Document:

Exhibit

Exhibit 10(e)(e)(e)(e)
Roanoke Gas Company
Standard Agreement for Services 

This services agreement (the “AGREEMENT”) is between Roanoke Gas Company, a Virginia corporation, with an office at 519 Kimball Avenue, Roanoke, Virginia 24016 (“ROANOKE GAS”) and John S. D’Orazio with an address of 54-396 Union Mill Road #1199, Kapaau, Hawaii 96755 (the “CONTRACTOR”).  

ARTICLE 1:  SCOPE OF SERVICES
The CONTRACTOR shall provide the following:

Consulting services, including but not limited to advice and guidance regarding operating and managing a Virginia natural gas utility, as requested from the Company or the Board of Directors for the period February 6, 2020 through February 1, 2021. 

ARTICLE 2:  COMPENSATION 
Compensation by ROANOKE GAS to the CONTRACTOR will be as provided below:
 
Fixed Fee:  $130,000.00

ARTICLE 3:  TERMS OF PAYMENT
Payment by ROANOKE GAS to CONTRACTOR will be as follows:

To be paid in equal installments of $13,000.00 on the first business day of each month beginning March 2020 and ending December 2020.

A. INVOICING – Not Applicable

ARTICLE 4: OTHER AGREEMENTS

		
	A.
	INDEPENDENT CONTRACTOR 

CONTRACTOR shall perform all work as an independent contractor and will not be considered as an agent, joint venture, or employee of ROANOKE GAS.  

B. PERFORMANCE
The standard of care applicable to CONTRACTOR’s services will be the degree of skill and diligence normally employed by others performing the same or similar services except to the extent that this Agreement calls for a higher standard of care, performance, or outcome in which case the higher or more precise standard shall apply

C. INDEMNIFICATION
CONTRACTOR agrees to defend, release, indemnify and hold harmless ROANOKE GAS, its employees, officers, directors, and agents (individually “INDEMNITEE”)  from any claims, damages, losses, and  costs, including, but not limited to, attorney’s fees and litigation costs, arising out of or related to any breach of the CONTRACTOR’S obligations under this Agreement (“CLAIMS”) whether the CLAIMS be asserted by any INDEMNITEE or againt any INDEMNITEE by any third party.   For purposes of this provision breach of this AGREEMENT shall mean not only the failure to perform the express terms of this AGREEMENT, but also any negligent or intentional wrongful act or omission by CONTRACTOR that causes personal injury, tangible property damage, or econcomic loss damages to be incurred by any INDEMNITEE or any third party that asserts a claim against any INDEMNITEE.   

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D. CODES, LAWS, AND REGULATIONS
CONTRACTOR will comply in all material respects with all applicable codes, laws, regulations, standards, and ordinances  (“LAWS”) in force during the term of this AGREEMENT.  

E. PERMITS, LICENSES, AND FEES
CONTRACTOR will obtain and pay for all permits and licenses required by law that are necessary for the CONTRACTOR’s performance of the Scope of Services and will give all necessary notices.  

F. PUBLICITY
CONTRACTOR will not disclose the nature of its Scope of Services, or engage in any other publicity or public media disclosures with respect to the Scope of Services without the prior written consent of ROANOKE GAS.
    
G. KEY PERSONNEL – Not Applicable

H. ACCESS TO RECORDS– Not Applicable

I. SUSPENSION OF WORK
The CONTRACTOR will, upon written notice from ROANOKE GAS, suspend, delay or interrupt all or a part of the Scope of Services.  In such event, the CONTRACTOR will resume the Scope of Services upon written notice from ROANOKE GAS, and a reasonable extension of time and equitable adjustment shall be paid based on CONTRACTOR’S demonstrated direct costs caused by such suspension and resumption of services

J. SCHEDULE – Not Applicable

K. INSURANCE – Not Applicable

L. LIMITATIONS OF LIABILITY
ROANOKE GAS  SHALL NOT BE LIABLE TO CONTRACTOR FOR ANY INDIRECT, CONSEQUENTIAL, OR SPECIAL DAMAGES, INCLUDING FOR LOSS OF PROFITS, ARISING OUT OF OR RELATED TO ROANOKE GAS’S  BREACH OF ANY OF ITS OBLIGATIONS UNDER THIS AGREEMENT.

