Document:

Unassociated Document

 

 Execution Copy

 

EMPLOYMENT AGREEMENT

 

BETWEEN:

LOWER LAKES TOWING LTD.

(the "Company")

- and –

SCOTT BRAVENER

(the "Executive")

(collectively referred to as the "Parties")

RECITALS:

A.           The Executive has been employed with the Company in the position of President and Chief Executive Officer since August 1, 1995.

B.           The Executive has specialized knowledge and valuable skills and experience, which are critical to the management of the Company and its affiliates, Lower Lakes Transportation Company, Grand River Navigation Company, Inc., Black Creek Shipping Company, Inc., and each of their subsidiaries (each a "Member Company"), and to the continuing success of the business of the Company and the Member Companies.

C.           The Company wishes to secure the continued services of the Executive under the terms of this Agreement and the Executive wishes to provide continued services under the terms of this Agreement.

D.           The Company and the Executive are parties to an Employment Agreement, dated October 8, 2009 (the “2009 Employment Agreement”), which the Company and the Executive intend to be superseded and replaced in all respects by this Agreement.

NOW THEREFORE, for value received the Parties agree as follows:

1.           DUTIES AND RESPONSIBILITIES

1.1           Positions, Duties and Responsibilities

(a)           The Company confirms the continuing appointment of the Executive in the position of President and recognizes for all purposes the Executive's past service with the Company. The Executive will be responsible for the general supervision and control over the day to day operations of the Company and each Member Company (to the extent permissible under laws and regulations applicable to the business of each such Member Company), and shall have such duties and responsibilities consistent therewith, including those duties and responsibilities set out in Schedule A to this Agreement. All senior management of the Company and each Member Company (to the extent permissible under laws and regulations applicable to the business of each such Member Company) will report directly to the Executive. The Executive will report to the Board of Directors of the Company as required by law (and the Board of Directors of each such Member Company, as applicable in accordance with law).  However, ultimately, the Executive will have a direct line reporting relationship with the Company’s parent, Rand Logistics, Inc. (“Rand”) and to its President and to its Executive Chairman, which shall have overall decision making authority for the Company and each Member Company. The Executive will continue to serve on the Board of Directors of the Company. The Executive will also serve as the President of Lower Lakes Transportation Company, and as an officer of each such other Member Company, and Director of all Canadian Member Companies, and a Director of Rand Logistics, Inc. ("Rand") to the extent desired by the Board of Directors of each such other Member Company or Rand, in each case without additional compensation therefor.

 

  

  

  

 

(b)           The Executive shall devote all of his business time, attention and energies, on a full time and exclusive basis, to the business and affairs of the Company and the Member Companies, shall use his best efforts to advance the best interests of the Company and the Member Companies, and shall not during the Term be engaged in any other business activities, whether or not such business activities are pursued for gain, profit or other pecuniary advantage, without approval of the Board of Directors of the Company; provided, however, that, it shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic or charitable boards or committees or (ii) manage passive personal investments, in either case so long as any such activities do not interfere with the performance of his responsibilities as an employee of the Company in accordance with this Agreement or adversely affect or negatively reflect upon the Company or the Member Companies.

(c)           Irrespective of anything else in this agreement to the contrary, the Executive agrees to comply with the Rand Insider Trading Policy and Procedure in place from time to time, a copy of which is attached to this Agreement updated to March 19, 2008.

1.2           Reassignment

The Company shall not reassign the Executive to another position within the Company or within a Member Company, or alter the duties, responsibilities, title, or reporting lines of the Executive in a manner inconsistent with this Agreement or past practice. The Company shall not change the location of the Executive's employment unless the Executive agrees to such change.

 

  

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1.3           Travel

The Executive shall be employed at the Company's location in Port Dover, Ontario. The Executive shall be available for such business-related travel as may be required for the purposes of carrying out the Executive's duties and responsibilities.

1.4           Healthcare Program

The Executive shall participate in the Annual Executive Program of the Cleveland Clinic in Toronto, or such similar program as may be offered by other institutions, as may be agreed between the parties.  The Company shall continue to pay such fees or other charges as may be incurred as a result of Executive’s participation in any such program.

 

2.           TERM OF EMPLOYMENT

(a)           This Agreement will commence on April 1, 2014 and will continue for a fixed term, ending March 31, 2016 (the "Term") subject to paragraph 2 (b) and Section 9 of this Agreement. The Term may be extended upon mutual written agreement of the Parties (“Successive Term”). Notwithstanding Subsection 9.2 of this Agreement, if at or near the end of the Term the parties agree in writing to negotiate or continue to negotiate the terms of an extension or a further extension of this Agreement, the Term or Successive Term shall be extended and the terms of this Agreement or successive agreement shall remain in effect until such date that one of the parties notifies the other in writing that negotiations for an extension or renewal are at an end at which date the Term shall be at an end.

 

(b)           In the event of a Change of Control of Rand, the Term set out in paragraph 2 (a) will be adjusted for all purposes of this Agreement (including, for greater certainty, Subsection 9.2) and shall end on a date that is 18 months from the date of Change of Control if such date is earlier than the end of the Term.  “Change of Control” shall mean (A) any person or group (within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), other than Hyde Park Holdings LLC or any of its affiliates, or a group that includes any such persons, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of any securities of Rand which carry the right to vote in the election of, or participate in the appointment of, Rand’s directors (“Voting Securities”), representing 50% percent or more of the total voting power of all the then-outstanding Voting Securities, (B) the individuals who, as of the date hereof, constitute Rand’s Board of Directors, together with those who first become directors subsequent to such date and whose recommendation, election or nomination for election to Rand’s Board of Directors was approved by a vote of at least a majority of the directors then still in office who either were directors as of the date hereof or whose recommendation, election or nomination for election was previously so approved (the “Continuing Directors”), cease for any reason to constitute a majority of the members of Rand’s Board of Directors, (C) consummation of a merger, consolidation, recapitalization or reorganization of Rand, or a subsidiary, reverse split of any class of Voting Securities, or an acquisition of securities or assets by Rand, provided, that any such transaction in which the holders of outstanding Voting Securities immediately prior to the transaction receive (or, in the case of a transaction involving a subsidiary and not Rand, retain), with respect to such Voting Securities, voting securities of the surviving or transferee entity representing more than 60 percent of the total voting power outstanding immediately after such transaction shall not be deemed a Change of Control if the voting power of each such continuing holder relative to other such continuing holders not substantially altered in such transaction or (d) the stockholders of Rand approve a plan of complete liquidation of Rand or consummation of an agreement for the sale or disposition by Rand of all or substantially all of Rand’s assets.

 

  

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3.           BASE SALARY

The Executive will continue to be paid an annual salary in the amount of Cdn. $294,752, which amount will increase annually, commencing April 1, 2015 by the lower of: (i) an amount equivalent to a rise in the Consumer Price Index as determined by Statistics Canada for the prior 12 months; or (ii) 3% of base salary on a year over year basis.  Notwithstanding the forgoing, the base salary will be reviewed on an annual basis by the Compensation Committee of the Board of Directors of Rand with input from the Executive and Rand’s President and Executive Chairman. The Company, at its sole discretion, may decide to increase base salary in a greater amount in any given year. The base salary in effect at any given time will be the “Base Salary”. The Executive's Base Salary will be payable in accordance with Company practices and procedures as they may exist from time to time.

