Exhibit 3.1
BY-LAWS
OF
EMCORE CORPORATION
As Amended Through January 11, 2021
Article I
OFFICES
1. Principal
Place of Business. The principal place of business of EMCORE Corporation (the “Corporation”) is 2015 Chestnut Street,
Alhambra, California 91803.
2. Other
Places of Business. Branch or subordinate places of business or offices may be established at any time by the Board of Directors
of the Corporation (the “Board”) at any place or places where the Corporation is qualified to do business.
Article II
SHAREHOLDERS
1. Annual
Meeting. The annual meeting of shareholders shall be held at a time fixed by the Board, upon not less than ten nor more than
sixty days written notice of the time, place (or the means of remote communication, if any, by which shareholders and proxy holders
may be deemed to be present in person and vote at such meeting), and purpose of the meeting at the corporate offices, or at such
other time and place, if any, as shall be specified in the notice of meeting, in order to elect directors of the Corporation (“Directors”)
and transact such other business as shall come before the meeting.
2. Special
Meetings. A special meeting of shareholders may be called for any purpose by the Chairman of the Board, by the chief executive
officer or by a majority of the Board acting as a body. A special meeting shall be held upon not less than ten nor more than sixty
days written notice of the time, place (or the means of remote communication, if any, by which shareholders and proxy holders may
be deemed to be present in person and vote at such meeting) and purpose of the meeting.
3. Action
Without Meeting. The shareholders may act without a meeting if, prior or subsequent to such action, each shareholder who would
have been entitled to vote upon such action shall consent in writing to such action. Such written consent or consents shall be
filed in the minute book.
4. Quorum.
The presence at a meeting in person or by proxy of the holders of shares entitled to cast a majority of the votes shall constitute
a quorum.
5. Organization.
The chief executive officer, or in the absence of the chief executive officer, president or such vice president as may be designated
by the chief executive officer, shall preside at all meetings of the shareholders. If all are absent, any other officer designated
by the Board shall preside. If no officer so designated is present, the shareholders present in person or represented by proxy
may elect one of their number to preside. The secretary shall act as secretary at all meetings of the shareholders; but in the
absence of the secretary, the presiding officer may appoint any person to act as secretary of the meeting. The person presiding
at the meeting shall have the right and authority to convene and (for any or no reason) to recess and/or adjourn the meeting and
to prescribe such rules, regulations and procedures and to do all such acts and things as are necessary or desirable for the proper
conduct of the meeting, including, without limitation, the establishment of an agenda or order of business for the meeting, establishment
of procedures for the maintenance of order and safety, limitations on the time allotted to questions or comments on the affairs
of the Corporation, restrictions on entry to such meeting after the time prescribed for the commencement thereof and the opening
and closing of the voting polls.
6. Nature
of Business at Annual Meeting of Shareholders.
(a)
No business may be transacted at an annual meeting of
shareholders, other than business that is (i) specified in the Corporation’s notice of meeting (or any supplement
thereto) given by or at the direction of the Board (or any duly authorized committee thereof), (ii) otherwise properly
before the annual meeting by or at the direction of the Board (or any duly authorized committee thereof) or
(iii) otherwise properly brought before the annual meeting by any shareholder of the Corporation who is a shareholder of
record of the Corporation on the date the notice provided for in this Section 6 is delivered to the secretary of the
Corporation who is entitled to vote at such annual meeting and who complies with the notice procedures set forth in this
Section 6.
(b) For
any business to be properly brought before an annual meeting of shareholders pursuant to clause (iii) of Subsection 6(a),
the shareholder must have given timely notice thereof in writing, delivered or mailed by first class mail, postage prepaid, to
the secretary of the Corporation and any such proposed business must constitute a proper matter for shareholder action. To be timely,
a shareholder’s notice must be delivered to or mailed and received by the secretary at the principal executive offices of
the Corporation not later than the close of business on the 90th day, nor earlier than the close of business on the 120th day,
prior to the first anniversary of the preceding year’s annual meeting (provided, however, that in the event that the date
of the annual meeting is more than 30 days before or after such anniversary date, notice by the shareholder must be so delivered
not earlier than the close of business on the one 120th day prior to such annual meeting and not later than the close of business
on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the
date of such meeting is first made by the Corporation). In no event shall the public announcement of an adjournment or postponement
of an annual meeting commence a new time period (or extend any time period) for the giving of a shareholder’s notice as described
above. To be in proper form, such shareholder’s notice shall set forth (A) as to each matter such shareholder proposes
to bring before the annual meeting, (i) a brief description of the business desired to be brought before the annual meeting,
(ii) the text of the proposal or business (including the text of any resolutions proposed for consideration and in the event
that such business includes a proposal to amend these by-laws (these “By-Laws”), the language of the proposed amendment),
(iii) the reasons for conducting such business at the annual meeting and any material interest in such business of such shareholder
and the beneficial owner, if any, on whose behalf the proposal is made; and (B) as to the shareholder giving the notice and
the beneficial owner, if any, on whose behalf the proposal is made (i) the name and address of such person, (ii) the
class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such shareholder
and such beneficial owner as of the date of the notice, (iii) a description of any agreement, arrangement or understanding
with respect to the proposal between or among such person, any of their respective affiliates or associates, and any others acting
in concert with any of the foregoing, (iv) a description of any agreement, arrangement or understanding (including any derivative
or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging
transactions, and borrowed or loaned shares) involving such shareholder or beneficial owner that is in effect as of the date of
the shareholder’s notice, whether or not such instrument or right shall be subject to settlement in underlying shares of
capital stock of the Corporation, the effect or intent of which is to mitigate loss to, manage risk or benefit from share price
changes for, or increase or decrease the voting power of, such shareholder or such beneficial owner, with respect to securities
of the Corporation, and the class or series and number of shares of the Corporation’s capital stock that relate to such agreements,
arrangements or understandings, (v) a description of any proxy (other than a revocable proxy or consent given in response
to a solicitation made pursuant to, and in accordance with, Section 14(a) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) by way of a solicitation statement filed on Schedule 14A), agreement, arrangement, understanding
or relationship in effect as of the date of the notice pursuant to which such shareholder or such beneficial owner has or shares
a right to vote or direct any third party to vote any shares of capital stock of the Corporation, (vi) a representation that
the shareholder is a holder of record of stock of the Corporation entitled to vote at such annual meeting and intends to appear
in person or by proxy at the meeting to propose such business, (vii) a representation whether the shareholder or the beneficial
owner, if any, intends or is part of a group which intends (A) to deliver a proxy statement and/or form of proxy to holders
of at least the percentage of the Corporation’s outstanding capital stock required to approve or adopt the proposal and/or
(B) otherwise to solicit proxies or votes from shareholders in support of such proposal, and (viii) any other information
relating to such shareholder and beneficial owner, if any, required to be disclosed in a proxy statement or other filings required
to be made in connection with solicitations of proxies for the proposal pursuant to and in accordance with Section 14(a) of
the Exchange Act and the rules and regulations promulgated thereunder. The foregoing notice requirements of this Subsection
6(b) shall be deemed satisfied by a shareholder with respect to business if the shareholder has notified the Corporation of
the intention to present a proposal at an annual meeting in compliance with applicable rules and regulations promulgated under
the Exchange Act and such shareholder’s proposal has been included in a proxy statement that has been prepared by the Corporation
to solicit proxies for such annual meeting. Notwithstanding the foregoing provisions of this Subsection 6(b), unless otherwise
required by law, if the shareholder (or a qualified representative of the shareholder) does not appear at the annual meeting of
shareholders to present the proposed business, such proposed business shall not be transacted, notwithstanding that proxies in
respect of such vote may have been received by the Corporation. For purposes of this Section 6, to be considered a “qualified
representative” of the shareholder, a person must be a duly authorized officer, manager, partner or occupy a similar position
with such shareholder or must be authorized by a writing executed by such shareholder to act as proxy at the meeting of shareholders
and such person must produce such writing, or a reliable reproduction thereof, at the meeting of shareholders.
