Document:

Exhibit 10.4

 

Associated Bank

PROMISSORY NOTE

	
  Borrower:

  	
  NORTH METRO HARNESS INITIATIVE, LLC

  SOUTHWEST CASINO AND HOTEL CORP.

  2001 KILLEBREW DRIVE. SUITE 306

  MINNEAPOLiS, MN 55425

  	
  Lender:

  	
  ASSOCIATED BANK MINNESOTA, NATIONAL ASSOCIATION

  1801 RIVERSIDE AVENUE

  MINNEAPOLIS, MN 55454

  

 

	
   

  	
  Principal Amount:
  $500,000.00

  	
  Initial Rate: 6.750%

  	
  Date of Note: May 1, 2005

  

 

PROMISE TO PAY. NORTH METRO
HARNESS INITIATIVE. LLC; and SOUTHWEST CASINO AND HOTEL CORP. (“Borrower”)
jointly and severally promise to pay to ASSOCIATED BANK MINNESOTA, NATIONAL
ASSOCIATION (“Lender”), or order, in lawful money of the United States of
America, the principal amount of Five Hundred Thousand & 00/100 Dollars
($500,000.00) or so much as may be outstanding, together with interest on the
unpaid outstanding principal balance of each advance. Interest shall be
calculated from the date of each advance until repayment of each advance.

 

          PAYMENT. Borrower will pay
this loan in one payment of all outstanding principal plus all accrued unpaid
interest on June 1, 2006. In addition, Borrower will pay regular monthly
payments of all accrued unpaid interest due as of each payment date, beginning
June 25, 2005, with all subsequent interest payments to be due on the same day
of each month after that. Unless otherwise agreed or required by applicable
law, payment will be applied first to any accrued unpaid interest; then to
principal; and then to any late charges. The annual interest rate for this Note
is computed on a 365/360 basis; that is, by applying the ratio of the annual
interest rate over a year of 360 days, multiplied by the outstanding principal
balance, multiplied by the actual number of days the principal balance is
outstanding. Borrower will pay Lender at Lender’s address shown above or at
such other place as Lender may designate in writing.

 

VARIABLE INTEREST RATE. The interest rate on this Note is subject to
change from time to time based on changes in an index which is the Lender’s
Prime Rate (the “Index”). This is the rate Lender charges, or would charge, on
short-term unsecured loans to its most creditworthy commercial customers. This
rate may or may not be the lowest rate available from Lender at any given time.
Lender will tell Borrower the current index rate upon Borrower’s request. The
interest rate change will not occur more often than each DAY. Borrower
understands that Lender may make loans based on other rates as well. The Index
currently is 5.750% per annum. The interest rate to be applied to the unpaid
principal balance of this Note will be at a rate of 1.000 percentage point over
the Index, adjusted if necessary for any minimum and maximum rate limitations
described below, resulting in an initial rate of 6.750% per annum.
Notwithstanding the foregoing, the variable interest rate or rates provided for
in this Note will be subject to the following minimum and maximum rates.
NOTICE: Under no circumstances will the interest rate on this Note be less than
5.000% per annum or more than the maximum rate allowed by applicable law.

 

                                     PREPAYMENT.  Borrower may pay without penalty all or a
portion of the amount owed earlier than it is due. Early payments will not,
unless agreed to by Lender in writing, relieve Borrower of Borrower’s
obligation to continue to make payments of accrued unpaid interest. Rather,
early payments will reduce the principal balance due. Borrower agrees not to
send Lender payments marked “paid in full”, “without recourse”, or similar
language. If Borrower sends such a payment, Lender may accept it without losing
any of Lender’s rights under this Note, and Borrower will remain obligated to
pay any further amount owed to Lender.  All
written communications concerning disputed amounts, including any check or
other payment instrument that indicates that the payment constitutes “payment
in full” of the amount owed or that is tendered with other conditions or
imitations or as full satisfaction of a disputed amount must be mailed or
delivered to: ASSOCIATED BANK, P.O. BOX 19097 GREEN BAY, WI 54307-9097.

 

LATE CHARGE. If a payment is 11 days or more late, Borrower will be
charged 5.000% of the unpaid portion of the regularly scheduled payment.

 

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon
final maturity, Lender, at its option, may, if permitted under applicable law,
increase the variable interest rate on this Note to 6.000 percentage points
over the Index. The interest rate will not exceed the maximum rate permitted by
applicable law.

 

DEFAULT.   Each of the following shall constitute an
event of default (“Event of Default”) under this Note:

 

Payment Default. Borrower fails to make any payment when due under this
Note.

 

Other Defaults. Borrower fails to comply with or to perform any other
term, obligation, covenant or condition contained in this Note or in any of the
related documents or to comply with or to perform any term, obligation,
covenant or condition contained in any other agreement between Lender and
Borrower.

 

Default in Favor of Third Parties. Borrower or any Grantor defaults
under any loan, extension of credit, security agreement, purchase or sales
agreement, or any other agreement, in favor of any other creditor or person
that may materially affect any of Borrower’s property or Borrower’s ability to
repay this Note or perform Borrower’s obligations under this Note or any of the
related documents.

 

False Statements. Any warranty, representation or statement made or
furnished to Lender by Borrower or on Borrower’s behalf under this Note or the
related documents is false or misleading in any material respect, either now or
at the time made or furnished or becomes false or misleading at any time
thereafter.

 

 

Insolvency. The dissolution or termination of Borrower’s existence as a
going business, the insolvency of Borrower, the appointment of a receiver for
any part of Borrower’s property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Borrower.

 

Creditor or Forfeiture Proceedings. Commencement of foreclosure or
forfeiture proceedings, whether by judicial proceeding, self-help, repossession
or any other method, by any creditor of Borrower or by any governmental agency
against any collateral securing the loan. This includes a garnishment of any of
Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower
as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

 

Events Affecting Guarantor. Any of the preceding events occurs with
respect to any Guarantor of any of the indebtedness or any Guarantor dies or
becomes incompetent, or revokes or disputes the validity of, or liability
under. any guaranty of the indebtedness evidenced by this Note.

 

Change In Ownership. Any
change in ownership of twenty-five percent (25%) or more of the common stock of
Borrower.

 

Adverse Change. A material
adverse change occurs in Borrower’s financial condition, or Lender believes the
prospect of payment or performance of this Note is impaired.

 

Insecurity. Lender in good
faith believes itself insecure.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance on
this Note and all accrued unpaid interest immediately due, and then Borrower
will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes,
subject to any limits under applicable law, Lender’s reasonable attorneys’ fees
and Lender’s legal expenses, whether or not there is a lawsuit, including
reasonable attorneys’ fees, expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), and appeals. If
not prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by law.

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower
against the other.

 

GOVERNING
LAW. This Note will be governed by, construed and enforced in accordance with
federal law and the laws of the State of Minnesota. This Note has been accepted
by Lender in the State of Minnesota.

