Document:

EX-10.1

Exhibit 10.1

FIRST AMENDED BY-LAWS

OF

LAKES ENTERTAINMENT, INC.

ARTICLE 1

OFFICES

     1.1 Registered Office. The registered office of the Corporation shall be located
within the State of Minnesota as set forth in the Articles of Incorporation. The Board of
Directors shall have authority to change the registered office of the Corporation and a statement
evidencing any such change shall be filed with the Secretary of State of Minnesota as required by
law.

     1.2 Offices. The Corporation may have other offices, including its principal business
office, either within or without the State of Minnesota.

ARTICLE 2

CORPORATE SEAL

     2.1 Corporate Seal. The Board of Directors shall determine whether or not the
Corporation will adopt a corporate seal. If a corporate seal is adopted, inscribed on the
corporate seal shall be the name of the Corporation and the words “Corporate Seal,” and when so
directed by the Board of Directors, a duplicate of the seal may be kept and used by the Secretary
of the Corporation.

ARTICLE 3

SHAREHOLDERS

     3.1 Regular Meetings. Regular meetings of the shareholders shall be held at the
Corporation’s registered office or at such other place within or without the State of Minnesota as
is designated by the Board of Directors. Regular meetings may be held annually or on a less
frequent periodic basis, as established by a resolution of the Board of Directors, or may be held
on call by the Board of Directors from time to time as and when the Board determines. At each
regular meeting, the shareholders shall elect, as provided in the Articles of Incorporation and
these By-laws, qualified successors for directors who serve for an indefinite term or whose terms
have expired or are due to expire within six (6) months after the date of the meeting, and may
transact such other business which properly comes before them. Notwithstanding the foregoing, if a
regular meeting of the shareholders has not been held for a period of fifteen (15) months, a
shareholder or group of shareholders holding three percent (3%) or more of the issued and

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outstanding voting shares of the Corporation may demand that a regular meeting of the
shareholders be held by giving written notice to the President or Treasurer of the Corporation.
Within thirty (30) days after receipt of the notice, the Board shall cause a regular meeting of the
shareholders to be called and held within ninety (90) days after receipt of the notice. Any
regular meeting held pursuant to such a demand by a shareholder or shareholders shall be held
within the county where the principal executive office of the Corporation is located.

     3.2 Special Meeting. Special meetings of the shareholders may be called by the Chief
Executive Officer, by a Vice-President in the absence of the Chief Executive Officer, by the Chief
Financial Officer, or by the Board of Directors or any two or more members thereof. Special
meetings may also be called by one or more shareholders holding ten percent (10%) or more of the
issued and outstanding voting shares of the Corporation by delivering to the Chief Executive
Officer or Chief Financial Officer a written demand for a special meeting, which demand shall state
the purposes of such meeting. Within thirty (30) days after receipt of the written demand, the
Board of Directors shall call a special meeting of the shareholders to be held within ninety (90)
days after receipt of the written demand. Any special meeting held pursuant to such written demand
shall be held within the county where the principal executive office of the Corporation is located.

     3.3 Quorum. Business may be transacted at any duly held meeting of the shareholders
at which a quorum is present. The holders of a majority of the voting power of the shares entitled
to vote at a meeting are a quorum. The shareholders present at the meeting may continue to
transact business until adjournment, even though a number of shareholders withdraw leaving less
than a quorum. If a quorum is not present at any meeting, those shareholders present have the
power to adjourn the meeting from time to time until the requisite number of voting shares are
present. The date, time and place of the reconvened meeting shall be announced at the time of
adjournment and notice of the reconvened meeting shall be given to all shareholders who were not
present at the time of adjournment. Any business which might have been transacted at the meeting
which was adjourned may be transacted at the reconvened meeting.

     3.4 Voting. At each shareholders’ meeting, every shareholder having the right to vote
is entitled to vote in person or by proxy. Shareholders have one (1) vote for each share having
voting power standing in their name on the books of the Corporation, unless otherwise provided in
the Articles of Incorporation, or these By-Laws, or in the terms of the shares. All elections and
questions shall be decided by a majority vote of the number of shares entitled to vote and
represented at any meeting at which there is a quorum, except as otherwise required by statute, the
Articles of Incorporation, these By-Laws, or by agreement among the shareholders.

     3.5 Notice of Meeting. Notice of regular or special meetings of the shareholders
shall be given by an officer or agent of the Corporation to each shareholder shown on the books of
the Corporation to be the holder of record of shares entitled to vote at the meeting. If the
notice is to be mailed, then the notice must be mailed to each shareholder at the shareholder’s
address as shown on the books of the Corporation at least five (5) calendar days prior to the
meeting. If the notice is not mailed, then the notice must be given at least forty-eight (48)
hours prior to the meeting. The notice must contain the date, time and place of the meeting, and
in the case of a special meeting, must also contain a statement of the purpose of the meeting. In
no event shall notice be given more than sixty (60) days prior to the meeting. If a plan of
merger, exchange,

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sale or other disposition of all or substantially all of the assets of the Corporation is to
be considered at a meeting of shareholders, notice of such meeting shall be given to every
shareholder, whether or not entitled to vote, not less than fourteen (14) days prior to the date of
such meeting.

