**Exhibit 3.1**

 

**AMENDED AND RESTATED BYLAWS**

 

**OF**

 

**THE PBSJ CORPORATION**

 

**ARTICLE I**

 

**DEFINITIONS**

 

As used in these Bylaws, unlessthe context otherwise required, the term: 

 

“Affiliate” means a person or group of people that is controlled by or in common control with, the Corporation. 

 

“Board” means the Board of Directors of the Corporation. 

 

“Bylaws” means the restated and amended bylaws of the Corporation, as further amended from time to time.

 

“Articles of Incorporation” means the initialarticles of incorporation of the Corporation, as amended, supplemented or restated from time to time. 

 

“Corporation” means The PBSJ Corporation, a Florida corporation. 

 

“General Corporation Act” means the General Corporation Act of the State of Florida, as amended from time to time.

 

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“Principal Office” means the Corporation’s principal headquarters or any other placewithin or without the State of Florida as the Board may designate from time to time. 

 

“Shareholders” means the shareholders of the Corporation. 

 

**ARTICLE II**

 

**MEETING OF SHAREHOLDERS**

 

**Section 1. Annual Meeting.**Theannual meeting of the Shareholders of this Corporation shall be held annually, within 120 days after the end of the Corporation’s fiscal year, on such date and at such time and place as may be designated by the Board. Business transacted at theannual meeting shall include the election of directors of the Corporation. 

 

**Section 2. Special Meetings.** Special meetings of the Shareholders shall be held when directed by the President or the Board, or when requested in writing by the holders of not less than 10% of all the shares entitled to vote at suchmeetings. A meeting requested by Shareholders shall be called for a date not less than ten nor more than sixty days after the request is made unless the Shareholders requesting the meeting designate a later date; provided, that a meeting called byunanimous request of all Shareholders may be held at any time to which they agree. The call for the meeting shall be issued by the Secretary, unless the President, Board of Directors, or Shareholders requesting the calling of the meeting shalldesignate another person to do so. 

 

**Section 3. Place.** Meetings ofShareholders shall be held at the Principal Office of the Corporation or at any other place designated by the Board. 

 

**Section 4.** Fixing Record Date. For the purpose of determining Shareholders entitled to notice of, or to vote at, any meeting of Shareholders or any adjournmentthereof, or to express consent to corporate action in writing without a meeting, or for the purpose of determining Shareholders entitled to receive payment of any dividend or the allotment of any rights, or entitled to exercise 

 

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any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board may fix, in advance, a date asthe record date for any such determination of Shareholders. Such date shall not be more than 60 nor less than 10 days before the date of such meeting. 

 

**Section 5. Notice.**Written notice stating the place, day and hour of the meeting and, in the case of a special meeting of Shareholders, the purpose or purposes forwhich the meeting is called, shall be delivered not less than 10 nor more than 60 days before the meeting, either personally or by first class mail, electronic mail by or at the direction of the President, the Secretary or the officer or personscalling the meeting to each Shareholder of record entitled to vote at the meeting. If the notice is mailed at least 30 days before the date of the meeting, it may be done by a class of United States mail other than first class or electronically. Ifmailed, notice shall be deemed delivered when deposited in the United States mail addressed to the Shareholder at his address as it appears on the stock transfer books of the Corporation, with postage thereon prepaid and return receipt requested. Ifnotice is given by electronic mail, it shall be deemed delivered when opened. 

 

**Section 6. Notice of Adjourned Meeting.** When a meeting is adjourned to another time or place, it shall not be necessary to give any notice of the adjourned meeting, provided that the time and place to which the meeting is adjournedare announced at the meeting at which the adjournment is taken, and any business which might have been transacted on the original date of the meeting may be transacted at the adjourned meeting. If, however, after the adjournment the Board fixes anew record date for the adjourned meeting, a notice of the adjourned meeting shall be given as provided in this Article to each Shareholder of record on the new record date entitled to vote at such meeting. 

 

**Section 7. Shareholder Quorum and Voting**. A majority of the shares entitled to vote,represented in person or by proxy, shall constitute a quorum at a meeting of Shareholders. 

 

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If a quorum is present, the affirmative vote of a majority of the shares represented at the meeting andentitled to vote on the subject matter shall be the act of the Shareholders unless otherwise provided by law. 