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a
payment on Borrower’s loan and the check or preauthorized charge with which
Borrower pays is later dishonored.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right
of setoff in all Borrower’s accounts with Lender (whether checking, savings, or
some other account). This includes all accounts Borrower holds jointly with
someone else and all accounts Borrower may open in the future. However, this
does not include any IRA or Keogh accounts, or any trust accounts for which
setoff would be prohibited by law. Borrower authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts, and, at Lender’s option, to
administratively freeze all such accounts to allow Lender to protect Lender’s
charge and setoff rights provided in this paragraph.

 

COLLATERAL.
Borrower acknowledges this Note is secured by all security agreements,
guarantees, mortgages, and other security instruments previously granted,
contemporaneously granted, and granted in the future.

 

LINE
OF CREDIT. This Note evidences a straight line of credit. Once the total amount
of principal has been advanced, Borrower is not entitled to further loan
advances. Advances under this Note, as well as directions for payment from
Borrower’s accounts, may be requested orally or in writing by Borrower or by an
authorized person. Lender may, but need not, require that all oral requests be
confirmed in writing. Borrower agrees to be liable for all sums either: (A)
advanced in accordance with the instructions of an authorized person or (B)
credited to any of Borrower’s accounts with Lender. The unpaid principal
balance owing on this Note at any time may be evidenced by endorsements on this
Note or by Lender’s internal records, including daily computer print-outs.
Lender will have no obligation to advance funds under this Note if: (A)
Borrower or any guarantor is in default under the terms of this Note or any
agreement that Borrower or any guarantor has with Lender, including any
agreement made in connection with the signing of this Note; (B) Borrower or any
guarantor ceases doing business or is insolvent; (C) any guarantor seeks,
claims or otherwise attempts to limit, modify or revoke such guarantor’s
guarantee of this Note or any other loan with Lender; (D) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized
by Lender; or (E) Lender in good faith believes itself insecure.

 

LETTER
OF CREDIT LIMITATION. In the event Lender either contemporaneously or hereafter
issues a Letter of Credit on behalf of Borrower (“Credit”), the amount of such Credit,
or the aggregate amount of all such Credits, shall be applied against the
available

 

 

credit
under this Note.  Such limitation on
available credit shall continue as long as Lender is obligated under any
outstanding Credit.

 

INITIAL
NOTE RATE PROVISION. The Initial Note Rate is as of APRIL 14, 2005.

 

FINANCIAL
STATEMENT. Borrower shall furnish to Lender annual financial statements within
90 days following the close of Borrower’s fiscal or calendar year, as
applicable, and such other financial information respecting Borrower at such
times and in such form as Lender may request from time to time. In addition to
being an Event of Default, Borrower shall pay Lender a $25.00 fee for failure
to provide the financial statements within said 90 days or failure to provide
such other financial information within 30 days of the request therefore. The
$25.00 fee shall continue to be imposed thereafter for each additional 30 day
period or part thereof, that the financial statements or other financial
information have not been provided to Lender. If Borrower does not reimburse
Lender for the fees imposed by this section on demand therefore, Lender may add
the fees to the loan balance outstanding.

 

OTHER
LOAN AGREEMENTS. If Borrower and Lender have either previously or
contemporaneously entered into a Loan Agreement, it is agreed that this Note is
subject to the terms and conditions of such Loan Agreement. For purposes of
this provision, Loan Agreement shall include, but not be limited to, a Business
Loan Agreement, Agricultural Loan Agreement, Construction Loan Agreement, any
other LASER PRO Loan Agreement, and/or any attorney drafted lending agreement.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon
Borrower’s heirs, personal representatives, successors and assigns, and shall
inure to the benefit of Lender and its successors and assigns.

 

GENERAL
PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies
under this Note without losing them. Each Borrower understands and agrees that,
with or without notice to Borrower, Lender may with respect to any other
Borrower (a) make one or more additional secured or unsecured loans or
otherwise extend additional credit; (b) alter, compromise, renew, extend,
accelerate, or otherwise change one or more times the time for payment or other
terms of any indebtedness, including increases and decreases of the rate of
interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail
or decide not to perfect, and release any security, with or without the
substitution of new collateral; (d) apply such security and direct the order or
manner of sale thereof, including without limitation, any non-judicial sale
permitted by the terms of the controlling security agreements, as Lender in its
discretion may determine; (e) release, substitute, agree not to sue, or deal
with any one or more of Borrower’s sureties, endorsers, or other guarantors on
any terms or in any manner Lender may choose; and (f) determine how, when and
what application of payments and credits shall be made on any other
indebtedness owing by such other Borrower. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or
release any party or guarantor or collateral; or impair, fail to realize upon
or perfect Lender’s security interest in the collateral; and take any other
action deemed necessary by Lender without the consent of or notice to anyone.
All such parties also agree that Lender may modify this loan without the
consent of or notice to anyone other than the party with whom the modification
is made. The obligations under this Note are joint and several.

 

SECTION DISCLOSURE. This loan
is made under Minnesota Statutes, Section 48.1 95.

 

PRIOR TO SIGNING THIS NOTE,
EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE INCLUDING THE
VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE
NOTE.  BORROWER ACKNOWLEDGES RECEIPT OF A
COMPLETE COPY OF THIS PROMISSORY NOTE.

 

 

 

BORROWER:

 

 

NORTH
METRO HARNESS INITIATIVE, LLC

 

	
  By:
  

  	
   

  
	
   

  	
  JAMES
  B. DRUCK, PRESIDENT/MANAGER OF

  
	
   

  	
  NORTH
  METRO HARNESS INITIATIVE, LLC

  

 

 

SOUTHWEST
CASINO AND HOTEL CORP.

 

	
  By:
  

  	
   

  
	
   

  	
  THOMAS
  E. FOX, Chief Fin. Officer of SOUTHWEST

  
	
   

  	
  CASINO
  AND HOTEL CORP.Exhibit 4.1

 

AMENDED AND RESTATED BY-LAWS

OF

POLYMER GROUP, INC.

A Delaware Corporation

 

December 20,
2004

 

ARTICLE I

OFFICES

 

Section 1.                                            Registered
Office.  The registered office of the
Corporation in the State of Delaware shall be located at 2711 Centerville Road,
Suite 400, Wilmington, Delaware, County of New Castle. The name of the
Corporation’s registered agent at such address is The Prentice-Hall Corporation
System, Inc. The registered office and/or registered agent of the Corporation
may be changed from time to time by action of the board of directors.

 

Section 2.                                            Other
Offices.  The Corporation may also
have offices at such other places, both within and without the State of
Delaware, as the board of directors may from time to time determine or the business
of the Corporation may require.

