Document:

Exhibit 10.1

 

THIS FIRST AMENDMENT TO TERM LOAN AGREEMENT
AND RELATED LOAN DOCUMENTS WITH CONSENT OF GUARANTORS IS SUBJECT TO ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT AND/OR
§15-48-10 OF THE SOUTH CAROLINA CODE OF LAWS (1976), AS AMENDED.

 

FIRST AMENDMENT TO TERM LOAN AGREEMENT AND
RELATED LOAN DOCUMENTS WITH CONSENT OF GUARANTORS 

 

THIS FIRST AMENDMENT TO TERM LOAN AGREEMENT
AND RELATED LOAN DOCUMENTS WITH CONSENT OF GUARANTORS (the “Amendment”) effective as of March 4, 2020, by and
among Vicon Industries, Inc., (the “Borrower”), NIL Funding Corporation (the “Lender”), IQinVision,
Inc., (“IQin”), TeleSite U.S.A., Inc., (“TeleSite”), Vicon Industries Limited (“Vicon
Industries”), and Vicon Systems Ltd., (“Vicon Systems” and collectively with IQin, TeleSite, and Vicon
Industries, the “Guarantors”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower and Lender executed that
certain Term Loan Agreement, dated as of September 21, 2018 (the “Loan Agreement”) pursuant to which Lender
agreed to loan to Borrower Five Million Six Hundred Thousand and No/100 Dollars ($5,600,000.00) in accordance with the terms set
forth therein (the “Loan”);

 

WHEREAS, the Borrower executed that certain
Promissory Note [Facility A], dated as of September 21, 2018, in the original principal amount of One Million Seven Hundred Ninety-Six
Thousand and No/100 Dollars ($1,796,000.00) in favor of Lender (the “Facility A Note”);

 

WHEREAS, the Borrower executed that certain
Promissory Note [Facility B], dated as of September 21, 2018, in the original principal amount of Three Million Eight Hundred Four
Thousand and No/100 Dollars ($3,804,000.00) in favor of Lender (the “Facility B Note”);

 

WHEREAS, the Guarantors each executed a Continuing
Guaranty, dated as of September 21, 2018 (collectively, the “Guaranty Agreements”), pursuant to which the Guarantors
jointly and severally guaranteed all obligations of the Borrower to the Lender;

 

WHEREAS, the Borrower, Lender, and Citibank,
N.A. executed those three (3) certain Deposit Account Control Agreements, dated as September 28, 2018 (collectively, the “DACAs”);

 

WHEREAS, the Guarantors each executed a Security
Agreement, dated as of September 21, 2018 (collectively, the “Security Agreements,” and collectively with the
Loan Agreement, Facility A Note, Facility B Note, Guaranty Agreements, the DACAs, and all other documents executed in connection
with the foregoing, the “Loan Documents”), pursuant to which the Guarantors each granted security interests
in the collateral more particularly described therein to Lender; and

 

WHEREAS, Borrower, Lender, and Guarantors now
desire to modify and amend certain terms of the Loan Documents as hereinafter provided.

 

NOW, THEREFORE, in consideration of the premises
and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

    	 

    	 

     

1. Capitalized terms used
herein but not defined shall have the meaning ascribed to them in the Loan Documents.

 

2. The Loan Documents are
hereby amended as follows:

 

	 	a.	The Maturity Date of the Facility A Note is extended to March 30, 2022, but all other terms of the Facility A Note, including monthly payment terms, shall remain the same.
	 	 	 
	 	b.	The Maturity Date of the Facility B Note is extended to March 30, 2022, but all other terms of the Facility B Note, including monthly payment terms, shall remain the same.
	 	 	 
	 	c.	Section 4.3(a) of the Loan Agreement is hereby amended and restated with the following:
	 	 	 
	 		(a) not later than
    thirty (30) days after the end of each month, a financial statement of Borrower, prepared by Borrower, to include balance
    sheet, income statement and statement of cash flows and sources together with a certificate, executed by the President or
    Chief Financial Officer of Borrower, that lists and describes in any detail that Lender may require in Lender’s sole
    and absolute discretion, any related party transactions that involve the Borrower or any of its parents or subsidiaries,
    including, without limitation, any transactions with Cemtrex, Inc. (“Cemtrex”) or any affiliate or
    subsidiary of Cemtrex, that occurred in the previous calendar month;
	 	 	 
	 	d.	The borrowing base certificate attached as Exhibit A to the Loan Agreement is hereby replaced with the borrowing base certificate attached as Exhibit A to this Amendment.
	 	 	 