ARTICLE 5:  CHANGES
		
	A.
	CHANGES

ROANOKE GAS may, by written Change Order only, make changes, revisions, additions, or deletions (collectively hereinafter called “changes”) in the Scope of Services.  

CONTRACTOR shall not perform any additional or changed work without the parties having executed a written Change Order, and CONTRACTOR agrees that should it do so, it will have without more conclusively waived any right to additional compensation for such additional or changed work and will be liable for any damages caused ROANOKE GAS because of CONTRACTOR’S unauthorized performance of additional or changed work.

Should CONTRACTOR discover any facts to suggest the necessity for additional or changed work, it shall give ROANOKE GAS written notice thereof within three (3) days of such discovery so that ROANOKE GAS in a timely manner can consider whether to authorize the additional or changed work.

ARTICLE 6:  GENERAL LEGAL PROVISIONS

A. PROPRIETARY INFORMATION

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Except when otherwise authorized in writing by ROANOKE GAS, all trade secrets, computer programs, documentation, drawings, specifications, technical data, digital data, and other confidential and proprietary information furnished to CONTRACTOR either by ROANOKE GAS or developed by CONTRACTOR or others in connection with the Scope of Services are, and will remain, the property of ROANOKE GAS and may not be copied or otherwise reproduced or used in any way except in connection with the Scope of Services or disclosed to third parties or used in any manner detrimental to the interests of ROANOKE GAS.

B. ASSIGNMENTS
This is a personal services AGREEMENT.  CONTRACTOR may not assign any of the duties or rights or any claim arising out of or related to this AGREEMENT.  Any unauthorized assignment is void and unenforceable.  These conditions and the entire AGREEMENT are binding on the heirs, successors, and assigns of the parties hereto.

C. WAIVERS
No waiver by either party of any default by the other party in the performance of any provision of this AGREEMENT will operate as, or be construed as, a waiver of any future default, whether like or different in character.

D. FORCE MAJEURE
Neither party to this AGREEMENT will be liable to the other party for delays in performing the Scope of Services, or for the direct or indirect cost resulting from such delays, that may result from labor strikes, riots, war, acts of governmental authorities, extraordinary weather conditions or other natural catastrophe, or any cause beyond the reasonable control or contemplation of either party.

E. AUTHORIZATION TO PROCEED
Unless otherwise provided in this AGREEMENT, execution of this AGREEMENT by ROANOKE GAS will be authorization for CONTRACTOR to proceed with the Scope of Services.

F. NO THIRD PARTY BENEFICIARIES
This AGREEMENT gives no rights or benefits to anyone other than the CONTRACTOR AND ROANOKE GAS and has no intended third party beneficiaries.

G. JURISDICTION, VENUE, AND DISPUTE RESOLUTION
The law of the Commonwealth of Virginia (without regard to its conflicts of laws principles) shall govern the AGREEMENT.  

CONTRACTOR shall given written notice of any claim it may have against ROANOKE GAS within seven (7) days of the event giving rise to the claim.  Failure to give such notice shall constitute a conclusive waiver of the claim. 

Any claim by either party shall be first submitted to mediation to be conducted in Roanoke, Virginia.  The parties shall agree on the mediator with the cost of the mediation split between the parties.  In the event that the parties cannot agree on the mediator, the chief judge of the Circuit Court for the City of Roanoke shall appoint the mediator. 

If the dispute is not resolved in mediation, either party may initiate a formal dispute resolution proceeding to prosecute its claim.  Prior to CONTRACTOR doing so, it will send ROANOKE GAS a written inquiry as to whether ROANOKE GAS prefers the matter be litigated or arbitrated.  If the election is arbitration, the dispute will be administered according to the Rules of the American Arbitration Association and conducted in Roanoke, Viriginia.  If the election is litigation, the dispute will be litigated in the Circuit Court for the City of Roanoke, which shall be the exclusive venue for the dispute resolution proceeding. 

H. SOLICITING EMPLOYMENT

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Neither party to this AGREEMENT will solicit an employee of the other party, nor hire or make an offer of employment to an employee of the other party, without prior written consent of the other party, during the time this AGREEMENT is in effect.

I. SEVERABILITY AND SURVIVAL
If any of the Provisions contained in this AGREEMENT are held invalid, illegal, or unenforceable, the unenforceability of the other remaining provisions shall not be impaired thereby.  Limitations of liability, indemnities, and other express representations shall survive termination of this AGREEMENT for any cause.

