Document:

precis_ex10a.htm

Redacted copy of the Sales and Services Agreement, dated March 2, 2010, by and among New Benefits, Ltd. and Precis Health, Inc.  CONFIDENTIAL PORTIONS OF THE AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A CONFIDENTIAL TREATMENT REQUEST OF EVEN DATE HEREWITH, PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  THE REDACTED TERMS HAVE BEEN MARKED IN EXHIBIT 10a HERETO AT THE APPROPRIATE PLACES WITH THREE ASTERISKS [***].

 

new benefits

creating advantage.

 

SALES AND SERVICES AGREEMENT

 

THIS SALES AND SERVICES AGREEMENT (hereinafter referred to as "Agreement") is made, entered into and effective as of the date set forth below by and between New Benefits, Ltd. whose principal place of business is located at 14240 Proton Road, Dallas, Texas 75244 (hereinafter referred to as "NB"), and PRECIS HEALTH, INC., its affiliates, related entities, and subsidiaries, (hereinafter referred to as "Reseller") whose principal place of business is located at 2500 South McGee Drive, Suite #125, Norman, Oklahoma 73072.

WITNESSETH

WHEREAS, NB is engaged in the business of the development, design, marketing, sale and distribution of discount cost containment programs of either NB's or third-parties for whom NB is an authorized representative (hereinafter referred to as "Vendor"); and

WHEREAS, Reseller is in the business of marketing various types of discount healthcare and consumer services and benefits to its clients, members, etc.; and

WHEREAS, Reseller desires to purchase from NB certain discount healthcare and consumer benefits and services as well as purchase certain administrative services relating to same; and

WHEREAS, NB is ready and willing to sell to Reseller certain discount healthcare and consumer benefits and services as well as certain administrative services relating to same desired by Reseller.

NOW THEREFORE, in consideration of the mutual agreements and covenants herein contained, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto intending to be legally bound hereby agree as follows:

 

1. COVERAGE AREA

This Agreement, and all the rights, duties and responsibilities set forth in this Agreement, apply to, and are applicable in, the fifty (50) United States (with the exception of Vermont), Washington DC and Puerto Rico (where available).

2. NB DUTIES AND RESPONSIBILITIES

As hereinafter set forth, NB understands and agrees to perform the following duties and accepts the responsibilities as herein identified:

	
  

	
(A)

	
Sell the products and services for discount benefits listed in Schedule 1 to Reseller (hereinafter referred to as "Program"). Annual memberships may be purchased in one-year increments paid monthly or annually and are renewable in one-year increments for members in good standing.

	
  

	
(B)

	
Provide toll-free telephone service for eligible members to access providers and member service functions (hereinafter referred to as "Membership Services").  Except on NB recognized holidays, trained member service representatives shall be available from 7:00 am to 7:00 pm Central Standard Time, Monday through Friday and Saturday from 8:00 am to 5:00 pm Central Standard Time. NB reserves the right to modify these hours with thirty (30) days notice to Reseller,

	
  

	
(C)

	
Provide an Internet web site for members to locate participating providers.

	
  

	
(D)

	
Provide Reseller the benefit marketing and fulfillment verbiage for NB's products and services to use in all marketing, enrollment, advertising, and fulfillment materials. Any changes made to this verbiage must be approved in writing by NB.

 

 

	
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(E)

	
Provide fulfillment materials as set forth in Schedule 1. Upon request, NB's marketing department may assist Reseller with the design of Reseller's fulfillment materials. Should Reseller's fulfillment materials require more than two (2) design revisions, the additional revisions will be performed at a cost of one hundred dollars ($100.00) per hour.

	
  

	
(F)

	
Reserve the right to add to, modify, or delete parts of the Program and/or the other services provided under the terms of this Agreement. NB agrees to provide notice to Reseller of any Vendor change or termination, which notice will in no event be shorter in duration than that provided to NB by NB's applicable Vendor(s).

	
  

	
(G)

	
Secure and maintain all licenses, registrations and permits by any local, state, federal, or governmental authority required of NB in the performance of its obligations under this Agreement.

	
  

	
(H)

	
Provide credit card processing for an additional four percent (4%) fee of the gross sale price, which amount will be deducted from any commissions and/or other compensation that may be due to Reseller.

	
  

	
(I)

	
Pay commissions from monies actually collected and received on memberships sold according to Schedule 1. Subject to the provisions of this Agreement, NB will pay commissions to Reseller under the following terms and conditions:

	
  

	
(1)

	
Memberships are sold at a price agreed upon by both parties in this Agreement and accompanying schedules when applicable. When memberships are paid directly to NB, NB will pay commissions earned on approximately the 15th of each month for each paid membership during the previous month provided the commission check exceeds $100.00. Non-distributed commissions will carry over to the following pay period.

	
  

	
(2)

	
Notwithstanding the foregoing or any other provision of this Agreement, it is understood any commission payments made by NB to Reseller will be made out of monies actually received by NB. If for any reason (whether by the terms of any contract, termination, default, breach, tort, or otherwise) NB shall not actually receive payments from a customer, then NB shall not be obligated to Reseller for that commission. Additionally, NB reserves the right to offset delinquent customer payments with non-distributed commissions due Reseller.

	
  

	
(3)

	
If Reseller believes there is an error on any commission report received from NB or Reseller requires additional information regarding a specific transaction, Reseller should submit a written request for information within ninety (90) days of the statement date to the address specified on the commission report. Any inquiry regarding an alleged error not submitted to NB within ninety (90) days will be considered waived by Reseller. Any correspondence should include Reseller's name, account number, and a full description of the error and/or the transaction in question.

 

3. RESELLER DUTIES AND RESPONSIBILITIES

As hereinafter set forth, Reseller, on behalf of its employees, officers, directors, agents, contractors, shareholders, clients, customers, and members, understands and agrees to perform the following duties and accepts the responsibilities as herein identified:

	
  

	
(A)Submit marketing/sales verbiage for approval electronically in Microsoft Word and all marketing materials in their final approved format electronically as a PDF file or mutually agreed upon format.

	
  

	
(B)Obtain prior written approval from NB for any and all printed literature, radio/television media, telemarketing scripts, press releases, web sites, enrollment materials, membership cards, or similar items as to their content, design, format, use of any trade names, use of any Vendor name, trademark, or service mark of NB or any Vendor under contract with NB. Reseller shall use only the exact marketing, enrollment, and fulfillment verbiage approved by NB when describing or making reference to the discount health benefits listed in Schedule 1. Failure to obtain written approval from NB concerning any materials (printed, electronic or of any other kind or type whatsoever) referencing the benefits set forth on Schedule 1 shall be considered a breach of this Agreement and will result in NB, in its sole discretion, having the right to immediately terminate this Agreement. In addition, Reseller must secure written approval from NB for all reprints when any changes have been made. Further, on the first (1st) day of June each year, Reseller must submit to NB all current marketing, solicitation,

 

 

	
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enrollment, and fulfillment materials (printed, electronic or of any other kind or type whatsoever) for NB's review and approval.

	
  

	
(C)

	
Submit to NB any and all telephone numbers used for inbound and/or outbound telemarketing of NB's Program and/or any web site address(es), prior to launch, containing benefit descriptions and/or Vendor information for any NB product or service. NB reserves the right at its sole discretion to monitor any and all such telephone numbers and web sites for the purpose of ensuring compliance as related to NB's Program.

	
  

	
(D)

	
Solicit, procure, and submit applications to NB.

	
  

	
(E)

	
Reseller will be alotted a Ramp-Up Period equal to ninety (90) days beginning upon the first business day of the month following its first group activation. Upon expiration of the Ramp-Up Period, Reseller must have a minimum of two hundred and fifty (250) active members across all its active groups. In the event Reseller does not meet the minimum membership requirement upon expiration of the Ramp-Up Period Reseller will be billed an amount equal to $1.00/member of the shortfall each month thereafter until such time as Reseller has two hundred and fifty (250) members. The shortfall amount will be deducted from Reseller's commission or invoiced in cases of negative commission.

	
  

	
(F)

	
Work within the parameters of the Program as set forth by NB and/or NB's Vendors. It is Reseller's responsibility to obtain the appropriate training information from NB for each applicable benefit included in the Program. Reseller is authorized to recruit independent sales representatives and/or entities (hereinafter referred to as "ISR") to market the Program on behalf of Reseller. Reseller is responsible for thoroughly training each ISR in respect to the benefits and services purchased from NB. Reseller is responsible for ensuring each ISR represents all NB benefits accurately and in conformity with NB's existing practices, procedures and requirements by requiring each ISR to execute Exhibit A. Further, Reseller agrees to indemnify, defend and hold NB harmless from any and all loss, claims, demands, damages, suits, liabilities and any costs or expenses, including reasonable attorney's fees, arising from or in any way connected with (I) the failure of the ISR to perform its duties in conformity with NB's existing practices, procedures and requirements or (ii) any misrepresentation made by ISR which is false, misleading or containing any material misstatement of fact or omitting any material fact required to be stated to make the statements therein not misleading.Additionally, NB retains the right to refuse any opportunity brought to NB by Reseller.

	
  

	
(G)

	
Send to NB all new member information electronically or hardcopy in a mutually agreed upon format within ten (10) days of receipt by Reseller. Reseller agrees to use best efforts to ensure all data supplied to NB for processing is in good condition, correct, complete, and in proper format as set forth by NB. NB agrees all such member information is considered the confidential property of Reseller and as such, said information shall not be utilized by NB for any reason other than the furtherance of this Agreement without the express written consent of Reseller.

	
  

	
(H)

	
Be responsible for all costs and expenses associated with Reseller's responsibilities under this Agreement, including marketing materials.

	
  

	
(I)

	
Forfeit, along with NB, the membership fees to provide a refund to members commensurate with the prevailing law in the state the membership is sold. Reseller expressly authorizes NB to deduct any monies due under this paragraph from any commission and/or other compensation that may be due to Reseller. Further, Reseller to provide NB proof of all refunds due under this section within five (5) business days of any request by NB of such proof.

	
  

	
(J)

	
Authorize NB to reference Reseller as a client.

	
  

	
(K)

	
Agree that its purchases hereunder from NB are said to customers on a non-exclusive basis.

	
  

	
(L)

	
Submit a completed Group Information Form to NB for each new group setup in NB's system a minimum of three (3) weeks prior to the group's initial enrollment date.

	
  

	
(M)

	
Provide NB the name of any client, along with the name of their program if it is private- labeled, to whom Reseller resells NB's products and services. Reseller shall not wholesale benefits to any other person or entity without NB's prior written consent.

	
  

	
(N)

	
Agree to link Reseller's web sites, or any affiliated web sites created for the purpose of marketing NB products and services, exclusively to the links provided by NB in order for benefit descriptions and Vendor information to remain up to date.

