not be amended in any manner
which would adversely affect the interests of the holders of Rights.
Section 28. Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights Agent shall
bind and inure to the benefit of their respective successors and assigns
hereunder.
Section 29. Benefits of this Agreement. Nothing in this
Agreement shall be construed to give to any person or corporation other
than the Company, the Rights Agent and the registered holders of the
Right Certificates (and, prior to the Distribution Date, the Common
Shares) any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Shares).
Section 30. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired
or invalidated.
<PAGE>
Section 31. Governing Law. This Agreement and each Right
Certificate issued hereunder shall be deemed to be a contract made under
the laws of the State of Mississippi and for all purposes shall be governed
by and construed in accordance with the laws of such State applicable to
contracts to be made and performed entirely within such State.
Section 32. Counterparts. This Agreement may be executed in
any number of counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument.
Section 33. Descriptive Headings. Descriptive headings of the
several Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the
provisions hereof.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and attested, all as of the day and year
first above written.
ATTEST: BRITTON & KOONTZ CAPITAL CORPORATION
/s/ Albert W. Metcalfe /s/ W. Page Ogden
_____________________________ ________________________
Albert W. Metcalfe, Secretary W. Page Ogden, President
ATTEST: BRITTON & KOONTZ FIRST NATIONAL BANK
/s/ Albert W. Metcalfe /s/ Bazile R. Lanneau, Jr.
_____________________________ ______________________________________
Albert W. Metcalfe, Secretary Bazile R. Lanneau, Jr., Executive Vice
President and Trust Officer
<PAGE>
EXHIBIT A
Form of Right Certificate
Certificate No. R- _ Rights
NOT EXERCISABLE AFTER SEPTEMBER 1, 2006 OR
EARLIER IF REDEMPTION OR EXCHANGE OCCURS.
THE RIGHTS ARE SUBJECT TO REDEMPTION AT
$.001 PER RIGHT AND TO EXCHANGE ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT.
Right Certificate
BRITTON & KOONTZ CAPITAL CORPORATION
This certifies that ________________________ or registered
assigns, is the registered owner of the number of Rights set forth above,
each of which entitles the owner thereof, subject to the terms, provisions
and conditions of the Rights Agreement, dated as of June 1, 1996 (the
"Rights Agreement"), between Britton & Koontz Capital Corporation, a
Mississippi corporation (the "Company"), and Britton & Koontz First
National Bank (the "Rights Agent"), to purchase from the Company at any
time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to 5:00 p.m., Natchez, Mississippi time, on
September 1, 2006 at the principal office of the Rights Agent, or at the
office of its successor as Rights Agent, one fully paid non-assessable share
of Common Stock par value $10.00 per share (the "Common Shares"), of
the Company at a purchase price of $150.00 per Common Share (the
"Purchase Price"), upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase duly executed. The
number of Rights evidenced by this Right Certificate (and the number of
Common Shares which may be purchased upon exercise hereof) set forth
above, and the Purchase Price set forth above, are the number and
Purchase Price as of ____________________, 19___ based on the
Common Shares as constituted at such date. As provided in the Rights
Agreement, the Purchase Price and the number of Common Shares which
may be purchased upon the exercise of the Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening
of certain events.
This Right Certificate is subject to all of the terms, provisions and
conditions of the Rights Agreement, which terms, provisions and
conditions are hereby incorporated herein by reference and made a part
hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders
of the Right Certificates. Copies of the Rights Agreement are on file at
the principal executive offices of the Company and the above-mentioned
offices of the Rights Agent.
This Right Certificate, with or without other Right Certificates,
upon surrender at the principal office of the Rights Agent, may be
exchanged for another Right Certificate or Right Certificates of like tenor
<PAGE>
and date evidencing Rights entitling the holder to purchase a like
aggregate number of Common Shares as the Rights evidenced by the Right
Certificate or Right Certificates surrendered shall have entitled such holder
to purchase. If this Right Certificate shall be exercised in part, the holder
shall be entitled to receive upon surrender hereof another Right Certificate
or Right Certificates for the number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a
redemption price of $.001 per Right or (ii) may be exchanged in whole or
in part for Common Shares.
No fractional Common Shares will be issued upon the exercise of
any Right or Rights evidenced hereby, but in lieu thereof a cash payment
will be made, as provided in the Rights Agreement.
No holder of this Right Certificate shall be entitled to vote or
receive dividends or be deemed for any purpose the holder of the
Common Shares or of any other securities of the Company which may at
any time be issuable on the exercise hereof, nor shall anything contained
in the Rights Agreement or herein be construed to confer upon the holder
hereof, as such, any of the rights of a stockholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
stockholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or
to receive dividends or subscription rights, or otherwise, until the Right
or Rights evidenced by this Right Certificate shall have been exercised as
provided in the Rights Agreement.
This Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.
WITNESS the facsimile signature of the proper officers of the
Company and its corporate seal. Dated as of , 19_.
ATTEST: BRITTON & KOONTZ CAPITAL CORPORATION
By
Countersigned:
BRITTON & KOONTZ FIRST NATIONAL BANK
By
Authorized Signature
<PAGE>
Form of Reverse Side of Right Certificate
FORM OF ASSIGNMENT
(To be executed by the registered holder if such
holder desires to transfer the Right Certificate.)
FOR VALUE RECEIVED ___________________________ hereby sells,
assigns and transfers unto
_________________________________________
(Please print name and address of transferee)
this Right Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint
_____________________________ Attorney, to transfer the within Right
Certificate on the books of the within-named Company, with full power
of substitution.
Dated: __________, 19___.