 

**Section 8. Voting of Shares.** Each outstanding share of common stock shall be entitled to one vote on each matter submitted to a vote at a meeting of Shareholders. 

 

**Section 9. Proxies**. A Shareholder may vote either in person or by proxy executed inwriting by the Shareholder or his duly authorized attorney-in-fact. No proxy shall be valid after the duration of 11 months from the date thereof unless otherwise provided in the proxy. 

 

**Section 10. Action by Shareholders Without a Meeting.** Any action required by law, these Bylaws, or the Articles of Incorporation ofthis Corporation to be taken at any annual or special meeting of Shareholders, or any action which may be taken at any annual or special meeting of Shareholders, may be taken without a meeting, without prior notice and without a vote, if a consentin writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled tovote thereon were present and voted, as is provided by law. 

 

Within 10 days after obtaining such authorization by written consent, notice shall be given to those Shareholders who have not consented in writing. The notice shall fairly summarize the material features of the authorized action, as isprovided by law. 

 

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**ARTICLE III**

 

**DIRECTORS**

 

**Section 1. Function.** All corporate powers shall be exercised by or under the authority of, and the business and affairs of the Corporation shall be managed underthe direction of the Board. 

 

**Section 2. Qualification.** Directors neednot be residents of Florida. A majority of the Directors shall be Shareholders of this Corporation and full-time employees of the Corporation or its Affiliates. 

 

**Section 3. Presumption of Assent.**A director of the Corporation who is present at a meeting of the Board at which action on any corporate matter is taken ispresumed to have assented to the action taken unless he votes against such action or abstains from voting in respect thereto because of an asserted conflict of interest. 

 

**Section 4. Number.** This Corporation shall have at least five Directors. The number of directors shall be determined from time to timeby the Board. 

 

**Section 5. Election and Terms.**At each annual meeting,the Shareholders shall elect directors to hold office until the next succeeding annual meeting. Each director shall hold office for a term to which he is elected and until his successor shall have been elected and qualified or until his earlierresignation, removal from office or death. 

 

**Section 6. Chairman and ViceChairman.** The Board shall choose, from among its members, a Chairman, who shall preside at all Shareholder meetings and all Board meetings. The Chairman shall serve as the agent for the directors in all matters falling within the scope of theresolutions adopted by the directors, and he shall have such other duties as are provided by the Bylaws or by resolution of the Board unless otherwise specified by resolution of the Board. He shall serve as Chairman until a successor is chosen oruntil his earlier death, resignation or removal. 

 

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The Board shall choose, from among its members, a Vice Chairman who shall have the same powers and dutiesas the Chairman in the Chairman’s absence. 

 

**Section 7.Compensation.** The Board shall have the authority to fix the compensation of directors. Nothing contained in this Section shall preclude any director from serving the Corporation or any Affiliate thereof in any other capacity and receiving propercompensation therefor. 

 

**Section 8. Vacancies.** Any vacancies occurring inthe Board, including any vacancy created by reason of an increase in the number of directors, may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum of the Board. A director elected to fill a vacancyshall hold office only until the next election of directors by the Shareholders. If there are no remaining directors, the vacancy shall be filled by the Shareholders. 

 

**Section 9. Resignation; Removal of Directors.** Any director may resign at any time by written notice to the Corporation. Suchresignation shall take effect at the time specified therein, and, unless otherwise specified, the acceptance of such resignation shall not be necessary to make it effective. 

 

At a meeting of Shareholders called expressly for that purpose, any director or the entire Board may be removed, with orwithout cause, by a vote of the holders of a majority of the shares then entitled to vote at an election of directors. 

 

**Section 10. Quorum and Voting.** A majority of the number of directors fixed by these Bylaws shall constitute a quorum for the transaction of business. The act of amajority of Directors present at a meeting where a quorum is present shall be the act of the Board. 

 

**Section 11. Executive and Other Committees.** The Board may, by resolution adopted by a 

 

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majority of the full Board, designate from among its members an executive committee and one or more other committees each of which, to the extent provided insuch resolution, shall have and may exercise all the authority of the Board, except as provided by law. 