	 	e.	Section 4.9 of the Loan Agreement is hereby amended and restated with the following:
	 	 	 
	 	 	SECTION 4.9. BORROWER INVENTORY AND LIQUIDITY COVENANT. Borrower shall cause, as of the end of each month hereafter, the sum of (i) the Qualified Inventory, valued at the lower of cost or market value, plus (ii) Unencumbered Liquid Assets, valued at the fair market thereof, to be not less than Four Million Eight Hundred Seventy Five Thousand and No/100 Dollars ($4,875,000.00). “Qualified Inventory” means finished goods inventory that are (1) subject to the first lien security interests in favor of Lender created by the Loan Documents, (2) held by Borrower for sale in the ordinary course of the Borrower’s business, (3) located at the Borrower’s facility at the address set forth herein or at other facilities the addresses of which have been provided to Lender, (4) free and clear of all liens and encumbrances in favor of any person other than the Lender, and (5) otherwise acceptable to the Lender in its sole discretion but excluding obsolete and damaged inventory, work in process, raw materials, inventory that fails to meet government standards, and inventory otherwise not saleable at market value. “Unencumbered Liquid Assets” shall mean the following assets owned by Borrower (excluding assets of any retirement plan established pursuant to the Internal Revenue Code, any employee pension plan or similar plan established pursuant to the provisions of Section 408 the Internal Revenue Code, or any other retirement plan or arrangement established pursuant to any other federal or state statute) which (i) are not the subject of any lien, mortgage, encumbrance, security interest, pledge, conditional sale, set-off right, title retention arrangement, or any other arrangement with any creditor (other than any set-off or similar rights afforded to the financial institution with whom such assets are maintained, so long as the Borrower has no funded indebtedness with such financial institution) to have its claim satisfied out of the asset (or proceeds thereof) prior to the general creditors of the Borrower, and (ii) may be converted to cash by sale or other means within five (5) business days:

 

    	2

    	 

     

	 	(a) Cash;
	 	 
	 	(b) Demand deposits or interest-bearing time deposits, certificates of deposit or similar banking arrangements held in the United States where either (i) such deposits or other arrangements are held with banks or other financial institutions which have capital and surplus of not less than $100,000,000 or (ii) such deposits are fully FDIC-insured;
	 	 
	 	(c) Direct obligations of the United States of America in the form of United States Treasury obligations or any governmental agency or instrumentality, whose obligations constitute full faith and credit obligations of the United States of America and which are regularly traded on a public market or exchange;
	 	 
	 	(d) Bonds and other fixed income instruments (including tax-exempt bonds) from companies or public entities rated investment grade by one of the major rating agencies, and mutual funds that invest substantially all of their assets in such bonds and other fixed income instruments, either owned directly by the Borrower or managed on the Borrower’s behalf by (i) any nationally recognized investment advisor or (ii) any investment advisor who or which has assets under management in excess of $250,000,000;
	 	 
	 	(e) Any common or preferred stock which is traded on a U.S. national stock exchange or included in the National Market tier of NASDAQ and which (x) is issued by a company with a market capitalization, as of the close of the most recent trading day, of at least $500,000,000, (y) has, as of the close of the most recent trading day, a per share price of at least $10, and (z) is not subject to any restriction or limitation by applicable laws or agreements governing the sale, transfer or other disposition thereof in the public market;
	 	 
	 	(f) Mutual funds or money market funds (but excluding “hedge funds”) that invest substantially all of their assets in instruments described above in (a), (b), (c), (d), and/or (e) above and which are quoted in either the Wall Street Journal or Barron’s; and
	 	 
	 	(g) Fifty Percent (50%) of Borrower’s eligible accounts receivable (as that term is defined in Section 1.1(b) of the Loan Agreement) that are less than sixty (60) days old.