______________________________
Signature
Signature Guaranteed:
Signatures must be guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of
Securities Dealers, Inc., or a commercial bank or trust company having
an office or correspondent in the United States.
The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).
_____________________________
Signature
<PAGE>
Form of Reverse Side of Right Certificate -- continued
FORM OF ELECTION TO PURCHASE
(To be executed if holder desires to exercise
Rights represented by the Right Certificate.)
To: BRITTON & KOONTZ CAPITAL CORPORATION
The undersigned hereby irrevocably elects to exercise _____________
Rights represented by this Right Certificate to purchase the Common Shares
issuable upon the exercise of such Rights and requests that certificates
for such Common Shares be issued in the name of:
Please insert social security
or other identifying number
_______________________________
(Please print name and address)
If such number of Rights shall not be all the Rights evidenced by this
Right Certificate, a new Right Certificate for the balance remaining of
such Rights shall be registered in the name of and delivered to:
Please insert social security
or other identifying number
_______________________________
(Please print name and address)
Dated: _________________, 19___.
______________________________
Signature
<PAGE>
Form of Reverse Side of Right Certificate -- continued
Signature Guaranteed:
Signatures must be guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of
Securities Dealers, Inc., or a commercial bank or trust company having
an office or correspondent in the United States.
The undersigned hereby certifies that the Rights evidenced by this
Right Certificate are not beneficially owned by an Acquiring Person or an
Affiliate or Associate thereof (as defined in the Rights Agreement).
_______________________________
Signature
NOTICE
The signature in the Form of Assignment or Form of Election to
Purchase, as the case may be, must conform to the name as written upon
the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.
In the event the certification set forth above in the Form of
Assignment or the Form of Election to Purchase, as the case may be, is
not completed, the Company and the Rights Agent will deem the
beneficial owner of the Rights evidenced by this Right Certificate to be an
Acquiring Person or an Affiliate or Associate thereof (as defined in the
Rights Agreement) and such Assignment or Election to Purchase will not
be honored.
<PAGE>
EXHIBIT B
SUMMARY OF RIGHTS TO PURCHASE
COMMON SHARES
On __________________ , 1996, the Board of Directors of Britton
& Koontz Capital Corporation (the "Company") declared a dividend of
one common share purchase right (a "Right") for each outstanding share
of common stock, par value $10.00 per share (the "Common Shares"), of
the Company. The dividend is payable on September 1, 1996 (the
"Record Date") to the stockholders of record on that date. Each Right
entitles the registered holder to purchase from the Company one Common
Share of the Company at a price of $150.00 per share (the "Purchase
Price"), subject to adjustment. The description and terms of the Rights
are set forth in a Rights Agreement (the "Rights Agreement") between the
Company and Britton & Koontz First National Bank, as Rights Agent (the
"Rights Agent").
Until the earlier to occur of (i) 10 days following a public
announcement that a person or group of affiliated or associated persons
(an "Acquiring Person") have acquired beneficial ownership of 25% or
more of the outstanding Common Shares, or (ii) 10 business days (or such
later date as may be determined by action of the Board of Directors prior
to such time as any person or group of affiliated persons becomes an
Acquiring Person) following the commencement of, or announcement of
an intention to make, a tender offer or exchange offer the consummation
of which would result in the beneficial ownership by a person or group of
25% or more of the outstanding Common Shares (the earlier of such dates
being called the "Distribution Date"), the Rights will be evidenced, with
respect to any of the Common Share certificates outstanding as of the
Record Date, by such Common Share certificate with a copy of this
Summary of Rights attached thereto.
The Rights Agreement provides that, until the Distribution Date (or
earlier redemption or expiration of the Rights), the Rights will be
transferred with and only with the Common Shares. Until the Distribution
Date (or earlier redemption or expiration of the Rights), new Common
Share certificates issued after the Record Date upon transfer or new
issuance of Common Shares will contain a notation incorporating the
Rights Agreement by reference. Until the Distribution Date (or earlier
redemption or expiration of the Rights), the surrender for transfer of any
certificates for Common Shares outstanding as of the Record Date, even
without such notation or a copy of this Summary of Rights being attached
thereto, will also constitute the transfer of the Rights associated with the
Common Shares represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights
("Right Certificates") will be mailed to holders of record of the Common
Shares as of the close of business on the Distribution Date and such
separate Right Certificates alone will evidence the Rights.
The Rights are not exercisable until the Distribution Date. The
Rights will expire on September 1, 2006 (the "Final Expiration Date"),
unless the Final Expiration Date is extended or unless the Rights are
earlier redeemed or exchanged by the Company, in each case, as
described below.
The Purchase Price payable, and the number of Common Shares
or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to prevent dilution (i) in the event
of a stock dividend on, or a subdivision, combination or reclassification
<PAGE>
of, the Common Shares, (ii) upon the grant to holders of the Common
Shares of certain rights or warrants to subscribe for or purchase Common
Shares at a price, or securities convertible into Common Shares with a
conversion price, less than the then-current market price of the Common
Shares or (iii) upon the distribution to holders of the Common Shares of
evidences of indebtedness or assets (excluding regular periodic cash
dividends paid out of earnings or retained earnings or dividends payable
in Common Shares) or of subscription rights or warrants (other than those
referred to above).