 

**Section 12. Annual Meetings**. The Board shall hold an annual meeting for purposes of the election of officers and the transaction of other business. The annual meeting of the Board shall be held at such time andplace as is specified in a notice given as provided in Section 14 of Article III of the Bylaws for special meetings of the Board or in a waiver of notice thereof. When practicable, such meetings shall be held on the day when and at the place wherethe annual meeting of Shareholders for the election of directors is held. 

 

**Section 13. Place of Meeting.** Regular and special meetings of the Board shall be held at the Principal Office of the Corporation or at such other place as may be designated by the person or persons giving notice or otherwise callingthe meeting. 

 

**Section 14. Time of Meeting.** Regular meetings of the Boardshall be held without notice at the time and on the date designated by resolution of the Board. Written notice of the time and place of special meetings of the Board shall be given to each director by personal delivery, telegram or cablegram atleast two (2) days before the meeting. 

 

Notice of a meeting ofthe Board need not be given to any director who signs a waiver of notice either before or after the meeting. Attendance of a director at a meeting shall constitute a waiver of notice of that meeting and waiver of any and all objections to the placeof the meeting, the time of the meeting, or the manner in which it has been called or convened, except when a director states, at the beginning of the meeting, objection to the transaction of business because the meeting is not lawfully called orconvened. 

 

Neither the business to be transacted at, nor thepurpose of, any regular or special meeting of the Board need be specified in the notice or waiver of notice of the meeting. 

 

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A majority of the directors present, whether or not a quorum exists, may adjourn any meeting of the Boardto another time and place. Notice of any adjourned meeting shall be given to the directors who were not present at the time of the adjournment and, unless the time and place of the adjourned meeting are announced at the time of the adjournment, tothe other directors. 

 

Meetings of the Board may be called bythe Chairman, the President of the Corporation or by any two directors. 

 

Members of the Board (or any committee thereof) may participate in a meeting of the Board (or committee) by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting canhear each other at the same time. Participation by such means shall constitute presence in person at a meeting. 

 

**Section 15. Action Without a Meeting.** Any action required to be taken at a meeting of the Board, or any action which may be taken at a meeting of the Board or acommittee thereof, may be taken without a meeting if a consent in writing, setting forth the action so to be taken and signed by all the directors or all the members of the committee, as the case may be, is filed in the minutes of the proceedings ofthe Board or of the committee. This consent shall have the same effect as a unanimous vote. 

 

**ARTICLE IV**

 

**OFFICERS**

 

**Section 1. Officers.**The officers of this Corporation shall consistof a Chairman, President, 

 

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such number of Vice Presidents as the Board may designate, a Secretary, a Treasurer and such other officers as the Board may determine. Such other officersand assistant officers and agents as may be deemed necessary may be elected or appointed by the Board from time to time. Any two or more offices may be held by the same person, except that the President may not also be the Secretary or an AssistantSecretary. 

 

**Section 2. Compensation.** Salaries or other compensation ofthe officers may be fixed from time to time by the Board. No officer shall be prevented from receiving a salary or other compensation by reason of the fact that he is also a director. 

 

**Section 3. Chairman.** The Chairman of the Board shall have such duties as may be specifically assigned to him by the Board from timeto time. The Chairman shall preside at all meetings of the Board and of the Shareholders of the Corporation. 

 

**Section 4. President.** The President shall have the general and active management of the business of the Corporation, and shall perform such duties as the Board may from time to time prescribe. 

 

**Section 5. Vice-President.** The Vice-President or the Executive Vice President shall bethe chief operating officer and shall have the same powers and duties as the President in the event the President is absent or otherwise incapacitated. 

 

**Section 6. Secretary.** The Secretary shall have the custody of and shall maintain all of the corporate records except the financial records; shall record theminutes of all meetings of the Shareholders and Board; shall send out all notice of meetings; and perform such other duties as may be prescribed by the Board or President. 

 

**Section 7. Treasurer.** The Treasurer shall have custody of all corporate funds and financial 

 

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records; shall keep full and accurate accounts of receipts and disbursements and render accounts thereof at the annual meetings of the Shareholders andwhenever else required by the Board or President; and shall perform such other duties as may be prescribed by the Board or President. 

 

**Section 8. Removal of Officers**. An officer or agent elected or appointed by the Board may be removed by the Board whenever in its judgment the best interest of theCorporation will be served thereby. 

