Document:

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AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF

THE TORO COMPANY

          The Toro Company (hereinafter called the “corporation”), a corporation
organized and existing under and by virtue of the General Corporation Law of
the State of Delaware, does hereby certify:

          FIRST: The present name of the corporation is The Toro Company, which is
the name under which the corporation was originally incorporated; and the date
of filing the original Certificate of Incorporation of the corporation with the
Secretary of State of the State of Delaware was November 7, 1983.

          SECOND: This Amended and Restated Certificate of Incorporation was duly
adopted by and in accordance with the provisions of Sections 242 and 245 of the
General Corporation Law of the State of Delaware as set forth in Title 8 of the
Delaware Code.

          THIRD: This Amended and Restated Certificate of Incorporation not only
restates and integrates, but also amends the provisions of the corporation’s
Certificate of Incorporation as heretofore amended or supplemented.

          FOURTH: All amendments reflected in this Amended and Restated Certificate
of Incorporation have been duly proposed by the Board of Directors of the
corporation and adopted by the stockholders of the corporation in the manner
and by the vote prescribed by Section 242 of the General Corporation Law of the
State of Delaware.

          FIFTH: The text of the Certificate of Incorporation of the corporation is
hereby amended and restated to read in its entirety as follows:

ARTICLE I.

Name

The name of this corporation shall be The Toro Company.

ARTICLE II.

Registered Office

The address of the registered office of the corporation in the State of
Delaware is 9 East Loockerman Street, City of Dover, County of Kent, and the
name of its registered agent at that address is National Registered Agents,
Inc.

 

 

ARTICLE III.

Purpose

The purpose for which the corporation is formed is to engage in any lawful act
or activity for which corporations may be organized under the General
Corporation Law of Delaware.

ARTICLE IV.

Capital Stock

Section 1.      The corporation shall be authorized to issue three classes of shares
of capital stock to be designated, respectively, “Common Stock,” “Voting
Preferred Stock” and “Non-Voting Preferred Stock.” The total number of shares
of capital stock which the corporation shall have authority to issue is
fifty-one million eight hundred fifty thousand (51,850,000); the total number
of shares of Common Stock shall be fifty million (50,000,000), and each such
share shall have a par value of One Dollar ($1.00); the total number of shares
of Voting Preferred Stock shall be One Million (1,000,000), and each such share
shall have a par value of One Dollar ($1.00) and of which 200,000 shares are
designated as a series to be called the Series B Junior Participating Voting
Preferred Stock, such series to have the rights, voting power, preferences and
restrictions set forth in Section 2 of this Article IV; and the total number of
shares of Non-Voting Preferred Stock shall be Eight Hundred and Fifty Thousand
(850,000), and each such share shall have a par value of One Dollar ($1.00).

Except as herein provided or as otherwise provided by law or by the resolution
or resolutions adopted by the Board designating the rights, powers and
preferences of any series of Preferred Stock, the Common Stock shall have the
exclusive right to vote for the election of directors and for all other
purposes, each holder of the Common Stock being entitled to one vote for each
share held; and except as provided below with respect to the Series B Junior
Participating Voting Preferred Stock, Voting Preferred Stock and Non-Voting
Preferred Stock shall have only such voting rights, if any, as fixed by the
Board of Directors and as required by law as to matters affecting such Voting
Preferred Stock and Non-Voting Preferred Stock. Whenever this Amended and
Restated Certificate of Incorporation or the Bylaws of the corporation shall
require the affirmative vote of the holders of at least 80% of the voting power
of the then outstanding shares of the capital stock of the corporation entitled
to vote generally in the election of directors (such capital stock is
hereinafter referred to in this Amended and Restated Certificate of
Incorporation as “Voting Stock”), voting together as a single class, for the
taking of corporate action: (A) such affirmative vote shall be in addition to
any other affirmative vote required by law or by the resolution or resolutions
designating the rights, powers and preferences of any outstanding series of
Preferred Stock; and (B) each outstanding share of Common Stock shall be
entitled to one vote and each outstanding share of each series of Voting
Preferred Stock shall be entitled to the number of votes to which it is
generally entitled, pursuant to the resolution or resolutions designating the
rights, powers and preferences of such series of Preferred Stock, in the
election of directors.

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The Board of Directors is authorized to establish more than one series or class
of Common Stock, Voting Preferred Stock and Non-Voting Preferred Stock and,
other than the Series B Junior Participating Voting Preferred Stock, to fix the relative rights and
preferences of any such class or series, which rights and preferences need not
be equal.

There shall be no cumulative voting of the shares of this corporation and the
holders of shares of any class of this corporation shall not have preemptive
rights to subscribe for any shares or securities convertible into shares of
this corporation.

Section 2.       Series B Junior Participating Voting Preferred Stock.

          A.     Designation and Amount. The shares of such series shall be designated
as “Series B Junior Participating Voting Preferred Stock” (the “Series B
Preferred Stock”) and the number of shares constituting the Series B Preferred
Stock shall be 200,000. Such number of shares may be increased or decreased by
resolution of the Board of Directors; provided, that no decrease shall reduce
the number of shares of Series B Preferred Stock to a number less than the
number of shares then outstanding plus the number of shares reserved for
issuance upon the exercise of outstanding options, rights or warrants or upon
the conversion of any outstanding securities issued by the corporation
convertible into Series B Preferred Stock.

          B.     Dividends and Distributions.

	 	 	 
	(i)	 	
Subject to the rights of the holders of any
shares of any series of Voting Preferred Stock, par value
$1.00 per share, of the corporation (“Voting Preferred Stock”)
or Non-Voting Preferred Stock, par value $1.00 per share, of
the corporation (“Non-Voting Preferred Stock” and, together
with the Voting Preferred Stock, the “Preferred Stock”) (or
any similar stock) ranking prior and superior to the Series B
Preferred Stock with respect to dividends, the holders of
shares of Series B Preferred Stock, in preference to the
holders of Common Stock, par value $1.00 per share (the
“Common Stock”), of the corporation, and of any other junior
stock, shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for
the purpose, quarterly dividends payable in cash on the first
day of March, June, September and December in each year (each
such date being referred to herein as a “Quarterly Dividend
Payment Date”), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction
of a share of Series B Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (a) $1
or (b) subject to the provision for adjustment hereinafter set
forth, 100 times the aggregate per share amount of all cash
dividends, and 100 times the aggregate per share amount
(payable in kind) of all non-cash dividends or other
distributions, other than a dividend payable in shares of
Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on
the Common Stock since the immediately preceding Quarterly
Dividend Payment Date or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share
or fraction of a share of Series B

3

 

	 	 	 	 	 
	 	 	 	 	Preferred Stock. In the event the corporation shall at any time declare or pay any
dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend
in shares of Common Stock) into a greater or lesser number of
shares of Common Stock, then in each such case the amount to
which holders of shares of Series B Preferred Stock were
entitled immediately prior to such event under clause (b) of
the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of
shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such
event.
	 	 	 	 	 
	(ii)	 	 	 	The corporation shall declare a dividend or
distribution on the Series B Preferred Stock as provided in
paragraph (B)(i) of this Section 2 immediately after it
declares a dividend or distribution on the Common Stock (other
than a dividend payable in shares of Common Stock); provided
that, in the event no dividend or distribution shall have been
declared on the Common Stock during the period between any
Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $1 per share on
the Series B Preferred Stock shall nevertheless be payable on
such subsequent Quarterly Dividend Payment Date.
	 	 	 	 	 
