BYLAWS

 

OF

 

LAWRENCE-DOUGLAS COUNTY BIOSCIENCES AUTHORITY, INC.

(a Kansas Not-for-Profit Corporation)

 

 

ARTICLE I
Offices

 

            The initial principal office of LAWRENCE-DOUGLAS COUNTY BIOSCIENCES AUTHORITY, INC. (the “Corporation”) in the State of Kansas shall be located at 734 Vermont Street, Lawrence, Kansas 66044.  The Corporation may have such other offices, either within or outside the State of Kansas, as the activities of the Corporation may require from time to time.

 

            The initial resident agent and registered office of the Corporation shall be the Corporation itself at 734 Vermont Street, Lawrence, Kansas, 66044.

 

ARTICLE II
Objects, Purposes and Powers

 

The Corporation is organized exclusively to be a corporation within the meaning of Section 501(c)(6) of the Internal Revenue Code of 1986, as amended (the “Code”), or the corresponding section of any future federal tax code.  The Corporation’s purposes shall include, but not be limited to, the receipt, administration, and expenditure of funds for the development and promotion of the bioscience industry and bioscience companies located or actively functioning in Douglas County, Kansas, and for economic development generally in Douglas County, Kansas.  To enable the Corporation to carry out such purposes, it shall have the power to do any and all lawful acts and to engage in any and all lawful activities, alone or in conjunction with others, which may be necessary, proper or suitable, directly or indirectly, for the attainment of any of the purposes for which the Corporation is organized, and the Corporation shall have and shall exercise all the powers conferred by the provisions of the Kansas General Corporation Code not outside the scope of these Bylaws.

 

No part of the net earnings or assets of the Corporation shall inure to the benefit of, or be distributable to, its members, directors, officers, contributors, or other persons in their private capacity, except that the Corporation shall be authorized and empowered to pay reasonable compensation for services actually rendered and make payments and distributions in furtherance of the purposes set forth in this Article.

 

Notwithstanding any other provision, the Corporation shall not carry on any activity not permitted to be carried on by an organization exempt from federal income tax under Section 501(c)(6) of the Code,.

 

ARTICLE III

Members

 

Section 1.         Initial Members.  The members of the Board of Directors of the Corporation shall comprise the Members of the Corporation. 

 

            Section 2.         Additional Members.  Additional Members may be admitted to membership in the Corporation on such terms and conditions and according to such procedures as may be established from time to time by the Board of Directors.

 

 

ARTICLE IV

Directors

 

Section 1.      General Powers. The affairs of the Corporation shall be managed by its Board of Directors.  Subject to the limitations of the Articles of Incorporation, these Bylaws, and the Kansas Corporation Code, all corporate powers shall be exercised by or under the authority of, and the conduct and affairs of the Corporation shall be controlled by, the Board of Directors.

 

Section 2.      Number, Class and Term of Office. 

 

            (a)        Number.  The authorized number of directors to constitute the Board shall be not less than four (4) and not more than seven (7).  The Board shall include the following four (4) designated persons: (i) the designee of the City Commission of Lawrence, Kansas; (ii) the designee of the Board of Commissioners of Douglas County, Kansas; (iii) the designee of the Board of Directors of the Lawrence-Douglas County Chamber of Commerce; and (iv) the designee of the Chancellor of the University of Kansas.

 

            (b)        Class.  In the event the Board consists of more than four (4) members, the Board of Directors shall consist of two (2) classes.  One class (“Class A”) shall be comprised of the four designated members under subparagraph (a) above. The other class (“Class B”) shall be comprised of three (3) persons, two (2) of which shall be representatives of entities interested in the bioscience industry and one of which shall be an “at-large” member who is a resident of Lawrence or Douglas County, Kansas. The Class B members of the Board of Directors shall be appointed by the Class A members of the Board of Directors.  In the event of a death, resignation or expiration of term of a Class B member of the Board of Directors, the Class A members of the Board of Directors may fill such vacancy or vacancies by affirmative vote of a majority of such Class A Directors. 

 

            (c)        Term.  The Class B members of the Board of Directors shall have three (3) year terms and the terms shall be staggered so that only one Class B Director’s term shall expire in each year.  