 

4.           BONUS

 

4.1           Bonus Plan

The Executive shall be a "Participant" in the Management Bonus Program Agreement (the "Bonus Plan"), on the terms set out below and be paid an amount (“Performance Bonus”) from fiscal year to fiscal year equal to an amount not less than 40% of Base Salary if the Company achieves a target to be set on an annual basis by the Compensation Committee of the Board of Directors of Rand with input from the Executive and Rand’s President and Executive Chairman. Financial results for meeting such targets will be measured from Rand’s Audited Financial Statements for the fiscal year ending March 31. Bonus will be paid no later than the following September 30.

 

4.2           Equity Compensation

 

(a)           Equity Awards

 

The Executive will be permitted to participate in Rand’s 2007 Long-Term Incentive Plan or under any other of Rand’s equity incentive plans adopted following the date of this Agreement in accordance with its terms at a level decided by the Compensation Committee of the Board of Directors of Rand.

 

  

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5.           RETIREMENT PLANS AND PENSION

 

The Company will make annual contributions to the Executive's Registered Retirement Savings Plan in an amount that is not less than Cdn. $24,270, or, subject to the approval of the Compensation Committee of the Board of Directors of Rand, such greater amount as may be permitted by applicable law.

6.           OTHER BENEFITS

The Executive shall be entitled to participate in or receive fully paid benefits under any health and accident plan or any other employee benefit plan or arrangement made available now or in the future by the Company to its executives and key management personnel but such benefits must be at least equivalent to those provided to the Executive in the fiscal year ended March 31, 2014, or as may be provided to the Company’s Class 1 employees if such benefits are greater.

7.           VACATION

The Executive will continue to be entitled to five weeks paid (at then current Base Salary) vacation per calendar year. Unused vacation days may not be carried over from one calendar year to the next, and any unused vacation days as of the end of a calendar year shall be forfeited by the Executive. The Executive will arrange vacation time to suit the essential business needs of the Company.

 

8.           PERQUISITES AND EXPENSES

8.1           Automobile

The Company will continue to lease an automobile for the Executive (the "Lease") to be used at the Executive's discretion at a maximum monthly cost to the Company of not more than Cdn. 1,039.00 + HST as of April 1, 2014 (which may increase on an annual basis based on the average Consumer Price Index for the prior 12 months as published by Statistics Canada). In addition to the Lease, the Company will pay all related expenses (maintenance and repair, service, insurance, gasoline, etc.) related to all use of such automobile.

 

8.2           Reimbursement of Expenses

The Company recognizes that the Executive will incur expenses in the performance of the Executive's duties. The Company shall reimburse the Executive for any reasonable out-of-pocket expenses incurred in the course of employment, including reasonable travel and entertainment expenses.

 

  

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8.3           Professional Dues

The Company will pay for or reimburse the Executive for reasonable Professional Society Dues or fees and reasonable Recertification costs.

	
9.

	
TERMINATION OF EMPLOYMENT; NON-COMPETITION; NON- SOLICITATION

	
9.1

	
Terminations Resulting in No Further Obligation by the Company to the Executive

The Company shall have no further obligations to the Executive hereunder, or under statute, common law or otherwise, in the event of the following terminations of employment:

(a)           Voluntary Resignation or Resignation Without Notice

In the event the Executive voluntarily resigns without: (i) Good Reason; or (ii) without at least sixty (60) days advance written notice to the Company even if there is Good Reason.

(b)           Cause

In the event the Executive's employment is terminated for Cause, which term for the purposes of this Agreement shall mean (i) conviction of the Executive of a criminal offence involving fraud, larceny, misappropriation of funds, embezzlement or dishonesty; (ii) receipt by or on behalf of Executive or any member of Executive's immediate family of any personal profit arising out of in connection with a transaction to which the Company or a Member Company is party without making full prior disclosure to Rand and the Company or such Member Company; (iii) any misfeasance, nonfeasance or malfeasance by Executive which causes material harm to the Company or a Member Company; (iv) a breach by the Executive of any material term of this Agreement, or failure of the Executive to follow and carry out the lawful instructions of the Board of Directors of the Company, a Member Company or Rand, in each case after notice and reasonable opportunity for the Executive to cure such breach or failure; (v) the Executive having been under the influence of drugs (other than prescription medicine or other medically-related drugs to the extent that they are taken in accordance with their directions) or alcohol during the performance of his duties under this Agreement (it being understood that the Executive will attend industry functions at which alcohol will be consumed by the Executive), or while otherwise under the influence of drugs or alcohol, engages in inappropriate conduct; or (vi) the Executive having engaged in behavior that would constitute grounds for liability for sexual harassment or discrimination.

 

  

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For greater certainty, under this subsection 9.1, the Executive will receive no Performance Bonus or pro-rated Performance Bonus and no Separation Package but the Executive will continue to be bound by subsections 9.5, 9.6, 9.7 and 9.8 of this Agreement

	
9.2

	
Termination by the Company without Cause or Failure to Renew upon Expiry of the Term

(a)           Without Cause and Failure to Renew:  The Company may terminate the Executive's employment without Cause: (i)  at any time prior to the expiry of the Term; or (ii) upon the expiry of the term and each successive expiry of the Term where the Company decides not to renew this Agreement (including a situation where the Company and the Executive cannot agree on the terms of a renewal), in each case by providing the Executive with (A) any then accrued but unpaid Base Salary and Performance Bonus as of the date of termination or non-renewal and any outstanding reimbursable expenses incurred by the Executive prior to the date of termination or non-renewal, (B) payment, in equal monthly payments for a period of twenty four (24) months, of an amount equal to two (2) times the average of the Executive’s T-4 Statement of Remuneration Paid1 (reported taxable income) from the Company for the three (3) completed calendar years immediately preceding the date of such termination, and (C) continuation of benefits provided pursuant to Sections 5 and 6 for the payment period (the foregoing clause (A), (B) and (C) being referred to as the "Separation Package").  The Separation Package will terminate and all obligations of the Company thereunder will end should the Executive breach any of subsections 9.5, 9.6, 9.7 or 9.8 of this Agreement.

(b)           Upon the termination of the Executive’s employment for any reason, any of the Executive’s outstanding equity-based awards granted under Rand’s 2007 Long-Term Incentive Plan or under any other of Rand’s equity incentive plans adopted after the date of this Agreement shall be forfeited or become vested as provided in accordance with the terms of the applicable award agreement.

(c)           The Executive shall receive the Separation Package without the requirement to mitigate and, subject to breach of subparagraphs 9.5, 9.6, 9.7 or 9.8 of this Agreement, alternative employment will not reduce the Executive’s entitlements under the Separation Package.

(d)           The first payment of continuing salary described as component “(B)” of the Separation Package shall be made within 30 days of the date of Termination and the second and each subsequent monthly payment will be made on or before the day which is the same calendar day of the first payment (e.g. : if the first payment is made on the 5th of the month, each subsequent payment will be made on or before the 5th of each following month).   Should the Company fail to make a payment by the date due or fail to continue or to pay any other component of the Separation Package (unless agreed in writing between the parties), the Executive may advise the Company in writing of the default and after receipt of the notice of default in writing the Company shall have 30 days to cure such default.  Should the Company fail to cure the default within the required time, the Executive shall be relieved, notwithstanding anything else in this Agreement, of the Executive’s obligation under subsections 9.5 and 9.6 of this Agreement.  Irrespective of default, continuing default or failure to honour some or all of the components of the Separation Package the Executive shall not be relieved of Executive’s other continuing obligations under subsections 9.7 or 9.8 of this Agreement.  In respect of this paragraph it shall not be a breach of subsection 9.7 of this Agreement for the Executive to interview an employee of the Company or employ an employee of the Company responding to a general advertisement for open employment positions as long as the Executive took no personal active steps, directly or indirectly to solicit or entice that employee to apply for or seek the position.