	
(iii)
	 	 	 	Dividends shall begin to accrue and be
cumulative on outstanding shares of Series B Preferred Stock
from the Quarterly Dividend Payment Date next preceding the
date of issue of such shares, unless the date of issue of such
shares is prior to the record date for the first Quarterly
Dividend Payment Date, in which case dividends on such shares
shall begin to accrue from the date of issue of such shares,
or unless the date of issue is a Quarterly Dividend Payment
Date or is a date after the record date for the determination
of holders of shares of Series B Preferred Stock entitled to
receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment Date. Accrued but unpaid dividends
shall not bear interest. Dividends paid on the shares of
Series B Preferred Stock in an amount less than the total
amount of such dividends at the time accrued and payable on
such shares shall be allocated pro rata on a share-by-share
basis among all such shares at the time outstanding. The
Board of Directors may fix a record date for the determination
of holders of shares of Series B Preferred Stock entitled to
receive payment of a dividend or distribution declared
thereon, which record date shall be not more than 60 days
prior to the date fixed for the payment thereof.

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          C.     Voting Rights. The holders of shares of Series B Preferred Stock shall
have the following voting rights:

	 	 	 	 	 
	
(i)
	 	 	 	Subject to the provision for adjustment
hereinafter set forth, each share of Series B Preferred Stock
shall entitle the holder thereof to 100 votes on all matters
submitted to a vote of the stockholders of the corporation.
In the event the corporation shall at any time declare or pay
any dividend on the Common Stock payable in shares of Common
Stock, or effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock (by reclassification
or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common
Stock, then in each such case the number of votes per share to
which holders of shares of Series B Preferred Stock were
entitled immediately prior to such event shall be adjusted by
multiplying such number by a fraction, the numerator of which
is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding
immediately prior to such event.
	 	 	 	 	 
	
(ii)
	 	 	 	Except as otherwise provided herein, in any
Certificate of Designations creating a series of Preferred
Stock or any similar stock, or by law, the holders of shares
of Series B Preferred Stock and the holders of shares of
Common Stock and any other capital stock of the corporation
having general voting rights shall vote together as one class
on all matters submitted to a vote of stockholders of the
corporation.
	 	 	 	 	 
	
(iii)
	 	 	 	Except as set forth herein, or as otherwise
provided by law, holders of Series B Preferred Stock shall
have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with
holders of Common Stock as set forth herein) for taking any
corporate action.

          D.     Certain Restrictions.

	 	 	 
	(i)	 	
Whenever quarterly dividends or other dividends
or distributions payable on the Series B Preferred Stock as
provided in this Section 2 are in arrears, thereafter and
until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series B Preferred Stock
outstanding shall have been paid in full, the corporation
shall not:

	 	 	 
	(a)	 	
declare or pay dividends, or make any
other distributions, on any shares of stock ranking
junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series B Preferred
Stock;

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(b)
	 	 	 	declare or pay dividends, or make any
other distributions, on any shares of stock ranking on a
parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series B Preferred
Stock, except dividends paid ratably on the Series B
Preferred Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which
the holders of all such shares are then entitled;
	 	 	 	 	 
	
(c)
	 	 	 	redeem or purchase or otherwise
acquire for consideration shares of any stock ranking
junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series B Preferred
Stock, provided that the corporation may at any time
redeem, purchase or otherwise acquire shares of any such
junior stock in exchange for shares of any stock of the
corporation ranking junior (either as to dividends or
upon dissolution, liquidation or winding up) to the
Series B Preferred Stock; or
	 	 	 	 	 
	
(d)
	 	 	 	redeem or purchase or otherwise
acquire for consideration any shares of Series B
Preferred Stock, or any shares of stock ranking on a
parity with the Series B Preferred Stock, except in
accordance with a purchase offer made in writing or by
publication (as determined by the Board of Directors) to
all holders of such shares upon such terms as the Board
of Directors, after consideration of the respective
annual dividend rates and other relative rights and
preferences of the respective series and classes, shall
determine in good faith will result in fair and
equitable treatment among the respective series or
classes.

	 	 	 
	(ii)	 	
The corporation shall not permit any subsidiary
of the corporation to purchase or otherwise acquire for
consideration any shares of stock of the corporation unless
the corporation could, under paragraph (D)(i) of this Section
2, purchase or otherwise acquire such shares at such time and
in such manner.

          E.     Reacquired Shares. Any shares of Series B Preferred Stock purchased or
otherwise acquired by the corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. All such shares shall
upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued as part of a new series of Preferred Stock subject to
the conditions and restrictions on issuance set forth herein, in the Amended
and Restated Certificate of Incorporation, or in any Certificate of
Designations creating a series of Preferred Stock or any similar stock or as
otherwise required by law.

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          F.     Liquidation, Dissolution or Winding Up. Upon any liquidation,
dissolution or winding up of the corporation, no distribution shall be made (i)
to the holders of shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series B Preferred Stock
unless, prior thereto, the holders of shares of Series B Preferred Stock shall
have received $100 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment, provided that the holders of shares of Series B Preferred Stock
shall be entitled to receive an aggregate amount per share, subject to the
provision for adjustment hereinafter set forth, equal to l00 times the
aggregate amount to be distributed per share to holders of shares of Common
Stock, or (ii) to the holders of shares of stock ranking on a parity (either as
to dividends or upon liquidation, dissolution or winding up) with the Series B Preferred Stock, except
distributions made ratably on the Series B Preferred Stock and all such parity
stock in proportion to the total amounts to which the holders of all such
shares are entitled upon such liquidation, dissolution or winding up. In the
event the corporation shall at any time declare or pay any dividend on the
Common Stock payable in shares of Common Stock, or effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by
reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series B Preferred
Stock were entitled immediately prior to such event under the proviso in clause
(i) of the preceding sentence shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to
such event.

          G.     Consolidation, Merger, etc. In case the corporation shall enter into
any consolidation, merger, combination or other transaction in which the shares
of Common Stock are exchanged for or changed into other stock or securities,
cash and/or any other property, then in any such case each share of Series B
Preferred Stock shall at the same time be similarly exchanged or changed into
an amount per share, subject to the provision for adjustment hereinafter set
forth, equal to l00 times the aggregate amount of stock, securities, cash
and/or any other property (payable in kind), as the case may be, into which or
for which each share of Common Stock is changed or exchanged. In the event the
corporation shall at any time declare or pay any dividend on the Common Stock
payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a
greater or lesser number of shares of Common Stock, then in each such case the
amount set forth in the preceding sentence with respect to the exchange or
change of shares of Series B Preferred Stock shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

          H.     No Redemption. The shares of Series B Preferred Stock shall not be
redeemable.

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          I.     Rank. The Series B Preferred Stock shall rank, with respect to the
payment of dividends and the distribution of assets, junior to all series of
any other class of the corporation’s Preferred Stock.

          J.     Amendment. If any shares of Series B Preferred Stock are outstanding,
the Amended and Restated Certificate of Incorporation of the corporation shall
not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series B Preferred Stock so as to affect
them adversely without the affirmative vote of the holders of at least
two-thirds of the outstanding shares of Series B Preferred Stock, voting
together as a single class.

ARTICLE V.

Bylaws

In furtherance and not in limitation of the powers conferred by law, the Board
is expressly authorized to make, repeal, alter, amend and rescind the Bylaws of
the corporation by a majority vote of the entire Board at any regular or
special meeting of the Board; provided however, that, notwithstanding anything
contained in this Amended and Restated Certificate of Incorporation or the
Bylaws of the corporation to the contrary, the affirmative vote of the holders
of at least 80% of the voting power of the then outstanding shares of Voting
Stock, voting together as a single class, shall be required to (1) alter, amend
or repeal any provision of the Bylaws which is substantially identical to or
implements the last sentence of Article IV, Section 1, or Articles VI, VII or
VIII, of this Amended and Restated Certificate of Incorporation or (2) alter,
amend or repeal any provision of this proviso to Article V.

ARTICLE VI.