     3.6 Proxies. At all meetings of shareholders, a shareholder may vote by proxy
executed in writing by the shareholder or by his duly authorized attorney-in-fact. Such proxies
must be filed with an officer of the Corporation before or at the time of the meeting. No proxy
shall be valid after eleven (11) months from the date of its execution, unless otherwise provided
in the proxy.

     3.7 Closing Transfer Books. The Board of Directors may close the stock transfer books
for a period of time which does not exceed sixty (60) days preceding any of the following: the
date of any meeting of shareholders; the payment of dividends; the allotment of rights; or the
change, conversion, or exchange of shares.

     3.8 Record Date. In lieu of closing the stock transfer books, the Board of Directors
may fix in advance a date, not exceeding sixty (60) days preceding the date of any of the events
described in Section 3.7, as a record date for the determination of which shareholders are entitled
(i) to notice of and to vote at any meeting and any meeting subsequent to adjournment, (ii) to
receive any dividend or allotment of rights, or (iii) to exercise the rights in respect to any
change, conversion, or exchange of shares. If a record date is fixed by the Board of Directors,
only those shareholders of record on the record date shall be entitled to receive notice of and to
vote at the meeting and any meeting subsequent to adjournment or to exercise such rights, as the
case may be, notwithstanding any transfer of any shares on the books of the Corporation after the
record date so fixed. If the share transfer books are not closed and no record date is fixed for
determination of the shareholders of record, then the date on which notice of the meeting is mailed
or the date of adoption of a resolution of the Board of Directors declaring a dividend, allotment
of rights, change, conversion or exchange of shares, as the case may be, shall be the record date
for such determination.

     3.9 Presiding Officer. The Chief Executive Officer of the Corporation shall preside
over all meetings of the shareholders. In the absence of the Chief Executive Officer, the
shareholders may choose any person present to act as presiding officer.

     3.10 Written Action by Shareholders. Any action which may be taken at a meeting of
the shareholders may be taken without a meeting and notice if a consent in writing, setting forth
the action so taken, is signed by all of the shareholders entitled to notice of a meeting for such
purpose.

     3.11 Advance Notice of Shareholder Proposals. At any regular meeting of shareholders,
only such business (other than the nomination and election of directors, which shall be subject to
Section 3.12) may be conducted as shall be appropriate for consideration at the meeting of
shareholders and as shall have been brought before the meeting (i) by or at the direction of the
Board of Directors or (ii) by any shareholder entitled to vote at the meeting who complies with the
notice procedures hereinafter set forth in this Section 3.11.

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	 	(a)	 	Timing of Notice. For such business to be properly brought before any
regular meeting by a shareholder, the shareholder must be a beneficial owner both at
the time of proposal and the time of the meeting and have given timely notice thereof
in writing, not less than 90 days before the first anniversary of the date of the
preceding year’s annual meeting; provided, however, that (i) in the event the date of
the annual meeting is more than 30 days before or after such anniversary date, notice
by a shareholder shall be timely only if so received not less than 90 days before such
annual meeting or, if later, within 10 days after the first public announcement of the
date of such annual meeting, and (ii) with respect to the Corporation’s 2009 annual
meeting of shareholders, notice by a shareholder shall be timely only if so received
within 10 days after the first public announcement of the date of such annual meeting.
To be timely, a shareholder’s notice of any such business to be conducted at a regular
meeting other than an annual meeting must be delivered to the Secretary of the
Corporation or mailed and received at the principal executive office of the Corporation
within 10 days after the first public announcement of the date of such regular meeting.
Except to the extent otherwise required by law, the adjournment of a regular meeting
of shareholders shall not commence a new time period for the giving of a shareholder’s
notice as required above. For the purposes of this Section 3.11 and Section 3.12
below, “public announcement” means disclosure (i) when made in a press release reported
by the Associated Press or comparable national news service, (ii) when filed in a
document publicly filed by the Corporation with the Securities and Exchange Commission,
or (iii) when mailed as notice of the meeting as provided in Section 3.5 above.
	 