In the event that the Company is acquired in a merger or other
business combination transaction or 50% or more of its consolidated assets
or earning power are sold after a person or group has become an
Acquiring Person, proper provision will be made so that each holder of
a Right will thereafter have the right to receive, upon the exercise thereof
at the then current exercise price of the Right, that number of shares of
common stock of the acquiring company which at the time of such
transaction will have a market value of two times the exercise price of the
Right. In the event that any person or group of affiliated or associated
persons becomes an Acquiring Person, proper provision shall be made so
that each holder of a Right, other than Rights beneficially owned by the
Acquiring Person (which will thereafter be void), will thereafter have the
right to receive upon exercise that number of Common Shares having a
market value of two times the exercise price of the Right.
At any time after any person or group becomes an Acquiring
Person and prior to the acquisition by such person or group of 50% or
more of the outstanding Common Shares, the Board of Directors of the
Company may exchange the Rights (other than Rights owned by such
person or group which will have become void), in whole or in part, at an
exchange ratio of one Common Share per Right (subject to adjustment).
With certain exceptions, no adjustment in the Purchase Price will
be required until cumulative adjustments require an adjustment of at least
1% in such Purchase Price. No fractional Common Shares will be issued
and in lieu thereof, an adjustment in cash will be made based on the
market price of the Common Shares on the last trading day prior to the
date of exercise.
At any time prior to such time as any Person becomes an
Acquiring Person, the Board of Directors of the Company may redeem the
Rights in whole, but not in part, at a price of $.001 per Right (the
"Redemption Price"). The redemption of the Rights may be made
effective at such time, on such basis and with such conditions as the Board
of Directors in its sole discretion may establish. Immediately upon any
redemption of the Rights, the right to exercise the Rights will terminate
and the only right of the holders of Rights will be to receive the
Redemption Price.
Until a Right is exercised, the holder thereof, as such, will have
no rights as a stockholder of the Company, including, without limitation,
the right to vote or to receive dividends.
A copy of the Rights Agreement is available free of charge from
the Company. This summary description of the Rights does not purport
to be complete and is qualified in its entirety by reference to the Rights
Agreement, which is hereby incorporated herein by reference.
EXHIBIT 4.4
BRITTON & KOONTZ CAPITAL CORPORATION
LONG-TERM INCENTIVE PLAN
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION
LONG-TERM INCENTIVE PLAN
TABLE OF CONTENTS
SECTION 1 - PURPOSE . . . . . . . . . . . . . .
SECTION 2 - DEFINITIONS . . . . . . . . . . . .
SECTION 3 - ADMINISTRATION. . . . . . . . . . .
Composition. . . . . . . . . . . . . . . .
Power and Authority. . . . . . . . . . . .
Hold Harmless. . . . . . . . . . . . . . .
SECTION 4 - ELIGIBILITY . . . . . . . . . . . .
SECTION 5 - SHARES SUBJECT TO THE PLAN. . . . .
Number of Shares . . . . . . . . . . . . .
Type of Common Stock . . . . . . . . . . .
Cancellation . . . . . . . . . . . . . . .
SECTION 6 - STOCK OPTIONS . . . . . . . . . . .
Special Definition . . . . . . . . . . . .
General Provisions . . . . . . . . . . . .
Incentive Stock Options. . . . . . . . . .
Manner of Exercise . . . . . . . . . . . .
Equity Maintenance . . . . . . . . . . . .
Rights as Stockholder. . . . . . . . . . .
SECTION 7 - RESTRICTED STOCK. . . . . . . . . .
Special Definition . . . . . . . . . . . .
General Provisions . . . . . . . . . . . .
Enforcement of Restrictions. . . . . . . .
Lapse of Restrictions. . . . . . . . . . .
Shareholder Rights . . . . . . . . . . . .
SECTION 8 - PERFORMANCE SHARES. . . . . . . . .
Special Definition . . . . . . . . . . . .
General Provisions . . . . . . . . . . . .
Satisfaction Performance Objectives. . . .
Not a Stockholder. . . . . . . . . . . . .
No Adjustments . . . . . . . . . . . . . .
<PAGE>
SECTION 9 - GENERAL . . . . . . . . . . . . . .
Adoption and Effective Date. . . . . . . .
Duration . . . . . . . . . . . . . . . . .
Transferability of Incentives. . . . . . .
Effect of Termination of Employment. . . .
Additional Legal Requirements. . . . . . .
Adjustment . . . . . . . . . . . . . . . .
Written Agreements . . . . . . . . . . . .
Withholding. . . . . . . . . . . . . . . .
No Continued Employment. . . . . . . . . .
Termination of Plan. . . . . . . . . . . .
Amendment. . . . . . . . . . . . . . . . .
Immediate Acceleration of Incentives . . .
Governing Law. . . . . . . . . . . . . . .
Other Benefits . . . . . . . . . . . . . .
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION
LONG-TERM INCENTIVE PLAN
SECTION 1
PURPOSE
The purposes of the Long-Term Incentive Plan (the "Plan") of
Britton & Koontz Capital Corporation (the "Corporation") are to increase
stockholder value, to advance the interests of the Corporation and its
subsidiaries, and to attract, retain and motivate certain officers, executive
personnel and other key employees through the grant or award of
stock-based incentive compensation.
SECTION 2
DEFINITIONS
2.1 "Act" means the Securities Exchange Act of 1934, as
amended, and any rule, regulation or interpretation thereunder.
2.2 "Affiliate" means a corporation with respect to which the
Corporation owns (within the meaning of Section 425(f) of the Internal
Revenue Code of 1986, as amended) 50% or more of the total combined
voting power of all classes of stock.
2.3 "Bank" means Britton & Koontz First National Bank.
