Document:

exv4w2

 

EXHIBIT 4.2

BYE-LAWS

of

HELEN OF TROY LIMITED

 

 

(i)

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Bye-Law	 	 	 	Page
	1

	 	Interpretation
	 	 	1	 
	2

	 	Board of Directors
	 	 	2	 
	3

	 	Management of the Company
	 	 	2	 
	4

	 	Power to appoint managing director or chief executive officer
	 	 	3	 
	5

	 	Power to appoint manager
	 	 	3	 
	6

	 	Power to authorise specific actions
	 	 	3	 
	7

	 	Power to appoint attorney
	 	 	3	 
	8

	 	Power to delegate to a committee
	 	 	4	 
	9

	 	Power to appoint and dismiss employees
	 	 	4	 
	10

	 	Power to borrow and charge property
	 	 	4	 
	11

	 	Power to purchase shares of or discontinue the Company
	 	 	4	 
	12

	 	Election of Directors
	 	 	4	 
	13

	 	Defects in appointment of Directors
	 	 	4	 
	14

	 	Alternate Directors
	 	 	5	 
	15

	 	Removal of Directors
	 	 	5	 
	16

	 	Vacancies on the Board
	 	 	5	 
	17

	 	Notice of meetings of the Board
	 	 	6	 
	18

	 	Quorum at meetings of the Board
	 	 	6	 
	19

	 	Meetings of the Board
	 	 	6	 
	20

	 	Unanimous written resolutions
	 	 	7	 
	21

	 	Contracts and disclosure of Directors’ interests
	 	 	7	 
	22

	 	Remuneration of Directors
	 	 	7	 
	23

	 	Officers of the Company
	 	 	7	 
	24

	 	Appointment of Officers
	 	 	7	 
	25

	 	Remuneration of Officers
	 	 	8	 
	26

	 	Duties of Officers
	 	 	8	 
	27

	 	Chairman of meetings
	 	 	8	 
	28

	 	Register of Directors and Officers
	 	 	8	 
	29

	 	Obligations of Board to keep minutes
	 	 	9	 
	30

	 	Indemnification of Directors and Officers of the Company
	 	 	9	 
	31

	 	Waiver of claim by Member
	 	 	9	 
	32

	 	Notice of annual general meeting
	 	 	10	 
	33

	 	Notice of special general meeting
	 	 	10	 
	34

	 	Accidental omission of notice of general meeting
	 	 	10	 
	35

	 	Meeting called on requisition of members
	 	 	10	 
	36

	 	Short notice
	 	 	10	 

 

 

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	Bye-Law	 	 	 	Page
	37

	 	Postponement of meetings
	 	 	10	 
	38

	 	Quorum for general meeting
	 	 	11	 
	39

	 	Adjournment of meetings
	 	 	11	 
	40

	 	Attendance at meetings
	 	 	11	 
	41

	 	Written resolutions
	 	 	11	 
	42

	 	Attendance of Directors
	 	 	12	 
	43

	 	Voting at meetings
	 	 	12	 
	44

	 	Voting on show of hands
	 	 	12	 
	45

	 	Decision of chairman
	 	 	12	 
	46

	 	Demand for a poll
	 	 	13	 
	47

	 	Seniority of joint holders voting
	 	 	14	 
	48

	 	Instrument of proxy
	 	 	14	 
	49

	 	Representation of corporations at meetings
	 	 	14	 
	50

	 	Rights of shares
	 	 	14	 
	51

	 	Variation of rights and alteration of share capital, financial assistance
	 	 	15	 
	52

	 	Registered holder of shares
	 	 	15	 
	53

	 	Death of a joint holder
	 	 	15	 
	54

	 	Share certificates
	 	 	16	 
	55

	 	Calls on shares
	 	 	16	 
	56

	 	Forfeiture of Shares
	 	 	16	 
	57

	 	Contents of Register of Members
	 	 	17	 
	58

	 	Inspection of Register of Members
	 	 	17	 
	59

	 	Determination of record dates
	 	 	17	 
	60

	 	Instrument of transfer
	 	 	17	 
	61

	 	Restriction on Transfer
	 	 	18	 
	62

	 	Transfers by joint holders
	 	 	18	 
	63

	 	Representative of deceased Member
	 	 	18	 
	64

	 	Registration on death or bankruptcy
	 	 	18	 
	65

	 	Declaration of dividends by Board
	 	 	19	 
	66

	 	Other distributions
	 	 	19	 
	67

	 	Reserve fund
	 	 	19	 
	68

	 	Deduction of amounts due to the Company
	 	 	19	 
	69

	 	Issue of bonus shares
	 	 	19	 
	70

	 	Records of account
	 	 	19	 
	71

	 	Financial year end
	 	 	20	 
	72

	 	Financial statements
	 	 	20	 
	73

	 	Appointment of Auditor
	 	 	20	 
	74

	 	Remuneration of Auditor
	 	 	20	 
	75

	 	Vacation of office of Auditor
	 	 	20	 
	76

	 	Access to books of the Company
	 	 	21	 
	77

	 	Report of the Auditor
	 	 	21	 
	78

	 	Notices to Members of the Company
	 	 	21	 
	79

	 	Notices to joint Members
	 	 	21	 
	80

	 	Service and delivery of notice
	 	 	21	 

 

 

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	Bye-Law	 	 	 	Page
	81

	 	The seal
	 	 	22	 
	82

	 	Manner in which seal is to be affixed
	 	 	22	 
	83

	 	Winding-up/distribution by liquidator
	 	 	22	 
	84

	 	Alteration of Bye-laws
	 	 	22	 

 

 

INTERPRETATION

	1.	 	Interpretation

     (1) In these Bye-laws the following words and expressions shall, where not inconsistent with
the context, have the following meanings respectively:

	 	(a)	 	“Act” means the Companies Act 1981 as amended from time to time;
	 
	 	(b)	 	“Alternate Directors” means an alternate Director appointed in
accordance with these Bye-laws;
	 
	 	(c)	 	“Auditor” includes any individual or partnership;
	 
	 	(d)	 	“Board” means the Board of Directors appointed or elected
pursuant to these Bye-laws and acting by resolution in accordance with the Act
and these Bye-laws or the Directors present at a meeting of Directors at which
there is a quorum;
	 
	 	(e)	 	“Company” means the company for which these Bye-laws are approved
and confirmed;
	 
	 	(f)	 	“Director” means a director of the Company and shall include an
Alternate Director;
	 
	 	(g)	 	“Member” means the person registered in the Register of Members
as the holder of shares in the Company and, when two or more persons are so
registered as joint holders of shares, means a person whose name stands first in
the Register of Members as one of such joint holders or all of such persons as
the context so requires;
	 
	 	(h)	 	“notice” means written notice as further defined in these
Bye-laws unless otherwise specifically stated;
	 
	 	(i)	 	“Officer” means any person appointed by the Board to hold an
office in the Company;
	 
	 	(j)	 	“Register of Directors and Officers” means the Register of
Directors and Officers referred to in these Bye-laws;
	 
	 	(k)	 	“Register of Members” means the Register of Members referred to
in these Bye-laws; and
	 
	 	(l)	 	“Secretary” means the person appointed to perform any or all the
duties of secretary of the Company and includes any deputy or assistant
secretary.

 

 

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     (2) In these Bye-laws, where not inconsistent with the context:

	 	(a)	 	words denoting the plural number include the singular number and
vice versa;
	 
	 	(b)	 	words denoting the masculine gender include the feminine gender;
	 
	 	(c)	 	words importing persons include companies, associations or bodies
of persons whether corporate or not;
	 
	 	(d)	 	the word:

	 	(i)	 	“may” shall be construed as permissive;
	 
	 	(ii)	 	“shall” shall be construed as imperative; and

	 	(e)	 	unless otherwise provided herein words or expressions defined in
the Act shall bear the-same meaning in these Bye-laws.

     (3) Expressions referring to writing or written shall, unless the contrary intention appears,
include facsimile, printing, lithography, photography, electronic transmission and other modes of
representing words in a visible form.

     (4) Headings used in these Bye-laws are for convenience only and are not to be used or relied
upon in the construction hereof.

     (5) For purposes of these Bye-laws, “electronic transmission” means any form of communication,
not directly involving the physical transmission of paper, that creates a record that may be
retained, retrieved and reviewed by a recipient thereof, and that may be directly reproduced in
paper form by such a recipient through an automated process.

BOARD OF DIRECTORS

	2.	 	Board of Directors
	 
	 	 	The business of the Company shall be managed and conducted by the Board.
	 