	 	(b)	 	Content of Notice. A shareholder’s notice to the corporation shall set
forth as to each matter the shareholder proposes to bring before the regular meeting:

(i) a brief description of the business desired to be brought before the meeting and
the reasons for conducting such business at the meeting;

(ii) the name and address, as they appear on the corporation’s books, of the
shareholder proposing such business;

(iii) the class or series (if any) and number of shares (including, without
limitation, derivative securities, swaps or other transaction or series of
transactions engaged in, directly or indirectly, by such shareholder the purpose or
effect of which is to provide such shareholder with economic risk similar to ownership
of shares of any class or series of the Corporation) that are owned beneficially or of
record by the shareholder;

(iv) a description of all arrangements or understandings between such shareholder and
any other person or persons (including their names) in connection with the proposal of
such business by such shareholder and any material interest of the shareholder in such
business; and

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(v) a representation that the shareholder is a holder of record of shares entitled to
vote at the meeting and intends to appear in person or by proxy at the meeting to make
the proposal.

	 	(c)	 	Consequences of Failure to Satisfy Advance Notice Procedures. The
officer of the Corporation chairing the meeting shall, if the facts warrant, determine
that business was not properly brought before the meeting in accordance with the
procedures described in this Section 3.11 and, if such officer should so determine,
such officer shall so declare to the meeting, and any such business not properly
brought before the meeting shall not be transacted. Nothing in this Section 3.11 shall
be deemed to preclude discussion by any shareholder of any business properly brought
before the meeting in accordance with these By-Laws.

     3.12 Nomination of Director Candidates. Only persons who are nominated in accordance
with the procedures set forth in this Section 3.12 shall be eligible for election as directors.
Nominations of persons for election of the Board of Directors may be made at a meeting of
shareholders (i) by or at the direction of the Board of Directors or a committee designated by the
Board of Directors or (ii) by any shareholder of the Corporation entitled to vote for the election
of directs at the meeting who complies with the notice procedures set forth in this Section 3.12.

	 	(a)	 	Timing of Notice. Nominations by shareholders shall be made pursuant
to timely notice in writing to the Secretary of the Corporation. To be timely, the
shareholder must be a beneficial owner both at the time of nomination and the time of
the meeting and have given timely notice thereof in writing, not less than 90 days
before the first anniversary of the date of the preceding year’s annual meeting;
provided, however, that (i) in the event the date of the annual meeting is more than 30
days before or after such anniversary date, notice by a shareholder shall be timely
only if so received not less than 90 days before such annual meeting or, if later,
within 10 days after the first public announcement of the date of such annual meeting,
and (ii) with respect to the Corporation’s 2009 annual meeting of shareholders, notice
by a shareholder shall be timely only if so received within 10 days after the first
public announcement of the date of such annual meeting. If a special meeting of
shareholders is called in accordance with Section 3.2 for the purpose of electing one
or more members to the Corporation’s Board of Directors, for a shareholder’s notice of
nominations to be timely it must be delivered to the Secretary of the Corporation, or
mailed and received at the principal executive office of the Corporation within 10 days
after the first public announcement of the date of such special meeting. Except to the
extent otherwise required by law, the adjournment of a regular meeting of shareholders
shall not commence a new time period for the giving of a shareholder’s notice as
required above.

	 	(b)	 	Content of Notice. A shareholder’s notice to the Corporation of
nominations for a regular or special meeting of shareholders shall set forth:

(i) as to each person whom the shareholder proposes to nominate for election or
re-election as a director:

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(A) such person’s name, age, business address and
residence address and principal occupation or employment;

(B) the class and series (if any) and number of shares
(including, without limitation, derivative securities, swaps or other
transaction or series of transactions engaged in, directly or indirectly,
by such person the purpose or effect of which is to provide such person
with economic risk similar to ownership of shares of any class or series
of the Corporation) that are owned beneficially or of record by the
person;

(C) all other information relating to such person that
is required to be disclosed in solicitations of proxies for election of
directors, or that is otherwise required, pursuant to the Securities
Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder (collectively the “Exchange Act”);

(D) such person’s written consent to being named in the
proxy statement as a nominee and to serving as a director if elected; and

(E) a representation from such person that such person
is not and will not become a party to any agreement, arrangement, or
understanding with, and has not given any commitment or assurance to, any
person or entity (1) as to how such person, if elected as a director of
the Corporation will act of vote on any issue or question or (2) that
could limit or interfere with such person’s ability to comply, if elected
as a director of the Corporation, with such person’s fiduciary duties
under applicable law.

(ii) as to the shareholder giving the notice:

(A) the name and address, as they appear on the Corporation’s books, or such
shareholder;

(B) the class or series (if any) and number of shares (including, without
limitation, derivative securities, swaps or other transaction or series of
transactions engaged in, directly or indirectly, by such person the purpose
or effect of which is to provide such person with economic risk similar to
ownership of shares of any class or series of the Corporation) that are
owned beneficially or of record by the shareholder;

(C) a description of all arrangement or understandings between such
shareholder and each proposed nominee and any other person or persons
(including their names) pursuant to which the nomination(s) are to be made
by such shareholder;

(D) all other information relating to such shareholder that is required to
be disclosed in solicitations of proxies for election of directors, or that
is otherwise required, pursuant to the Exchange Act; and

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(E) a representation that the shareholder is a holder of record of shares of
the Corporation entitled to vote for the election of directors and intends
to appear in person or by proxy at the meeting to nominate the person or
persons specified in the notice.