	
  

	
(O)

 

 

	
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Secure and maintain all licenses, registrations and permits by any local, state, federal, or governmental authority required of Reseller in the performance of its obligations under this Agreement. Reseller shall notify NB in writing within five (5) business days of the commencement of any material action, suit or proceeding, and of the issuance of any order, writ, injunction award or decree of any court, agency or other governmental instrumentality involving Reseller.

	
  

	
(P)

	
Agree not to resell by multilevel marketing NB benefits without prior written agreement from NB.

	
  

	
(Q)

	
Obtain NB's approval on the retail pricing for any benefit package including one or more of NB's benefits. Reseller agrees to list each benefit package along with the corresponding retail pricing in a Group Information Form.

	
  

	
(R)

	
Reseller cannot sell multiple year memberships without prior written consent from NB.

	
  

	
(S)

	
Agree to complete the five-page "Credit Application for Credit Card and ACH Processing" if NB is requested to process any credit card or bank draft payments on behalf of Reseller.

	
  

	
(T)

	
Pay NB a one-time setup fee of $2,500.00 via check upon execution of this Agreement. Should Reseller enroll a minimum of twenty-five hundred (2,500) active members within the first twelve (12) months following the execution of this Agreement, Reseller may submit a Request for Credit Form to NB and NB will then credit the $2,500.00 setup fee back to Reseller. Should Reseller fail to enroll a minimum of twenty-five hundred (2,500) members by the one-year anniversary date of this Agreement, NB will permanently retain the initial setup fee in its entirety. The aforementioned $2,500.00 fee includes setup of Reseller's initial five (5) groups in NB's system. After the fifth group, Reseller agrees to pay NB a nonrefundable administrative fee of fifty dollars ($50.00) per additional group.

4. NATURE OF RELATIONSHIP

No terms or provisions of this Agreement are intended to create nor shall they be deemed or construed to create any relationship between NB and Reseller other than that of independent entities contracting with each other hereunder solely for the purpose of effecting the terms and provisions of this Agreement. The parties hereto are not and shall not be deemed for any purpose to be joint ventures, partners, or agents of each other. Neither of the parties hereto, nor any of their respective officers, directors, or employees, shall represent themselves as the partner, employee, servant, or agent of the other party, and shall not be deemed or construed to be the partner, employee, servant, or agent of the other party. Both parties agree to adhere to all applicable laws, rules, and/or regulations pertaining to the solicitation and marketing of NB products and services. Neither party is authorized to represent the other party for any purpose, except as specifically provided in this Agreement, without the prior written consent of that party. Further, Reseller is not authorized to make, alter, or discharge contracts, extend the time or method of payment, or waive or retain any money due NB unless previously agreed to in writing by NB. Reseller understands and acknowledges that in respect to this Agreement, it is the intent of the parties that Reseller is only purchasing from NB certain products and related services for certain prices and nothing more.

5. RECOGNITION OF VALIDITY OF TRADEMARK

Reseller hereby agrees and shall at all times recognize the validity of any and all trademarks, service marks, and trade names of NB and the ownership thereof by NB as herein granted and shall not at any time put in issue or contest, either directly or indirectly, the validity of such trademarks, service marks or trade names. In addition, nothing in this Agreement shall give Reseller any interest in such trademarks, service marks, trade names, or in any design used in connection therewith. It is further understood and agreed NB grants to Reseller during the term of this Agreement a permission, not coupled with an interest, to use any such trademarks, service marks, trade names, or designs in connection with the license herein granted; such use to be in the manner and with the result of designating NB as the source of and origin of such services and/or products.

Reseller also agrees in the event of any actual or suspected infringement of any trade name, trademark, or service mark that is owned by NB, Reseller shall promptly report the same in writing to NB. Determination of whether to institute any demand, suit or action with reference to any such suspected or actual infringement shall be made solely by NB and, if instituted, it shall be instituted, controlled and

 

	
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maintained at the expense of NB. Reseller agrees to cooperate fully with NB with reference to any such demand, suit, or action.

NB agrees to extend to Reseller the same rights and cooperation as set forth herein regarding the trademarks, service marks, and trade names of Reseller as Reseller has extended to NB.

6. TERM AND TERMINATION

The initial term of this Agreement shall begin on the date of this Agreement as set forth below, and shall continue for a period of one year from that date, unless terminated sooner pursuant to the provisions contained in this Agreement. This Agreement shall automatically renew on the same terms and conditions for successive one-year periods, unless terminated in writing, by certified mail, as outlined below. Notwithstanding the foregoing, should Reseller fail to generate new and/or renewal memberships for twelve (12) consecutive months, this Agreement will automatically terminate with no action required by either party. Upon expiration of the initial term, NB reserves the right to change the pricing contained in this Agreement or in any subsequent addendum with a minimum of thirty (30) days written notice to Reseller. Any change in pricing will not apply to existing members enrolled in one of Reseller’s active groups until their membership comes up for annual renewal. Should Reseller not agree to the change in pricing, Reseller may terminate this Agreement according to the provisions of item (A) below. This Agreement may be terminated at any time as follows:

	
  

	
(A)

	
with thirty (30) days notice by either party without cause. In the event this Agreement is terminated by NB without cause, existing business will continue to be serviced as long as membership fees are paid to NB. Renewals will continue to be serviced if mutually agreed upon in writing by both parties.

	
  

	
(B)

	
with seven (7) days notice by NB with cause for misrepresentation by Reseller and/or Reseller's ISR of the Program in the marketplace. In the event this Agreement is terminated by NB with cause, existing business may continue to be serviced at the sole discretion of NB as long as membership fees are paid to NB.

	
  

	
(C)

	
with thirty (30) days notice by either party with cause in the event of any default or breach by the other party of the terms of this Agreement or those contained in any subsequent amendments or schedules. The non-breaching party may give written notice demanding said default be remedied within thirty days, and if the default is not remedied, this Agreement is deemed terminated with no further action. In the event of breach by Reseller of any covenants of this Agreement or any of the terms hereof, Reseller shall forfeit all rights to any compensation that might otherwise be due hereunder. Also, in addition to any other rights and/or remedies available at law, in equity or under contract available to the non-breaching party, the party responsible for breaching this Agreement also agrees damages and remedies at law for such breaches would be inadequate and that the non-breaching party may apply to a court of competent jurisdiction for, and shall be entitled to, a temporary restraining order and an injunction by such court to prevent further breach thereof on the part of the party responsible for breaching this Agreement without the necessity of posting any bond or other security. In addition, the party responsible for breaching this Agreement agrees to pay all court costs and reasonable attorneys' fees incurred by both parties in obtaining specific performance of, or any equitable relief against violation of, or continuous violation of, the requirements of this Agreement. In the event this Agreement is terminated with cause, existing business may continue to be serviced at the sole discretion of NB as long as membership fees are paid to NB.

	
  

	
(D)

	
notwithstanding the foregoing, immediately by NB if Reseller is found to have any unauthorized memberships (memberships that have not been enrolled with NB and/or have not been paid for by Reseller). Unauthorized memberships shall constitute a breach of this Agreement by Reseller and shall be cause for immediate termination of this Agreement and/or deactivation of Reseller's enrolled members. Termination of this Agreement does not relieve Reseller of the obligation to pay all monies due.

	
(E)

	
notwithstanding the foregoing, immediately by NB if Reseller, its affiliates, related entities, and/or subsidiaries, or any agent acting on behalf of Reseller, is found to be engaged directly or indirectly in any unethical and/or illegal marketing practices, including but not limited to any form of fax blasting.Unethical and/or illegal marketing practices shall constitute a breach of this Agreement by Reseller and shall be cause for immediate termination of this

 

 

	
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Agreement and/or deactivation of Reseller’s enrolled members. Termination of this Agreement does not relieve Reseller of the obligation to pay all monies due.

	
  

	
(F) notwithstanding the foregoing, immediately if any state, local or federal law or regulation is enacted or promulgated that prohibits the performance of any of the duties hereunder, or if any law is interpreted to prohibit such performance.

7. CONFIDENTIALITY

NB and Reseller each acknowledge that, in the performance of its duties and obligations under this Agreement, it may receive or have disclosed to it Confidential Information. For the purpose of this Agreement, Confidential Information shall mean any and all information of a confidential or proprietary nature, whether written, oral, embodied in magnetic tape, computer software (including but not limited to source code), or other medium for storage of information, documents, names of customers/clients/members, software, present and future products, price quotes, proposed commission structures, and policies (including listing thereof and documentation related thereto) disclosed by either party hereto to the other, its employees, officers, directors, agents, or representatives, during the term of this Agreement. The parties acknowledge and agree the Confidential Information is proprietary to, and a valuable trade secret of, the disclosing party, and any disclosure or unauthorized use thereof will cause irreparable harm to the disclosing party. Reseller will not disclose to any third party any of the terms and conditions of this Agreement. NB reserves the right to terminate this Agreement at any time by giving written notice to Reseller in the event of any impermissible disclosure hereunder.

Accordingly, the parties each agree and undertake:

	
  

	
(A)to treat Confidential Information in confidence and use it only in connection with this Agreement;

	
  

	
(B)not to copy, in whole or in part, Confidential Information except insofar as is reasonably necessary for performance of the Agreement and without first obtaining the prior written consent of the disclosing party;

	
  

	
(C)not to disclose Confidential Information except that such information may be disclosed to the receiving party's directors, officers, and employees to the extent necessary for purposes directly related to the performances of receiving party's duties under this Agreement;

	
  

	
(D)to return Confidential Information, including all copies and records thereof, at the expiration or earlier termination of this Agreement, provided however, the parties may retain such information as is reasonably necessary for the performance of the parties' respective duties and obligations after expiration of the Agreement;

	
  

	
(E)not to use Confidential Information to compete or assist any person or entity in competing with the business of the other party or its affiliates;

	
  

	
(F)not to use, sell or in any way violate the privacy of the clients/members names which shall become available to each other through the servicing of this relationship; and

	
  

	
(G)to keep strictly confidential the terms and conditions of this Agreement. Should Reseller divulge pricing information from this Agreement to a third party, NB reserves the right to change the pricing described in any schedules or exhibits at NB's sole discretion.