Board of Directors

Section 1.     Number, Election and Terms. The business and affairs of the
corporation shall be managed under the direction of a Board of Directors which,
subject to any right of the holders of any series of Preferred Stock then
outstanding to elect additional directors under specified circumstances, shall
consist of not less than eight nor more than eleven persons. The exact number
of directors within the minimum and maximum limitations specified in the
preceding sentence shall be fixed from time to time by the Board pursuant to a
resolution adopted by a majority of the entire Board. The directors shall be
divided into three classes, designated Classes A, B and C, as nearly equal in
number as possible, with the term of office of each class to expire at the
third succeeding Annual Meeting of Stockholders after their election at an
Annual Meeting of Stockholders.

Section 2.     Newly Created Directorships and Vacancies. Subject to the rights of
the holders of any series of Preferred Stock then outstanding, newly created
directorships resulting from any increase in the authorized number of directors
or any vacancies in the Board resulting from death, resignation, retirement,
disqualification, removal from office or other cause shall be filled only by a
majority vote of the directors then in office, and directors so chosen shall
hold office for a term expiring at the Annual Meeting of Stockholders at which
the term of the class to which they have been elected expires. No decrease in
the number of directors constituting the Board shall shorten the term of any
incumbent director.

8

 

Section 3.     Removal. Subject to the rights of the holders of any series of
Preferred Stock then outstanding, any director, or the entire Board, may be
removed from office at any time, but only for cause and only by the affirmative
vote of the holders of at least 80% of the voting power of the then outstanding
shares of the Voting Stock, voting together as a single class.

Section 4.     Amendment, Repeal, etc. Notwithstanding anything contained in this
Amended and Restated Certificate of Incorporation to the contrary, the
affirmative vote of the holders of at
least 80% of the voting power of the then outstanding shares of Voting Stock,
voting together as a single class, shall be required to alter, amend or repeal
this Article VI.

ARTICLE VII.

Actions by Stockholders

Any action required or permitted to be taken by the stockholders of the
corporation must be effected at a duly called annual or special meeting of
stockholders of the corporation and may not be effected by any consent in
writing by such stockholders. Special meetings of stockholders of the
corporation may be called only by the Board pursuant to a resolution approved
by a majority of the entire Board. Notwithstanding anything contained in this
Amended and Restated Certificate of Incorporation to the contrary, the
affirmative vote of the holders of at least 80% of the voting power of the then
outstanding shares of Voting Stock, voting together as a single class, shall be
required to alter, amend or repeal this Article VII.

ARTICLE VIII.

Certain Business Combinations

Section 1.     Vote Required for Certain Business Combinations.

                  A.     Higher Vote for Certain Business Combinations. Except as otherwise
expressly provided in Section 2 of this Article VIII,

	 	 	 	 	 
	 	 	(i)
	 	any merger or consolidation of the corporation or
any Subsidiary (as hereinafter defined) with (a) any
Interested Stockholder (as hereinafter defined) or (b) any
other corporation (whether or not itself an Interested
Stockholder) which is, or after such merger or consolidation
would be, an Affiliate (as hereinafter defined) of an
Interested Stockholder; or
	 	 	 	 	 
	 	 	(ii)
	 	any sale, lease, exchange, mortgage, pledge,
transfer or other disposition (in one transaction or a series
of transactions) to or with any Interested Stockholder or any
Affiliate of any Interested Stockholder of any assets of the
corporation or any Subsidiary having an aggregate Fair Market
Value (as hereinafter defined) of $1,000,000 or more; or

9

 

	 	 	 	 	 
	 	 	
(iii)
	 	the issuance or transfer by the corporation or
any Subsidiary (in one transaction or a series of
transactions) of any securities of the corporation or any
Subsidiary to any Interested Stockholder or any Affiliate of
any Interested Stockholder or any Affiliate of any Interested
Stockholder in exchange for cash, securities or other property
(or a combination thereof) having an aggregate Fair Market
Value of $1,000,000 or more; or
	 	 	 	 	 
	 	 	
(iv)
	 	the adoption of any plan or proposal for the
liquidation or dissolution of the corporation proposed by or
on behalf of an Interested Stockholder or any Affiliate of any
Interested Stockholder; or
	 	 	 	 	 
	 	 	
(v)
	 	any reclassification of securities (including
any reverse stock split), or recapitalization of the
corporation, or any merger or consolidation of the corporation
with any of its Subsidiaries or any other transaction (whether
or not with or into or otherwise involving an Interested
Stockholder) which has the effect, directly or indirectly, of
increasing the proportionate share of the outstanding shares
of any class of equity or convertible securities of the
corporation or any Subsidiary which is directly or indirectly
owned by any Interested Stockholder or any Affiliate of any
Interested Stockholder;

shall require the affirmative vote of the holders of at least 80% of the voting
power of the then outstanding shares of Voting Stock, voting together as a
single class and any necessary vote of the outstanding shares of Preferred
Stock. Such affirmative vote shall be required not withstanding the fact that
no vote may be required or that a lesser percentage may be specified, by law or
in any agreement with any national securities exchange or otherwise.

          B.     Definition of
“Business Combination.” The term “Business Combination”
as used in this Article VIII shall mean any transaction which is referred to in
any one or more of clauses (i) through (v) of paragraph A of this Section 1.

Section 2.     When Higher Vote is Not Required. The
provisions of Section 1 of
this Article VIII shall not be applicable to any particular Business
Combination, and such Business Combination shall require only such affirmative
vote as is required by law, this Amended and Restated Certificate of
Incorporation and any resolution or resolutions designating the rights, powers
and preferences of any outstanding series of Preferred Stock, if all of the
conditions specified in either of the following paragraphs (A) and (B) are met
(it being intended that in the case of a Business Combination not involving any
cash or consideration other than cash to be received by the holders of each
class or series of outstanding Voting Stock (other than Institutional Voting
Stock, as hereinafter defined), the provisions of such Section 1 shall not be
applicable only if the condition specified in the following paragraph (A) is
met):

          A.     Approval by
Continuing Directors. The Business Combination shall have
been approved by a majority of the Continuing Directors (as hereinafter
defined).

          B.     Price and
Procedure Requirements. All of the following conditions
shall have been met.

10

 

	 	 	 	 	 
	 	 	(i)	 	
The aggregate amount of the cash and the Fair
Market Value (as hereinafter defined) as of the date of the
consummation of the Business Combination of consideration
other than cash to be received per share by holders of Common
Stock in such Business Combination shall be at least equal to
the highest of the following:

	 	 	 	 	 
	 	 	
(a)
	 	(if applicable) the highest per share
price (including any brokerage commissions, transfer
taxes and soliciting dealers’ fees) paid by the
Interested Stockholder for any shares of Common Stock
acquired by it (1) within the two-year period
immediately prior to the first public announcement of
the proposal of the Business Combination (the
“Announcement Date”) or (2) in the transaction in which
it became an Interested Stockholder, whichever is
higher;
	 	 	 	 	 
	 	 	
(b)
	 	the Fair Market Value per share of
Common Stock on the Announcement Date or on the date on
which the Interested Stockholder became an Interested
Stockholder (such latter date is referred to in this
Article VIII as the “Determination Date”), whichever is
higher; and
	 	 	 	 	 
	 	 	
(c)
	 	(if applicable) the price per share
equal to the Fair Market Value per share of Common Stock
on the Announcement Date or the Determination Date,
whichever is higher, multiplied by the ratio of (1) the
highest per share price (including any brokerage
commissions, transfer taxes and soliciting dealers’
fees) paid by the Interested Stockholder for any shares
of Common Stock acquired by it within the two-year
period immediately prior to the Announcement Date to (2)
the Fair Market Value per share of Common Stock on the
first day in such two-year period upon which the
Interested Stockholder acquired any shares of Common
Stock.