(c) The
person presiding at the meeting may, if the facts warrant, determine and declare to the meeting that business was not properly
brought before the annual meeting in accordance with the foregoing procedures, and if he should so determine, he shall so declare
to the meeting and such business shall not be transacted.
Article III
VOTING AND ELECTIONS
1. Voting.
Except as otherwise provided in the certificate of incorporation of the Corporation (the “Certificate of Incorporation”),
each holder of shares with voting rights shall be entitled to one vote for each such share registered in his or her name on the
books of the Corporation on such date as may be fixed pursuant to Section 3 as the record date. Whenever any action, other
than the election of Directors, is to be taken by vote of the shareholders, it shall be authorized by a majority of the votes cast
at a meeting of shareholders by the holders of shares entitled to vote thereon, unless a greater percentage is required by statute,
the Certificate of Incorporation or these “By-Laws”.
2. Voting
Lists. The officer or agent having charge of the stock transfer books for shares of the Corporation shall make a complete list
of shareholders entitled to vote at a shareholders’ meeting or any adjournment thereof. A list required by this Section 2
may consist of cards arranged alphabetically or any equipment which permits the visual display of the information required. Such
list shall be arranged alphabetically within each class, series or group of shareholders maintained by the Corporation for convenience
of reference, with the address of, and the number of shares held by, each shareholder; be produced (or available by means of a
visual display) at the time and place of the meeting; be subject to the inspection of any shareholder for reasonable periods during
the meeting; and be prima facie evidence of the identity of the shareholders entitled to examine such list or to vote at any meeting.
If the requirements of this Section 2 have not been complied with, the meeting shall, on the demand of any shareholder in
person or by proxy, be adjourned until the requirements are complied with. Failure to comply with the requirements of this Section 2
shall not affect the validity of any action taken at such meeting prior to the making of such demand.
3. Fixing
Record Date. (a) The Board may fix, in advance, a date as the record date for determining the Corporation’s shareholders
with regard to any corporate action or event and, in particular, for determining the shareholders who are entitled to:
(i) notice
of or to vote at any meeting of shareholders or any adjournment thereof;
(ii) give
a written consent to any action without a meeting; or
(iii) receive
payment of any dividend or allotment of any right.
The record date may in no case be more
than sixty days prior to the shareholders’ meeting or other corporate action or event to which it relates. The record date
for a shareholders’ meeting may not be less than ten days before the date of the meeting. The record date to determine shareholders
to give a written consent may not be more than sixty days before the date fixed for tabulation of the consents or, if no date has
been fixed for tabulation, more than sixty days before the last day on which consents received may be counted.
(b) If
no record date is fixed,
(i) the
record date for a shareholders’ meeting shall be the close of business on the day next preceding the day on which notice
is given, or, if no notice is given, the day next preceding the day on which the meeting is held; and
(ii) the
record date for determining shareholders for any other purpose shall be at the close of business on the day on which the resolution
of the Board relating thereto is adopted.
(c) The
record date for determining shareholders entitled to consent to corporate action in writing without a meeting, when no prior action
by the Board is required by this act, shall be the first date on which a signed written consent setting forth the action taken
or proposed to be taken is delivered to the Corporation by delivery to (i) its registered office in New Jersey, (ii) its
principal place of business, or (iii) an officer or agent of the Corporation having custody of the book in which proceedings
of meetings of shareholders are recorded.
(d) When
a determination of shareholders of record for a shareholders’ meeting has been made as provided in this Section 3, such
determination shall apply to any adjournment thereof, unless the Board fixes a new record date under this Section 3 for the
adjourned meeting.
4. Inspectors
of Election. The Board may, in advance of any shareholders’ meeting, or of the tabulation of written consents of shareholders
without a meeting, appoint one or more inspectors to act at the meeting or any adjournment thereof or to tabulate such consents
and make a written report thereof. If inspectors to act at any meeting of shareholders are not so appointed or shall fail to qualify,
the person presiding at a shareholders’ meeting may, and on the request of any shareholder entitled to vote thereat shall,
make such appointment.
Each inspector, before
entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector with strict
impartiality and according to the best of his or her ability. No person shall be elected a Director in an election for which he
or she has served as an inspector.
The inspectors shall
determine the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of
a quorum, the validity and effect of proxies, and shall receive votes or consents, hear and determine all challenges and questions
arising in connection with the right to vote, count and tabulate all votes or consents, determine the result, and do such acts
as are proper to conduct the election or vote with fairness to all shareholders. If there are three or more inspectors, the act
of a majority shall govern. On request of the person presiding at the meeting or any shareholder entitled to vote thereat, the
inspectors shall make a report in writing of any challenge, question or matter determined by them. Any report made by them shall
be prima facie evidence of the facts therein stated, and such report shall be filed with the minutes of the meeting.
5. Proxies.
(a) Every shareholder entitled to vote at a shareholder meeting or to express consent without a meeting may authorize another
person or persons to act for him or her by proxy. Every proxy shall be executed by the shareholder or his or her agent, but a proxy
may be given by telegram, cable, telephonic transmission, or any other means of electronic communication so long as that telegram,
cable, telephonic transmission or other means of electronic communication either sets forth or is submitted with information from
which it can be determined that the proxy was authorized by the shareholder or his agent.
(a) No
proxy shall be valid after eleven months from the date of its execution unless a longer time is expressly provided therein. A proxy
shall be revocable at will unless it states that it is irrevocable and is coupled with an interest either in the stock itself or
in the Corporation. A proxy shall not be revoked by the death or incapacity of the shareholder, but the proxy shall continue in
force until revoked by the personal representative or guardian of the shareholder.