 

**ARTICLE V**

 

**STOCK CERTIFICATES**

 

**Section 1. Issuance**. Every holder of shares in this Corporation shall be entitled tohave a certificate representing all shares to which he is entitled. No certificate shall be issued for any share until the share is fully paid. 

 

**Section 2. Form.**Certificates representing shares in this Corporation shall be signed by the President or any Vice President, if any, and the Secretary or anyAssistant Secretary, if any, and may be sealed with the seal of this Corporation or a facsimile thereof. The signatures of the officers upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent orregistrar other than the Corporation itself or an employee of the Corporation. 

 

**Section 3. Transfer of Stock.** The Corporation shall register a stock certificate presented to it for transfer if the certificate is properly endorsed by the holder of record or by his duly authorized attorney. 

 

**Section 4. Lost, Stolen, or Destroyed Certificates.**If a Shareholder shall claim tohave lost or destroyed a certificate of shares issued by the Corporation, or that such certificate has been 

 

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stolen, a new certificate shall be issued upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen ordestroyed, and, at the discretion of the Board, upon the deposit of a bond or other indemnity in such amount and with such sureties, if any, as the Board may reasonably require. 

 

**Section 5. Failure to Surrender Certificates.** When a Shareholder is required to surrender his/her stock certificate(s) for redemptionas provided in these by-laws, it shall be done within 30 days of the triggering event unless otherwise approved by the Board. The redemption price for such shares shall be the established per share price at the time of the triggering event. If afternotice to the Shareholder by certified mail or is equivalent, the Shareholder fails to surrender said certificate(s), the Corporation may redeem said shares or arrange for the shares to be purchased by other parties as provided in these by-laws.

 

**ARTICLE VI**

 

**BOOKS AND RECORDS**

 

**Section 1. Books and Records.** This Corporation shall keep correct and complete booksand records of account and shall keep minutes of the proceedings of its Shareholders, Board and committees of directors. 

 

This Corporation shall keep at its registered office or Principal Office a record of its Shareholders, giving the names and addresses of all Shareholdersand the number of the shares held by each. 

 

Any books, recordsand minutes may be in written form or in any other form capable of being converted into written form within a reasonable time. 

 

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**Section 2. Shareholders’ Inspection Rights.**Any person who shall have been a holder of record of one-quarterof one percent of the outstanding shares of the Corporation or of voting trust certificates therefor for at least six months immediately preceding his demand or shall be the holder of record of, or the holder of record of voting trust certificatesfor, at least five percent of the outstanding shares of the Corporation, upon written demand stating the purpose thereof, shall have the right to examine, in person or by agent or attorney, at any reasonable time or times, for any proper purpose itsrelevant books and records of accounts, minutes and records of Shareholders and to make extracts therefrom. 

 

**Section 3. Financial Information.** Unless modified by resolution of the Shareholders, not later than four months after the close of each fiscal year, this Corporation shall prepare a balance sheet showing inreasonable detail the financial condition of the Corporation as of the close of its fiscal year, and a profit and loss statement showing the results of the operations of the Corporation during its fiscal year. 

 

Upon the written request of any Shareholder or holder of voting trustcertificates for shares of the Corporation, the Corporation shall mail to such Shareholder or holder of voting trust certificates a copy of the most recent such balance sheet and profit and loss statement. 

 

The balance sheets and profit and loss statements shall be filed in theregistered office of the Corporation in Florida, shall be kept for at least five years, and shall be subject to inspection during business hours by any Shareholder or holder of voting trust certificates, in person or by agent. 

 

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**ARTICLE VII**

 

**DIVIDENDS**

 

The Board may from time to time declare, and the Corporation may pay, dividends on its shares in cash, property or its own shares, except when theCorporation is insolvent or when the payment thereof would render the Corporation insolvent, subject to the provisions of the General Corporation Act. 