 

            (d)        Ex-Officio Members.  The Board of Directors shall also include non-voting ex-officio members comprised of: (i) the President of Lawrence Regional Technology Center; (ii) the City Manager of the City of Lawrence, Kansas; (iii) the County Administrator of Douglas County, Kansas; (iv) the President of the Lawrence-Douglas County Chamber of Commerce; and (v) such other individuals as the Board of Directors designates. 

 

Section 3.      Annual Meetings.  The annual meeting of the Board of Directors shall be held at such time and place as determined by the Board of Directors, pursuant to notice, which meeting shall be held for the purpose of transacting such business as may come before the meeting.  If the day fixed for the annual meeting shall be a legal holiday, such meeting shall be held on the next succeeding business day.

 

Section 4.     Regular Meetings.  The Board of Directors may provide by resolution for the time and place for holding regular meetings of the Board.

 

Section 5.      Special Meetings.  Special meetings of the Board of Directors may be called by the President, or by a majority of the Directors. 

 

Section 6.      Notice.  Notice of any meeting shall be given at least three (3) days previous thereto by written notice delivered personally, by mail via the United States Postal Service, by facsimile to a Director at his designated facsimile number, or by electronic mail to a Director’s designated electronic mail address.  If mailed, such notice shall be deemed to be delivered when deposited in the United States mail in a sealed envelope so addressed, with postage thereon prepaid.  Any Director may waive notice of any meeting.  The attendance of a Director at any meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

 

Section 7.      Quorum and Voting.  A majority plus one of the Directors shall constitute a quorum for the transaction of business at any meetings of the Board of Directors; provided that if less than a quorum of the Directors are present at said meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice.  Each Director present shall be entitled to one (1) vote upon each matter submitted to a vote at any such meeting.  Unless specifically provided for elsewhere in these Bylaws, the affirmative vote of a majority of the Directors present at a meeting of the Directors at which a quorum is present shall be the act of the Board of Directors.

 

Section 8.      Meetings by Conference Telephone or Similar Communications Equipment.  A Director may participate in any board meeting 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 subsection shall constitute presence in person at such meeting.

 

Section 9.      Action by Unanimous Consent.  Any action required or permitted to be taken at any meeting of the Board of Directors, any committee thereof, or any other governing body of the Corporation may be taken without a meeting if all voting members of the Board, the committee or other governing body, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of the Board, the committee or other governing body.

 

Section 10.    Committees.

 

(a)          Committees Generally.  The Board may designate, by resolution passed by a majority of the whole Board, one or more committees of the Board.  Each committee shall consist of one or more designated Directors.  The Board of Directors, or the Chairman of the Board, may also from time to time appoint special advisory committees, the members of which may but need not be Directors, which shall have none of the authority of the Board of Directors, but shall report and make recommendations to the Board of Directors with respect to specified subjects.

 

(b)         Meetings By Conference Telephone or Similar Communica­tions Equipment.  Unless otherwise restricted by the Articles or these Bylaws, members of any committee designated by the Board may participate in a meeting of such committee by means of 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 in such manner shall constitute presence in person at such meeting.

 

(c)          Committee Action Without a Meeting.  Unless otherwise restricted by the Articles or these Bylaws, any action required or permitted to be taken at any meeting of a committee may be taken without a meeting if all members of such committee consent thereto in writing.  Any such writing shall be filed with the minutes of proceedings of such commit­tee.

 

            Section 11.    Compensation.  Directors shall not receive any stated salary for their service as a Director.  Nothing herein shall preclude any Director from serving the Corporation in any other capacity as an agent, employee or otherwise, and receiving compensation for such service.

 

ARTICLE V

Officers

 

Section 1.      Officers.  The officers of the Corporation shall be a President, a Treasurer and a Secretary.  The Corporation may also have one or more Vice Presidents.

 

Section 2.      Election and Term of Office.  The officers of the Corporation shall be elected by of the Board of Directors from among the persons comprising the Board of Directors at the annual meeting of the Board of Directors.  The term for each office shall be for one (1) year.