 

ARTICLE II

MEETINGS OF STOCKHOLDERS

 

Section 1.                                            Place
and Time of Meetings.  An annual
meeting of the stockholders shall be held each year for the purpose of electing
directors and conducting such other proper business as may come before the
meeting. Unless otherwise directed by the board of directors, annual meetings
of stockholders shall be held in April or May beginning in 2005. At the
annual meeting, stockholders shall elect directors and transact such other
business as properly may be brought before the meeting pursuant to Article II,
Section 11 hereof.

 

Section 2.                                            Special
Meetings.  Special meetings of
stockholders may be called for any purpose and may be held at such time and
place, within or without the State of Delaware, as shall be stated in a notice
of meeting or in a duly executed waiver of notice thereof. Such meetings may be
called at any time by the chief executive officer, the board of directors, any
two directors or stockholders of the Corporation holding at least 25% of the
outstanding shares of the Corporation’s common stock, in each case, by written
notice to the secretary of the Corporation (or, if no secretary is then in
office, an assistant secretary or the chairman of the board or chief executive officer
of the Corporation).  The notice required
by the foregoing sentence shall set forth the date (which shall not be less
than twenty (20) nor more than sixty (60) days after the date of such notice),
time and purpose or purposes of the meeting in reasonable detail.  Thereafter, the Corporation promptly shall
take all steps required by this Article II, the General Corporation Law of
the State of Delaware, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and all other
applicable laws, rules and regulations, to call a special meeting of the
stockholders on the date and time and solely for the purpose or purposes set
forth in such notice. The only matters that may be considered at any 

 

 

special meeting of the stockholders are the matters
specified in the notice of the meeting delivered by the Corporation to the
stockholders pursuant to Section 4 of this Article II.

 

Section 3.                                            Place
of Meetings.  The board of directors
may designate any place, either within or without the State of Delaware, as the
place of meeting for any annual meeting or for any special meeting called by
the board of directors. If no designation is made, or if a special meeting be
otherwise called, the place of meeting shall be the principal executive office
of the Corporation.

 

Section 4.                                            Notice.  Whenever stockholders are required or
permitted to take action at a meeting, written or printed notice stating the
place, date, time, and, in the case of special meetings, the purpose or
purposes, of such meeting, shall be given to each stockholder entitled to vote
at such meeting not less than ten (10) nor more than sixty (60) days before the
date of the meeting. All such notices shall be delivered, either personally or
by mail, by or at the direction of the board of directors, the chief executive
officer or the secretary, and if mailed, such notice shall be deemed to be
delivered when deposited in the United States mail, postage prepaid, addressed
to the stockholder at his, her or its address as the same appears on the
records of the Corporation. Attendance of a person at a meeting shall
constitute a waiver of notice of such meeting, except when the person attends
for the express purpose of objecting at the beginning of the meeting to the
transaction of any business because the meeting is not lawfully called or
convened.

 

Section 5.                                            Stockholders
List.  The officer having charge of
the stock ledger of the Corporation shall make, at least 10 days before every
meeting of the stockholders, a complete list of the stockholders entitled to
vote at such meeting arranged in alphabetical order, showing the address of
each stockholder and the number of shares registered in the name of each
stockholder. Such list shall be open to the examination of any stockholder, for
any purpose germane to the meeting, during ordinary business hours, for a
period of at least 10 days prior to the meeting, either at a place within the
city where the meeting is to be held, which place shall be specified in the
notice of the meeting or, if not so specified, at the place where the meeting
is to be held. The list shall also be produced and kept at the time and place
of the meeting during the whole time
thereof, and may be inspected by any stockholder who is present.

 

Section 6.                                            Quorum.  The holders of a majority of the outstanding
shares of capital stock entitled to vote, present in person or represented by
proxy, shall constitute a quorum at all meetings of the stockholders, except as
otherwise provided by statute or by the certificate of incorporation. If a
quorum is not present, the holders of a majority of the shares present in
person or represented by proxy at the meeting, and entitled to vote at the
meeting, may adjourn the meeting to another time and/or place. When a specified
item of business requires a vote by a class or series (if the Corporation shall
then have outstanding shares of more than one class or series) voting as a
class, the holders of a majority of the outstanding shares of such class or
series entitled to vote, present in person or represented by proxy, shall
constitute a quorum (as to such class or series) for the transaction of such
item of business.

 

Section 7.                                            Adjourned
Meetings.  When a meeting is
adjourned to another time and place, notice need not be given of the adjourned
meeting if the time and place thereof are announced at the meeting at which the
adjournment is taken. At the adjourned meeting the 

 

2

 

Corporation may transact any business which might have
been transacted at the original meeting. If the adjournment is for more than
thirty days, or if after the adjournment a new record date is fixed for the
adjourned meeting, a notice of the adjourned meeting shall be given to each
stockholder of record entitled to vote at the meeting.

 

Section 8.                                            Vote
Required.  When a quorum is present,
the affirmative vote of the majority of shares present in person or represented
by proxy at the meeting and entitled to vote on the subject matter shall be the
act of the stockholders, unless (i) by express provisions of an applicable law
or of the certificate of incorporation a different vote is required, in which
case such express provision shall govern and control the decision of such
question, or (ii) the subject matter is the election of directors, in which
case Section 2 of Article III hereof shall govern and control the
approval of such subject matter.

 

Section 9.                                            Voting
Rights.  Except as otherwise provided
by the General Corporation Law of the State of Delaware or by the certificate
of incorporation of the Corporation or any amendments thereto and subject to Section 3
of Article VI hereof, every stockholder shall at every meeting of the
stockholders be entitled to one vote in
person or by proxy for each share of common stock held by such stockholder.

 

Section 10.                                      Proxies.  Each stockholder entitled to vote at a
meeting of stockholders may authorize another person or persons to act for him
or her by proxy, but no such proxy shall be voted or acted upon after three
years from its date, unless the proxy provides for a longer period. A duly
executed proxy shall be irrevocable if it states that it is irrevocable and if,
and only as long as, it is coupled with an interest sufficient in law to
support an irrevocable power. A proxy may be made irrevocable regardless of
whether the interest with which it is coupled is an interest in the stock
itself or an interest in the Corporation generally. Any proxy is suspended when
the person executing the proxy is present at a meeting of stockholders and
elects to vote, except that when such proxy is coupled with an interest and the
fact of the interest appears on the face of the proxy, the agent named in the
proxy shall have all voting and other rights referred to in the proxy,
notwithstanding the presence of the person executing the proxy. At each meeting
of the stockholders, and before any voting commences, all proxies filed at or
before the meeting shall be submitted to and examined by the secretary or a
person designated by the secretary, and no shares may be represented or voted
under a proxy that has been found to be invalid or irregular.