	3.	 	Management of the Company

     (1) In managing the business of the Company, the Board may exercise all such powers of the
Company as are not, by statute or by these Bye-laws, required to be exercised by the Company in
general meeting subject, nevertheless, to these Bye-laws, the provisions of any statute and to such
regulations as may be prescribed by the Company in general meeting.

 

 

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     (2) No regulation or alteration to these Bye-laws made by the Company in general meeting shall
invalidate any prior act of the Board which would have been valid if that regulation or alteration
had not been made.

     (3) The Board may procure that the Company pays all expenses incurred in promoting and
incorporating the Company.

     (4) When and as authorised by the affirmative vote or the written consent of the holders of
shares holding at the date of the resolution or consent as the case may be not less than sixty-six
and two thirds percent of the paid up share capital of the Company as at the date of the resolution
or consent carries the right to vote at general meetings of the Company, and not otherwise, the
Board shall have the power to sell, lease or exchange all the property and assets of the Company,
including its goodwill and its corporate franchises upon such temps and conditions and for such
consideration, which may be in whole or in part shares of stock, in, and/or other securities of,
any other company or companies, as the Board shall deem expedient and for the best interest of the
Company.

	4.	 	Power to appoint managing director or chief executive officer

     The Board may from time to time appoint one or more Directors to the office of managing
director or chief executive officer of the Company who shall, subject to the control of the Board,
supervise and administer all of the general business and affairs of the Company.

	5.	 	Power to appoint manager

     The Board may appoint a person to act as manager of the Company’s day to day business and may
entrust to and confer upon such manager such powers and duties as it deems appropriate for the
transaction or conduct of such business.

	6.	 	Power to authorise specific actions

     The Board may from time to time and at any time authorise any company, firm, person or body of
persons to act on behalf of the Company for any specific purpose and in connection therewith to
execute any agreement, document or instrument on behalf of the Company.

	7.	 	Power to appoint attorney

     The Board may from time to time and at any time by power of attorney appoint any company,
firm, person or body of persons, whether nominated directly or indirectly by the Board, to be an
attorney of the Company for such purposes and with such powers, authorities and discretions (not
exceeding those vested in or exercisable by the Board) and for such period and subject to such
conditions as it may think fit and any such power of attorney may contain such provisions for the
protection and convenience of persons dealing with any such attorney as the Board may think fit and
may also authorise any such attorney to sub-delegate all or any of the powers, authorities and
discretions so vested in the attorney. Such attorney may, if so authorised under the seal of the

 

 

  4

Company, execute any deed or instrument under such attorney’s personal seal with the same
effect as the affixation of the seal of the Company.

	8.	 	Power to delegate to a committee

     The Board may delegate any of its powers to a committee appointed by the Board and every such
committee shall conform to such directions as the Board shall impose on them.

	9.	 	Power to appoint and dismiss employees

     The Board may appoint, suspend or remove any manager, secretary, clerk, agent or employee of
the Company and may fix their remuneration and determine their duties.

	10.	 	Power to borrow and charge property

     The Board may exercise all the powers of the Company to borrow money and to mortgage or charge
its undertaking, property and uncalled capital, or any part thereof, and may issue debentures,
debenture stock and other securities whether outright or as security for any debt, liability or
obligation of the Company or any third party.

	11.	 	Power to purchase shares of or discontinue the Company

     (1) Subject to the provisions of Section 42A of the Act, the Board may exercise all the powers
of the Company to purchase all or any part of its own shares.

     (2) The Board may exercise all the powers of the Company to discontinue the Company to a named
country or jurisdiction outside Bermuda pursuant to Section 1326 of the Act.

	12.	 	Election of Directors

     The Board shall consist of not less than two Directors or such number in excess thereof as the
Members may from time to time determine who shall be elected or appointed in the first place at the
statutory meeting of the Company and thereafter, except in the case of casual vacancy, at the
annual general meeting or at any special general meeting called for the purpose and who shall hold
office for such term as the Members may determine or, in the absence of such determination, until
the next annual general meeting or until their successors are elected or appointed or their office
is otherwise vacated, and any general meeting may authorise the Board to fill any vacancy in their
number left unfilled at a general meeting.

	13.	 	Defects in appointment of Directors

     All acts done bona fide by any meeting of the Board or by a committee of the Board or by any
person acting as a Director shall, notwithstanding that it be afterwards discovered that there was
some defect in the appointment of any Director or person acting as aforesaid, or that they or any
of them were disqualified, be as valid as if every such person had been duly appointed and was
qualified to be a Director.

 

 

  5

	14.	 	Alternate Directors

     (1) Any general meeting of the Company may elect a person or persons to act as a Director in
the alternative to any one or more of the Directors of the Company or may authorise the Board to
appoint such Alternate Directors. Any person so appointed shall have all the rights and powers of
the Director or Directors for whom such person is appointed in the alternative provided that such
person shall not be counted more than once in determining whether or not a quorum is present.

     (2) An Alternate Director shall be entitled to receive notice of all meetings of the Board and
to attend and vote at any such meeting at which a Director for whom such Alternate Director was
appointed in the alternative is not personally present and generally to perform at such meeting all
the functions of such Director for whom such Alternate Director was appointed.

     (3) An Alternate Director shall cease to be such if the Director for whom such Alternate
Director was appointed ceases for any reason to be a Director but may be re-appointed by the Board
as alternate to the person appointed to fill the vacancy in accordance with these Bye-laws.

	15.	 	Removal of Directors

     (1) Subject to any provision to the contrary in these Bye-laws, the Members may, at any
special general meeting convened and held in accordance with these Bye-laws, remove a Director
provided that the notice of any such meeting convened for the purpose of removing a Director shall
contain a statement of the intention so to do and be served on such Director not less than 60 days
before the meeting and at such meeting such Director shall be entitled to be heard on the motion
for such Director’s removal.

     (2) A vacancy on the Board created by the removal of a Director under the provisions of
subparagraph (1) of this Bye-law may be filled by the Members at the meeting at which such Director
is removed and, in the absence of such election or appointment, the Board may fill the vacancy.

	16.	 	Vacancies on the Board

     (1) The Board shall have the power from time to time and at any time to appoint any person as
a Director to fill a vacancy on the Board occurring as the result of the death, disability,
disqualification or resignation of any Director and to appoint an Alternate Director to any
Director so appointed.

     (2) The Board may act notwithstanding any vacancy in its number but, if and so long as its
number is reduced below the number fixed by these Bye-laws as the quorum necessary for the
transaction of business at meetings of the Board, the continuing Directors or Director may act for
the purpose of (i) summoning a general meeting of the Company or (ii) preserving the assets of the
Company.

     (3) The office of Director shall be vacated if the Director:

 

 

  6

	 	(a)	 	is removed from office pursuant to these Bye-laws or is
prohibited from being a Director by law;
	 
	 	(b)	 	is or becomes bankrupt or makes any arrangement or composition
with his creditors generally;
	 
	 	(c)	 	is or becomes of unsound mind or dies;
	 
	 	(d)	 	resigns his or her office by notice in writing to the Company.

	17.	 	Notice of meetings of the Board

     (1) A Director may, and the Secretary on the requisition of a Director shall, at any time
summon a meeting of the Board.

     (2) Notice of a meeting of the Board shall be deemed to be duly given to a Director if it is
given to such Director verbally in person -or by telephone or otherwise communicated or sent to
such Director by post, cable, telex, telecopier, facsimile, electronic transmission or other mode
of representing words in a legible and non-transitory form at such Director’s last known address or
any other address given by such Director to the Company for this purpose.

	18.	 	Quorum at meetings of the Board

     The quorum necessary for the transaction of business at a meeting of the Board shall be two
Directors, provided that at any time the Company is listed on an appointed stock exchange, as that
term is defined in the Act, the quorum necessary for the transaction of business at a meeting of
the Board shall be a majority of the Directors.

	19.	 	Meetings of the Board

     (1) The Board may meet for the transaction of business, adjourn and otherwise regulate its
meetings as it sees fit.

     (2) Directors may participate in any meeting of the Board by means of such telephone,
electronic or other communication facilities as permit all persons participating in the meeting to
communicate with each other simultaneously and instantaneously, and participation in such a meeting
shall constitute presence in person at such meeting.

     (3) A resolution put to the vote at a meeting of the Board shall be carried by the affirmative
votes of a majority of the votes cast and in the case of an equality of votes the resolution shall
fail.

 

 

  7

	20.	 	Unanimous written resolutions

     A resolution in writing signed by all the Directors which may be in counterparts, shall be as
valid as if it had been passed at a meeting of the Board duly called and constituted, such
resolution to be effective on the date on which the last Director signs the resolution. For the
purposes of this Bye-law only, “Director” shall not include an Alternate Director.