	 	 	 	 	 
	 	 	(ii)	 	
The aggregate amount of the cash and the Fair
Market Value as of the date of the consummation of the
Business Combination of consideration other than cash to be
received per share by holders of shares of any other series of
outstanding Voting Stock (other than Institutional Voting
Stock, as hereinafter defined) shall be at least equal to the
highest of the following (it being intended that the
requirements of this paragraph (B)(ii) shall be required to be
met with respect to every series of outstanding Voting Stock
(other than Institutional Voting Stock), whether or not the
Interested Stockholder has previously acquired any shares of a
particular series of Voting Stock):

	 	 	 	 	 
	 	 	
(a)
	 	(if applicable) the highest per share
price (including any brokerage commissions, transfer
taxes and soliciting dealers’ fees) paid by the
Interested Stockholder for any shares of such series of
Voting Stock acquired by it (1) within the two-year
period immediately
prior to the Announcement Date or (2) in the
transaction in which it became an Interested
Stockholder, whichever is higher;

11

 

	 	 	 	 	 
	 	 	
(b)
	 	(if applicable) the highest
preferential amount per share to which the holders of
shares of such series of Voting Stock are entitled in
the event of any voluntary or involuntary liquidation,
dissolution or winding up of the corporation;
	 	 	 	 	 
	 	 	
(c)
	 	the Fair Market Value per share of
such series of Voting Stock on the Announcement Date or
on the Determination Date, whichever is higher; and
	 	 	 	 	 
	 	 	
(d)
	 	(if applicable) the price per share
equal to the Fair Market Value per share of such series
of Voting Stock on the Announcement Date or the
Determination Date, whichever is higher, multiplied by
the ratio of (1) the highest per share price (including
any brokerage commissions, transfer taxes and soliciting
dealers’ fees) paid by the Interested Stockholder for
any shares of such series of Voting Stock acquired by it
within the two-year period immediately prior to the
Announcement Date to (2) the Fair Market Value per share
of such series of Voting Stock on the first day in such
two-year period upon which the Interested Stockholder
acquired any shares of such series of Voting Stock.

	 	 	 	 	 
	 	 	(iii)	 	
The consideration to be received by holders of a
particular class (in the case of Common Stock) or series (in
the case of Preferred Stock) of the outstanding Voting Stock
shall be in cash or in the same form as the Interested
Stockholder has previously paid for shares of any class or
series of Voting Stock. If the Interested Stockholder has
paid for shares of any class or series of Voting Stock with
varying forms of consideration, the form of consideration for
such class or series of Voting Stock shall be either cash or
the form used to acquire the largest number of shares of such
class or series of Voting Stock previously acquired by it.
	 	 	 	 	 
	 	 	(iv)	 	
After such Interested Stockholder has become an
Interested Stockholder and prior to the consummation of such
Business Combination: (a) except as approved by a majority of
the Continuing Directors, there shall have been no failure to
declare and pay at the regular date therefor any full
quarterly dividends (whether or not cumulative) on the
outstanding Preferred Stock; (b) there shall have been (1) no
reduction in the annual rate of dividends paid on the Common
Stock (except as necessary to reflect any subdivision of the
Common Stock), except as approved by a majority of the
Continuing Directors, and (2) an increase in such annual rate
of dividends as necessary to reflect any reclassification
(including any reverse stock split), recapitalization,
reorganization or any similar transaction which has the effect
of reducing the number of outstanding shares of Common Stock,
unless the failure so to increase such annual rate

12

 

	 	 	 	 	 
	 	 	 	 	
is approved by a majority of the Continuing Directors; and
(c) such Interested Stockholder shall have not become the
beneficial owner of any additional shares of Voting Stock
except as part of the transaction which results in such
Interested Stockholder becoming an Interested Stockholder.
	 	 	 	 	 
	 	 	(v)	 	
After such Interested Stockholder has become an
Interested Stockholder, such Interested Stockholder shall not
have received the benefit, directly or indirectly (except
proportionately as a stockholder), of any loans, advances,
guarantees, pledges or other financial assistance or any tax
credits or other tax advantages provided by the corporation,
whether in anticipation of or in connection with such Business
Combination or otherwise.
	 	 	 	 	 
	 	 	(vi)	 	
A proxy or information statement describing the
proposed Business Combination and complying with the
requirements of the Securities and Exchange Act of 1934 and
the rules and regulations thereunder (or any subsequent
provisions replacing such Act, rules or regulations) shall be
mailed to public stockholders of the corporation at least 30
days prior to the consummation of such Business Combination
(whether or not such proxy or information statement is
required to be mailed pursuant to such Act or subsequent
provisions).

Section 3.     Certain Definitions. For the purposes of this
Article VIII:

          A.     A
“person” shall mean any individual, firm, corporation or other
entity.

          B.     “Interested Stockholder” shall mean any person (other than the
corporation or any Subsidiary) who or which:

	 	(i)	 	is the beneficial owner, directly or indirectly,
of more than 10% of the voting power of the outstanding Voting
Stock; or
	 	 	 	 
	 	(ii)	 	is an Affiliate of the corporation and at any
time within the two-year period immediately prior to the date
in question was the beneficial owner, directly or indirectly,
of 10% or more of the voting power of the then outstanding
Voting Stock; or
	 	 	 	 
	 	(iii)	 	is an assignee of or has otherwise succeeded to
any shares of Voting Stock which were at any time within the
two-year period immediately prior to the date in question
beneficially owned by an Interested Stockholder, if such
assignment or succession shall have occurred in the course of
a transaction or series of transactions not involving a public
offering within the meaning of the Securities Act of 1933.

          C.     A person shall
be a “beneficial owner” of any Voting Stock:

	 	 	 	 	 
	 	 	
(i)
	 	which such person or any of its Affiliates or
Associates (as hereinafter defined) beneficially owns,
directly or indirectly; or

13

 

	 	 	 	 	 
	 	 	
(ii)
	 	which such person or any of its Affiliates or
Associates has (a) the right to acquire (whether such right is
exercisable immediately or only after the passage of time),
pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights,
warrants or options, or otherwise, or (b) the right to vote
pursuant to any agreement, arrangement or understanding; or
	 	 	 	 	 
	 	 	
(iii)
	 	which are beneficially owned, directly or
indirectly, by any other person with which such person or any
of its Affiliates or Associates has any agreement, or
arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of any shares of Voting Stock.

          D.     For the purpose
of determining whether a person is an Interested
Stockholder pursuant to paragraph (B) of this Section 3, the number of shares
of Voting Stock deemed to be outstanding shall include shares deemed owned
through application of paragraph (C) of this Section 3 but shall not include
any other shares of Voting Stock which may be issuable pursuant to any
agreement, arrangement or understanding, or upon exercise of conversion rights,
warrants or options, or otherwise.

          E.     “Affiliate” or “Associate” shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the General Rules and Regulations under the
Securities Exchange Act of 1934, as in effect on October 3, 1983.

          F.     “Subsidiary” means any corporation of which a majority of any class of
equity security is owned, directly or indirectly, by the corporation; provided,
however, that for the purposes of the definition of Interested Stockholder set
forth in paragraph (B) of this Section 3, the term “Subsidiary” shall mean only
a corporation of which a majority of each class of equity security is owned,
directly or indirectly, by the corporation.

          G.     “Continuing Director” means any member of the Board who is unaffiliated
with the Interested Stockholder and was a member of the Board prior to the time
that the Interested Stockholder became an Interested Stockholder, and any
successor of a Continuing Director who is unaffiliated with the Interested
Stockholder and is recommended to succeed a Continuing Director by a majority
of Continuing Directors then on the Board.