 

Section 11.                                      Business
Brought Before a Meeting.  At an
annual meeting of the stockholders, only such business shall be conducted as
shall have been properly brought before the meeting pursuant to this Section 11
of Article II; provided that, nominations for the election of directors
properly made pursuant to the provisions of Article III, Section 5 of
these by-laws shall also be considered at such annual meeting. To be properly
brought before an annual meeting, business must be (a) specified in the notice
of meeting (or any supplement thereto) given by or at the direction of the
board of directors, (b) brought before the meeting by or at the direction of
the board of directors, or (c) otherwise properly brought before the meeting by
a stockholder. For business to be properly brought before an annual meeting by
a stockholder, the stockholder must have given timely notice thereof in writing
to the secretary of the Corporation. To be timely, a stockholder’s notice must
(x) be delivered to or mailed and received at the principal executive offices
of the Corporation, at any time prior to the date of the annual meeting,

 

3

 

and (y) comply with all applicable requirements of the
Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder with respect to the matters set forth in this Section 11 of Article II.  A stockholder’s notice to the secretary shall
set forth as to each matter
the stockholder proposes to bring before the annual meeting (a) a brief
description of the business desired to be brought before the annual meeting,
(b) the name and address, as they appear on the Corporation’s books, of the
stockholder proposing such business, (c) the class and number of shares of the
Corporation which are beneficially owned by the stockholder, and (d) any
material interest of the stockholder in such business. Notwithstanding anything
in these by-laws to the contrary, no business shall be conducted at an annual
meeting except in accordance with the procedures set forth in this Section 11
of Article II. The board of directors shall, if the facts warrant,
determine that the business was not properly brought before the meeting and in
accordance with the provisions of this Section 11 of Article II; and
if it should so determine, the board shall so declare to the meeting and any
such business not properly brought before the meeting shall not be transacted.

 

Section 12.                                      Action by Written Consent.  Any
action required or permitted to be taken at any meeting of the stockholders of
the Corporation may be taken by written consent in lieu of a meeting of the
stockholders of the Corporation without a meeting, without prior notice
and without a vote, if a consent or consents in writing, setting forth the
action so taken, shall be signed by the holders of outstanding stock having not
less than the minimum number of votes that would be necessary to authorize or
take such action at a meeting at which all shares entitled to vote thereon were
present and voted and shall be delivered to the Corporation by delivery to its
registered office in the State of Delaware, its principal place of business or
an officer or agent of the Corporation having custody of the book in which
proceedings of meetings of stockholders are recorded.  Such delivery shall be by hand or by
certified or registered mail, return receipt requested.

 

ARTICLE III

DIRECTORS

 

Section 1.                                            General
Powers.  The business and affairs of
the Corporation shall be managed by or under the direction of the board of
directors. In addition to such powers as are herein and in the certificate of
incorporation expressly conferred upon it, the board of directors shall have
and may exercise all the powers of the Corporation, subject to the provisions
of the laws of Delaware, the certificate of incorporation and these by-laws.

 

Section 2.                                            Number,
Election and Term of Office.  The
number of directors which shall constitute the board shall be nine (9), the number of directors may be changed and established
from time to time by resolution adopted by affirmative vote of 50.1% of the
outstanding shares of the Corporation’s common stock; provided that no
reduction in the number of directors constituting the board shall result in the
removal of any director from the board during such director’s term of office.
The board of directors shall not change the number of directors without
shareholder approval as provided in the foregoing sentence.  The directors shall be elected by a plurality
of the votes of the shares present in person or represented by proxy at the
meeting and entitled to vote in the election of directors; provided that, whenever
the holders of any class or series of capital stock of the Corporation are
entitled to elect one or more directors pursuant to the provisions of the
certificate of incorporation of the Corporation 

 

4

 

(including, but not limited to, for purposes of these
by-laws, pursuant to any duly authorized certificate of designation), such
directors shall be elected by a plurality of the votes of such class or series
present in person or represented by proxy at the meeting and entitled to vote
in the election of such directors. The directors shall be elected in this
manner at the applicable annual meeting of the stockholders as set forth in Article II,
Section 1, except as provided in Section 4 of this Article III.
Each director elected shall hold office until a successor is duly elected and qualified or until his or her earlier death,
resignation or removal as hereinafter provided.

 

Section 3.                                            Removal
and Resignation.  A director may be
removed at any time with or without cause upon a majority vote of the shares of
common stock voting at a meeting or by stockholders holding a majority of the
outstanding shares of the Corporation’s common stock acting by written consent
in lieu of a meeting. Any director may resign at any time upon written notice
to the Corporation.

 

Section 4.                                            Vacancies.  Vacancies and newly created directorships
resulting from any increase in the total number of directors established by the
shareholders pursuant to Section 2 of this Article III may be filled (a)
by the affirmative vote of a majority of the directors then serving and in
accordance with Article IV of the Shareholders Agreement, dated as of March 5,
2003, by and among the Corporation, MatlinPatterson Global Opportunities
Partners L.P. and the other parties identified therein, as the same may be
amended from time to time or (b) by the affirmative vote of 50.1% of the
outstanding shares of the Corporation’s common stock.  Any director elected to fill a vacancy
resulting from an increase in the number of directors shall hold office until a
successor is duly elected and qualified. A director elected to fill a vacancy
not resulting from an increase in the number of directors shall have the same
remaining term as that of his predecessor. Each director so chosen shall hold
office until a successor is duly elected and qualified or until his or her
earlier death, resignation or removal as herein provided. Whenever holders of
any class or classes of stock or series thereof are entitled by the provisions
of the certificate of incorporation to elect one or more directors, vacancies
and newly created directorships of such class or classes or series may only be
filled by the affirmative vote of the majority of the total number of directors
elected by such class or classes or series thereof then in office, or by a sole
remaining director so elected.

 

Section 5.                                            Nominations.

 

(a)                                  Subject
to Section 4 of this Article III, only persons who are nominated in
accordance with the procedures set forth in these by-laws shall be eligible to
serve as directors. Nominations of persons for election to the board of
directors of the Corporation may be made at a meeting of stockholders (i) by or
at the direction of the board of directors or (ii) by any stockholder of the
Corporation who was a stockholder of record at the time of giving of notice
provided for in this by-law, who is entitled to vote for the election of
directors at the meeting and who shall have complied with the notice procedures
set forth below in Section 5(b) of this Article III.

 

(b)                                 In
order for a stockholder to nominate a person for election to the board of
directors of the Corporation at a meeting of stockholders, such stockholder
shall have delivered timely notice of such stockholder’s intent to make such
nomination in writing to the secretary of the Corporation. To be timely, a
stockholder’s notice must (i) be delivered to or mailed and

 

5

 

received at the principal executive offices of the
Corporation at any time prior to the date of such meeting of the stockholders;
and (ii) comply with all applicable requirements of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder with respect to
the matters set forth in this Section 5 of Article III. Such
stockholder’s notice shall set forth (i) as to each person whom the stockholder
proposes to nominate for election as a director at such meeting all information
relating to such person that is required to be disclosed in solicitations of
proxies for election of directors, or is otherwise required, in each case
pursuant to Regulation 14A under the Securities Exchange Act of 1934, as
amended (including such person’s written consent to being named in the proxy
statement as a nominee and to serving as a director if elected); (ii) as to the
stockholder giving the notice (A) the name and address, as they appear on the
Corporation’s books, of such stockholder and (B) the class and number of shares
of the Corporation which are beneficially owned by such stockholder and also
which are owned of record by such stockholder; and (iii) as to the beneficial
owner, if any, on whose behalf the nomination is made, (A) the name and address
of such person and (B) the class and number of shares of the Corporation which
are beneficially owned by such person. 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 that information
required to be set forth in a stockholder’s notice of nomination which pertains
to the nominee.