If the receiving party or anyone to whom it discloses the Confidential Information becomes legally compelled to disclose all or any part of the Confidential Information (by deposition, interrogatory, request for documents, subpoena, civil investigative demand, or other order issued by a court of competent jurisdiction, or by a government agency), the receiving party shall (i) promptly, and prior to compliance with the request, notify the disclosing party of the existence, terms, and circumstances comprising such a request; (ii) consult with the disclosing party on the advisability of taking steps to resist or narrow that request, and to the extent legally permissible, delay such disclosure until the disclosing party has taken all reasonable steps necessary to resist or narrow that request; (iii) if disclosure of the Confidential Information is required, after notifying the disclosing party, furnish only such portion of the Confidential Information as the receiving party is advised by counsel is legally required to be disclosed; and (iv) cooperate with the disclosing party, at the disclosing party's expense, in its efforts to obtain a protective or limiting order or other reliable assurance that confidential treatment will be afforded to that portion of the Confidential Information that is required to be disclosed.

 

	
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8. NON-COMPETITION

Reseller for and on behalf of its officers, agents, directors, and principal shareholders agrees during the term of this Agreement, and for a period of one (1) year after the termination of this Agreement (with the exception of NB terminating this Agreement without cause), it and they shall not directly or indirectly contract with any Vendors listed in Schedule 1 of this Agreement, nor shall they hire any employee of NB during this time period, nor shall they utilize NB's confidential provider lists to solicit and/or contract with any providers in the event Reseller elects to establish its own vision, chiropractic, or any other provider network made available to Reseller by NB under the terms of this Agreement. Reseller is not prohibited from establishing its own provider network(s) when soliciting providers from lists in the public domain or from establishing a business relationship with another party that maintains a provider network which includes one or more of the providers in NB's provider network.

The covenants by Reseller contained in this paragraph are of the essence of this Agreement and NB would not sell the Program hereunder to Reseller in the absence of such covenants. In consideration of such covenants and to entrust to Reseller provider lists, marketing materials, and other related Confidential Information pertaining to the business of NB, Reseller hereby expressly agrees the utilization of such training and sales information in competition against NB or its affiliates as hereinafter expressly prohibited would be grossly unfair to NB and would cause continuing irreparable damage to NB.

 

9. NON-CIRCUMVENTION

Any direct sales leads or referrals developed, created or furnished by Reseller in the promotion and/or marketing of memberships in any of NB benefit program which result in sales of, or negotiations for sales of memberships, shall be considered a potential client of Reseller. In order to prevent Reseller's potential clients from trying to contract directly with NB, Reseller must complete NB's Non-

Circumvention Agreement. Upon receipt of each completed Non-Circumvention Agreement, NB will notify Reseller if the client listed has been registered as Reseller's prospect. Should the named organization or one of their representatives try to contact NB, NB will immediately direct them back to Reseller. NB's Non-Circumvention Agreement is valid for a period of ninety (90) days. In the event Reseller and Reseller's potential client do not enter into a written Agreement within ninety (90) days from the date NB accepts the Non-Circumvention Agreement, said Non-Circumvention Agreement shall be terminated. Reseller may prevent termination by presentation of a "Broker of Record" letter from their respective client. In the absence of a properly executed and valid Non-Circumvention Agreement, NB will have no obligations to Reseller under this paragraph and will be free to deal with such leads, references, and/or clients as NB deems appropriate.

From time to time, more than one reseller may try to secure the same client's business at the same time. The Non-Circumvention Agreement does not preclude other resellers of NB's Program from working with a prospective client listed in the Non-Circumvention Agreement. However, it does prevent the client from going directly to NB for the purpose of negotiating a contract. In the event two entities have presented NB's benefits to the same client or their representative, the client will be asked to issue a "Broker of Record" statement designating which reseller has been selected.

 

10. INDEMNIFICATION

NB agrees, except as otherwise provided, to indemnify, defend and hold Reseller harmless from any and all loss, claims, demands, damages, suits, liabilities and any costs and expenses, including reasonable attorneys' fees, arising from or in any way connected with (i) the failure of NB to provide the Program in accordance with its terms; or (ii) the failure of NB to perform its duties pursuant to this Agreement and/or observe all of the terms, covenants and conditions contained herein; or (iii) any representation by NB which is false, misleading or containing any material misstatement of fact or omitting any material fact required to be stated to make the statements therein not misleading.

Reseller agrees to indemnify, defend and hold NB harmless from any and all loss, claims, demands, damages, suits, liabilities and any costs or expenses, including reasonable attorney's fees, arising from or in any way connected with (i) the sale or furnishing of services of Reseller; (ii) the failure of Reseller to perform its duties under this Agreement and/or observe all of the terms, covenants and conditions contained herein; or (iii) any representation made by Reseller which is false, misleading or

 

	
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containing any material misstatement of fact or omitting any material fact required to be stated to make the statements therein not misleading.

 

11. PARTIAL INVALIDITY: SEVERABILITY

 

In case any one or more of the provisions contained in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed, so far as is reasonable and possible, as if such invalid, illegal, or unenforceable provision or provisions had never been contained herein or in a manner that is reasonable and reflects the intent of the parties hereto.

 

12. ASSIGNMENT

 

Neither this Agreement nor any of the benefits to accrue hereunder shall be assigned or transferred, either in whole or in part, without the prior written consent of the other party, which will not be unreasonably withheld. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.

 

13. LEGISLATIVE CHANGES

 

In relation to the subject matter of this Agreement, each party shall perform its duties in compliance with all applicable laws, ordinances, regulations and other requirements that are now governing or may in the future govern the subject matter of this Agreement. If the performance of a duty by either party under this Agreement cannot be performed due to a legislative or regulatory change, or if the performance by any party hereto of any term, covenant, condition or provision of the Agreement should violate any statute, ordinance, or be otherwise deemed illegal by any governmental body or agency (collectively, "Jeopardy Event"), then NB will send notification to Reseller of such Jeopardy Event. Within fifteen (15) days of receiving said notification, Reseller must complete the accompanying acknowledgement documentation and submit to NB. Failure to return the necessary acknowledgement paperwork could result in, but not be limited to, contract termination and/or membership suspension in a particular state.

 

14. WAIVERS

 

The failure of any party to insist upon the prompt and punctual performance of any terms or conditions in this Agreement, or the failure of any party to exercise any right or remedy under the terms of this Agreement on any one or more occasions shall not constitute a waiver of that or any other term, condition, right, or remedy on that or any subsequent occasion, unless otherwise expressly provided for herein.

 

15. CONSTRUCTION

 

This Agreement shall be interpreted as though it were mutually drafted. The masculine shall be deemed to include the feminine and vice versa, and the singular shall be deemed to include the plural and vice versa. All references to dollar amounts in this Agreement means amounts in currency of the United States of America. In the event of a dispute hereunder, this Agreement shall be interpreted in accordance with its fair meaning and shall not be interpreted for or against any party hereto on the grounds such party drafted or caused to be drafted this Agreement or any part hereof, nor shall any presumption or burden of proof or persuasion be implied by virtue of the fact this Agreement may have been prepared by or at the request of a particular party or their counsel.

 

16. ENTIRE AGREEMENT

 

This Agreement contains the entire and only Agreement between the parties hereto and supersedes all other prior Agreements between the parties whether written or oral. This Agreement shall not be modified or amended in any manner except in writing signed by all parties.

 

17. CAPTIONS

 

The paragraph captions contained in this Agreement are intended for purposes of convenience or reference only and shall not be considered in construing this instrument.

 

18. FORCE MAJEURE

 

Neither party shall be deemed to be in default of any provisions of this Agreement, or for failure in

 

	
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performance, resulting from acts or events beyond the control of any such party provided the party claiming force majeure gives the other party prompt notice of such condition. Such acts shall include, but not be limited to, acts of God, civil or military authority and disturbance, war, strikes, fires, other catastrophes, or other events beyond the parties' reasonable control. Force majeure conditions shall not excuse payment obligations provided services remain current.

 

19. MISCELLANEOUS SERVICES

 

Should Reseller request additional services including, but not limited to, programming, programming changes, commission disbursement restructure, system development, etc., services will be performed at NB's current Time & Material (T&M) rates. T&M pricing will be quoted on a case-by-case basis.

 

20. DATE SENSITIVE

 

In the event both parties do not sign this Agreement on or before the last day of March, 2010, it will be deemed null and void.

 

21. OPPORTUNITY TO CONSULT AN ATTORNEY

 

Each party to this Agreement agrees they have had an opportunity to review this Agreement and consult with an attorney prior to accepting its terms, and by signing below agrees there was no duress placed on them and there were no representations made other than those contained in this Agreement.

 

22. RESPONSIBILITY TO AND RIGHTS OF THIRD PARTIES

 

Reseller acknowledges and agrees (a) NB does not practice medicine or any other profession, (b) NB does not control the provision of services to Reseller's members, (c) NB does not control the actions of their Vendors and is not responsible in the event one or more of these Vendors terminate, cease, or modify the service(s) and/or product(s) offered in the Program, and (d) NB is not responsible for the care and treatment of Reseller's members rendered by the participating professionals from the respective network in which they are associated; such care and treatment being the sole responsibility of the participating professionals from the respective network in which they are associated. Further, Reseller acknowledges and agrees each member shall be solely financially responsible for paying the usual and customary fees of participating professionals, less applicable discounts established from time to time by NB, for services received by such member. NB is not responsible or accountable for providing funds to pay for such services.

 

23. PROHIBITION OF ILLEGAL MARKETING PRACTICES

 

NB and Reseller each warrants and represents that all present and future marketing practices used by their organization are in compliance with (i) the Telephone Consumer Protection Act ("TCPA") as defined under 47 U.S.C. section 227 which strictly prohibits illegal telemarketing and unsolicited fax transmittal activities (http://www.fcc.gov/cgb/consumerfacts/tcpa.html) and (ii) the CAN-SPAM Act of 2003 which strictly prohibits unsolicited commercial electronic mail (http://www.spamlaws.com/federal/can­spam/shtml). Either party shall have the right to immediately terminate this Agreement upon learning of any violation of the TCPA or CAN-SPAM Act by the other party. Further, both parties agree the party responsible for violating the TCPA or CAN-SPAM Act will be responsible for all costs and expenses of both parties, including court costs and attorney's fees, arising from or in any way connected with said violation.

 

24. AUDIT

 

Both parties agree to allow each other access to, and audit privilege of, proprietary, pertinent and relevant records, document and data in order to validate compliance with the terms and conditions of this Agreement during regular business hours, 9:00 am to 5:00 pm Central Time. Upon receipt and acknowledgement of a thirty (30) day prior written notice, either party will reasonably grant such access and audit privileges (all expenses to be paid by the requesting party).

 

25. NOTICES

 

All notices required pursuant to this Agreement shall be in writing and shall be sufficiently given and served upon the other party if given personally or mailed by certified mail to the following addresses:

 

	
CONFIDENTIAL Commission Agreement (Net)

	
Page 9 of 12

	
02/18/2010

  

  

  

 

	
IF TO NB:

	
IF TO RESELLER:

	
Joel Ray, CEO

	
Janet W. Kruger

	
New Benefits, Ltd,

	
Precis Health, Inc.

