UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 


 

Date of Report (Date of earliest event reported): July 2, 2010

 

Quad/Graphics, Inc.

(Exact name of registrant as specified in its charter)

 

Wisconsin

 

001-34806

 

39-1152983

(State or other
jurisdiction of
incorporation)

 

(Commission File
Number)

 

(IRS Employer
Identification No.)

 

N63 W23075 Highway 74 Sussex, Wisconsin 53089-2827

(Address of principal executive offices, including zip code)

 

(414) 566-6000

(Registrant’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.01 .                Completion of Acquisition or Disposition of Assets .

 

On July 2, 2010, Quad/Graphics, Inc., a Wisconsin corporation (“Quad/Graphics”), completed its acquisition of World Color Press Inc., a Canadian corporation (“World Color Press”).  The acquisition was effected by way of a court approved plan of arrangement in accordance with the terms of an arrangement agreement (the “Arrangement Agreement”), dated as of January 25, 2010, between Quad/Graphics and World Color Press, as acceded to by 7345933 Canada Inc., the acquisition subsidiary of Quad/Graphics.  The arrangement was approved by Quad/Graphics’ shareholders and World Color Press’ shareholders, and the final order approving the arrangement was granted by the Québec Superior Court (Commercial Division) on June 28, 2010.

 

At the completion of the arrangement, each outstanding World Color Press common share, including the common shares issued upon conversion of certain World Color Press preferred shares, was converted into the right to receive 0.2154 shares of class A common stock of Quad/Graphics.  In addition to the share consideration, former holders of World Color Press common shares are entitled to receive aggregate cash consideration of $48,405,658.83, or approximately $0.56 per share.  The outstanding World Color Press preferred shares that were not converted into World Color Press common shares prior to the completion of the arrangement were redeemed for approximately $8.86 per share.  Immediately following completion of the arrangement, the shareholders of Quad/Graphics who were shareholders prior to completion of the arrangement owned approximately 60% of the outstanding capital stock of Quad/Graphics and the former common shareholders of World Color Press owned approximately 40% of the outstanding capital stock of Quad/Graphics.

 

The issuance of Quad/Graphics’ class A common stock pursuant to the Arrangement Agreement as described above was registered under the Securities Act of 1933, as amended, on Quad/Graphics’ Registration Statement on Form S-4 (File No. 333-165259) originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 5, 2010 and declared effective on May 27, 2010 (the “Registration Statement”).  The proxy circular/prospectus included in the Registration Statement contains additional information about the arrangement.  The Arrangement Agreement is included as part of Annex A to the proxy circular/prospectus included in the Registration Statement and is incorporated herein by reference.  Following the completion of the arrangement, on July 6, 2010, Quad/Graphics’ class A common stock commenced trading on the New York Stock Exchange under the symbol “QUAD”.  A press release announcing the completion of the arrangement is attached to this Current Report on Form 8-K as Exhibit 99.1 and incorporated herein by reference.

 

As described in the Registration Statement, in connection with the arrangement with World Color Press, on April 23, 2010, Quad/Graphics entered into a $1.23 billion debt financing agreement with certain lenders. Borrowings under this financing agreement were used on the July 2, 2010 closing date of the arrangement to fund (1) replacement of Quad/Graphics’ former revolving credit facilities, which had outstanding borrowings of $106.1 million; (2) satisfaction of World Color Press’ bankruptcy-related debt obligations of $571.4 million, which included funding $123.9 million for World Color Press’ unsecured notes; (3) transaction costs of $53.1 million (excluding debt issuance costs); (4) debt issuance costs of $43.7 million; (5) certain “equity payment amounts” (as defined in the Registration Statement) and the World Color Press common cash consideration described above, which in total were $88.5 million; (6) the Quad/Graphics cash distribution of $140.0 million; (7) letters of credit collateralization of $32.0 million; and (8) other obligations arising from the arrangement of $33.3 million.

 

Item 5.02 .                Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers .

 

(a)            Not applicable.

 

2



 

(b)            Not applicable.

 

(c)            Not applicable.

 

(d)            On July 2, 2010, following completion of the arrangement and pursuant to the terms of the Arrangement Agreement, Mark A. Angelson, the former Chairman and Chief Executive Officer of World Color Press, and Thomas O. Ryder, World Color Press’ former lead independent director, were elected to the Quad/Graphics’ board of directors.

 

Mr. Angelson became chair of the integration and consolidation committee of Quad/Graphics’ board of directors and Mr. Ryder became a member of the audit committee of the board.

 

Other than the Arrangement Agreement, which is included as Annex A to the proxy circular/prospectus included in the Registration Statement and incorporated herein by reference, and the transactions contemplated thereby, there are no other arrangements between Messrs. Angelson and Ryder and any other person pursuant to which Messrs. Angelson and Ryder were elected to serve as directors, nor are there any transactions in which Quad/Graphics is a participant in which Mr. Angelson or Mr. Ryder have a material interest.  As non-employee directors, Messrs. Angelson and Ryder will receive the same compensation paid to all non-employee directors of Quad/Graphics.

 

(e)            Effective upon the completion of the arrangement, Quad/Graphics’ board of directors adopted an integration bonus plan (the “Synergy Rewards Program”) for approximately 60 to 70 employees of Quad/Graphics, including Quad/Graphics’ named executive officers, who are expected to be instrumental in, and devote a significant amount of their time to, achieving arrangement synergies.  Under the Synergy Rewards Program, participants will be eligible to receive a cash award to be paid in the first quarter of 2013, contingent on Quad/Graphics’ achievement and maintenance of specified arrangement synergy savings levels ranging from approximately 78% to approximately 144% of previously disclosed potential pre-tax annualized synergies relating to the arrangement.

 

The amount of the cash award under the Synergy Rewards Program, if any, will be from one times the participant’s annual bonus target, for achievement of the threshold synergy savings level, to four times the participant’s annual bonus target, for achievement of the maximum level, with incremental amounts for achievement of synergy savings levels between the threshold and the maximum.  The Synergy Rewards Program will take into account costs to achieve synergies through adjustments by Quad/Graphics’ compensation committee to the award amounts of plus or minus 25%.

 

To receive payment of any award under the Synergy Rewards Program, participants must remain continuously employed by Quad/Graphics or its affiliates until the payment date.  Awards under the Synergy Rewards Program also remain subject to adjustment by Quad/Graphics’ board of directors in its discretion.

 

(f)             Not applicable.

 

Item 5.03 .                Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year .

 

(a)            As previously disclosed in the Registration Statement and included as Annex D to the proxy circular/prospectus included in the Registration Statement, Quad/Graphics’ board of directors approved amendments to Quad/Graphics’ bylaws that became effective upon completion of the arrangement.  In addition to these previously disclosed amendments, Quad/Graphics’ board of directors further amended Quad/Graphics’ bylaws effective upon completion of the arrangement to provide for certain new corporate officer positions.  The foregoing description does not purport to be a complete

 

3



 

description of these further amendments to Quad/Graphics’ bylaws, and is qualified in its entirety by reference to such amendments, a copy of which is attached as Exhibit 3.1 to this Current Report on Form 8-K.  A copy of Quad/Graphics’ bylaws as amended to date is attached as Exhibit 3.2 to this Current Report on Form 8-K.

 

(b)            Not applicable.

 

Item 9.01 .                Financial Statements and Exhibits .

 

(a)            The financial statements of World Color Press required by this Item are incorporated herein by reference to the Consolidated Financial Statements included in the Form 40-F filed by World Color Press with the SEC pursuant to the Securities Exchange Act of 1934 on March 1, 2010 (File No. 001-14118) and to Exhibit 99.2 to the Form 6-K filed by World Color Press with the SEC pursuant to the Securities Exchange Act of 1934 on May 10, 2010.

 

(b)            The pro forma financial information required by this Item is incorporated herein by reference to the sections of the proxy circular/prospectus included in the Registration Statement entitled “Selected Historical and Unaudited Pro Forma Financial Information — Selected Unaudited Pro Forma Condensed Combined Financial Information” and “—Historical and Unaudited Pro Forma Combined Per Share Information,” on pages 18-21 thereof, and “Unaudited Pro Forma Condensed Combined Financial Information,” on pages 198-225 thereof.

 

(c)            Not applicable.

 

(d)            Exhibits .  The following exhibits are being filed herewith:

 

(3.1)

 

July 2, 2010 Amendments to the Amended Bylaws of Quad/Graphics, Inc.

 

 

 

(3.2)

 

Amended Bylaws of Quad/Graphics, Inc., as amended through July 2, 2010.

 

 

 

(9.1)

 

Amended and Restated Voting Trust Agreement, dated as of June 25, 2010, by Betty E. Quadracci, J. Joel Quadracci, Elizabeth M. Quadracci-Harned and David A. Blais, as trustees.

 

 

 

(99.1)

 

Press Release of Quad/Graphics, Inc., dated July 2, 2010.

 

4



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 9, 2010

 

 

 

 

QUAD/GRAPHICS, INC.

 

 

 

 

 

By:

/s/ Andrew R. Schiesl

 

 

Andrew R. Schiesl

 

 

Vice President & General Counsel

 

5



 

QUAD/GRAPHICS, INC.

 

Exhibit Index to Current Report on Form 8-K

Dated July 2, 2010

 

Exhibit

 

 

Number

 

 

 

 

 

(3.1)

 

July 2, 2010 Amendments to the Amended Bylaws of Quad/Graphics, Inc.

 

 

 

(3.2)

 

Amended Bylaws of Quad/Graphics, Inc., as amended through July 2, 2010.

 

 

 

(9.1)

 

Amended and Restated Voting Trust Agreement, dated as of June 25, 2010, by Betty E. Quadracci, J. Joel Quadracci, Elizabeth M. Quadracci-Harned and David A. Blais, as trustees.

 

 

 

(99.1)

 

Press Release of Quad/Graphics, Inc., dated July 2, 2010.

 

6


Exhibit 3.1

 

AMENDED BYLAWS

 

OF

 

QUAD/GRAPHICS, INC.

(a Wisconsin corporation)

 

 

Effective __/__ 7/2/10

Further Amended 7/2 /10

 



 

ARTICLE I.  OFFICES

 

1.01          Principal and Business Offices .  The corporation may have such principal and other business offices, either within or without the State of Wisconsin, as the Board of Directors may designate or as the business of the corporation may require from time to time.

 

1.02          Registered Office .  The registered office of the corporation required by the Wisconsin Business Corporation Law to be maintained in the State of Wisconsin may be, but need not be, identical with the principal office in the State of Wisconsin, and the address of the registered office may be changed from time to time by the Board of Directors or by the registered agent.  The business office of the registered agent of the corporation shall be identical to such registered office.

 

ARTICLE II.  SHAREHOLDERS

 

2.01          Annual Meeting .  The annual meeting of the shareholders (the “Annual Meeting”) shall be held at such time and on such date as may be fixed by or under the authority of the Board of Directors.  In fixing a meeting date for any Annual Meeting, the Board of Directors may consider such factors as it deems relevant within the good faith exercise of its business judgment.  At each Annual Meeting, the shareholders shall elect that number of directors equal to the number of directors in the class whose term expires at the time of such meeting.  At any such Annual Meeting, only other business properly brought before the meeting in accordance with Section 2.14 of these bylaws may be transacted.  If the election of directors shall not be held on the date fixed as herein provided for any Annual Meeting, or any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of shareholders (a “Special Meeting”) as soon thereafter as is practicable.

 

2.02          Special Meetings .

 

(a)            A Special Meeting may be called only by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President and shall be called by the corporation upon the demand, in accordance with this Section 2.02, of the holders of record of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting.

 

(b)            In order that the corporation may determine the shareholders entitled to demand a Special Meeting, the Board of Directors may fix a record date to determine the shareholders entitled to make such a demand (the “Demand Record Date”).  The Demand Record Date shall not precede the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors and shall not be more than ten (10) days after the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors.  Any shareholder of record seeking to have shareholders demand a Special Meeting shall, by sending written notice to the Secretary of the corporation by hand or by certified or registered mail, return receipt requested, request the Board of Directors to fix a Demand Record Date.  The Board of Directors shall promptly, but in all events within ten (10) days after the date on which a valid request to fix a Demand Record Date is received, adopt a resolution fixing the Demand Record Date and shall make a public announcement of such Demand Record Date.  If no Demand Record Date has been fixed by the Board of Directors within ten (10) days after the date on which such request is received by the Secretary, the Demand Record Date shall be the 10th day after the first date on which a valid written request to set a Demand Record Date is received by the Secretary.  To be valid, such written request

 



 

shall set forth the purpose or purposes for which the Special Meeting is to be held, shall be signed by one or more shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative) and shall set forth all information about each such shareholder and about the beneficial owner or owners, if any, on whose behalf the request is made that would be required to be set forth in a shareholder’s notice described in paragraph (a) (ii) of Section 2.14 of these bylaws.

 

(c)            In order for a shareholder or shareholders to demand a Special Meeting, a written demand or demands for a Special Meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting must be delivered to the corporation.  To be valid, each written demand by a shareholder for a Special Meeting shall set forth the specific purpose or purposes for which the Special Meeting is to be held (which purpose or purposes shall be limited to the purpose or purposes set forth in the written request to set a Demand Record Date received by the corporation pursuant to paragraph (b) of this Section 2.02), shall be signed by one or more persons who as of the Demand Record Date are shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative), and shall set forth the name and address, as they appear in the corporation’s books, of each shareholder signing such demand and the class and number of shares of the corporation which are owned of record and beneficially by each such shareholder, shall be sent to the Secretary by hand or by certified or registered mail, return receipt requested, and shall be received by the Secretary within seventy (70) days after the Demand Record Date.

 

(d)            The corporation shall not be required to call a Special Meeting upon shareholder demand unless, in addition to the documents required by paragraph (c) of this Section 2.02, the Secretary receives a written agreement signed by each Soliciting Shareholder (as defined below), pursuant to which each Soliciting Shareholder, jointly and severally, agrees to pay the corporation’s costs of holding the Special Meeting, including the costs of preparing and mailing proxy materials for the corporation’s own solicitation, provided that if each of the resolutions introduced by any Soliciting Shareholder at such meeting is adopted, and each of the individuals nominated by or on behalf of any Soliciting Shareholder for election as a director at such meeting is elected, then the Soliciting Shareholders shall not be required to pay such costs.  For purposes of this paragraph (d), the following terms shall have the meanings set forth below:

 

(i)             “Affiliate” of any Person (as defined herein) shall mean any Person controlling, controlled by or under common control with such first Person.

 

(ii)            “Participant” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(iii)           “Person” shall mean any individual, firm, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, trust, unincorporated organization or other entity.

 

(iv)           “Proxy” shall have the meaning assigned to such term in Rule 14a-1 promulgated under the Exchange Act.

 

2



 

(v)            “Solicitation” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Exchange Act.