 

__________________

1 Canadian equivalent of U.S. W-2 Form.

 

  

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(e)           In respect of the Separation Package in this subsection 9.2 and in subsection 9.3, accrued Performance Bonus means, and will include: (a) any Performance Bonus as determined under section 4.1 of this Agreement but unpaid for the prior fiscal year of the Company, to be payable by the Company to the Executive by September 30 of the year of termination; and (b) a prorated Performance Bonus in the fiscal year of termination that is the number of completed months of employment in that fiscal year divided by 12 of the amount of the annual Performance Bonus as calculated in section 4.1 of this Agreement, to be payable by the Company to the Executive by September 30 of the following fiscal year.

(f)           Further in respect of the Separation Package in this subsection 9.2 and in subsection 9.3, the Company may, at its sole discretion, decide to: continue the policies of Long Term and Short Term Disability insurance (“LTD” and “STD”) in place at the time of termination, if available; pay conversion of policy premiums for the Executive’s conversion of the policies in place, if available; pay the premiums of a replacement individual policy or policies;  or self insure either LTD or STD insurance on terms the same as the terms of the policy or policies in effect at the time of termination.

 

(g)           Further as to this subsection 9.2 and subsection 9.3, should the Executive become injured or disabled during the period that he is entitled to the Separation Package, the Executive will receive STD or LTD benefits commencing only after the 24 months continuing payments under the Separation Package have been paid to the Executive.

9.3           Termination by the Executive for Good Reason

Except where the Executive does not provide at least 60 days notice, should the Executive terminate his employment for Good Reason, as hereinafter defined, he shall receive the Separation Package, with the restrictions on STD and LTD contained in subsection 9.2, except that all obligations of the Company under the Separation Package will end should the Executive breach any of subsections 9.5, 9.6, 9.7 or 9.8 of this Agreement.  Failure of the Executive to terminate his employment on the occurrence of any event which would constitute Good Reason shall not constitute waiver of his right under this subsection 9.3 should Good Reason continue. "Good Reason" is defined as the occurrence of any of the following without the Executive's express written consent:

 

  

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a)           any material diminution or change in the Executive’s duties as President of the Company, after notice to the Company of, and reasonable opportunity of the Company to cure, such alleged Good Reason;

b)           failure by the Company to permit the Executive to continue to participate in the Bonus Plan in effect as determined in accordance with section 4.2 of this Agreement or to provide the Executive with benefits and other pension or retirement plans in accordance with Sections 5 and 6 substantially consistent with those plans in which the Executive has participated in periods immediately prior to the Term;

c)           the Company relocating the Executive's principal office outside of Port Dover, but only if the Company and the Executive cannot agree on terms and conditions under which the Executive would relocate; or

d)           any breach by the Company of any material term of this Agreement after notice to the Company of such breach and reasonable opportunity to cure such breach.

9.4           Disability and Death

 

(a)           The Executive shall, upon his Disability (as defined below), have the right to receive the Separation Package as defined in paragraph 9.2(a) of this Agreement and those items of compensation as set out in paragraph 9.4(b) that vest upon Disability. Upon his death the Executive’s estate shall receive only any then accrued but unpaid Base Salary, unpaid Performance Bonus and pro-rated Performance Bonus in the year of death, any item of compensation that vests upon the death of the Executive as set out in paragraph 9.4(b) and any outstanding reimbursable expenses incurred by the Executive prior to the date of death. For purposes of this Agreement, a "Disability" shall mean: (i) the Executive’s absence from the normal performance of the Executive’s duties pursuant to a reasonable determination made in accordance with the Company’s long-term disability plan that Executive is disabled and entitled to long-term disability benefits as a result of incapacity due to physical or mental illness that lasts, or is reasonably expected to last, for at least six (6) months; provided, that, in the event that the Company does not have a long-term disability plan at such time, such determination of incapacity due to physical or mental illness that lasts, or is reasonably expected to last, for at least six (6) months shall be made in a written statement from a reputable independent physician selected by the Company that is reasonably satisfactory to the Executive (or the Executive’s personal representative, if applicable). The Executive agrees to make himself available and to cooperate in any reasonable examination by a reputable independent physician selected by the Company for the purposes of a determination of Disability pursuant to this Section 9.4.  A willful failure to cooperate in a timely manner to a request for examination by the independent physician will be considered cause for termination under paragraph 9.1 (b) of this Agreement.

 

  

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(b)           Should the employment of the Executive be terminated by the Executive’s death or Disability, (i) the Restricted Shares and (ii) all of the Executives outstanding equity-based awards granted under Rand’s 2007 Long-Term Incentive Plan or under any other of Rand’s equity incentive plans adopted following the date of this Agreement shall immediately vest.

9.5           Non-Competition

The Executive further agrees that during his employment and for a period of  24 months after termination of his employment for any reason, the Executive will not in any way be associated with or involved, directly or indirectly with, serve as an employee, officer, director, or in any advisory capacity with, either individually or in partnership or jointly or in conjunction with, any person, firm, trust, partnership, association, syndicate or company, as principal, agent, shareholder, trustee or in any other manner whatsoever otherwise carry on or be engaged in or be concerned with, or start up or create, any person, firm, corporation or other entity within Canada or the United States engaged in the marine transportation business on the Great Lakes and the St. Lawrence Seaway, except as a shareholder holding less than  5% of the outstanding shares of any such corporation whose shares are listed and posted for trading on a recognized stock exchange.

 

9.6           Non-Solicitation of Customers

The Executive shall not, during his employment or within 24 months following the termination of his employment for any reason, directly or indirectly, solicit any customer of the Company or any Member Company (or any person or entity that was a customer of the Company or of any Member Company in the 12 months immediately preceding such termination) in order to attempt to direct any such customer or former customer away from, or to do less business with, the Company or any Member Company.

9.7           Non-Solicitation of Employees

The Executive shall not, during his employment or within 24 months following the termination of his employment for any reason, directly or indirectly recruit, solicit or endeavour to entice away from the Company or any Member Company any individual who is an employee of, or service provider to, the Company or any Member Company, or who was an employee of, or provided services to, the Company or any Member Company at any time during the 12 months immediately preceding such solicitation.

9.8           Non-Disclosure of Confidential Information:

 

In addition to the fiduciary duties that the Executive owes to the Company, each Member Company and Rand, the Executive agrees that he will not, at any time during or after the termination of his employment under this Agreement, use for his own benefit, either directly or indirectly, or disclose or communicate in any manner to any individual, corporation, or other entity, other than the Company the relevant Member Company or Rand, any confidential information acquired by him during his employment, regarding any actual or intended business activity, product, service, plan or strategy of the Company, Member Company or Rand. As used in this Agreement, “confidential information” shall include all information disclosed to or known by the Executive as a consequence of or developed through or during his employment by the Company or his association with each Member Company or Rand including all knowledge, information and materials regarding the Company's, the Member Companies’ or Rand’s  products, services, processes, know-how, customers, suppliers, product and/or service development, business plans, and research, as well as confidential information about financial, marketing, pricing, cost, compensation or any other proprietary matters relating to the Company, each Member Company or Rand whether or not subject to other protection (except that the intention of this subsection is not to prevent the Executive from using his general skills and knowledge of the Marine Industry, including customers, suppliers and pricing after the expiry of the non-competition period set out in subsection 9.5 or such knowledge known to the Executive prior to the Executive's employment by the Company or association with each Member Company or Rand or information in the public domain (unless improperly disclosed by the Executive)).

