Document:

FY2002 10K Exhibit 10.4

EXHIBIT 10.4

THIS LEASE (hereinafter "Agreement" or "Lease"), is made and
entered into as of this 1st day of June, 2002, by and between SCIENTIFIC
TECHNOLOGY, INC., a California corporation (hereinafter referred to as
"Landlord") and SCIENTIFIC TECHNOLOGIES, INC., Automation Sensors Division, an
Oregon corporation (hereinafter referred to as "Tenant").

 

RECITALS:

A. Landlord is the owner of that certain real property more fully
described on Exhibit "A", attached hereto and by this reference incorporated
herein.

B. The Property is located at 1025 W. 1700 N., Logan, Cache County, Utah
and consists of ground and improvements, including a newly constructed building
containing 25,000 square feet. The land and improvements are collectively called
the "Property" herein.

C.Tenant is desirous of leasing the Property from Landlord, and
Landlord is desirous of leasing the Property to the Tenant.

D. Landlord and Tenant have communicated to one another the above-
described circumstances, and have heretofore negotiated the terms of this
Agreement and desire to memorialize the same by this instrument.

NOW, THEREFORE, in consideration of the above premises, the covenants and
promises hereinafter set forth, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant
hereby agree as follows:

 

ARTICLE I - LEASE

1.01. Lease of Property. In consideration of the rents, covenants
and agreements hereinafter set forth, Landlord hereby leases to Tenant and
Tenant hereby rents from Landlord, the Property, together with all improvements
and fixtures presently associated therewith. 

1.02. Term. The term of this Lease shall be for a total period of
five (5) years, commencing on the date of this Agreement and ending five years
from the date hereof, plus any additional periods that the parties may agree
upon pursuant to Paragraph 1.03, below.

1.03. Additional Periods. Tenant and Landlord shall have the right
to negotiate for additional periods or extensions of this Lease on terms
agreeable to the parties. 

1.04. Lease Payments. Tenant agrees to pay, and Landlord agrees to
accept as lease payments $10,500.00 on June 1, 2002 and $10,500.00 on the 1st
day of each month thereafter throughout the lease term. This represents
$.42/square foot/month based on the 25,000 square foot building.

1.05. Rent Increase. The monthly rent described in paragraph 1.04
shall be increased, effective on the first day of the next month, by the
percentage increase, if any, which has occurred in the Consumer Price Index
between June 1, 2002 and November 30, 2004. Such percentage increase shall be
determined by using the Consumer Price Index (CPI) for All Urban Consumers as
issued by the Bureau of Labor Statistics of the United States Department of
Labor, or its successor, published for "All Items" "U.S. City Average" (1982-84
= 100). The index numbers to be used for the purposes of this Section shall be
those in effect for the dates described above and if such Index shall be
converted to a different standard reference base or shall otherwise be revised,
the percentage increase shall be made with the use of such conversion factors,
formula or tables as may be published for such purpose. Each one (point) percent
(1%) in the CPI shall result in a one percent (1%) increase in the rental amount
due.

1.06. Delinquent Payment. On any payment due hereunder
which is not made on the due date thereof or within fifteen (15) days
thereafter, the Tenant agrees to pay a late charge of five percent (5%) of the
unpaid amount of such installment to cover the additional expense of handling
and processing such delinquent payment or payments. Said late charge shall be
paid at the time the delinquent amount is paid in addition to and as a condition
to Landlord accepting such delinquent payment. In addition, such unpaid amount
shall bear interest at the rate of one percent (1%) per month from the date
delinquent until paid.

ARTICLE II - RIGHTS AND DUTIES OF TENANT

2.01. Use Of The Leased Property. 

a. Tenant may use the Property for any legal use so long as such use does
not waste or pollute the Property.

b. The Tenant shall not do or permit anything to be done in or about, or
bring or keep anything in the Property which will, in any way or to any extent
adversely affect any fire, liability or other insurance policy carried with
respect to the building, conflict with or violate any law, statute, ordinance,
rule, regulation or requirement of any governmental unit, agency or authority
(whether existing or enacted as promulgated in the future, known or unknown,
foreseen or unforeseen) or damage the structural soundness of the Building, or
any part thereof.

c. Tenant will keep the Property and every part thereof in a clean, neat,
and orderly condition, free of objectionable noise, odors, or nuisances, will in
all respects and at all times fully comply with all health and policy
regulations, and will not suffer, permit, or commit any waste. 