 

(c)                                  The
board of directors shall, if the facts warrant, determine that a nomination was
not made in accordance with the procedures prescribed by the by-laws, and if
the board should so determine, the board
shall so declare to the meeting and the defective nomination shall be
disregarded.

 

Section 6.                                            Annual
Meetings.  The annual meeting of the
board of directors shall be held without other notice than this by-law
immediately after, and at the same place as, the annual meeting of
stockholders.

 

Section 7.                                            Other
Meetings and Notice.  Regular
meetings, other than the annual meeting, of the board of directors may be held
without notice at such time and at such place as shall from time to time be
determined by the board. Special meetings of the board of directors may be
called by the chairman of the board, at least two of the directors then in
office, or the secretary of the Corporation on at least 2 hours notice to each
director, either personally, by telephone, mail, telecopy or e-mail, which
notice shall set forth the date, time and place of such special meeting.  Regular meetings and special meetings may be
held at any place within or outside of the State of Delaware.

 

Section 8.                                            Chairman
of the Board, Quorum, Required Vote and Adjournment. The board of directors
shall elect, by the affirmative vote of the majority of the total number of
directors then in office, a chairman of the board, who shall preside at all
meetings of the stockholders and board of directors at which he or she is
present. If the chairman of the board is not present at a meeting of the
stockholders or the board of directors, a majority of the directors present at
such meeting shall elect one of their members to so preside. A majority of the
total number of directors then in office shall constitute a quorum for the
transaction of business. Unless by express provision of an applicable law, the
Corporation’s certificate of incorporation or these by-laws a different vote is
required, the vote of a majority of directors present at a meeting at which a
quorum is present shall be the act of the board of directors. If a quorum shall

 

6

 

not be present at any meeting of the board of
directors, the directors present thereat may adjourn the meeting from time to
time, without notice other than announcement at the meeting, until a quorum
shall be present.

 

Section 9.                                            Committees.  The board of directors may, by resolution
passed by a majority of the total number of directors then in office, designate
one or more committees, each committee to consist of one or more of the
directors of the Corporation, which to the extent provided in such resolution
or these by-laws shall have, and may exercise, the powers of the board of directors
in the management and affairs of the Corporation, except as otherwise limited
by law. The board of directors may designate one or more directors as alternate
members of any committee, who may replace any absent or disqualified member at
any meeting of the committee. Such committee or committees shall have such name
or names as may be determined from time to time by resolution adopted by the
board of directors. Each committee shall keep regular minutes of its meetings
and report the same to the board of directors when required.

 

Section 10.                                      Committee
Rules.  Each committee of the board
of directors may fix its own rules of procedure and shall hold its meetings as
provided by such rules, except as may otherwise be provided by a resolution of
the board of directors designating such committee. Unless otherwise provided in
such a resolution, the presence of at least a majority of the members of the
committee shall be necessary to constitute a quorum. Unless otherwise provided
in such a resolution, in the event that a member and that member’s alternate,
if alternates are designated by the board of directors as provided in Section 9
of this Article III, of such committee is or are absent or disqualified,
the member or members thereof present at any meeting and not disqualified from
voting, whether or not such member or members constitute a quorum, may
unanimously appoint another member of the board of directors to act at the
meeting in place of any such absent or disqualified member.

 

Section 11.                                      Communications
Equipment.  Members of the board of
directors or any committee thereof may participate in and act at any meeting of
such board or committee through the use of a conference telephone or other
communications equipment by means of which all persons participating in the
meeting can hear and speak with each other, and participation in the meeting
pursuant to this Section 11 shall constitute presence in person at the
meeting.

 

Section 12.                                      Waiver
of Notice and Presumption of Assent. 
Any member of the board of directors or any committee thereof who is
present at a meeting shall be conclusively presumed to have waived notice of
such meeting except when such member attends for the express purpose of
objecting at the beginning of the meeting to the transaction of any business
because the meeting is not lawfully called or convened. Such member shall be
conclusively presumed to have assented to any action taken unless his or her
dissent shall be entered in the minutes
of the meeting or unless his or her written dissent to such action shall be
filed with the person acting as the secretary of the meeting before the
adjournment thereof or shall be forwarded by registered mail to the secretary
of the Corporation immediately after the adjournment of the meeting. Such right
to dissent shall not apply to any member who voted in favor of such action.

 

Section 13.                                      Action
by Written Consent.  Unless otherwise
restricted by the certificate of incorporation, any action required or
permitted to be taken at any meeting of the board of directors, or of any
committee thereof, may be taken without a meeting if all members of the 

 

7

 

board or committee, as the case may be, consent
thereto in writing, and the writing or writings are filed with the minutes of
proceedings of the board or committee.

 

ARTICLE IV

OFFICERS

 

Section 1.                                            Officers.  The officers of the Corporation shall be
elected by the board of directors and may consist of a chairman of the board,
chief executive officer, one or more vice-presidents, a chief financial
officer, a secretary, one or more assistant secretaries and such other officers
and assistant officers as may be deemed necessary or desirable by the board of
directors. Any number of offices may be held by the same person. In its
discretion, the board of directors may choose not to fill any office for any
period as it may deem advisable.

 

Section 2.                                            Election
and Term of Office.  The officers of
the Corporation shall be elected annually by the board of directors at its first
meeting held after each annual meeting of stockholders or as soon thereafter as
convenient. Vacancies may be filled or new offices created and filled at any
meeting of the board of directors. Each officer shall hold office until a
successor is duly elected and qualified or until his or her earlier death,
resignation or removal as hereinafter provided.

 

Section 3.                                            Removal.  Any officer or agent elected by the board of
directors may be removed by the board of directors at its discretion, with or
without cause, but such removal shall be without prejudice to the contract
rights, if any, of the person so removed. 
The election or appointment of an officer shall not, of itself, create
contract rights.

 

Section 4.                                            Vacancies.  Any vacancy occurring in any office because
of death, resignation, removal, disqualification or otherwise, may be filled by
the board of directors.

 

Section 5.                                            Compensation.  Compensation of all officers shall be fixed
by the board of directors, and no officer shall be prevented from receiving
such compensation by virtue of his or her also being a director of the
Corporation.

 

Section 6.                                            Chairman
of the Board.  The board of directors
may elect a chairman of the board from among its members.  Such person shall preside at all meetings of
the board of directors and stockholders and shall have all powers and shall
perform all duties incident to the office of the chairman of the board that may
be required by law and shall have such other powers and perform such other
duties as may be prescribed by the board of directors or provided in these
by-laws.