 

(vi)           “Soliciting Shareholder” shall mean, with respect to any Special Meeting demanded by a shareholder or shareholders, any of the following Persons:

 

(A)           if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is ten (10) or fewer, each shareholder signing any such demand;

 

(B)            if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is more than ten (10), each Person who either (I) was a Participant in any Solicitation of such demand or demands or (II) at the time of the delivery to the corporation of the documents described in paragraph (c) of this Section 2.02 had engaged or intends to engage in any Solicitation of Proxies for use at such Special Meeting (other than a Solicitation of Proxies on behalf of the corporation); or

 

(C)            any Affiliate of a Soliciting Shareholder, if a majority of the directors then in office determine, reasonably and in good faith, that such Affiliate should be required to sign the written notice described in paragraph (c) of this Section 2.02 and/or the written agreement described in this paragraph (d) in order to prevent the purposes of this Section 2.02 from being evaded.

 

(e)            Except as provided in the following sentence, any Special Meeting shall be held at such hour and day as may be designated by whichever of the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President shall have called such meeting.  In the case of any Special Meeting called by the corporation upon the demand of shareholders (a “Demand Special Meeting”), such meeting shall be held at such hour and day as may be designated by the Board of Directors; provided, however, that the date of any Demand Special Meeting shall be not more than seventy (70) days after the Meeting Record Date (as defined in Section 2.06 hereof); and provided further that in the event that the directors then in office fail to designate an hour and date for a Demand Special Meeting within ten (10) days after the date that valid written demands for such meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting are delivered to the corporation (the “Delivery Date”), then such meeting shall be held at 2:00 P.M. Central Time on the 100th day after the Delivery Date or, if such 100th day is not a Business Day (as defined below), on the first preceding Business Day.  In fixing a meeting date for any Special Meeting, the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may consider such factors as it or he or she deems relevant within the good faith exercise of its or his or her business judgment, including, without limitation, the nature of the action proposed to be taken, the facts and circumstances surrounding any demand for such meeting, and any plan of the Board of Directors to call an Annual Meeting or a Special Meeting for the conduct of related business.

 

(f)             The corporation may engage regionally or nationally recognized independent inspectors of elections to act as an agent of the corporation for the purpose of promptly performing a ministerial review of the validity of any purported written demand or demands for a Special Meeting received by the Secretary.  For the purpose of permitting the inspectors to perform such review, no purported demand shall be deemed to have been delivered to the corporation until

 

3



 

the earlier of (i) five (5) Business Days following receipt by the Secretary of such purported demand and (ii) such date as the independent inspectors certify to the corporation that the valid demands received by the Secretary represent at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting.  Nothing contained in this paragraph (f) shall in any way be construed to suggest or imply that the Board of Directors or any shareholder shall not be entitled to contest the validity of any demand, whether during or after such five (5) Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto).

 

(g)            For purposes of these bylaws, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Wisconsin are authorized or obligated by law or executive order to close.

 

2.03          Place of Meeting .  The Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may designate any place, either within or without the State of Wisconsin, as the place of meeting for an Annual Meeting or Special Meeting or for any postponement or adjournment thereof.  If no designation is made, the place of meeting shall be the principal office of the corporation.  Any meeting may be adjourned to reconvene at any place designated by vote of the Board of Directors or by the Chairman of the Board, the Chief Executive Officer or the President.

 

2.04          Notice of Meeting .  Written notice stating the date, time and place of any meeting of shareholders shall be delivered not less than ten (10) days nor more than sixty (60) days before the date of the meeting (unless a different time period is provided by the Wisconsin Business Corporation Law or the articles of incorporation), either personally, by mail or by electronic transmission, by or at the direction of the Board of Directors, the Chairman of the Board, the Chief Executive Officer, the President or the Secretary, to each shareholder of record entitled to vote at such meeting and to such other persons as required by the Wisconsin Business Corporation Law.  In the event of any Demand Special Meeting, such notice of meeting shall be sent not more than thirty (30) days after the Delivery Date.  Notice pursuant to this Section 2.04 shall be deemed to be effective (a) if mailed, when deposited in the United States mail, addressed to the shareholder at his or her address as it appears on the stock record books of the corporation, with postage thereon prepaid, (b) if personally delivered, when received or (c) if sent by electronic transmission, when electronically transmitted to a shareholder in a manner authorized by the shareholder.  Unless otherwise required by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation, a notice of an Annual Meeting need not include a description of the purpose for which the meeting is called.  In the case of any Special Meeting, (a) the notice of meeting shall describe any business that the Board of Directors shall have theretofore determined to bring before the meeting and (b) in the case of a Demand Special Meeting, the notice of meeting (i) shall describe any business set forth in the statement of purpose of the demands received by the corporation in accordance with Section 2.02 of these bylaws and (ii) shall contain all of the information required in the notice received by the corporation in accordance with Section 2.14(b) of these bylaws.  If an Annual Meeting or Special Meeting is adjourned to a different date, time or place, the corporation shall not be required to give notice of the new date, time or place if the new date, time or place is announced at the meeting before adjournment; provided, however, that if a new Meeting Record Date (as defined below) for an adjourned meeting is or must be fixed, the corporation shall give notice of the adjourned meeting to persons who are shareholders as of the new Meeting Record Date.

 

4



 

2.05          Waiver of Notice .  A shareholder may waive any notice required by the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws before or after the date and time stated in the notice.  The waiver shall be in writing and signed by the shareholder entitled to the notice, contain the same information that would have been required in the notice under applicable provisions of the Wisconsin Business Corporation Law (except that the time and place of meeting need not be stated) and be delivered to the corporation for inclusion in the corporate records.  A shareholder’s attendance at any Annual Meeting or Special Meeting, in person or by proxy, waives objection to all of the following:  (a) lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting or promptly upon arrival objects to holding the meeting or transacting business at the meeting; and (b) consideration of a particular matter at the meeting that is not within the purpose described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

 

2.06          Fixing of Record Date .  The Board of Directors may fix in advance a date not less than ten (10) days and not more than seventy (70) days prior to the date of an Annual Meeting or Special Meeting as the record date for the determination of shareholders entitled to notice of, or to vote at, such meeting (the “Meeting Record Date”).  In the case of any Demand Special Meeting, (i) the Meeting Record Date shall not be later than the 30th day after the Delivery Date and (ii) if the Board of Directors fails to fix the Meeting Record Date within thirty (30) days after the Delivery Date, then the close of business on such 30th day shall be the Meeting Record Date.  The shareholders of record on the Meeting Record Date shall be the shareholders entitled to notice of and to vote at the meeting.  Except as provided by the Wisconsin Business Corporation Law for a court-ordered adjournment, a determination of shareholders entitled to notice of and to vote at an Annual Meeting or Special Meeting is effective for any adjournment of such meeting unless the Board of Directors fixes a new Meeting Record Date, which it shall do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.  The Board of Directors may also fix in advance a date as the record date for the purpose of determining shareholders entitled to take any other action or determining shareholders for any other purpose.  Such record date shall be not more than seventy (70) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.  The record date for determining shareholders entitled to a distribution (other than a distribution involving a purchase, redemption or other acquisition of the corporation’s shares) or a share dividend is the date on which the Board of Directors authorizes the distribution or share dividend, as the case may be, unless the Board of Directors fixes a different record date.

 

2.07          Shareholders’ List for Meetings .  After a Meeting Record Date has been fixed, the corporation shall prepare a list of the names of all of the shareholders entitled to notice of the meeting.  The list shall be arranged by class or series of shares, if any, and show the address of and number of shares held by each shareholder.  Such list shall be available for inspection by any shareholder, beginning two (2) business days after notice of the meeting is given for which the list was prepared and continuing to the date of the meeting, at the corporation’s principal office or at a place identified in the meeting notice in the city where the meeting will be held.  A shareholder or his or her agent may, on written demand, inspect and, subject to the limitations imposed by the Wisconsin Business Corporation Law, copy the list, during regular business hours and at his or her expense, during the period that it is available for inspection pursuant to this Section 2.07.  The corporation shall make the shareholders’ list available at the meeting and any shareholder or his or her agent or attorney may inspect the list at any time during the meeting or any adjournment thereof.  Refusal or failure to prepare or make available the shareholders’ list shall not affect the validity of any action taken at a meeting of shareholders.

 

5



 

2.08          Quorum and Voting Requirements; Postponements; Adjournments .

 

(a)            Shares entitled to vote as a separate voting group may take action on a matter at any Annual Meeting or Special Meeting only if a quorum of those shares exists with respect to that matter.  If the corporation has only one class of stock outstanding, such class shall constitute a separate voting group for purposes of this Section 2.08.  Except as otherwise provided in the articles of incorporation or the Wisconsin Business Corporation Law, a majority of the votes entitled to be cast on the matter shall constitute a quorum of the voting group for action on that matter.  Once a share is represented for any purpose at any Annual Meeting or Special Meeting, other than for the purpose of objecting to holding the meeting or transacting business at the meeting, it is considered present for purposes of determining whether a quorum exists for the remainder of the meeting and for any adjournment of that meeting unless a new Meeting Record Date is or must be set for the adjourned meeting.  If a quorum exists, except in the case of the election of directors, action on a matter shall be approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless the articles of incorporation or the Wisconsin Business Corporation Law requires a greater number of affirmative votes.  Unless otherwise provided in the articles of incorporation, each director to be elected shall be elected by a plurality of the votes cast by the shares entitled to vote in the election of directors at an Annual Meeting or Special Meeting at which a quorum is present.

 

(b)            The Board of Directors acting by resolution may postpone and reschedule any previously scheduled Annual Meeting or Special Meeting; provided, however, that a Demand Special Meeting shall not be postponed beyond the 100th day following the Delivery Date.  Any Annual Meeting or Special Meeting may be adjourned from time to time, whether or not there is a quorum, (i) at any time, upon a resolution of shareholders if the votes cast in favor of such resolution by the holders of shares of each voting group entitled to vote on any matter theretofore properly brought before the meeting exceed the number of votes cast against such resolution by the holders of shares of each such voting group or (ii) at any time prior to the transaction of any business at such meeting, by the Chairman of the Board, the Chief Executive Officer or the President or pursuant to a resolution of the Board of Directors.  No notice of the time and place of adjourned meetings need be given except as required by the Wisconsin Business Corporation Law.  At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified.

 

2.09          Conduct of Meeting .  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in their absence, any person chosen by the shareholders present shall call any Annual Meeting or Special Meeting to order and shall act as chairperson of the meeting, and the Secretary of the corporation shall act as secretary of all meetings of the shareholders, but, in the absence of the Secretary, the presiding officer may appoint any other person to act as secretary of the meeting.

 

2.10          Proxies .  At all meetings of shareholders, a shareholder entitled to vote may vote his or her or its shares in person or by proxy.  A shareholder entitled to vote at any meeting of shareholders may authorize another person to act for the shareholder by appointing the person as proxy.  Without limiting the manner in which a shareholder may appoint a proxy, a shareholder or the shareholder’s authorized officer, director, employee, agent or attorney-in-fact may use any of the following as a valid means to make such an appointment:

 

6



 

(a)            Appointment of a proxy in writing by signing or causing the shareholder’s signature to be affixed to an appointment form by any reasonable means, including, but not limited to, by facsimile signature.

 

(b)            Appointment of a proxy by transmitting or authorizing the transmission of an electronic transmission of the appointment to the person who will be appointed as proxy or to a proxy solicitation firm, proxy support service organization or like agent authorized to receive the transmission by the person who will be appointed as proxy.  Every electronic transmission shall contain, or be accompanied by, information that can be used to reasonably determine that the shareholder transmitted or authorized the transmission of the electronic transmission.  Any person charged with determining whether a shareholder transmitted or authorized the transmission of the electronic transmission shall specify the information upon which the determination is made.

 

An appointment of a proxy is effective when a signed appointment form or an electronic transmission of the appointment is received by the inspector of elections or the officer or agent of the corporation authorized to tabulate votes.  An appointment is valid for eleven (11) months unless a different period is expressly provided in the appointment.  Unless otherwise provided, a proxy may be revoked any time before it is voted, either by appointing a new proxy in accordance with the Wisconsin Business Corporation Law or by oral notice given by the shareholder to the presiding officer during the meeting.  The presence of a shareholder who has made an effective proxy appointment shall not itself constitute a revocation.  The Board of Directors shall have the power and authority to make rules establishing presumptions as to the validity and sufficiency of proxies.

 

2.11          Voting of Shares .

 

(a)            Each outstanding share of Class A Common Stock shall be entitled to one vote, each outstanding share of Class B Common Stock shall be entitled to ten votes and each outstanding share of Class C Common Stock shall be entitled to ten votes upon each matter submitted to a vote at any Annual Meeting or Special Meeting, except to the extent that the voting rights of the shares of any class or classes are enlarged, limited or denied by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation.

 

(b)            Shares held by another corporation, if a sufficient number of shares entitled to elect a majority of the directors of such other corporation is held directly or indirectly by this corporation, shall not be entitled to vote at any Annual Meeting or Special Meeting, but shares held in a fiduciary capacity may be voted.

 

2.12          Action Without Meeting .  Any action required or permitted by the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law to be taken at an Annual Meeting or Special Meeting may be taken without a meeting if a written consent or consents, describing the action so taken, is signed by all of the shareholders entitled to vote with respect to the subject matter thereof and delivered to the corporation for inclusion in the corporate records.

 

2.13          Acceptance of Instruments Showing Shareholder Action .  If the name signed on a vote, consent, waiver or proxy appointment corresponds to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of a shareholder.  If the name signed on a vote, consent, waiver or proxy

 

7



 

appointment does not correspond to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of the shareholder if any of the following apply:

 

(a)            The shareholder is an entity and the name signed purports to be that of an officer or agent of the entity.

 

(b)            The name purports to be that of a personal representative, administrator, executor, guardian or conservator representing the shareholder and, if the corporation requests, evidence of fiduciary status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

 

(c)            The name signed purports to be that of a receiver or trustee in bankruptcy of the shareholder and, if the corporation requests, evidence of this status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

 

(d)            The name signed purports to be that of a pledgee, beneficial owner, or attorney-in-fact of the shareholder and, if the corporation requests, evidence acceptable to the corporation of the signatory’s authority to sign for the shareholder is presented with respect to the vote, consent, waiver or proxy appointment.

 

(e)            Two or more persons are the shareholders as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-owners and the person signing appears to be acting on behalf of all co-owners.

 

The corporation may reject a vote, consent, waiver or proxy appointment if the Secretary or other officer or agent of the corporation who is authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory’s authority to sign for the shareholder.

 

2.14          Notice of Shareholder Business and Nomination of Directors .

 

(a)            Annual Meetings .

 

(i)             Nominations of persons for election to the Board of Directors of the corporation and the proposal of business to be considered by the shareholders may be made at an Annual Meeting (A) pursuant to the corporation’s notice of meeting, (B) by or at the direction of the Board of Directors or (C) by any shareholder of the corporation who is a shareholder of record at the time of giving of notice provided for in this bylaw and who is entitled to vote at the meeting and complies with the procedures set forth in this Section 2.14; clause (C) shall be the exclusive means for a shareholder to make nominations or submit other business (other than matters properly brought under Rule 14a-8 under the Exchange Act and included in the corporation’s notice of meeting) before an Annual Meeting.