2.4 "Change in Control" means and shall be deemed to occur if:
a. Any "person," including any "group," determined in
accordance with Section 13(d)(3) of the Act becomes the
beneficial owner, directly or indirectly, of securities of the
Corporation representing 20% or more of the combined
voting power of the Corporation's then outstanding
securities, without the approval, recommendation, or
support of the Board of Directors of the Corporation as
constituted immediately prior to such acquisition;
b. The Federal Deposit Insurance Corporation or any other
regulatory agency negotiates and implements a plan for the
merger, transfer of assets and liabilities, reorganization
and/or liquidation of the Bank;
c. The Corporation is merged into another corporate entity or
consolidated with one or more corporations, other than a
wholly-owned subsidiary of the Corporation, unless before
the effective date of such merger or consolidation the board
of directors of the surviving corporation agrees, in writing,
to assume the obligations and liabilities of the Corporation
under this Plan;
<PAGE>
d. A change in the members of the Board of Directors of the
Corporation occurs which results in the exclusion of a
majority of the "continuing board." For this purpose, the
term "continuing board" means the members of the Board
of Directors of the Corporation, determined as of the date
on which this Plan is adopted and subsequent members of such board who
are elected by or on the recommendation of a majority of such "continuing
board"; or
e. The sale of substantially all of the stock or the assets of the
Bank by the Corporation (or any successor corporation
thereto), unless before the effective date of such sale or
other disposition the board of directors of the acquiring
corporation agrees, in writing, to assume the obligations of
the Corporation under this Plan.
2.5 "Code" means the Internal Revenue Code of 1986, as amended.
2.6 "Common Stock" means $10.00 par value voting common stock
issued by the Corporation.
2.7 "Committee" means the persons appointed in accordance
with Section 3 of this Plan.
2.8 "Employee" means a common law employee of the
Corporation, the Bank or an Affiliate designated by the Committee as
participating hereunder.
2.9 "Fair Market Value" means the mean of the closing bid and
asked prices of Common Stock as quoted on the National Association of
Securities Dealers Automated Quotation System, National Market Issues
or other exchange or system of reporting as of the date specified herein;
if no Common Stock is traded on such date, then the Fair Market Value
shall be determined using the mean of the closing bid and ask prices on
the date Common Stock last traded on such system or exchange. If
Common Stock is not traded on any such system or exchange, then Fair
Market Value shall be determined in the discretion of the Plan Committee,
taking into account generally accepted accounting methods.
2.10 "Incentive" means a right to purchase or receive shares of
Common Stock, monetary payments or both in accordance with the terms
of this Plan. An Incentive may be granted in the form of stock options,
restricted stock and performance shares, or any combination thereof.
2.11 "Participant" means an Employee granted an Incentive
under this Plan.
2.12 Other Definitions. The terms "stock option" and "option"
are defined in Section 6.1 hereof; the term "disinterested person" is
defined in Section 3.1 hereof; the term "incentive stock option" is defined
in Section 6.3 hereof; the term "restricted stock" is defined in Section 7.1
hereof; and the term "performance share" is defined in Section 8.1 hereof.
<PAGE>
SECTION 3
ADMINISTRATION
3.1 Composition. The Plan shall be administered by a
committee appointed by the Board of Directors of the Corporation, which
committee shall consist of three or more directors who are "disinterested
persons" within the meaning of Rule 16b-3 promulgated under the Act.
For this purpose, the term "disinterested person" means a person who has
not been granted or awarded Incentives under this Plan or any other
program or arrangement providing for the discretionary grant of
stock-related compensation maintained by the Corporation or the Bank
during (a) the period in which he or she serves as a member of the
Committee, and (b) the one-year period immediately preceding such
service.
3.2 Power and Authority. The Committee shall have the
discretionary power and authority to award Incentives under the Plan, to
interpret the provisions of the Plan, to establish rules and regulations
relating to the Plan, and to make any other determinations which it
believes necessary or advisable for the proper administration of the Plan.
Decisions, interpretations and actions of the Committee concerning
matters related to the Plan shall be final and conclusive on the
Corporation, the Bank and Participants. The Committee's determinations
under the Plan need not be uniform, and the Committee may make
determinations selectively among the Participants who receive or are
eligible to receive Incentives, whether or not such Participants are
similarly situated.
3.3 Hold Harmless. The Corporation shall indemnify and hold
harmless the members of the Committee and individuals, including
Employees of the Corporation or the Bank, performing services on behalf
of the Committee, against any liability, cost or expense arising as a result
of any claim asserted by any person or entity under the laws of any state
or of the United States with respect to any action or failure to act of such
individuals taken in connection with the Plan, except claims or liabilities
arising on account of the willful misconduct or bad faith of any such
individual.
SECTION 4
ELIGIBILITY
Employees of the Corporation, the Bank or any Affiliate
participating hereunder, but excluding directors of the Corporation, the
Bank or any Affiliate who are not also Employees, shall be eligible to
receive Incentives under this Plan, when designated by the Committee.
Employees may be designated individually or by groups or categories, in
the discretion of the Committee.
<PAGE>
SECTION 5
SHARES SUBJECT TO THE PLAN
5.1 Number of Shares. Subject to adjustment as provided in
Section 9.6, hereof, the number of shares of Common Stock which may
be issued under the Plan shall not exceed 40,000 shares. Except as
provided in this Section 5, the number of shares available for grant,
transfer or issuance under the Plan shall be reduced by the number of
shares actually granted, transferred, or issued hereunder, from time to
time.
5.2 Type of Common Stock. Common Stock issued under this
Plan in connection with the grant or award of an Incentive may be
authorized and unissued shares or issued shares held as treasury shares or
shares acquired on the open market.