	
14240 Proton Road

	
2500 S. McGee Drive, Suite #125

	
Dallas, TX 75244

	
Norman, OK 73072

 

Any notice mailed by certified mail or registered mail, return receipt requested, postage prepaid to the above addresses, shall be effective forty eight (48) hours after deposit in the United States mail, duly addressed and with postage prepaid. Such addresses may be changed from time to time upon written notice to the other party.

 

26. GOVERNING LAW

 

This Agreement is made in the County of Dallas, State of Texas, and shall be construed and interpreted in accordance with the laws of the State of Texas. Venue for any disputes is in Dallas, Dallas County, Texas.

 

27. SCHEDULES/EXHIBITS

 

All schedules and exhibits attached hereto are incorporated in this Agreement by reference for all purposes.

 

EXECUTED BY THE PARTIES HERETO ON THE 2 DAY OF March, 2010:

	
RESELLER

	  	  	  	
RESELLER

	  	  
	
Signature:

	  	
/s/ Janet W. Kruger

	  	
Signature:

	  	
/s/ Terry Tullo

	
Name:

	  	
Janet W. Kruger

	  	
Name:

	  	
Terry Tullo

	
Title:

	  	
President

	  	
Title:

	  	
President

	
Company:

	  	
Precis Health, Inc.

	  	  	  	
Of Neubene Management, LLC,

	
Address:

	  	
2500 S. McGee Drive, Suite #125

	  	  	  	
Its General Partner

	  	  	
Norman, OK 73072

	  	  	  	  
	
Telephone #:

	  	
(405) 360-5047

	  	  	  	  
	
Fax Number:

	  	
(405) 360-5354

	  	  	  	  
	
Email:

	  	
tmetzger@precishealth.com (Terri Metzger)

	  	  	  	  
	
Fed. Tax ID:

	  	
27-1316505

	  	  	  	  
	
Reseller #:

	  	
13072PHI (assigned by NB)

	  	  	  	  

 

	
CONFIDENTIAL Commission Agreement (Net)

	
Page 10 of 12

	
02/18/2010

  

  

  

 

SCHEDULE 1

Voluntary Pricing for Precis Health, Inc.

 

NB agrees to pay Reseller the difference between Reseller's retail rate and the net pricing listed below (first year and renewal):

	
MEDICAL BENEFITS

	
VOLUNTARY WHOLESALE NET PRICE

	
Dental (Aetna Dental Access)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Doctors By Phone** (Consult A DoctorTM - Subject to availability)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
   With No Consultation Fee

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Hearing Aids** (Beltone/TruHearing/Lloyds)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Nurse Hotline/Health Information Library* (FoneMed)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Pharmacy - Retail and Mail Order (NB)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Physician (Beech Street, Galaxy, or Blended by State) & Hospital (Galaxy)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Vitamins and Diabetic Supplies** (Vitacost, Diabetic Solutions)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Vision (Coast to Coast)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	  	  
	
LIFESTYLE BENEFITS

	  
	
Financial Help Line* (askAFS)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
Fitness Advantage* (Preventure)

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

*This benefit must be purchased with at least one other paid benefit.

** This benefit must be purchased with at least two other paid benefits.

Additional Terms:

 

· Member is defined as the card purchaser and legal dependents.

· All benefits provided to Reseller at No Charge are subject to modification or termination without notice to Reseller.

· Physician Visit/Hospital requires a separate member ID card.

· Pricing includes benefit access and customer service. (List billing only available for monthly statements over $50.00.)

	
·  

	
Pricing does not include fulfillment. NB can provide membership fulfillment materials under the following terms and conditions: Reseller agrees to establish a prepaid fulfillment account by submitting a minimum of $500.00 to NB prior to the enrollment of Reseller's initial members. NB will deduct payment for each requested fulfillment package as set forth below. Reseller acknowledges it is their responsibility to keep appropriate funds in the prepaid account. NB will not print or mail fulfillment materials unless there are available funds in the prepaid account. Upon receiving written notice, NB agrees to refund any unused portion of the prepaid account to Reseller within two (2) business days. All individual membership kits returned to NB for invalid addresses will be sent to Reseller for remailing.

 

o Fulfillment Kit Contents. NB will provide membership fulfillment packages to eligible members for a nonrefundable payment of $3.95 per membership kit including postage. Fulfillment materials include two membership cards, a full-color 5"x8" booklet with a description of benefits, and a listing of the five closest participating providers of each applicable benefit.

 

	
·  

	
Pricing does not include marketing/enrollment materials and credit card processing fees (an additional 4% of retail price).

	
·  

	
Reseller shall not wholesale benefits to any other entity without NB's express written consent.

	
·  

	
Reseller must submit retail prices for NB approval a minimum of one week prior to launching marketing campaign.

	
·  

	
MARKETING FEE. For each retail pharmacy utilization paid by the pharmacy benefit processor to NB in conjunction with one of the clans described above NB agrees to pay Reseller marketing fees as listed below:

	
Utilization Level

	
Pharmacy Marketing Fee

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

	
***[CONFIDENTIAL TREATMENT REQUESTED]***

 

(Note: In the event there is no savings to a member on a prescription, the pharmacy benefit processor will not pay a marketing fee to NB, thus no marketing fee will be paid to Reseller). Reseller will receive marketing fees 100 days from the first day of the month following utilization. For example, utilization fees incurred from February 15t-28th will be paid to Reseller no later than June 10th; fees incurred from March 15'-31st will be paid no later than July 10th)

	
CONFIDENTIAL Commission Agreement (Net)

	
Page 11 of 12

	
02/18/2010

 

  

  

  

FREE PHARMACY CARD PROGRAM

Reseller is authorized to market a Free Pharmacy Card Program. As there is no per member per month fee for the pharmacy benefit, Reseller is prohibited from charging the member a monthly fee to access this Program. Further, for each pharmacy utilization paid by the pharmacy benefit processor to NB, NB agrees to pay Reseller marketing fees as listed above.

 

Reseller is responsible for all costs associated with designing and printing any marketing and fulfillment materials it desires to use in connection with the Program. Reseller may order a minimum of one thousand (1,000) Free Pharmacy Card brochures at a cost of $0.07 per brochure, payable by Reseller prior to printing. This price includes a 3.5" x 7.5" single panel card stock brochure (full-color front, black-and-white back) with a perforated membership card (the "Discount Card') and benefit description as well as Reseller's desired logo. Reseller shall have the right to approve the materials prior to printing. Price does not include applicable tax or shipping charges. Alternatively, Reseller's members may print a Free Pharmacy Card directly from Reseller's website.

 

Additional Terms:

 

♦ Pricing includes benefit access and customer service.

♦ Pricing does not include marketing materials and fulfillment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	
CONFIDENTIAL Commission Agreement (Net)

	
Page 12 of 12

	
02/18/2010ex10-1.htm

Exhibit 10.1

THIRD AMENDED AND RESTATED

BYLAWS

OF

CARDTRONICS, INC.

 

A Delaware Corporation

 

 

 

Effective as of:

 

January 21, 2011

 

 

  

  

  

 

TABLE OF CONTENTS

 

	
ARTICLE 1

	
OFFICES

	
1.1

	
REGISTERED OFFICE

	
1

	
1.2

	
OTHER OFFICES

	
1

	 	 	 
	
ARTICLE 2

	
STOCKHOLDERS

	
2.1

	
PLACE OF MEETINGS

	
1

	
2.2

	
QUORUM; ADJOURNMENT OF MEETINGS

	
1

	
2.3

	
ANNUAL MEETINGS

	
2

	
2.4

	
SPECIAL MEETINGS

	
2

	
2.5

	
RECORD DATE

	
2

	
2.6

	
NOTICE OF STOCKHOLDER MEETINGS

	
3

	
2.7

	
ADVANCE NOTICE OF STOCKHOLDER NOMINEE FOR DIRECTOR AND OTHER STOCKHOLDER PROPOSALS

	
3

	
2.8

	
MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE

	
5

	
2.9

	
STOCK LIST

	
6

	
2.10

	
PROXIES

	
6

	
2.11

	
VOTING; ELECTIONS; INSPECTORS

	
7

	
2.12

	
CONDUCT OF MEETINGS

	
7

	
2.13

	
TREASURY STOCK

	
8

	
2.14

	
NO STOCKHOLDER ACTION BY WRITTEN CONSENT

	
8

	
2.15

	
MEETINGS BY REMOTE COMMUNICATION

	
8

	 	 	 
	
ARTICLE 3

	
BOARD OF DIRECTORS

	
3.1

	
POWER; NUMBER; TERM OF OFFICE

	
8

	
3.2

	
QUORUM

	
9

	
3.3

	
PLACE OF MEETINGS; ORDER OF BUSINESS

	
9

	
3.4

	
FIRST MEETING

	
9

	
3.5

	
REGULAR MEETINGS

	
9

	
3.6

	
SPECIAL MEETINGS

	
9

	
3.7

	
REMOVAL

	
9

	
3.8

	
VACANCIES; INCREASES IN THE NUMBER OF DIRECTORS

	
10

	
3.9

	
COMPENSATION

	
10

	
3.10

	
ACTION WITHOUT A MEETING; TELEPHONE CONFERENCE MEETING

	
10

	
3.11

	
APPROVAL OR RATIFICATION OF ACTS OR CONTRACTS BY STOCKHOLDERS

	
11

	 	 	 
	
ARTICLE 4

	
COMMITTEES

	
4.1

	
DESIGNATION; POWERS

	
11

	
4.2

	
PROCEDURE; MEETINGS; QUORUM

	
11

	
4.3

	
SUBSTITUTION OF MEMBERS

	
11

	 	 	 

 

  

i

  

 

	
ARTICLE 5

	
OFFICERS

	
5.1

	
NUMBER, TITLES AND TERM OF OFFICE

	
12

	
5.2

	
SALARIES

	
12

	
5.3

	
REMOVAL

	
12

	
5.4

	
VACANCIES

	
12

	
5.5

	
POWERS AND DUTIES OF THE CHIEF EXECUTIVE OFFICER

	
12

	
5.6

	
POWERS AND DUTIES OF THE CHAIRMAN OF THE BOARD

	
12

	
5.7

	
POWERS AND DUTIES OF THE PRESIDENTS

	
13

	
5.8

	
VICE PRESIDENTS

	
13

	
5.9

	
TREASURER

	
13

	
5.10

	
ASSISTANT TREASURERS

	
13

	
5.11

	
SECRETARY

	
13

	
5.12

	
ASSISTANT SECRETARIES

	
14

	
5.13

	
ACTION WITH RESPECT TO SECURITIES OF OTHER CORPORATIONS

	
14

	 	 	 
	