 

	 	f.	On the date hereof, Borrower shall deliver to Lender all source code, object code, script, html files, and all supporting files and documents related to all versions of the current software, including all associated with peripherals, storage devices, endpoints, and similar remote, network devices related to the most recent version of Valerus Video Management Software (“Valerus”) and the most recent version of ViconNet Video Management Software (“ViconNet”), which the Lender shall hold in escrow. Further, in the event there are any publicly available updates of any kind related to any of the foregoing, such updates shall be promptly delivered to Lender on a semiannual basis, with a description thereof, and Lender shall hold such in escrow. In the event Borrower or any of its subsidiaries develops any other software, regardless of whether it is similar to Valerus or ViconNet, Borrower shall promptly deliver to Lender all of the foregoing items related to such software, as well as all modifications and updates thereto on an annual basis. Lender shall hold all of the foregoing in escrow, and Borrower shall grant Lender a security interest in the same, in form and substance satisfactory to Lender in Lender’s sole discretion. Any source code, object code, script, html files, and all supporting files and documents related to all versions of the current software delivered to Lender shall be kept in strict confidence.

 

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	 	g.	On or before March 3, 2021, Borrower shall pay to Lender an additional Five Hundred Thousand and No/100 Dollars ($500,000.00) principal payment (the “Additional Principal Payment”). Failure to make the Second Principal Payment by March 3, 2021, shall be an automatic Event of Default. Upon Lender’s receipt of the Additional Principal Payment, the first sentence of Section 4.9 of the Loan Agreement shall be automatically amended and restated with the following:
	 	 	 
	 	 	Borrower shall cause, as of the end of each month hereafter, the sum of (i) the Qualified Inventory, valued at the lower of cost or market value, plus (ii) Unencumbered Liquid Assets, valued at the fair market thereof, to be not less than Four Million Five Hundred Thousand and No/100 Dollars ($4,500,000.00).
	 	 	 
	 	h.	Section 5.11 of the Loan Agreement is hereby added and provides:
	 	 	 
	 	 	SECTION 5.11 RELATED PARTY TRANSACTIONS. Directly or indirectly, make any loan or advance to, purchase, assume or guarantee any note to or from any of its officers, directors, shareholders or affiliates, including, but not limited to Cemtrex, or to or from any member of the immediate family of any of its officers, directors, shareholders or affiliates, including, but not limited to, Cemtrex, or contract any operations to any officer, director, affiliate, including, but not limited to, Cemtrex, or shareholder, except in the ordinary course of business and pursuant to the reasonable requirements of the Borrower’s business and upon fair and reasonable terms which are fully disclosed to the Lender; or enter into, or be a party of, any transaction with any officer, director, affiliate, including, but not limited to Cemtrex, or shareholder of the Borrower, except in the ordinary course of business and pursuant to the reasonable requirements of the Borrower’s business and upon fair and reasonable terms which are fully disclosed to the Lender and are no less favorable to the Borrower than would obtain in a comparable arm’s length transaction with a person not an officer, director, affiliate or shareholder of the Borrower.

 

3. Each of the existing
Loan Documents is hereby further amended to provide that each reference to any one or more of the Loan Documents is deemed to refer
to such documents as modified by this Amendment. In addition, this Amendment shall be deemed to be included as a “Loan Document”
in any and all references to the “Loan Documents” contained in any of the Loan Documents existing as of the date hereof
or which are executed following the date hereof.

 

4. Except as specifically
amended herein, all terms and conditions of the Loan Documents shall remain in full force and effect, without waiver or modification.

 

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5. Lender agrees to waive
all Events of Default (as defined in the Loan Documents) directly related to the Borrowing Base Certificate that was delivered
by Borrower to Lender on February 19, 2020 (the “February 2020 Borrowing Base Default”). For clarification and
avoidance of doubt, Lender does not waive any other Event of Default that may exist on the date hereof or in the future. Borrower
and Guarantors each hereby remake all of their respective representations and warranties contained in the Loan Documents and reaffirm
all respective covenants set forth therein. Borrower and Guarantors each further certify that as of the date of this Amendment,
with the exception of the February 2020 Borrowing Base Default, there exists no Event of Default, nor any condition, act or event
which with the giving of notice or the passage of time or both would constitute any such Event of Default. As a further inducement
to the Lender to enter into this Amendment, Borrower and each Guarantor further represents, warrants, covenants and acknowledges
(as applicable) as follows (it being acknowledged by all parties that each such representation, warranty, covenant and acknowledgment
relates to material matters upon which Lender has relied):

 

	 	(a) There are no defenses, offsets or counterclaims or other claims, legal or equitable, available to Borrower, any Guarantor, or any other person or entity with respect to this Amendment, the Loan Documents, or any other instrument, document and/or agreement described herein or therein, as modified and amended hereby, or with respect to the obligation of Borrower to repay the Loan, as the case may be.
	 	 