 

  

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On termination of employment, for any reason, the Executive agrees that he will deliver copies of all documents in his possession containing Confidential Information in any form or stored on any media to the Company, will return all Company owned electronic equipment and will certify, if requested by the Company, that all Confidential Information has been permanently deleted from any privately owned electronic storage, computers and media.

 

9.9           Survival of Terms

The obligations of the Executive under sections 9.5, 9.6, 9.7, and 9.8 of this Agreement shall survive the termination for any reason of this Agreement.

10.           CHANGES TO AGREEMENT

Any modifications or amendments to this Agreement must be in writing and signed by all Parties or else they shall have no force and effect.

11.           ENUREMENT

This Agreement shall enure to the benefit of and be binding upon the Parties and their respective successors and assigns, including without limitation, the Executive's heirs, executors, administrators and personal representatives.

12.           GOVERNING LAW, VENUE

Except as otherwise explicitly noted, this Agreement shall be governed by and construed in accordance with the laws of Canada and the Province of Ontario (without giving effect to the principles of conflicts of law). Each party to this Agreement irrevocably agrees that any action or proceeding concerning or arising out of the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the courts located in the Province of Ontario. Each party and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

 

  

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13.           NOTICES

13.1           Notice to Executive

Any notice required or permitted to be given to the Executive shall be deemed to have been received if delivered personally to the Executive or sent by courier to the Executive's home address last known to the Company.

13.2           Notice to Company

Any notice required or permitted to be given to the Company shall be deemed to have been received if delivered personally to, sent by courier, or sent by facsimile to:

Rand Logistics, Inc.

500 Fifth Avenue, 50th Floor

New York, NY 10110

Attention: Laurence S. Levy, Chairman

Facsimile:  212-644-6262

Telephone: 212-644-3450

with a copy to:

Hazzard & Hore

Barristers & Solicitors

141 Adelaide Street West, Suite 1220

Toronto, ON  M5H 3L5

Attention: Scott F. Hazzard

Facsimile: (416) 868-1468

Telephone: (416) 868-1551

 

  

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14.           CURRENCY

All dollar amounts set forth or referred to in this Agreement refer to Canadian currency unless otherwise expressly stated.

15.           WITHHOLDING

All payments made by the Company to the Executive or for the benefit of the Executive shall be less applicable withholdings and deductions, except as instructed in respect of the Restricted Shares.

16           SAVINGS CLAUSE

The parties hereto agree that if, in any judicial proceeding, a court finds any portion of this Agreement unenforceable, such portion shall be interpreted to the maximum extent enforceable and the remainder of this Agreement shall be unaffected and enforced with its terms or to the maximum extent permitted by law.

Should any provision in this Agreement not meet the minimum standards or requirements of the Canada Labour Code as amended from time to time or said Act’s Regulations, then the minimum standard or requirement of the Canada Labour Code or its Regulations shall be substituted for the provision in this Agreement that does not meet the minimum requirements or standards and such minimum requirement or standard shall be incorporated and become part of this Agreement without affecting any other part of this Agreement.

 

17.           ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior agreements, negotiations and discussions between the parties hereto, there being no extraneous agreements.

 

IN WITNESS WHEREOF the Parties have duly executed this Agreement this 3rd day of July, 2014.

 

	________________________ 	/s/ Scott Bravener
	Witness 	SCOTT BRAVENER 
	 	 
	 	 
	 	 
	 	
LOWER LAKES TOWING LTD.

 

 

By: /s/ Joseph W. McHugh, Jr.

       Name: Joseph W. McHugh, Jr.

       Title: Vice President

  

  

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SCHEDULE A

 

Operations

 

	
o 

	
Oversee all aspects of operations.

	
o 

	
Evaluation of vessels.

	
o 

	
Oversee labour negotiations.

	
o 

	
Review and approval of monthly equipment, maintenance and capital expenditures.

	
o 

	
Problem solving.

Sales & Marketing

	
o 

	
Lead business development effort and sales team.

	
o 

	
Customer relationship management and development.

	
o 

	
Pricing for all products, customers and profitability management.

	
o 

	
Contract negotiations with new and existing customers.

	
o 

	
Troubleshooting and problem solving.

	
o 

	
Direct responsibility for key accounts.

	
o 

	
Hire of new personnel.

Administration & Finance

	
o 

	
Delegation of duties to senior management.

	
o 

	
Strategic planning and implementation.

	
o 

	
Oversee accounting functions and IT systems.

	
o 

	
Accounts payable and cheque approvals.

	
o 

	
Budgeting.

	
o 

	
Legal, accounting and professional services assistance.

	
o

	
Hiring and firing of employees and determination of responsibilities of employees.

	
o

	
Corporate finance - support dealings with Company's bankers and other lenders.

 

 

14Exhibit 4(b)

 

AMENDED AND RESTATED BYLAWS

OF

PROTECTIVE LIFE CORPORATION

(“Corporation”)

 

Adopted on February 25, 2013

(As Restated to Incorporate the June 3, 2014 Amendment Thereto)

 

ARTICLE I.

OFFICES

 

The registered office of the Corporation in the State of Delaware shall be located in the City of Wilmington, County of New Castle.  The principal office of the Corporation shall be located in Jefferson County, Alabama.  The Corporation may have such other offices, either within or without the State of Delaware, as the Board of Directors or an Executive Committee may designate or as the business of the Corporation may require from time to time.

 

ARTICLE II.

STOCKHOLDERS

 

Section 1.                                          Annual Meeting.  The annual meeting of the stockholders for the purpose of electing directors, and for the transaction of such other business as may come before the meeting, shall be held at such date and time during the first five months of the calendar year as shall be specified by resolution of the Board of Directors.

 

Section 2.                                          Special Meetings.  Except as otherwise provided in the Certificate of Incorporation of the Corporation, special meetings of the stockholders shall be called only by the Board of Directors pursuant to a resolution adopted by a majority of the total number of directors then in office.  The business transacted at a special meeting shall be confined to the purposes specified in the notice thereof.  Special meetings shall be held on such date and at such time as the Board of Directors may designate.

 

Section 3.                                          Place of Meetings.  The place of all meetings shall be the principal office of the Corporation in the State of Alabama unless some other place, either within or without the State of Alabama, is designated by a resolution of the Board of Directors or other person or persons entitled to call such meeting.

 

Section 4.                                          Notice of Meetings; Waiver of Notice.  Except as otherwise provided by law or the Certificate of Incorporation, notice given in writing or by electronic transmission of each meeting of stockholders shall be given not less than ten (10) nor more than sixty (60) days before the meeting date, by or at the direction of the Board of Directors, the Chief Executive Officer or the Secretary, to each stockholder of record entitled to vote at such meeting, such notice to specify the place, if any, date and time of the meeting, the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, and, in the case of a special meeting, the purpose or purposes for which such meeting is called.  If such notice is mailed, it shall be deemed to have been given to a stockholder when deposited in the United States mail, postage prepaid, directed to the stockholder at his or her address as it appears on the record of stockholders of the Corporation, or, if a stockholder has filed with the Secretary of the Corporation a written request that notices to such stockholder be mailed to some other address, then directed to such stockholder at such other address.  Without limiting the manner by which notice otherwise may be given to stockholders, any notice given by electronic transmission shall be deemed to have been given to a stockholder:  (1) if by

 

 

facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice; (2) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (3) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of such posting and the giving of such separate notice; and (4) if by any other form of electronic transmission, when directed to the stockholder.  Such further notice shall be given as may be required by law.  Nothing hereinabove in this Section shall affect the notice requirements of the Certificate of Incorporation.