          H.     “Fair
Market Value” means: (i) in the case of stock, the highest
closing sale price during the 30-day period immediately preceding the date in
question of a share of such stock on the Composite Tape for New York Stock
Exchange—Listed Stocks, or, if such stock is not quoted on the Composite Tape,
on the New York Stock Exchange, on the principal United States securities
exchange registered under the Securities Exchange Act of 1934 on which such
stock is listed, or, if such stock is not listed on any such exchange, the
highest closing bid quotation with respect to a share of such stock during the
30-day period preceding the date in question on the National Association of
Securities Dealers, Inc. Automated Quotations System or any system then in use,
or if no such quotations are available, the fair market value on the date in
question of a share of such stock as determined by the Board in good faith; and
(ii) in the case of property other than cash or stock, the fair market value of
such property on the date in question as determined by the Board in good faith.

14

 

          I.     “Institutional Voting Stock” shall mean any series of Voting Stock
which was issued to and continues to be held solely by one or more insurance
companies, pension funds, commercial banks, savings banks or similar financial
institutions or institutional investors.

          J.     In the event of
any Business Combination in which the corporation
survives, the phrase “consideration other than cash to be received” as used in
Section 2 of this Article VIII shall include the shares of Common Stock or the
shares of any series of outstanding Voting Stock retained by the holders of
such shares.

Section 4.     Powers of the Board of Directors. A majority of
the directors of
the corporation shall have the power and duty to determine for the purposes of
this Article VIII, on the basis of information known to them after reasonable
inquiry, (A) whether a person is an Interested Stockholder, (B) the number of
shares of Voting Stock beneficially owned by any person, (C) whether a person
is an Affiliate or Associate of another, (D) whether a series of Voting Stock
is Institutional Voting Stock and (E) whether the assets which are the subject
of any Business Combination have, or the consideration to be received for the
issuance or transfer of securities by the corporation or any Subsidiary in any
Business Combination has, an aggregate Fair Market Value of $1,000,000 or more.

Section 5.     No Effect on Fiduciary Obligations of Interested
Stockholders.
Nothing contained in this Article VIII shall be construed to relieve any
Interested Stockholder from any fiduciary obligation imposed by law.

Section 6.     Amendment, Repeal, etc. Notwithstanding
anything contained in this
Amended and Restated Certificate of Incorporation to the contrary, the
affirmative vote of the holders of at least 80% of the voting power of the then
outstanding shares of the Voting Stock, voting together as a single class,
shall be required to alter, amend or repeal this Article VIII.

ARTICLE IX.

Amendment of Amended and Restated Certificate of Incorporation

The corporation reserves the right to amend, alter, change or repeal any
provision contained in this Amended and Restated Certificate of Incorporation,
in the manner now or hereafter prescribed by statute, and all rights conferred
on Stockholders herein are granted subject to this reservation.
Notwithstanding the foregoing, the provisions set forth in the last sentence of
Article IV, Section 1, and in Articles VI, VII and VIII, may not be altered,
amended or repealed in any respect unless such alteration, amendment or repeal
is approved as specified in each thereof.

ARTICLE X.

Indemnity

Section 1.     Elimination of Certain Liability of Directors.

A director of the corporation shall not be personally liable to the corporation
or its stockholders for monetary damages for breach of fiduciary duty as a
director, except for liability (A) for any

15

 

breach of the director’s duty of loyalty to the corporation or its
stockholders, (B) for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law, (C) under Section 174 of
the Delaware General Corporation Law, or (D) for any transaction from which the
director derived an improper personal benefit.

Section 2.     Indemnification and Insurance.

          A.     Right to
Indemnification. Each person who was or is made a party or is
threatened to be made a party to or is involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a “proceeding”), by reason for the fact that he or she, or a
person of whom he or she is the legal representative, is or was a director or
officer, of the corporation or 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 employee benefit plans, whether the basis of such proceeding
alleged action in an official capacity as a director, officer, employee or
agent or in any other capacity while serving as a director, officer, employee
or agent, 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 said law permitted the corporation to
provide prior to such amendment), against all expense, liability and loss
(including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered
by such person in connection therewith and such indemnification shall continue
as to a person who has ceased to be a director, officer, employee or agent and
shall inure to the benefit of his or her heirs, executors and administrators;
provided, however, that, except as provided in paragraph (B) hereof, the
corporation shall indemnify any such person seeking indemnification in
connection with a proceeding (or part thereof) initiated by such person 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 2
shall be a contract right, which may, by action of the Board of Directors of
the corporation and at its option, be expressed in a separate written
instrument, 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; provided, however, that, if the Delaware General Corporation Law
requires, the payment of such expenses incurred by a director or officer 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 person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding, shall be made only upon delivery to
the corporation of an undertaking, by or on behalf of such director or officer,
to repay all amounts so advanced if it shall ultimately be determined that such
director or officer is not entitled to be indemnified under this Section 2 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.

16

 

          B.     Right of
Claimant to Bring Suit. If a claim under paragraph (A) of
this Section 2 is not paid in full by the corporation within thirty days after
a written claim has been received by the corporation, the claimant may at any
time thereafter bring suit against the corporation to recover the unpaid amount
of the claim and, if successful in whole or in part, the claimant shall
be entitled to be paid also the expense of prosecuting such claim. It
shall be a defense to any such action (other than an action brought to enforce
a claim for expenses incurred in defending any proceeding in advance of its
final disposition whether the required undertaking, if any is required, 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 proving 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.

          C.     Non-Exclusivity of Rights. The right to indemnification and the
payment of expenses incurred in defending a proceeding in advance of its final
disposition conferred in this Section 2 shall not be exclusive of any other
right which any persons may have or hereafter acquire under any statute,
provision of the Amended and Restated Certificate of Incorporation, bylaw,
agreement, vote of stockholders or disinterested directors or otherwise.

          D.     Insurance. The corporation may maintain insurance, at its expense, to
protect itself and any director, officer, employee or agent of the corporation
or another corporation, partnership, joint venture, trust or other enterprise
against any such expense, liability or loss, whether or not the corporation
would have the power to indemnify such person against such expense, liability
or loss under the Delaware General Corporation Law.

          IN WITNESS WHEREOF, the
corporation has caused this Amended and Restated
Certificate of Incorporation to be executed this 20th day of March, 2003, in
its name and on its behalf by its Vice President and Secretary pursuant to
Section 103 of the General Corporation Law of the State of Delaware.

	 	 
	 	/s/ J. Lawrence McIntyre

J. Lawrence McIntyre

Vice President and Secretary

17exv4wxcy

 

BYLAWS

OF

THE TORO COMPANY

(A Delaware Corporation)

ARTICLE I

Offices, Corporate Seal, and Records

Section 1.1 The registered office of the Corporation shall be established and
maintained in the City of Dover, in the County of Kent, in the State of
Delaware, and the Corporation may have other offices, either within or without
the State of Delaware, at such place or places as the Board of Directors may
from time to time determine. Unless otherwise determined by the Board of
Directors, the principal executive office of the Corporation shall be at 8111
Lyndale Avenue South, in the City of Bloomington, County of Hennepin, State of
Minnesota.

Section 1.2 The Corporation may have a corporate seal in such form as
determined by the Board of Directors, which may be altered at its pleasure, and
the seal may be used by causing it or a facsimile thereof to be impressed or
affixed or in any other manner reproduced.

Section 1.3 The Corporation shall at all times keep at its principal executive
office, or at such other place or places as the Board of Directors may
determine, a share register giving the names and addresses of the stockholders,
the number and classes of shares held by each, and the dates on which the
certificates therefor were issued, or, in the case of uncertificated shares,
the date the electronic entry evidencing the ownership of the shares was made
in the Company’s records.

Section 1.4 The Corporation shall at all times keep at its principal executive
office the following records:

	 	(a)	 	The original or copies of records of all proceedings of
stockholders and directors, of its Bylaws and all amendments
thereto, and of reports made to stockholders or any of them within
the next preceding three years;
	 
	 	(b)	 	A statement of names and usual business addresses of its
directors and principal officers;
	 
	 	(c)	 	Appropriate financial statements.