	 	(b) The Borrower and Guarantors each has the right and power and has obtained all authorizations necessary to execute and deliver this Amendment and all documents required to be delivered in connection herewith and to perform its respective obligations hereunder and under the Loan Documents in accordance with their respective terms. This Amendment and all documents required to be delivered in connection herewith has been duly executed and delivered by duly authorized officers, managers, partners, trustee(s), or directors (as applicable) of the Borrower and Guarantors and is a legal, valid and binding obligation of the Borrower and/or Guarantors (as applicable), enforceable against each party thereto in accordance with their respective terms, except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations contained herein or therein may be limited by equitable principles generally.
	 	 
	 	(c) There is no action, suit, investigation or proceeding, pending or threatened, in any court or before any arbitrator or governmental authority, that has a reasonable probability of materially adversely affecting Borrower or Guarantors or any transaction contemplated hereby or by the Loan Documents, or the ability of Borrower or Guarantors to perform their respective obligations under this Amendment or the other Loan Documents as modified and amended hereby.
	 	 
	 	(d) Each of the Borrower and Guarantors is duly organized and validly existing in its state of organization. The undersigned persons are duly authorized to execute and deliver, on behalf of the Borrower and Guarantor, as applicable, this Amendment and all documents required to be delivered in connection herewith.
	 	 
	 	(e) The amendments to the Loan Documents set forth in this Amendment are not intended as and do not constitute novations of any of the obligations reflected in the Loan Documents.

 

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6. The effectiveness of
this Amendment is subject to receipt by the Lender of each of the following, each in form and substance satisfactory to the Lender:

 

	 	(a) a counterpart of this Amendment duly executed by the Borrower and Guarantors;
	 	 
	 	(b) payment by Borrower of Twenty Thousand and No/100 Dollars ($20,000.00) to reimburse Lender for fees incurred in connection with this Amendment;
	 	 
	 	(c) payment by Borrower of Five Hundred Thousand and No/100 Dollars ($500,000.00), which amount shall be credited towards the outstanding principal balance of the Loan;
	 	 
	 	(d) a current Certificate of Existence/Good Standing for the Borrower and Guarantors issued by the jurisdiction in which such entity is organized;
	 	 
	 	(e) original counterparts of resolutions from the Borrower and Guarantors authorizing the execution and delivery of this Amendment;
	 	 
	 	(f) an opinion of counsel to Borrower and Guarantors in form and content reasonably satisfactory to Lender and its counsel;
	 	 
	 	(g) the items described in Section 2f of the Amendment; and
	 	 
	 	(h) such other documents, instruments and agreements as the Lender may reasonably request.

 

7. The failure of the Borrower
or Guarantors to perform any of their respective obligations under this Amendment or the falsity of any representation or warranty
made herein shall, at the option of the Lender, constitute an Event of Default the Loan Documents.

 

8. THIS AMENDMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF SOUTH CAROLINA APPLICABLE TO CONTRACTS EXECUTED, AND
TO BE FULLY PERFORMED, IN SUCH STATE. In the event no party makes demand for arbitration pursuant to Section 7.11 of the Loan Agreement,
any legal suit, action or proceeding arising out of or relating to this Amendment, the Loan Agreement, any of the Loan Documents,
the transactions contemplated hereby or thereby shall be instituted in the Federal Courts of the United States of America or the
State Courts of the State of South Carolina and County of Charleston, and the Borrower and Guarantors irrevocably submit to the
exclusive jurisdiction of such courts in any such suit, action, or proceeding. The Borrower and Guarantors irrevocably waive and
agree not to plead or claim in any such court that any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum.

 

9. This Amendment shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. No party shall
transfer or assign any of their respective rights or obligations hereunder without the prior written consent of the Lender.

 

10. Except as expressly
herein amended, the terms and conditions of the Loan Documents remain in full force and effect. The amendments and modifications
contained herein shall be deemed to have prospective application only, unless otherwise specifically stated herein. If any provision
of any of this Amendment or of any Loan Document, as amended hereby, is determined to be illegal, invalid or unenforceable, such
provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid or unenforceable provisions. The Borrower and Guarantors will execute such additional documents
as are reasonably requested by the Lender to reflect the terms and conditions of this Amendment, and will cause to be delivered
such additional certificates, legal opinions and other documents as are reasonably required by the Lender.