	21.	 	Contracts and disclosure of Directors’ interests

     (1) Any Director, or any Director’s firm, partner or any company with whom any Director is
associated, may act in a professional capacity for the Company and such Director or such Director’s
firm, partner or such company shall be entitled to remuneration for professional services as if
such Director were not a Director, provided that nothing herein contained shall authorise a
Director or Director’s firm, partner or such company to act as Auditor of the Company.

     (2) A Director who is directly or indirectly interested in a contract or proposed contract or
arrangement with the Company shall declare the nature of such interest as required by the Act.

     (3) Following a declaration being made pursuant to this Bye-law, and unless disqualified by
the chairman of the relevant Board meeting, a Director may vote in respect of any contract or
proposed contract or arrangement in which such Director is interested and may be counted in the
quorum at such meeting.

	22.	 	Remuneration of Directors

     The remuneration, (if any) of the Directors shall be determined by the Company in general
meeting and shall be deemed to accrue from day to day. The Directors may also be paid all travel,
hotel and other expenses property incurred by them in attending and returning from meetings of the
Board, any committee appointed by the Board, general meetings of the Company, or in connection with
the business of the Company or their duties as Directors generally.

OFFICERS

	23.	 	Officers of the Company

     The Officers of the Company shall consist of a President and a Vice President or a Chairman
and a deputy Chairman, a Secretary and such additional Officers as the Board may from time to time
determine all of whom shall be deemed to be Officers for the purposes of these Bye-laws.

	24.	 	Appointment of Officers

     (1) The Board shall, as soon as possible after the statutory meeting of Members and after each
annual general meeting appoint a President and Vice President or a Chairman and Deputy Chairman who
shall be Directors.

 

 

8

     (2) The Secretary and additional Officers, if any, shall be appointed by the Board from time
to time.

25. Remuneration of Officers

     The Officers shall receive such remuneration as the Board may from time to time determine.

26. Duties of Officers

     The Officers shall have such powers and perform such duties in the management, business and
affairs of the Company as may be delegated to them by the Board from time to time.

27. Chairman of meetings

     Unless otherwise agreed by a majority of those attending and entitled to attend and vote
thereat, the Chairman, if there be one, and if not the President shall act as chairman at all
meetings of the Members and of the Board at which such person is present. In their absence the
Deputy Chairman or Vice President, if present, shall act as chairman and in the absence of all of
them a chairman shall be appointed or effected by those present at the meeting and entitled to
vote.

28. Register of Directors and Officers

     (1) The Board shall cause to be kept in one or more books at its registered office a Register
of Directors and Officers and shall enter therein the following particulars with respect to each
Director and the President, each Vice-President, the Chairman, and each Deputy Chairman, provided
that each such person is a Director and the Secretary, that is to say:

	 	(a)	 	first name and surname; and
	 
	 	(b)	 	address.

     (2) The Board shall, within the period of fourteen days from the occurrence of:

	 	(a)	 	any change among its Directors, the President, any
Vice-President, the Chairman, and any Deputy Chairman, provided that each such
person is a Director, and in the Secretary; or
	 
	 	(b)	 	any change in the particulars contained in the Register of
Directors and Officers,

cause to be entered on the Register of Directors and Officers the particulars of such change and
the date on which such change occurred.

     (3) The Register of Directors and Officers shall be open to inspection at the office of the
Company on every business day, subject to such reasonable restrictions as the Board may impose, so
that not less than two hours in each business day be allowed for inspection.

 

9

MINUTES

29. Obligations of Board to keep minutes

     The Board shall cause minutes to be duly entered in books provided for the purpose:

	 	(a)	 	of all elections and appointments of Officers;
	 
	 	(b)	 	of the names of the Directors present at each meeting of the
Board and of any committee appointed by the Board; and
	 
	 	(c)	 	of all resolutions and proceedings of general meetings of the
Members, meetings of the Board, meetings of managers and meetings of committees
appointed by the Board.

INDEMNITY

30. Indemnification of Directors and Officers of the Company

     The Directors, Secretary and other Officers for the time being of the Company and the
liquidator or trustees (if any) for the time being acting in relation to any of the affairs of the
Company and every one of them, and their heirs, executors and administrators, shall be indemnified
and secured harmless out of the assets of the Company from and against all actions, costs, charges,
losses, damages and expenses which they or any of them, their heirs, executors or administrators,
shall or may incur or sustain by or by reason of any act done, concurred in or omitted in or about
the execution of their duty, or supposed duty, or in their respective offices or trusts, and none
of them shall be answerable for the acts, receipts, neglects or defaults of the others of them or
for joining in any receipts for the sake of conformity, or for any bankers or other persons with
whom any moneys or effects belonging to the Company shall or may be lodged or deposited for safe
custody, or for insufficiency or deficiency of any security upon which any moneys of or belonging
to the Company shall be placed out on or invested, or for any other loss, misfortune or damage
which may happen in the execution of their respective offices or trusts, or in relation thereto,
PROVIDED THAT this indemnity shall not extend to any matter in respect of any wilful negligence,
wilful default, fraud or dishonesty which may attach to any of said persons.

31. Waiver of claim by Member

     Each Member agrees to waive any claim or right of action such Member might have, whether
individually or by or in the right of the Company, against any Director or Officer on account of
any action taken by such Director or Officer, or the failure of such Director or Officer to take
any action in the performance of his duties with or for the Company, PROVIDED THAT such waiver
shall not extend to any matter in respect of any wilful negligence, wilful default, fraud or
dishonesty which may attach to such Director or Officer.

 

10

MEETINGS

32. Notice of annual general meeting

     The annual general meeting of the Company shall be held in each year other than the year of
incorporation at such time and place as the President or the Chairman or any two Directors or any
Director and the Secretary or the Board shall appoint. At least ten and not more than sixty days
notice of such meeting shall be given to each Member stating the date, place and time at which the
meeting is to be held, that the election of Directors will take place thereat, and as far as
practicable the other business to be conducted at the meeting.

33. Notice of special general meeting

     The President or the Chairman or any two Directors or any Director and the Secretary or the
Board may convene a special general meeting of the Company whenever in their judgment such a
meeting is necessary, upon not less than ten and not more than sixty days’ notice which shall state
the time, place and the general nature of the business to be considered at the meeting.

34. Accidental omission of notice of general meeting

     The accidental omission to give notice of a general meeting to, or the non-receipt of notice
of a general meeting by, any person entitled to receive notice shall not invalidate the proceedings
at that meeting.

35. Meeting called on requisition of Members

     Notwithstanding anything herein, the Board shall, on the requisition of Members holding at the
date of the deposit of the requisition not less than one-tenth of such of the paid-up share capital
of the Company as at the date of the deposit carries the right to vote at general meetings of the
Company, forthwith proceed to convene a special general meeting of the Company and the provisions
of section 74 of the Act shall apply.

36. Short notice

     A general meeting of the Company shall, notwithstanding that it is called by shorter notice
than that specified in these Bye-laws, be deemed to have been property called if it is so agreed by
(i) all the Members entitled to attend and vote thereat in the case of an annual general meeting;
and (ii) by a majority in number of the Members having the right to attend and vote at the meeting,
being a majority together holding not less than 95% in nominal value of the shares giving a right
to attend and vote thereat in the case of a special general meeting.

37. Postponement of meetings

     The Board may postpone any general meeting called in accordance with the provisions of these
Bye-laws (other than a meeting requisitioned under these Bye-laws) provided that notice of
postponement is given to each Member before the time for such meeting. Fresh notice of the date,

 

11

time and place for the postponed meeting shall be given to each Member in accordance with the
provisions of these Bye-laws.

38. Quorum for general meeting

     At any general meeting of the Company two persons present in person and representing in person
or by proxy in excess of 50% of the total issued voting shares in the Company throughout the
meeting shall form a quorum for the transaction of business, PROVIDED that if the Company shall at
any time have only one Member, one Member present in person or by proxy shall form a quorum for the
transaction of business at any general meeting of the Company held during such time. If within
half an hour from the time appointed for the meeting a quorum is not present, the meeting shall
stand adjourned to the same day one week later, at the same time and place or to such other day,
time or place as the Board may determine.

39. Adjournment of meetings

     The chairman of a general meeting may, with the consent of the Members at any general meeting
at which a quorum is present (and shall if so directed), adjourn the meeting. Unless the meeting
is adjourned to a specific date and time, fresh notice of the date, time and place for the
resumption of the adjourned meeting shall be given to each Member in accordance with the provisions
of these Bye-laws.