At the request of the Board of Directors, any person nominated by the Board of
Directors for election as a director shall furnish to the Secretary of the Corporation
the information required to be set forth in a shareholder’s notice of nomination that
pertains to a nominee.

	 	(c)	 	Consequences of Failure to Satisfy Nominating Procedures. The officer
of the Corporation chairing the meeting shall, if the facts warrant, determine that a
nomination was not made in accordance with the procedures prescribed in this Section
3.12 and, if such officer should so determine, such officer shall so declare to the
meeting, and the defective nomination shall be disregarded.
	 
	 	(d)	 	Compliance with Law. Notwithstanding the foregoing provisions of
Sections 3.11 and 3.12 above, a shareholder shall also comply with all applicable
requirements of Minnesota law and the Exchange Act with respect to the matters set
forth in such Sections. For purposes of clarity, the requirements of Sections 3.11 and
3.12 apply to proposals made or brought or sought to be made or brought at any regular
meeting, whether or not such proposals are, or are required to be, included in the
Corporation’s proxy statement pursuant to the federal proxy rules set forth in the
Exchange Act.

ARTICLE 4

DIRECTORS

     4.1 General Powers. The property, affairs and business of the Corporation shall be
managed by the Board of Directors which shall initially consist of eight (8) directors. In
addition to the powers and authorities by these By-Laws expressly conferred upon it, the Board may
exercise all such powers of the Corporation and do all such lawful acts and things as are not by
law, the Articles of Incorporation or these By-Laws directed or required to be exercised or done by
the shareholders.

     4.2 Number. The number of directors may be either increased or decreased by
resolution of the shareholders at their regular meetings or at a special meeting called for that
purpose. The number of directors may be increased by resolution adopted by the affirmative vote of
a majority of the Board of Directors. Any newly created directorships established by the Board of
Directors shall be filled by a majority vote of the directors serving at the time of increase.

     4.3 Qualifications and Term of Office. Directors need not be shareholders or
residents of the State of Minnesota. The Board of Directors shall be elected by the shareholders
at their regular meeting and at any special shareholders’ meeting called for that purpose. A
director shall hold office until the annual meeting for the year in which his or her term expires

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and until the director’s successor is elected and qualifies, or until the earlier death,
resignation, removal, or disqualification of the director.

     4.4 Quorum. A majority of the Board of Directors constitutes a quorum for the
transaction of business; provided, however, that if any vacancies exist by reason of death,
resignation, or otherwise, a majority of the remaining directors constitutes a quorum. If less
than a quorum is present at any meeting, a majority of the directors present may adjourn the
meeting from time to time without further notice.

     4.5 Action of Directors. The acts of a majority of the directors present at a meeting
at which a quorum is present are the acts of the Board of Directors.

     4.6 Meetings. Meetings of the Board of Directors may be held from time to time at any
place, within or without the State of Minnesota, that the Board of Directors may select. If the
Board of Directors fails to select a place for a meeting, the meeting shall be held at the
principal executive office of the Corporation. The Chief Executive Officer or any director may
call a meeting of the Board of Directors by giving notice to all directors of the date, time and
place of the meeting. If the notice is to be mailed, then the notice must be mailed to each
director at least five (5) calendar days prior to the meeting. If the notice is not to be mailed,
then the notice must be given at least forty-eight (48) hours prior to the meeting. If the date,
time and place of the meeting of the Board of Directors has been announced at a previous meeting of
the Board of Directors, no additional notice of such meeting is required, except that notice shall
be given to all directors who were not present at the previous meeting. Notice of the meeting of
the Board of Directors need not state the purpose of the meeting. A director may orally or in
writing waive notice of the meeting. Attendance by a director at a meeting of the Board of
Directors also constitutes a waiver of notice of such meeting, unless the director objects at the
beginning of the meeting to the transaction of business because the meeting allegedly is not
lawfully called or convened and such director does not participate thereafter in the meeting.

     4.7 Meeting by Electronic Communications. A conference among directors by any means
of communication through which the directors may simultaneously hear each other during the
conference constitutes meeting of the Board of Directors if the number of directors participating
in the conference would be sufficient to constitute a quorum at a meeting, and if the same notice
is given of the conference as would be required for a Board of Directors meeting under these
By-Laws. In any Board of Directors meeting, a director may participate by any means of
communication through which the director, other directors so participating, and all directors
physically present at the meeting may simultaneously hear each other during the meeting.