2.02. Improvements by Tenant. All repairs to and improvements on
the Property shall be made by the Tenant at the Tenant's expense. The Tenant
shall not make any alterations or improvements in or to the Property without the
prior written consent of the Landlord, which consent shall not be unreasonably
withheld. All fixed alterations and improvements made or added to the Property,
such as carpets, cabinets and other attached equipment and fixtures (excluding
trade fixtures, phone system and related accessories and other equipment used in
Tenant's business or subleased) shall belong to the Landlord at the expiration
or termination of this Lease. 

2.03. Repair and Maintenance. 

a. Subject to 2.03e below, tenant hereby accepts the Property in the
condition it is in at the beginning of this Lease. Tenant shall at all times
during the term hereof, and any extensions thereof, keep the Property in good
repair and condition, ordinary wear and tear excepted. 

b. The Landlord shall not be liable for any damage or injury by water,
which may be sustained by Tenant or other person or for any other damage or
injury resulting from the carelessness, negligence, or improper conduct on the
part of any other Tenant or agents, or employees, or by reason of the breakage,
leakage or obstruction of the water or sewer, pipes, or other leakage in or
about the said building or caused by weight of snow or ice or any other damage
caused by the elements.

c. Except as specifically otherwise provided, Tenant is responsible for
all upkeep on the Property and is solely responsible for glass breakage,
regardless of cause. Tenant must provide all snow removal.

d. Tenant agrees to keep and maintain at its own expense in good
condition and repair all heating, air conditioning, plumbing and electrical
services and equipment.

e. The parties acknowledge that with a new building there may be some
"punch list" items or other problems requiring correction. Landlord agrees to
diligently complete and/or remedy or correct any such problems so that the
building and its services operate as intended.

2.04.  Utility Costs and License.  Tenant
agrees to pay all utility charges, including, but not limited to, electricity,
gas, water, and telephone, and to pay for fire and general hazard insurance on
all property belonging to Tenant on the Property and to pay all license fees and
other costs of operation of its business. In the event of a default by the
Tenant in this covenant, the Landlord shall have the right to pay and discharge
any obligations on which Tenant remains in default for more than thirty (30)
days, and the amount so paid by the Landlord shall be payable to Landlord on
demand and shall bear interest from the date paid until reimbursed to the
Landlord at the rate of one percent (1%) per month. This is an optional remedy
with Landlord, and the election of such remedy by Landlord shall not constitute
a waiver by Landlord of Landlord's rights to proceed against Tenant for default
as elsewhere herein provided. In the event Landlord elects this remedy, the act
of default by Tenant shall be Tenant's failure to pay on demand.

2.05. Assignment and Subletting. Tenant may sublet all or any part
of the Property for any legal use as permitted in this Lease, with the prior
written consent of Landlord. Tenant must provide written notice to Landlord of
any subtenants, the nature of their use and duration of their tenancy within ten
(10) days of signing a sublease or granting possession, whichever first
occurs.

2.06. Regulations. Tenant covenants and agrees to make no unlawful
use of the Property and to comply with all of the statutes, ordinances, rules,
orders, regulations and requirements of federal, state and municipal or other
governmental authorities, and to acquire, at its own expense, all necessary
licenses and permits in connection with the Property and Tenant's business
activities thereon.

2.07. Insurance and Indemnity.

a. Landlord shall not at any time or to any extent whatsoever be liable,
responsible, or in any way accountable for any loss, injury, death, or damage to
persons or property, from any cause or causes whatsoever except for Landlord's
or Landlord's agent's negligence, which at any time may be suffered or sustained
by Tenant or by any person whosoever at any time using, occupying or visiting
the Property or be in, on or about the same or the sidewalks and driveways
adjacent and Tenant agrees to indemnify and save Landlord harmless from any and
all claims, liabilities, losses, damages, costs, and expenses whatsoever arising
out of any such loss, injury, death, or damage.

b. Tenant shall, at all times during the term of this Agreement, maintain
in full force and effect, and pay all premiums for, public liability insurance
with a reputable insurance company or companies acceptable to Landlord covering
Tenant's activities on the Property. The general liability limits of said policy
or policies shall not be less than $1,000,000.00 per person and per occurrence.
Said insurance shall name the Landlord as an additional insured. 