(b) The
presence at a meeting of any shareholder who has given a proxy shall not revoke the proxy unless the shareholder (i) files
written notice of the revocation with the secretary of the meeting prior to the voting of the proxy or (ii) votes the shares
subject to the proxy by written ballot. A person named as proxy of a shareholder may, if the proxy so provides, substitute another
person to act in his or her place, including any other person named as proxy in the same proxy. The substitution shall not be effective
until an instrument effecting it is filed with the secretary of the Corporation.
(c) Each
person holding a proxy shall either file the proxy with the secretary of the meeting or the inspectors at the start of the meeting
or shall submit the proxy to the inspectors together with his or her ballot, as determined by the presiding officer.
Article IV
BOARD OF DIRECTORS
1. Election;
Term of Office; Removal; Vacancies; Independence.
(a) Election.
The number of Directors constituting the entire Board shall be not less than five nor more than nine, as fixed from time to time
by the vote of not less than 66 2/3% of the entire Board; provided, however, that the number of Directors shall not be reduced
so as to shorten the term of any Director at the time in office. The phrase “66 2/3% of the entire Board” shall be
deemed to refer to 66 2/3% of the number of Directors constituting the Board as provided in or pursuant to this Subsection 1(a),
without regard to any vacancies then existing.
(b) Classification;
Term of Office; Vacancies. Until the 2019 Annual Meeting of Shareholders, The Board shall be divided into three classes, as
nearly equal in number as the then total number of Directors constituting the entire Board permits. Commencing with the 2019 Annual
Meeting of Shareholders, the Directors elected at an annual meeting of shareholders to succeed those whose terms then expire shall
hold office until the next succeeding annual meeting of shareholders and until such Director’s successor shall have been
elected and qualified. Starting as of June 1, 2007, Independent Directors (as hereinafter defined) may serve on the Board
for no more than ten consecutive years. After serving for ten consecutive years during any period after June 1, 2007, an Independent
Director must step down from the Board for at least one year before seeking re-election to the Board. Any vacancies in the Board
for any reason, and any created Directorships resulting from any increase in the number of Directors, may be filled by the vote
of not less than 66 2/3% of the members of the Board then in office, although less than a quorum, and any Directors so chosen shall
hold office until the next annual meeting of shareholders and until their successors shall be elected and qualified. No decrease
in the number of Directors shall shorten the term of any incumbent Director. Notwithstanding the foregoing, and except as otherwise
required by law, whenever the holders of any one or more series of preferred stock of the Corporation (“Preferred Stock”)
shall have the right, voting separately as a class, to elect one or more Directors, the then authorized number of Directors shall
be increased by the number of Directors so to be elected, and the terms of the Director or Directors elected by such holders shall
expire at the next succeeding annual meeting of shareholders.
(c) Removal.
Notwithstanding any other provisions of these By-Laws, any Director, or the entire Board, may be removed at any time, but only
for cause and only by the affirmative vote of the holders of at least a majority of the outstanding shares of capital stock entitled
to vote generally in the election of Directors (considered for this purpose as one class) cast at a meeting of the shareholders
called for that purpose. Notwithstanding the foregoing, and except as otherwise required by law, whenever the holders of any one
or more series of Preferred Stock shall have the right, voting separately as a class, to elect one or more Directors, the provisions
of this Subsection 1(c) shall not apply with respect to the Director or Directors elected by such holders of Preferred Stock.
(d) Independence
of Directors. A majority of the members of the Board will be independent. The Corporation defines an “Independent Director”
in accordance with the NASDAQ listing requirements and these By-Laws. For purposes of these By-Laws, an “Independent Director”
will mean a Director who:
(i) is
not, and in the past three years has not been, employed by the Corporation or any of its subsidiaries or affiliates;
(ii) does
not receive, and in the past three years has not received, any remuneration an advisor, consultant or legal counsel to the Corporation
or any of its subsidiaries, affiliates, executive officers or other Directors;
(iii) does
not have, and in the past three years has not had, any contract or agreement with the Corporation or any of its subsidiaries or
affiliates pursuant to which the Director performed or agreed to perform any personal services for the Corporation;
(iv) does
not have, and in the past three years has not had, any business relationship or engaged in any transaction with the Corporation
or any of its subsidiaries or affiliates other than his or her service as a Director;
(v) is
not, and in the past three years has not been, affiliated with, or employed by any present or former independent auditor of the
Corporation or any of its subsidiaries or affiliates;
(vi) is
not, and in the past three years has not been, a director or executive officer of any company for which any executive officer of
the Corporation serves as a director; and
(vii) is
not a Family Member of a person who is not independent pursuant to subsections (i)-(vi) above. For purposes of this Subsection
1(e), “Family Member” means a person’s spouse, parents, children and siblings, whether by blood, marriage, adoption,
or anyone residing in such person’s home.
2. Nominations.
(a) Subject
to the rights of any holders of Preferred Stock, only persons who are nominated in accordance with the procedures in this Section 2
shall be eligible for election as Directors of the Corporation. Nominations of persons for election to the Board pursuant to this
Section 2 may be made at any annual meeting of shareholders, or at any special meeting of shareholders called for the purpose
of electing Directors. Nominations for the election of Directors may be made (i) by or at the direction of the Board (or any
duly authorized committee thereof), or (ii) by any shareholder of the Corporation (or group of shareholders in the case of
any nomination pursuant to Subsection 2(c)) who is a shareholder of record of the Corporation on the date the notice provided for
in this Section 2 is delivered to the Corporation who is entitled to vote at such meeting and who complies with the notice
procedures set forth in this Section 2.