 

(ii)            Without qualification, for nominations or other business to be properly brought before an Annual Meeting by a shareholder pursuant to clause (C) of paragraph (a)(i) of this Section 2.14, the shareholder must have given timely notice thereof in writing to the Secretary of the corporation.  To be timely, a shareholder’s notice shall be received by the Secretary of the corporation at the principal offices of the corporation on or before December 31 of the year

 

8



 

immediately preceding the Annual Meeting; provided, however, that in the event that the date of the Annual Meeting is on or after May 1 in any year, notice by the shareholder to be timely must be so received not later than the close of business on the day which is determined by adding to December 31 of the year immediately preceding such Annual Meeting the number of days starting with May 1 and ending on the date of the Annual Meeting in such year.  Such shareholder’s notice shall be signed by the shareholder of record who intends to make the nomination or introduce the other business (or his, her or its duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on this corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination or proposal is made; (B) the class and number of shares of the corporation which are beneficially owned by, and any other economic or equity interests in the corporation (including but not limited to swaps, futures, hedges, securities loans, options or other rights to acquire, voting rights, short interests, dividend rights and/or any other equity derivatives) owned or held by, such shareholder or beneficial owner or owners; (C) a representation that such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination or introduce the other business specified in the notice; (D) in the case of any proposed nomination for election or re-election as a director, (I) the name and residence address of the person or persons to be nominated, (II) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder, (III) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors and (IV) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected; and (E) in the case of any other business that such shareholder proposes to bring before the meeting, (I) a brief description of the business desired to be brought before the meeting and, if such business includes a proposal to amend these bylaws, the language of the proposed amendment, (II) such shareholder’s and beneficial owner’s or owners’ reasons for conducting such business at the meeting and (III) any material interest in such business of such shareholder and beneficial owner or owners.

 

(iii)           Notwithstanding anything in the second sentence of paragraph (a)(ii) of this Section 2.14 to the contrary, in the event that the number of directors to be elected to the Board of Directors of the corporation is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board of Directors made by the corporation at least seventy (70) days prior to the date of the Annual Meeting in the immediately preceding year, a shareholder’s notice required by this Section 2.14 shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be received by the Secretary at the principal offices of the corporation not later than the close of business on the 10th day following the day on which such public announcement is first made by the corporation.

 

(b)            Special Meetings .  Only such business shall be conducted at a Special Meeting as shall have been described in the notice of meeting sent to shareholders pursuant to Section 2.04 of these bylaws.  Nominations of persons for election to the Board of Directors may be made at a Special Meeting at which directors are to be elected pursuant to such notice of meeting (i) by or at the direction of the Board of Directors or (ii) by any shareholder of the corporation who (A) 

 

9



 

is a shareholder of record at the time of giving of such notice of meeting, (B) is entitled to vote at the meeting and (C) complies with the notice procedures set forth in this Section 2.14.  Any shareholder desiring to nominate persons for election to the Board of Directors at such a Special Meeting shall cause a written notice to be received by the Secretary of the corporation at the principal offices of the corporation not earlier than ninety days prior to such Special Meeting and not later than the close of business on the later of (x) the 60th day prior to such Special Meeting and (y) the 10th day following the day on which public announcement is first made of the date of such Special Meeting and of the nominees proposed by the Board of Directors to be elected at such meeting.  Such written notice shall be signed by the shareholder of record who intends to make the nomination (or his, her or its duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on the corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination is made; (B) the class and number of shares of the corporation which are beneficially owned by such shareholder or beneficial owner or owners; (C) a representation that such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination specified in the notice; (D) the name and residence address of the person or persons to be nominated; (E) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder; (F) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors; and (G) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected.

 

(c)            General .

 

(i)             Only persons who are nominated in accordance with the procedures set forth in this Section 2.14 shall be eligible to serve as directors.  Only such business shall be conducted at an Annual Meeting or Special Meeting as shall have been brought before such meeting in accordance with the procedures set forth in this Section 2.14.  The chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in this Section 2.14 and, if any proposed nomination or business is not in compliance with this Section 2.14, to declare that such defective proposal shall be disregarded.

 

(ii)            For purposes of this Section 2.14, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

 

(iii)           Notwithstanding the foregoing provisions of this Section 2.14, a shareholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.14.  Nothing in this Section 2.14 shall be deemed to limit the corporation’s obligation to include shareholder proposals in its proxy statement if such inclusion is required by Rule 14a-8 under the Exchange Act.

 

10



 

ARTICLE III.  BOARD OF DIRECTORS

 

3.01         General Powers, Classification and Number .  All corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, the Board of Directors.  The number of directors of the corporation shall be eight (8).  All directors shall be members of a single class.

 

3.02         Tenure and Qualifications .  Each director shall hold office until the next Annual Meeting and until his or her successor shall have been duly elected and, if necessary, qualified, or until there is a decrease in the number of directors which takes effect after the expiration of his or her term, or until his or her prior retirement, death, resignation or removal.  A director may be removed from office only as provided in the articles of incorporation at a meeting of the shareholders called for the purpose of removing the director, and the meeting notice shall state that the purpose, or one of the purposes, of the meeting is removal of the director.  A director may resign at any time by delivering written notice which complies with the Wisconsin Business Corporation Law to the Board of Directors, to the Chairman of the Board or to the corporation.  A director’s resignation is effective when the notice is delivered unless the notice specifies a later effective date.  Directors need not be residents of the State of Wisconsin or shareholders of the corporation.  No other restrictions, limitations or qualifications may be imposed on individuals for service as a director.

 

3.03         Chairman of the Board .  The Board of Directors may elect a director as the Chairman of the Board.  The Chairman of the Board shall, when present, preside at all meetings of the shareholders and of the Board of Directors, may call meetings of the shareholders and the Board of Directors, shall advise and counsel with the management of the corporation, and shall perform such other duties as set forth in these bylaws and as determined by the Board of Directors.  Except as provided in this Section 3.03, the Chairman shall be neither an officer nor an employee of the corporation by virtue of his or her election and service as Chairman of the Board; provided, however, the Chairman may be an officer of the corporation.  The Chairman may use the title Chairman or Chairman of the Board interchangeably.

 

3.04         Regular Meetings .  A regular meeting of the Board of Directors shall be held without other notice than this bylaw immediately after the Annual Meeting and each adjourned session thereof.  The place of such regular meeting shall be the same as the place of the Annual Meeting which precedes it, or such other suitable place as may be announced at such Annual Meeting.  The Board of Directors may provide, by resolution, the date, time and place, either within or without the State of Wisconsin, for the holding of additional regular meetings of the Board of Directors without other notice than such resolution.

 

3.05         Special Meetings .  Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board, the Chief Executive Officer or the President, or any three (3) directors.  The Chairman of the Board, the Chief Executive Officer or the President may fix any place, either within or without the State of Wisconsin, as the place for holding any special meeting of the Board of Directors, and if no other place is fixed the place of the meeting shall be the principal office of the corporation in the State of Wisconsin.

 

3.06         Notice; Waiver .  Notice of each meeting of the Board of Directors (unless otherwise provided in or pursuant to Section 3.04 of these bylaws) shall be given by written or oral notice delivered or communicated in person, by telephone (including voicemail, answering machine

 

11



 

or answering service), telegraph, teletype, facsimile, electronic mail or other form of wire or wireless communication (including electronic transmission), or by mail or private carrier that guarantees delivery on or before the next business day to each director at his or her business address or at such other address (including electronic mail address) as such director shall have designated in writing filed with the Secretary, in each case not less than forty-eight (48) hours prior to the meeting.  The notice need not describe the purpose of the meeting of the Board of Directors or the business to be transacted at such meeting.  If mailed, such notice shall be deemed to be effective when deposited in the United States mail so addressed, with postage thereon prepaid.  If notice is given by telegram, such notice shall be deemed to be effective when the telegram is delivered to the telegraph company.  If notice is given by facsimile, electronic mail or other form of wire or wireless communication or electronic transmission, such notice shall be deemed to be effective when sent to the provided facsimile number, electronic mail address or other wire or wireless or electronic transmission address.  If notice is given by private carrier, such notice shall be deemed to be effective when delivered to the private carrier.  Whenever any notice whatever is required to be given to any director of the corporation under the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law, a waiver thereof in writing, signed at any time, whether before or after the date and time of meeting, by the director entitled to such notice shall be deemed equivalent to the giving of such notice.  The corporation shall retain any such waiver as part of the permanent corporate records.  A director’s attendance at or participation in a meeting waives any required notice to him or her of the meeting unless the director at the beginning of the meeting or promptly upon his or her arrival objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.

 

3.07         Quorum .  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or these bylaws, a majority of the number of directors specified in Section 3.01 of these bylaws shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.  In the event that there are only three directors then in office, a quorum for the transaction of business at any meeting of the Board of Directors shall consist of one-third of the number of directors specified in Section 3.01 of these bylaws.  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or by these bylaws, a quorum of any committee of the Board of Directors created pursuant to Section 3.13 of these bylaws shall consist of a majority of the number of directors appointed to serve on the committee.  A majority of the directors present (though less than such quorum) may adjourn any meeting of the Board of Directors or any committee thereof, as the case may be, from time to time without further notice.

 

3.08         Manner of Acting .  The affirmative vote of a majority of the directors present at a meeting of the Board of Directors or a committee thereof at which a quorum is present shall be the act of the Board of Directors or such committee, as the case may be, unless the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws require the vote of a greater number of directors.

 

3.09         Conduct of Meetings .  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, the an Executive Vice-President in the order provided under Section 4.08 of these bylaws , if any, and in his or her their absence, a Vice President in the order provided under Section 4.09 4.10 of these bylaws, and in their absence, any director chosen by the directors present, shall call meetings of the Board of Directors to order and shall act as chairperson of the meeting.  The Secretary of the corporation shall act as secretary of all meetings of the Board of Directors but in the absence of the Secretary, the

 

12



 

presiding officer may appoint any other person present to act as secretary of the meeting.  Minutes of any regular or special meeting of the Board of Directors shall be prepared and distributed to each director.

 

3.10         Vacancies .  Any vacancies occurring in the Board of Directors, including a vacancy created by an increase in the number of directors, shall be filled only as provided in the articles of incorporation.  A vacancy that will occur at a specific later date, because of a resignation effective at a later date or otherwise, may be filled before the vacancy occurs, but the new director may not take office until the vacancy occurs.

 

3.11         Compensation .  The Board of Directors, irrespective of any personal interest of any of its members, may establish reasonable compensation of all directors for services to the corporation as directors or may delegate such authority to an appropriate committee.  The Board of Directors also shall have authority to provide for or delegate authority to an appropriate committee to provide for reasonable pensions, disability or death benefits, and other benefits or payments, to directors, officers and employees and to their estates, families, dependents or beneficiaries on account of prior services rendered by such directors, officers and employees to the corporation.

 

3.12         Presumption of Assent .  A director who is present and is announced as present at a meeting of the Board of Directors or any committee thereof created in accordance with Section 3.13 of these bylaws, when corporate action is taken, assents to the action taken unless any of the following occurs:  (a) the director objects at the beginning of the meeting or promptly upon his or her arrival to holding the meeting or transacting business at the meeting; (b) the director dissents or abstains from an action taken and minutes of the meeting are prepared that show the director’s dissent or abstention from the action taken; (c) the director delivers written notice that complies with the Wisconsin Business Corporation Law of his or her dissent or abstention to the presiding officer of the meeting before its adjournment or to the corporation immediately after adjournment of the meeting; or (d) the director dissents or abstains from an action taken, minutes of the meeting are prepared that fail to show the director’s dissent or abstention from the action taken, and the director delivers to the corporation a written notice of that failure that complies with the Wisconsin Business Corporation Law promptly after receiving the minutes.  Such right of dissent or abstention shall not apply to a director who votes in favor of the action taken.

 

3.13         Committees .  The Board of Directors by resolution adopted by the affirmative vote of a majority of all of the directors then in office may create one or more committees, appoint members of the Board of Directors to serve on the committees and designate other members of the Board of Directors to serve as alternates.  Each committee shall have at least one member who shall, unless otherwise provided by the Board of Directors, serve at the pleasure of the Board of Directors.  A committee may be authorized to exercise the authority of the Board of Directors, except that a committee may not do any of the following:  (a) approve or recommend to shareholders for approval any action or matter expressly required by the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, to be submitted to shareholders for approval; and (b) adopt, amend or repeal any bylaw of the corporation.  Unless otherwise provided by the Board of Directors in creating the committee, a committee may employ counsel, accountants and other consultants to assist it in the exercise of its authority.

 

3.14         Telephonic Meetings .  Except as herein provided and notwithstanding any place set forth in the notice of the meeting or these bylaws, members of the Board of Directors (and any committees thereof created pursuant to Section 3.13 of these bylaws) may participate in regular

 

13



 

or special meetings by, or through the use of, any means of communication by which all participants may simultaneously hear each other, such as by conference telephone.  If a meeting is conducted by such means, then at the commencement of such meeting the presiding officer shall inform the participating directors that a meeting is taking place at which official business may be transacted.  Any participant in a meeting by such means shall be deemed present in person at such meeting.  Notwithstanding the foregoing, no action may be taken at any meeting held by such means on any particular matter which the presiding officer determines, in his or her sole discretion, to be inappropriate under the circumstances for action at a meeting held by such means.  Such determination shall be made and announced in advance of such meeting.

 

3.15         Action Without Meeting .  Any action required or permitted by the Wisconsin Business Corporation Law to be taken at a meeting of the Board of Directors or a committee thereof created pursuant to Section 3.13 of these bylaws may be taken without a meeting if the action is taken by all members of the Board or of the committee.  The action shall be evidenced by one or more written consents describing the action taken, signed by each director or committee member and retained by the corporation.  Such action shall be effective when the last director or committee member signs the consent, unless the consent specifies a different effective date.

 

ARTICLE IV.  OFFICERS

 

4.01         Number .  The principal officers of the corporation shall be a Chief Executive Officer, a President, an Executive Vice-President (if one is so elected by the Board of Directors) the number of Executive Vice-Presidents as authorized from time to time by the Board of Directors, the number of Presidents of groups, divisions or functions as authorized from time to time by the Board of Directors , the number of Vice Presidents as authorized from time to time by the Board of Directors, a Secretary, and a Treasurer, each of whom shall be elected by the Board of Directors.  Such other officers and assistant officers as may be deemed necessary may be elected or appointed by the Board of Directors.  The Board of Directors may also authorize any duly appointed officer to appoint one or more officers or assistant officers.  Any two or more offices may be held by the same person.

 

4.02         Election and Term of Office .  The officers of the corporation to be elected by the Board of Directors shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each Annual Meeting of the shareholders.  If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as is practicable.  Each officer shall hold office until his or her successor shall have been duly elected or appointed or until his or her prior death, resignation or removal.

 

4.03         Removal .  The Board of Directors may remove any officer and, unless restricted by the Board of Directors or these bylaws, an officer may remove any officer or assistant officer appointed by that officer, at any time, with or without cause and notwithstanding the contract rights, if any, of the officer removed.  The appointment of an officer does not of itself create contract rights.

 

4.04         Resignation .  An officer may resign at any time by delivering notice to the corporation that complies with the Wisconsin Business Corporation Law.  The resignation shall be effective when the notice is delivered, unless the notice specifies a later effective date and the corporation accepts the later effective date.