c. All insurance policies of Tenant shall be issued by companies and in
forms satisfactory to Landlord and shall expressly provide that the insurance
company shall notify the Landlord in writing at least thirty (30) days prior to
any lapse or cancellation. Each such policy or a duplicate or appropriate
evidence shall be delivered to Landlord. Tenant agrees if Tenant does not
procure such insurance and keep the same in full force and effect, Landlord, at
its option and subject to its right of reimbursement, may take out the necessary
insurance and pay the premium. Tenant waives its right of subrogation against
Landlord for any reason whatsoever, and any insurance policies herein required
to be procured by Tenant shall contain an express waiver of any right of
subrogation by the insurer against Landlord. 

d.Tenant shall be responsible to provide fire and casualty insurance
on Tenant's personal property.

e. Tenant shall procure insurance insuring the Landlord against loss or
damage to the Property, and improvements and fixtures belonging to Landlord by
reason of fire and other casualties (Broad Form) with a qualified insurance
company or companies qualified in an amount and of such coverage as are
satisfactory to and approved by Landlord. The proceeds of such insurance in case
of loss or damage shall be paid to Landlord to be applied on account of the
obligation of Landlord to repair and/or rebuild the building pursuant to Article
5.03. Any proceeds not required for such purpose shall be the sole property of
Landlord.

2.08. Subordination. Upon request of Landlord, Tenant will
subordinate its rights to the lien of any mortgage or mortgages, or lien or
other security interest resulting from any other method of financing or
refinancing, now or hereafter in force against the land and/or building. The
provisions of this paragraph notwithstanding, so long as Tenant is not in
default, this Lease shall remain in full force and effect for the full term and
shall not be terminated as a result of any foreclosure or sale or transfer in
lieu of such proceedings pursuant to a mortgage or other instrument to which
Tenant has subordinated its right.

2.09. Amendment. Tenant agrees that from time to time it shall, if
so requested by Landlord and if doing so will not substantially and adversely
affect Tenant's economic interests under this Lease, join with Landlord in
amending the terms of this Lease so as to meet the reasonable needs or
requirements of any lender which is considering furnishing or which has
furnished any of the financing for the property.

2.10. Tenant's Certificate. Tenant shall, within fifteen (15) days
after the date of this Lease, and thereafter at Landlord's request, execute and
deliver to Landlord a written declaration which shall: (1) ratify this Lease;
(2) express the beginning date and termination date hereof; (3) certify that
this Lease is in full force and effect and has not been assigned, modified,
supplemented or amended (except by such writings as shall be stated); (4) state
that all conditions under this Lease to be performed by Landlord have been
satisfied, or state which conditions remain unsatisfied; (5) state that there
are no defenses or offsets against the enforcement of this Lease by the
Landlord, or stating those claimed by Tenant; (6) state the amount of advance
rental, if any, (or none if such is the case) paid by Tenant; (7) state the date
to which rental has been paid; (8) state the amount of security deposited with
Landlord; and (9) state such other information as Landlord may reasonably
request. Landlord's mortgage lenders and/or purchasers shall be entitled to rely
upon such declaration.

2.11. Landlord's Certificate. Landlord shall, within fifteen (15)
days after the date of this Lease, and thereafter at Tenant's request, execute
and deliver to Tenant a written declaration which shall: (1) ratify this Lease;
(2) express the beginning date and termination date hereof; (3) certify that
this Lease is in full force and effect and has not been assigned, modified,
supplemented or amended (except by such writings as shall be stated); (4) state
that all conditions under this Lease to be performed by Tenant have been
satisfied, or state which conditions remain unsatisfied; (5) state that there
are no defenses or offsets against the enforcement of this Lease by the Tenant,
or stating those claimed by Landlord; (6) state the amount of advance rental, if
any, (or none if such is the case) paid by Tenant; (7) state the date to which
rental has been paid; (8) state the amount of security deposited with Landlord;
and (9) state such other information as Tenant may reasonably request. Tenant's
lenders and/or purchasers shall be entitled to rely upon such declaration.

2.12. Attornment. In the event of the sale or assignment of
Landlord's interest in the Property, or in the event of any proceedings brought
for the foreclosure of, or in the event of exercise of the power of sale under,
any mortgage or other security instrument made by Landlord covering the
Property, Tenant shall attorn to the assignee or purchaser and recognize such
purchaser as Landlord under this Lease.