ARTICLE 6

	
INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS

	
6.1

	
RIGHT TO INDEMNIFICATION

	
14

	
6.2

	
INDEMNIFICATION OF EMPLOYEES AND AGENTS

	
15

	
6.3

	
RIGHT OF CLAIMANT TO BRING SUIT

	
15

	
6.4

	
NONEXCLUSIVITY OF RIGHTS

	
15

	
6.5

	
INSURANCE

	
15

	
6.6

	
SAVINGS CLAUSE

	
16

	
6.7

	
DEFINITIONS

	
16

	 	 	 
	
ARTICLE 7

	
CAPITAL STOCK

	
7.1

	
CERTIFICATES OF STOCK

	
16

	
7.2

	
TRANSFER OF SHARES

	
17

	
7.3

	
OWNERSHIP OF SHARES

	
17

	
7.4

	
REGULATIONS REGARDING CERTIFICATES

	
17

	
7.5

	
LOST OR DESTROYED CERTIFICATES

	
17

	 	 	 
	
ARTICLE 8

	
MISCELLANEOUS PROVISIONS

	
8.1

	
FISCAL YEAR

	
17

	
8.2

	
CORPORATE SEAL

	
17

	
8.3

	
NOTICE AND WAIVER OF NOTICE

	
17

	
8.4

	
RESIGNATIONS

	
18

	
8.5

	
FACSIMILE SIGNATURES

	
18

	
8.6

	
RELIANCE UPON BOOKS, REPORTS AND RECORDS

	
18

	
8.7

	
ELECTRONIC TRANSMISSION

	
18

	 	 	 
	
ARTICLE 9

	
AMENDMENTS

	
9.1

	
AMENDMENT OF BYLAWS

	
18

 

  

ii

  

 

THIRD AMENDED AND RESTATED BYLAWS

OF

CARDTRONICS, INC.

(the “Corporation”)

 

INTRODUCTION

 

The Corporation hereby amends and restates its bylaws in their entirety as follows.

 

ARTICLE 1

OFFICES

 

1.1           Registered Office.  The registered office of the Corporation required by the Delaware General Corporation Law to be maintained in the State of Delaware, shall be the registered office named in the certificate of incorporation of the Corporation, or such other office as may be designated from time to time by the Board of Directors in the manner provided by law.  Should the Corporation maintain a principal office within the State of Delaware such registered office need not be identical to such principal office of the Corporation.

 

1.2           Other Offices.  The Corporation may also have offices at such other places both within and without the State of Delaware as the Board of Directors may from time to time determine or the business of the Corporation may require.

 

ARTICLE 2

STOCKHOLDERS

 

2.1           Place of Meetings.  All meetings of the stockholders shall be held at the principal office of the Corporation, or at such other place within or without the State of Delaware as shall be specified or fixed in the notices or waivers of notice thereof.  In lieu of holding a meeting of stockholders at a designated place, the Board of Directors may, in its sole discretion, determine that any meeting of stockholders may be held solely by means of remote communication.

 

2.2           Quorum; Adjournment of Meetings.  Unless otherwise required by law or provided in the certificate of incorporation of the Corporation, as amended, and including the certificate of designations, rights and preferences governing any outstanding preferred stock of the Corporation (the “Certificate of Incorporation”), or these bylaws, the holders of a majority of the stock issued and outstanding and entitled to vote thereat (on an as converted basis), present in person or represented by proxy, shall constitute a quorum at any meeting of stockholders for the transaction of business and the act of a majority of such stock so represented at any meeting of stockholders at which a quorum is present shall constitute the act of the meeting of stockholders.  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.

 

 

  

1

  

 

Notwithstanding the other provisions of the Certificate of Incorporation or these bylaws, the chairman of the meeting or the holders of a majority of the issued and outstanding stock, (on an as converted basis) present in person or represented by proxy, at any meeting of stockholders, whether or not a quorum is present, shall have the power to adjourn such meeting from time to time, without any notice other than announcement at the meeting of the time and place of the holding of the adjourned 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 such meeting.  At such adjourned meeting at which a quorum shall be present or represented any business may be transacted that might have been transacted at the meeting as originally called.

 

2.3           Annual Meetings.  An annual meeting of the stockholders, for the election of directors to succeed those whose terms expire and for the transaction of such other business as may properly come before the meeting, shall be held at such place, within or without the State of Delaware, on such date, and at such time as the Board of Directors shall fix and set forth in the notice of the meeting, which date shall be within thirteen (13) months subsequent to the later of the date of incorporation or the last annual meeting of stockholders.

 

2.4           Special Meetings.  Unless otherwise provided in the Certificate of Incorporation, special meetings of the stockholders for any purpose or purposes may be called at any time by the Chairman of the Board (if any), by a special committee that is duly designated by the Board, or by resolution adopted by the affirmative vote of the majority of the Board of Directors.

 

2.5           Record Date.  Subject to any requirement contained in the Certificate of Incorporation, for the purpose of determining stockholders entitled to notice of or to vote at any meeting of stockholders, or any adjournment thereof, or entitled to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board of Directors of the Corporation may fix, in advance, a date as the record date for any such determination of stockholders, which date shall not be more than sixty (60) days nor less than ten (l0) days before the date of such meeting, nor more than sixty (60) days prior to any other action.

 

If the Certificate of Incorporation does not provide for, and the Board of Directors does not fix, a record date for any meeting of the stockholders, the record date for determining stockholders entitled to notice of or to vote at such meeting shall be at the close of business on the day next preceding the day on which notice is given or, if, in accordance with Section 8.3 of these bylaws, notice is waived, at the close of business on the day next preceding the day on which the meeting is held.  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.

 

 

  

2

  

 

2.6           Notice of Stockholder Meetings.  All notices of meetings of stockholders shall be sent or otherwise given in accordance with Section 2.8 of these bylaws not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at the meeting. The notice shall specify the place, if any, date, hour of the meeting, the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called.

 

2.7     Advance Notice of Stockholder Nominee for Director and other Stockholder Proposals.

 

(a) The matters to be considered and brought before any annual or special meeting of stockholders of the Corporation shall be limited to matters, including the nomination and election of directors, as shall be brought properly before the meeting in compliance with the procedures set forth in this Section 2.7.

 

(b) For any matter to be properly brought before any meeting of stockholders, the matter must be (i) specified in the notice of meeting given by or at the direction of the Board of Directors, (ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors or (iii) properly brought before the meeting in the manner specified in this Section 2.7 and (iv), as applicable (1) by a stockholder that holds of record stock of the Corporation entitled to vote at the meeting on the matter (including any election of a director) or (2) by a person (a "Nominee Holder") that holds stock through a nominee or "street name" holder of record stock and can demonstrate to the Corporation the indirect ownership of, and Nominee Holder's entitlement to vote, the stock on the matter.

 

In addition to any other requirements under applicable law, the Certificate of Incorporation and these bylaws, persons nominated by stockholders for election as directors of the Corporation and any other proposals by stockholders shall be properly brought before an annual meeting of stockholders only if the stockholder has given timely notice thereof in writing to the Secretary of the Corporation and the proposal is a proper matter for stockholder action under the Delaware General Corporation Law.  To be considered timely, notice of any matter to be presented by a stockholder at the meeting (a "Stockholder Notice") shall be delivered to the Secretary at the principal executive office of the Corporation not less than one hundred and twenty (120) days prior to the first anniversary date of the annual meeting for the preceding year; provided, however, that if and only if the annual meeting is not scheduled to be held within a period that commences thirty (30) days before and ends thirty (30) days after the anniversary date (an annual meeting date outside the period being referred to herein as an "Other Meeting Date"), the Stockholder Notice shall be given in the manner provided herein by the later of (1) the close of business on the date one hundred twenty (120) days prior to the Other Meeting Date or (2) the close of business on the tenth day following the date on which the Other Meeting Date is first publicly announced or disclosed. As used in these bylaws, shares "beneficially owned" shall mean all shares that the person is deemed to beneficially own pursuant to Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934 (the "Exchange Act").

 

 

  

3

  

 

(c) Any stockholder desiring to nominate any person or persons (as the case may be) for election as a director or directors of the Corporation at a meeting of stockholders shall deliver, as part of the Stockholder Notice, a statement in writing setting forth (i) the name and address of the person or persons to be nominated, (ii) the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by each nominee, as reported to the stockholder by the nominee, (iii) the information regarding each nominee required by paragraphs (a), (d), (e) and (f) of Item 401 of Regulation S-K adopted by the U.S. Securities and Exchange Commission, (iv) the signed consent by each nominee to serve as a director of the Corporation if elected, (v) the stockholder's name and address, (vi) the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by the stockholder; and (vii) in the case of a Nominee Holder, evidence establishing the Nominee Holder's indirect ownership of stock and entitlement to vote the stock for the election of directors at the annual meeting.

 

If a stockholder is entitled to vote only for a specific class or category of directors at a meeting (annual or special), the stockholder's right to nominate one or more individuals for election as a director at the meeting shall be limited to that class or category of directors.

 

Notwithstanding any provision of this Section 2.7 to the contrary, in the event that the number of directors to be elected to the Board of Directors of the Corporation at the next annual meeting of stockholders is increased by virtue of an increase in the size of the Board of Directors and either all of the nominees for director at the next annual meeting of stockholders or the size of the increased Board of Directors is not publicly announced or disclosed by the Corporation at least one hundred twenty (120) days prior to the first anniversary of the preceding year's annual meeting, a Stockholder Notice shall also be considered timely hereunder, but only with respect to nominees to stand for election at the next annual meeting as the result of any new positions created by the increase, if it is delivered to the Secretary at the principal executive office of the Corporation not later than the close of business on the tenth day following the first day on which all nominees or the size of the increased Board of Directors shall have been publicly announced or disclosed.

 

(d) Any stockholder who gives a Stockholder Notice of any matter (other than a nomination for director) proposed to be brought before a meeting of stockholders shall deliver, as part of the Stockholder Notice, (i) a brief description of the business desired to be brought before the meeting and the reasons for conducting such business at the meeting, (ii) the stockholder's name and address as they appear on the Corporation’s books, (iii) the number and class of all shares of each class of stock of the Corporation owned of record and beneficially by the stockholder, (iv) any material interest of the stockholder in the matter proposed (other than as a stockholder), if applicable, (v) in the case of a Nominee Holder, evidence establishing the Nominee Holder's indirect ownership of stock and entitlement to vote the stock on the matter proposed at the meeting; and (vi) any other information that is required to be provided by the stockholder pursuant to Regulation 14A under the Exchange Act in his capacity as a proponent to a stockholder proposal.