(b) Nominations
for election to the Board of Directors which are not made by the Board shall be made by timely notice thereof in writing, delivered
or mailed by first class mail, postage prepaid, to the secretary of the Corporation. To be timely, a shareholder’s notice
must be delivered to or mailed and received by the secretary at the principal executive offices of the Corporation (i) in
the case of an annual meeting of shareholders, not later than the close of business on the 90th day, nor earlier than the close
of business on the 120th day, prior to the first anniversary of the preceding year’s annual meeting (provided,
however, that in the event that the date of the annual meeting is more than 30 days before or after such anniversary date, notice
by the shareholder must be so delivered not earlier than the close of business on the one 120th day prior to such annual meeting
and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the
day on which public announcement of the date of such meeting is first made by the Corporation); and (ii) in the case of a
special meeting of shareholders called for the purpose of electing Directors, not earlier than the close of business on the 120th
day prior to such special meeting and not later than the close of business on the later of the 90th day prior to such annual meeting
or the 10th day following the day on which public announcement of the date of such meeting is first made by the Corporation
and of the nominees proposed by the Board to be elected as Directors at such meeting. In no event shall the public announcement
of an adjournment or postponement of a meeting of shareholders commence a new time period (or extend any time period) for the giving
of a shareholder’s notice as described above. To be in proper form, such shareholder’s notice shall set forth (A) as
to each person whom the shareholder proposes for election as a Director, (i) the name, age, and business address of each nominee
proposed in such notice, (ii) the principal occupation or employment of each such nominee, (iii) the number of shares
of capital stock which are beneficially owned by each such nominee, (iv) such other information relating to such person that
is required to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required,
in each case pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations
promulgated thereunder, and (v) such person’s written consent to being named in the proxy statement as a nominee and
to serving as a Director if elected; and (B) as to the shareholder giving the notice and the beneficial owner, if any, on
whose behalf the proposal is made (i) the name and address of such person, (ii) the class or series and number of shares
of capital stock of the Corporation which are owned beneficially or of record by such shareholder and such beneficial owner as
of the date of the notice, (iii) a description of any agreement, arrangement or understanding with respect to the nomination
between or among such person, any of their respective affiliates or associates, and any others acting in concert with any of the
foregoing, including the nominee, (iv) a description of any agreement, arrangement or understanding (including any derivative
or short positions, profit interests, options, warrants, convertible securities, stock appreciation or similar rights, hedging
transactions, and borrowed or loaned shares) involving such shareholder or beneficial owner that is in effect as of the date of
the shareholder’s notice, whether or not such instrument or right shall be subject to settlement in underlying shares of
capital stock of the Corporation, the effect or intent of which is to mitigate loss to, manage risk or benefit from share price
changes for, or increase or decrease the voting power of, such shareholder or such beneficial owner, with respect to securities
of the Corporation, and the class or series and number of shares of the Corporation’s capital stock that relate to such agreements,
arrangements or understandings, (v) a description of any proxy (other than a revocable proxy or consent given in response
to a solicitation made pursuant to, and in accordance with, Section 14(a) of the Exchange Act by way of a solicitation
statement filed on Schedule 14A), agreement, arrangement, understanding or relationship in effect as of the date of the notice
pursuant to which such shareholder or such beneficial owner has or shares a right to vote or direct any third party to vote any
shares of capital stock of the Corporation, (vi) a representation that the shareholder is a holder of record of stock of the
Corporation entitled to vote at such annual meeting and intends to appear in person or by proxy at the meeting to propose such
business, (vii) a representation whether the shareholder or the beneficial owner, if any, intends or is part of a group which
intends (A) to deliver a proxy statement and/or form of proxy to holders of at least the percentage of the Corporation’s
outstanding capital stock required to elect the nominee and/or (B) otherwise to solicit proxies or votes from shareholders
in support of such nomination, and (viii) any other information relating to such shareholder and beneficial owner, if any,
required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies
for the election of directors in an election contest pursuant to and in accordance with Section 14(a) of the Exchange
Act and the rules and regulations promulgated thereunder. The Corporation may require any proposed nominee to furnish such
other information as it may reasonably require to determine the eligibility of such proposed nominee to serve as a Director of
the Corporation. Notwithstanding the foregoing provisions of this this Subsection 2(b), unless otherwise required by law, if the
shareholder (or a qualified representative of the shareholder) does not appear at the meeting of shareholders to present the nomination,
such nomination shall be disregarded, notwithstanding that proxies in respect of such vote may have been received by the Corporation.
For purposes of this Section 2, to be considered a “qualified representative” of the shareholder, a person must
be a duly authorized officer, manager, partner or occupy a similar position with such shareholder or must be authorized by a writing
executed by such shareholder to act as proxy at the meeting of shareholders and such person must produce such writing, or a reliable
reproduction thereof, at the meeting of shareholders.
(c) For
a nominee for election to the Board proposed by a shareholder or group of shareholders holding 20% or more of the outstanding capital
stock of the Corporation, the Corporation shall include such nominee in the Corporation’s proxy solicitation materials, provided
that such shareholder or group of shareholders has complied with the notice and other procedures set forth in this Section 2
For a nominee for election to the Board proposed by a shareholder or group of shareholders holding less than 20% of the outstanding
shares of capital stock of the Corporation, the Corporation shall not be required to include such nominee in the Corporation’s
proxy solicitation materials regardless of whether such shareholder or group of shareholders has complied with the notice and other
procedures set forth in this Section 2. For purposes of this Subsection 2(c), “group” shall mean any group of
persons and/or entities formed for the purpose of acquiring, holding, voting or disposing of voting securities that would be required
under Section 13(d) of the Exchange Act and the rules and regulations thereunder to file a statement on Schedule
13D with the Securities and Exchange Commission as a “person” within the meaning of the Section 13(d)(3) of
the Exchange Act.
(d) The
person presiding at the meeting may, if the facts warrant, determine and declare to the meeting that a nomination was not made
in accordance with the foregoing procedures, and if he should so determine, he shall so declare to the meeting and the defective
nomination shall be disregarded.
3. Regular
Meetings. A regular meeting of the Board shall be held without notice immediately following and at the same place as the annual
shareholders’ meeting for the purposes of electing officers and conducting such other business as may come before the meeting.
The Board, by resolution, may provide for additional regular meetings which may be held without notice, except advance notice,
as described in Section 4 below, shall be provided to Directors not present at the time of the adoption of the resolution.
4. Special
Meetings. A special meeting of the Board may be called at any time by the Chairman of the Board, the chief executive officer
or a majority of the members of the Board for any purpose. Such meeting shall be held upon one day’s notice if given orally
(either by telephone or in person) or by telegraph, e-mail or facsimile transmission, or by three days notice if given by depositing
the notice in the United States mails, postage prepaid. Such notice shall specify the time and place of the meeting.
5. Action
Without Meeting. The Board may act without a meeting if, prior or subsequent to such action, each member of the Board shall
consent in writing to such action. Such written consent or consents shall be filed in the minute book.
6. Quorum
and Manner of Acting. Except as otherwise provided in these By-Laws, the Certificate of Incorporation or by law, one-half of
the entire Board shall constitute a quorum for the transaction of business and the act of a majority of the directors present at
any meeting at which there is a quorum shall be the act of the Board. If a quorum shall not be present at any meeting of the Board,
the Directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting
of the time and place of the adjourned meeting (provided the period of adjournment does not exceed 10 days in any one adjournment),
until a quorum shall be present.
7. Meetings
by Means of Conference Telephone. Except as otherwise provided in these By-Laws, the Certificate of Incorporation or by law,
members of the Board may participate in a meeting of the Board 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 a meeting pursuant to this
Section 7 shall constitute presence in person at such meeting.
8. Committees.
The Board, by resolution adopted by a majority of the entire Board, may appoint from among its members an executive committee and
one or more other committees, each of which shall consist of one or more directors of the Corporation. To the extent provided in
such resolution, each such committee shall have and may exercise all the authority of the Board, except that no such committee
shall (a) make, alter or repeal any By-Law; (b) elect any Director, or remove any officer or Director; (c) submit
to shareholders any action that requires shareholders’ approval; or (d) amend or repeal any resolution theretofore adopted
by the Board which by its terms is amendable or repealable only by the Board.