2.13. Hazardous Substances. Tenant shall not cause or permit any
Hazardous Substances to be used, stored, generated or disposed of in, on or
about the Property. Tenant shall indemnify and hold harmless Landlord from any
and all claims, damage, fines, judgments, penalties, costs, expenses or
liabilities (including, without limitation, any and all sums paid for settlement
of claims, attorneys' fees, consultant and expert fees) arising during or after
the Term, if any, from or in connection with the use, storage, generation or
disposal of hazardous substances in, on or about the Property. The
indemnification contained herein shall survive any expiration or termination of
the Term. As used herein, "Hazardous Substances" means any substance which is
toxic, ignitable, reactive, or corrosive or which is regulated by Environmental
Laws.

 

ARTICLE III - EMINENT DOMAIN

3.01. Total Taking. If the whole of the Property shall be
taken or condemned by any competent authority for any public use or purpose or
if so much thereof shall be taken so that Tenant would be unable to continue
normal business operations, then the Lease term hereby granted shall cease on
the day prior to the vesting of title in such authority and lease payments
hereunder shall be paid and adjusted as of that date; any prepaid rental shall
be prorated as of the date of such termination and returned to Tenant.

3.02. Partial Taking. If a portion of the Property shall be taken
and, as a result thereof, there shall be such a major change in the character of
the Property as to prevent Tenant from using the same in substantially the same
manner as theretofore used, then and in that event Tenant, within fifteen (15)
days after the date of such vesting of title, may either cancel and terminate
this Agreement as of the date when that part of the Property so taken shall be
required for such public purpose, or said Tenant may continue to occupy the
remaining portion. In the event Tenant shall remain in possession and occupancy
of the remaining portion of the Property, all the terms and conditions of this
Agreement shall remain in full force and effect with respect to such remaining
portion, except that the lease payments reserved to be paid hereunder shall be
equitably adjusted according to the amount and value of such remaining space;
and provided, further, that Landlord shall, at Landlord's own expense, promptly
and with all reasonable diligence, do such work as to make the remainder of the
Property usable by Tenant and this Agreement shall continue for the balance of
its term, subject to the terms and conditions herein stated. 

3.03. Condemnation Award. The entire award of damages or
compensation for the Property taken via eminent domain, or the amount paid
pursuant to private purchase in lieu thereof, whether such condemnation or sale
be total or partial, shall belong to Landlord, except that damages awarded for
any loss of Tenant's shall belong to Tenant. Tenant may interpose and prosecute,
in any condemnation proceeding, a claim for the value of any trade fixtures
installed in the Property by Tenant, and in the case of a partial condemnation
of the Property, the cost, loss or damages sustained by Tenant as the result of
the alterations, modifications or repairs which may reasonably be required by
Tenant in order to place the remaining portion of the Property, not so
condemned, in a suitable condition for Tenant's further occupancy. 

 

ARTICLE IV - EVENTS OF DEFAULT; REMEDIES

4.01. Default by Tenant. Upon the occurrence of any of the
following events Landlord shall have the remedies set forth in paragraph
4.02.

A. Tenant fails to pay any rental or any other sum due hereunder within
fifteen (15) days after the same shall be due.

B. Tenant fails to perform any other term, condition, or covenant to be
performed by it pursuant to this Agreement within thirty (30) days after the
written notice of such default shall have been given to Tenant by Landlord.

C. Tenant shall become bankrupt or insolvent or file any debtor
proceedings or have taken against such party in any court pursuant to state or
federal statute, a petition in bankruptcy or insolvency, reorganization, or
appointment of a receiver or trustee; and such proceeding shall not be
dismissed, discontinued or vacated within thirty (30) days from the filing or
appointment; or Tenant suffers this Lease to be taken under writ of
restitution.

D. The doing, or permitting to be done, by Tenant of any act which
creates a mechanic's lien or claim against the Ground or Building on the
Property if not released or otherwise provided for by indemnification
satisfactory to Landlord within thirty (30) days after written notice of such
from Landlord. 