5.3 Cancellation. Shares of Common Stock covered by
Incentives which are not earned or which are forfeited or terminated for
any reason and options which expire unexercised or which are exchanged
for other options or Incentives, shall again be available for grant as an
Incentive under the Plan.
SECTION 6
STOCK OPTIONS
6.1 Special Definition. The term "stock option" or "option"
means a right to purchase shares of Common Stock from the Corporation.
Stock options granted hereunder may be nonstatutory or nonqualified stock
options or incentive stock options within the meaning of Section 422 of
the Code. All stock options shall comply with the provisions of Section
6.2 hereof, and incentive stock options shall also comply with the
provisions of Section 6.3 hereof.
6.2 General Provisions. All stock options granted under this
Plan shall be granted by the Committee, in its discretion, subject to the
following general terms and conditions:
a. The number of shares of Common Stock subject to an
option shall be determined by the Committee at the time of
grant.
b. The option price per share shall be determined in the
discretion of the Committee.
c. Subject to earlier termination as provided in Section 9.4
hereof, the term of each stock option shall be determined
by the Committee.
d. Each stock option shall be exercisable at such time or times
during its term as shall be determined by the Committee;
provided, however, that no option shall be exercisable
earlier than six months and one day or later than ten years
from the date of grant.
<PAGE>
e. Stock options granted hereunder shall be evidenced by a
written agreement between the Committee and each
Participant. Any such agreement shall identify the grant of
the option as an incentive stock option or a nonstatutory or
nonqualified stock option.
6.3 Incentive Stock Options. The term "incentive stock option"
means a stock option which is subject to the provisions of Section 422 of
the Code. In addition to the provisions of Section 6.2 hereof, each
incentive stock option shall be subject to the following provisions:
a. The aggregate Fair Market Value (determined as of the
time the option is granted) of the shares of Common Stock
with respect to which incentive stock options are
exercisable for the first time by any Participant during any
calendar year (under all plans of the Corporation), shall not
exceed $100,000. If and to the extent Fair Market Value
exceeds $100,000, the incentive stock option shall be
treated as a nonstatutory stock option.
b. The option price per share shall not be less than Fair
Market Value as of the date of grant.
c. Any certificate or agreement evidencing an incentive stock
option granted under the Plan shall contain such other
provisions as the Committee shall deem advisable, but shall
in all events be consistent with and contain all provisions
required in order to qualify the options as incentive stock
options under Section 422 of the Code.
d. Incentive stock options must be granted within ten years
from the date on which this Plan is adopted.
e. Unless sooner exercised, all incentive stock options shall
expire no later than ten years after the date of grant.
f. No incentive stock option shall be granted to any
Participant who at the time such option is granted would
own (within the meaning of Section 422 of the Code) stock
possessing more than ten percent of the total combined
voting power of all classes of stock of the Corporation,
determined in accordance with Section 422(b)(6) of the
Code.
g. No incentive stock option shall be granted to any
Participant who is not an Employee (within the meaning of
Section 3401 of the Code) of the Corporation or its
Subsidiaries during the period described under Section
422(a)(2) of the Code.
<PAGE>
6.4 Manner of Exercise. A stock option may be exercised, in
whole or in part, by giving written notice to the Committee, specifying the
number of shares of Common Stock to be purchased and accompanied by
the full purchase price for such shares.
The option price may be paid by cash, check, bank draft, by
delivery of shares of Common Stock in payment of all or any part of the
option price, which shares shall be valued for this purpose at the Fair
Market Value on the date such option is exercised, or in such other
manner as may be authorized, from time to time, by the Committee.
The Committee may permit any Participant or group of Participants
to exercise stock options and sell the shares of Common Stock acquired
thereby pursuant to a brokerage or similar arrangement, approved in
advance by the Committee, and use the proceeds of any such sale as
payment of the purchase price of the shares.
6.5 Equity Maintenance. If a Participant, while an Employee
of the Corporation or the Bank, pays the option price by delivery of
previously owned shares of Common Stock, the Committee, in its
discretion, may grant to such Participant an additional option to purchase
the number of shares of Common Stock delivered by the Participant to pay
the option price. Any such additional option granted by the Committee
shall be exercisable at Fair Market Value determined as of the date on
which such additional option is granted.
6.6 Rights as Stockholder. Prior to the issuance of shares of
Common Stock upon the exercise of a stock option, a Participant shall
have no rights as a stockholder with respect to the shares subject to such
option.
SECTION 7
RESTRICTED STOCK
7.1 Special Definition. The term "restricted stock" means
shares of Common Stock which are sold or transferred by the Corporation
to a Participant at a price which may be below Fair Market Value, or for
no payment, but subject to restrictions on sale or other transfer by the
Participant.
7.2 General Provisions. The Committee may grant shares of
restricted stock, in its discretion, subject to the following terms and
conditions:
a. The number of shares to be transferred or sold by the
Corporation to a Participant as restricted stock shall be
determined by the Committee.
b. The Committee shall determine the price, if any, at which
shares of restricted stock shall be sold, which may vary
from time to time and which may be below the Fair Market
Value of such shares as of the date of sale.
<PAGE>
c. All shares of restricted stock transferred or sold hereunder
shall be subject to such terms, conditions and restrictions
for such period or periods as the Committee, in its
discretion, may determine (including restrictions on
transfer, forfeiture provisions and performance earnouts);
provided, however, that no shares of restricted stock may
be sold or transferred by any Participant for a period of at
least six months and one day from the date of the grant.
d. Each grant of restricted stock hereunder shall be evidenced
by a written agreement.