The Board, by resolution
adopted by a majority of the entire Board, may (a) fill any vacancy in any such committee; (b) appoint one or more Directors
to serve as alternate members of any such committee, to act in the absence or disability of members of any such committee with
all the powers of such absent or disabled members; (c) abolish any such committee at its pleasure; (d) remove any Director
from membership on such committee at any time, with or without cause; and (e) establish as a quorum for any such committee
less than a majority of the entire committee, but in no case less than the greater of two persons or one-third of the entire committee.
Actions taken at a
meeting of any such committee shall be reported to the Board at its next meeting following such committee meeting; except that,
when the meeting of the Board is held within two days after the committee meeting, such report shall, if not made at the first
meeting, be made to the Board at its second meeting following such committee meeting.
Unless otherwise provided
by the Board, meetings and actions of committees shall be governed by, and held and taken in accordance with, the provisions of
this Article IV applicable to meetings and actions of the Board.
9. Compensation
of Directors. The Board, by the affirmative vote of a majority of Directors in office and irrespective of any personal interest
of any of them, shall have authority to establish reasonable compensation of Directors for services to the Corporation as Directors,
officers or otherwise.
10. Chairman
of the Board. The Board shall elect a Chairman of the Board from among the Directors. The Board shall designate the Chairman
as either a non-executive Chairman of the Board, or an executive Chairman of the Board. The Chairman of the Board shall preside
at meetings of the Board and in general shall perform all duties incident to the office of Chairman of the Board and such other
duties as from time to time may be assigned to him by the Board of Directors.
Article V
WAIVERS OF NOTICE
Any notice required
by these By-Laws, by the Certificate of Incorporation, or by applicable law, including the New Jersey Business Corporation Act
may be waived in writing by any person entitled to notice. The waiver or waivers may be executed either before or after the event
with respect to which notice is waived. Each Director or shareholder attending a meeting without protesting, prior to its conclusion,
the lack of proper notice shall be deemed conclusively to have waived notice of the meeting.
Article VI
OFFICERS
1. Election.
At its regular meeting following the annual meeting of shareholders, the Board shall elect a chief executive officer, a president,
a treasurer and a secretary, and it may elect such other officers, including one or more vice presidents, as it shall deem necessary.
One person may hold two or more offices. The chief executive officer shall be a Director of the Corporation. Each officer shall
hold office until the end of the period for which such officer was elected, and until his or her successor has been elected and
has qualified, unless he or she is earlier removed.
2. Duties
and Authority of Chief Executive Officer. Subject only to the authority of the Board, and except as otherwise provided in these
By-Laws, the chief executive officer shall have responsibility for the business and affairs of the Corporation. Unless otherwise
directed by the Board, all other executive officers, including the president, shall be subject to the authority and supervision
of the chief executive officer. The chief executive officer may enter into and execute in the name of the Corporation contracts
or other instruments in the regular course of business or contracts or other instruments not in the regular course of business
which are authorized, either generally or specifically, by the Board. The chief executive officer shall preside at shareholder
meetings. Except as otherwise provided in these By-Laws, the chief executive officer shall have the general powers and duties of
management usually vested in the office of chief executive officer of a corporation.
3. Duties
and Authority of President. Subject only to the authority of the chief executive officer and the Board, the president shall
have responsibility for the business and affairs of the Corporation. Unless otherwise directed by the Board, all other non-executive
officers shall be subject to the authority and supervision of the president. The president may enter into and execute in the name
of the Corporation contracts or other instruments in the regular course of business or contracts or other instruments not in the
regular course of business which are authorized, either generally or specifically, by the Board. Except as otherwise provided in
these By-Laws, the president shall have the general powers and duties of management usually vested in the office of president of
a corporation. Following the annual meeting of shareholders in 2008, the president shall also be the chief executive officer and
shall have the duties and authority described in Section 2 of this Article V.
4. Duties
and Authority of Vice Presidents. Each vice president shall perform such duties and have such authority as from time to time
may be delegated to him by the chief executive officer, the president or by the Board. The Board shall have the authority to append
such prefixes as “executive,” “senior” and “assistant” to any vice president’s title
as it shall determine. In the absence of the chief executive officer and the president or in the event of the president’s
death, inability, or refusal to act, such vice president as shall have been designated by the Board or, in the absence of such
designation, by the chief executive officer, shall perform the duties and be vested with the authority of the president.
5. Duties
and Authority of Treasurer. The treasurer shall have the custody of the funds and securities of the Corporation and shall keep
or cause to be kept regular books of account for the Corporation. The treasurer shall perform such other duties and possess such
other powers as are incident to that office or as shall be assigned by the chief executive officer, president or the Board.
6. Duties
and Authority of Secretary. The secretary shall cause notices of all meetings to be served as prescribed in these By-Laws and
shall keep or cause to be kept the minutes of all meetings of the shareholders and the Board. The secretary shall have charge of
the seal of the Corporation. The secretary shall perform such other duties and possess such other powers as are incident to that
office or as are assigned by the chief executive officer, president or the Board.
7. Vacancies.
Any vacancy in any office may be filled by the Board.
8. Removal
and Resignation. Any officer may be removed, either with or without cause, by the Board or by any officer upon whom the power
of removal has been conferred by the Board. An officer elected by the shareholders may be removed, with or without cause, only
by vote of the shareholders but his or her authority to act as an officer may be suspended by the Board for cause. Removal of an
officer shall be without prejudice to the officer’s contract rights, if any. Election or appointment of an officer shall
not of itself create contract rights. Any officer may resign at any time by giving written notice to the Board, the chief executive
officer or the president. A resignation shall take effect on the date of the receipt of the notice or at any later time specified
therein and, unless otherwise specified therein, the acceptance of the resignation shall not be necessary to make it effective.
Article VII
CAPITAL STOCK AND OTHER SECURITIES
1. Issuance
of Capital Stock and Other Securities. Each share of the capital stock of the Corporation shall be represented by certificates
or, in accordance with the applicable provisions of the New Jersey Business Corporation Act, shall be uncertificated shares. Certificates
of any class of capital stock and certificates representing any other securities of the Corporation shall be signed by the Chairman
of the Board, chief executive officer, president, or any vice president and, at the Corporation’s option, may be countersigned
by the secretary, any assistant secretary, the treasurer or any assistant treasurer. The signature of each officer may be an engraved
or printed facsimile. If an officer or transfer agent or registrar whose facsimile signature has been placed upon certificates
ceases to hold the official capacity in which he or she signed, the certificates may continue to be used. The certificates may,
but need not, be sealed with the seal of the Corporation, or a facsimile of the seal. The certificates shall be countersigned and
registered in whatever manner the Board may prescribe.