4.02.  Remedies on Default.  

a. If Tenant shall fail to cure any default under
paragraph 4.01 within the time provided therein, or if a receiver be appointed
for Tenant, or if Tenant for any reason be insolvent, or if a Tenant vacates or
abandons the leased property, then Landlord, besides other rights or remedies it
may have, shall have the immediate right of re-entry and may remove all persons
and property from the property without liability to any person for damages
sustained by reason of such removal. Such property may be removed and stored in
a public warehouse or elsewhere at the cost of and for the account of
Tenant;

b. Should Landlord elect to re-enter as herein provided,
or should it take possession pursuant to legal proceedings or pursuant to any
notice provided for by law, it may either terminate this Lease to the same
extent and with all the legal incidents as if the term had expired by efflux of
time, or it may from time to time relet the property for such term or terms
(which may be for a term extending beyond the term of this Lease) and at such
rental and upon such other terms and conditions as Landlord, in its sole
discretion, may deem advisable, with the right to make alterations and repairs
to said Property; 

c. Upon such re-letting (1) Tenant shall be immediately
liable to pay to Landlord, in addition to any rent or other sums then due and
unpaid hereunder, the cost of expense of such re-letting and of such reasonable
alterations and repairs incurred by Landlord and the amount, if any, by which
the rent reserved in this Lease for the period of such re-letting (up to but not
beyond the term of this Lease) exceeds the sum agreed to be paid as rent for the
property for such period on such reletting; or (2) at the option of Landlord,
rents received by Landlord from such re-letting shall be applied first to the
payment of any indebtedness other than rent due hereunder from Tenant to
Landlord; second to the payment of any costs and expenses of such re-letting and
of such alterations and repairs; third to the payment of rent due and unpaid
hereunder; and the residue, if any, shall be held by Landlord and applied in
payment of future rent as the same may become due and payable hereunder. If
Tenant has been credited with any rent to be received by such re-letting under
option (1) and such rent shall not be promptly paid to Landlord by the new
Tenant, during any month be less than that to be paid during that month by
Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly, or at Landlord's option the
deficiency amount may be accelerated to the end of the lease term and declared
immediately due and payable;

d. No such re-entry or taking possession of the property
by Landlord shall be construed as an election on its part to terminate this
Lease unless a written notice of such intention be given to Tenant or unless the
termination be decreed by a court of competent jurisdiction. Notwithstanding any
such re-letting without termination, Landlord may at any time thereafter elect
to terminate this Lease for such previous breach;

e. Should Landlord at any time terminate this Lease for
any breach, in addition to any other remedies it may have, it may recover from
Tenant all damages it may incur by reason of such breach, including the cost of
recovering the property and including the worth at the time of such termination
of the excess, if any, of the amount of rent and charges equivalent to rent
reserved in this Lease for the remainder of the stated term of the then
reasonable rental value of the property for the remainder of the stated term,
all of which amounts shall be immediately due and payable from Tenant to
Landlord;

 

ARTICLE V - RIGHTS AND DUTIES OF LANDLORD 

5.01. Quiet Enjoyment. Landlord warrants and represents that it
shall place and maintain Tenant in the peaceful and undisturbed possession of
the Property throughout the entire term of this Agreement (including any
extensions thereof) so long as Tenant pays the lease payments and performs all
of its covenants as specified herein. 

5.02.  Taxes and Other Assessments.  Tenant
shall pay all real property taxes and assessments of any kind and nature which
are or which may be assessed against the Property during the term of this Lease.

5.03.  Fire And Other Casualty. In the event the
building is rendered untenantable by fire or other casualty during said term so
that the same may be rebuilt within 120 days thereafter, then Landlord may
rebuild said building and the rental hereunder shall abate during such period of
rebuilding. If said rebuilding cannot be made and completed within 120 days then
Landlord or Tenant shall have the right and option to terminate this Lease. In
the event the building is rendered partially untenantable by fire or other
casualty during said term so that the same may be rebuilt within 120 days
thereafter, then Landlord shall rebuild said building and the rental hereunder
shall abate during such period of repair in the proportion that the portion of
the leased building rendered untenantable bears to the entire leased
building.

5.04. Entry by Landlord. Landlord or its agents shall have the
right to enter and inspect the Property upon reasonable notice to Tenant and at
reasonable times and in such a manner so as not to interfere with Tenant's
business, to examine the Property and to show the Property to prospective
purchasers or lessees of the Property.

 

ARTICLE VI - MISCELLANEOUS

6.01. Time. Time is and shall be of the essence of
this Lease.

6.02. Waiver. The waiver by Landlord of any breach of any term,
covenants or condition herein contained shall not be deemed to be a waiver of
such term, condition or covenant, or any subsequent breach of the same, or any
other term, covenant or condition herein contained. 

6.03. Entire Agreement. This Agreement contains the entire
Agreement between the parties, and no representations, inducements, promises or
agreements, oral or otherwise, between the parties not embodied herein shall be
of any force and effect.