 

Section 7.                                            Chief
Executive Officer.  The chief
executive officer of the Corporation shall, subject to the powers of the board
of directors, have general charge of the business, operations, affairs and property
of the Corporation, and control over its officers, agents and employees; and
shall see that all orders and resolutions of the board of directors are carried
into effect.  The chief executive officer
shall report to the board of directors. 
The chief executive officer is authorized to execute bonds, mortgages
and other contracts requiring a seal, under the seal of the Corporation, except
where required or permitted by law to be otherwise signed and executed and
except where the signing and execution thereof shall be expressly delegated by
the board of directors to some other officer or agent of the Corporation. The
chief executive officer 

 

8

 

shall have such other powers and perform such other
duties as may be prescribed by the board of directors or as may be provided in
these by-laws.

 

Section 8.                                            Chief
Financial Officer.  The chief
financial officer of the Corporation shall, under the direction of the chief
executive officer, be responsible for all financial and accounting matters and
for the direction of the office of controller. The chief financial officer
shall have such other powers and perform such other duties as may be prescribed
by the chief executive officer or the board of directors or as may be provided
in these by-laws.

 

Section 9.                                            Vice-presidents.  The vice-president, or if there shall be more
than one, the vice-presidents, shall perform such duties and have such powers
as the board of directors, the chief executive officer or these by-laws may,
from time to time, prescribe. The vice-presidents may also be designated as
executive vice-presidents or senior vice-presidents, as the board of directors or
the chief executive officer may from time to time prescribe.

 

Section 10.                                      The
Secretary and Assistant Secretaries. 
The secretary shall attend all meetings of the board of directors, all
meetings of the committees thereof and all meetings of the stockholders and
record all the proceedings of the meetings in a book or books to be kept for
that purpose or shall ensure that his or her designee or such other person
requested by the chairman of the board attends each such meeting to act in such
capacity. Under the chairman of the board’s supervision, the secretary shall
give, or cause to be given, all notices required to be given by these by-laws
or by law; shall have such powers and perform such duties as the board of
directors, the chairman of the board, the chief executive officer or these
by-laws may, from time to time, prescribe; and shall have custody of the
corporate seal of the Corporation. The secretary, or an assistant secretary,
shall have authority to affix the corporate seal to any instrument requiring it
and when so affixed, it may be attested by his or her signature or by the
signature of such assistant secretary. The board of directors may give general authority to any other officer to
affix the seal of the Corporation and to attest the affixing by his or her
signature. The assistant secretary, or if there be more than one, any of the
assistant secretaries, shall, in the absence or disability of the secretary,
perform the duties and exercise the powers of the secretary and shall perform
such other duties and have such other powers as the board of directors, the
chairman of the board, the chief executive officer, or secretary may, from time
to time, prescribe.

 

Section 11.                                      Additional
Officers.  The board of directors or
the chief executive officer may from time to time appoint such other officers
as the board of directors or the chief executive officer may deem advisable and
such officers shall have such authority and shall perform such duties as may
from time to time be assigned to them by the board of directors or the chief
executive officer.

 

Section 12.                                      Absence
or Disability of Officers.  In the
case of the absence or disability of any officer of the Corporation and of any
person hereby authorized to act in such officer’s place during such officer’s
absence or disability, the board of directors may by resolution delegate the
powers and duties of such officer to any other officer or to any director, or
to any other person selected by it.

 

9

 

ARTICLE V

INDEMNIFICATION OF OFFICERS, DIRECTORS AND OTHERS

 

Section 1.                                            Right
to Indemnification.  Each person who
was or is made a party or is threatened to be made a party to or is otherwise
involved (including involvement as a witness) in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a “proceeding”), by reason of the fact that he or she is or was a
director or officer of the Corporation or, while a director or officer of the
Corporation, is or was serving at the request of the Corporation as a director,
officer, employee or agent of another corporation or of a partnership, joint
venture, trust or other enterprise, including service with respect to an
employee benefit plan (hereinafter, an “indemnitee”), whether the basis of such
proceeding is alleged action in an official capacity as a director or officer
or in any other capacity while serving as a director or officer, shall be
indemnified and held harmless by the Corporation to the fullest extent
authorized by the Delaware General Corporation Law, as the same exists or may
hereafter be amended (but, in the case of any such amendment, only to the
extent that such amendment permits the Corporation to provide broader
indemnification rights than permitted prior thereto), against all expense,
liability and loss (including attorneys’ fees, judgments, fines, ERISA exercise
taxes or penalties and amounts paid in settlement) reasonably incurred or
suffered by such indemnitee in connection therewith and such indemnification
shall continue as to an indemnitee who has ceased to be a director, officer,
employee or agent and shall inure to the benefit of the indemnitee’s heirs,
executors and administrators; provided, however, that, except as provided in Section 2
of Article V with respect to proceedings to enforce rights to
indemnification, the Corporation shall indemnify any such indemnitee in
connection with a proceeding (or part thereof) initiated by such indemnitee
only if such proceeding (or part thereof) was authorized by the board of
directors of the Corporation. The right to indemnification conferred in this Section 1
of Article V shall be a contract right and shall include the right to be
paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition
(hereinafter an “advance of expenses”); provided, however, that, if and to the
extent that the Delaware General Corporation Law requires, an advance of
expenses incurred by an indemnitee in his or her capacity as a director or
officer (and not in any other capacity in which service was or is rendered by
such indemnitee, including, without limitation, service to an employee benefit
plan) shall be made only upon delivery to the Corporation of an undertaking
(hereinafter an “undertaking”), by or on behalf of such indemnitee, to repay
all amounts so advanced if it shall ultimately be determined by final judicial
decision from which there is no further right to appeal (hereinafter a “final
adjudication”) that such indemnitee is not entitled to be indemnified for such
expenses under this Section 1 of Article V or otherwise. The
Corporation may, by action of its board of directors, provide indemnification
to employees and agents of the Corporation with the same scope and effect as
the foregoing indemnification of directors and officers.