 

**ARTICLE VIII**

 

**ISSUANCE, SALE AND REDEMPTION OF SHARES**

 

**Section 1. Issuance and Sale by Corporation; Authority/Consideration.**

 
 **a.****Issuance and Sale by Corporation; Authority.** The Board must approve the issuance and sale of all shares of the Corporation. Except as provided below, shares may be owned onlyby full-time or Part-Time Regular (PTR) employees of the Corporation and any Affiliate thereof, The PBSJ Employee Profit Sharing and Stock Ownership Plan and Trust, Part I of which is The PBSJ Employee Profit Sharing Plan and Trust and Part II ofwhich is The PBSJ Employee Profit Sharing and Stock Ownership Plan (ESOP), personal trusts of Shareholders if approved by the Board. The Board shall have the authority to permit a non-employee to own shares in the Corporation who is (i) a directorof the Corporation, or (ii) a spouse of an employee of the Corporation or any Affiliate, or (iii) a child of an employee of the Corporation or any Affiliate, provided that, at all times during the taxable year, ninety-five percent (95%) of theCorporation’s shares by value shall be held, directly or indirectly, by: (i) full time or Part-Time Regular employees performing services for the Corporation or an Affiliate, and (ii) retired employees who have performed services for theCorporation or an Affiliate or the estate of an employee who had performed such services. 
 

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A Part-Time Regular employee shall be one who works no less than 24 hours per work week. The total valueof a Part-Time Regular employee’s stock holdings may not exceed in value three times the Part-Time Regular employee’s annual stated salary. This amount shall be recalculated each December 31 to ensure current compliance. Once the highestpermissible value has been reached the Part-Time Regular employee may not purchase additional shares. If, upon the December 31 recalculation, the total value of his shares is greater than three times his stated salary, the Part-Time Regular employeemust sell sufficient shares to bring the value of his total holdings within the required limits. Such sale shall be during the annual stock offering window and redeemed according to the provisions of this Article VIII. 

 

In performing the December 31 calculation the Part-Time Regular employeeshall not include the value of shares held in The PBSJ Employee Profit Sharing and Stock Ownership Plan and Trust (Trust), The PBSJ Employee Profit Sharing and Stock Ownership Plan (ESOP), or any Restricted Shares awarded to such Part-Time Regularemployee. 

 

**b. Consideration.** The consideration for allsuch shares shall be determined as provided in Paragraph a. of Section 3 of this Article VIII. Unless otherwise approved by the Board, shares shall not be issued by the Corporation until the full amount of consideration therefore has been paid.

 

**Section 2. Redemption by Corporation**. 

 

**a. Rule**. Except as provided in paragraph b., below, of this Section2, when a 

 

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Shareholder’s full-time employment with the Corporation or an Affiliate thereof is reduced to part-time or terminated completely for any reasonwhatsoever, including death, or a Part-Time Regular employee’s employment is terminated, the Shareholder, his guardian, heirs, trustee, beneficiaries, or personal representative, as the case may be, shall be required to offer all of his sharesfor a price determined in accordance with paragraph a. of Section 3 hereof, upon the terms and conditions of Section 4 hereof. Additionally, a Shareholder may sell some or all of his shares to the Corporation while still in the full-time employ ofthe Corporation or an Affiliate during the Corporation’s annual stock offering period, and the Corporation may purchase such shares as provided in Section 3, paragraph a. and Section 4 of this Article VIII. If the Corporation exercises itsright of refusal, the ESOP may assume the right of the Corporation to purchase such shares at a price and on the same terms and conditions applicable to the Corporation except as otherwise provided by law in Section 5 hereof; provided however, thatif the ESOP declines to assume such right the Shareholder may offer such shares to the other shareholders of the Corporation or an Affiliate as provided in Section 6 of this Article VIII. If the Corporation or the ESOP should be prohibited frompurchasing such shares under applicable law the other shareholders of the Corporation shall have the right (but not the obligation) to purchase such shares as provided in Section 6 of this Article VIII. 

 

**b. Exception; Separate Agreement(s)**. Notwithstanding the restrictionin paragraph a., above, a former employee of the Corporation or any Affiliate may continue to own shares of the Corporation when such shares are subject to a separate written share redemption or purchase agreement made by the corporation and suchformer employee, and approved by a vote of over fifty percent (50%) of the shares entitled to vote, before the termination of his employment. 