J. TERMINATION
(1)  TERMINATION FOR CONVENIENCE
All or part of this AGREEMENT may be terminated by ROANOKE GAS  at its convenience.  In such event, the CONTRACTOR will be entitled to compensation for Services performed up to the date of termination and reasonable termination expenses.  The CONTRACTOR will not be entitled to compensation for profit on Services not performed.
(2)  TERMINATION FOR DEFAULT
ROANOKE GAS may, by written notice, terminate the whole or any part of the AGREEMENT for default in the event that the CONTRACTOR fails to perform any of the provisions of this AGREEMENT and does not correct such to ROANOKE GAS’S reasonable satisfaction within a period of seven (7) working days after receipt of written notice from ROANOKE GAS specifying such failure. In the event of termination for CONTRACTOR's default, ROANOKE GAS may withhold any payments otherwise due to CONTRACTOR to the extent necessary to compensate ROANOKE GAS for its damages.  Should the withhold payments not exhaust all of ROANOKE GAS’S damages  it shall make written demand of CONTRACTOR to pay such remaining damages and CONTRACTOR shall do so within seven (7) days of such notice. 

If it is ever adjudged that ROANOKE GAS lacked sufficient grounds to terminate for default, the termination shall be deemed one for convenience and CONTRACTOR’s remedy shall be exclusively what is provided herein for such convenience termination. 

ARTICLE 7:  ATTACHMENTS AND SIGNATURES

A. ATTACHMENTS:  None
    
B.  This AGREEMENT may be executed by electronic transmission and in counterparts.  
    
	
						
	 
	Approved for CONTRACTOR
	 
	Accepted for ROANOKE GAS COMPANY

	 
	 
	 
	 
	 
	 

	 
	By
	/s/ John S. D'Orazio                     
	 
	By
	/s/ Paul W. Nester                    

	 
	Name
	John S. D'Orazio
	 
	Name
	Paul W. Nester

	 
	Title
	N/A
	 
	Title
	President

	 
	Date
	December 2, 2019
	 
	Date
	December 2, 2019

    

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Exhibit 4.1

DESCRIPTION OF SECURITIES

The summary of the general terms and provisions of the capital stock of Surmodics, Inc. (the “Company”) set forth below does not purport to be complete and is subject to and qualified by reference to the Company’s Restated Articles of Incorporation, as amended (the “Articles”) and Restated Bylaws, as amended (the “Bylaws” and together with the Articles, the “Charter Documents”), each of which is incorporated herein by reference and attached as an exhibit to the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.  For additional information, please read the Company’s Charter Documents and the applicable provisions of the Minnesota Business Corporation Act (the “MBCA”).

Capital Stock

 

The Company is authorized to issue up to 50,000,000 shares, of which 45,000,000 have been designated voting common stock, $.05 par value, 450,000 have been designated as Series A preferred stock, $0.05 par value, and 4,550,00 are currently undesignated shares.  The Company’s board of directors (the “Board”) has the power and authority to fix by resolution any designation, class, series, voting power, preference, right, qualification, limitation, restriction, dividend, time and price of redemption and conversion right with respect to the capital stock. As of September 30, 2019, 13,504,102 shares of the Company’s common stock, par value $0.05 per share (the “Common Stock”), were issued and outstanding and no shares of preferred stock were issued and outstanding.

Voting Rights

Holders of Common Stock have the exclusive power to vote on all matters presented to the Company’s shareholders. Each holder of Common Stock is entitled to one vote per share. Holders of Common Stock may not cumulate their votes when voting for directors, which means that a holder cannot cast more than one vote per share for each director nominee.

Dividend Rights

Holders of Common Stock may receive dividends when declared by the Board out of the Company’s funds that it can legally use to pay dividends. The Company may pay dividends in cash, stock or other property. To date, the Company has not paid or declared any cash dividends on the Common Stock. The declaration and payment of future dividends, if any, on the Common Stock will be at the sole discretion of the Board and will depend on the Company’s continued earnings, financial condition, capital requirements and other factors that the Board deems relevant. In addition, contractual restrictions from time to time may impose limitations on the Company’s ability to declare or pay future dividends. All of the issued and outstanding common shares are nonassessable.

Liquidation Rights

Common shares are entitled to share ratably in all of the Company’s assets available for distribution upon liquidation, dissolution or winding up of the affairs of the Company.