 

14



 

4.05         Vacancies .  A vacancy in any principal office because of death, resignation, removal, disqualification or otherwise, shall be filled by the Board of Directors for the unexpired portion of the term.  If a resignation of an officer is effective at a later date as contemplated by Section 4.04 of these bylaws, the Board of Directors may fill the pending vacancy before the effective date if the Board provides that the successor may not take office until the effective date.

 

4.06         Chief Executive Officer .  The Chief Executive Officer shall be the principal executive officer of the corporation and, subject to the control of the Board of Directors, shall in general supervise and control all of the business and affairs of the corporation.  The Chief Executive Officer shall have authority, subject to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the Chief Executive Officer.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by resolution of the Board of Directors; and, except as otherwise provided by law or the Board of Directors, he or she may authorize the President or any Executive Vice-President or any Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  In general, he or she shall perform all duties incident to the office of Chief Executive Officer and such other duties as may be prescribed by the Board of Directors from time to time.  In the absence or disability of the Chairman of the Board, or when that position is vacant, the Chief Executive Officer shall, when present, preside at all meetings of the shareholders and of the Board of Directors.

 

4.07         President .  The President shall assist the Chief Executive Officer in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer or by the Board of Directors.  The President shall have authority, subject to the authority of the Chief Executive Officer and to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the President.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by the Chief Executive Officer or by resolution of the Board of Directors; and, except as otherwise provided by law, the Chief Executive Officer or the Board of Directors, he or she may authorize the any Executive Vice-President or any Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  During the absence or disability of the Chief Executive Officer, or while that office is vacant, the President shall exercise all the powers and discharge all of the duties of the Chief Executive Officer.

 

4.08         The Executive Vice- President Presidents The Each Executive Vice-President shall assist the Chief Executive Officer and the President in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or by the Board of Directors.  In the absence or disability of the President, the Executive Vice-President (or in the event there be more than one Executive Vice-President, the Executive Vice-

 

15



 

Presidents in the order designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties and functions of the President.

 

4.09         Presidents of Groups, Divisions or Functions.  Each President of a designated group, division or function of the business of the corporation shall have an appropriate descriptive designation for his or her title as from time to time determined by, and shall have authority over the designated group, division or function subject to any limitations from time to time established by, the Chief Executive Officer, the President or the Board of Directors.  Such President or Presidents of a designated group, division or function shall perform such other duties and have such additional authority as from time to time may be assigned to him or her by the Chief Executive Officer, President or the Board of Directors.  Such President or Presidents of a designated group, division or function shall report to the Chief Executive Officer or such other officer of the corporation as designated by the Chief Executive Officer.

 

4.10          4.09 The Vice Presidents .  In the absence or disability of both the President and all of the Executive Vice- President Presidents , the Vice President (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President.  Any Vice President may sign, with the Secretary or Assistant Secretary, certificates for shares of the corporation; and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or by the Board of Directors.  The execution of any instrument of the corporation by any Vice President shall be conclusive evidence, as to third parties, of his or her authority to act in the stead of the President.  The Board of Directors may designate any Vice President as being senior in rank or degree of responsibility and may accord such a Vice President an appropriate title designating his or her senior rank, such as “Senior Vice President.”  The Board of Directors may assign a certain Vice President responsibility for a designated group, division or function of the corporation’s business and add an appropriate descriptive designation to his or her title.

 

4.11          4.10 The Secretary .  The Secretary shall:  (a) keep minutes of the meetings of the shareholders and of the Board of Directors (and of committees thereof) in one or more books provided for that purpose (including records of actions taken by the shareholders or the Board of Directors (or committees thereof) without a meeting); (b) see that all notices are duly given in accordance with the provisions of these bylaws or as required by the Wisconsin Business Corporation Law; (c) be custodian of the corporate records and of the seal of the corporation and see that the seal of the corporation is affixed to all documents the execution of which on behalf of the corporation under its seal is duly authorized; (d) maintain or cause an authorized agent to maintain a record of the shareholders of the corporation, in a form that permits preparation of a list of the names and addresses of all shareholders, by class or series of shares and showing the number and class or series of shares held by each shareholder; (e) sign with the Chief Executive Officer, the President, the an Executive Vice-President or a Vice President, certificates for shares of the corporation, the issuance of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the stock transfer books of the corporation; and (g) in general perform all duties incident to the office of Secretary and have such other duties and exercise such authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President , the an Executive Vice-President or by the Board of Directors.

 

16



 

4.12          4.11 The Treasurer .  The Treasurer shall:  (a) have charge and custody of and be responsible for all funds and securities of the corporation; (b) maintain appropriate accounting records; (c) receive and give receipts for moneys due and payable to the corporation from any source whatsoever, and deposit all such moneys in the name of the corporation in such banks, trust companies or other depositaries as shall be selected in accordance with the provisions of Section 5.04 of these bylaws; and (d) in general perform all of the duties incident to the office of Treasurer and have such other duties and exercise such other authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President, the an Executive Vice-President or by the Board of Directors.  If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his or her duties in such sum and with such surety or sureties as the Board of Directors shall determine.

 

4.13          4.12 Assistant Secretaries and Assistant Treasurers .  There shall be such number of Assistant Secretaries and Assistant Treasurers as the Board of Directors may from time to time authorize.  The Assistant Secretaries may sign with the Chief Executive Officer, the President, the an Executive Vice-President or a Vice President certificates for shares of the corporation the issuance of which shall have been authorized by a resolution of the Board of Directors.  The Assistant Treasurers shall respectively, if required by the Board of Directors, give bonds for the faithful discharge of their duties in such sums and with such sureties as the Board of Directors shall determine.  The Assistant Secretaries and Assistant Treasurers, in general, shall perform such duties and have such authority as shall from time to time be delegated or assigned to them by the Secretary or the Treasurer, respectively, or by the President or the Board of Directors.

 

4.14          4.13 Other Assistants and Acting Officers .  The Board of Directors shall have the power to appoint, or to authorize any duly appointed officer of the corporation to appoint, any person to act as assistant to any officer, or as agent for the corporation in his or her stead, or to perform the duties of such officer whenever for any reason it is impracticable for such officer to act personally, and such assistant or acting officer or other agent so appointed by the Board of Directors or an authorized officer shall have the power to perform all the duties of the office to which he or she is so appointed to be an assistant, or as to which he or she is so appointed to act, except as such power may be otherwise defined or restricted by the Board of Directors or the appointing officer.

 

4.15          4.14 Salaries .  The salaries of the principal officers shall be fixed from time to time by the Board of Directors or by a duly authorized committee thereof, and no officer shall be prevented from receiving such salary by reason of the fact that he or she is also a director of the corporation.

 

ARTICLE V.  CONTRACTS, LOANS, CHECKS AND

DEPOSITS; SPECIAL CORPORATE ACTS

 

5.01         Contracts .  The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute or deliver any instrument in the name of and on behalf of the corporation, and such authorization may be general or confined to specific instances.  In the absence of other designation, all deeds, mortgages and instruments of assignment or pledge made by the corporation shall be executed in the name of the corporation by the Chief Executive Officer, the President, the an Executive Vice-President or one of the a Vice Presidents President and by the Secretary, an Assistant Secretary, the Treasurer or an Assistant Treasurer; the Secretary or an Assistant Secretary, when necessary or required, shall affix the corporate seal, if any, thereto; and

 

17



 

when so executed no other party to such instrument or any third party shall be required to make any inquiry into the authority of the signing officer or officers.

 

5.02         Loans .  No indebtedness for borrowed money shall be contracted on behalf of the corporation and no evidences of such indebtedness shall be issued in its name unless authorized by or under the authority of a resolution of the Board of Directors.  Such authorization may be general or confined to specific instances.

 

5.03         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 or under the authority of a resolution of the Board of Directors.

 

5.04         Deposits .  All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the corporation in such banks, trust companies or other depositaries as may be selected by or under the authority of a resolution of the Board of Directors.

 

5.05         Voting of Securities Owned by this Corporation .  Subject always to the specific directions of the Board of Directors, (a) any shares or other securities issued by any other corporation and owned or controlled by this corporation may be voted at any meeting of security holders of such other corporation by the Chief Executive Officer or the President of this corporation if any of them shall be present, or in their absence by the any Executive Vice-President or any Vice President of this corporation who may be present, and (b) whenever, in the judgment of the Chief Executive Officer or President, or in their absence, of the any Executive Vice-President or any Vice President, it is desirable for this corporation to execute a proxy or written consent in respect to any shares or other securities issued by any other corporation and owned by this corporation, such proxy or consent shall be executed in the name of this corporation by the Chief Executive Officer, the President, the an Executive Vice-President or one of the a Vice Presidents of this corporation, without necessity of any authorization by the Board of Directors, affixation of corporate seal, if any, or countersignature or attestation by another officer.  Any person or persons designated in the manner above stated as the proxy or proxies of this corporation shall have full right, power and authority to vote the shares or other securities issued by such other corporation and owned by this corporation the same as such shares or other securities might be voted by this corporation.

 

ARTICLE VI.  CERTIFICATES FOR SHARES; TRANSFER OF SHARES

 

6.01         Certificates for Shares .  Certificates representing shares of the corporation shall be in such form, consistent with the Wisconsin Business Corporation Law, as shall be determined by the Board of Directors.  Such certificates shall be signed by the Chief Executive Officer, the President, the an Executive Vice-President or a Vice President and by the Secretary or an Assistant Secretary.  All certificates for shares shall be consecutively numbered or otherwise identified.  The Board of Directors may authorize the issuance of any of its classes or series of shares without certificates.  The name and address of the person to whom the shares represented thereby are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the corporation.  All certificates surrendered to the corporation for transfer shall be cancelled and no new certificate shall be issued until the former certificate for a like number of shares shall have been surrendered and cancelled, except as provided in Section 6.06 of these bylaws.  To the extent required by the Wisconsin Business Corporation Law, within a reasonable time after the issuance or transfer of shares without a certificate, the corporation shall send to the registered owner thereof a

 

18



 

written notice that shall set forth (a) the name of the corporation; (b) that the corporation is organized under the laws of the State of Wisconsin; (c) the name of the shareholder; (d) the number and class (and the designation of the series, if any) of the shares represented; (e) if applicable, a summary of the designations, relative rights, preferences and limitation applicable to each class, and, if applicable, the variations in rights, preferences and limitations determined for each series and the authority of the Board of Directors to determine variations for future series (or a conspicuous statement that upon written request the corporation will furnish the shareholder with this information without charge); and (f) if applicable, any restrictions on the transfer or registration of such shares of stock imposed by the articles of incorporation, these bylaws, any agreement among shareholders or any agreement between shareholders and the corporation.

 

6.02                 Seal, Facsimile Signatures and Electronic Signatures .  The seal of the corporation, if any, on any certificates for shares may be a facsimile.  The signature of the Chief Executive Officer, the President, the an Executive Vice-President or Vice President and the Secretary or Assistant Secretary upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent, or a registrar, other than the corporation itself or an employee of the corporation.  Unless otherwise prohibited by law, any document that requires a manual, facsimile or other form of signature or that is given effect with a manual, facsimile or other form of signature under these bylaws may be signed or given effect with an electronic signature (as defined in Section 137.04 of the Wisconsin Statutes) if the electronic signature meets all of the following requirements:

 

(a)                   The electronic signature is unique to the person using it.

 

(b)                   The electronic signature is capable of verification.

 

(c)                   The electronic signature is under the sole control of the person using it.

 

(d)                   The electronic signature is linked to the document to which it is attached or associated in such a manner that, if the document is altered after the electronic signature is created, the electronic signature is invalidated.

 

6.03         Signature by Former Officers .  The validity of a share certificate is not affected if a person who signed the certificate (either manually, by facsimile or by electronic transmission) no longer holds office when the certificate is issued.

 

6.04         Transfer of Shares .  Prior to due presentment of a certificate for shares for registration of transfer the corporation may treat the registered owner of such shares as the person exclusively entitled to vote, to receive notifications and otherwise to have and exercise all the rights and powers of an owner.  Where a certificate for shares is presented to the corporation with a request to register for transfer, the corporation shall not be liable to the owner or any other person suffering loss as a result of such registration of transfer if (a) there were on or with the certificate the necessary endorsements, or, with respect to uncertificated shares, proper transfer instructions are received; and (b) the corporation had no duty to inquire into adverse claims or has discharged any such duty.  The corporation may require reasonable assurance that such endorsements or transfer instructions are genuine and effective and compliance with such other regulations as may be prescribed by or under the authority of the Board of Directors.

 

19



 

6.05         Restrictions on Transfer .  The face or reverse side of each certificate representing shares shall bear a conspicuous notation of any restriction imposed by the corporation upon the transfer of such shares.

 

6.06         Lost, Destroyed or Stolen Certificates .  The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed.  When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the person requesting such new certificate or certificates, or his or her legal representative, to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen or destroyed.

 

6.07         Consideration for Shares .  The Board of Directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation.  Before the corporation issues shares, the Board of Directors shall determine that the consideration received or to be received for the shares to be issued is adequate.  The determination of the Board of Directors is conclusive insofar as the adequacy of consideration for the issuance of shares relates to whether the shares are validly issued, fully paid and nonassessable.  The corporation may place in escrow shares issued in whole or in part for a contract for future services or benefits, a promissory note, or other property to be issued in the future, or make other arrangements to restrict the transfer of the shares, and may credit distributions in respect of the shares against their purchase price, until the services are performed, the benefits or property are received or the promissory note is paid.  If the services are not performed, the benefits or property are not received or the promissory note is not paid, the corporation may cancel, in whole or in part, the shares escrowed or restricted and the distributions credited.

 

6.08         Stock Regulations .  The Board of Directors shall have the power and authority to make all such further rules and regulations not inconsistent with law as it may deem expedient concerning the issue, transfer and registration of shares of the corporation.

 

6.09         No Nominee Procedures .  The corporation has not established, and nothing in these bylaws shall be deemed to establish, any procedure by which a beneficial owner of the corporation’s shares that are registered in the name of a nominee is recognized by the corporation as a shareholder under Section 180.0723 of the Wisconsin Business Corporation Law.

 

ARTICLE VII.  SEAL

 

7.01         The Board of Directors may provide for a corporate seal for the corporation.

 

ARTICLE VIII.  FISCAL YEAR

 

8.01         The fiscal year of the corporation shall be from January 1 to December 31.

 

20



 

ARTICLE IX.  INDEMNIFICATION

 

9.01          Certain Definitions .  All terms used in this Article IX and not otherwise hereinafter defined in this Article IX shall have the meaning set forth in Section 180.0850 of the Wisconsin Business Corporation Law (the “Statute”).  The following terms (including any plural forms thereof) used in this Article IX are defined as follows:

 

(a)            “Affiliate” shall include, without limitation, any Person (including without limitation an employee benefit plan or trust) that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Corporation.

 

(b)            “Authority” shall mean the entity selected by the Director or Officer or Covered Person to determine his or her right to indemnification pursuant to Section 9.04 of this Article IX.

 

(c)            “Board of Directors” shall mean the entire then elected and serving Board of Directors of the Corporation, including all members thereof who are Parties to the subject Proceeding or any related Proceeding.