 

**Section 3. Price Upon Issuance/Sale or Redemption.**

 

**a. Rule.**Except as provided in paragraphs a. and c. of this Section 3, the price per share for all shares issued, sold, purchased or redeemed bythe Corporation, the ESOP, or 

 

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individual Shareholders, as the case may be, shall be an amount equal to the fair market value of such shares, as determined by an independent appraisal. Forthis purpose, the valuation of the shares shall be performed at least annually, and the price per share shall be based on the value established by the most recent completed appraisal, subject to applicable law. 

 

**b. Exception; Separate Agreement.** If the provisions of paragraph a.,above, are in conflict with the provisions of any separate written share redemption or purchase agreement (as provided in paragraph b. of Section 2), then the provisions of such separate agreement shall govern. 

 

**c. Stock Ownership Plan.** The price per share for shares issued uponthe exercise of Stock Ownership Rights granted pursuant to The PBSJ Corporation Stock Ownership Plan (the “Plan”) shall be the Exercise Price for such shares fixed in the manner provided in the Plan. The redemption price for such sharesshall be determined in the manner provided in paragraph a. of this Section 3. Recipients of Restricted Shares granted pursuant to the Plan shall not be required to pay for such shares, and such shares shall have no redemption value prior to theexpiration of three years from the date they were awarded, except upon the death of the holder thereof. Upon the expiration of such three-year period or the death of the shareholder, whichever occurs first, such shares shall be deemed fully paid andshall be redeemable at a price determined in the manner provided in paragraph a. of this Section 3. 

 

**Section 4. Purchase by the Corporation, the ESOP, or Individual Shareholders.**

 

**a. Payment Options.** In any share redemption or purchase, the Corporation or the ESOP, as the case may be, shall have the option to pay the totalsum due for the shares redeemed or purchased all in cash, or any portion in cash and the remainder in installments, or all in installments; provided however, that all of such payments shall be out of funds legally available for such purposes underapplicable law. In any share purchase by an individual Shareholder or Shareholders, the total sum due shall be paid at the time of purchase all in cash. 

 

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**b. Installment Payments.** Any sum the Corporation or the ESOP elects to pay in installments shallbe paid to the Shareholder, or his heirs, beneficiaries, personal representative or guardian, as the case may be, over such period as the Board or the ESOP Trustees may determine, provided that such period shall not exceed five (5) years. Subject toapplicable law, interest shall be paid on any unpaid balance at a rate equal to the prime rate charged by the Corporation’s primary bank lender(s). The initial rate shall be the rate in effect at the time of sale, and this rate shall be updatedon December 31 of each year to the rate in effect at that time. All or any part of the unpaid balance may be prepaid in whole or in part at any time or times without penalty. 

 

**c. Apportionment of payments.**In the event the corporation is indebted to more than one former shareholder, or hisguardian, or the heirs, beneficiaries, or personal representative of a deceased Shareholder, incident to the redemption of stock under this Article VIII, and there are insufficient funds to pay all such payments as they fall due, then, the Boardshall apportion such funds as are, from time to time, available between/among such payments so due. 

 

**d. Discretionary Powers of the Board.**The Board shall neither be prohibited nor in any way limited or restricted from utilizing funds available forinstallment payment purposes for any corporate purposes, whatsoever, it being only required that, in all matters respecting the accumulation and/or disbursal of such funds, it consider what, in its judgment and discretion, will be in the best shortand long term interests of the Corporation, the Shareholders, and any former Shareholders, or their guardians, or the heirs, beneficiaries, or personal representatives of deceased Shareholders to whom the Corporation may be indebted incident to theredemption of any shares under paragraph a. of Section 2. Additionally, except as otherwise specifically provided in this Article VIII, when any provision of the Bylaws shall either explicitly or 

 

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inferentially require interpretation, or when any such provision shall allow, permit or require discretionary action, the Board shall have full power andauthority to make such interpretation and/or to take such discretionary action as it deems proper. Provided, however, if a Shareholder, former Shareholder, or his guardian, or the heirs, beneficiaries or personal representative of a deceasedShareholder contend that the Board has not made every reasonable effort to make timely installment payments, as provided for under this paragraph d., then such person or persons may bring an action (based upon but restricted to such contention) forspecific performance in a court of competent jurisdiction. 