     4.8 Compensation. Directors may receive such compensation as may be determined from
time to time by resolution of the Board of Directors.

     4.9 Committee. By the affirmative vote of a majority of the directors, the Board of
Directors may establish a committee or committees having the authority of the Board of Directors in
the management of the business of the Corporation to the extent provided in the resolution adopted
by the Board of Directors. A committee shall consist of one or more persons, who need not be
directors, that have been appointed by affirmative vote of a majority of the

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directors present. A majority of the members of the committee present at any meeting of the
committee is a quorum for the transaction of business, unless a larger or smaller proportion or
number is provided in the resolution approved by the Board of Directors. Minutes of any meetings
of committees created by the Board of Directors shall be available upon request to members of the
committee and to any director.

     4.10 Action by Absent Director. A director may give advance written consent or
opposition to a proposal to be acted upon at a Board of Directors meeting by giving a written
statement to the Chief Executive Officer, Chief Financial Officer, or any director which sets forth
the proposal to be voted on and contains a statement of the director’s voting preference with
regard to the proposal. An advance written statement does not constitute presence of the director
for purposes of determining a quorum, but the advance written statement shall be counted in the
vote on the subject proposal provided that the proposal acted on at the meeting is substantially
the same or has substantially the same effect as the proposal set forth in the advance written
statement. The advance written statement by a director on a proposal shall be included in the
records of the Board of Directors’ action on the proposal.

     4.11 Removal of Directors by Board of Directors. Any director who has been elected by
the Board of Directors to fill a vacancy on the Board of Directors, or to fill a directorship
created by action of the Board of Directors, and who has not subsequently been reelected by the
shareholders, may be removed by a majority vote of all directors constituting the Board, exclusive
of the director whose removal is proposed.

     4.12 Vacancies. Any vacancy on the Board of Directors may be filled by vote of the
remaining directors, even though less than a quorum.

     4.13 Written Action by Less than All of the Directors. Any action which may be taken
at a meeting of the Board of Directors may be taken without a meeting and notice thereof if a
consent in writing setting forth the action taken is signed by the number of directors required to
take the same action at a duly held meeting of the Board of Directors at which all of the directors
are present. If a written action is signed by less than all the directors, any director not
signing the action will be notified as soon as reasonably possible of the content of the action and
the effective date of the action. Failure to provide the notice does not invalidate the written
action. A director who does not sign or consent to the written action has no liability for the
action or actions so taken.

     4.14 Dissent from Action. A director of the Corporation who is present at a meeting
of the Board of Directors at which any action is taken shall be presumed to have assented to the
action taken unless the director objects at the beginning of the meeting to the transaction of
business because the meeting is not lawfully called or convened and does not participate
thereafter, or unless the director votes against the action at the meeting, or is prohibited from
voting on the action.

     4.15 Disclosure to Gaming Regulatory Authorities. Each director must agree to provide
such background information, including a financial statement, and consent to such background
investigation, as may be required by gaming regulatory authorities, and must agree to respond to
questions from gaming regulatory authorities.

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ARTICLE 5

OFFICERS

     5.1 Election of Officers. The Board of Directors shall from time to time, elect a
Chief Executive Officer, President, and a Chief Financial Officer, who may also be designated as
Treasurer. The Board of Directors may elect, but shall not be required to elect, a Secretary, one
or more Vice Presidents, and a Chairman of the Board. In addition, the Board of Directors may
elect such other officers and agents as it may deem necessary. The officers shall exercise such
powers and perform such duties as are prescribed by applicable statutes, the Articles of
Incorporation, the By-Laws, or as may be determined from time to time by the Board of Directors.
Any number of offices may be held by the same person.

     5.2 Term of Office. The officers shall hold office until their successors are elected
and qualify; provided, however, that any officer may be removed with or without cause by the
affirmative vote of a majority of the directors present at a Board of Directors meeting at which a
quorum is present.

     5.3 Chief Executive Officer. The Chief Executive Officer shall:

	 	(a)	 	Have general active management of the business of the Corporation;
	 
	 	(b)	 	When present, preside at all meetings of the shareholders;
	 
	 	(c)	 	When present, and if there is not a Chairman of the Board, preside at all
meetings of the Board of Directors; and
	 
	 	(d)	 	Maintain records of and, whenever necessary, certify all proceedings of the
Board of Directors and the shareholders.

All other officers shall be subject to the direction and authority of the Chief Executive Officer.