6.04. Force Majeure. In the event that either party hereto shall
be delayed or hindered in, or prevented from, the performance of any act
required hereunder, by reason of strikes, lockouts, labor trouble, inability to
procure materials, failure of power, restrictive governmental laws or
regulations, riots, insurrections, war, natural disaster, or other reason of a
like nature, not the fault of the party delayed in performing work or doing acts
required under the term of this Agreement, then performance of such act shall be
excused for the period of the delay, and the period for the performance of any
such act shall be extended for a period equivalent to the period of such delay.

6.05. Delivery of Property. Tenant agrees to deliver up the
Property to Landlord at the expiration of this Agreement in as good a condition
as when the same was entered into by Tenant, reasonable wear and tear
excepted.

6.06. Default. If either party defaults in any of the covenants or
agreements contained herein, the defaulting party shall pay all costs and
expenses, including a reasonable attorney's fee, incurred by the other party in
enforcing its rights arising under this Agreement.

6.07. Notices. Any notices sent to the parties may be sent to them
at the following addresses by certified or registered mail:

Landlord: Scientific Technology, Inc.

                6550 Dumbarton Circle

                Fremont, CA 94555

Tenant: Scientific Technologies, Inc.

                Automation Sensors Division

                1025 W. 1700 N.

                Logan, UT 84321

6.08. Headings and Paragraph Numbers. Headings and paragraph
numbers have been inserted solely for convenience and reference and shall not be
construed to effect the meaning, construction of effect of this Agreement.

6.09. Invalid Provision. If any provisions of this Agreement shall
be determined to be void or unenforceable, such determination shall not effect
the validity of any remaining portion of this Agreement, and any remaining
portion shall remain in full force and effect as if this Agreement had been
executed with the invalid portion eliminated.

6.10. Binding. This Agreement shall be binding upon and inure to
the benefit of the parties hereto, their agents, successors-in-interest, assigns
and transferees.

6.11. Authority of Signatories. Each person executing this
Agreement individually and personally represents and warrants that he is duly
authorized to execute and deliver the same on behalf of the corporation for
which he is signing and that this Agreement is binding upon said corporation in
accordance with its terms.

6.12. Holdover. If Tenant shall hold over following the expiration
of the term of this Lease, such holding shall be on a month-to-month tenancy
under the terms of this Lease.

6.13. Net Lease. This Lease shall be deemed and construed to be a
net lease, and in no circumstances and under no conditions, whether now existing
or hereafter arising, or whether within or beyond the present contemplation of
the parties, shall the Landlord be required to make any payment of any kind
whatsoever or be under any obligation or liability hereunder, except as herein
expressly set forth.

 

 

Dated this 1st day of  June, 2002

LANDLORD:

SCIENTIFIC TECHNOLOGY, INC.

 

By: /s/ Joseph J. Lazlara 

 Its Executive Vice President

Dated this 1st day of  June, 2002

 

 

TENANT:

SCIENTIFIC TECHNOLOGIES, INC.

 

 

By: /s/ James M. Vella

 Its Vice PresidentARTICLES OF INCORPORATION
                                       OF
                     TOTAL SYSTEM SERVICES, INC., AS AMENDED

                                    ARTICLE I
     The name of the corporation is Total System Services, Inc.

                                   ARTICLE II
     The corporation shall have perpetual duration.

                                   ARTICLE III
     The corporation is organized pursuant to the provisions of the Georgia
Business Corporation Code.

                                   ARTICLE IV
     The corporation is a corporation for profit and is organized for the
following general purposes:

            (a)To engage in providing data processing and data transmission
       services, data bases and facilities (including data processing and data
       transmission hardware, software, documentation and operating personnel)
       for the internal operations of CB&T Bancshares, Inc., and its
       subsidiaries, as a subsidiary corporation of Columbus Bank and Trust
       Company as defined under the provisions of the Financial Institutions
       Code of Georgia;
            (b)To engage in providing data processing and transmission
       services, facilities and data bases, or access to such services,
       facilities and data bases, to others by technologically feasible means,
       where the data to be processed and transmitted is of a financial,
       banking or economic nature (specifically including bank card
       transactions), as a subsidiary corporation of Columbus Bank and Trust
       Company as defined under the provisions of the Financial Institutions
       Code of Georgia;
            (c)To engage in providing purchasing services for CB&T
       Bancshares, Inc. and its subsidiaries, including Columbus Bank and
       Trust Company, as a subsidiary corporation of Columbus Bank and Trust
       Company as defined under the provisions of the Financial Institutions
       Code of Georgia;
            (d)To purchase, own, maintain and repair personal and real
       property as may be necessary and/or desirable to carry on its
       activities relating to the foregoing in connection with its existence
       as a subsidiary corporation of Columbus Bank and Trust Company as
       defined under the provisions of the Financial Institutions Code of
       Georgia; and
            (e)To engage in any lawful business or activity relating to
       the foregoing in connection with its existence as a subsidiary
       corporation of Columbus Bank and Trust Company as defined under the
       provisions of the Financial Institutions Code of Georgia.