 

 

Section 1.5 Subject to law and any order of the Court of Chancery, any
stockholder of record shall have the right to inspect and make copies or
extracts therefrom, upon proper written demand under oath stating the purpose
thereof, in person or by attorney or other agent, at any reasonable time or
times, for any proper purpose, and at the principal executive offices of the
corporation, the stock ledger, a list of stockholders, and other books and
records, required financial statements, and the records of the proceedings of
the stockholders and directors.

ARTICLE II

Meeting of Stockholders

Section 2.1 All meetings of the stockholders shall be held at such place
within or without the State of Delaware as may be designated by the Board of
Directors in the notice of the meeting.

Section 2.2 The Regular Meetings of the stockholders, if any, shall be held on
the day or date and at the time and place as the Board of Directors may fix
from time to time in its discretion, for the election of directors and the
transaction of such other business as may come before the meeting; provided,
however, that any previously scheduled regular meeting of the stockholders may
be postponed by resolution of the Board of Directors upon public notice given
prior to the date previously scheduled for such regular meeting of the
stockholders; and provided, further, that no business with respect to which
special notice is required by law shall be transacted at a regular meeting
unless such notice shall have been given.

Section 2.3 Special meetings of the stockholders for any purpose or purposes
may be called only by the Board of Directors, pursuant to a resolution approved
by a majority of the entire Board of Directors; provided, however, that any
previously scheduled special meeting of the stockholders may be postponed by
resolution of the Board of Directors upon public notice given prior to the date
previously scheduled for such special meeting of the stockholders. Business
transacted at a special meeting shall be confined to the purposes stated in the
call and notice thereof.

Section 2.4 Notice of each regular and special meeting of stockholders stating
the date, time and place thereof, and the general nature of the business to be
considered thereat, shall be given at least ten (10) days and not more than
sixty (60) days before the date of the meeting to each stockholder entitled to
vote thereat. Such notice shall be deemed delivered when deposited in the
United States mail with postage thereon prepaid, addressed to the stockholder
at his address as it appears on the stock transfer books of the Corporation.

2

 

Section 2.5 Each stockholder who is entitled to vote pursuant to the terms of
the Certificate of Incorporation and these Bylaws, or who is entitled to vote
pursuant to the laws of the State of Delaware, shall be entitled to vote in
person or by proxy, but no proxy shall be voted after three years from its date
unless such proxy provides for a longer period. All elections for directors
shall be determined by a plurality of the votes of the shares present in person
or represented by proxy at the meeting and entitled to vote on the election of
directors. All other questions shall be decided by the affirmative vote of a
majority of the shares present in person or represented by proxy at the meeting
and entitled to vote on such question.

A complete list of the stockholders entitled to vote at any meeting of
stockholders at which directors are to be elected, arranged in alphabetical
order, with the address of each, and the number of shares held by each, 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 ten 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.

The Board of Directors by resolution shall appoint one or more inspectors,
which inspector or inspectors may include individuals who serve the Corporation
in other capacities, including without limitation as officers, employees,
agents of representatives of the Corporation, to act at the meeting and make a
written report thereof. One or more persons may be designated as alternate
inspectors to replace any inspector who fails to act. If no inspector or
alternate inspector has been appointed to act or is able to act at a meeting of
stockholders, the Chair of the meeting shall appoint one or more inspectors to
act at the meeting. Each inspector, before discharging his or her duties,
shall take and sign an oath faithfully to execute the duties of inspector with
strict impartiality and according to the best of his or her ability. The
inspectors shall have the duties prescribed by law.

The Chair of the meeting shall fix and announce at the meeting the date and
time of the opening and the closing of the polls for each matter upon which the
stockholders will vote at the meeting.

3

 

Section 2.6 Except as otherwise required by law, by the Certificate of
Incorporation or by these Bylaws, the presence, in person or by proxy, of
stockholders holding a majority of the voting power of the outstanding stock of
the Corporation shall constitute a quorum at all meetings of the stockholders.
The Chair of any regular or special meeting of the stockholders or a majority
in interest of the stockholders
entitled to vote thereat shall have the power to adjourn such meeting from time
to time, without notice other than announcement at the meeting, whether or not
there is such a quorum. No notice of the time and place of adjourned meetings
need be given except as required by law; provided, however, that if such
adjournment is for more than thirty (30) days, or if after such 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 such
adjourned meeting. At any such adjourned meeting at which the requisite amount
of stock entitled to vote shall be represented, any business may be transacted
which might have been transacted at the meeting as originally noticed; but only
those stockholders entitled to vote at the meeting as originally noticed shall
be entitled to vote at any adjournment or adjournments thereof unless the Board
of Directors shall have fixed a new record date for such adjournment or
adjournments pursuant to Section 2.7 of these Bylaws.

The stockholders present at a duly organized meeting may continue to transact
business until adjournment, notwithstanding the withdrawal of enough
stockholders to leave less than a quorum.

Section 2.7 In order that the Corporation may determine the stockholders
entitled to notice of or to vote at any meeting of stockholders or any
adjournment thereof, or entitled to receive payment of any dividend or other
distribution or allotment of any rights, or entitled to exercise any rights in
respect to any change, conversion or exchange of stock or for the purpose of
any other lawful action, the Board of Directors may fix, in advance, a record
date, which shall not be less than ten nor more than sixty days before the date
of such meeting, nor more than sixty days prior to any other action. A
determination of stockholders of record entitled to notice of or to vote at a
meeting of stockholders shall apply to any adjournment or adjournments of the
meeting; provided, however, that the Board of Directors may fix a new record
date for the adjourned meeting.

4

 

Section 2.8 (A) (1) Nominations of persons for election to the Board of
Directors of the Corporation and the proposal of business to be considered by
the stockholders may be made at a regular meeting of stockholders (a) pursuant
to the Corporation’s notice of meeting, (b) by or at the direction of the
Board of Directors or (c) by any stockholder of the Corporation who was a
stockholder of record at the time of giving of notice provided for in this
Bylaw, who is entitled to vote at the meeting and who complied with the notice
procedures set forth in this Bylaw.

(2)  For nominations or other business to be properly brought before a regular
meeting by a stockholder pursuant to clause (c) of paragraph (A) (1) of this
Bylaw, the stockholder must have given timely notice thereof in writing to the
Secretary of the Corporation. To be timely, a stockholder’s notice shall be
delivered to the
Secretary at the principal executive offices of the Corporation not less than
forty-five (45) days nor more than ninety (90) days prior to the first
anniversary of the date on which the Corporation first mailed its proxy
materials for the preceding year’s regular meeting; provided, however, that in
the event that the date of the regular meeting is advanced by more than thirty
(30) days or delayed by more than sixty (60) days from the anniversary date of
the preceding year’s regular meeting, notice by the stockholder to be timely
must be so delivered not earlier than the 90th day prior to such rescheduled
regular meeting and not later than the close of business on the later of the
60th day prior to such rescheduled regular meeting or the 10th day following
the day on which public announcement of the date of such meeting is first made.
Such stockholder’s notice shall set forth (a) as to each person whom the
stockholder proposes to nominate for election or reelection as a director 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 (the “Exchange Act”) (including such person’s written consent
to being named in the proxy statement as a nominee and to serving as a director
if elected); (b) as to any other business that the stockholder proposes to
bring before the meeting, a brief description of the business desired to be
brought before the meeting, the reasons for conducting such business at the
meeting and any material interest in such business of such stockholder and the
beneficial owner, if any, on whose behalf the proposal is made; and (c) as to
the stockholder giving the notice and the beneficial owner, if any, on whose
behalf the nomination or proposal is made (i) the name and address of such
stockholder, as they appear on the Corporation’s books, and of such beneficial
owner and (ii) the class and number of shares of the Corporation that are owned
beneficially and of record by such stockholder and such beneficial owner.