40. Attendance at meetings

     Members may participate in any general meeting by means of such telephone, electronic or other
communication facilities as permit all persons participating in the meeting to communicate with
each other simultaneously and instantaneously, and participation in such a meeting shall constitute
presence in person at such meeting.

41. Written resolutions

     (1) Subject to subparagraph (6), anything which may be done by resolution of the Company in
general meeting or by resolution of a meeting of any class of the Members of the Company, may,
without a meeting and without any previous notice being required, be done by resolution in writing
signed by, or, in the case of a Member that is a corporation whether or not a company within the
meaning of the Act, on behalf of, all the Members who at the date of the resolution would be
entitled to attend the meeting and vote on the resolution.

     (2) A resolution in writing may be signed by, or, in the case of a Member that is a
corporation whether or not a company within the meaning of the Act, on behalf of, all the Members,
or any class thereof, in as many counterparts as may be necessary.

     (3) For the purposes of this Bye-law, the date of the resolution is the date when the
resolution is signed by, or, in the case of a Member that is a corporation whether or not a company
within the meaning of the Act, on behalf of, the last Member to sign and any reference in any
Bye-law

 

12

to the date of passing of a resolution is, in relation to a resolution made in accordance with
this Bye-law, a reference to such date.

     (4) A resolution in writing made in accordance with this Bye-law is as valid as if it had been
passed by the Company in general meeting or by a meeting of the relevant class of Members, as the
case may be and any reference in any Bye-law to a meeting at which a resolution is passed or to
Members voting in favour of a resolution shall be construed accordingly.

     (5) A resolution in writing made in accordance with this Bye-law shall constitute minutes for
the purposes of sections 81 and 82 of the Act.

     (6) This Bye-law shall not apply to:

	 	(a)	 	a resolution passed pursuant to section 89(5) of the Act; or
	 
	 	(b)	 	a resolution passed for the purpose of removing a Director before
the expiration of his term of office under these Bye-laws.

42. Attendance of Directors

     The Directors of the Company shall be entitled to receive notice of and to attend and be heard
at any general meeting.

43. Voting at meetings

     (1) Subject to the provisions of the Act and these, Bye-laws, any question proposed for the
consideration of the Members at any general meeting shall be decided by the affirmative votes of a
majority of the votes cast in accordance with the provisions of these Bye-laws and in the case of
an equality of votes the resolution shall fail.

     (2) No Member shall be entitled to vote at any general meeting unless such Member has paid all
the calls on all shares held by such Member.

44. Voting on show of hands

     At any general meeting a resolution put to the vote of the meeting shall, in the first
instance, be voted upon by a show of hands and, subject to any rights or restrictions for the time
being lawfully attached to any class of shares and subject to the provisions of these Bye-laws,
every Member present in person and every person holding a valid proxy at such meeting shall be
entitled to one vote and shall cast such vote by raising his or her hand.

45. Decision of chairman

     At any general meeting a declaration by the chairman of the meeting that a question proposed
for consideration has, on a show of hands, been carried, or carried unanimously, or by a particular

 

 

13

majority, or lost, and an entry to that effect in a book containing the minutes of the proceedings
of the Company shall, subject to the provisions of these Bye-laws, be conclusive evidence of that
fact.

46. Demand for a poll

     (1) Notwithstanding the provisions of the immediately preceding two Bye-laws, at any general
meeting of the Company, in respect of any question proposed for the consideration of the Members
(whether before or on the declaration of the result of a show of hands as provided for in these
Bye-laws), a poll may be demanded by any of the following persons:

	 	(a)	 	the chairman of such meeting; or
	 
	 	(b)	 	at least three Members present in person or represented by proxy;
or
	 
	 	(c)	 	any Member or Members present in person or represented by proxy
and holding between them not less than one-tenth of the total voting rights of
all the Members having the right to vote at such meeting; or
	 
	 	(d)	 	any Member or Members present in person or represented by proxy
holding shares in the Company conferring the right to vote at such meeting,
being shares on which an aggregate sum has been paid up equal to not less than
one-tenth of the total sum paid up on all such shares conferring such right.

     (2) Where, in accordance with the provisions of subparagraph (1) of this Bye-law, a poll is
demanded, subject to any rights or restrictions for the time being lawfully attached to any class
of shares, every person present at such meeting shall have one vote for each share of which such
person is the holder or for which such person holds a proxy and such vote shall be counted in the
manner set out in sub-paragraph (4) of this Bye-Law or in the case of a general meeting at which
one or more Members are present by telephone in such manner as the chairman of the meeting may
direct and the result of such poll shall be deemed to be the resolution of the meeting at which the
poll was demanded and shall replace any previous resolution upon the same matter which has been the
subject of a show of hands.

     (3) A poll demanded in accordance with the provisions of subparagraph (1) of this Bye-law, for
the purpose of electing a chairman or on a question of adjournment, shall be taken forthwith and a
poll demanded on any other question shall be taken in such manner and at such time and place as the
chairman may direct and any business other than that upon which a poll has been demanded may be
proceeded with pending the taking of the poll.

     (4) Where a vote is taken by poll, each person present and entitled to vote shall be furnished
with a ballot paper on which such person shall record his or her vote in such manner as shall be
determined at the meeting having regard to the nature of the question on which the vote is taken,
and each ballot paper shall be signed or initialled or otherwise marked so as to identify the voter
and the registered holder in the case of a proxy. At the conclusion of the poll, the ballot papers
shall be examined and counted by a committee of not less than two Members or proxy holders
appointed by the chairman for the purpose and the result of the poll shall be declared by the
chairman.

 

 

14

47. Seniority of joint holders voting

     In the case of joint holders the vote of the senior who tenders a vote, whether in person or
by proxy, shall be accepted to the exclusion of the votes of the other joint holders, and for this
purpose seniority shall be determined by the order in which the names stand in the Register of
Members.

48. Instrument of proxy

     The instrument appointing a proxy shall be (a) in writing in the form, or as near thereto as
circumstances admit, of Form “A” in the Schedule hereto, under the hand of the appointor or of the
appointor’s attorney duly authorised in writing, or if the appointor is a corporation, either under
its seal, or under the hand of a duly authorised officer or attorney or (b) such telephonic,
electronic transmission or other means as may be approved by the Board from time to time. The
decision of the chairman of any general meeting as to the validity of any instrument of proxy shall
be final.

49. Representation of corporations at meetings

     A corporation which is a Member may, by written instrument, authorise such person as it thinks
fit to act as its representative at any meeting of the Members and the person so authorised shall
be entitled to exercise the same powers on behalf of the corporation which such person represents
as that corporation could exercise if it were an individual Member. Notwithstanding the foregoing,
the chairman of the meeting may accept such assurances as he or she thinks fit as to the right of
any person to attend and vote at general meetings on behalf of a corporation which is a Member.

SHARE CAPITAL AND SHARES

50. Rights of shares

     (1) The authorised share capital of the Company may be divided into common shares (“Common
Shares”) and preference shares (“Preference Shares”).

     (2) The Common Shares shall be entitled to one vote per share and to such dividends and
distributions as may be declared or may be payable in-accordance with these Bye-laws.

     (3) The Preference Shares may be issued from time to time in one or more classes. The Board
hereby is authorized to fix or alter by resolution or resolutions, the designations, preferences
and relative participating, optional or other special rights of the shares of each such class and
the qualifications, limitations, or restrictions thereon, including but not limited to, determination of the dividend rights, dividend rates, conversion rights, voting rights, rights in
terms of redemption (including sinking fund provisions), redemption price or prices and liquidation
preferences of any wholly unissued class of Preference Shares and the number of shares constituting
any such class and the designation thereof or any of them; and to increase or decrease the number
of shares of any class subsequent to the issue of shares of such class then outstanding. In case
the number of shares of any class shall be so decreased, the shares constituting such decrease
shall resume the status which they had prior to the adoption of the resolution originally fixing
the number of shares in such class.

 

 

15

51. Variation of rights and alteration of share capital, financial assistance

     (1) If at any time the share capital is divided into different classes of shares, the rights
attached to any class (unless otherwise provided by the terms of issue of the shares of that class)
may, whether or not the Company is being wound-up, be varied with the consent in writing of the
holders of three-fourths of the issued shares of that class or with the sanction of a resolution
passed by a majority of the votes cast at a separate general meeting of the holders of the shares
of the class in accordance with Section 47 (7) of the Act. The rights conferred upon the holders
of the shares of any class issued with preferred or other rights shall not, unless otherwise
expressly provided by the terms of issue of the shares of that class, be deemed to be varied by the
creation or issue of further shares ranking pari passu therewith.