                                    Exhibit 4.1

                                    Article V
     The maximum number of shares of capital stock that the corporation shall be
authorized to have outstanding at any time shall be 600,000,000 shares. The sole
class of capital stock of the corporation shall be common stock of the par value
of $.10 per share; and the amount of capital with which the corporation shall
begin business shall not be less than $500. The corporation may acquire its own
shares and shares so acquired shall become treasury shares.

                                   ARTICLE VI
     No shareholder of the corporation shall have any preemptive right to
purchase, subscribe for or otherwise acquire any shares of stock of any class of
the corporation, or any series of any class, or any options, rights or warrants
to purchase any shares of any class, or any series of any class, or any other of
the securities of the corporation convertible into or carrying an option to
purchase shares of any class, or any series of any class, whether now or
hereafter authorized, and the Board of Directors of the corporation may
authorize the issuance of shares of stock of any class, and series of the same
class, or options, rights or warrants to purchase shares of any class, or any
series of any class, or any securities convertible into or carrying an option to
purchase shares of any class, or any series of any class, without offering such
issue of shares, options, rights, warrants or other securities, either in whole
or in part, to the shareholders of the corporation.

                                   ARTICLE VII
     The Board of Directors of the corporation may authorize the issuance of
bonds, debentures and other evidences of indebtedness of the corporation and may
fix all of the terms thereof, including, without limitation, the convertibility
thereof into shares of stock of the corporation of any class, or any series of
the same class.

                                  ARTICLE VIII
     The Board of Directors of the corporation shall be divided into three
classes, with each class to be as nearly equal in number as possible. At the
first annual meeting of the shareholders of the corporation, all members of the
Board of Directors shall be elected with the terms of office of directors
comprising the first class to expire at the first annual meeting of the
shareholders of the corporation after their election, the terms of office of
directors comprising the second class to expire at the second annual meeting of
the shareholders of the corporation after their election and the terms of office
of directors comprising the third class to expire at the third annual meeting of
the shareholders of the corporation after their election, and as their terms of
office expire, the directors of each class will be elected to hold office until
the third succeeding annual meeting of the shareholders of the corporation after
their election.

                                   ARTICLE IX
     The shareholder vote or action required to: (i) approve any merger or
consolidation of the corporation with or into any other corporation, and the
sale, lease, exchange or other disposition of all, or substantially all, of the
assets of the corporation to or with any other corporation, person or entity,
with respect to which the approval of the corporation's shareholders is required
by the provisions of the Georgia Business Corporation Code; (ii) fix, from time
to time, the number of members of the Board of Directors of the corporation;
(iii) remove a member of the Board of Directors of the corporation; (iv) call a
special meeting of the shareholders of the corporation; and (v) alter, delete or
rescind any provisions of the corporation's Articles of Incorporation, shall be
80% of the total issued and outstanding shares of the corporation's common stock
of the par value of $.10 per share.

                                    ARTICLE X
     The initial registered office of the corporation shall be 1000 Fifth
Avenue, Columbus, Georgia 31901, and the initial registered agent of the
corporation at said address shall be Kenneth E. Evans.