 

Section 3.      Removal.  Any officer or agent elected or appointed by the Board of Directors may be removed upon a vote by the Board of Directors whenever, in its judgment, the best interests of the Corporation would be served thereby.

 

Section 4.      Vacancies.  A vacancy in any office because of death, resignation, removal, or otherwise, may be filled upon a vote by the Board of Directors for the unexpired portion of the term.

 

Section 5.      President.  The President shall preside at all meetings of the members and of the Board of Directors.  The President may sign any documents and instruments which the Board of Directors autho­rizes to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the Corporation, or shall be required by law to be otherwise signed or executed; and in general shall perform all duties incident to the office of the President and such other duties as may be prescribed by the Board of Direc­tors from time to time.

 

Section 6.      Vice President.  In the absence of the President, or in the event of his inability or refusal to act, the Vice President shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all restrictions upon the President.  Any Vice President shall perform such other duties as from time to time may be assigned by the President or by the Board of Directors. 

 

Section 7.      Treasurer.  If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his duties (at the expense of the Corporation) in such sum and with such surety or sureties as the Board of Directors shall determine.  The Treasurer shall:  have charge and custody of and be responsible for all funds and securities of the Corporation and, in general, perform all the duties incident to the office of the Treasurer and such other duties as from time to time may be assigned by the President or by the Board of Directors.

 

Section 8.      Secretary.  The Secretary shall:  (a) keep the minutes of the Board of Directors’ meetings in one (1) or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corpo­rate records; and (d) in general perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned by the President or by the Board of Directors.

 

Section 9.      Compensation.  The officers shall not be compensated; however the Board of Directors may authorize reimbursement of expenses incurred by officers in performance of their duties on behalf of the Corporation.

 

 

 

 

 

 

ARTICLE VI

Contracts, Loans, Checks, Deposits and Custodians

 

Section 1.      Contracts.  The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances.

 

Section 2.      Loans.  No loans shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors.  Such authority may be general or confined to specific instances.

 

Section 3.      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 the Corporation shall be signed by such officer or officers, agent or agents of the Corporation and in such manner as shall from time to time be determined by resolution of the Board of Directors.

 

Section 4.      Deposits.  All funds of the Corporation shall be deposited from time to time to the credit of the Corporation in such banks, trust companies or other deposito­ries as the Board of Directors may select.

 

Section 5.      Custodians.  The Board of Directors may from time to time designate a bank, trust company, or depository as custodian of all funds and properties of the Corporation, which custodian shall maintain a record of all receipts, expendi­tures, income and expenses of the Corporation and/or perform such ministerial duties as the Board of Directors by written direction may instruct, the custodian to receive such fees for its services as may from time to time be agreed upon by the Board of Directors and the custodian.

 

 

ARTICLE VII

Agents and Attorneys

 

            The Board of Directors may appoint such agents, attorneys, and attorneys‑in‑fact of the Corporation as it may deem proper, and may, by written power of attorney, authorize such agents, attorneys or attorneys‑in‑fact to represent it and for it and in its name, place and stead, and for its use and benefit to transact any and all business which said Corporation is authorized to transact, and in its name, place and stead, and as its corporate act and deed, to sign, acknowledge and execute any and all contracts and instruments, in writing necessary or convenient in the transaction of such business as fully to all intents and purposes as said Corporation might or could do if it acted by and through its regularly elected and qualified officers.

 

 

 

 

 

ARTICLE VIII

Fiscal Year

 

            The fiscal year of the Corporation shall be January 1 to December 31.

 

 

ARTICLE IX

Waiver of Notice

 

            Whenever any notice is required to be given pursuant to Kansas law, the Articles or these Bylaws, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice.

 

 

ARTICLE X

Indemnification

 

Section 1.      General Indemnity.  The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, or proceedings, whether civil, criminal, administrative or investigative, other than an action by or in the right of the Corporation, by reason of the fact that he/she is or was 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 expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him/her in connection with such action, suit, or proceedings if he/she acted in good faith and in a manner he/she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his/her conduct was unlawful.  The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he/she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his/her conduct was unlawful.