     (2) The Company may from time to time by resolution of the Members change the currency
denomination of, increase, alter or reduce its share capital in accordance with the provisions of
Sections 45 and 46 of the Act. Where, on any alteration of share capital, fractions of shares or
some other difficulty would arise, the Board may deal with or resolve the same in such manner as it
thinks fit including, without limiting the generality of the foregoing, the issue to Members, as
appropriate, of fractions of shares and/or arranging for the sale or transfer of the fractions of
shares of Members.

     (3) The Company shall not give, whether directly or indirectly, whether by means of loan,
guarantee, provision of security or otherwise, any financial assistance for the purpose of a
purchase or subscription made or to be made by any person of or for any shares in the Company, but
nothing in this Bye-Law shall prohibit transactions mentioned in Sections 39A, 39B and 39C of the
Act.

52. Registered holder of shares

     (1) The Company shall be entitled to treat the registered holder of any share as the absolute
owner thereof and accordingly shall not be bound to recognise any equitable or other claim to, or
interest in, such share on the part of any other person.

     (2) Any dividend, interest or other moneys payable in cash in respect of shares may be paid by
cheque or draft sent through the post directed to the Member at such Member’s address in the
Register of Members or, in the case of joint holders, to such address of the holder first named in
the Register of Members, or to such person and to such address as the holder or joint holders may
in writing direct. If two or more persons are registered as joint holders of any shares any one
can give an effectual receipt for any dividend paid in respect of such shares.

53. Death of a joint holder

     Where two or more persons are registered as joint holders of a share or shares then in the
event of the death of any joint holder or holders the remaining joint holder or holders shall be
absolutely entitled to the said share or shares and the Company shall recognise no claim in respect
of the estate of any joint holder except in the case of the last survivor of such joint holders.

 

 

16

54. Share certificates

     (1) Every Member shall be entitled to a certificate under the seal of the Company (or a
facsimile thereof) specifying the number and, where appropriate, the class of shares held by such
Member and whether the same are fully paid up aid, if not, how much has been paid thereon. The
Board may by resolution determine, either generally or in a particular case, that any or all
signatures on certificates may be printed thereon or affixed by mechanical means.

     (2) The Company shall be under no obligation to complete and deliver a share certificate
unless specifically called upon to do so by the person to whom such shares have been allotted.

     (3) If any such certificate shall be proved to the satisfaction of the Board to have been worn
out, lost, mislaid or destroyed the Board may cause a new certificate to be issued and request an
indemnity for the lost certificate if it sees fit.

55. Calls on shares

     (1) The Board may from time to time make such calls as it thinks fit upon the Members in
respect of any monies unpaid on the shares allotted to or held by such Members and, if a call is
not paid on or before the day appointed for payment thereof, the Member may at the discretion of
the Board be liable to pay the Company interest on the amount of such call at such rate as the
Board may determine, from the date when such call was payable up to the actual date of payment.
The joint holders of a share shall be jointly and severally liable to pay all calls in respect
thereof.

     (2) The Board may, on the issue of shares, differentiate between the holders as to the amount
of calls to be paid and the times of payment of such calls.

56. Forfeiture of shares

     (1) If any Member fails to pay, on the day appointed for payment thereof, any call in respect
of any share allotted to or held by such Member, the Board may, at any time thereafter during such
time as the call remains unpaid, direct the Secretary to forward to such Member a notice in the
form, or as near thereto as circumstances admit, of Form “B” in the Schedule hereto.

     (2) If the requirements of such notice are not complied with, any such share may at anytime
thereafter before the payment of such call and the interest due in respect thereof be forfeited by
a resolution of the Board to that effect, and such share shall thereupon become the property of the
Company and may be disposed of as the Board shall determine.

     (3) A Member whose share or shares have been forfeited as aforesaid shall, notwithstanding
such forfeiture, be liable to pay to the Company all calls owing on such share or shares at the
time of the forfeiture and all interest due thereon.

 

 

17

REGISTER OF MEMBERS

57. Contents of Register of Members

     The Board shall cause to be kept in one or more books a Register of Members and shall enter
therein the following particulars:

	 	(a)	 	the name and address of each Member, the number and, where
appropriate, the class of shares held by such Member and the amount paid or
agreed to be considered as paid on such shares;
	 
	 	(b)	 	the date on which each person was entered in the Register of
Members; and
	 
	 	(c)	 	the date on which any person ceased to be a Member for one year
after such person so ceased.

58. Inspection of Register of Members

     The Register of Members shall be open to inspection at the registered office of the Company on
every business day, subject to such reasonable restrictions as the Board may impose, so that not
less than two hours in each business day be allowed for inspection. The Register of Members may,
after notice has been given by advertisement in an appointed newspaper to that effect, be closed
for any time or times not exceeding in the whole thirty days in each year.

59. Determination of record dates

     Notwithstanding any other provision of these Bye-laws, the Board may fix any date as the
record date for:

	 	(a)	 	determining the Members entitled to receive any dividend; and
	 
	 	(b)	 	determining the Members entitled to receive notice of and to vote
at any general meeting of the Company.

TRANSFER OF SHARES

60. Instrument of transfer

     (1) An instrument of transfer shall be in the form or as near thereto as circumstances admit
of Form “C” in the Schedule hereto or in such other common form as the Board may accept. Such
instrument of transfer shall be signed by or on behalf of the transferor and transferee provided
that, in the case of a fully paid share, the Board may accept the instrument signed by or on behalf
of the transferor alone. The transferor shall be deemed to remain the holder of such share until
the same has been transferred to the transferee in the Register of Members.

 

 

18

     (2) The Board may refuse to recognise any instrument of transfer unless it is accompanied by
[the certificate in respect of the shares to which it relates] and by such other evidence as the
Board may reasonably require to show the right of the transferor to make the transfer.

61. Restriction on transfer

     (1) The Board shall refuse to register a transfer unless all applicable consents,
authorisations and permissions of any governmental body or agency in Bermuda have been obtained.

     (2) If the Board refuses to register a transfer of any share the Secretary shall, within three
months after the date on which the transfer was lodged with the Company, send to the transferor and
transferee notice of the refusal.

62. Transfers by joint holders

     The joint holders of any share or shares may transfer such share or shares to one or more of
such joint holders, and the surviving holder or holders of any share or shares previously held by
them jointly with a deceased Member may transfer any such share to the executors or administrators
of such deceased Member.

TRANSMISSION OF SHARES

63. Representative of deceased Member

     In the case of the death of a Member, the survivor or survivors where the deceased Member was
a joint holder, and the legal personal representatives of the deceased Member where the deceased
Member was a sole holder, shall be the only persons recognised by the Company as having any title
to the deceased Member’s interest in the shares. Nothing herein contained shall release the estate
of a deceased joint holder from any liability in respect of any share which had been jointly held
by such deceased Member with other persons. Subject to the provisions of Section 52 of the Act,
for the purpose of this Bye-law, legal personal representative means the executor or administrator
of a deceased Member or such other person as the Board may in its absolute discretion decide as
being properly authorised to deal with the shares of a deceased Member.

64. Registration on death or bankruptcy

     Any person becoming entitled to a share in consequence of the death or bankruptcy of any
Member may be registered as a Member upon such evidence as the Board may deem sufficient or may
elect to nominate some person to be registered as a transferee of such share, and in such case the
person becoming entitled shall execute in favour of such nominee an instrument of transfer in the
form, or as near thereto as circumstances admit, of Form “D” in the Schedule hereto. On the
presentation thereof to the Board, accompanied by such evidence as the Board may require to prove
the title of the transferor, the transferee shall be registered as a Member but the Board shall, in
either case, have the same right to decline or suspend registration as it would have had in the
case of a transfer of the share by that Member before such Member’s death or bankruptcy, as the
case may be.

 

 

19

DIVIDENDS AND OTHER DISTRIBUTIONS

65. Declaration of dividends by the Board

     The Board may, subject to these Bye-laws and in accordance with Section 54 of the Act, declare
a dividend to be paid to the Members, in proportion to the number of shares held by them, and such
dividend may be paid in cash or wholly or partly in specie in which case the Board may fix the
value for distribution in specie of any assets.

66. Other distributions

     The Board may declare and make such other distributions (in cash or in specie) to the Members
as may be lawfully made out of the assets of the Company.

67. Reserve fund

     The Board may from time to time before declaring a dividend set aside, out of the surplus or
profits of the Company, such sum as it thinks proper as a reserve fund to be used to meet
contingencies or for equalising dividends or for any other special purpose.