 

Whenever notice is required to be given under any provision of law, the Certificate of Incorporation, or these Bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice.  Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.  Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need by specified in a written waiver of notice or any waiver by electronic transmission unless so required by the Certificate of Incorporation or these Bylaws.

 

Section 5.                                          Postponement of Meetings.  Any previously scheduled annual or special meeting of the stockholders may be postponed by resolution of the Board of Directors upon public announcement made on or prior to the date previously scheduled for such annual or special meeting.

 

Section 6.                                          Business at Annual Meetings.  To be properly brought before an annual meeting, business must be (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors, the Chief Executive Officer or the Secretary pursuant to Section 4 of this Article, (b) otherwise properly brought before the meeting by or at the direction of the Board of Directors, or (c) otherwise properly brought before the meeting by a stockholder of the Corporation who was a stockholder of record at the time of giving of the notice provided for in this Section, who is entitled to vote on such matter at the meeting and who complies with the notice procedures set forth in this Section.  For business to be properly brought before an annual meeting by a stockholder, if such business is related to the election of directors of the Corporation, the procedures in Section 7 of this Article must be complied with.  If such business relates to any other matter, the stockholder must have given timely notice thereof in writing to the Secretary.  To be timely, a stockholder’s notice must be delivered or mailed to, and received by, the Secretary at the principal executive offices of the Corporation not less than sixty (60) days nor more than ninety (90) days prior to the first anniversary of the preceding year’s annual stockholder meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than thirty (30) days or delayed by more than sixty (60) days from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the 90th day prior to such annual meeting and not later than the close of business on the later of the 60th day prior to such annual 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 in writing (1) as to each matter the stockholder proposes to bring before the annual meeting, (A) a brief description of the business desired to be brought before the annual meeting, (B) the reasons for conducting such business at the annual meeting, and (C) any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made; and (2) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the proposal is made, (A) the name and address of such stockholder and such beneficial owner as they appear on the Corporation’s books, and (B) the class and number of shares of the Corporation which are owned beneficially and of record by such stockholder and such beneficial owner.  Notwithstanding anything in these Bylaws to the contrary, no business shall be conducted at any annual meeting except in accordance with the procedures set forth in this Section.  The presiding officer of the meeting shall, if the facts warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section, and if he or she should so

 

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determine, such presiding officer shall declare to the meeting that any such business not properly brought before the meeting shall not be transacted.

 

For the purposes of this Section and Section 7 of this Article, “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 Section 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  In addition to the provisions of this Section, 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 herein.  Nothing in these Bylaws 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.

 

Section 7.                                          Nomination of Directors.  Only persons who are nominated in accordance with the procedures set forth in this Section shall be eligible for election as directors of the Corporation.  Nominations of persons for election to the Board of Directors of the Corporation may be made at any annual meeting of stockholders (a) by or at the direction of the Board of Directors or (b) by a stockholder of the Corporation who was a stockholder of record at the time of giving of the notice provided for in this Section, who is entitled to vote for the election of directors at the meeting and who complies with the notice procedures set forth in this Section.  Any such nomination by a stockholder shall be made pursuant to timely notice thereof given in writing to the Secretary.  To be timely, a stockholder’s notice must be delivered or mailed to, and received by, the Secretary at the principal executive offices of the Corporation not less than sixty (60) days nor more than ninety (90) days prior to the first anniversary of the preceding year’s annual stockholder meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than thirty (30) days or delayed by more than sixty (60) days from such anniversary date, notice by the stockholder to be timely must be so delivered not earlier than the 90th day prior to such annual meeting and not later than the close of business on the later of the 60th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made.  Notwithstanding anything in foregoing sentence to the contrary, 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 annual stockholder meeting, a stockholder’s notice required by this Section shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be delivered or mailed to, and received by, 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.  Such stockholder’s notice shall set forth in writing (1) as to each person whom the stockholder and the beneficial owner, if any, on whose behalf the nomination is made, proposes to nominate for election or re-election as a director (A) the name, age, business address and residence address of such person, (B) the principal occupation or employment of such person, (C) the number of shares of stock of the Corporation which are beneficially owned by such person, and (D) any other information relating to such person that is required to be disclosed in connection with the solicitation of proxies for election of directors, or as otherwise required, in each case pursuant to Regulation 14A under the Exchange Act (including, without limitation, such person’s written consent to being named in a proxy statement as a nominee and to serving as a director if elected); and (2) as to such stockholder and such beneficial owner, if any, (A) the name and address of such stockholder and such beneficial owner as they appear on the Corporation’s books, and (B) the class and number of shares of the Corporation which are owned beneficially and of record by such stockholder and such beneficial owner.

 

Nominations of persons for election to the Board of Directors of the Corporation may be made at a special meeting of stockholders at which directors are to be elected pursuant to the Corporation’s notice of meeting (1) by or at the direction of the Board of Directors, the Chief Executive Officer or the Secretary

 

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or (2) provided that the Board of Directors has determined that directors shall be elected at such special meeting, by a stockholder of the Corporation who was a stockholder of record at the time of giving of the notice provided for in this Section, who is entitled to vote for the election of directors at the meeting and who complies with the notice procedures set forth in this Section.  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 shall be delivered or mailed to, and received by, the Secretary 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.

 

At the request of the Board of Directors, any person nominated by the Board of Directors for election as a director shall furnish to the Secretary that information required to be set forth in a stockholder’s notice of nomination which pertains to the nominee.  Notwithstanding anything in these Bylaws to the contrary, no person shall be eligible for election as a director of the Corporation unless nominated in accordance with the procedures set forth in this Section.  The presiding officer of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not properly made in accordance with the provisions of this Section, and if he or she should so determine, such presiding officer shall declare to the meeting that any such nomination not properly made shall be disregarded.  In addition to the provisions of this Section, 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 herein.

 

Section 8.                                          Fixing of Record Date.  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 in order to make a determination of stockholders for any other proper purpose, the Board of Directors may fix, in advance, a record date, which shall not be more than sixty (60) nor less than ten (10) days prior to any other action.  If no record date is fixed the following shall apply:

 

(a)                                 The record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given.

(b)                                 The record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

 

A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

 

Section 9.                                          Voting Lists.  The officer who has charge of the stock ledger of the Corporation shall prepare and make, at least ten (10) days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder.  Nothing contained in this section shall require the Corporation to include electronic mail addresses or other electronic contact information on such list.  Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least ten (10) days prior to the meeting:  (a) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (b) during ordinary business hours, at the principal place of business of the Corporation.  If the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to

 

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stockholders of the Corporation.  If the meeting is to be held at a physical location, then the list shall 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.  If the meeting is to be held solely by means of remote communication, then the list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting.  The stock ledger shall be the only evidence as to who are the stockholders entitled to examine the stock ledger, the list required by this section or the books of the Corporation, or to vote in person or proxy at any meeting of stockholders.

 

Section 10.                                   Quorum.  A majority of the outstanding shares of the Corporation entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of stockholders.  If less than a majority of the outstanding shares entitled to vote are represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time.  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.