 

**e. Exception; Separate Agreement.**If the provisions of paragraph a. through d., above, are in conflict with the provisions of any separate written share redemption or purchase agreement (as provided in paragraph b. of Section 2hereof), then the provisions of such separate agreement shall govern. 

 

**Section 5. Delivery of Share Certificates.**

 

**a. Rule.** Upon payment of any cash and/or upon acknowledgment by the Corporation or the ESOP of any sum to be paid in installments, the Shareholder, his guardian, or his heirs, beneficiaries, or personal representative, as the casemay be, shall forthwith deliver the certificates representing such Shareholder’s shares to be sold to the Corporation or the ESOP, as the case may be. If the Corporation elects to pay the purchase price in installments, such number of shares asshall be represented by any cash payment (based on the redemption price per share) shall belong to the Corporation, without restriction or limitation; such number of shares as shall be represented by the sum to be paid in installment payments (basedon the redemption price per share) shall be held in escrow by a person designated by the Directors, until the sum due for said shares is paid, except that if, as and when such sum is from time to time, reduced, shares representing each suchreduction (based on the redemption price per share) shall become the property of the Corporation, without limitations or restrictions. If the ESOP 

 

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elects to pay the purchase price in installments, it shall deliver an unsecured promissory note to the Shareholder, his guardian, or his heirs, beneficiariesor personal representative, as the case may be, in the amount of the unpaid balance, and the shares so purchased shall be the property of the ESOP, without any limitations or restrictions. 

 

**b. Exception, Separate Agreement.** If the provisions of paragraph a.,above, are in conflict with the provisions of any separate written share redemption or purchase agreement (as provided in paragraph b. of Section 2), then the provisions of such separate agreement shall govern. 

 

**Section 6. Purchase by Shareholders.** If, under applicable law, the Corporation isprohibited from redeeming shares (as provided in paragraph a. of Section 2), or exercises its right of refusal to purchase said shares and the ESOP is prohibited or does not exercise its right to purchase the shares, then the shares not so redeemedor purchased shall be offered to the Shareholders of the Corporation (at no more than the Corporation’s redemption price), each of whom shall then have the right (but not the obligation) for thirty (30) days from the date of such offer topurchase such shares. Each Shareholder shall have the opportunity to purchase a percentage of such shares equal to his proportionate ownership of all issued shares, and each Shareholder’s right to purchase his proportionate percentage of suchshares shall be assignable only to the other Shareholders. 

 

**Section 7.Amendments.** The provisions of this Article VIII shall not be changed by amendment, except by vote of the holders of more than fifty percent (50%) of the shares entitled to vote thereon. No shares held in escrow shall be voted directly orindirectly or counted for the purposes of such vote. 

 

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**ARTICLE IX**

 

**INDEMNIFICATION**

 

**Section 1. Right to Indemnification.** Each person (including here and hereinafter, the heirs, executors, administrators, or estate of such person) (1) who is or wasa director or officer of the Corporation, (2) who is or was an agent or employee of the Corporation other than an officer and as to whom the Corporation has agreed to grant such indemnity, or (3) who is or was serving at the request of theCorporation as its representative in the position of director, officer, agent, or employee of another corporation, partnership, joint venture, trust or other enterprise and as to whom the Corporation has agreed to grant such indemnity shall beindemnified by the Corporation as of right to the fullest extent permitted or authorized by current or future legislation or by current or future judicial or administrative decision (but, in the case of any such future legislation or decision, onlyto the extent that it permits the Corporation to provide broader indemnification rights than permitted prior to such legislation or decision), against any fine, liability, cost or expense, including attorneys’ fees, asserted against him orincurred by him in his capacity as such director, officer, agent, employee, or representative, or arising out of his status as such director, officer, agent, employee or representative. 

 

**Section 2. Advance of Costs, Charges and Expenses.**Costs, charges and expenses (including attorneys’ fees) incurred by a personreferred to in Section 1 of this Article in defending a civil or criminal action, suit or proceeding shall be paid by the Corporation in advance of the final disposition of such action, suit or proceeding, upon receipt in the case of a director orofficer, of an undertaking by or on behalf of the director or officer to repay all amounts so advanced in the event that it shall ultimately be determined that such director or officer is not entitled to be indemnified by the Corporation asauthorized in this Article, and upon satisfaction of such other conditions as are required by current or future legislation (but with respect to future legislation, only to the extent that is provides conditions less burdensome to the director,officer, employee, agent or representative, and to the Corporation, than those provided previously). Such cost, charges and expenses incurred by other employees, agents and representatives may be so paid upon such terms and conditions, if any, asthe Board deems appropriate. The Board may, in the 

 

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manner set forth above, and upon approval of such director, officer, employee, agent or representative of the Corporation, authorize the Corporation’scounsel to represent such person, in any action, suit or proceeding, whether or not the Corporation is a party to such action, suit or proceeding. 