68. Deduction of Amounts due to the Company

     The Board may deduct from the dividends or distributions payable to any Member all monies due,
from such Member to the Company on account of calls or otherwise

CAPITALISATION

69. Issue of bonus shares

     (1) The Board may resolve to capitalise any part of the amount for the time being standing to
the credit of any of the Company’s share premium or other reserve accounts or to the credit of the
profit and loss account or otherwise available for distribution by applying such sum in paying up
unissued shares to be allotted as fully paid bonus shares pro rata to the Members.

     (2) The Company may capitalise any sum standing to the credit of a reserve account or sums
otherwise available for dividend or distribution by applying such amounts in paying up in full
partly paid shares of those Members who would have been entitled to such sums if they were
distributed by way of dividend or distribution.

ACCOUNTS AND FINANCIAL STATEMENTS

70. Records of account

     The Board shall cause to be kept proper records of account with respect to all transactions of
the Company and in particular with respect to:

 

 

20

	 	(a)	 	all sums of money received and expended by the Company and the
matters in respect of which the receipt and expenditure relates;
	 
	 	(b)	 	all sales and purchases of goods by the Company; and
	 
	 	(c)	 	the assets and liabilities of the Company.

Such records of account shall be kept at the registered office of the Company or, subject to
Section 83(2) of the Act, at such other place as the Board thinks fit and shall be available for
inspection by the Directors during normal business hours.

71. Financial year end

     The financial year end of the Company may be determined by resolution of the Board and failing
such resolution shall be the last day of February in each year.

72. Financial statements

     Subject to any rights to waive laying of accounts pursuant to Section 88 of the Act, financial
statements as required by the Act shall be laid before the Members in general meeting.

AUDIT

73. Appointment of Auditor

     Subject to Section 88 of the Act, at the annual general meeting or at a subsequent special
general meeting in each year, an independent representative of the Members shall be appointed by
them as Auditor of the accounts of the Company. Such Auditor may be a Member but no Director,
Officer or employee of the Company shall, during his or her continuance in office, be eligible to
act as an Auditor of the Company.

74. Remuneration of Auditor

     The remuneration of the Auditor shall be fixed by the Company in general meeting or in such
manner as the Members may determine.

75. Vacation of office of Auditor

     If the office of Auditor becomes vacant by the resignation or death of the Auditor, or by the
Auditor becoming incapable of acting by reason of illness or other disability at a time when the
Auditor’s services are required, the Board shall, as soon as practicable, convene a special general
meeting to fill the vacancy thereby created.

 

 

21

76. Access to books of the Company

     The Auditor shall at all reasonable times have access to all books kept by the Company and to
all accounts and vouchers relating thereto, and the Auditor may call on the Directors or Officers
of the Company for any information in their possession relating to the books or affairs of the
Company.

77. Report of the Auditor

     (1) Subject to any rights to waive laying of accounts or appointment of an Auditor pursuant to
Section 88 of the Act, the accounts of the Company shall be audited at least once in every year.

     (2) The financial statements provided for by these Bye-laws shall be audited by the Auditor in
accordance with generally accepted auditing standards. The Auditor shall make a written report
thereon in accordance with generally accepted auditing standards and the report of the Auditor
shall be submitted to the Members in general meeting.

     (3) The generally accepted auditing standards referred to in subparagraph (2) of this Bye-law
may be those of a country or jurisdiction other than Bermuda. If so, the financial statements and
the report of the Auditor must disclose this fact and name such country or jurisdiction.

NOTICES

78. Notices to Members of the Company

     A notice may be given by the Company to any Member either by delivering it to such Member in
person or by sending it to such Member’s address in the Register of Members or to such other
address given for the purpose. For the purposes of this Bye-law, a notice may be sent by mail,
courier service, cable, telex, telecopier, facsimile, electronic transmission or other mode of
representing words in a legible and non-transitory form.

79. Notices to joint Members

     Any notice required to be given to a Member shall, with respect to any shares held jointly by
two or more persons, be given to whichever of such persons is named first in the Register of
Members and notice so given shall be sufficient notice to all the holders of such shares.

80. Service and delivery of notice

     Any notice shall be deemed to have been served at the time when the same would be delivered in
the ordinary course of transmission and, in proving such service, it shall be sufficient to prove
that the notice was properly addressed and prepaid, if posted, and the time when it was posted,
delivered to the courier or to the cable company or transmitted by telex, facsimile, electronic
transmission or other method as the case may be.

 

 

22

SEAL OF THE COMPANY

81. The seal

     The seal of the Company shall be in such form as the Board may from time to time determine.
The Board may adopt one or more duplicate seals for use outside Bermuda.

82. Manner in which seal is to be affixed

     The seal of the Company shall not be affixed to any instrument except attested by the
signature of a Director and the Secretary or any two Directors, or some other person appointed by
the Board for the purpose, provided that any Director, or Officer, may affix the seal of the
Company attested by such Director or Officer’s signature only to any authenticated copies of these
Bye-laws, the incorporating documents of the Company, the minutes of any meetings or any other
documents required to be authenticated by such Director or Officer.

WINDING-UP

83. Winding-up/distribution by liquidator

     If the Company shall be wound up the liquidator may, with the sanction of a resolution of the
Members, divide amongst the Members in specie or in kind the whole or any part of the assets of the
Company (whether they shall consist of property of the same kind or not) and may, for such purpose,
set such value as he or she deems fair upon any property to be divided as aforesaid and may
determine how such division shall be carried out as between the Members or different classes of
Members. The liquidator may, with the like sanction, vest the whole or any part of such assets in
trustees upon such trusts for the benefit of the Members as the liquidator shall think fit, but so
that no Member shall be compelled to accept any shares or other securities or assets whereon there
is any liability.

ALTERATION OF BYE-LAWS

84. Alteration of Bye-laws

     No Bye-law shall be rescinded, altered or amended and no new Bye-law shall be made until the
same has been approved by a resolution of the Board and by a resolution of the Members.

*****

***

*

 

 

23

SCHEDULE — FORM A (Bye-law 48)

 

PROXY

I

of

the holder of            share in the above-named Company hereby appoint
           or failing him/her                      or failing him/her
           as my proxy to vote on my behalf at the General Meeting of the Company to be
held on the       day of           ,   19      , and at any adjournment thereof.

Dated this      day of           , 19

*GIVEN under the seal of the company

*Signed by the above-named

 

 

Witness

*Delete as applicable.

 

 

24

SCHEDULE — FORM B (Bye-law 57)

NOTICE OF LIABILITY TO FORFEITURE FOR-NON PAYMENT OF CALL

You have failed to pay the call of [amount of call] made on the ___day of ___, 19___last, in
respect of the [number] share(s) [numbers in figures] standing in your name in the Register of
Members of the Company, on the ___day of ___, 19___last, the day appointed for payment of such
call. You are hereby noted that unless you pay such call together with interest thereon at the
rate of ___per annum computed from the said ___day of ___, 19___last, on or before the
___day of ___, 19___next at the place of business of the said Company the share(s) will be
liable to be forfeited.

Dated this ___day of ___, 19___

[Signature of Secretary]

By order of the Board

 

 

25

SCHEDULE — FORM C (Bye-law 61)

TRANSFER OF A SHARE OR SHARES

	 	 	 
	FOR VALUE RECEIVED

	 	[amount]
	 
	 	 
	 

	 	[transferor]
	 
	 	 
	hereby sell assign and transfer unto

	 	[transferee]
	 
	 	 
	of

	 	[address]
	 
	 	 
	 

	 	[number of shares]
	 
	 	 
	shares of

	 	[name of Company]

	 	 	 	 	 	 	 	 	 
	Dated

	 	 	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(Transferor)	 	 

In the presence of:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	          (Witness)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Transferee)	 	 
	In the presence of:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	          (Witness)	 	 	 	 	 	 

 

 

26

SCHEDULE — FORM D (Bye -law 65)

TRANSFER BY A PERSON BECOMING ENTITLED ON DEATH OF A MEMBER

I/We having become entitled in consequence of the death of [name of the deceased Member] to
[number] share(s) numbered [number in figures] standing in the register of members of [Company] in
the name of the said [name of deceased Member] instead of being registered myself/ourselves elect
to have [name of transferee] (the “Transferee”) registered as a transferee of such share(s) and
I/we do hereby accordingly transfer the said share(s) to the Transferee to hold the same unto the
Transferee his or her executors administrators and assigns subject to the conditions on which the
same were held at the time of the execution thereof; and the Transferee does hereby agree to take
the said share(s) subject to the same conditions.