5

 

(3)  Notwithstanding anything in paragraph (A) (2) of this Bylaw, in the event
that the number of directors to be elected to the Board of Directors of the
Corporation is increased and there is no public announcement naming all of the
nominees for Director or specifying the size of the increased Board of
Directors made by the Corporation at least seventy (70) days prior to the first
anniversary of the preceding year’s regular meeting, a stockholder’s notice
required by this Bylaw shall also be considered timely, but only with respect
to nominees for any new positions created by such increase, if it shall be
delivered to the Secretary at the principal executive offices of the
Corporation not later than the close of business on the 10th day following the
day on which such public announcement is first made by the Corporation.

(B)  Nominations of persons for election to the Board of Directors may be made
at a special meeting of stockholders at which directors are to be elected
pursuant to the Corporation’s notice of meeting (a) by or at the direction of
the Board of Directors
or (b) provided that the Board of Directors has determined that directors shall
be elected at such meeting, by any stockholder of the Corporation who is a
stockholder of record at the time of giving of notice provided for in this
Bylaw, who shall be entitled to vote at the meeting and who complies with the
notice procedures set forth in this Bylaw. In the event the Corporation calls
a special meeting of stockholders for the purpose of electing one or more
directors to the Board of Directors, any such stockholder may nominate a person
or persons (as the case may be) for election to such position(s) as specified
in the Corporation’s notice of meeting, if the stockholder’s notice required by
paragraph (A) (2) at the principal executive offices of the Corporation not
earlier than the 90th day prior to such special meeting and not later than the
close of business on the later of the 60th day prior to such special meeting or
the 10th day following the day on which public announcement is first made of
the date of the special meeting and of the nominees proposed by; the Board of
Directors to be elected at such meeting.

(C)  (1) Only such persons who are nominated in accordance with the procedures
set forth in this Bylaw shall be eligible to serve as directors and only such
business shall be conducted at a regular meeting of stockholders as shall have
been brought before the meeting in accordance with the procedures set forth in
this Bylaw and, if any proposed nomination or business is not in compliance
with this Bylaw, to declare that such defective proposal shall be disregarded.
The Chair of the meeting shall have the power and duty to determine whether a
nomination or any business proposed to be brought before the meeting was made
in accordance with the procedures set forth in this Bylaw and, if any proposed
nomination or business is not in compliance with this Bylaw, to declare that
such defective proposal shall be disregarded.

6

 

(2)  Notwithstanding the foregoing provisions of this Bylaw, a stockholder
shall also comply with all applicable requirements of the Exchange Act and the
rules and regulations thereunder with respect to the matters set forth in this
Bylaw. Nothing in this Bylaw shall be deemed to affect any rights of
stockholders to request inclusion of proposals in the Corporation’s proxy
statement pursuant to Rule 14a-8 under the Exchange Act.

(3)  For purposes of this Bylaw, “public announcement” shall mean disclosure
in a press release reported by the Dow Jones News Service, Associated
Press or comparable national news service or in a document publicly filed
by the Corporation with the Securities and Exchange Commission pursuant to
Sections 13, 14 or 15(d) of the Exchange Act.

7

 

ARTICLE III

Directors

Section 3.1 The business and affairs of the Corporation shall be managed under
the direction of a Board of Directors which, subject to any right of the
holders of any series of Preferred Stock then outstanding to elect additional
directors under specified circumstances, shall consist of not less than eight
(8) nor more than eleven (11) persons. The exact number of directors within
the minimum and maximum limitations specified in the preceding sentence shall
be fixed from time to time by the Board pursuant to a resolution adopted by a
majority of its members. The directors shall be divided into three classes, as
nearly equal in number as possible, with the term of office of Class A to
expire at the 1984 Annual Meeting of Stockholders, the term of office of Class
B to expire at the 1985 Annual Meeting of Stockholders and the term of office
of Class C to expire at the 1986 Annual Meeting of Stockholders. At each
Annual Meeting of Stockholders following such initial classification and
election, directors elected to succeed those directors whose terms expire shall
be elected for a term of office to expire at the third succeeding Annual
Meeting of Stockholders after their election.

Section 3.2 Subject to the rights of the holders of any series of Preferred
Stock then outstanding, newly created directorships resulting from any increase
in the authorized number of directors or any vacancies in the Board resulting
from death, resignation, retirement, disqualification, removal from office or
other cause shall be filled only by majority vote of the directors then in
office, and directors so chosen shall hold office for a term expiring at the
Annual Meeting of Stockholders at which the term of the Class to which they
have been elected expires. No decrease in the number of directors constituting
the Board shall shorten the term of any incumbent director. Subject to the
rights of the holders of any series of Preferred Stock then outstanding, any
director, or the entire Board, may be removed from office at any time, but only
for cause and only by the affirmative vote of the holders of at least 80% of
the voting power of the then outstanding Common Stock of the Company.

Section 3.3 Regular meetings of the Board shall be held at bi-monthly
intervals during each fiscal year, or on such alternate intervals or dates as
the Board may fix from time to time in its discretion, and at such time and
place as the Chairman of the Board of Directors or, in his absence, the
President shall determine, preferably at the principal executive office of the
Corporation during the third week of the month. At least three (3) days’
notice thereof shall be given by the Secretary to each director, either
personally or by telephone, mail, electronic mail or facsimile transmission.

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Section 3.4 Special meetings of the Board may be called by the Chief Executive
Officer or by any two directors, and not less than twenty-four (24) hours’
notice
thereof shall be given by the Secretary to any director, either personally or
by telephone, mail, telegram or facsimile transmission.

Section 3.5 Any action taken by the Board or any committee thereof at any
meeting where all members are present shall be valid whether or not notice of
such meeting was in fact given, except as provided by law. Any action which
might be taken at a meeting of the Board, or at a meeting of any committee
thereof as the case may be, may be taken without meeting as provided by law.

Section 3.6 At all meetings of the Board a majority of the directors shall be
necessary and sufficient to constitute a quorum for the transaction of
business, but if less than a quorum are present, those present may adjourn the
meeting from time to time until a quorum shall be present.

Section 3.7 The Board may unanimously elect from among the directors an
Executive Committee, a Compensation and Human Resources Committee, an Audit
Committee, and a Nominating and Governance Committee, and such other committees
as the Board may from time to time determine, to serve at the pleasure of the
Board. The members of the Board of Directors and of said Committees shall have
the role of monitoring the conduct of the business and affairs of the
corporation on behalf of all of the constituencies of the Corporation,
including in particular, those who invest in the stock of the Corporation, in
an environment of loyal but independent oversight. Each Committee shall
maintain independent minutes of action, and with the exception of the Audit
Committee, and resolutions of the Compensation and Human Resources Committee
relating to matters governed by or within the scope of Section 16 of the
Securities and Exchange Act of 1934 or Section 162(m) of the Internal Revenue
Code of 1986, or its successor provision, such minutes shall be subject to
approval by the Board.

Section 3.8 The Executive Committee shall consist of a minimum of three
directors of the Corporation, including the Chairman of the Board of Directors,
and one of the members shall be designated by the Board of Directors as its
Chair. The Chair of the Executive Committee shall preside at all meetings of
the Executive Committee and shall perform such other duties as may be
prescribed by the Board of Directors. The underlying purpose of the Executive
Committee is to exercise all of the powers and authority of the Board during
intervals between meetings of the Board, including the power to declare
dividends on the Corporation’s common stock. The Committee shall have
discretionary authority to undertake additional activities within the scope of
its primary functions.