 

When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken.  At the adjourned meeting the Corporation may transact any business which might have been transacted at the original meeting.  If the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

 

Section 11.                                   Proxies.  Any stockholder entitled to vote at any meeting of the stockholders may authorize another person or persons to act for such stockholder by proxy.  A stockholder may authorize a valid proxy by executing a written instrument signed by such stockholder, or by causing his or her signature to be affixed to such writing by any reasonable means including, but not limited to, by facsimile signature, or by transmitting or authorizing the transmission of a telegram, cablegram, or other means of electronic transmission to the person designated as the holder of the proxy, a proxy solicitation firm or a like authorized agent.  Proxies by telegram, cablegram, or other electronic transmission must either set forth or be submitted with information from which it can be determined that the telegram, cablegram, or other electronic transmission was authorized by the stockholder.  No such proxy shall be voted or acted upon after the expiration of three years from the date of such proxy, unless such proxy expressly provides for a longer period.  Every proxy shall be revocable at the pleasure of the stockholder executing it, except in those cases where applicable law provides that a proxy shall be irrevocable.  A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person, or by filing an instrument in writing revoking the proxy, or by filing another duly executed proxy bearing a later date with the Secretary.  Any copy, facsimile telecommunication or other reliable reproduction of a writing or transmission created pursuant to this section may be substituted or used in lieu of the original writing or transmission for any and all purposes for which the original writing or transmission could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original writing or transmission.

 

Section 12.                                   Voting of Shares.  Each outstanding share entitled to vote shall be entitled to one vote upon each matter submitted to a vote at a meeting of stockholders.  Unless otherwise prescribed by statute, the Certificate of Incorporation or these Bylaws, all elections shall be had, and all questions decided, by a majority vote of those shares present or represented by proxy and entitled to vote on the subject matter.  Notwithstanding the foregoing, matters which require a higher affirmative vote are specified in the Certificate of Incorporation of the Corporation.

 

Section 13.                                   Voting of Shares by Certain Holders.  Shares standing in the name of another corporation may be voted by such officer, agent or proxy as the bylaws of such corporation may

 

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prescribe, or, in the absence of such provision, as the board of directors of such corporation may determine.

 

Persons holding stock in a fiduciary capacity shall be entitled to vote the shares so held.  A stockholder whose shares are pledged shall be entitled to vote such shares unless in the transfer by the pledgor on the books of the Corporation the pledgor has expressly empowered the pledgee to vote thereon, in which case only the pledgee, or his or her proxy, may represent such shares and vote thereon.

 

Treasury shares and shares belonging to another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held by this Corporation, shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the presence of a quorum.

 

Section 14.                                   Voting on Certain Transactions.  A merger, consolidation or dissolution of the Corporation or the sale, lease or exchange of all or substantially all of the Corporation’s assets shall be subject to the approval of stockholders of the Corporation by the affirmative vote of the holders of a majority of the outstanding shares of the Corporation entitled to vote except as otherwise required by the Certificate of Incorporation of the Corporation.

 

Section 15.                                   Inspectors of Elections.  Preceding any meeting of the stockholders, the Chief Executive Officer shall appoint one or more persons to act as inspectors, and may designate one or more alternate inspectors to replace any inspector who fails to act.  If no inspector or alternate is able to act, the presiding officer at the meeting shall appoint one or more inspectors to act at the meeting.  Each inspector, before entering upon the discharge of the duties of inspector, shall take and sign an oath faithfully to execute the duties of inspector with strict impartiality and according to the best of such inspector’s ability.  The inspectors shall:  (a) ascertain the number of shares outstanding and the voting power of each, (b) determine the shares represented at a meeting and the validity of proxies and ballots; (c) count all votes and ballots; (d) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors; and (e) certify their determination of the number of shares represented at the meeting, and their count of all votes and ballots.  The inspectors may appoint or retain other persons or entities to assist in the performance of the duties of the inspectors.

 

In determining the validity and counting of proxies and ballots, the inspectors shall be limited to an examination of the proxies, any envelopes submitted with those proxies, any information provided in accordance with Section 11 of this Article, ballots and the regular books and records of the Corporation.  The inspectors may consider other reliable information for the limited purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the holder of a proxy is authorized by the record owner to cast or more votes than the stockholder holds of record.  If the inspectors consider other reliable information for the limited purpose permitted in this Section, the inspectors, at the time they make their certification pursuant to clause (e) of this Section, shall specify the precise information considered by them, the person or persons from whom they obtained the information, when the information was obtained, the means by which the information was obtained, and the basis for the inspectors’ belief that such information is accurate and reliable.

 

Section 16.                                   Opening and Closing of Polls.  The date and time for the opening and the closing of the polls for each matter upon which stockholders will vote at a meeting of stockholders shall be announced at the meeting by the presiding officer of the meeting.  The inspectors shall be prohibited from accepting any ballots, proxies or votes, nor any revocations thereof or changes thereto, after the closing of the polls, unless the Court of Chancery upon application by a stockholder shall determine otherwise.

 

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ARTICLE III.

BOARD OF DIRECTORS

 

Section 1.                                          General Powers.  The business and affairs of the Corporation shall be managed by its Board of Directors.

 

Section 2.                                          Number, Tenure and Qualifications.  So long as the stock of the Corporation is owned by one stockholder, the number of directors shall be three.  Effective immediately when there is more than one stockholder, the following provisions shall be effective: The number of directors shall be fixed from time to time by a resolution of a majority of the existing directors of the Corporation.  Subject to the provisions of the next paragraph, the number of directors so fixed shall be elected at the annual meeting of stockholders of the Corporation and each director so elected shall serve until the next annual meeting and until his or her successor shall be elected and shall qualify.  Each director shall have beneficial ownership of shares of Protective Life Corporation Common Stock (director qualifying shares) within sixty (60) days after (a) initially being elected to the Board or (b) being re-elected to the Board after a break in service as a director of the Corporation.  Vacancies occurring in the Board of Directors by reason of the death, resignation or removal of any director may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum of the Board of Directors.  A director elected to fill a vacancy shall be elected to serve until the next annual meeting of the stockholders.

 

Any outside director who ceases to hold the same or higher position with the business or professional organization with which such person was associated when first elected a director shall automatically be deemed to have offered his or her resignation as a director of the Corporation, and the Corporate Governance and Nominating Committee shall make a recommendation to the Board of Directors with respect to such resignation; and, if the deemed offer to resign is accepted by the Board of Directors, such resignation shall be effective as of the next annual meeting of shareholders.

 

In the event of any increase in the number of directors, the additional offices so created may be filled by the affirmative vote of a majority of the directors in office at the time such vote is taken.  Directors elected to fill such additional offices shall serve until the next annual meeting of stockholders and until their successors shall have been elected and shall qualify.

 

An inside director is one who is or has been in the full-time employment of the Corporation or any of its subsidiaries, and an outside director is any other director.  Any outside director, and any inside director who is or has been the Chief Executive Officer of the Corporation, shall be eligible for reelection until that director has reached his or her 72nd birthday but not thereafter.  No other inside director shall be eligible for reelection after his or her retirement from full-time employment with the Corporation or any of its subsidiaries.

 

Section 3.                                          Regular Meetings.  A regular meeting of the Board of Directors shall be held without other notice than this Bylaw immediately after, and at the same place as, the annual meeting of stockholders, for election of officers and the transaction of such other business as may come before the meeting.  Other regular meetings of the Board of Directors, of which there shall be at least three each calendar year, shall be held on dates to be fixed by the Board of Directors, and at least two business days notice of the date, time and place of each such meeting shall be given to each director.

 

At all regular and special Board meetings the Chairman of the Board and Chief Executive Officer shall preside and in his absence, the President shall preside or, in absence of the President, the Executive Vice President shall preside.