 

Notwithstanding the foregoing, in order to include information with respect to a stockholder proposal in the proxy statement and form of proxy for a stockholders’ meeting, stockholders must provide notice as required by the regulations promulgated under the Exchange Act.  Notwithstanding anything in these bylaws to the contrary, no business shall be conducted at any meeting except in accordance with the procedures set forth in this Article 2.

 

 

  

4

  

 

(e) Except as provided in the final paragraph and sentence of Section 2.7(c) above, no matter shall be properly brought before a special meeting of stockholders unless the matter is brought before the meeting pursuant to the Corporation's notice of the meeting. In the event the Corporation calls for a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any stockholder entitled to vote for the election of director(s) at the meeting may nominate a person or persons (as the case may be) for election to that position(s) as are specified in the Corporation's notice of the meeting, but only if the Stockholder Notice required by Sections 2.7(b), (c) and (d) hereof is delivered to the Secretary at the principal executive office of the Corporation not later than the close of business on the tenth day following the first day on which the date of the special meeting and either the names of all nominees proposed by the Board of Directors to be elected at the meeting or the number of directors to be elected shall have been publicly announced or disclosed.

 

(f) For purpose of this Section 2.7, a matter shall be deemed to have been "publicly announced or disclosed" if the matter is disclosed in a press release reported by the Dow Jones News Service, the Associated Press or a comparable national news service or in a document publicly filed by the Corporation with the U.S. Securities and Exchange Commission.

 

(g) In no event shall the adjournment of an annual meeting or a special meeting, or any announcement thereof, commence a new period for the giving of notice as provided in this Section 2.7. This Section 2.7 shall not apply to any nomination of a director in an election in which only the holders of one or more series of preferred stock of the Corporation issued pursuant to Article IV of the Certificate of Incorporation are entitled to vote (unless otherwise provided in the terms of the preferred stock).

 

(h) The chairman of any meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall have the power and duty to determine whether notice of nominees and other matters proposed to be brought before a meeting has been duly given in the manner provided in this Section 2.7 and, if not so given, shall direct and declare at the meeting that nominees and other matters shall not be considered.

 

2.8           Manner of Giving Notice; Affidavit of Notice.  If mailed, notice to stockholders shall be deemed given when deposited in the United States mail, postage prepaid, directed to the stockholder at his address as it appears on the records of the Corporation.  Without limiting the manner by which notice may otherwise be given effectively to stockholders, any notice to stockholders may be given by electronic transmission in the manner provided in Sections 222 and 232 of the Delaware General Corporation Law.  An affidavit of the secretary or an assistant secretary, proxy solicitor hired by the Corporation or of the transfer agent of the Corporation that the notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

 

 

  

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The Board of Directors may cancel, reschedule or postpone any previously scheduled annual or special meeting.

 

2.9           Stock List.  A complete list of stockholders entitled to vote at any meeting of stockholders, arranged in alphabetical order for each class of stock and showing the address of each such stockholder and the number of shares registered in the name of such stockholder, shall be open to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten (10) days prior to the meeting, (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is furnished with the notice of the meeting or (ii) 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 stockholders. If the meeting is to be held at a place, then the list shall be produced and kept at the time and place of the meeting during the whole time and may be inspected by any stockholder who is present at that meeting. If the meeting is to be held solely by means of remote communication, then the list also shall be open to the examination of any stockholder during the whole time of that meeting on a reasonably accessible electronic network, and the information required to access the list shall be provided with the notice of that meeting. Nothing contained in this Section 2.9 shall require the Corporation to include electronic mail addresses or other electronic contact information on that list.  The stock list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any stockholder who is present.

 

2.10           Proxies.  Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to a corporate action in writing without a meeting may authorize another person or persons to act for him by proxy.  Proxies for use at any meeting of stockholders shall be filed with the Secretary, or such other officer as the Board of Directors may from time to time determine by resolution, before or at the time of the meeting.  All proxies shall be received and taken charge of and all ballots shall be received and canvassed by the secretary of the meeting who shall decide all questions touching upon the qualification of voters, the validity of the proxies, and the acceptance or rejection of votes, unless an inspector or inspectors shall have been appointed by the chairman of the meeting, in which event such inspector or inspectors shall decide all such questions.

 

No proxy shall be valid after three (3) years from its date, unless the proxy provides for a longer period.  Each proxy shall be revocable unless expressly provided therein to be irrevocable and coupled with an interest sufficient in law to support an irrevocable power.

 

Should a proxy designate two or more persons to act as proxies, unless such instrument shall provide the contrary, a majority of such persons present at any meeting at which their powers thereunder are to be exercised shall have and may exercise all the powers of voting or giving consents thereby conferred, or if only one be present, then such powers may be exercised by that one; or, if an even number attend and a majority do not agree on any particular issue, each proxy so attending shall be entitled to exercise such powers in respect of the same portion of the shares as he is of the proxies representing such shares.

 

 

  

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2.11           Voting; Elections; Inspectors.  Unless otherwise required by law or provided in the Certificate of Incorporation, each stockholder shall have one vote for each share of stock entitled to vote that is registered in his name on the record date for the meeting.  Shares registered in the name of another corporation, domestic or foreign, may be voted by such officer, agent or proxy as the bylaw (or comparable instrument) of such corporation may prescribe, or in the absence of such provision, as the Board of Directors (or comparable body) of such corporation may determine.  Shares registered in the name of a deceased person may be voted by his executor or administrator, either in person or by proxy.

 

All voting, except as required by the Certificate of Incorporation or where otherwise required by law, may be by a voice vote; provided, however, that upon demand therefor by stockholders holding a majority of the issued and outstanding stock (on an as converted basis) present in person or by proxy at any meeting a stock vote shall be taken.  Every stock vote shall be taken by written ballots, each of which shall state the name of the stockholder or proxy voting and such other information as may be required under the procedure established for the meeting.  All elections of directors shall be by ballot, unless otherwise provided in the Certificate of Incorporation.

 

At any meeting at which a vote is taken by ballots, the chairman of the meeting may appoint one or more inspectors, each of whom shall subscribe an oath or affirmation to execute faithfully the duties of inspector at such meeting with strict impartiality and according to the best of his ability.  Such inspector shall receive the ballots, count the votes and make and sign a certificate of the result thereof.  The chairman of the meeting may appoint any person to serve as inspector, except no candidate for the office of director shall be appointed as an inspector.

 

Unless otherwise provided in the Certificate of Incorporation, cumulative voting for the election of directors shall be prohibited.

 

2.12           Conduct of Meetings.  The meetings of the stockholders shall be presided over by the Chairman of the Board (if any), or if he is not present, by the Chief Executive Officer, or if neither the Chairman of the Board (if any), nor Chief Executive Officer is present, by a chairman elected at the meeting.  The Secretary of the Corporation, if present, shall act as secretary of such meetings, or if he is not present, an Assistant Secretary shall so act; if neither the Secretary nor an Assistant Secretary is present, then a secretary shall be appointed by the chairman of the meeting.  The chairman of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of discussion as seem to him in order.  Unless the chairman of the meeting of stockholders shall otherwise determine, the order of business shall be as follows:

 

	
  

	
(a)

	
Calling of meeting to order.

	
  

	
(b)

	
Election of a chairman and the appointment of a secretary if necessary.

	
  

	
(c)

	
Presentation of proof of the due calling of the meeting.

	
  

	
(d)

	
Presentation and examination of proxies and determination of a quorum.

	
  

	
(e)

	
Reading and settlement of the minutes of the previous meeting.

	
  

	
(f)

	
Reports of officers and committees.

	
  

	
(g)

	
The election of directors if an annual meeting, or a meeting called for that purpose.

	
  

	
(h)

	
Unfinished business.

	
  

	
(i)

	
New business.

	
  

	
(j)

	
Adjournment.

 

 

  

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2.13           Treasury Stock.  The Corporation shall not vote, directly or indirectly, shares of stock owned by it and such shares shall not be counted for quorum purposes.

 

2.14           No Stockholder Action by Written Consent.

 

The stockholders of the Corporation may not take action by written consent without a meeting.

 

2.15           Meetings by Remote Communication.

 

If authorized by the Board of Directors, and subject to any guidelines and procedures that the Board of Directors may adopt, stockholders and proxy holders not physically present at a meeting of stockholders may, by means of remote communication, participate in the meeting and be deemed present in person and vote at the meeting, whether the meeting is to be held in a designated place or solely by means of remote communication, provided that (i) the Corporation implements reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxy holder; (ii) the Corporation implements reasonable measures to provide stockholders and proxy holders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including the opportunity to read or hear the proceedings in the meeting substantially concurrently with such proceedings; and (iii) if the stockholder or proxy holder votes or takes other action at the meeting by means of remote communication, a record of the vote or other action is maintained by the Corporation.

 

ARTICLE 3

BOARD OF DIRECTORS

 

3.1           Power; Number; Term of Office.  The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, and subject to the restrictions imposed by law or the Certificate of Incorporation, they may exercise all the powers of the Corporation.

 

The number of directors that shall constitute the whole Board of Directors, shall be determined from time to time by resolution of the Board of Directors (provided that no decrease in the number of directors that would have the effect of shortening the term of an incumbent director may be made by the Board of Directors).  The directors shall be divided into three classes, as nearly equal in number as possible.  One class of directors (which shall be designated Class I) shall be initially elected for a term expiring at the annual meeting of stockholders to be held in 2011, another class (which shall be designated Class II) shall be initially elected for a term expiring at the annual meeting of stockholders to be held in 2012, and another class (which shall be designated Class III) shall be initially elected for a term expiring at the annual meeting of stockholders to be held in 2013.  Members of each class shall hold office until their successors are elected and qualified.  At each succeeding annual meeting of the stockholders of the Corporation, the successor or successors of the class of directors whose term expires at that meeting shall be elected by a plurality vote of all votes cast of each class or series of stock entitled to vote in the election of directors, if any such class or series is entitled to vote separately as a class, at such meeting to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election.

 

 

  

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Unless otherwise provided in the Certificate of Incorporation, directors need not be stockholders nor residents of the State of Delaware.

 

3.2           Quorum.  Unless otherwise provided in the Certificate of Incorporation, a majority of the total number of directors shall constitute a quorum for the transaction of business of the Board of Directors and the vote of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

 

3.3           Place of Meetings; Order of Business.  The directors may hold their meetings and may have an office and keep the books of the Corporation, except as otherwise provided by law, in such place or places, within or without the State of Delaware, as the Board of Directors may from time to time determine by resolution.  At all meetings of the Board of Directors business shall be transacted in such order as shall from time to time be determined by the Chairman of the Board (if any), or in his absence by the President, or by resolution of the Board of Directors.