     5.4 Chief Financial Officer. The Chief Financial Officer shall:

	 	(a)	 	Keep accurate financial records for the Corporation;
	 
	 	(b)	 	Deposit all money, drafts and checks in the name of and to the credit of the
Corporation in the banks and depositories designated by the Board of Directors;
	 
	 	(c)	 	Endorse for deposit all notes, checks and drafts received by the Corporation as
ordered by the Board of Directors, making proper vouchers therefor;
	 
	 	(d)	 	Disburse corporate funds and issue checks and drafts in the name of the
Corporation, as ordered by the Board of Directors;
	 
	 	(e)	 	Render to the Chief Executive Officer and the Board of Directors, whenever
requested, an account of all transactions by the Chief Financial Officer and of the
financial condition of the Corporation; and

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	 	(f)	 	Perform all other duties prescribed by the Board of Directors or by the Chief
Executive Officer.

     5.5 President. The President shall:

	 	(a)	 	Subject to direction of the Chief Executive Officer, be responsible for the
day-to-day operations of the Corporation, and oversee the activities and
responsibilities of all officers and employees other than the Chairman of the Board and
the Chief Executive Officer;
	 
	 	(b)	 	See that all orders and resolutions of the Board of Directors are carried into
effect;
	 
	 	(c)	 	Sign and deliver in the name of the Corporation any deeds, mortgages, bonds,
contracts or other instruments pertaining to the business of the Corporation, except in
cases in which the authority to sign and deliver is required by law to be exercised by
another person or is expressly delegated by the Articles of Incorporation or Bylaws or
by the Board of Directors to some other officer or agent of the Corporation; and
	 
	 	(d)	 	Perform all other duties presented by the Board of Directors.

     5.6 Vice President. Each Vice President, if any, shall have such powers and perform
such duties as may be specified in these By-Laws or prescribed by the Board of Directors. If the
Chief Executive Officer is absent or disabled, the Vice President shall succeed to the Chief
Executive Officer’s powers and duties. If there are two or more Vice Presidents, the order of
succession shall be determined by seniority of election or as otherwise prescribed by the Board of
Directors.

     5.7 Secretary. The Secretary, if any, shall attend all meetings of the shareholders
and the Board of Directors. The Secretary shall act as clerk and shall record all the proceedings
of the meetings in the minute book of the Corporation and shall give proper notice of meetings of
shareholders and the Board of Directors. The Secretary shall keep the seal of the Corporation, if
any, and shall affix the seal to any instrument requiring it and shall attest the seal, and shall
perform such other duties as may be prescribed from time to time by the Board of Directors.

     5.8 Chairman of the Board. The Chairman of the Board, if any, shall preside at all
meetings of the Board of Directors and shall perform such other duties as may from time to time be
assigned by the Board of Directors.

     5.9 Assistant Officers. In the event of absence or disability of any Vice President,
Secretary or the Chief Financial Officer, the assistant to such officer, if any, shall succeed to
the powers and duties of the absent officer until the principal officer resumes his duties or a
replacement is elected by the Board of Directors. If there are two or more assistants, the order
of succession shall be determined through seniority by the order in which elected or as otherwise
prescribed by the Board of Directors. The assistant officers shall exercise such other powers and
duties as may be delegated to them from time to time by the Board of Directors or the principal
officer under whom they serve, but at all times shall remain subordinate to the principal officers
they are designated to assist.

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ARTICLE 6

INDEMNIFICATION

     The Corporation shall indemnify its officers, directors, employees and agents to the full
extent permitted by the laws of the State of Minnesota, as now in effect, or as the same may be
hereafter modified.

ARTICLE 7

SHARES AND THEIR TRANSFER

     7.1 Certificates of Shares. Unless the Board of Directors has provided that the
Corporation’s shares are to be uncertified, every owner of shares of the Corporation shall be
entitled to a certificate, to be in such form as the Board of Directors prescribes, certifying the
number of shares owned by such shareholder. The certificates for shares shall be numbered in the
order in which they are issued and shall be signed in the name of the Corporation by the Chief
Executive Officer or a Vice President and by the Secretary or Assistant Secretary, or the Chief
Financial Officer, or any other officer of the Corporation authorized by the Board of Directors and
shall have the corporate seal, if any, affixed thereto. A record shall be kept of the name of the
person owning the shares represented by each certificate, the respective issue dates thereof, and
in the case of cancellation, the respective dates of cancellation. Except as provided in Section
7.5 of this Article 7, every certificate surrendered to the Corporation for exchange or transfer
shall be canceled, and no other certificate shall be issued in exchange for any existing
certificate until such existing certificate is cancelled.

     7.2 Uncertificated Shares. The Board of Directors by a majority vote of directors
present at a duly called meeting may provide that any or all shares of classes or series of shares
are to be uncertificated shares. In that case, any shareholder who is issued uncertificated shares
shall be provided with the information legally required to be disclosed in a certificate.