                                   ARTICLE XI
     The initial Board of Directors of the corporation shall consist of fifteen
members, whose names and addresses are as follows:

     Name                                                     Address

Richard H. Bickerstaff                               6345 Mountainview Drive
                                                     Columbus, Georgia  31904

James H. Blanchard                                   6200 Mountainview Drive
                                                     Columbus, Georgia  31904

Lovick P. Corn                                       2500 Fairway Avenue
                                                     Columbus, Georgia  31906

C.W. Curry                                           2814 Techwood Drive
                                                     Columbus, Georgia 31906

Gardiner W. Garrard, Jr.                             6551 Green Island Drive
                                                     Columbus, Georgia  31904

John P. Illges, III                                  6301 Waterford Road
                                                     Columbus, Georgia  31904

G. Gunby Jordan                                      666 Barschall Drive
                                                     Columbus, Georgia  31904

William M. McVay                                     3359 Windemere Street
                                                     Columbus, Georgia  31904

H. Lynn Page                                         421 Westmoreland Road
                                                     Columbus, Georgia 31904

Edwin W. Rothschild                                  2422 Craigston Drive
                                                     Columbus, Georgia  31906

Philip W. Tomlinson                                  6044 Seaton Drive
                                                     Columbus, Georgia  31904

William B. Turner                                    3132 Hilton Avenue
                                                     Columbus, Georgia  31906

Richard W. Ussery                                    6160 Seaton Drive
                                                     Columbus, Georgia  31905

George C. Woodruff, Jr.                              6201 Waterford Road
                                                     Columbus, Georgia  31904

James D. Yancey                                      612 Ascot Way
                                                     Columbus, Georgia  31904

                                   ARTICLE XII
     The name and address of the  incorporator  of the  corporation  is J.
Quentin  Davidson,  Jr.,  828  Broadway, Columbus, Georgia  31901.

                                  ARTICLE XIII
     Any action required by law or permitted to be taken at any shareholders'
meeting may be taken without a meeting if, and only if, written consent, setting
forth the action so taken, shall be signed by all of the shareholders of record
of common stock of the corporation entitled to vote with respect to the subject
matter thereof. Such consent shall have the same force and effect as a unanimous
vote of the shareholders and shall be filed with the Secretary and recorded in
the Minute Book of the corporation.

                                   ARTICLE XIV
            (a) The Board of Directors of the corporation may, if it deems
         it advisable, oppose a tender or other offer for the corporation's
         securities, whether the offer is in cash or in the securities of a
         corporation or otherwise. When considering whether to oppose an offer,
         the Board of Directors may, but is not legally obligated to, consider
         any pertinent issues; by way of illustration, but not of limitation,
         the Board of Directors may, but shall not be legally obligated to,
         consider all or any of the following:
                      (i) whether the offer price is acceptable based on
                  the historical and present operating results or financial
                  condition of the corporation;
                      (ii) whether a more favorable price could be obtained
                  for the corporation's securities in the future;
                      (iii) the impact which an acquisition of the
                  corporation would have on the employees and customers of the
                  corporation and its subsidiaries and the communities which
                  they serve;
                      (iv) the reputation and business practices of the
                  offeror and its management and affiliates as they would affect
                  the employees and customers of the corporation and its
                  subsidiaries and the future value of the corporation's stock;
                      (v) the value of the securities, if any, that the
                  offeror is offering in exchange for the corporation's
                  securities, based on an analysis of the worth of the
                  corporation as compared to the offeror or any other entity
                  whose securities are being offered; and
                      (vi) any antitrust or other legal or regulatory
                  issues that are raised by the offer.

            (b) If the Board of Directors determines that an offer should
         be rejected, it may take any lawful action to accomplish its purpose
         including, but not limited to, any or all of the following:
         (i) advising shareholders not to accept the offer; (ii) litigation
         against the offeror; (iii) filing complaints with governmental and
         regulatory authorities; (iv) acquiring the corporation's securities;
         (v) selling or otherwise issuing authorized but unissued securities
         of the corporation or treasury stock or granting options or rights with
         respect thereto; (vi) acquiring a company to create an antitrust or
         other regulatory problem for the offeror; and (vii) soliciting a more
         favorable offer from another individual or entity.

                                   ARTICLE XV
     No director shall be personally liable to the corporation or its
shareholders for monetary damages for any breach of duty of care or other duty.
Notwithstanding the foregoing, a director shall be liable to the extent provided
by applicable law: (i) for the appropriation in violation of his duties of any
business opportunity of the corporation; (ii) for acts or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law;
(iii) for any action for which the director could be found liable pursuant to
Section 14-2-154 of the Official Code of Georgia Annotated, or any amendment
thereto or successor provision thereto; or (iv) for any transaction from which
the director derived an improper personal benefit. This provision shall not
eliminate or limit the liability of a director for any act or omission occurring
prior to July 1, 1987. No amendment to or repeal of this provision shall apply
to or have any effect on the liability or alleged liability of any director of
the corporation for or with respect to any acts or omissions of such director
occurring prior to such amendment.

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