 

**Section 3. Procedure for Indemnification.** Any indemnification or advance of costs, charges and expenses under this Article shall be made promptly, and in any eventwithin 60 days, upon the written request of the director, officer, employee, agent or representative. The right to indemnification or advances as granted by this Article shall be enforceable by the director, officer, employee, agent orrepresentative in any court of competent jurisdiction, if the Corporation denies such request, in whole or in part, or if no disposition thereof is made within 60 days. Such person’s costs and expenses incurred in connection with successfullyestablishing his right to indemnification, in whole or in part, in any such action shall also be indemnified by the Corporation. It shall be a defense to any such action that the claimant has not met the applicable standard of conduct, if any,required as a prerequisite to such indemnification or advances under the General Corporation Act, but the burden of proving such defense shall be on the Corporation. Neither the failure of the Corporation (including the Board or a committee thereof,its independent legal counsel, and its Shareholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he has met the applicable standard of conduct, northe fact that there has been an actual determination by the Corporation (including the Board or a committee thereof, its independent legal counsel, and its Shareholders) that the claimant has not met such applicable standard of conduct, shall be adefense to the action or create a presumption that the claimant has not met the applicable standard of conduct. 

 

**Section 4. Other Rights: Continuance of Right to Indemnification.** The indemnification or advance of costs, charges and expenses provided by this Article shall notbe deemed exclusive of any other or future rights to which a person seeking indemnification may be entitled under any 

 

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law (common or statutory), agreement, vote of Shareholders or disinterested directors or otherwise, both as to action in his official capacity and as toaction in another capacity while holding office or while employed by or acting as agent for the Corporation. All rights to indemnification or advance of costs, charges and expenses under this Article shall be deemed to be a contract between theCorporation and each director, officer, employee, agent or representative of the Corporation described in Section 1 of this Article who serves or served in such capacity at any time while this Article is in effect. Any repeal or modification of thisArticle or any repeal or modification of relevant provisions of the General Corporation Act or any other applicable laws shall not in any way diminish any rights to indemnification of such director, officer, employee, agent or representative or theobligations of the Corporation arising hereunder. 

 

**Section 5. Insurance.**The Corporation may maintain insurance, at its expense, to protect itself and any person who is or was or has agreed to become a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as adirector, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him or on his behalf in any such capacity, or arising out of his status assuch, whether or not the Corporation would have the legal power to directly indemnify him against such liability. 

 

**Section 6. Savings Clause.** If this Article or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporationshall nevertheless indemnify each director and officer, and each employee, agent and representative of the Corporation described in Section 1 of this Article, as to costs, charges and expenses (including attorneys’ fees), judgments, fines andamounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Corporation, to the full extent permitted by an applicable portion ofthis Article that shall not have been invalidated to the full extent permitted by applicable law. 

 

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**ARTICLE X**

 

**SEAL**

 

The Board shall provide a corporate seal which shall be in circular form. 

 

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**ARTICLE XI**

 

**AMENDMENT**

 

These Bylaws may be altered, amended, supplemented or repealed, and new Bylaws adopted, by the Shareholders. 

 

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HISTORY OF AMENDMENTS 

 

1/28/89 

 

R 3/8/89 

 

R 1/9/93 

 

R 1/7/95 

 

A 1/31/03 Eliminate part-time employees as shareholders except by consent of Board ofDirectorsArticle VIII 

 

A 1/21/04 Various provisions: Art.II, Sec. 5; Art.III,Sec 14; Art. IV, Secs 4 & 5; Art. V, Sec 5                    (new); Art. VIII, Secs 1-4; and 6 

 

A 1/28/05 Art.VIII, Sections 1 & 2 

 

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