     7.3 Issuance of Shares. The Board of Directors is authorized to issue shares of the
capital stock of the Corporation up to the number of shares authorized by the Articles of
Incorporation. Shares may be issued for any consideration (including, without limitation, money or
other tangible or intangible property received by the Corporation or to be received by the
Corporation under a written agreement, or services rendered to the Corporation or to be rendered to
the Corporation under a written agreement) which is authorized by a resolution approved by the
affirmative vote of a majority of the directors present, valuing all nonmonetary consideration and
establishing a price in money or other consideration, or a minimum price, or a general formula or
method by which the price will be determined. Upon authorization by resolution approved by the
affirmative vote of a majority of the directors present, the Corporation may, without any new or
additional consideration, issue shares of its authorized and unissued capital stock in exchange for
or in conversion of its outstanding shares, or issue its own shares pro rata to its shareholders or
the shareholders of one or more classes or series, to effectuate share dividends or splits,
including reverse share splits. No shares of a class or series shall be issued to the holder of
the shares of another class or series, unless issuance is either expressly provided for in the
Articles of Incorporation or is approved at a meeting by the affirmative vote of the holders
of a majority of the voting power of all shares of the same class or series as the shares to
be issued.

12

 

     7.4 Transfer of Shares. Transfer of shares on the books of the Corporation may be
authorized only by the shareholder named in the certificates or the shareholder’s representative or
duly authorized attorney-in-fact and only upon surrender for cancellation of the certificate for
such shares. The shareholder in whose name shares stand on the books of the Corporation shall be
considered the owner thereof for all purposes regarding the Corporation.

     7.5 Lost Certificates. Any shareholder claiming a certificate for shares has been
lost or destroyed shall make an affidavit or affirmation of that fact in such form as the Board of
Directors may require and shall, if the directors so require, give the Corporation a bond of
indemnity in form and with one or more sureties satisfactory to the Board of Directors and in an
amount determined by the Board of Directors, to indemnify the Corporation against any claim that
may be made against it on account of the alleged loss or destruction of the certificate. A new
certificate may then be issued in the same tenor for the same number of shares as the one alleged
to have been lost or destroyed.

     7.6 Transfer Agent and Registrar. The Board of Directors may appoint one or more
transfer agents or transfer clerks and one or more registrars and may require all certificates for
shares to bear the signature or signatures of any of them.

     7.7 Facsimile Signature. When any certificate is manually signed by a transfer agent,
a transfer clerk, or a registrar appointed by the Board of Directors to perform such duties, a
facsimile or engraved signature of the officers and a facsimile corporate seal, if any, may be
inscribed on the certificate in lieu of the actual signatures and seal.

ARTICLE 8

FINANCIAL AND PROPERTY MANAGEMENT

     8.1 Checks. All checks, drafts, other orders for the payment of money, notes or other
evidences of indebtedness issued in the name of the Corporation shall be signed by the Chief
Executive Officer or Chief Financial Officer, or any other officer or officers, agent or agents of
the Corporation, as may from time to time be determined by resolution of the Board of Directors.

     8.2 Deposits. All funds of the Corporation not otherwise employed shall be deposited
from time to time to the credit of the Corporation in such banks, trust companies, or other
depositories as the Board of Directors may select.

     8.3 Voting Securities Held by Corporation. The Chief Executive Officer, or other
officer or agent designated by the Board of Directors, shall have full power and authority on
behalf of the Corporation to attend, act at, and vote at any meeting of security or interest
holders of other corporations or entities in which the Corporation may hold securities or
interests. At the meeting, the Chief Executive Officer or other designated agent shall possess and
exercise any and all rights and powers incident to the ownership of the securities or interest
which the Corporation holds.

13

 

ARTICLE 9

AMENDMENTS

     The Board of Directors of the Corporation is expressly authorized to make By-Laws of the
Corporation and from time to time to adopt, amend or repeal By-Laws so made to the extent and in
the manner prescribed in the Minnesota Statutes. The Board of Directors shall not adopt, amend, or
repeal a By-Law fixing a quorum for meetings of shareholders, prescribing procedures for removing
directors or filling vacancies in the Board of Directors, or fixing the number of directors or
their classifications, qualifications, or terms of office, but may adopt or amend a By-Law to
increase the number of directors. The authority in the Board of Directors is subject to the power
of the voting shareholders to adopt, change or repeal the By-Laws by a vote of shareholders holding
a majority of the shares entitled to vote and present or represented at any regular meeting or
special meeting called for that purpose.