2. Lost,
Stolen and Destroyed Certificates. In case of lost, stolen or destroyed certificates, new certificates or uncertificated shares
may be issued to take their place upon receipt by the Corporation of a bond of indemnity and under whatever regulations may be
prescribed by the Board. The giving of a bond of indemnity may be waived.
3. Transfer
of Securities. The shares of the capital stock or any other registered securities of the Corporation shall be transferable
on the books of the Corporation by the holder thereof or by that person’s authorized agent upon (a) surrender for cancellation
to the relevant transfer agent of an outstanding certificate or certificates for the same number of shares or other security with
an assignment and authorization to transfer endorsed thereon or attached thereto, duly executed, together with such proof of the
authenticity of the signature and of the power of the assignor to transfer the securities as the Corporation or its agents may
require or (b) in the case of uncertificated shares, upon receipt of proper transfer instructions from the holder thereof
or that person’s authorized agent or upon presentation of proper evidence of assignment and authorization to transfer, duly
executed, together with such proof of the authenticity of the signature and of the power of the assignor to transfer the securities
as the Corporation or its agents may require.
4. Fractional
Shares. The Corporation may, but shall not be required to, issue certificates for fractions of a share where necessary to effect
authorized transactions, or the Corporation may pay in cash the fair value of fractions of a share as of the time when those entitled
to receive such fractions are determined, or it may issue scrip in registered or bearer form over the manual or facsimile signature
of an officer of the Corporation or of its agent, exchangeable as therein provided for full shares, but such scrip shall not entitle
the holder to any rights of a shareholder except as therein provided.
Article VIII
AMENDMENTS TO AND EFFECT OF
BY-LAWS; FISCAL YEAR; SEAL;
CHECKS; CONTRACTS; RECORDS
1. Force
and Effect of By-Laws. These By-Laws are subject to the provisions of the applicable law, including the New Jersey Business
Corporation Act, and the Certificate of Incorporation, as it may be amended from time to time. If any provision in these By-Laws
is inconsistent with a provision in that Act or the Certificate of Incorporation, the provision of that Act or the Certificate
of Incorporation shall govern.
2. Amendments
to By-Laws. These By-Laws may be altered, amended or repealed by the shareholders or the Board in accordance with the terms
of the Certificate of Incorporation, these By-laws and applicable law. Any By-Law adopted, amended or repealed by the shareholders
may be amended or repealed by the Board, unless the resolution of the shareholders adopting such By-Law expressly reserves to shareholders
the right to amend or repeal it.
3. Fiscal
Year. The fiscal year of the Corporation shall begin on the first day of October of each year.
4. Seal.
The corporate seal shall have inscribed thereon the name of the Corporation, the year of its incorporation, and the words “Corporate
Seal New Jersey”. The corporate seal may be used by causing it or a facsimile thereof to be impressed or reproduced on a
document or instrument, or affixed thereto. Except to the extent required by applicable law or by resolution of the Board, no contract,
instrument or other document executed by or on behalf of the Corporation, or to which the Corporation is otherwise a party, shall
be required to bear the corporate seal.
5. Checks,
Drafts, Etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness, issued
in the name of or payable to the Corporation, shall be signed or endorsed by the person or persons and in such manner, manually
or by facsimile signature, as shall be determined from time to time by the Board.
6. Execution
of Contracts. The Board may authorize any officer or officers, employee or employees, or agent or agents of the Corporation,
to enter into any contract or execute any instrument in the name of and on behalf of the Corporation. The authority may be general
or confined to specific instances.
7. Records.
The Corporation shall keep books and records of account and minutes of the proceedings of the shareholders, Board and such committees
as the Board may determine. Such books, records and minutes may be kept outside the State of New Jersey. The Corporation shall
keep at its principal office, its registered office, or at the office of its registrar and transfer agent, a record or records
containing the names and addresses of all shareholders, the number, class and series of shares held by each and the dates when
they respectively became the owners of record thereof. Any of the foregoing books, minutes or records may be in written form or
in any other form capable of being converted into readable form within a reasonable time.
Any person who shall
have been a shareholder of record of the Corporation for at least six months immediately preceding his demand, or any person holding,
or so authorized in writing by the holders of, at least five percent of the outstanding shares of any class or series, upon at
least five days’ written demand shall have the right for any proper purpose to examine in person or by agent or attorney,
during usual business hours, the minutes of the proceedings of the shareholders and record of shareholders and to make extracts
therefrom at the places where the same are kept.
Article IX
INDEMNIFICATION
1. General.
The Corporation shall indemnify an Indemnitee (as hereinafter defined) against Liabilities (as hereinafter defined) and advance
Expenses (as hereinafter defined) to an Indemnitee to the fullest extent permitted by applicable law and as provided in this Article IX.
An Indemnitee shall be entitled to the indemnification provided in this Section 1, if, by reason of his being or having been
an Officer/Director (as hereinafter defined), he is, or is threatened to be made, a party to any threatened, pending, or completed
Proceeding (as hereinafter defined). Pursuant to this Section 1, an Indemnitee shall be indemnified against Expenses and Liabilities
actually incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein.
2. Advancement
of Expenses. The Corporation shall advance all Expenses incurred by or on behalf of an Indemnitee in connection with any Proceeding
upon the receipt by the Corporation of a statement or statements from the Indemnitee requesting such advance or advances from time
to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence
the Expenses incurred by the Indemnitee or refer to invoices or bills for Expenses furnished or to be furnished directly to the
Corporation, and shall include or be preceded or accompanied by an undertaking by or on behalf of the Indemnitee to repay any Expenses
advanced unless it shall ultimately be determined pursuant to Section 5 of this Article IX that the Indemnitee is entitled
to be indemnified against such Expenses.
3. Indemnification
for Expenses of a Witness. Notwithstanding any other provision of this Article IX, to the extent that an Indemnitee is,
by reason of his being or having been an Officer/Director, a witness in any Proceeding in which such Indemnitee is not also a party,
the Corporation shall indemnify such witness against all Expenses actually incurred by him or on his behalf in connection therewith.
4. Limitation
on Indemnity. No indemnification shall be made to any Indemnitee pursuant to this Article IX to the extent that, in connection
with the relevant Proceeding, a judgment or other final adjudication adverse to the Indemnitee establishes that his acts or omissions
(a) were in breach of such Indemnitee’s duty of loyalty to the Corporation or its shareholders, as defined in subsection
(3) of N.J.S. 14A:2-7, (b) were not in good faith or involved a knowing violation of law, or (c) resulted in the
receipt by such Indemnitee of an improper personal benefit. In the event of any such finding, the Indemnitee shall promptly disgorge
and pay over to the Corporation any amounts theretofore paid to such Indemnitee pursuant to this Article IX, including any
advance of Expenses pursuant to Section 2 of this Article IX. The termination of any Proceeding or of any claim, issue
or matter therein by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
of itself adversely affect the right of an Indemnitee to indemnification or create a presumption that an Indemnitee did not act
in good faith or that an Indemnitee had reasonable cause to believe that his conduct was unlawful.