 

Section 4.                                          Special Meetings.  Special meetings of the Board of Directors may be called by the Chairman of the Board, the Chief Executive Officer, an Executive Committee or any four members of the

 

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Board of Directors, and at least two business days notice of the date, time and place of any such special meeting, and of the business to be transacted at, or the purpose of, the meeting shall be given to each director.

 

Section 5.                                          Notice of Meetings; Waiver of Notice.  Notice of any regular or special meeting shall be given by notice delivered personally or mailed to each director at his business or home address, or by facsimile transmission, telegram, electronic mail or other electronic transmission.  If mailed, such notice shall be deemed to be delivered two days after deposited in the United States mail so addressed, with postage thereon prepaid.  If given by telegram, such notice shall be deemed to be delivered one day after the telegram is delivered to the telegraph company.  If given by facsimile transmission, electronic mail or other electronic transmission, such notice shall be deemed to be delivered when transmitted; provided that no such notice with respect to a special meeting shall be deemed delivered until receipt is confirmed.

 

Whenever notice is required to be given under any provision of law, the Certificate of Incorporation, or these Bylaws, a written waiver, signed by the director entitled to notice, or a waiver by electronic transmission by the director entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice.  Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except when the director attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.  Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the directors need by specified in a written waiver of notice or any waiver by electronic transmission unless so required by the Certificate of Incorporation or these Bylaws.

 

Section 6.                                          Quorum.  A majority of the whole number of directors constituting the Board shall constitute a quorum for the transaction of business at any meeting of the Board of Directors (but if less than such majority is present at a meeting, a majority of the directors present may adjourn the meeting from time to time without further notice) and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the Board of Directors, except as may be otherwise specifically provided by the Certificate of Incorporation or by these Bylaws.  Notwithstanding the foregoing provisions of this section to the contrary, in the event of an emergency caused by an enemy attack, at each meeting of the Board during such emergency the presence of one-third of the total number of directors, but in any event not less than two directors, shall constitute a quorum and be sufficient for the transaction of business.

 

Section 7.                                          Compensation.  Directors, by resolution of the Board of Directors, may be compensated as directors.  Such compensation may include: a fixed salary or retainer; a fixed sum for attendance at each meeting of the Board of Directors; expenses for attendance at such meetings; or any combination of the foregoing.  Members of special and standing committees of the Board, by resolution of the Board, may be compensated in like manner.  Notwithstanding the foregoing, no director who is an officer or employee of the Corporation or any of its direct or indirect subsidiaries shall receive any compensation or fees for serving as a director or a committee member.

 

Section 8.                                          Committees.  The Board of Directors, by resolution adopted by a majority of the entire Board, may designate one or more committees, including an Executive Committee, each such committee to consist of three or more directors of the Corporation.  Any such committee, to the extent provided in a resolution of the Board of Directors, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to amending the Certificate of Incorporation, adopting an agreement of merger or consolidation, recommending to the stockholders the sale, lease or exchange of all or substantially all of the Corporation’s property and assets, recommending to the stockholders a dissolution of the Corporation or a revocation of a dissolution, or amending the Bylaws of the

 

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Corporation.  Any such committee, to the extent provided in a resolution of the Board of Directors, shall have the power and authority to declare a dividend and to authorize the issuance of stock of the Corporation.  The Board of Directors may designate one or more directors of the Corporation as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee.  Vacancies in such committees shall be filled by the Board of Directors; provided, however, that in the absence or disqualification of a member of a committee, the members thereof present at any meeting and not disqualified from voting, whether or not he, she or they constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any such absent or disqualified member.  Except as otherwise provided in a resolution adopted by the Board of Directors, a majority of all members of a committee shall constitute a quorum for the transaction of business.

 

Section 9.                                          Reliance upon Books, Reports and Records.  Each director, each member of a committee designated by the Board of Directors, and each officer of the Corporation shall, in the performance of his or her duties, be fully protected in relying in good faith upon the records of the Corporation and upon such information, opinions, reports or statements presented to the Corporation by any of the Corporation’s officers or employees, or committees of the Board of Directors, or by any other person as to matters the director, committee member or officer reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Corporation.

 

Section 10.                                   Action by Telephonic Communication.  Any one or more directors may participate in a meeting of the Board or a committee thereof by means of conference telephone or similar communications equipment by means of which all persons participating can hear each other, and such participation shall constitute presence and attendance at the meeting for all purposes of this Article.

 

ARTICLE IV.

OFFICERS

 

Section 1.                                          Officers Chosen by Board.  Officers of the Corporation shall be elected by the Board of Directors at its first meeting after the annual meeting of stockholders, and shall consist of a Chairman of the Board, a President, one or more Vice Presidents (one or more of whom may be designated by the Board of Directors as Executive Vice President or Senior Vice President), a Treasurer, a Secretary, and may include a Vice Chairman of the Board of Directors and such other officer as the Board of Directors may prescribe.  All such officers shall be elected for a term of one year and until their successors are elected and qualified, but they shall, however, be subject to removal by the Board of Directors at its pleasure.  Such officers shall perform such duties and exercise such powers as are conferred by the Board of Directors or as are conferred herein.  The Board of Directors may designate one of such elected officers the Chief Executive Officer of the Corporation, and in the absence of such designation, the Chairman of the Board shall be the Chief Executive Officer.  The Board of Directors or the Chief Executive Officer, by and with the consent and approval of the Board of Directors or of an Executive Committee, may appoint such other officers and agents as, in its, his or her discretion, are required for the proper transaction of the Corporation’s business.  Any two or more offices may be held by the same person.

 

The Board of Directors shall be and is hereby authorized to adopt and amend from time to time Bylaws to be effective in the event of an emergency caused by an enemy attack, dealing with or making provisions during such emergency for continuity of management, succession to the authority and duties of officers, vacancies in office, alternative offices or other matters deemed necessary or desirable to enable the Corporation to carry on its business and affairs.

 

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Section 2.                                          Removal.  The Chief Executive Officer, Chairman of the Board, Vice Chairman of the Board or President may be removed, with or without cause, at any time by action of the Board of Directors.  Any other officer elected by the Board of Directors may be removed, with or without cause, at any time, by action of the Board of Directors or an Executive Committee.  Any other officer, agent or employee, including any officer, agent or employee appointed by the Board of Directors, may be removed, with or without cause, at any time by the Board of Directors, the Chief Executive Officer, an Executive Committee, or the superior executive officer to whom authority to so remove has been delegated by these Bylaws or by the Chief Executive Officer.

 

Section 3.                                          Chairman and Vice Chairman of the Board.  The Chairman and Vice Chairman of the Board of Directors, respectively, shall have and may exercise authority to act for the Corporation in all matters to the extent that such authority is delegated to such officer by the Board of Directors or an Executive Committee, and in all other matters to the extent provided by these Bylaws.  So long as the Chairman of the Board is the Chief Executive Officer, he or she shall, subject to the control of the Board of Directors, have general management and control of the affairs and business of the Corporation and shall keep the Board of Directors fully informed concerning the affairs and business of the Corporation.  The Chief Executive Officer shall perform all other duties commonly incident to his or her office.  The Board of Directors may by resolution designate the officer of the Corporation who, in the event of the death, unavailability or incapacity of the Chief Executive Officer, shall perform the duties of the Chief Executive Officer until the Board of Directors shall designate another person to perform such duties and absent such designation, the chief operating officer shall in such event perform the duties of Chief Executive Officer.