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Section 3.9 The Audit Committee shall consist of a minimum of three directors
of the Corporation, none of whom shall be officers or employees of the
Corporation, and one of the members shall be designated by the Board of
Directors as its Chair.
The Chair of the Audit Committee shall preside at all meetings of the Audit
Committee and shall perform such other duties as may be prescribed by the Board
of Directors. The purpose of the Audit Committee is to assist the Board of
Directors in fulfilling the Board’s responsibility to oversee the Corporation’s
financial reports and accounting and reporting practices and to perform its
duties and responsibilities as outlined in the Audit Committee Charter. The
manager of the Corporation’s internal auditing function, when operative, shall
have an indirect reporting relationship to the Audit Committee, and shall
perform such duties as may be prescribed by the Board of Directors or by the
Audit Committee. The Committee shall have discretionary authority to undertake
additional activities within the scope of its primary functions.

Section 3.10 The Compensation and Human Resources Committee shall consist of
a minimum of three directors of the Corporation, none of whom shall be officers
or employees of the Corporation, and one of the members shall be designated by
the Board of Directors as its Chair. The Chair of the Compensation and Human
Resources Committee shall preside at all meetings of the Compensation and Human
Resources Committee and shall perform such other duties as may be prescribed by
the Board of Directors. The purposes of the Compensation and Human Resources
Committee include: to administer all employee benefit plans heretofore or
hereafter established including the granting of stock options and incentive
awards authorized under employee benefit plans governed by or within the scope
of Section 16 of the Securities and Exchange Act of 1934 or Section 162(m) of
the Internal Revenue Code of 1986, or its successor provision; to study and
analyze specific and general matters of management compensation; to
periodically review management compensation policies and practices; to make
recommendations to the Board respecting incentive compensation awards; and to
consider and approve officer salary adjustments of elected officers of the
Corporation at the level of Vice President and above.

Section 3.11 The Nominating and Governance Committee shall consist of a
minimum of three directors of the Corporation who do not have any direct or
indirect material economic or personal association with the Corporation, or
with any of its affiliates or the employees thereof. One of the members of
the Committee shall be designated as its Chair by the Board of Directors. The
Chair of the Nominating and Governance Committee shall preside at all meetings
of the Nominating and Governance Committee and shall perform such other duties
as may be prescribed by the Board of Directors. The primary functions of the
Nominating and Governance Committee are to review with the Chief Executive
Officer of the Corporation an appropriate size and makeup for the Board of

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Directors, including individuals having such background and business experience
as are consistent with and compatible to the long-range interests and future
direction of the Corporation; to consider the qualifications of persons
identified as
prospective Directors to either fill vacancies on the Board or enlarge its
membership; to conduct research to identify and recommend nomination of
suitable candidates who are willing to serve as members of the Board of
Directors and who will make a substantial contribution to the Corporation based
upon a careful review of their experience, background, interests, ability and
availability to meet time commitments for board and committee responsibilities;
and to determine whether any prospective or seated member of the Board has any
economic or familial relationship with the Corporation which may negate his/her
suitability for such service and to name a lead director to oversee the
non-management executive sessions of the Board and to serve as an ongoing
liaison between the directors and the employees. The Committee shall also
monitor current members of the Board in light of the same guidelines used to
select candidates, shall direct the activities of the Board and management in
matters of corporate governance, and shall have general discretionary authority
to undertake additional activities within the scope of its primary functions.

Section 3.12 Meetings of each committee shall be held from time to time as
the Chair of such committee, the Chairman of the Board of Directors, or any two
members of such committee shall determine, preferably at the principal
executive office of the Corporation. All members of each committee shall be
given written notice of any meeting by the Secretary, such notice to be mailed
to each member at least three (3) days prior to the date thereof; provided,
however, such written notice shall not be required as to any member who shall
receive notice in person at least twenty-four (24) hours prior to the time of
the meeting. Any member may in writing, before or after any meeting, waive
notice thereof, and any member by his attendance at, and participation in, the
action taken at any meeting shall be deemed to have waived notice thereof. A
majority of the members of a committee shall constitute a quorum. Any action
which might be taken at a meeting of a committee may be taken without meeting
if evidenced by a resolution signed by all members. The Chair of each Board
committee shall preside at all meetings of such committee and shall perform
such other duties as may be prescribed by the Board of Directors or the
Chairman thereof.

Section 3.13 All action taken by the Board committees shall be reported to the
Board of Directors at its meeting next succeeding such action and shall be
subject to revision by the Board of Directors provided that no acts or rights
of third parties shall be prejudiced thereby. All such action shall also be
recorded in the minute books of the Corporation in the same manner in which
action taken by the Board of Directors is recorded. The affirmative vote of
the majority of all members of each committee shall be necessary to its
adoption of any resolution.

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ARTICLE IV

Officers

Section 4.1 The officers of this Corporation shall be elected by the Board
from time to time as it deems appropriate, and shall include a Chairman of the
Board of Directors, who shall serve as Chief Executive Officer, to be elected by
the Board of Directors from among its members, a president, and one or more
vice presidents one of whom shall perform the duties of the Chief Financial
Officer, a secretary, a treasurer, and such other officers, including one or
more group vice presidents or one or more executive vice presidents, and agents
as may from time to time be elected by the Board of Directors. Any two offices
except those of the President and Vice President may be held by the same
person. All officers shall hold office at the pleasure of the Board of
Directors and be subject to dismissal by it, with or without cause.

Section 4.2 The salary and other compensation of the Chairman of the Board,
the President and all elected Vice Presidents shall be fixed by the Board of
Directors. If any vacancy shall occur among the elected officers, it shall be
filled by the Board.

Section 4.3 The Chairman of the Board of Directors, or in his absence the
Chair of the Compensation and Human Resources Committee, shall preside at all
meetings of the Board of Directors. The Chairman of the Board has authority to
appoint certain officers of the Company, including vice presidents and certain
assistant officers whose responsibilities do not warrant election by the Board
of Directors, and shall also perform such other duties as may be prescribed by
the Board of Directors.

Section 4.4 The President shall be Chief Operating Officer of the Corporation
and, as such, shall carry out the plans for the Corporation as approved by the
Chairman of the Board and the Board of Directors. In the absence of the
Chairman of the Board of Directors, he shall preside at all meetings of the
stockholders and otherwise perform the Chief Executive Officer’s duties as
prescribed by the Board of Directors.

Section 4.5 Each Vice President shall perform such duties as may be prescribed
by the Board of Directors. The Vice President of Finance shall be the Chief
Financial Officer. In the absence or disability of the Chairman of the Board,
the President shall succeed to his powers and duties, and in the absence of the
President, the Chief Financial Officer shall first succeed to his powers and
duties, then the Executive or Group Vice Presidents in order of seniority and
in the event all are unable to serve for any reason, the Vice Presidents shall
succeed to their power and duties in the order in which elected.

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Section 4.6 The Secretary shall attend all meetings of the Board of Directors,
Executive Committee, and of the stockholders, and record all votes and keep
minutes of all proceedings. He shall give, or cause to be given, required
notices of meetings of the Board of Directors, Executive Committee and of the
stockholders. He shall keep in safe custody the seal of the Corporation and,
when authorized by the Board, affix the same to any instrument requiring it,
and shall perform such other duties as may be prescribed by the Board of
Directors.

Section 4.7 The Treasurer shall maintain necessary relationships with banks
and other financial institutions and provide for adequate lines of credit;
shall plan for and maintain adequate funds in appropriate working and
depository accounts to meeting outstanding and planned commitments; and shall
be responsible for safe custody and control of all funds and securities of the
Corporation. He shall establish policies and procedures in relation to, and
supervise management of, the extension of credit, and the collection of
receivables. He shall maintain appropriate bond and dividend records, provide
for proper signature or endorsement on all financial documents of the
Corporation, and shall perform such other duties as may be prescribed by the
President.

Section 4.8 The assistant to any officer shall, in the absence or disability
of that officer, perform his duties and shall perform such other duties as may
be prescribed by the Board of Directors.

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