No Preemptive Rights

No shareholder of the Company has any preferential, preemptive or other rights of subscription to any shares of the Company allotted or sold or to be allotted or sold, or to any obligations or securities convertible into any class or series of shares of the Company, nor any right of subscription to any part thereof.

Listing    

 

The Common Stock is currently traded on the Nasdaq Global Select Market under the symbol “SRDX.”

 

 

Anti-Takeover Provisions

The Charter Documents and the MBCA contain certain provisions that may discourage an unsolicited takeover of the Company or make an unsolicited takeover of the Company more difficult. The following are some of the more significant anti-takeover provisions that are applicable to the Company:

Authorized but Unissued Capital Stock 

Minnesota law does not require shareholder approval for any issuance of authorized shares. However, the listing requirements of the Nasdaq Global Select Market, which would apply so long as the Common Stock remains listed on the Nasdaq Global Select Market, require shareholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or then outstanding number of shares of Common Stock. 

One of the effects of the existence of unissued and unreserved capital stock may be to enable the Board to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of the Company’s management and possibly deprive the shareholders of opportunities to sell their shares of Common Stock at prices higher than prevailing market prices.

Advance Notice Requirements for Director Nominations and Shareholder Proposals 

The Bylaws provide that shareholders seeking to nominate candidates for election as directors or to bring business before an annual meeting of shareholders must provide timely notice of their proposal in writing to the Company’s corporate secretary. 

Generally, to be timely, a shareholder’s notice must be received at the Company’s principal executive offices not less than 90 days prior to the first anniversary of the previous year’s annual meeting. The Bylaws also specify requirements as to the form and content of a shareholder’s notice. 

These provisions may impede shareholders’ ability to bring matters before an annual meeting of shareholders or make nominations for directors at an annual meeting of shareholders and may delay, deter or prevent tender offers or takeover attempts that shareholders may believe are in their best interests, including tender offers or attempts that might allow shareholders to receive premiums over the market price of their common stock. 

Anti-Takeover Provisions of the Minnesota Business Corporation Act 

Section 302A.671 of the MBCA applies, with certain exceptions, to any acquisitions of the Common  Stock from a person other than us, and other than in connection with certain mergers and exchanges to which we are a party and certain tender offers or exchange offers approved in advance by a disinterested Board committee, resulting in the beneficial ownership of 20% or more of the voting power of the Company’s then outstanding stock. Section 302A.671 requires approval of the granting of voting rights for the shares received pursuant to any such acquisitions by a vote of the Company’s shareholders holding a majority of the voting power of the Company’s outstanding shares and a majority of the voting power of the Company’s outstanding shares that are not held by the acquiring person, the Company’s officers or those non-officer employees, if any, who are also Company directors. Similar voting requirements are imposed for acquisitions resulting in beneficial ownership of 33 1⁄3% or more or a majority of the voting power of the Company’s then outstanding stock. In general, shares acquired without this approval are denied voting rights in excess of the 20%, 33 1⁄3% or 50% thresholds and, to that extent, can be called for redemption at their then fair market value by us within 30 days after the acquiring person has failed to deliver a timely information statement to the Company or the date the Company’s shareholders voted not to grant voting rights to the acquiring person’s shares. 

Section 302A.673 of the MBCA generally prohibits any business combination by the Company, or any subsidiary of the Company, with any shareholder that beneficially owns 10% or more of the voting power of the Company’s 

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outstanding shares (an “interested shareholder”) within four years following the time the interested shareholder crosses the 10% stock ownership threshold, unless the business combination is approved by a committee of disinterested members of the Board before the time the interested shareholder crosses the 10% stock ownership threshold. 

Section 302A.675 of the MBCA generally prohibits an offeror from acquiring the Company’s shares within two years following the offeror’s last purchase of the Company’s shares pursuant to a takeover offer with respect to that class, unless the Company’s shareholders are able to sell their shares to the offeror upon substantially equivalent terms as those provided in the earlier takeover offer. This statute will not apply if the acquisition of shares is approved by a committee of disinterested members of the Board before the purchase of any shares by the offeror pursuant to the earlier takeover offer. 

Section 302A.553 of the MBCA prohibits a corporation from buying shares at an above-market price from a greater than 5% shareholder who has held the shares for less than two years unless (i) the purchase is approved by holders of a majority of the outstanding shares entitled to vote or (ii) the corporation makes an equal or better offer to all shareholders for all other shares of that class or series and any other class or series into which they may be converted.

 

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