 

3.4           First Meeting.  Each newly elected Board of Directors may hold its first meeting for the purpose of organization and the transaction of business, if a quorum is present, immediately after and at the same place as the annual meeting of the stockholders.  Notice of such meeting shall not be required.  At the first meeting of the Board of Directors in each year at which a quorum shall be present, held next after the annual meeting of stockholders, the Board of Directors shall proceed to the election of the officers of the Corporation.

 

3.5           Regular Meetings.  Regular meetings of the Board of Directors shall be held at such times and places as shall be designated from time to time by resolution of the Board of Directors, but, in any event, not less than four times per year and at least once in each fiscal quarter.  Notice of such regular meetings shall not be required.

 

3.6           Special Meetings.  Special meetings of the Board of Directors may be called by the Chairman of the Board (if any), the Chief Executive Officer or, on the written request of the majority of the directors in office, by the Secretary, in each case on at least forty-eight (48) hours personal, written, telegraphic, cable or wireless notice to each director.  Such notice, or any waiver thereof pursuant to Section 8.3 hereof, need not state the purpose or purposes of such meeting, except as may otherwise be required by law or provided for in the Certificate of Incorporation or these bylaws.

 

3.7           Removal.  Any director or the entire Board of Directors may be removed, with or without cause, by the holders of a majority of the shares then entitled to vote at an election of directors; provided that, unless the Certificate of Incorporation otherwise provides, if the Board of Directors is classified, then the stockholders may effect such removal only for cause; and provided further that, if the Certificate of Incorporation expressly grants to stockholders the right to cumulate votes for the election of directors and if less than the entire board is to be removed, no director may be removed without cause if the votes cast against his removal would be sufficient to elect him if then cumulatively voted at an election of the entire Board of Directors, or, if there be classes of directors, at an election of the class of directors of which such director is a part.

 

 

  

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Notwithstanding anything in this Section 3.7 or otherwise to the contrary, to the extent the Certificate of Incorporation provides for the election of directors of the Corporation by a specific class or series of capital stock to the exclusion of another class or series of capital stock of the Corporation, unless the Certificate of Incorporation explicitly provides otherwise, only the holders of a majority of such specific class or series entitled to elect such directors may effect a removal of such directors by a vote therefor.

 

3.8           Vacancies; Increases in the Number of Directors.  Unless otherwise provided in the Certificate of Incorporation, vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled only by a majority of the directors then in office, although less than a quorum, or a sole remaining director; and any director so chosen shall hold office until the next annual election and until his successor shall be duly elected and shall qualify, unless sooner displaced.

 

If the directors of the Corporation are divided into classes, any directors elected to fill vacancies or newly created directorships shall hold office until the next election of the class for which such directors shall have been chosen, and until their successors shall be duly elected and shall qualify.

 

3.9           Compensation.  Unless otherwise restricted by the Certificate of Incorporation, the Compensation Committee of the Board of Directors shall have the authority to fix the compensation of directors.

 

3.10           Action Without a Meeting; Telephone Conference Meeting.  Unless otherwise restricted by the Certificate of Incorporation, any action required or permitted to be taken at any meeting of the Board of Directors, or any committee designated by the Board of Directors, may be taken without a meeting if all members of the Board of Directors or committee, as the case may be consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board of Directors or committee.  Such consent shall have the same force and effect as a unanimous vote at a meeting, and may be stated as such in any document or instrument filed with the Secretary of State of Delaware.

 

Unless otherwise restricted by the Certificate of Incorporation, subject to the requirement for notice of meetings, members of the Board of Directors, or members of any committee designated by the Board of Directors, may participate in a meeting of such Board of Directors or committee, as the case may be, by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in such a meeting shall constitute presence in person at such meeting, except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

 

 

  

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3.11           Approval or Ratification of Acts or Contracts by Stockholders.  The Board of Directors in its discretion may submit any act or contract for approval or ratification at any annual meeting of the stockholders, or at any special meeting of the stockholders called for the purpose of considering any such act or contract, and any act or contract that shall be approved or be ratified by the vote of the stockholders holding a majority of the issued and outstanding shares of stock of the Corporation entitled to vote and present in person or by proxy at such meeting (provided that a quorum is present), shall be as valid and as binding upon the Corporation and upon all the stockholders as if it has been approved or ratified by every stockholder of the Corporation.

 

ARTICLE 4

COMMITTEES

 

4.1           Designation; Powers.  The Board of Directors may, by resolution passed by a majority of the whole board, designate one or more committees, including, if they shall so determine, an executive committee, each such committee to consist of one or more of the directors of the Corporation.  The Board of Directors shall elect the chairman of each such committee.  Any such designated committee shall have and may exercise such of the powers and authority of the Board of Directors in the management of the business and affairs of the Corporation as may be provided in such resolution, except that no such committee shall have the power or authority of the Board of Directors in reference to 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 of the Corporation, or amending, altering or repealing the bylaws or adopting new bylaws for the Corporation and, unless such resolution or the Certificate of Incorporation expressly so provides, no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock.  Any such designated committee may authorize the seal of the Corporation to be affixed to all papers that may require it.  In addition to the above such committee or committees shall have such other powers and limitations of authority as may be determined from time to time by resolution adopted by the Board of Directors.

 

4.2           Procedure; Meetings; Quorum.  Any committee designated pursuant to Section 4.1 shall keep regular minutes of its proceedings and report the same to the Board of Directors when requested, shall fix its own rules or procedures, and shall meet at such times and at such place or places as may be provided by such rules, or by resolution of such committee or resolution of the Board of Directors.  At every meeting of any such committee, the presence of a majority of all the members thereof shall constitute a quorum and the affirmative vote of a majority of the members present shall be necessary for the adoption by it of any resolution.

 

4.3           Substitution of Members.  The Board of Directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of such committee.  In the absence or disqualification of a member of a committee, the member or members present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of the absent or disqualified member.

 

 

  

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ARTICLE 5

OFFICERS

 

5.1           Number, Titles and Term of Office.  The officers of the Corporation shall be a Chief Executive Officer, one or more Presidents, one or more Vice Presidents (any one or more of whom may be designated Executive Vice President or Senior Vice President), a Treasurer, a Secretary and, if the Board of Directors so elects, a Chairman of the Board and such other officers as the Board of Directors may from time to time elect or appoint.  Each officer shall hold office until his successor shall be duly elected and shall qualify or until his death or until he shall resign or shall have been removed in the manner hereinafter provided.  Any number of offices may be held by the same person, unless the Certificate of Incorporation provides otherwise.  Except for the Chairman of the Board, if any, no officer need be a director.

 

5.2           Salaries.  The salaries or other compensation of the officers and agents of the Corporation shall be fixed from time to time by the Compensation Committee of the Board of Directors.

 

5.3           Removal.  Any officer or agent elected or appointed by the Board of Directors may be removed, either with or without cause, by the vote of a majority of the whole Board of Directors at a special meeting called for the purpose, or at any regular meeting of the Board of Directors, provided the notice for such meeting shall specify that the matter of any such proposed removal will be considered at the meeting but such removal shall be without prejudice to the contract rights, if any, of the person so removed.  Election or appointment of an officer or agent shall not of itself create contract rights.

 

5.4           Vacancies.  Any vacancy occurring in any office of the Corporation may be filled by the Board of Directors.

 

5.5           Powers and Duties of the Chief Executive Officer.  Subject to the control of the Board of Directors and the executive committee (if any), the Chief Executive Officer shall have general executive charge, management and control of the properties, business and operations of the Corporation with all such powers as may be reasonably incident to such responsibilities; he may agree upon and execute all leases, contracts, evidences of indebtedness and other obligations in the name of the Corporation and may sign all certificates for shares of capital stock of the Corporation; and shall have such other powers and duties as designated in accordance with these bylaws and as from time to time may be assigned to him by the Board of Directors.  Further, unless the Board of Directors otherwise determines, he shall, in the absence of the Chairman of the Board or if there be no Chairman of the Board, preside at all meetings of the stockholders and (should he be a director) of the Board of Directors.

 

5.6           Powers and Duties of the Chairman of the Board.  If elected, the Chairman of the Board shall preside at all meetings of the stockholders and of the Board of Directors; and he shall have such other powers and duties as designated in these bylaws and as from time to time may be assigned to him by the Board of Directors.  The Chairman of the Board may be referred to as the “Chairman” in minutes and resolutions of the Corporation, and the Chairman of the Board may sign instruments binding the Corporation using the title of “Chairman.”

 

 

  

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5.7           Powers and Duties of the Presidents.  In the absence of the Chief Executive Officer, or in the event of his inability or refusal to act, a President designated by the Board of Directors shall perform the duties of the Chief Executive Officer, and when so acting shall have all the powers of and be subject to all the restrictions upon the Chief Executive Officer.  In the absence of a designation by the Board of Directors of a President to perform the duties of the Chief Executive Officer, or in the event of his absence or inability or refusal to act, the President who is present and who is senior in terms of time as a President of the Corporation shall so act.  The Presidents shall perform such other duties and have such other powers as the Board of Directors may from time to time prescribe.

 

5.8           Vice Presidents.  The Vice Presidents shall perform such duties as expressly assigned to them by the Chief Executive Officer, any President, or by a more senior vice president, as well as such other duties as the Board of Directors may from time to time prescribe.  Ranking of vice presidents shall be in the following sequence (higher to lower):  Executive Vice President, Senior Vice President, and Vice President.

 

5.9           Treasurer.  The Treasurer shall have responsibility for the custody and control of all the funds and securities of the Corporation, and he shall have such other powers and duties as designated in these bylaws and as from time to time may be assigned to him by the Board of Directors.  He shall perform all acts incident to the position of Treasurer, subject to the control of the chief executive officer and the Board of Directors; and he shall, if required by the Board of Directors, give such bond for the faithful discharge of his duties in such form as the Board of Directors may require.

 

5.10           Assistant Treasurers.  Each Assistant Treasurer shall have the usual powers and duties pertaining to his office, together with such other powers and duties as designated in these bylaws and as from time to time may be assigned to him by the chief executive officer or the Board of Directors.  The Assistant Treasurers shall exercise the powers of the Treasurer during that officer’s absence or inability or refusal to act.

 

5.11           Secretary.  The Secretary shall keep the minutes of all meetings of the Board of Directors, committees of directors and the stockholders, in books provided for that purpose; he shall attend to the giving and serving of all notices; he may in the name of the Corporation affix the seal of the Corporation to all contracts of the Corporation and attest the affixation of the seal of the Corporation thereto; he may sign with the other appointed officers all certificates for shares of capital stock of the Corporation; he shall have charge of the certificate books, transfer books and stock ledgers, and such other books and papers as the Board of Directors may direct, all of which shall at all reasonable times be open to inspection of any director upon application at the office of the Corporation during business hours; he shall have such other powers and duties as designated in these bylaws and as from time to time may be assigned to him by the Board of Directors; and he shall in general perform all acts incident to the office of Secretary, subject to the control of the chief executive officer and the Board of Directors.