5. Procedure
for Determination of Entitlement to Indemnification.
(a) To
obtain indemnification under this Article IX, an Indemnitee shall submit to the Corporation a written request for indemnification,
and provide for the furnishing to the Corporation of such documentation and information as is reasonably available to the Indemnitee
and is reasonably necessary to determine whether and to what extent the Indemnitee is entitled to indemnification. The
secretary shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that the Indemnitee has
requested indemnification.
(b) Upon
written request by an Indemnitee for indemnification pursuant to Subsection 5(a) of this Article IX, a written determination
with respect to the Indemnitee’s entitlement thereto shall be made: (i) if a Change in Control (as hereinafter defined)
shall have occurred, by Independent Counsel (as hereinafter defined); (ii) if a Change in Control shall not have occurred,
(A) by the Board by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (B) by
a majority vote of a quorum of Disinterested Directors on a Committee of the Board authorized by the Board to make such determination,
or (C) by Independent Counsel. If it is so determined that the Indemnitee is entitled to indemnification, payment to the Indemnitee
shall be made in a timely fashion. An Indemnitee shall cooperate with the person, persons or entity making such determination with
respect to the Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable
advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably
available to the Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees
and disbursements) incurred by an Indemnitee in so cooperating with the person, persons or entity making such determination shall
be borne by the Corporation (irrespective of the determination as to an Indemnitee’s entitlement to indemnification).
(c) In
the event the determination of entitlement is to be made by Independent Counsel pursuant to Subsection 5(b) of this Article IX,
the Independent Counsel shall be selected as provided in this Subsection 5(c). If a Change in Control shall not have occurred,
the Independent Counsel shall be selected by the Board or a Committee thereof authorized by the Board to make such selection, and
the Corporation shall give written notice to the Indemnitee advising him of the identity of the Independent Counsel so selected.
If a Change of Control shall have occurred, the Independent Counsel shall be selected jointly by the Indemnitee and the Board or
a Committee thereof authorized by the Board to make such determination. In the event that the Board or such a Committee thereof
cannot agree with the Indemnitee on the choice of Independent Counsel, such Independent Counsel shall be selected by the Board
or a Committee thereof from among the New York City law firms having more than 100 attorneys. The Corporation shall pay any and
all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant
to Subsection 5(b) of this Article IX, and the Corporation shall pay all reasonable fees and expenses incident to the
procedures of this Subsection 5(c), regardless of the manner in which such Independent Counsel was selected or appointed.
6. Presumptions
and Effect of Certain Proceedings.
(a) If
a Change in Control shall have occurred, in making a determination with respect to entitlement to indemnification hereunder, the
person, persons or entity making such determination shall presume that an Indemnitee is entitled to indemnification under this
Article if the Indemnitee has submitted a request for indemnification in accordance with Subsection 5(a) of this Article IX,
and the Corporation shall have the burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption.
(b) If
the person, persons or entity empowered or selected under Section 5 of this Article IX to determine whether an Indemnitee
is entitled to indemnification shall not have made such determination in a timely fashion after receipt by the Corporation of the
request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and the Indemnitee
shall be entitled to such indemnification, absent (i) a misstatement by the Indemnitee of a material fact, or an omission
of a material fact necessary to make the Indemnitee’s statement not materially misleading, in connection with the request
for indemnification (which shall have been proven by clear and convincing evidence), or (ii) a prohibition of such indemnification
under applicable law.
(c) Every
Indemnitee shall be presumed to have relied upon this Article IX in serving or continuing to serve as an Officer/Director.
7. Indemnification
of Estate; Standards for Determination. If an Indemnitee is deceased and would have been entitled to indemnification under
any provision of this Article IX, the Corporation shall indemnify the Indemnitee’s estate and his spouse, heirs, administrators
and executors. When the Board, Committee thereof or Independent Counsel acting in accordance with Section 5 of this Article IX
is determining the availability of indemnification under this Article IX and when an Indemnitee is unable to testify on his
own behalf by reason of his death or mental or physical incapacity, said Board, Committee or Independent Counsel shall deem the
Indemnitee to have satisfied applicable standards set forth in the relevant section or sections of this Article IX unless
it is affirmatively demonstrated by clear and convincing evidence that indemnification is not available thereunder.
8. Limitation
of Actions and Release of Claims. No legal action shall be brought and no cause of action shall be asserted by or on behalf
of the Corporation or its Affiliates (as hereinafter defined) against an Indemnitee, his spouse, heirs, executors or administrators
after the expiration of two years from the date the Indemnitee ceases (for any reason) to serve as an Officer/Director, and any
claim or cause of action of the Corporation or its Affiliates shall be extinguished and deemed released unless asserted by filing
of a legal action within such two-year period.
9. Other
Rights and Remedies of Indemnitee.
(a) The
Corporation shall purchase and maintain on behalf of Indemnitees such insurance covering such Liabilities and Expenses arising
from actions or omissions of an Indemnitee in his capacity as an Officer/Director as is obtainable and is reasonable and appropriate
in cost and amount.
(b) In
the event that (i) a determination is made pursuant to Section 5 of this Article IX that an Indemnitee is not entitled
to indemnification under this Article IX, (ii) advancement of Expenses is not timely made pursuant to Section 2
of this Article IX, (iii) the determination of entitlement to indemnification is to be made by Independent Counsel pursuant
to Subsection 5(b) of this Article IX and such determination shall not have been made and delivered in a written opinion
in a timely fashion after receipt by the Corporation of the request for indemnification, (iv) payment of indemnification is
not made pursuant to Section 3 of this Article IX in a timely fashion after receipt by the Corporation of a written request
therefor, or (v) payment of indemnification is not made in a timely fashion after a determination has been made that an Indemnitee
is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Article IX,
the Indemnitee shall be entitled to an adjudication in the Superior Court of the State of New Jersey, or in any other court of
competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses. Alternatively, the Indemnitee, at
his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association. The Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration in a
timely manner following the date on which the Indemnitee first has the right to commence such Proceeding pursuant to this Subsection
9(b). The Corporation shall not oppose the Indemnitee’s right to exercise his rights under this Subsection 9(b).
(c) In
the event that a determination shall have been made pursuant to Section 5 of this Article that an Indemnitee is not entitled
to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 9 shall be conducted in all
respects as a de novo trial or arbitration on the merits, and the Indemnitee shall not be prejudiced by reason of that adverse
determination. If a Change of Control shall have occurred, in any judicial proceeding or arbitration commenced pursuant to this
Section 9 the Corporation shall have the burden of proving that the Indemnitee is not entitled to indemnification or advancement
of Expenses, as the case may be.