 

Section 2.                                            Procedure
for Indemnification.  Any
indemnification of a director or officer of the Corporation or advance of
expenses under Section 1 of this Article V
shall be made promptly, and in any event within forty-five (45) days (or, in
the case of an advance of expenses, twenty (20) days), upon the written request
of the director or officer. If a determination by the Corporation that the
director or officer is entitled to indemnification pursuant to this Article V is required, and the
Corporation fails to respond within sixty (60) days to a written request for
indemnity, the Corporation shall be deemed to have approved the request. If the
Corporation 

 

10

 

denies a written request for indemnification or
advance of expenses, in whole or in part, or if payment in full pursuant to
such request is not made within forty-five (45) days (or, in the case of an
advance of expenses, twenty (20) days), the right to indemnification or
advances as granted by this Article V
shall be enforceable by the director or officer in any court of competent
jurisdiction. Such person’s costs and expenses incurred in connection with
successfully establishing his or her right to indemnification, in whole or in
part, in any such action shall also be indemnified by the Corporation. It shall
be a defense to any such action (other than an action brought to enforce a
claim for the advance of expenses where the undertaking required pursuant to Section 1
of this Article V, if any,
has been tendered to the Corporation) that the claimant has not met the
standards of conduct which make it permissible under the Delaware General
Corporation Law for the Corporation to indemnify the claimant for the amount
claimed, but the burden of such defense shall be on the Corporation. Neither
the failure of the Corporation (including its board of directors, independent
legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that
indemnification of the claimant is proper in the circumstances because he or
she has met the applicable standard of conduct set forth in the Delaware
General Corporation Law, nor an actual determination by the Corporation
(including its board of directors, independent legal counsel, or its
stockholders) that the claimant has not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that the
claimant has not met the applicable standard of conduct. The procedure for
indemnification of other employees and agents for whom indemnification is provided
pursuant to Section 1 of this Article V shall be the same procedure
set forth in this Section 2 for directors or officers, unless otherwise
set forth in the action of the board of directors providing indemnification for
such employee or agent.

 

Section 3.                                            Service
for Subsidiaries.  Any person serving
as a director, officer, employee or agent of a Subsidiary shall be conclusively
presumed to be serving in such capacity at the request of the Corporation.

 

Section 4.                                            Reliance.  Persons who after the date of the adoption of
this provision become or remain directors or officers of the Corporation or
who, while a director or officer of the Corporation, become or remain a
director, officer, employee or agent of a Subsidiary, shall be conclusively
presumed to have relied on the rights to indemnity, advance of expenses and
other rights contained in this Article V
in entering into or continuing such service. The rights to indemnification and
to the advance of expenses conferred in this Article V shall apply to claims made against an indemnitee
arising out of acts or omissions which occurred or occur both prior and
subsequent to the adoption hereof.

 

Section 5.                                            Non-Exclusivity
of Rights.  The rights to
indemnification and to the advance of expenses conferred in this Article V shall not be exclusive
of any other right which any person may have or hereafter acquire under the
Certificate of Incorporation or under any statute, by-law, agreement, vote of
stockholders or disinterested directors or otherwise.

 

Section 6.                                            Insurance.  The Corporation may purchase and maintain
insurance on its own behalf and on behalf of any person who is or was a
director, officer, employee or agent of the Corporation or was serving at the
request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise against any
expense, liability or loss asserted against him or her and incurred by him or her in any such 

 

11

 

capacity, whether or not the
Corporation would have the power to indemnify such person against such
expenses, liability or loss under the Delaware General Corporation Law.

 

ARTICLE VI

CERTIFICATES OF STOCK

 

Section 1.                                            Form.  Every holder of stock in the Corporation
shall be entitled to have a certificate, signed by, or in the name of the
Corporation by the chief executive officer or a vice-president and the
secretary or an assistant secretary of the Corporation, certifying the number
of shares owned by such holder in the Corporation. If such a certificate is
countersigned (1) by a transfer agent or an assistant transfer agent other than
the Corporation or its employee or (2) by a registrar, other than the
Corporation or its employee, the signature of any such chief executive officer,
vice-president, secretary, or assistant secretary may be facsimiles. In case
any officer or officers who have signed, or whose facsimile signature or
signatures have been used on, any such certificate or certificates shall cease to
be such officer or officers of the Corporation whether because of death,
resignation or otherwise before such certificate or certificates have been
delivered by the Corporation, such certificate or certificates may nevertheless
be issued and delivered as though the person or persons who signed such
certificate or certificates or whose facsimile signature or signatures have
been used thereon had not ceased to be such officer or officers of the
Corporation. All certificates for shares shall be consecutively numbered or
otherwise identified. The name of the person to whom the shares represented
thereby are issued, with the number of shares and date of issue, shall be
entered on the books of the Corporation. Shares of stock of the Corporation
shall only be transferred on the books of the Corporation by the holder of
record thereof or by such holder’s attorney duly authorized in writing, upon
surrender to the Corporation of the certificate or certificates for such shares
endorsed by the appropriate person or persons, with such evidence of the
authenticity of such endorsement, transfer, authorization, and other matters as
the Corporation may reasonably require, and accompanied by all necessary stock
transfer stamps. In that event, it shall be the duty of the Corporation to
issue a new certificate to the person entitled thereto, cancel the old
certificate or certificates, and record the transaction on its books. The board
of directors may appoint a bank or trust company organized under the laws of
the United States or any state thereof to act as its transfer agent or registrar, or both in connection with the
transfer of any class or series of securities of the Corporation.

 

Section 2.                                            Lost
Certificates.  The board of directors
may direct a new certificate or certificates to be issued in place of any
certificate or certificates previously issued by the Corporation alleged to
have been lost, stolen, or destroyed, upon the making of an affidavit of that
fact by the person claiming the certificate of stock to be lost, stolen, or
destroyed. When authorizing such issue of a new certificate or certificates,
the Corporation may, in its discretion and as a condition precedent to the
issuance thereof, require the owner of such lost, stolen, or destroyed
certificate or certificates, or his or her legal representative, to give the
Corporation a bond sufficient to indemnify the Corporation against any claim
that may be made against the Corporation on account of the loss, theft or
destruction of any such certificate or the issuance of such new certificate.

 

Section 3.                                            Fixing
a Record Date for Stockholder Meetings. 
In order that the Corporation may determine the stockholders entitled to
notice of or to vote at any meeting of 

 

12

 

stockholders or any adjournment thereof, the board of
directors may fix a record date, which record date shall not precede the date
upon which the resolution fixing the record date is adopted by the board of
directors, and which record date shall not be more than sixty (60) nor less
than ten (10) days before the date of such meeting. If no record date is fixed
by the board of directors, the record date for determining stockholders
entitled to notice of or to vote at a meeting of stockholders shall be the
close of business on the next day preceding the day on which notice is first
given. A determination of stockholders of record entitled to notice of or to
vote at a meeting of stockholders shall apply to any adjournment of the
meeting; provided, however, that the board of directors may fix a new record
date for the adjourned meeting.

 

Section 4.                                            Fixing
a Record Date for Other Purposes.  In
order that the Corporation may determine the stockholders entitled to receive
payment of any dividend or other distribution or allotment or any rights or the
stockholders entitled to exercise any rights in respect of any change,
conversion or exchange of stock, or for the purposes of any other lawful
action, the board of directors may fix a record date, which record date shall not
precede the date upon which the resolution fixing the record date is adopted,
and which record date shall be not more than sixty (60) days prior to such
action. If no record date is fixed, the record date for determining
stockholders for any such purpose shall be at the close of business on the day on which the board of directors adopts the
resolution relating thereto.