7.3 Enforcement of Restrictions. In order to enforce the
restrictions imposed by the Committee pursuant to Section 7.2 hereof, a
Participant receiving restricted stock shall enter into an agreement with the
Corporation setting forth the conditions of the grant. Each certificate
issued with respect to restricted shares shall bear such legends as the
Committee, in its sole discretion, shall deem necessary or appropriate.
The Committee, in its discretion, may require that shares of restricted
stock registered in the name of the Participant be deposited, together with
a stock power endorsed in blank, with the Corporation during any period
in which shares are subject to restriction.
7.4 Lapse of Restrictions. Subject to Section 9.5 hereof, at the
end of any period during which the shares of restricted stock are subject
to forfeiture or restrictions on transfer, such shares shall be delivered free
of restriction to the Participant or to the Participant's legal representative,
beneficiary or heir, as the case may be.
7.5 Shareholder Rights. Subject to the terms and conditions of
the Plan, each Participant receiving restricted stock shall have all the
rights of a stockholder with respect to such shares during any period in
which the shares are subject to forfeiture or restriction on transfer,
including without limitation, the right to vote such shares. Dividends paid
in the form of cash or property with respect to shares of restricted stock
shall be paid to the Participant currently (or if made available by the
Corporation and at the election of the Participant, reinvested under a
stockholder investment service). Shares purchased with reinvested
dividends shall not be restricted.
SECTION 8
PERFORMANCE SHARES
8.1 Special Definition. The term "performance share" means
the right to receive or purchase (at a price which may be below Fair
Market Value) Common Stock upon the completion of certain performance
objectives.
<PAGE>
8.2 General Provisions. The Committee may grant performance shares,
in its discretion, subject to the following terms and conditions:
a. The number of shares granted to a Participant shall be
determined by the Committee.
b. Each performance share shall be subject to performance
objectives established by the Committee. Performance
objectives may relate to the Corporation, an Affiliate or
any Participant or group of Participants. Such performance
objectives shall be achieved during the period designated by
the Committee.
c. All performance shares shall be subject to such additional
restrictions for such period or periods as the Committee, in
its discretion, may determine; provided, however, that any
Participant subject to Section 16 of the Act shall be
prohibited from selling or transferring performance shares
for a period of at least six months and one day beginning
on the date of grant.
d. The Committee, in its discretion, may establish a purchase
price for the acquisition of shares of Common Stock upon
the completion of the performance objectives, which price
may be below Fair Market Value.
e. Each grant of performance shares shall be evidenced by a
written agreement between the Committee and each
affected Participant.
8.3 Satisfaction of Performance Objectives. If the performance
objectives designated by the Committee are achieved, each affected
Participant shall be paid the number of shares of Common Stock equal to
the number of performance shares initially granted to that Participant or
shall acquire the right to purchase Common Stock at a price designated by
the Committee, which price may be below Fair Market Value. If such
objectives are not satisfied due to circumstances that, in the determination
of the Committee, are outside the control of the Corporation or the
Participant, the Committee, in its discretion, may provide for payment in
full of the Incentive, lesser payment or cancellation.
8.4 Not a Stockholder. The award of performance shares shall
not entitle a Participant to exercise the rights of a stockholder of the
Corporation with respect to such shares, until the transfer of shares of
Common Stock with respect to such award.
8.5 No Adjustments. Except as provided in Section 9.6 hereof,
no adjustment shall be made in performance shares awarded to account for
cash dividends paid or other rights issued to the holders of Common Stock
prior to the end of any period with respect to which performance
objectives are applicable.
<PAGE>
SECTION 9
GENERAL
9.1 Adoption and Effective Date. This Plan will become effective
upon its approval, if, at a meeting of the Company's shareholders, the
votes cast in favor of the Plan exceed the votes cast against the Plan.
Unless approved within one year after the date of the Plan's adoption by
the Board of Directors of the Corporation, the Plan shall not be effective
for any purpose. Prior to the approval of the Plan by the shareholders of
the Corporation, the Committee may award Incentives hereunder, but if such
approval is not received in the specified period, then such awards shall be
void and of no effect.
9.2 Duration. The Plan shall remain in effect until all
Incentives granted under the Plan have been satisfied by the issuance of
shares of Common Stock or terminated under the Plan and all restrictions
imposed on shares of Common Stock in connection with their issuance
under the Plan have lapsed. No Incentive shall be granted under the Plan
after the tenth anniversary of the date on which the Plan is approved by
the Corporation's stockholders.
9.3 Transferability of Incentives. No Incentive granted
hereunder may be transferred, pledged, assigned or otherwise encumbered
by the holder thereof whether by operation of law or otherwise and
whether voluntarily or involuntarily (except in the event of the holder's
death by will or the laws of descent and distribution) and neither the
Committee nor the Corporation shall be required to recognize any
attempted assignment of such rights by any Participant. During a
Participant's lifetime, an Incentive may be exercised only by the
Participant or by the Participant's guardian or legal representative.
9.4 Effect of Termination of Employment. In the event that a
Participant ceases to be an Employee of the Corporation, the Bank or an
Affiliate on account of death, disability, retirement or a voluntary or
involuntary termination, other than for cause (as defined below), an
Incentive may be exercised or shall expire at such times as may be
determined by the Committee; provided, however, that any extension of
the exercise term shall not exceed the original exercise term of the
Incentive.
If a Participant's employment with the Corporation, the Bank or
an Affiliate is terminated for "cause," all rights of such Participant under
any Incentive shall expire or shall be forfeited, upon receipt by such
Participant of notice of termination. In the event of a forfeiture, stock
certificates representing such restricted stock shall be returned to the
Corporation. For this purpose, the term "cause" shall mean fraud,
misappropriation of or intentional material damage to the property or
business of the Corporation, the Bank or an Affiliate or the commission
of a felony by a Participant.