 

(d)            “Breach of Duty” shall mean the Director or Officer or Covered Person breached or failed to perform his or her duties to the Corporation and his or her breach of or failure to perform those duties is determined, in accordance with Section 9.04 of this Article IX, to constitute misconduct under Section 180.0851(2)(a) 1, 2, 3 or 4 of the Statute.

 

(e)            “Corporation,” as used herein and as defined in the Statute and incorporated by reference into the definitions of certain other capitalized terms used herein, shall mean the corporation, including, without limitation, any successor corporation or entity to the corporation by way of merger, consolidation or acquisition of all or substantially all of the capital stock or assets of the corporation.

 

(f)             “Covered Person” shall mean any trustee of any employee benefit plan of the Corporation, and any person serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture or trust.

 

(g)            “Director or Officer” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, it shall be conclusively presumed that any Director or Officer serving as a director, officer, partner, trustee, member of any governing or decision-making committee, employee or agent of an Affiliate shall be so serving at the request of the Corporation.

 

(h)            “Disinterested Quorum” shall mean a quorum of the Board of Directors who are not Parties to the subject Proceeding or any related Proceeding.

 

(i)             “Party” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, the term “Party” shall also include any Director or Officer, Covered Person or employee of the Corporation who is or was a witness in a Proceeding at a time when he or she has not otherwise been formally named a Party thereto.

 

(j)             “Person” shall mean any individual, partnership, limited liability partnership, firm, corporation, limited liability company, association, trust, unincorporated

 

21



 

organization or other entity, as well as any syndicate or group deemed to be a person under Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(k)            “Proceeding” shall have the meaning set forth in the Statute; provided, that, in accordance with Section 180.0859 of the Statute and for purposes of this Article IX, the term “Proceeding” shall also include all Proceedings (i) brought under (in whole or in part) the Securities Act of 1933, as amended, the Exchange Act, their respective state counterparts, and/or any rule or regulation promulgated under any of the foregoing; (ii) brought before an Authority or otherwise to enforce rights hereunder; (iii) any appeal from a Proceeding; and (iv) any Proceeding in which the Director or Officer or Covered Person is a plaintiff or petitioner because he or she is a Director or Officer or Covered Person; provided, however, that any such Proceeding under this subsection (iv) must be authorized by a majority vote of a Disinterested Quorum.

 

(l)             “Statute” shall mean Sections 180.0850 through 180.0859, inclusive, of the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, as the same shall then be in effect, including any amendments thereto, but, in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than the Statute permitted or required the Corporation to provide prior to such amendment.

 

9.02          Mandatory Indemnification of Directors and Officers and Covered Persons .  To the fullest extent permitted or required by the Statute, the Corporation shall indemnify a Director or Officer or Covered Person against all Liabilities incurred by or on behalf of such Director or Officer or Covered Person in connection with a Proceeding in which the Director or Officer or Covered Person is a Party because he or she is a Director or Officer or Covered Person.

 

9.03          Procedural Requirements .

 

(a)            A Director or Officer or Covered Person who seeks indemnification under Section 9.02 of this Article IX shall make a written request therefor to the Corporation.  Subject to subsection (b) of this Section 9.03, within sixty (60) days of the Corporation’s receipt of such request, the Corporation shall pay or reimburse the Director or Officer or Covered Person for the entire amount of Liabilities incurred by the Director or Officer or Covered Person in connection with the subject Proceeding (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX).

 

(b)            No indemnification shall be required to be paid by the Corporation pursuant to Section 9.02 of this Article IX if, within such sixty-day period, (i) a Disinterested Quorum, by a majority vote thereof, determines that the Director or Officer or Covered Person requesting indemnification engaged in misconduct constituting a Breach of Duty or (ii) a Disinterested Quorum cannot be obtained.

 

(c)            In either case of nonpayment pursuant to subsection (b) of this Section 9.03, the Board of Directors shall immediately authorize by resolution that an Authority, as provided in Section 9.04 of this Article IX, determine whether the conduct of the Director or Officer or Covered Person constituted a Breach of Duty and, therefore, whether indemnification should be denied hereunder.

 

22



 

(d)            (i)  If the Board of Directors does not authorize an Authority to determine the Director’s or Officer’s or Covered Person’s right to indemnification hereunder within such sixty-day period and/or (ii) if indemnification of the requested amount of Liabilities is paid by the Corporation, then it shall be conclusively presumed for all purposes that a Disinterested Quorum has affirmatively determined that the Director or Officer or Covered Person did not engage in misconduct constituting a Breach of Duty and, in the case of clause (i) above (but not clause (ii)), indemnification by the Corporation of the requested amount of Liabilities shall be paid to the Director or Officer or Covered Person immediately.

 

9.04          Determination of Indemnification .

 

(a)            If the Board of Directors authorizes an Authority to determine a Director’s or Officer’s or Covered Person’s right to indemnification pursuant to Section 9.03 of this Article IX, then the Director or Officer or Covered Person requesting indemnification shall have the absolute discretionary authority to select one of the following as such Authority:

 

(i)             An independent legal counsel; provided, that such counsel shall be mutually selected by such Director or Officer or Covered Person and by a majority vote of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors;

 

(ii)            A panel of three arbitrators selected from the panels of arbitrators of the American Arbitration Association in Milwaukee, Wisconsin; provided, that (A) one arbitrator shall be selected by such Director or Officer or Covered Person, the second arbitrator shall be selected by a majority vote of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors, and the third arbitrator shall be selected by the two previously selected arbitrators, and (B) in all other respects (other than this Article IX), such panel shall be governed by the American Arbitration Association’s then existing Commercial Arbitration Rules; or

 

(iii)           A court pursuant to and in accordance with Section 180.0854 of the Statute.

 

(b)            In any such determination by the selected Authority there shall exist a rebuttable presumption that the conduct of the Director or Officer or Covered Person did not constitute a Breach of Duty and that indemnification against the requested amount of Liabilities is required.  The burden of rebutting such a presumption by clear and convincing evidence shall be on the Corporation or such other party asserting that such indemnification should not be allowed.

 

(c)            The Authority shall make its determination within sixty (60) days of being selected and shall submit a written opinion of its conclusion simultaneously to both the Corporation and the Director or Officer or Covered Person.

 

(d)            If the Authority determines that indemnification is required hereunder, then the Corporation shall pay the entire requested amount of Liabilities (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX), including interest thereon at a reasonable rate, as determined by the Authority, within ten (10) days of receipt of the Authority’s opinion; provided, that, if it is determined by the Authority that a Director or Officer or Covered Person is entitled to indemnification against Liabilities’ incurred in connection with some claims,

 

23



 

issues or matters, but not as to other claims, issues or matters, involved in the subject Proceeding, the Corporation shall be required to pay (as set forth above) only the amount of such requested Liabilities as the Authority shall deem appropriate in light of all of the circumstances of such Proceeding.

 

(e)            The determination by the Authority that indemnification is required hereunder shall be binding upon the Corporation regardless of any prior determination that the Director or Officer or Covered Person engaged in a Breach of Duty.

 

(f)             All Expenses incurred in the determination process under this Section 9.04 by either the Corporation or the Director or Officer or Covered Person, including, without limitation, all Expenses of the selected Authority, shall be paid by the Corporation.

 

9.05          Mandatory Allowance of Expenses .

 

(a)            The Corporation shall pay or reimburse from time to time or at any time, within ten (10) days after the receipt of the Director’s or Officer’s or Covered Person’s written request therefor, the reasonable Expenses of the Director or Officer or Covered Person as such Expenses are incurred; provided, the following conditions are satisfied:

 

(i)             The Director or Officer or Covered Person furnishes to the Corporation an executed written certificate affirming his or her good faith belief that he or she has not engaged in misconduct that constitutes a Breach of Duty; and

 

(ii)            The Director or Officer or Covered Person furnishes to the Corporation an unsecured executed written agreement to repay any advances made under this Section 9.05 if it is ultimately determined by an Authority that he or she is not entitled to be indemnified by the Corporation for such Expenses pursuant to Section 9.04 of this Article IX.

 

(b)            If the Director or Officer or Covered Person must repay any previously advanced Expenses pursuant to this Section 9.05, then such Director or Officer or Covered Person shall not be required to pay interest on such amounts.

 

9.06          Indemnification and Allowance of Expenses of Certain Others .

 

(a)            The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify a director or officer of an Affiliate (who is not otherwise serving as a Director or Officer or Covered Person) against all Liabilities, and shall advance the reasonable Expenses, incurred by such director or officer in a Proceeding to the same extent hereunder as if such director or officer incurred such Liabilities because he or she was a Director or Officer or Covered Person, if such director or officer is a Party thereto because he or she is or was a director or officer of the Affiliate.

 

(b)            The Corporation shall indemnify an employee of the Corporation who is not a Director or Officer or Covered Person, to the extent that he or she has been successful on the merits or otherwise in defense of a Proceeding, for all reasonable Expenses incurred in the Proceeding if the employee was a Party because he or she was an employee of the Corporation.

 

24



 

(c)            The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify (to the extent not otherwise provided in subsection (b) of this Section 9.06) against Liabilities incurred by, and/or provide for the allowance of reasonable Expenses of, an employee or authorized agent of the Corporation acting within the scope of his or her duties as such and who is not otherwise a Director or Officer or Covered Person.

 

9.07          Insurance .  The Corporation may purchase and maintain insurance on behalf of a Director or Officer or Covered Person or any individual who is or was an employee or authorized agent of the Corporation against any Liability asserted against or incurred by such individual in his or her capacity as such or arising from his or her status as such, regardless of whether the Corporation is required or permitted to indemnify against any such Liability under this Article IX.

 

9.08          Notice to the Corporation .  A Director or Officer, Covered Person or employee shall promptly notify the Corporation in writing when he or she has actual knowledge of a Proceeding that may result in a claim of indemnification against Liabilities or allowance of Expenses hereunder, but the failure to do so shall not relieve the Corporation of any liability to the Director or Officer, Covered Person or employee hereunder unless the Corporation shall have been irreparably prejudiced by such failure (as determined, in the case of Directors or Officers or Covered Persons only, by an Authority selected pursuant to Section 9.04(a) of this Article IX).

 

9.09          Severability .  If any provision of this Article IX shall be deemed invalid or inoperative, or if a court of competent jurisdiction determines that any of the provisions of this Article IX contravene public policy, then this Article IX shall be construed so that the remaining provisions shall not be affected, but shall remain in full force and effect, and any such provisions that are invalid or inoperative or that contravene public policy shall be deemed, without further action or deed by or on behalf of the Corporation, to be modified, amended and/or limited, but only to the extent necessary to render the same valid and enforceable; it being understood that it is the Corporation’s intention to provide the Directors and Officers and Covered Persons with the broadest possible protection against personal liability allowable under the Statute.

 

9.10          Nonexclusivity of Article IX .  The rights of a Director or Officer, Covered Person or employee (or any other person) granted under this Article IX shall not be deemed exclusive of any other rights to indemnification against Liabilities or allowance of Expenses to which the Director or Officer, Covered Person or employee (or such other person) may be entitled under any written agreement, Board of Director resolution, vote of shareholders of the Corporation or otherwise, including, without limitation, under the Statute.  Nothing contained in this Article IX shall be deemed to limit the Corporation’s obligations to indemnify against Liabilities or allow Expenses to a Director or Officer, Covered Person or employee under the Statute.

 

9.11          Contractual Nature of Article IX; Repeal or Limitation of Rights .  This Article IX shall be deemed to be a contract between the Corporation and each Director or Officer, Covered Person and employee of the Corporation, and any repeal or other limitation of this Article IX or any repeal or limitation of the Statute or any other applicable law shall not limit any rights of indemnification against Liabilities or allowance of Expenses then existing or arising out of events, acts or omissions occurring prior to such repeal or limitation, including, without limitation, the right to indemnification against Liabilities or allowance of Expenses for Proceedings commenced after

 

25



 

such repeal or limitation to enforce this Article IX with regard to acts, omissions or events arising prior to such repeal or limitation.

 

ARTICLE X.  AMENDMENTS

 

10.01        By Shareholders .  Except as otherwise provided in the articles of incorporation or these bylaws, these bylaws may be amended or repealed and new bylaws may be adopted by the shareholders at any Annual Meeting or Special Meeting at which a quorum is in attendance.

 

10.02        By Directors .  Except as otherwise provided by the Wisconsin Business Corporation Law or the articles of incorporation, these bylaws may also be amended or repealed and new bylaws may be adopted by the Board of Directors by affirmative vote of a majority of the number of directors present at any meeting at which a quorum is in attendance; provided, however, that the shareholders in adopting, amending or repealing a particular bylaw may provide therein that the Board of Directors may not amend, repeal or readopt that bylaw.

 

10.03        Implied Amendments .  Any action taken or authorized by the shareholders or by the Board of Directors which would be inconsistent with the bylaws then in effect but which is taken or authorized by affirmative vote of not less than the number of shares or the number of directors required to amend the bylaws so that the bylaws would be consistent with such action shall be given the same effect as though the bylaws had been temporarily amended or suspended so far, but only so far, as is necessary to permit the specific action so taken or authorized.

 

26


Exhibit 3.2

 

AMENDED BYLAWS

 

OF

 

QUAD/GRAPHICS, INC.

(a Wisconsin corporation)

 

 

Effective 7/2/10

 

Further Amended 7/2/10

 



 

ARTICLE I.  OFFICES

 

1.01                            Principal and Business Offices .  The corporation may have such principal and other business offices, either within or without the State of Wisconsin, as the Board of Directors may designate or as the business of the corporation may require from time to time.

 

1.02                            Registered Office .  The registered office of the corporation required by the Wisconsin Business Corporation Law to be maintained in the State of Wisconsin may be, but need not be, identical with the principal office in the State of Wisconsin, and the address of the registered office may be changed from time to time by the Board of Directors or by the registered agent.  The business office of the registered agent of the corporation shall be identical to such registered office.

 

ARTICLE II.  SHAREHOLDERS

 

2.01                            Annual Meeting .  The annual meeting of the shareholders (the “Annual Meeting”) shall be held at such time and on such date as may be fixed by or under the authority of the Board of Directors.  In fixing a meeting date for any Annual Meeting, the Board of Directors may consider such factors as it deems relevant within the good faith exercise of its business judgment.  At each Annual Meeting, the shareholders shall elect that number of directors equal to the number of directors in the class whose term expires at the time of such meeting.  At any such Annual Meeting, only other business properly brought before the meeting in accordance with Section 2.14 of these bylaws may be transacted.  If the election of directors shall not be held on the date fixed as herein provided for any Annual Meeting, or any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of shareholders (a “Special Meeting”) as soon thereafter as is practicable.

 

2.02                            Special Meetings .

 

(a)                                   A Special Meeting may be called only by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President and shall be called by the corporation upon the demand, in accordance with this Section 2.02, of the holders of record of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting.