WITNESS our hands this _____ day of _____, 19 __

	 	 	 
	Signed by the above-named

	 	)
	 
	 	 
	[person or persons entitled]

	 	)
	 
	 	 
	in the presence of:

	 	)
	 
	 	 
	Signed by the above-named

	 	)
	 
	 	 
	[transferee]

	 	)
	 
	 	 
	in the presence of:

	 	)<PAGE>
                                                                     EXHIBIT 4.3

                   SECOND AMENDMENT TO SHAREHOLDERS' AGREEMENT

     This Second Amendment (this "Amendment") is made as of August 25, 2005 to
the Shareholders' Agreement, dated as of September 17, 1998, as amended, by and
among Dover Saddlery, Inc., a Delaware corporation (the "Company"), a majority
in interest of the Purchasers (as defined therein) and a majority in interest of
the Sellers (as defined therein) (as amended, the "Shareholders' Agreement").
Capitalized terms used, but not otherwise defined, herein shall have the
respective meanings assigned to such terms in the Shareholders' Agreement.

     WHEREAS, the Company and the Shareholders entered into the Shareholders'
Agreement and now the parties wish to amend certain provisions of the
Shareholders' Agreement;

     WHEREAS, Section 16 of the Shareholders' Agreement allows for such
amendments by written consent of the Company, a majority in interest of the
Purchasers and a majority in interest of the Sellers;

     NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Shareholders' Agreement is hereby amended as follows:

     1.   The first paragraph (the preamble) of the Shareholders' Agreement
          shall be amended by including Citizens in the definition of the term
          "Sellers" if and when Citizens shall become a party to the
          Shareholders' Agreement by executing an Instrument of Accession in the
          form attached hereto as Exhibit A, provided that such Instrument of
          Accession is accepted and executed by the Company.

     2.   The form of instrument of accession attached to this Amendment as
          Exhibit A shall become Exhibit A to the Shareholders' Agreement.

     3.   A new definition of the term "Change in Control" shall be added to
          Section 1(a) of the Shareholders' Agreement as follows:

               ""Change in Control" shall mean the first to occur of the
               following (i) the merger or consolidation of the Company with or
               into another corporation or entity where the Company is not the
               surviving entity, (ii) the sale of all or substantially all of
               the assets of the Company, (iii) the sale of voting securities of
               the Company to an acquiror which, immediately prior to the
               transaction, held less than 10% of the voting control of the
               Company, in a transaction or series of transactions after which
               such acquiror owns, directly or indirectly, in excess of 50% of
               the voting control of the Company, (iv) a transaction or related
               series of transactions or reorganization of the Company in which
               the holders of the Company's capital stock immediately prior to
               the transaction or related series of transactions hold less than
               a majority of the capital
<PAGE>
               stock of the surviving company, and (v) a liquidation or winding
               up of the Company."

     4.   The definition of the term "Citizens" in Section 1(a) of the
          Shareholders' Agreement shall be deleted and replaced in its entirety
          with the following sentence:

               ""Citizens" shall mean Citizens Ventures, Inc."

     5.   The definitions of the terms "Citizens Agreement" and "Citizens
          Stockholders and Registration Rights Agreement" in Section 1(a) of the
          Shareholders' Agreement shall each be deleted.

     6.   The definition of "Common Stock" in Section 1(a) of the Shareholders'
          Agreement shall be deleted and replaced in its entirety with the
          following definition:

               "Common Stock" shall mean the class A common stock of the
               Company, par value $0.0001 per share, and shall include any stock
               into which such Common Stock shall have been changed and any
               stock resulting from any reclassification of such Common Stock."

     7.   The definition of "Fair Market Value" in Section 1(a) of the
          Shareholders' Agreement shall be deleted and replaced in its entirety
          with the following definition:

               "Fair Market Value" as of any date shall mean the per share fair
               market value of the capital stock of the Company or any
               applicable portion thereof, determined in good faith by valuing
               the Company assuming the Company is sold to an independent third
               party as a going concern with no discount for lack of liquidity
               of the Company's common stock or the minority ownership discount
               and assuming exercise of all "in the money" warrants and any
               other rights to purchase shares which may be outstanding (i.e.
               warrants and other rights where the strike price is less than the
               Fair Market Value of the shares that issue on exercise), as
               determined by an independent investment banking firm reasonably
               acceptable to the Company and the interested Shareholder(s);
               provided that, in the event the Company and the interested
               Shareholder(s) cannot agree to appoint a single such firm within
               10 days of the date first giving rise to the need to appoint such
               a firm, the Company on the one hand, and the interested
               Shareholder(s) on the other hand, shall each select one such firm
               within 5 days following the expiration of such 10 day period, and
               the two firms so selected shall promptly select a third such firm
               which firm shall be responsible for the determination of the fair
               market value of the Common Stock The
<PAGE>
               Company shall pay all of the fees, costs and expenses of all such
               firms."

     8.   The definition of the term "Liquidity Event" in Section 1(a) of the
          Shareholders' Agreement shall be deleted and replaced in its entirety
          with the following definition:

               ""Liquidity Event" shall mean the closing of an initial public
               offering of the Common Stock of the Company which yields
               aggregate gross proceeds to the Company and selling shareholders
               of not less than $25,000,000."

     9.   The definition of the term "Put Period" in Section 1(a) of the
          Shareholders' Agreement shall be deleted and replaced in its entirety
          with the following definition:

               ""Put Period" shall mean the period (i) commencing at the earlier
               of (A) 9:00 a.m., Eastern Standard Time, on December 31, 2006 or
               (B) a Change in Control, and (ii) ending at the earlier of (A)
               5:00 p.m., Eastern Standard Time, on December 31, 2007 or (B) a
               Liquidity Event."

     10.  Section 2(a)(ii)(1) of the Shareholders' Agreement shall be deleted
          and replaced in its entirely with the following:

               "(1) at all times prior to a Liquidity Event, two individuals
               designated by holders of a majority in interest of all shares of
               Common Stock then held by JP, DP and MP."

     11.  Section 2(a)(ii)(3) of the Shareholders' Agreement shall be deleted
          and replaced in its entirely with the following:

               "(3) an individual (the "Fifth Director") mutually agreeable to
               (A) Day and (B) the holders of a majority in interest of all
               shares of Common Stock then held by JP, DP and MP."

     12.  Section 2(a)(iii) of the Shareholders' Agreement shall be deleted and
          replaced in its entirely with the following:

               "(iii) in the event the Shareholders vote to increase the size of
               the Board in order to add one or more independent directors, the
               size of the Board may be so increased and such independent
               members of the Board (each an "Independent Director") shall be
               elected by the Shareholders."
<PAGE>
     13.  Section 2(a)(iv) of the Shareholders' Agreement shall be deleted and
          replaced in its entirely with the following:

               "(iv) the removal from the Board (with or without cause) of any
               representative designated hereunder by the Person(s) entitled to
               make such designation hereunder, upon such Person's written
               request for removal as to its designee, but only upon such
               written request; provided that (i) no director may be removed by
               any Person(s) not entitled to designate such director hereunder,
               except that (ii) any Independent Director may be removed with
               cause or without cause by a majority vote of the Shareholders."

     14.  Section 2(a)(vi) of the Shareholders' Agreement shall be deleted and
          replaced in its entirety with following:

               "(vi) upon the resignation, removal or death of the Fifth
               Director, his replacement will be filled by an individual
               approved by the vote of a majority of the members of the Board
               who have been designated pursuant to clauses 2(a)(ii)(1) and
               2(a)(ii)(2)."

     15.  Section 2(f) shall be added to the Shareholders' Agreement and shall
          read as follows:

               "(f) Until a Liquidity Event shall have occurred, the Company
               shall permit a Person designated by Citizens to attend, but not
               vote at, all meetings of the Board and shall provide notice to
               such Person of each meeting of the Board as provided to other
               directors."