<PAGE>
9.5 Additional Legal Requirements. The obligation of the
Corporation or any of its Affiliates to sell or deliver Common Stock to
any Participant under this Plan shall be subject to all applicable laws,
regulations, rules and approvals deemed necessary or appropriate by the
Corporation. Certificates for shares of Common Stock issued pursuant to
this Plan may be legended as the Committee shall deem appropriate.
9.6 Adjustment. In the event of any merger, consolidation or
reorganization of the Corporation with any other corporation or
corporations, there shall be substituted for each of the shares of Common
Stock then subject to the Plan the number and kind of shares of stock or
other securities to which the holders of the shares of Common Stock will
be entitled pursuant to the transaction.
In the event of any recapitalization, stock dividend, stock split,
combination of shares or other change in the Common Stock, the number
of shares of Common Stock then subject to the Plan shall be adjusted in
proportion to the change in outstanding shares of Common Stock. In the
event of any such substitution or adjustment, the purchase price of any
option, the performance objectives of any Incentive, and the shares of
Common Stock issuable pursuant to any Incentive shall be adjusted to the
extent appropriate, in the discretion of the Committee and except as
provided herein, to provide Participants with the same relative rights
before and after such adjustment.
9.7 Written Agreements. The terms of each Incentive shall be
stated in a plan or agreement approved by the Committee. Neither the
Committee nor the Corporation shall be required to grant any Incentive
hereunder to any Participant, unless such Participant executes such
agreements or provides representations as the Committee deems
appropriate.
9.8 Withholding. The Corporation shall have the right to withhold
from any payment made under the Plan or to collect as a condition of payment,
any taxes required by law to be withheld.
A Participant required to pay to the Corporation an amount required
to be withheld under applicable income tax laws in connection with a
distribution of Common Stock may satisfy this obligation, in whole or in
part, by electing (a "tax election") to have the Corporation withhold
from the distribution shares of Common Stock having a value equal to the
amount required to be withheld. The value of the shares to be withheld
shall be based on the Fair Market Value on the date that the amount of tax
to be withheld shall be determined (the "tax date"). The Committee may
disapprove of any such election, may suspend or terminate the right to
make elections or may provide with respect to any Incentive that the right
to make elections shall not apply. Once delivered to the Committee, an
election shall be irrevocable. If a Participant is subject to Section 16 of
the Act, then the following rules shall apply:
a. No tax election shall be effective for a tax date which
occurs within six months of the transfer of Common Stock
hereunder, except that such limitations shall not apply in
the event of the death or disability of a Participant; and
<PAGE>
b. The tax election must be made, in writing, six months prior
to the tax date or must be made during any period
beginning on the third business day following the date of
release for publication of the Corporation's quarterly or
annual summary statements of earnings and ending on the
twelfth business day following such date.
9.9 No Continued Employment. No Participant under the Plan shall
have any right to continue in the employ of the Corporation or an Affiliate
for any period of time or to any right to continue his or her present or
any other rate of compensation on account of participation in the Plan.
9.10 Termination of Plan. The Board of Directors of the Corporation,
upon written notice to all Participants and the Plan Committee, shall have
the right, at any time, to terminate this Plan. Such termination shall
become effective when authorized by the Board of Directors of the Corporation
and when written notice is given to all Participants.
9.11 Amendment. The Board of Directors of the Corporation
may amend the Plan at any time to cause the Plan to comply with the
requirements of Rule 16b-3 of the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.
Otherwise, no amendment or discontinuance by the Board of Directors
shall change, impair or adversely affect shares of Common Stock
previously transferred to any Participant without such Participant's prior
consent. Further, no such amendment shall (a) increase the maximum
number of shares of Common Stock which may be issued to all or any
Participant under the Plan, (b) change or expand the types of awards
granted under the Plan, (c) change the class of persons eligible to receive
awards under the Plan, or (d) materially increase the benefits accruing to
Participants under the Plan, without the consent of the shareholders of the
Corporation.
9.12 Immediate Acceleration of Incentives. Notwithstanding any
provision in the Plan or in any Incentive to the contrary and subject to any
limitation imposed with the Act, (a) the restrictions on all shares of
restricted stock awarded under the Plan shall immediately lapse, (b) all
outstanding options shall become exercisable immediately, (c) all credits
to phantom share accounts shall be immediately distributable, and (d) all
performance objectives or other restrictions on Incentives granted under
the Plan shall be deemed to be satisfied or lapsed and payment made
immediately, upon the occurrence of a Change in Control.
9.13 Governing Law. The Plan and any Incentive granted under
the Plan shall be governed by the laws of the State of Mississippi.
9.14 Other Benefits. Incentives granted to a Participant under
the terms of the Plan shall not impair or otherwise reduce such
Participant's compensation, life insurance or other benefits provided by
the Corporation, the Bank or an Affiliate; provided, however, that the
value of Incentives shall not be treated as compensation for purposes of
computing the value or amount of any such benefit.
<PAGE>
THIS PLAN was adopted by the Board of Directors of Britton &
Koontz Capital Corporation as of April 12, 1996, and approved by the
shareholders on May 16, 1996, to be effective as of the time determined
under Section 9.1, hereof.