 

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11. The Borrower hereby
agrees that all fees, expenses and costs incurred by the Lender (including, without limitation, fees, expenses and costs of Lender’s
counsel) in negotiating, preparing, reviewing and granting the amendment set forth herein shall, to the extent not paid or invoiced
as of the date hereof, be paid by it upon demand as fees, costs and expenses incurred in connection with the Loan Agreement.

 

12. This Amendment may
be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument. It shall not be necessary in making proof of this Amendment to produce or account
for more than one such counterpart for each of the parties hereto. Delivery by facsimile by any of the parties hereto of an executed
counterpart of this Amendment shall be as effective as an original executed counterpart hereof and shall be deemed a representation
that an original executed counterpart hereof will be delivered. Each counterpart hereof shall be deemed to be an original and shall
be binding upon all parties, their successors and assigns.

 

13. In consideration of
the modifications set forth in this Amendment, Borrower and Guarantors each releases and holds harmless the Lender and its officers,
employees, agents, affiliates, parent companies, and subsidiaries from and against any claim, action, suit, demand, cost expense
or liability of any kind relating to the transactions contemplated by the Loan Documents, the administration thereof or any business
communications and dealings among Borrower, and/or Guarantors and the Lender concerning the Loan through the date of execution
hereof.

 

14. The Guarantors, for
valuable consideration, the receipt and adequacy of which are hereby acknowledged, each hereby consent to and join in this Amendment
and hereby declare to and agree with the Lender that: (a) the Guaranty Agreements and Security Agreements entered into by the Guarantors,
are and shall continue in full force and effect for the benefit of Lender with respect to the obligations guaranteed and secured
thereby, as amended by this Agreement, (b) there are no offsets, claims, counterclaims, cross-claims or defenses of the Guarantors
with respect to such Guaranty Agreements or Security Agreements nor, with respect to the obligations guaranteed and secured thereby,
(c) that the Guaranty Agreements and Security Agreements are not released, diminished or impaired in any way by this Amendment
or the transactions contemplated hereby, and (d) such Guaranty Agreements and Security Agreements, as amended by this Agreement,
are hereby ratified and confirmed in all respects. Guarantors each acknowledge that without this consent and reaffirmation, the
Lender would not execute this Agreement or otherwise consent to its terms.

 

15. This Amendment shall,
upon satisfaction of the items set forth in Section 6 above, be effective as of the date set forth above. Thereafter, this Amendment
shall be binding upon and inure to the benefit of the Borrower, the Lender, each of the other parties to the Loan Documents and
each of their respective successors and assigns.

 

(SIGNATURE PAGE(S) ATTACHED)

 

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IN WITNESS WHEREOF, Borrower and Lender have
set their respective hands and seals as of March 4, 2020.

 

BORROWER:

	 	 	 
	Vicon Industries, Inc.	 
	 	 	 
	By:	/s/
    Saagar Govil	 
	Name:	Saagar Govil	 
	Title:	CEO	 
	 	 	 
	GUARANTORS:	 
	 	 	 
	IQinVision, Inc.	 
	 	 	 
	By:	/s/
    Saagar Govil	 
	Name:	Saagar Govil	 
	Title:	CEO	 
	 	 	 
	TeleSite U.S.A., Inc.	 
	 	 	 
	By:	/s/
    Saagar Govil	 
	Name:	Saagar Govil	 
	Title:	CEO	 
	 	 	 
	Vicon Industries Limited	 
	 	 	 
	By:	/s/
    Saagar Govil	 
	Name:	Saagar Govil	 
	Title:	CEO	 
	 	 	 
	Vicon Systems Ltd.	 
	 	 	 
	By:	/s/
    Saagar Govil	 
	Name:	Saagar Govil	 
	Title:	CEO	 
	 	 	 
	LENDER:	 
	 	 	 
	NIL Funding Corporation	 
	 	 	 
	By:	/s/
    Michael Bender	 
	Name:	Michael Bender	 
	Title:	Secretary	 

 

    	8Exhibit

Exhibit 4.2
DESCRIPTION OF SECURITIES
 
References to the “Company” herein are only to Natural Health Trends Corp. and not to any of its subsidiaries.
 