 

Section 5.                                            Registered
Stockholders.  Prior to the surrender
to the Corporation of the certificate or certificates for a share or shares of
stock with a request to record the transfer of such share or shares, the
Corporation may treat the registered owner as the person entitled to receive
dividends, to vote, to receive notifications, and otherwise to exercise all the
rights and powers of an owner. The Corporation shall not be bound to recognize
any equitable or other claim to or interest in such share or shares on the part
of any other person, whether or not it shall have express or other notice
thereof.

 

Section 6.                                            Subscriptions
for Stock.  Unless otherwise provided
for in the subscription agreement, subscriptions for shares shall be paid in
full at such time, or in such installments and at such times, as shall be
determined by the board of directors. Any call made by the board of directors for
payment on subscriptions shall be uniform as to all shares of the same class or
as to all shares of the same series. In case of default in the payment of any
installment or call when such payment is due, the Corporation may proceed to
collect the amount due in the same manner as any debt due the Corporation.

 

ARTICLE VII

GENERAL PROVISIONS

 

Section 1.                                            Dividends.  Dividends upon the capital stock of the
Corporation, subject to the provisions of the certificate of incorporation, if
any, may be declared by the board of directors at any regular or special
meeting, in accordance with applicable law. Dividends may be paid in cash, in
property, or in shares of the capital stock, subject to the provisions of the
certificate of incorporation. Before payment of any dividend, there may be set
aside out of any funds of the Corporation available for dividends such sum or
sums as the directors from time to time, in their absolute discretion, think
proper as a reserve or reserves to meet contingencies, or for equalizing dividends,
or for repairing or maintaining any property of the Corporation, or any 

 

13

 

other purpose and the directors may modify or abolish
any such reserve in the manner in which it was created.

 

Section 2.                                            Checks,
Drafts or Orders.  All checks,
drafts, or other orders for the payment of money by or to the Corporation and
all notes and other evidences of indebtedness issued in the name of the Corporation shall be signed by such
officer or officers, agent or agents of the Corporation, and in such manner, as
shall be determined by resolution of the board of directors or a duly
authorized committee thereof.

 

Section 3.                                            Contracts.  In addition to the powers otherwise granted
to officers pursuant to Article IV hereof, the board of directors may
authorize any officer or officers, or any agent or agents, of the Corporation
to enter into any contract or to execute and deliver any instrument in the name
of and on behalf of the Corporation, and such authority may be general or
confined to specific instances.

 

Section 4.                                            Loans.  The Corporation may not lend money to, or
guarantee any obligation of, or otherwise assist any officer or other employee
of the Corporation or of its subsidiaries, including any officer or employee
who is a director of the Corporation or its subsidiaries other than as
permitted by applicable law and as determined, in the judgment of the
directors, that such loan, guaranty or assistance may reasonably be expected to
benefit the Corporation. The loan, guaranty or other assistance may be with or
without interest, and may be unsecured, or secured in such manner as the board
of directors shall approve, including, without limitation, a pledge of shares
of stock of the Corporation. Nothing in this section contained shall be
deemed to deny, limit or restrict the powers of guaranty or warranty of the
Corporation at common law or under any statute.

 

Section 5.                                            Fiscal
Year.  The fiscal year of the
Corporation shall be fixed by resolution of the board of directors.

 

Section 6.                                            Corporate
Seal.  The board of directors shall
provide a corporate seal which shall be in the form of a circle and shall have
inscribed thereon the name of the Corporation and the words “Corporate Seal,
Delaware.” The seal may be used by causing it or a facsimile thereof to be
impressed or affixed or reproduced or otherwise.

 

Section 7.                                            Voting
Securities Owned By Corporation. 
Voting securities in any other corporation held by the Corporation shall
be voted by an officer of the Corporation or other person as authorized or
directed by the board of directors, which authorization or direction may be
general or confined to specific instances. 
Any person authorized to vote securities shall have the power to appoint
proxies, with general power of substitution.

 

Section 8.                                            Inspection
of Books and Records.  Any
stockholder of record, in person or by attorney or other agent, shall, upon
written demand under oath stating the purpose thereof, have the right during
the usual hours for business to inspect for any proper purpose the Corporation’s
stock ledger, a list of its stockholders, and its other books and records, and
to make copies or extracts therefrom. A proper purpose shall mean any purpose
reasonably related to such person’s interest as a stockholder. In every
instance where an attorney or other agent shall be the person who seeks the
right to inspection, the demand under oath shall be accompanied by 

 

14

 

a power of attorney or such other writing which
authorizes the attorney or other agent to so act on behalf of the stockholder.
The demand under oath shall be directed to the Corporation at its registered
office in the State of Delaware or at its principal place of business. The
Corporation shall have a reasonable amount of time to respond to any such
request.

 

Section 9.                                            Section Headings.  Section headings in these by-laws are
for convenience of reference only and shall not be given any substantive effect
in limiting or otherwise construing any provision herein.

 

Section 10.                                      Inconsistent
Provisions.  In the event that any
provision of these by-laws is or becomes inconsistent with any provision of the
certificate of incorporation, the General Corporation Law of the State of
Delaware or any other applicable law, the provision of these by-laws shall not
be given any effect to the extent of such inconsistency but shall otherwise be
given full force and effect.

 

ARTICLE VIII

AMENDMENTS

 

These by-laws may be
amended, altered, or repealed and new by-laws adopted at any meeting of the
board of directors by the affirmative vote of the majority of the total number
of directors then in office; provided that any amendment, alteration or repeal
of Sections 1, 2 or 9 of Article II, Sections 2, 3, 4 or 5 of Article III,
Section 8 of Article VII, Article VIII or any amendment,
alteration or repeal of Article V that results in an adverse effect upon
the indemnification provided to directors therein, in each of the foregoing
cases, pursuant to the affirmative vote of the majority of the total number of
directors then in office also shall require the approval of at least one
Non-GOF Board Member (as such term is defined in the Shareholders Agreement);
provided further that the foregoing approval of at least one Non-GOF Board
Member shall only be required if both (a) at least one Non-GOF Board Member has
the right to a seat on the board of directors pursuant to the Shareholders
Agreement, and (b) at the time such approval is sought one of the following is
true (i) at least one Non-GOF Board Member is a member of the board of
directors, (ii) if a Non-GOF Board Member is not a member of the board of
directors, a Non-GOF Board Member shall have been a member of the board of
directors within sixty days of such time, or (iii) if a Non-GOF Board Member is
not, and, within sixty days of such time, has not been, a member of the board
of directors, a nomination or designation of a proposed Non-GOF Board Member
shall have been made in good faith pursuant to the terms of the Shareholders Agreement
and not withdrawn, and such nominee or designee shall not have refused or
declined appointment to the board of directors. The fact that the power to
adopt, amend, alter, or repeal the by-laws has been conferred upon the board of
directors shall not divest the stockholders of such powers as set forth in the
certificate of incorporation.

 

15

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