 

Section 4.                                          President.  Subject to the control of the Board of Directors and the Chief Executive Officer, the President shall have general management and control of the affairs and business of the Corporation, shall be its chief operating officer, and shall perform all other duties and exercise all other powers commonly incident to his or her office, or which are or may at any time be authorized or required by law.

 

Section 5.                                          Vice Presidents.  Each Vice President shall have powers and perform such duties as shall from time to time be assigned to him by these Bylaws or by the Board of Directors and shall have and may exercise such powers as may from time to time be assigned to him by the Chief Executive Officer.

 

Section 6.                                          Other Authority of Officers.  The Chairman of the Board of Directors, Vice Chairman of the Board of Directors and the President may sign and execute all authorized bonds, contracts or other obligations in the name of the Corporation, and with the Secretary or an Assistant Secretary, may sign all certificates of shares of the capital stock of the Corporation, and do and perform such other acts and things as may from time to time be assigned to each of them by the Board of Directors.  The Chief Executive Officer, the President, the Treasurer or such other officers as are authorized by the Board of Directors may enter into contracts in the name of the corporation or sell and convey any real estate or securities now or hereafter belonging to the Corporation and execute any deeds or written instruments of transfer necessary to convey good title thereto and each of the foregoing officers, or the Secretary or the Treasurer of the Corporation, is authorized and empowered to satisfy and discharge of record any mortgage or deed of trust now or hereafter of record in which the Corporation is a grantee or of which it is the owner, and any such satisfaction and discharge heretofore or hereafter so entered by any such officer shall be valid and in all respects binding on the Corporation.

 

Section 7.                                          Secretary.  The Secretary shall attend all meetings of the stockholders, and record all votes and the minutes of all proceedings in a book to be kept for the purpose, and shall perform like duties for the Board and its committees as required.  He or she shall give, or cause to be given, notice of all meetings of the stockholders and of the Board of Directors.  He or she shall record all transfers of stock, and cancel and preserve all certificates of stock transferred, and shall keep a record, alphabetically

 

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arranged, of all persons who are stockholders of the Corporation, showing their places of residence and the number of shares of stock held by them respectively.  The Secretary shall also be the transfer agent of the Corporation for the transfer of all certificates of stock ordered by the Board of Directors, and shall affix the seal of the Corporation to all certificates of stock or other instruments requiring the seal.  He or she shall keep such other books and perform such other duties as may be assigned to him or her from time to time.  The Board of Directors may designate a bank or trust company as transfer agent for the Corporation stock, in which case such transfer agent shall perform all duties above set forth relative to transfer of such stock.

 

Section 8.                                          Treasurer.  The Treasurer shall have custody of all the funds and securities of the Corporation, and shall perform such duties as may from time to time be assigned to him by the Board of Directors or the Chief Executive Officer.

 

ARTICLE V.

CERTIFICATES FOR SHARES AND THEIR TRANSFER

 

Section 1.                                          Certificates for Shares.  The Certificates for shares of the capital stock of the Corporation shall be in such form as is prescribed by law and approved by the Board of Directors.

 

Section 2.                                          Lost, Stolen, or Destroyed Certificates.  Any person claiming a stock certificate in lieu of one alleged to have been lost, stolen or destroyed shall give the Corporation or its agents an affidavit as to his or her ownership of the certificate and of the facts which go to prove that it has been lost, stolen or destroyed.  If required by the Secretary, he or she also shall give the Corporation a bond, in such form as may be approved by the Secretary, sufficient to indemnify the Corporation against any claim that may be made against it or on account of the alleged loss, theft or destruction of the certificate or the issuance of a new certificate.

 

Section 3.                                          Transfer of Shares.  Shares of the capital stock of the Corporation shall be transferred on the books of the Corporation by the holder thereof in person or by his or her attorney duly authorized in writing, upon surrender and cancellation of certificates for the number of shares to be transferred, except as provided in the preceding section.  Books for the transfer of shares of the capital stock shall be kept by the Corporation or by one or more transfer agents appointed by it.

 

Section 4.                                          Regulations.  The Board of Directors shall have power and authority to make such rules and regulations as it may deem expedient concerning the issue, transfer and registration of certificates for shares of the capital stock of the Corporation.

 

ARTICLE VI.

FISCAL YEAR

 

The fiscal year of the Corporation shall begin on the 1st day of January and end on the 31st day of December in each year.

 

ARTICLE VII.

DIVIDENDS

 

The Board of Directors at any regular or special meeting may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and the Certificate of Incorporation.

 

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ARTICLE VIII.

SEAL

 

The Board of Directors shall provide a corporate seal which shall have inscribed thereon the name of the Corporation and the state of incorporation and the words, “Corporate Seal.”

 

ARTICLE IX.

MISCELLANEOUS PROVISIONS

 

Section 1.                                          Action Without a Meeting.  Nothing contained in these Bylaws or in the Certificate of Incorporation of the Corporation shall be deemed to restrict the power of the Board of Directors or members of any of its committees to take any action required or permitted to be taken by them, without a meeting, in accordance with applicable provisions of law.

 

Section 2.                                          Waivers of Notice.  Whenever notice is required to be given under any provision of law, the Certificate of Incorporation, or these Bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice.

 

Section 3.                                          Forum for Adjudication of Disputes.  Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (a) any derivative action or proceeding brought on behalf of the Corporation; (b) any action asserting a claim of breach of fiduciary duty owed by any director or officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders; (c) any action asserting a claim against the Corporation or any director or officer or other employee of the Corporation arising pursuant to any provision of the General Corporation Law of the State of Delaware, the Certificate of Incorporation or these Bylaws (in each case, as may be amended from time to time); or (d) any action asserting a claim against the Corporation or any director or officer or other employee of the Corporation governed by the internal affairs doctrine, shall be in the Court of Chancery of the State of Delaware, or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the Superior Court of the State of Delaware, or, if the Superior Court of the State of Delaware does not have jurisdiction, the United States District Court for the District of Delaware.  Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to (i) the provisions of this Article IX, Section 3 and (ii) the personal jurisdiction of the Court of Chancery of the State of Delaware, or, if the Court of Chancery of the State of Delaware does not have jurisdiction, the Superior Court of the State of Delaware, or, if the Superior Court of the State of Delaware does not have jurisdiction, the United States District Court for the District of Delaware in any proceeding brought to enjoin any action by that person or entity that is inconsistent with the exclusive jurisdiction provided for in this Section.  Failure to enforce the foregoing provisions would cause the Corporation irreparable harm and the Corporation shall be entitled to equitable relief, including injunctive relief and specific performance, to enforce the foregoing provisions.

 

ARTICLE X.

AMENDMENTS

 

The Bylaws and any amendments thereof may be altered, amended, changed or repealed, or new Bylaws may be adopted, by the Board of Directors (a) at any regular or special meeting by the affirmative vote of all the members of the Board, or (b) at any regular or special meeting of the Board, the notice of which shall have stated the amendment of the Bylaws as one of the purposes of the meeting and set forth a

 

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summary of the proposed amendment or amendments, by the affirmative vote of a majority of all the members of said Board; but these Bylaws and any amendments thereof, including Bylaws adopted by the Board of Directors, may be altered, amended, changed or repealed and other Bylaws may be enacted by the stockholders at any annual meeting or at any special meeting provided that notice of such proposed alteration, amendment, change, repeal or enactment shall have been given in the notice of the meeting.  Provided, however, that nothing herein contained may be construed to conflict with restrictions set forth in the Certificate of Incorporation of the Corporation.

 

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