 

Section 2.      Limitations on Indemnity.  The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that he/she is or was 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 expenses, including attorneys’ fees, and amount paid in settlement actually and reasonably incurred by him/her in connection with the defense or settlement of the action or suit if he/she acted in good faith and in a manner he/she reasonably believe to be in or not opposed to the best interests of the Corporation; except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his/her duty to the Corporation unless and only to the extent that the court in which the action or suit was brought determines upon application that, despite the adjudication of liability and in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses which the court shall deem proper.

 

Section 3.      Attorneys’ Fees.  To the extent that a director, officer, employee or agent of the Corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subsections 1 and 2 of this Article, or in defense of any claim, issue or matter therein, he/she shall be indemnified against expenses, including attorneys’ fees, actually and reasonably incurred by him/her in connection with the action, suit or proceeding.

 

Section 4.      Determination of Board.  Any indemnification under subsections 1 and 2 of this section, unless ordered by a court, shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances because he/she has met the applicable standard of conduct set forth in this section.  The determination shall be made by the Board of Directors by a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding, or if such a quorum is not obtainable, or even if obtainable, a quorum of disinterested directors so directs or by independent legal counsel in a written opinion.

 

Section 5.      Non-Exclusive.  The indemnification and advancement of expenses provided by, or granted pursuant to this Article, shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any other provision of law, the Articles of Incorporation or any agreement, vote of disinterested directors or otherwise, both as to action in his/her official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

 

 

ARTICLE XI

Liability for Debt of Corporation

 

            The Directors, officers and members of the Corporation shall not be personally liable for the payment of the Corporation’s debts, except as they may be liable by reason of (a) breach of their duty of loyalty to the Corporation; (b) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law; or (c) any transaction in which they derived an improper benefit.

 

 

ARTICLE XII

Income and Property of the Corporation

 

            All income and properties of the Corporation shall be devoted exclusively to the purposes as provided in the Articles of Incorporation of the Corporation.  The Board of Directors may adopt such policies, regulations, and procedures governing the management and/or disbursement of funds for such purposes as in its opinion are reasonably calculated to carry out such purposes as set forth in said Articles.

 

ARTICLE XIII

Prohibited Transactions

 

            No provision of the Articles of Incorporation or these Bylaws shall in any way be construed as permitting the Corporation, whether through its Board of Directors, its officers, agents, or other party acting in its behalf, to allow the net income or property of the Corporation to inure to the private benefit of any incorporator, Director, officer or individual having a personal or private interest in the activities of the Corporation.

 

 

ARTICLE XIV

Dissolution

 

Upon the dissolution of the Corporation, the Board of Directors shall, after paying or making provisions for the payment of all of the liabilities of the Corporation, dispose of all the assets of the Corporation to or for the benefit of organizations qualifying as organizations under Section 501(c)(6) of the Code as the Board of Directors of the Corporation shall determine.  Any such assets not so disposed of shall be disposed of by the District Court of the county in which the principal office of the Corporation is then located, exclusively for such purposes or to such organization or organizations, as said court shall determine, which are organized and operated exclusively for such purposes.

 

 

ARTICLE XV

Amendments

 

 

New Bylaws may be adopted or these Bylaws may be amended or repealed upon the vote of the Board of Directors at any regular or special meeting thereof.  Notice of any amendment of the Bylaws by the Board of Directors shall be given to each member of the Board of Directors within ten (10) days after the date of such amendments by the Board.

 


 

CERTIFICATE

 

The undersigned, hereby certifies:

 

(a)        That he or she is the duly elected, qualified and acting Secretary of LAWRENCE-DOUGLAS COUNTY BIOSCIENCES AUTHORITY, INC., a Kansas Nonprofit Corporation; and

 

(b)        That, to the best of the knowledge of the undersigned, the foregoing Bylaws, comprising nine (9) pages constitute the original Bylaws of the  Corporation; and

 

(c)        The foregoing are the duly adopted Bylaws of the Corporation now in full force and effect.

 

IN TESTIMONY WHEREOF, this Certificate has been executed this ________ day of ___________________, 2006.

 

 

 

__________________________________________

                                                                        Printed name:  ___________________

Title:  Secretary, Lawrence-Douglas County Biosciences Authority, Inc.