 

(b)                                  In order that the corporation may determine the shareholders entitled to demand a Special Meeting, the Board of Directors may fix a record date to determine the shareholders entitled to make such a demand (the “Demand Record Date”).  The Demand Record Date shall not precede the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors and shall not be more than ten (10) days after the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors.  Any shareholder of record seeking to have shareholders demand a Special Meeting shall, by sending written notice to the Secretary of the corporation by hand or by certified or registered mail, return receipt requested, request the Board of Directors to fix a Demand Record Date.  The Board of Directors shall promptly, but in all events within ten (10) days after the date on which a valid request to fix a Demand Record Date is received, adopt a resolution fixing the Demand Record Date and shall make a public announcement of such Demand Record Date.  If no

 



 

Demand Record Date has been fixed by the Board of Directors within ten (10) days after the date on which such request is received by the Secretary, the Demand Record Date shall be the 10th day after the first date on which a valid written request to set a Demand Record Date is received by the Secretary.  To be valid, such written request shall set forth the purpose or purposes for which the Special Meeting is to be held, shall be signed by one or more shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative) and shall set forth all information about each such shareholder and about the beneficial owner or owners, if any, on whose behalf the request is made that would be required to be set forth in a shareholder’s notice described in paragraph (a) (ii) of Section 2.14 of these bylaws.

 

(c)                                   In order for a shareholder or shareholders to demand a Special Meeting, a written demand or demands for a Special Meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting must be delivered to the corporation.  To be valid, each written demand by a shareholder for a Special Meeting shall set forth the specific purpose or purposes for which the Special Meeting is to be held (which purpose or purposes shall be limited to the purpose or purposes set forth in the written request to set a Demand Record Date received by the corporation pursuant to paragraph (b) of this Section 2.02), shall be signed by one or more persons who as of the Demand Record Date are shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative), and shall set forth the name and address, as they appear in the corporation’s books, of each shareholder signing such demand and the class and number of shares of the corporation which are owned of record and beneficially by each such shareholder, shall be sent to the Secretary by hand or by certified or registered mail, return receipt requested, and shall be received by the Secretary within seventy (70) days after the Demand Record Date.

 

(d)                                  The corporation shall not be required to call a Special Meeting upon shareholder demand unless, in addition to the documents required by paragraph (c) of this Section 2.02, the Secretary receives a written agreement signed by each Soliciting Shareholder (as defined below), pursuant to which each Soliciting Shareholder, jointly and severally, agrees to pay the corporation’s costs of holding the Special Meeting, including the costs of preparing and mailing proxy materials for the corporation’s own solicitation, provided that if each of the resolutions introduced by any Soliciting Shareholder at such meeting is adopted, and each of the individuals nominated by or on behalf of any Soliciting Shareholder for election as a director at such meeting is elected, then the Soliciting Shareholders shall not be required to pay such costs.  For purposes of this paragraph (d), the following terms shall have the meanings set forth below:

 

(i)                                      “Affiliate” of any Person (as defined herein) shall mean any Person controlling, controlled by or under common control with such first Person.

 

(ii)                                   “Participant” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

2



 

(iii)                                “Person” shall mean any individual, firm, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, trust, unincorporated organization or other entity.

 

(iv)                               “Proxy” shall have the meaning assigned to such term in Rule 14a-1 promulgated under the Exchange Act.

 

(v)                                  “Solicitation” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Exchange Act.

 

(vi)                               “Soliciting Shareholder” shall mean, with respect to any Special Meeting demanded by a shareholder or shareholders, any of the following Persons:

 

(A)                               if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is ten (10) or fewer, each shareholder signing any such demand;

 

(B)                                 if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is more than ten (10), each Person who either (I) was a Participant in any Solicitation of such demand or demands or (II) at the time of the delivery to the corporation of the documents described in paragraph (c) of this Section 2.02 had engaged or intends to engage in any Solicitation of Proxies for use at such Special Meeting (other than a Solicitation of Proxies on behalf of the corporation); or

 

(C)                                 any Affiliate of a Soliciting Shareholder, if a majority of the directors then in office determine, reasonably and in good faith, that such Affiliate should be required to sign the written notice described in paragraph (c) of this Section 2.02 and/or the written agreement described in this paragraph (d) in order to prevent the purposes of this Section 2.02 from being evaded.

 

(e)                                   Except as provided in the following sentence, any Special Meeting shall be held at such hour and day as may be designated by whichever of the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President shall have called such meeting.  In the case of any Special Meeting called by the corporation upon the demand of shareholders (a “Demand Special Meeting”), such meeting shall be held at such hour and day as may be designated by the Board of Directors; provided, however, that the date of any Demand Special Meeting shall be not more than seventy (70) days after the Meeting Record Date (as defined in Section 2.06 hereof); and provided further that in the event that the directors then in office fail to designate an hour and date for a Demand Special Meeting within ten (10) days after the date that valid written demands for such meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting are delivered to the corporation (the “Delivery Date”), then such meeting shall be held at 2:00 P.M. Central Time on the 100th day after the Delivery Date or, if such 100th day is not a Business Day (as defined below), on the first preceding Business Day.  In fixing a meeting date for any Special Meeting, the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may consider

 

3



 

such factors as it or he or she deems relevant within the good faith exercise of its or his or her business judgment, including, without limitation, the nature of the action proposed to be taken, the facts and circumstances surrounding any demand for such meeting, and any plan of the Board of Directors to call an Annual Meeting or a Special Meeting for the conduct of related business.

 

(f)                                     The corporation may engage regionally or nationally recognized independent inspectors of elections to act as an agent of the corporation for the purpose of promptly performing a ministerial review of the validity of any purported written demand or demands for a Special Meeting received by the Secretary.  For the purpose of permitting the inspectors to perform such review, no purported demand shall be deemed to have been delivered to the corporation until the earlier of (i) five (5) Business Days following receipt by the Secretary of such purported demand and (ii) such date as the independent inspectors certify to the corporation that the valid demands received by the Secretary represent at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting.  Nothing contained in this paragraph (f) shall in any way be construed to suggest or imply that the Board of Directors or any shareholder shall not be entitled to contest the validity of any demand, whether during or after such five (5) Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto).

 

(g)            For purposes of these bylaws, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Wisconsin are authorized or obligated by law or executive order to close.

 

2.03                            Place of Meeting .  The Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may designate any place, either within or without the State of Wisconsin, as the place of meeting for an Annual Meeting or Special Meeting or for any postponement or adjournment thereof.  If no designation is made, the place of meeting shall be the principal office of the corporation.  Any meeting may be adjourned to reconvene at any place designated by vote of the Board of Directors or by the Chairman of the Board, the Chief Executive Officer or the President.

 

2.04                            Notice of Meeting .  Written notice stating the date, time and place of any meeting of shareholders shall be delivered not less than ten (10) days nor more than sixty (60) days before the date of the meeting (unless a different time period is provided by the Wisconsin Business Corporation Law or the articles of incorporation), either personally, by mail or by electronic transmission, by or at the direction of the Board of Directors, the Chairman of the Board, the Chief Executive Officer, the President or the Secretary, to each shareholder of record entitled to vote at such meeting and to such other persons as required by the Wisconsin Business Corporation Law.  In the event of any Demand Special Meeting, such notice of meeting shall be sent not more than thirty (30) days after the Delivery Date.  Notice pursuant to this Section 2.04 shall be deemed to be effective (a) if mailed, when deposited in the United States mail, addressed to the shareholder at his or her address as it appears on the stock record books of the corporation, with postage thereon prepaid, (b) if personally delivered, when received or (c) if sent by electronic transmission, when electronically transmitted to a shareholder in a manner authorized by the shareholder.  Unless otherwise required by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation, a notice of an Annual Meeting need not include a

 

4



 

description of the purpose for which the meeting is called.  In the case of any Special Meeting, (a) the notice of meeting shall describe any business that the Board of Directors shall have theretofore determined to bring before the meeting and (b) in the case of a Demand Special Meeting, the notice of meeting (i) shall describe any business set forth in the statement of purpose of the demands received by the corporation in accordance with Section 2.02 of these bylaws and (ii) shall contain all of the information required in the notice received by the corporation in accordance with Section 2.14(b) of these bylaws.  If an Annual Meeting or Special Meeting is adjourned to a different date, time or place, the corporation shall not be required to give notice of the new date, time or place if the new date, time or place is announced at the meeting before adjournment; provided, however, that if a new Meeting Record Date (as defined below) for an adjourned meeting is or must be fixed, the corporation shall give notice of the adjourned meeting to persons who are shareholders as of the new Meeting Record Date.

 

2.05                            Waiver of Notice .  A shareholder may waive any notice required by the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws before or after the date and time stated in the notice.  The waiver shall be in writing and signed by the shareholder entitled to the notice, contain the same information that would have been required in the notice under applicable provisions of the Wisconsin Business Corporation Law (except that the time and place of meeting need not be stated) and be delivered to the corporation for inclusion in the corporate records.  A shareholder’s attendance at any Annual Meeting or Special Meeting, in person or by proxy, waives objection to all of the following:  (a) lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting or promptly upon arrival objects to holding the meeting or transacting business at the meeting; and (b) consideration of a particular matter at the meeting that is not within the purpose described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

 

2.06                            Fixing of Record Date .  The Board of Directors may fix in advance a date not less than ten (10) days and not more than seventy (70) days prior to the date of an Annual Meeting or Special Meeting as the record date for the determination of shareholders entitled to notice of, or to vote at, such meeting (the “Meeting Record Date”).  In the case of any Demand Special Meeting, (i) the Meeting Record Date shall not be later than the 30th day after the Delivery Date and (ii) if the Board of Directors fails to fix the Meeting Record Date within thirty (30) days after the Delivery Date, then the close of business on such 30th day shall be the Meeting Record Date.  The shareholders of record on the Meeting Record Date shall be the shareholders entitled to notice of and to vote at the meeting.  Except as provided by the Wisconsin Business Corporation Law for a court-ordered adjournment, a determination of shareholders entitled to notice of and to vote at an Annual Meeting or Special Meeting is effective for any adjournment of such meeting unless the Board of Directors fixes a new Meeting Record Date, which it shall do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.  The Board of Directors may also fix in advance a date as the record date for the purpose of determining shareholders entitled to take any other action or determining shareholders for any other purpose.  Such record date shall be not more than seventy (70) days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.  The record date for determining shareholders entitled to a distribution (other than a distribution involving a purchase, redemption or other acquisition of the corporation’s shares) or a share dividend is the date on which the Board of Directors authorizes

 

5



 

the distribution or share dividend, as the case may be, unless the Board of Directors fixes a different record date.

 

2.07                            Shareholders’ List for Meetings .  After a Meeting Record Date has been fixed, the corporation shall prepare a list of the names of all of the shareholders entitled to notice of the meeting.  The list shall be arranged by class or series of shares, if any, and show the address of and number of shares held by each shareholder.  Such list shall be available for inspection by any shareholder, beginning two (2) business days after notice of the meeting is given for which the list was prepared and continuing to the date of the meeting, at the corporation’s principal office or at a place identified in the meeting notice in the city where the meeting will be held.  A shareholder or his or her agent may, on written demand, inspect and, subject to the limitations imposed by the Wisconsin Business Corporation Law, copy the list, during regular business hours and at his or her expense, during the period that it is available for inspection pursuant to this Section 2.07.  The corporation shall make the shareholders’ list available at the meeting and any shareholder or his or her agent or attorney may inspect the list at any time during the meeting or any adjournment thereof.  Refusal or failure to prepare or make available the shareholders’ list shall not affect the validity of any action taken at a meeting of shareholders.

 

2.08                            Quorum and Voting Requirements; Postponements; Adjournments .

 

(a)                                   Shares entitled to vote as a separate voting group may take action on a matter at any Annual Meeting or Special Meeting only if a quorum of those shares exists with respect to that matter.  If the corporation has only one class of stock outstanding, such class shall constitute a separate voting group for purposes of this Section 2.08.  Except as otherwise provided in the articles of incorporation or the Wisconsin Business Corporation Law, a majority of the votes entitled to be cast on the matter shall constitute a quorum of the voting group for action on that matter.  Once a share is represented for any purpose at any Annual Meeting or Special Meeting, other than for the purpose of objecting to holding the meeting or transacting business at the meeting, it is considered present for purposes of determining whether a quorum exists for the remainder of the meeting and for any adjournment of that meeting unless a new Meeting Record Date is or must be set for the adjourned meeting.  If a quorum exists, except in the case of the election of directors, action on a matter shall be approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless the articles of incorporation or the Wisconsin Business Corporation Law requires a greater number of affirmative votes.  Unless otherwise provided in the articles of incorporation, each director to be elected shall be elected by a plurality of the votes cast by the shares entitled to vote in the election of directors at an Annual Meeting or Special Meeting at which a quorum is present.

 

(b)                                  The Board of Directors acting by resolution may postpone and reschedule any previously scheduled Annual Meeting or Special Meeting; provided, however, that a Demand Special Meeting shall not be postponed beyond the 100th day following the Delivery Date.  Any Annual Meeting or Special Meeting may be adjourned from time to time, whether or not there is a quorum, (i) at any time, upon a resolution of shareholders if the votes cast in favor of such resolution by the holders of shares of each voting group entitled to vote on any matter theretofore properly brought before the meeting exceed the number of votes cast against such resolution by the holders of shares of each such voting group or (ii) at any time prior

 

6



 

to the transaction of any business at such meeting, by the Chairman of the Board, the Chief Executive Officer or the President or pursuant to a resolution of the Board of Directors.  No notice of the time and place of adjourned meetings need be given except as required by the Wisconsin Business Corporation Law.  At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified.

 

2.09                            Conduct of Meeting .  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in their absence, any person chosen by the shareholders present shall call any Annual Meeting or Special Meeting to order and shall act as chairperson of the meeting, and the Secretary of the corporation shall act as secretary of all meetings of the shareholders, but, in the absence of the Secretary, the presiding officer may appoint any other person to act as secretary of the meeting.

 

2.10                            Proxies .  At all meetings of shareholders, a shareholder entitled to vote may vote his or her or its shares in person or by proxy.  A shareholder entitled to vote at any meeting of shareholders may authorize another person to act for the shareholder by appointing the person as proxy.  Without limiting the manner in which a shareholder may appoint a proxy, a shareholder or the shareholder’s authorized officer, director, employee, agent or attorney-in-fact may use any of the following as a valid means to make such an appointment:

 

(a)                                   Appointment of a proxy in writing by signing or causing the shareholder’s signature to be affixed to an appointment form by any reasonable means, including, but not limited to, by facsimile signature.

 

(b)                                  Appointment of a proxy by transmitting or authorizing the transmission of an electronic transmission of the appointment to the person who will be appointed as proxy or to a proxy solicitation firm, proxy support service organization or like agent authorized to receive the transmission by the person who will be appointed as proxy.  Every electronic transmission shall contain, or be accompanied by, information that can be used to reasonably determine that the shareholder transmitted or authorized the transmission of the electronic transmission.  Any person charged with determining whether a shareholder transmitted or authorized the transmission of the electronic transmission shall specify the information upon which the determination is made.

 

An appointment of a proxy is effective when a signed appointment form or an electronic transmission of the appointment is received by the inspector of elections or the officer or agent of the corporation authorized to tabulate votes.  An appointment is valid for eleven (11) months unless a different period is expressly provided in the appointment.  Unless otherwise provided, a proxy may be revoked any time before it is voted, either by appointing a new proxy in accordance with the Wisconsin Business Corporation Law or by oral notice given by the shareholder to the presiding officer during the meeting.  The presence of a shareholder who has made an effective proxy appointment shall not itself constitute a revocation.  The Board of Directors shall have the power and authority to make rules establishing presumptions as to the validity and sufficiency of proxies.