14EX-4.1 FORM OF SUBSCRIPTION RIGHTS CERTIFICATE

Exhibit 4.1

(see following two pages)

 

 

	RIGHTS CERTIFICATE #: NUMBER OF RIGHTS : THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED      , 2009
(THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM      , THE INFORMATION AGENT.
Intelligent Systems Corporation Incorporated under the laws of the State of Georgia NON — TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE Evidencing Non —
Transferable Subscription Rights to Purchase Shares of Common Stock of Intelligent Systems Corporation Subscription Price: $  per Share THE SUBSCRIPTION
RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., EASTERN DAYLIGHT TIME, ON      , 2009, UNLESS EXTENDED BY THE COMPANY REGISTERED OWNER:
THIS CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Rights”)
set forth above. Each whole Right entitles the holder thereof to subscribe for and purchase one share of Common Stock, with a par value of $0.01 per
share, of Intelligent Systems Corporation, a Georgia corporation, at a subscription price of $  per share (the “Basic Subscription Privilege”), pursuant
to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus and the “Instructions for Use of
Intelligent Systems Corporation Subscription Rights Certificates” accompanying this Subscription Rights Certificate. If any shares of Common Stock
available for purchase in the Rights Offering are not purchased by other holders of Rights pursuant to the exercise of their Basic Subscription
Privilege (the “Excess Shares”), any Rights holder that exercises its Basic Subscription Privilege in full may subscribe for a number of Excess Shares
pursuant to the terms and conditions of the Rights Offering, subject to proration, as described in the Prospectus (the “Over- Subscription Privilege”).
The Rights represented by this Subscription Rights Certificate may be exercised by completing Form 1 and any other appropriate forms on the reverse side
hereof and by retuning the full payment of the subscription price for each share of Common Stock in accordance with the “Instructions for Use of
Intelligent Systems Corporation Subscription Rights Certificates” that accompany this Subscription Rights Certificate. This Subscription Rights
Certificate is not valid unless countersigned by the subscription agent and registered by the registrar. Witness the seal of Intelligent Systems
Corporation and the signatures of its duly authorized officers. Dated: President, Chief Executive Officer Vice President, and Principal Executive
Officer Chief Financial Officer and Secretary 

 

 

	DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE Delivery other than in the manner or to the addresses listed below will not constitute
valid delivery. American Stock Transfer & Trust Company 6201 15th Avenue Brooklyn, New York 11219 Telephone: (877) 248-6417 PLEASE PRINT ALL
INFORMATION CLEARLY AND LEGIBLY. FORM 1-EXERCISE OF SUBSCRIPTION RIGHTS To subscribe for shares pursuant to your Basic Subscription Right,
please complete lines (a) and (c) and sign under Form 4 below. To subscribe for shares pursuant to your Over-Subscription Right, please also complete
line (b) and sign under Form 4 below. To the extent you subscribe for more Shares than you are entitled under either the Basic Subscription Right
or the Over- Subscription Right, you will be deemed to have elected to purchase the maximum number of shares for which you are entitled to subscribe
under the Basic Subscription Right or Over-Subscription Right, as applicable. (a) EXERCISE OF BASIC SUBSCRIPTION RIGHT: I apply for
            shares x $ =$ (no. of new shares) (subscription price) (amount enclosed) (b) EXERCISE OF OVER-SUBSCRIPTION RIGHT If you have
exercised your Basic Subscription Right in full and wish to subscribe for up to 400,000 additional shares of Common Stock: I apply for
shares x $ =$ (no. of new shares) (subscription price) (amount enclosed) (c) Total Amount of
Payment Enclosed =$ METHOD OF PAYMENT (CHECK ONE) ?? Cashier’s or Certified Check or bank draft drawn on a U.S. bank, or postal
telegraphic or express. ?? Wire transfer of immediately available funds directly to the account maintained by American
Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of accepting subscriptions in this Rights Offering
at JPMorgan Chase Bank, 55 Water Street, New York, New York 10005, ABA #021000021, Account # American Stock Transfer
FBO Intelligent Systems Corporation, with reference to the rights holder’s name. FORM 2-TRANSFER TO DESIGNATED TRANSFEREE To transfer your
subscription rights to another person, complete this Form 2 and have your signature guaranteed under Form 5. For value received
of the subscription rights represented by this Subscription Rights Certificate are assigned to:
Social Security # Signature(s): IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this
Subscription Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever.
FORM 3-DELIVERY TO DIFFERENT ADDRESS If you wish for the Common Stock underlying your subscription rights, a certificate representing unexercised
subscription rights or the proceeds of any sale of subscription rights to be delivered to an address different from that shown on the face of this
Subscription Rights Certificate, please enter the alternate address below, sign under Form 4 and have your signature guaranteed under Form 5. FORM 4-SIGNATURE TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions specified in the Prospectus. Signature(s): IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of this Subscription
 Rights Certificate in every particular, without alteration or enlargement, or any other change whatsoever. FORM 5-SIGNATURE GUARANTEE This form must be completed if you have completed any portion of Forms 2 or 3. Signature Guaranteed: (Name of Bank or Firm) By: (Signature of Officer) IMPORTANT: The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved signature guarantee medallion program p
ursuant to Securities and Exchange Commission Rule 17Ad-15.

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