(d) If
a determination shall have been made or deemed to have been made pursuant to Section 5 of this Article IX that an Indemnitee
is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding or arbitration
commenced pursuant to this Section 9, absent (i) a misstatement by the Indemnitee of a material fact, or an omission
of a material fact necessary to make the Indemnitee’s statement not materially misleading, in connection with the request
for indemnification (which shall have been proven by clear and convincing evidence), or (ii) a prohibition of such indemnification
under applicable law.
(e) The
Corporation shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 9
that the procedures and presumptions of this Article are not valid, binding and enforceable and shall stipulate in any such
court or before any such arbitrator that the Corporation is bound by all the provisions of this Article IX.
(f) In
the event that an Indemnitee, pursuant to this Section 9, seeks a judicial adjudication of or an award in arbitration to enforce
his rights under, or to recover damages for breach of, this Article, the Indemnitee shall be entitled to recover from the Corporation,
and shall be indemnified by the Corporation against, any and all expenses (of the types described in the definition of Expenses
in Section 12 of this Article IX) actually incurred by him in such judicial adjudication or arbitration, but only if
he prevails therein. If it shall be determined in said judicial adjudication or arbitration that the Indemnitee is entitled to
receive part but not all of the indemnification or advancement of Expenses sought, the Expenses incurred by the Indemnitee in connection
with such judicial adjudication or arbitration shall be appropriately prorated.
10. Non-Exclusivity;
Survival of Rights; Subrogation.
(a) The
rights of indemnification and to receive advancement of Expenses as provided by this Article shall not be deemed exclusive
of any other rights to which an Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation,
the certificate of incorporation or other similar organizational document of any Affiliate of the Corporation, the By-Laws, the
by-laws or other similar organizational document of any Affiliate of the Corporation, any agreement, any insurance policy maintained
or issued directly or indirectly by the Corporation or any Affiliate of the Corporation, a vote of shareholders, a resolution of
Disinterested Directors, or otherwise. No amendment, alteration or repeal of this Article or of any provision hereof shall
be effective as to any Indemnitee with respect to any action taken or omitted by such Indemnitee as an Officer/Director prior to
such amendment, alteration or repeal. The provisions of this Article IX shall continue as to an Indemnitee whose status as
an Officer/Director has ceased and shall inure to the benefit of his heirs, executors and administrators.
(b) In
the event of any payment under this Article IX, the Corporation shall be subrogated to the extent of such payment to all of
the rights of recovery of the Indemnitee, who shall execute all papers required and take all action necessary to secure such rights,
including execution of such documents as are necessary to enable the Corporation to bring suit to enforce such rights.
(c) The
Corporation shall not be liable under this Article IX to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that the Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement
or otherwise.
11. Severability.
If any provision or provisions of this Article shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions of this Article (including without limitation,
each portion of any subsection of this Article IX containing any such provision held to be invalid, illegal or unenforceable
that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the
fullest extent possible, the provisions of this Article (including, without limitation, each portion of any subsection of
this Article IX containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal
or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
12. Definitions.
For purposes of this Article IX:
(a) “Affiliate”
or “Associate” shall have the same meaning as in Rule 405 under the Securities Act of 1933, as amended.
(b) “Change
in Control” shall mean either:
(i) a
change in the membership of the Board such that one-third or more of its members were neither recommended nor elected to the Board
by a majority of those of its members (A) who are not Affiliates or Associates or representatives of a beneficial owner described
in clause (ii) below or (B) who were members of the Board prior to the time the beneficial owner became such; or
(ii) The
attainment of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act, as Rule 13d-3 was
in existence on the date hereof) by any person, corporation or other entity, or any group, including, associates or affiliates
of such beneficial owner, of more than 10% of the voting power of all classes of capital stock, other than by any such entity that
held more than such percentage as of the date hereof.
(c) “Corporate
Agent” means a person who is or was a director, officer, employee, agent or fiduciary of the Corporation or of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at
the request of the Corporation, but shall not include any Officer/Director.
(d) “Disinterested
Director” means a Director who is not and was not a party to the Proceeding in respect of which indemnification is sought
by an Indemnitee.
(e) “Expenses”
means all reasonable costs, disbursements and counsel fees.
(f) “Indemnitee”
means any person who is, or is threatened to be made, a witness in, or a party to, any Proceeding by reason of his being or having
been an Officer/Director.
(g) “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent: (i) the Corporation or the Indemnitee or, following a
Change in Control, any person acquiring control or any beneficial owner referred to in clause (ii) of Section 12(b) of
this Article or any Affiliate or Associate of any such person or beneficial owner, in any matter material to any such person,
or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any person who under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Corporation or the Indemnitee in an action to determine
the Indemnitee’s rights under this Article IX.
(h) “Liabilities”
shall mean amounts paid or incurred in satisfaction of settlements, judgments, awards, fines and penalties.
(i) “Officer/Director”
shall mean any officer of the Corporation or any Director.
(j) “Proceeding”
includes any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other
proceeding whether civil, criminal, administrative or investigative, except one initiated by an Indemnitee pursuant to Section 9
of this Article IX to enforce his rights under this Article IX.
13. Notices.
Any notice, request or other communication required or permitted to be given to the Corporation under this Article IX shall
be in writing and either delivered in person or sent by telex, telegram or certified or registered mail, postage prepaid, return
receipt requested, to the secretary of the Corporation and shall be effective only upon receipt by the secretary.
14. Amendments.
This Article IX may be amended or repealed only by action of the Board approved by the favorable vote of a majority of the
votes cast by shareholders entitled to vote thereon at a meeting of shareholders for which proxies are solicited in accordance
with then applicable requirements of the Securities and Exchange Commission, except that (i) the Board, without shareholder
approval, may make technical amendments that do not substantively affect the rights of an Indemnitee hereunder and (ii) following
a Change of Control, as defined in clause (ii) of Subsection 12(b) of this Article IX, there shall also be required
for approval of any such amendment or repeal the favorable vote of a majority of the votes cast by persons other than the beneficial
owners referred to in clause (ii) of Section 12(b) of this Article IX and their Affiliates and Associates.
15. Indemnification
of Corporate Agents. The Corporation may at the discretion of the Board indemnify any Corporate Agent to the fullest extent
permitted by applicable law; provided, that the Corporation shall in any event indemnify a Corporate Agent to the extent
required by applicable law. The procedures to be followed in the event of such indemnification shall be such as may be determined
by the Board in its discretion; provided, that in the event any procedures are mandated by applicable law, such procedures
shall be followed.
Article X
FORUM FOR ADJUDICATION OF DISPUTES
Unless the Corporation
consents in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive
forum for the resolution of any complaint asserting a cause of action under the Securities Act of 1933. Any person or entity purchasing
or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented
to the provisions of this Article X.