 

7



 

2.11                            Voting of Shares .

 

(a)                                   Each outstanding share of Class A Common Stock shall be entitled to one vote, each outstanding share of Class B Common Stock shall be entitled to ten votes and each outstanding share of Class C Common Stock shall be entitled to ten votes upon each matter submitted to a vote at any Annual Meeting or Special Meeting, except to the extent that the voting rights of the shares of any class or classes are enlarged, limited or denied by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation.

 

(b)                                  Shares held by another corporation, if a sufficient number of shares entitled to elect a majority of the directors of such other corporation is held directly or indirectly by this corporation, shall not be entitled to vote at any Annual Meeting or Special Meeting, but shares held in a fiduciary capacity may be voted.

 

2.12                            Action Without Meeting .  Any action required or permitted by the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law to be taken at an Annual Meeting or Special Meeting may be taken without a meeting if a written consent or consents, describing the action so taken, is signed by all of the shareholders entitled to vote with respect to the subject matter thereof and delivered to the corporation for inclusion in the corporate records.

 

2.13                            Acceptance of Instruments Showing Shareholder Action .  If the name signed on a vote, consent, waiver or proxy appointment corresponds to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of a shareholder.  If the name signed on a vote, consent, waiver or proxy appointment does not correspond to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of the shareholder if any of the following apply:

 

(a)                                   The shareholder is an entity and the name signed purports to be that of an officer or agent of the entity.

 

(b)                                  The name purports to be that of a personal representative, administrator, executor, guardian or conservator representing the shareholder and, if the corporation requests, evidence of fiduciary status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

 

(c)                                   The name signed purports to be that of a receiver or trustee in bankruptcy of the shareholder and, if the corporation requests, evidence of this status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

 

(d)                                  The name signed purports to be that of a pledgee, beneficial owner, or attorney-in-fact of the shareholder and, if the corporation requests, evidence acceptable to the corporation of the signatory’s authority to sign for the shareholder is presented with respect to the vote, consent, waiver or proxy appointment.

 

8



 

(e)                                   Two or more persons are the shareholders as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-owners and the person signing appears to be acting on behalf of all co-owners.

 

The corporation may reject a vote, consent, waiver or proxy appointment if the Secretary or other officer or agent of the corporation who is authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory’s authority to sign for the shareholder.

 

2.14                            Notice of Shareholder Business and Nomination of Directors .

 

(a)                                   Annual Meetings .

 

(i)                                      Nominations of persons for election to the Board of Directors of the corporation and the proposal of business to be considered by the shareholders may be made at an Annual Meeting (A) pursuant to the corporation’s notice of meeting, (B) by or at the direction of the Board of Directors or (C) by any shareholder of the corporation who is a shareholder of record at the time of giving of notice provided for in this bylaw and who is entitled to vote at the meeting and complies with the procedures set forth in this Section 2.14; clause (C) shall be the exclusive means for a shareholder to make nominations or submit other business (other than matters properly brought under Rule 14a-8 under the Exchange Act and included in the corporation’s notice of meeting) before an Annual Meeting.

 

(ii)                                   Without qualification, for nominations or other business to be properly brought before an Annual Meeting by a shareholder pursuant to clause (C) of paragraph (a)(i) of this Section 2.14, the shareholder must have given timely notice thereof in writing to the Secretary of the corporation.  To be timely, a shareholder’s notice shall be received by the Secretary of the corporation at the principal offices of the corporation on or before December 31 of the year immediately preceding the Annual Meeting; provided, however, that in the event that the date of the Annual Meeting is on or after May 1 in any year, notice by the shareholder to be timely must be so received not later than the close of business on the day which is determined by adding to December 31 of the year immediately preceding such Annual Meeting the number of days starting with May 1 and ending on the date of the Annual Meeting in such year.  Such shareholder’s notice shall be signed by the shareholder of record who intends to make the nomination or introduce the other business (or his, her or its duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on this corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination or proposal is made; (B) the class and number of shares of the corporation which are beneficially owned by, and any other economic or equity interests in the corporation (including but not limited to swaps, futures, hedges, securities loans, options or other rights to acquire, voting rights, short interests, dividend rights and/or any other equity derivatives) owned or held by, such shareholder or beneficial owner or owners; (C) a representation that such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination or introduce the other business specified in the notice; (D) in the case of any proposed nomination for election or re-election as a director, (I) the name and residence address of the person or persons to be

 

9



 

nominated, (II) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder, (III) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors and (IV) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected; and (E) in the case of any other business that such shareholder proposes to bring before the meeting, (I) a brief description of the business desired to be brought before the meeting and, if such business includes a proposal to amend these bylaws, the language of the proposed amendment, (II) such shareholder’s and beneficial owner’s or owners’ reasons for conducting such business at the meeting and (III) any material interest in such business of such shareholder and beneficial owner or owners.

 

(iii)                                Notwithstanding anything in the second sentence of paragraph (a)(ii) of this Section 2.14 to the contrary, in the event that the number of directors to be elected to the Board of Directors of the corporation is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board of Directors made by the corporation at least seventy (70) days prior to the date of the Annual Meeting in the immediately preceding year, a shareholder’s notice required by this Section 2.14 shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be received by the Secretary at the principal offices of the corporation not later than the close of business on the 10th day following the day on which such public announcement is first made by the corporation.

 

(b)                                  Special Meetings .  Only such business shall be conducted at a Special Meeting as shall have been described in the notice of meeting sent to shareholders pursuant to Section 2.04 of these bylaws.  Nominations of persons for election to the Board of Directors may be made at a Special Meeting at which directors are to be elected pursuant to such notice of meeting (i) by or at the direction of the Board of Directors or (ii) by any shareholder of the corporation who (A) is a shareholder of record at the time of giving of such notice of meeting, (B) is entitled to vote at the meeting and (C) complies with the notice procedures set forth in this Section 2.14.  Any shareholder desiring to nominate persons for election to the Board of Directors at such a Special Meeting shall cause a written notice to be received by the Secretary of the corporation at the principal offices of the corporation not earlier than ninety days prior to such Special Meeting and not later than the close of business on the later of (x) the 60th day prior to such Special Meeting and (y) the 10th day following the day on which public announcement is first made of the date of such Special Meeting and of the nominees proposed by the Board of Directors to be elected at such meeting.  Such written notice shall be signed by the shareholder of record who intends to make the nomination (or his, her or its duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on the corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination is made; (B) the class and number of shares of the corporation which are beneficially owned by such shareholder or beneficial owner or owners; (C) a representation that

 

10



 

such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination specified in the notice; (D) the name and residence address of the person or persons to be nominated; (E) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder; (F) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors; and (G) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected.

 

(c)                                   General .

 

(i)                                      Only persons who are nominated in accordance with the procedures set forth in this Section 2.14 shall be eligible to serve as directors.  Only such business shall be conducted at an Annual Meeting or Special Meeting as shall have been brought before such meeting in accordance with the procedures set forth in this Section 2.14.  The chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in this Section 2.14 and, if any proposed nomination or business is not in compliance with this Section 2.14, to declare that such defective proposal shall be disregarded.

 

(ii)                                   For purposes of this Section 2.14, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

 

(iii)                                Notwithstanding the foregoing provisions of this Section 2.14, a shareholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.14.  Nothing in this Section 2.14 shall be deemed to limit the corporation’s obligation to include shareholder proposals in its proxy statement if such inclusion is required by Rule 14a-8 under the Exchange Act.

 

ARTICLE III.  BOARD OF DIRECTORS

 

3.01                            General Powers, Classification and Number .  All corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, the Board of Directors.  The number of directors of the corporation shall be eight (8).  All directors shall be members of a single class.

 

3.02                            Tenure and Qualifications .  Each director shall hold office until the next Annual Meeting and until his or her successor shall have been duly elected and, if necessary,

 

11



 

qualified, or until there is a decrease in the number of directors which takes effect after the expiration of his or her term, or until his or her prior retirement, death, resignation or removal.  A director may be removed from office only as provided in the articles of incorporation at a meeting of the shareholders called for the purpose of removing the director, and the meeting notice shall state that the purpose, or one of the purposes, of the meeting is removal of the director.  A director may resign at any time by delivering written notice which complies with the Wisconsin Business Corporation Law to the Board of Directors, to the Chairman of the Board or to the corporation.  A director’s resignation is effective when the notice is delivered unless the notice specifies a later effective date.  Directors need not be residents of the State of Wisconsin or shareholders of the corporation.  No other restrictions, limitations or qualifications may be imposed on individuals for service as a director.

 

3.03                            Chairman of the Board .  The Board of Directors may elect a director as the Chairman of the Board.  The Chairman of the Board shall, when present, preside at all meetings of the shareholders and of the Board of Directors, may call meetings of the shareholders and the Board of Directors, shall advise and counsel with the management of the corporation, and shall perform such other duties as set forth in these bylaws and as determined by the Board of Directors.  Except as provided in this Section 3.03, the Chairman shall be neither an officer nor an employee of the corporation by virtue of his or her election and service as Chairman of the Board; provided, however, the Chairman may be an officer of the corporation.  The Chairman may use the title Chairman or Chairman of the Board interchangeably.

 

3.04                            Regular Meetings .  A regular meeting of the Board of Directors shall be held without other notice than this bylaw immediately after the Annual Meeting and each adjourned session thereof.  The place of such regular meeting shall be the same as the place of the Annual Meeting which precedes it, or such other suitable place as may be announced at such Annual Meeting.  The Board of Directors may provide, by resolution, the date, time and place, either within or without the State of Wisconsin, for the holding of additional regular meetings of the Board of Directors without other notice than such resolution.

 

3.05                            Special Meetings .  Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board, the Chief Executive Officer or the President, or any three (3) directors.  The Chairman of the Board, the Chief Executive Officer or the President may fix any place, either within or without the State of Wisconsin, as the place for holding any special meeting of the Board of Directors, and if no other place is fixed the place of the meeting shall be the principal office of the corporation in the State of Wisconsin.

 

3.06                            Notice; Waiver .  Notice of each meeting of the Board of Directors (unless otherwise provided in or pursuant to Section 3.04 of these bylaws) shall be given by written or oral notice delivered or communicated in person, by telephone (including voicemail, answering machine or answering service), telegraph, teletype, facsimile, electronic mail or other form of wire or wireless communication (including electronic transmission), or by mail or private carrier that guarantees delivery on or before the next business day to each director at his or her business address or at such other address (including electronic mail address) as such director shall have designated in writing filed with the Secretary, in each case not less than forty-eight (48) hours prior to the meeting.  The notice need not describe the purpose of the meeting of the Board of Directors or the business to be transacted at such meeting.  If mailed, such notice shall be

 

12



 

deemed to be effective when deposited in the United States mail so addressed, with postage thereon prepaid.  If notice is given by telegram, such notice shall be deemed to be effective when the telegram is delivered to the telegraph company.  If notice is given by facsimile, electronic mail or other form of wire or wireless communication or electronic transmission, such notice shall be deemed to be effective when sent to the provided facsimile number, electronic mail address or other wire or wireless or electronic transmission address.  If notice is given by private carrier, such notice shall be deemed to be effective when delivered to the private carrier.  Whenever any notice whatever is required to be given to any director of the corporation under the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law, a waiver thereof in writing, signed at any time, whether before or after the date and time of meeting, by the director entitled to such notice shall be deemed equivalent to the giving of such notice.  The corporation shall retain any such waiver as part of the permanent corporate records.  A director’s attendance at or participation in a meeting waives any required notice to him or her of the meeting unless the director at the beginning of the meeting or promptly upon his or her arrival objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.

 

3.07                            Quorum .  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or these bylaws, a majority of the number of directors specified in Section 3.01 of these bylaws shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.  In the event that there are only three directors then in office, a quorum for the transaction of business at any meeting of the Board of Directors shall consist of one-third of the number of directors specified in Section 3.01 of these bylaws.  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or by these bylaws, a quorum of any committee of the Board of Directors created pursuant to Section 3.13 of these bylaws shall consist of a majority of the number of directors appointed to serve on the committee.  A majority of the directors present (though less than such quorum) may adjourn any meeting of the Board of Directors or any committee thereof, as the case may be, from time to time without further notice.

 

3.08                            Manner of Acting .  The affirmative vote of a majority of the directors present at a meeting of the Board of Directors or a committee thereof at which a quorum is present shall be the act of the Board of Directors or such committee, as the case may be, unless the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws require the vote of a greater number of directors.

 

3.09                            Conduct of Meetings .  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, an Executive Vice-President in the order provided under Section 4.08 of these bylaws, if any, and in their absence, a Vice President in the order provided under Section 4.10 of these bylaws, and in their absence, any director chosen by the directors present, shall call meetings of the Board of Directors to order and shall act as chairperson of the meeting.  The Secretary of the corporation shall act as secretary of all meetings of the Board of Directors but in the absence of the Secretary, the presiding officer may appoint any other person present to act as secretary of the meeting.  Minutes of any regular or special meeting of the Board of Directors shall be prepared and distributed to each director.

 

13



 

3.10                            Vacancies .  Any vacancies occurring in the Board of Directors, including a vacancy created by an increase in the number of directors, shall be filled only as provided in the articles of incorporation.  A vacancy that will occur at a specific later date, because of a resignation effective at a later date or otherwise, may be filled before the vacancy occurs, but the new director may not take office until the vacancy occurs.

 

3.11                            Compensation .  The Board of Directors, irrespective of any personal interest of any of its members, may establish reasonable compensation of all directors for services to the corporation as directors or may delegate such authority to an appropriate committee.  The Board of Directors also shall have authority to provide for or delegate authority to an appropriate committee to provide for reasonable pensions, disability or death benefits, and other benefits or payments, to directors, officers and employees and to their estates, families, dependents or beneficiaries on account of prior services rendered by such directors, officers and employees to the corporation.

 

3.12                            Presumption of Assent .  A director who is present and is announced as present at a meeting of the Board of Directors or any committee thereof created in accordance with Section 3.13 of these bylaws, when corporate action is taken, assents to the action taken unless any of the following occurs:  (a) the director objects at the beginning of the meeting or promptly upon his or her arrival to holding the meeting or transacting business at the meeting; (b) the director dissents or abstains from an action taken and minutes of the meeting are prepared that show the director’s dissent or abstention from the action taken; (c) the director delivers written notice that complies with the Wisconsin Business Corporation Law of his or her dissent or abstention to the presiding officer of the meeting before its adjournment or to the corporation immediately after adjournment of the meeting; or (d) the director dissents or abstains from an action taken, minutes of the meeting are prepared that fail to show the director’s dissent or abstention from the action taken, and the director delivers to the corporation a written notice of that failure that complies with the Wisconsin Business Corporation Law promptly after receiving the minutes.  Such right of dissent or abstention shall not apply to a director who votes in favor of the action taken.