<PAGE>
BRITTON & KOONTZ CAPITAL CORPORATION
By: /s/ W. Page Ogden
_______________________________
Its: President
_______________________________
BRITTON & KOONTZ CAPITAL CORPORATION
LONG-TERM INCENTIVE PLAN
AMENDMENT NO. 1
WHEREAS, Britton & Koontz Capital Corporation, a corporation
organized and existing under the laws of the State of Mississippi (the
"Corporation"), adopted the Britton & Koontz Capital Corporation Long-
Term Incentive Plan, to be first effective as of May 16, 1996 (the "Plan");
WHEREAS, Section 9.11 of the Plan provides that the Board of
Directors of the Corporation possess the right to amend the Plan to
comply with the provisions of Rule 16b-3 of the Securities Exchange Act
of 1934, as amended;
WHEREAS, effective as of November 1, 1996, Rule 16b-3 was
amended to modify, among other things, the class of persons authorized
to administer the Plan;
NOW, THEREFORE, effective as of January 21, 1997, the Plan
shall be amended as follows:
I.
Section 3.1 of the Plan shall be amended and restated in its entirety
as follows:
The Plan shall be administered by a committee appointed
by the Board of Directors of the Corporation, which
committee shall consist of at least two "non-employee
directors" within the meaning of Rule 16b-3 promulgated
under the Act. For this purpose, a "non-employee
director" means a person who (a) is not currently an officer
or employee of the Corporation or its Affiliates, (b) does
not receive compensation, directly or indirectly, from the
Corporation or an Affiliate for services rendered in a
capacity other than as a director, except for compensation
not in excess of the dollar amount for which disclosure is
required pursuant to section 229.404(a) of Regulation S-K
promulgated under the Securities Act of 1933 ("Regulation
S-K"), (c) is not engaged in a business relationship with the
Corporation or its Affiliates with respect to which
disclosure is required under section 229.404(b) of Regulation
S-K, and (d) does not possess an interest in any other
transaction with respect to which disclosure would be
required under section 229.404(a) of Regulation S-K.
<PAGE>
THIS AMENDMENT NO. 1 was executed this 21st day of January, 1997,
to be effective as of the date written above.
BRITTON & KOONTZ CAPITAL CORPORATION
By: /s/ W. Page Ogden
_______________________________
Its: President
_______________________________
EXHIBIT 5
[PHELPS DUNBAR LETTERHEAD]
January 29, 1997
Britton & Koontz Capital Corporation
500 Main Street
Natchez, Mississippi 39120
Re: Britton & Koontz Capital Corporation
Registration Statement on Form S-8
Ladies and Gentlemen:
We have acted as counsel to Britton & Koontz Capital Corporation,
a Mississippi corporation (the "Company"), in connection with the
Company's filing of a Registration Statement on Form S-8 (the
"Registration Statement") with the Securities and Exchange Commission
(the "Commission"), pursuant to the Securities Act of 1933, as amended
(the "Act"). The Registration Statement relates to the registration by the
Company of an aggregate of 40,000 shares of its common stock, $10.00
par value (the "Shares"), to be offered and sold pursuant to the terms of
the Britton & Koontz Long-Term Incentive Plan (the "Plan").
As counsel to the Company, we have examined original,
photostatic or certified copies of the following documents: (i) the
Registration Statement, (ii) the Articles of Incorporation of the Company,
as amended, (iii) the By-laws of the Company, as amended, (iv) the
Plan, (v) certificates of the Company's officers and excerpts of
minutes of meetings of the Board of Directors, and (vi) such other
instruments, agreements, and certificates as we have deemed necessary or
appropriate.
In performing our examination, we have assumed without inquiry
the genuineness of all signatures appearing on all documents, the legal
capacity of all persons signing such documents, the authenticity of all
documents submitted to us as originals, the conformity with originals of
all documents submitted to us as copies, the accuracy and completeness
of all corporate records made available to us by the Company, and the
truth and accuracy of all facts set forth in all certificates provided to or
examined by us. We have also assumed that all Shares issued pursuant to the
Plan will be issued for consideration deemed to be adequate by the Company's
Board of Directors. We have relied as to certain factual matters on
representations made to us by officers of the Company.
<PAGE>
Based upon the foregoing and the further qualifications stated
below, we are of the opinion that the Shares have been duly authorized
and, when issued and sold pursuant to the terms and conditions of the
Plan, will be validly issued, fully paid and nonassessable.
The foregoing opinion is limited to the laws of the State of
Mississippi and the federal laws of the United States of America. We
express no opinion as to matters governed by the laws of any other
jurisdiction. Furthermore, no opinion is expressed herein as to the effect
of any future acts of the Company or changes in existing law. The
opinions expressed herein are rendered as of the date hereof, and we do
not undertake to advise you of any changes after the date hereof in the law
or the facts presently in effect that would alter the scope or substance of
the opinion herein expressed.
This letter expresses our legal opinion as to the foregoing matters
based on our professional judgment at this time; it is not, however, to be
construed as a guaranty, or a warranty that a court considering such
matters would not rule in a manner contrary to the opinion set forth
above.
We hereby consent to the filing of this opinion with the
Commission as an exhibit to the Registration Statement. In giving this
consent, we do not admit that we are within the category of persons whose
consent is required under Section 7 of the Act or the General Rules and
Regulations of the Commission thereunder.
Very truly yours,
/s/ Phelps Dunbar, L.L.P.
PHELPS DUNBAR, L.L.P.
EXHIBIT 23.1
[May & Company letterhead]
We consent to the incorporation by reference in this registration statement
on Form S-8 of our report dated January 25, 1996, on our audits of the
consolidated financial statements of Britton & Koontz Capital Corporation
and Subsidiary as of December 31, 1995 and 1994 and for each of the years
then ended, which report is included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 1995.
/s/ May & Company
Vicksburg, Mississippi
January 29, 1997