     16.  Section 3 of the Shareholders' Agreement shall be deleted in its
          entirety and replaced with the following:

               "Section 3. Certain Consents and Rights of Sellers (other than
               Citizens). Notwithstanding anything in this Agreement to the
               contrary, for purposes of this Section 3, Citizens shall not be
               included in the definition of "Seller". At all times prior to the
               earlier to occur of (a) a Liquidity Event, or (b) (1) in the case
               of clauses (i) and (ii) of this Section 3, the earliest date on
               which none of the individual Sellers remains a member of the
               Board (other than by reason of the death, disability or
               incapacity of all of the Sellers) and (2) in the case of clauses
               (iii), (iv) and (v), the first date on which none of the
               individual Sellers remains a Shareholder, the consent of the
               Sellers (which consent will be deemed to have been obtained if,
               within ten days following a request therefore, a majority in
               interest of the Sellers shall have (x) consented in writing to,
               (y) voted in favor of, or (z) not
<PAGE>
               objected in writing to or voted against, such request) must be
               obtained with respect to the taking of any of the following
               actions by the Company:

               (i) an acquisition which is not a Permitted Acquisition;

               (ii) the guarantee by the Company of the obligations of third
               parties, except as permitted by the Senior Loan Documents;

               (iii) the issuance of any new equity securities other than (A)
               issuances pursuant to the Company's incentive plans authorized by
               Section 13 hereof, (B) pursuant to offerings to which the
               Sellers' preemptive rights under this Agreement are applicable,
               and (C) pursuant to stock for stock mergers with an unrelated
               third party where such securities are issued at a value which
               reasonably approximates Fair Market Value, provided that if, for
               the purposes of this clause (iii)(C) of Section 3 only, the
               Company is in compliance with all of its financial covenants
               under the Senior Loan Documents, the Sellers shall be deemed to
               have given their consent (as a Seller but not as a director of
               the Company) to such issuance if such issuance was approved by
               the Board;

               (iv) a merger of the Company with or into an entity controlled by
               Day or the Company or under common control with the Company or
               which is not an Unrelated Person; and

               (v) an acquisition by the Company of the stock or assets of an
               entity controlled by Day or the Company or under common control
               with the Company or which is not an Unrelated Person.

               The consent rights set forth in this Section 3 are personal to
               Sellers and may not be transferred to any Person other than a
               Permitted Transferee.
<PAGE>
     17.  The following Section 3.1 shall be inserted immediately following the
          new Section 3 of the Shareholders' Agreement:

               "Section 3.1. Certain Consents and Rights of Citizens. At all
               times prior to the earlier to occur of (a) a Liquidity Event, or
               (b) (1) in the case of clauses (i) and (ii) of this Section 3.1,
               the earliest date on which Citizens no longer has observation
               rights on the Board and (2) in the case of clauses (iii), (iv)
               and (v), the first date on which Citizens does not remain a
               Shareholder, the consent of Citizens must be obtained with
               respect to the taking of any of the following actions by the
               Company:

               (i) an acquisition which is not a Permitted Acquisition;

               (ii) the guarantee by the Company of the obligations of third
               parties, except as permitted by the Senior Loan Documents;

               (iii) the issuance of any new equity securities other than (A)
               issuances pursuant to the Company's incentive plans authorized by
               Section 13 hereof, (B) pursuant to offerings to which Citizens'
               preemptive rights under this Agreement are applicable, and (C)
               pursuant to stock for stock mergers with an unrelated third party
               where such securities are issued at a value which reasonably
               approximates Fair Market Value, provided that if, for the
               purposes of this clause (iii)(C) of Section 3.1 only, the Company
               is in compliance with all of its financial covenants under the
               Senior Loan Documents, Citizens shall be deemed to have given its
               consent to such issuance if such issuance was approved by the
               Board;

               (iv) a merger of the Company with or into an entity controlled by
               Day or the Company or under common control with the Company or
               which is not an Unrelated Person; and

               (v) an acquisition by the Company of the stock or assets of an
               entity controlled by Day or the Company or under common control
               with the Company or which is not an Unrelated Person.

               The consent rights set forth in this Section 3.1 are personal to
               Citizens and may not be transferred to any Person other than a
               Permitted Transferee.
<PAGE>
     18.  The following phrase in Section 6(c) of the Shareholders' Agreement
          shall be deleted:

               ", Citizens (to the extent it is electing to sell shares pursuant
               to any tag along right it may have),"

     19.  Section 10(b)(i) of the Shareholders' Agreement shall be deleted and
          replaced in its entirety with the following:

               "(i) The Sellers hereby waive any requirement of the Company to
               give the Sellers notice of the currently proposed offering, as of
               the date of this Amendment, of the Company's common stock in an
               underwritten public offering; the Company shall not be required
               to give notice to the Sellers or include the Common Stock of the
               Sellers in any registration if the proposed registration is a
               registration made after the Company has registered Common Stock
               under the Securities Act and such subsequent registration is (A)
               of a stock option or other compensation plan or dividend
               reinvestment plan or a registration of Common Stock issued or
               issuable pursuant to any such plan, or (B) a registration of
               Common Stock proposed to be issued in exchange for securities or
               assets of, or in connection with a merger or consolidation with,
               another Person;"

     20.  Section 10(c) of the Shareholders' Agreement shall be deleted and
          replaced in its entirety with the following:

               "The Sellers shall be afforded, and are hereby granted the right
               to receive the benefit of the most favorable "piggyback"
               registration rights granted or afforded to any other
               Shareholder."

     21.  The following phrase in Section 11(a) and in Section 12(a) of the
          Shareholders' Agreement shall be deleted:

               "and the Citizens Agreement"

     22.  Section 16 of the Shareholders' Agreement shall be amended by adding
          the following phrase to the end of the first sentence thereof:

               ", provided, however, that the written agreement of Citizens
               shall also be required for any amendment resulting in, or that
               would result in, an adverse effect on the rights of Citizens (i)
               set forth in Section 2(f), Section 6, Section 9 or Section 11 or
               (ii) in a manner that is different from the other Shareholders
               who are also adversely affected by such amendment."
<PAGE>
     23.  The contact information set forth in Section 23 of the Shareholders'
          Agreement with respect to the Sellers shall be amended by adding
          thereto the following:

               "Citizens Ventures, Inc.,
               28 State Street, 15th Floor
               Boston, Massachusetts 02109
               Attention: Bradley Stewart
               Telecopy No.: 617-725-5630"

     24.  A new section shall be added to the end of the Shareholders' Agreement
          that reads as follows:

               "Section 28. Termination Upon a Liquidity Event. Upon the
               consummation of a Liquidity Event, this Agreement and all rights
               and obligations of all parties hereto as set forth in this
               Agreement shall immediately terminate."

     25.  Other than the changes set forth above, the terms of the Shareholders'
          Agreement shall remain in full force and effect and the undersigned
          hereby acknowledge the continued legal and binding effect of the
          Shareholders' Agreement and all of its terms and provisions.

                  [remainder of page intentionally left blank]
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment
to Shareholders' Agreement as of the date first written above.

                                        COMPANY:

                                        DOVER SADDLERY, INC.

                                        By: /s/ Stephen L. Day
                                            ------------------------------------
                                        Name: Stephen L. Day
                                        Title: President

                                        PURCHASERS:

                                        /s/ Stephen L. Day
                                        ----------------------------------------
                                        Stephen L. Day

                                        /s/ Jonathan A.R. Grylls
                                        ----------------------------------------
                                        Jonathan A.R. Grylls

                                        ----------------------------------------
                                        David Post

                                        /s/ Donald Motsenbocker
                                        ----------------------------------------
                                        Donald Motsenbocker

                                        ----------------------------------------
                                        Thomas Gaines
<PAGE>
                                        SELLERS:

                                        /s/ James F. Powers
                                        ----------------------------------------
                                        James F. Powers

                                        /s/ David J. Powers
                                        ----------------------------------------
                                        David J. Powers

                                        /s/ Michele R. Powers
                                        ----------------------------------------
                                        Michele R. Powers
<PAGE>
                                                                       Exhibit A

                             INSTRUMENT OF ACCESSION

     The undersigned, Citizens Ventures, Inc., as a holder of 411,111 shares of
the Class A Common Stock, $0.0001 par value per share, of Dover Saddlery, Inc.,
a Delaware corporation (the "Company"), hereby agrees that by execution hereof
the undersigned hereby agrees to become a party to, and become subject to the
benefits and burdens set forth in, the Shareholders' Agreement, dated September
17, 1998, by and among the Company, the Shareholders (as defined therein), as
amended by the First Amendment to Shareholders' Agreement, dated as of August
29, 2003 and by the Second Amendment to Shareholders' Agreement, dated as of
August 25, 2005 (as so amended, the "Shareholders' Agreement") as a "Seller" (as
defined therein). This Instrument of Accession shall take effect and shall
become a part of the Shareholders' Agreement immediately upon execution by the
undersigned and acceptance by execution thereof by the Company.

     Executed as of the date set forth below under the laws of the Commonwealth
of Massachusetts.

                                        CITIZENS VENTURES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Address:
                                                 -------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

                                        Date: [____________], 2005

Agreed and Accepted:
DOVER SADDLERY, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

Date: [____________], 2005

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