Description of Capital Stock
 
General
 
The following is a summary of information concerning the capital stock of the Company. The summary below does not purport to be a complete statement of the relevant provisions of the Company’s Certificate of Incorporation, dated March 21, 2005 (as amended, the “Charter”), and Amended and Restated Bylaws, dated March 27, 2018 (as amended, the “Bylaws”), and is entirely qualified by these documents.
 
Common Stock
 
Authorized Capital Stock. The Company is authorized to issue up to 50 million shares of common stock, par value $0.001 per share (the “Common Stock”), and 5 million shares of preferred stock, par value $0.001 per share (the “Preferred Stock”).  The Common Stock is registered under Section 12 of the Securities Exchange Act of 1934 and listed on the Nasdaq Capital Market under the ticker symbol “NHTC.”  The Company does not currently have any shares of Preferred Stock outstanding.
 
Dividends. Subject to prior dividend rights of the holders of any shares of Preferred Stock, holders of shares of Common Stock are entitled to receive dividends when, as and if declared by the Company’s Board of Directors (the “Board”) out of funds legally available for that purpose. Delaware law allows a corporation to pay dividends only out of surplus, as determined under Delaware law.
 
Voting Rights. The holders of Common Stock are entitled to one vote for each share of such stock held of record by them.  At stockholder meetings, most matters are decided by the vote of a majority of the votes cast by the stockholders present in person or represented by proxy and entitled to vote thereat, a quorum being present.  Directors are elected by a plurality of the votes of the shares present in person or represented by proxy and entitled to vote on the election of directors at stockholder meetings.  Cumulative voting in the election of directors is not permitted.
 
Other Rights. In the event of any liquidation, dissolution or winding up of the Company, after the satisfaction in full of the payment or provision for liabilities and liquidation preferences of holders of any shares of Preferred Stock, holders of shares of Common Stock are entitled to share ratably in the remaining assets available for distribution to stockholders. The shares of Common Stock are not subject to redemption by operation of a sinking fund or otherwise. Holders of shares of Common Stock are not currently entitled to preemptive rights.
 
Fully Paid. The issued and outstanding shares of Common Stock are fully paid and non-assessable. This means the full purchase price for the outstanding shares of Common Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares. 
 
Anti-takeover Effects of the Company’s Charter and Bylaws
 
Some provisions of the Charter and Bylaws could have the effect of delaying, deferring or preventing a change in control of the Company.  These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of the Company to first negotiate with the Board. The Company believes that the benefits of increased protection give it the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure the Company and outweigh the disadvantages of discouraging those proposals because negotiation of them could result in an improvement of their terms.
 

Size of Board and Vacancies
The Bylaws provide that the number of directors which shall constitute the Board shall not be less than 3 nor more than 11 and, within these limits, the number of directors constituting the Board shall be determined by the Board or by the stockholders.  Any director may be removed in accordance with the terms of the Charter and the Bylaws, and as provided by applicable law.  Newly-created directorships resulting from any increase in the authorized number of directors or vacancies in the Board may be filled by a majority of the directors then in office, or by the sole remaining director.
 
Elimination of Stockholder Action by Written Consent
The Charter and Bylaws eliminate the right of the Company’s stockholders to act by written consent without a meeting. Stockholder action must take place at the annual or a special meeting of the Company’s stockholders.
 
Special Meetings of the Stockholders
Under the Charter and Bylaws, unless otherwise required by law, only the Company’s Chairman of the Board, Chief Executive Officer, or a majority of the members of the Board may call special meetings of the Company’s stockholders. 
 
Requirements for Advance Notification of Stockholder Proposals and Nominations 
The Bylaws establish advance notice procedures with respect to stockholder proposals and nomination of candidates for election as directors, other than proposals and nominations made by or at the direction of the Board or a committee of the Board.
 
Amendment of Charter and Bylaws
Although the Board is permitted to amend the Bylaws at any time, the Company’s stockholders may only amend the Bylaws with the affirmative vote of the holders of at least two-thirds (2/3) of the voting power of all shares of the Company entitled to vote generally in the election of directors.  In addition to any affirmative vote required by applicable law or specified in any agreement, the affirmative vote of at least two-thirds (2/3) of the voting power of all shares of the Company entitled to vote generally in the election of directors is required to amend, add, alter, change, repeal or adopt any provisions inconsistent with certain specified sections of the Charter.
 
Undesignated Preferred Stock
The authorization of the Company’s undesignated Preferred Stock makes it possible for the Board to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of the Company.

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