 

 

  

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5.12           Assistant Secretaries.  Each Assistant Secretary shall have the usual powers and duties pertaining to his office, together with such other powers and duties as designated in these bylaws and as from time to time may be assigned to him by the chief executive officer or the Board of Directors.  The Assistant Secretaries shall exercise the powers of the Secretary during that officer’s absence or inability or refusal to act.

 

5.13           Action with Respect to Securities of Other Corporations.  Unless otherwise directed by the Board of Directors, the Chief Executive Officer of the Corporation shall have the power to vote and otherwise act on behalf of the Corporation, in person or by proxy, at any meeting of security holders of, or with respect to any action of security holders of, any other entity in which this Corporation may hold securities, and otherwise to exercise any and all rights and powers which this Corporation may possess by reason of its ownership of such securities, in each case with respect to any vote, action or exercise of rights or powers with respect to any matter which would have been within the authority of the Chief Executive Officer had such vote, action or exercise of rights or powers been taken with respect to the Corporation.  For purposes of this Section, the term “security” includes any partnership interest, membership interest, units, or other security owned by the Corporation in an entity, and the term “security holder” includes partner, member, unit holder, and shareholder in an entity.

 

ARTICLE 6

INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS

 

6.1           Right to Indemnification.  Each person who was or is made a party or is threatened to be made a party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he or she or a person of whom he or she is the legal representative, is or was or has agreed to become a director or officer of the Corporation or is or was serving or has agreed to serve at the request of the Corporation as a director or officer of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether the basis of such proceeding is alleged action in an official capacity as a director or officer while serving or having agreed to serve as a director or officer, shall be indemnified and held harmless by the Corporation to the fullest extent authorized by the Delaware General Corporation Law, as the same exists or may hereafter be amended, (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than said law permitted the Corporation to provide prior to such amendment) against all expense, liability and loss (including without limitation, attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to serve in the capacity that initially entitled such person to indemnity hereunder and shall inure to the benefit of his or her heirs, executors and administrators; provided, however, that the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation.  The right to indemnification conferred in this Section 6.1 shall be a contract right and shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition; provided, however, that, if the Delaware General Corporation Law requires the payment of such expenses incurred by a current, former or proposed director or officer in his or her capacity as a director or officer or proposed director or officer (and not in any other capacity in which service was or is or has been agreed to be rendered by such person while a director or officer, including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding, such payments shall be made only upon delivery to the Corporation of an undertaking, by or on behalf of such indemnified person, to repay all amounts so advanced if it shall ultimately be determined that such indemnified person is not entitled to be indemnified under this Section or otherwise.

 

 

  

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6.2           Indemnification of Employees and Agents.  The Corporation may, by action of its Board of Directors, provide indemnification to employees and agents of the Corporation, individually or as a group, with the same scope and effect as the indemnification of directors and officers provided for in this Article.

 

6.3           Right of Claimant to Bring Suit.  If a written claim received by the Corporation from or on behalf of an indemnified party under this Article VI is not paid in full by the Corporation within ninety days after such receipt, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim.  It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation) that the claimant has not met the standards of conduct that make it permissible under the Delaware General Corporation Law for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation.  Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the Delaware General Corporation Law, nor an actual determination by the Corporation (including its Board of Directors, independent legal counsel, or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.

 

6.4           Nonexclusivity of Rights.  The right to indemnification and the advancement and payment of expenses conferred in this Article VI shall not be exclusive of any other right that any person may have or hereafter acquire under any law (common or statutory), provision of the Certificate of Incorporation of the Corporation, bylaw, agreement, vote of stockholders or disinterested directors or otherwise.

 

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

 

 

  

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6.6           Savings Clause.  If this Article VI or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Corporation shall nevertheless indemnify and hold harmless each director and officer of the Corporation, as to costs, charges and expenses (including attorneys’ fees), judgments, fines, and amounts paid in settlement with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative to the full extent permitted by any applicable portion of this Article VI that shall not have been invalidated and to the fullest extent permitted by applicable law.

 

6.7           Definitions.  For purposes of this Article, reference to the “Corporation” shall include, in addition to the Corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger prior to (or, in the case of an entity specifically designated in a resolution of the Board of Directors, after) the adoption hereof and which, if its separate existence had continued, would have had the power and authority to indemnify its directors, officers and employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

 

ARTICLE 7

CAPITAL STOCK

 

7.1           Certificates of Stock. The certificates for shares of the capital stock of the Corporation may be certificated or uncertificated, as provided under the Delaware General Corporation Law.  Each stockholder, upon written request to the transfer agent or registrar of the Corporation, shall be entitled to have a certificate of the capital stock of the Corporation in the form as may be from time to time be prescribed by the Board of Directors.  The certificate shall be issued, under the seal of the Corporation or a facsimile thereof if the Board of Directors shall have provided for such seal, and signed by the Chairman of the Board (if any), Chief Executive Officer, President or a Vice President and the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer certifying the number of shares (and, if the stock of the Corporation shall be divided into classes or series, the class and series of such shares) owned by such stockholder in the Corporation; provided, however, that any of or all the signatures on the certificate may be facsimile.  The stock record books and the blank stock certificate books shall be kept by the Secretary, or at the office of such transfer agent or transfer agents as the Board of Directors may from time to time by resolution determine.  In case any officer, transfer agent or registrar who shall have signed or whose facsimile signature or signatures shall have been placed upon any such certificate or certificates shall have ceased to be such officer, transfer agent or registrar before such certificate is issued by the Corporation, such certificate may nevertheless be issued by the Corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue.  The stock certificates shall be consecutively numbered and shall be entered in the books of the Corporation as they are issued and shall exhibit the holder’s name and number of shares.

 

 

  

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7.2           Transfer of Shares.  The shares of stock of the Corporation shall be transferable only on the books of the Corporation by the holders thereof in person or by their duly authorized attorneys or legal representatives upon surrender and cancellation of certificates, or evidence of the issuance of uncertificated shares, for a like number of shares.  Upon surrender to the Corporation or a transfer agent of the Corporation of a certificate or evidence of the issuance of uncertificated shares for shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, it shall be the duty of the Corporation to issue a new certificate or evidence of issuance of uncertificated shares to the person entitled thereto, cancel the old certificate or evidence of issuance of uncertificated shares and record the transaction upon its books.

 

7.3           Ownership of Shares.  The Corporation shall be entitled to treat the holder of record of any share or shares of capital stock of the Corporation as the holder in fact thereof and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

 

7.4           Regulations Regarding Certificates.  The Board of Directors shall have the power and authority to make all such rules and regulations as they may deem expedient concerning the issue, transfer and registration or the replacement of certificates or evidence of issuance of uncertificated shares for shares of capital stock of the Corporation.

 

7.5           Lost or Destroyed Certificates.  The Board of Directors may determine the conditions upon which a new certificate or evidence of issuance of uncertificated shares of stock may be issued in place of a certificate which is alleged to have been lost, stolen or destroyed; and may, in their discretion, require the owner of such certificate or his legal representative to give bond, with sufficient surety, to indemnify the Corporation and each transfer agent and registrar against any and all losses or claims which may arise by reason of the issue of a new certificate in the place of the one so lost, stolen or destroyed.

 

ARTICLE 8

MISCELLANEOUS PROVISIONS

 

8.1           Fiscal Year.  The fiscal year of the Corporation shall be such as established from time to time by the Board of Directors.

 

8.2           Corporate Seal.  The Board of Directors may provide a suitable seal, containing the name of the Corporation.  The Secretary shall have charge of the seal (if any).  If and when so directed by the Board of Directors or a committee thereof, duplicates of the seal may be kept and used by the Treasurer or by the Assistant Secretary or Assistant Treasurer.

 

8.3           Notice and Waiver of Notice.  Whenever any notice is required to be given by law, the Certificate of Incorporation or under the provisions of these bylaws, said notice shall be deemed to be sufficient if given (i) by telegraphic, cable, e-mail, or wireless transmission or (ii) by deposit of the same in a post office box in a sealed prepaid wrapper addressed to the person entitled thereto at his post office address, as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such transmission or mailing, as the case may be.

 

 

  

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Whenever notice is required to be given by law, the Certificate of Incorporation or under any of the provisions of these bylaws, a written waiver thereof, signed 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, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation or the bylaws.

 

8.4           Resignations.  Any director, member of a committee or officer may resign at any time.  Such resignation shall be made in writing and shall take effect at the time specified therein, or if no time be specified, at the time of its receipt by the chief executive officer or Secretary.  The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation.

 

8.5           Facsimile Signatures.  In addition to the provisions for the use of facsimile signatures elsewhere specifically authorized in these bylaws, facsimile signatures of any officer or officers of the Corporation may be used whenever and as authorized by the Board of Directors.

 

8.6           Reliance upon Books, Reports and Records.  Each director and each member of any committee designated by the Board of Directors shall, in the performance of his duties, be fully protected in relying in good faith upon the books of account or reports made to the Corporation by any of its officers, or by an independent certified public accountant, or by an appraiser selected with reasonable care by the Board of Directors or by any such committee, or in relying in good faith upon other records of the Corporation.

 

8.7           Electronic Transmission.

 

For purposes of these bylaws, “electronic transmission” means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient, and that may be directly reproduced in paper form by such recipient through an automated process.

 

ARTICLE 9

AMENDMENTS

 

9.1           Amendment of Bylaws.

 

Unless otherwise provided in the Certificate of Incorporation of the Corporation, these bylaws may be altered or repealed and any new bylaws may be adopted (a) at any annual or special meeting of stockholders if notice of the proposed alteration, repeal or adoption of the new bylaw or bylaws be contained in the notice of such annual or special meeting by the affirmative vote of a majority of the stock issued and outstanding and entitled to vote thereat, voting together as a single class, provided, however, that any proposed alteration or repeal of, or the adoption of any bylaws inconsistent with, Section 2.14, Section 3.1, Section 3.7, or Section 3.8 of these bylaws by the stockholders shall require the affirmative vote of at least 66 2/3% of the stock issued and outstanding and entitled to vote thereat, voting together as a single class, or (b) by the affirmative vote of a majority of the members present at any regular meeting of the Board of Directors, or at any special meeting of the Board of Directors, without action on the part of the stockholders, if notice of the proposed alteration, repeal or adoption of the new bylaw or bylaws be contained in the notice of such regular or special meeting.

 

 

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