 

3.13                            Committees .  The Board of Directors by resolution adopted by the affirmative vote of a majority of all of the directors then in office may create one or more committees, appoint members of the Board of Directors to serve on the committees and designate other members of the Board of Directors to serve as alternates.  Each committee shall have at least one member who shall, unless otherwise provided by the Board of Directors, serve at the pleasure of the Board of Directors.  A committee may be authorized to exercise the authority of the Board of Directors, except that a committee may not do any of the following:  (a) approve or recommend to shareholders for approval any action or matter expressly required by the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, to be submitted to shareholders for approval; and (b) adopt, amend or repeal any bylaw of the corporation.  Unless otherwise provided by the Board of Directors in creating the committee, a committee may employ counsel, accountants and other consultants to assist it in the exercise of its authority.

 

3.14                            Telephonic Meetings .  Except as herein provided and notwithstanding any place set forth in the notice of the meeting or these bylaws, members of the Board of Directors

 

14



 

(and any committees thereof created pursuant to Section 3.13 of these bylaws) may participate in regular or special meetings by, or through the use of, any means of communication by which all participants may simultaneously hear each other, such as by conference telephone.  If a meeting is conducted by such means, then at the commencement of such meeting the presiding officer shall inform the participating directors that a meeting is taking place at which official business may be transacted.  Any participant in a meeting by such means shall be deemed present in person at such meeting.  Notwithstanding the foregoing, no action may be taken at any meeting held by such means on any particular matter which the presiding officer determines, in his or her sole discretion, to be inappropriate under the circumstances for action at a meeting held by such means.  Such determination shall be made and announced in advance of such meeting.

 

3.15                            Action Without Meeting .  Any action required or permitted by the Wisconsin Business Corporation Law to be taken at a meeting of the Board of Directors or a committee thereof created pursuant to Section 3.13 of these bylaws may be taken without a meeting if the action is taken by all members of the Board or of the committee.  The action shall be evidenced by one or more written consents describing the action taken, signed by each director or committee member and retained by the corporation.  Such action shall be effective when the last director or committee member signs the consent, unless the consent specifies a different effective date.

 

ARTICLE IV.  OFFICERS

 

4.01                            Number .  The principal officers of the corporation shall be a Chief Executive Officer, a President, the number of Executive Vice-Presidents as authorized from time to time by the Board of Directors, the number of Presidents of groups, divisions or functions as authorized from time to time by the Board of Directors, the number of Vice Presidents as authorized from time to time by the Board of Directors, a Secretary, and a Treasurer, each of whom shall be elected by the Board of Directors.  Such other officers and assistant officers as may be deemed necessary may be elected or appointed by the Board of Directors.  The Board of Directors may also authorize any duly appointed officer to appoint one or more officers or assistant officers.  Any two or more offices may be held by the same person.

 

4.02                            Election and Term of Office .  The officers of the corporation to be elected by the Board of Directors shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each Annual Meeting of the shareholders.  If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as is practicable.  Each officer shall hold office until his or her successor shall have been duly elected or appointed or until his or her prior death, resignation or removal.

 

4.03                            Removal .  The Board of Directors may remove any officer and, unless restricted by the Board of Directors or these bylaws, an officer may remove any officer or assistant officer appointed by that officer, at any time, with or without cause and notwithstanding the contract rights, if any, of the officer removed.  The appointment of an officer does not of itself create contract rights.

 

4.04                            Resignation .  An officer may resign at any time by delivering notice to the corporation that complies with the Wisconsin Business Corporation Law.  The resignation shall

 

15



 

be effective when the notice is delivered, unless the notice specifies a later effective date and the corporation accepts the later effective date.

 

4.05                            Vacancies .  A vacancy in any principal office because of death, resignation, removal, disqualification or otherwise, shall be filled by the Board of Directors for the unexpired portion of the term.  If a resignation of an officer is effective at a later date as contemplated by Section 4.04 of these bylaws, the Board of Directors may fill the pending vacancy before the effective date if the Board provides that the successor may not take office until the effective date.

 

4.06                            Chief Executive Officer .  The Chief Executive Officer shall be the principal executive officer of the corporation and, subject to the control of the Board of Directors, shall in general supervise and control all of the business and affairs of the corporation.  The Chief Executive Officer shall have authority, subject to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the Chief Executive Officer.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by resolution of the Board of Directors; and, except as otherwise provided by law or the Board of Directors, he or she may authorize the President or any Executive Vice-President or Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  In general, he or she shall perform all duties incident to the office of Chief Executive Officer and such other duties as may be prescribed by the Board of Directors from time to time.  In the absence or disability of the Chairman of the Board, or when that position is vacant, the Chief Executive Officer shall, when present, preside at all meetings of the shareholders and of the Board of Directors.

 

4.07                            President .  The President shall assist the Chief Executive Officer in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer or by the Board of Directors.  The President shall have authority, subject to the authority of the Chief Executive Officer and to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the President.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by the Chief Executive Officer or by resolution of the Board of Directors; and, except as otherwise provided by law, the Chief Executive Officer or the Board of Directors, he or she may authorize any Executive Vice-President or Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  During the absence or disability of the Chief Executive

 

16



 

Officer, or while that office is vacant, the President shall exercise all the powers and discharge all of the duties of the Chief Executive Officer.

 

4.08                            The Executive Vice-Presidents .  Each Executive Vice-President shall assist the Chief Executive Officer and the President in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or the Board of Directors.  In the absence or disability of the President, the Executive Vice-President (or in the event there be more than one Executive Vice-President, the Executive Vice-Presidents in the order designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties and functions of the President.

 

4.09                            Presidents of Groups, Divisions or Functions .  Each President of a designated group, division or function of the business of the corporation shall have an appropriate descriptive designation for his or her title as from time to time determined by, and shall have authority over the designated group, division or function subject to any limitations from time to time established by, the Chief Executive Officer, the President or the Board of Directors.  Such President or Presidents of a designated group, division or function shall perform such other duties and have such additional authority as from time to time may be assigned to him or her by the Chief Executive Officer, President or the Board of Directors.  Such President or Presidents of a designated group, division or function shall report to the Chief Executive Officer or such other officer of the corporation as designated by the Chief Executive Officer.

 

4.10                            The Vice Presidents .  In the absence or disability of both the President and all of the Executive Vice-Presidents, the Vice President (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President.  Any Vice President may sign, with the Secretary or Assistant Secretary, certificates for shares of the corporation; and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or the Board of Directors.  The execution of any instrument of the corporation by any Vice President shall be conclusive evidence, as to third parties, of his or her authority to act in the stead of the President.  The Board of Directors may designate any Vice President as being senior in rank or degree of responsibility and may accord such a Vice President an appropriate title designating his or her senior rank, such as “Senior Vice President.”  The Board of Directors may assign a certain Vice President responsibility for a designated group, division or function of the corporation’s business and add an appropriate descriptive designation to his or her title.

 

4.11                            The Secretary .  The Secretary shall:  (a) keep minutes of the meetings of the shareholders and of the Board of Directors (and of committees thereof) in one or more books provided for that purpose (including records of actions taken by the shareholders or the Board of Directors (or committees thereof) without a meeting); (b) see that all notices are duly given in accordance with the provisions of these bylaws or as required by the Wisconsin Business Corporation Law; (c) be custodian of the corporate records and of the seal of the corporation and

 

17



 

see that the seal of the corporation is affixed to all documents the execution of which on behalf of the corporation under its seal is duly authorized; (d) maintain or cause an authorized agent to maintain a record of the shareholders of the corporation, in a form that permits preparation of a list of the names and addresses of all shareholders, by class or series of shares and showing the number and class or series of shares held by each shareholder; (e) sign with the Chief Executive Officer, the President, an Executive Vice-President or a Vice President, certificates for shares of the corporation, the issuance of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the stock transfer books of the corporation; and (g) in general perform all duties incident to the office of Secretary and have such other duties and exercise such authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President, an Executive Vice-President or the Board of Directors.

 

4.12                            The Treasurer .  The Treasurer shall:  (a) have charge and custody of and be responsible for all funds and securities of the corporation; (b) maintain appropriate accounting records; (c) receive and give receipts for moneys due and payable to the corporation from any source whatsoever, and deposit all such moneys in the name of the corporation in such banks, trust companies or other depositaries as shall be selected in accordance with the provisions of Section 5.04 of these bylaws; and (d) in general perform all of the duties incident to the office of Treasurer and have such other duties and exercise such other authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President, an Executive Vice-President or the Board of Directors.  If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his or her duties in such sum and with such surety or sureties as the Board of Directors shall determine.

 

4.13                            Assistant Secretaries and Assistant Treasurers .  There shall be such number of Assistant Secretaries and Assistant Treasurers as the Board of Directors may from time to time authorize.  The Assistant Secretaries may sign with the Chief Executive Officer, the President, an Executive Vice-President or a Vice President certificates for shares of the corporation the issuance of which shall have been authorized by a resolution of the Board of Directors.  The Assistant Treasurers shall respectively, if required by the Board of Directors, give bonds for the faithful discharge of their duties in such sums and with such sureties as the Board of Directors shall determine.  The Assistant Secretaries and Assistant Treasurers, in general, shall perform such duties and have such authority as shall from time to time be delegated or assigned to them by the Secretary or the Treasurer, respectively, or by the President or the Board of Directors.

 

4.14                            Other Assistants and Acting Officers .  The Board of Directors shall have the power to appoint, or to authorize any duly appointed officer of the corporation to appoint, any person to act as assistant to any officer, or as agent for the corporation in his or her stead, or to perform the duties of such officer whenever for any reason it is impracticable for such officer to act personally, and such assistant or acting officer or other agent so appointed by the Board of Directors or an authorized officer shall have the power to perform all the duties of the office to which he or she is so appointed to be an assistant, or as to which he or she is so appointed to act, except as such power may be otherwise defined or restricted by the Board of Directors or the appointing officer.

 

18



 

4.15          Salaries .  The salaries of the principal officers shall be fixed from time to time by the Board of Directors or by a duly authorized committee thereof, and no officer shall be prevented from receiving such salary by reason of the fact that he or she is also a director of the corporation.

 

ARTICLE V.  CONTRACTS, LOANS, CHECKS AND

DEPOSITS; SPECIAL CORPORATE ACTS

 

5.01          Contracts .  The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute or deliver any instrument in the name of and on behalf of the corporation, and such authorization may be general or confined to specific instances.  In the absence of other designation, all deeds, mortgages and instruments of assignment or pledge made by the corporation shall be executed in the name of the corporation by the Chief Executive Officer, the President, an Executive Vice-President or a Vice President and by the Secretary, an Assistant Secretary, the Treasurer or an Assistant Treasurer; the Secretary or an Assistant Secretary, when necessary or required, shall affix the corporate seal, if any, thereto; and when so executed no other party to such instrument or any third party shall be required to make any inquiry into the authority of the signing officer or officers.

 

5.02          Loans .  No indebtedness for borrowed money shall be contracted on behalf of the corporation and no evidences of such indebtedness shall be issued in its name unless authorized by or under the authority of a resolution of the Board of Directors.  Such authorization may be general or confined to specific instances.

 

5.03          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 or under the authority of a resolution of the Board of Directors.

 

5.04          Deposits .  All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the corporation in such banks, trust companies or other depositaries as may be selected by or under the authority of a resolution of the Board of Directors.

 

5.05          Voting of Securities Owned by this Corporation .  Subject always to the specific directions of the Board of Directors, (a) any shares or other securities issued by any other corporation and owned or controlled by this corporation may be voted at any meeting of security holders of such other corporation by the Chief Executive Officer or the President of this corporation if any of them shall be present, or in their absence by any Executive Vice-President or Vice President of this corporation who may be present, and (b) whenever, in the judgment of the Chief Executive Officer or President, or in their absence, of any Executive Vice-President or Vice President, it is desirable for this corporation to execute a proxy or written consent in respect to any shares or other securities issued by any other corporation and owned by this corporation, such proxy or consent shall be executed in the name of this corporation by the Chief Executive Officer, the President, an Executive Vice-President or a Vice Presidents of this corporation, without necessity of any authorization by the Board of Directors, affixation of corporate seal, if

 

19



 

any, or countersignature or attestation by another officer.  Any person or persons designated in the manner above stated as the proxy or proxies of this corporation shall have full right, power and authority to vote the shares or other securities issued by such other corporation and owned by this corporation the same as such shares or other securities might be voted by this corporation.

 

ARTICLE VI.  CERTIFICATES FOR SHARES; TRANSFER OF SHARES

 

6.01          Certificates for Shares .  Certificates representing shares of the corporation shall be in such form, consistent with the Wisconsin Business Corporation Law, as shall be determined by the Board of Directors.  Such certificates shall be signed by the Chief Executive Officer, the President, an Executive Vice-President or a Vice President and by the Secretary or an Assistant Secretary.  All certificates for shares shall be consecutively numbered or otherwise identified.  The Board of Directors may authorize the issuance of any of its classes or series of shares without certificates.  The name and address of the person to whom the shares represented thereby are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the corporation.  All certificates surrendered to the corporation for transfer shall be cancelled and no new certificate shall be issued until the former certificate for a like number of shares shall have been surrendered and cancelled, except as provided in Section 6.06 of these bylaws.  To the extent required by the Wisconsin Business Corporation Law, within a reasonable time after the issuance or transfer of shares without a certificate, the corporation shall send to the registered owner thereof a written notice that shall set forth (a) the name of the corporation; (b) that the corporation is organized under the laws of the State of Wisconsin; (c) the name of the shareholder; (d) the number and class (and the designation of the series, if any) of the shares represented; (e) if applicable, a summary of the designations, relative rights, preferences and limitation applicable to each class, and, if applicable, the variations in rights, preferences and limitations determined for each series and the authority of the Board of Directors to determine variations for future series (or a conspicuous statement that upon written request the corporation will furnish the shareholder with this information without charge); and (f) if applicable, any restrictions on the transfer or registration of such shares of stock imposed by the articles of incorporation, these bylaws, any agreement among shareholders or any agreement between shareholders and the corporation.

 

6.02          Seal, Facsimile Signatures and Electronic Signatures .  The seal of the corporation, if any, on any certificates for shares may be a facsimile.  The signature of the Chief Executive Officer, the President, an Executive Vice-President or Vice President and the Secretary or Assistant Secretary upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent, or a registrar, other than the corporation itself or an employee of the corporation.  Unless otherwise prohibited by law, any document that requires a manual, facsimile or other form of signature or that is given effect with a manual, facsimile or other form of signature under these bylaws may be signed or given effect with an electronic signature (as defined in Section 137.04 of the Wisconsin Statutes) if the electronic signature meets all of the following requirements:

 

(a)            The electronic signature is unique to the person using it.

 

(b)            The electronic signature is capable of verification.

 

20



 

(c)            The electronic signature is under the sole control of the person using it.

 

(d)            The electronic signature is linked to the document to which it is attached or associated in such a manner that, if the document is altered after the electronic signature is created, the electronic signature is invalidated.

 

6.03          Signature by Former Officers .  The validity of a share certificate is not affected if a person who signed the certificate (either manually, by facsimile or by electronic transmission) no longer holds office when the certificate is issued.

 

6.04          Transfer of Shares .  Prior to due presentment of a certificate for shares for registration of transfer the corporation may treat the registered owner of such shares as the person exclusively entitled to vote, to receive notifications and otherwise to have and exercise all the rights and powers of an owner.  Where a certificate for shares is presented to the corporation with a request to register for transfer, the corporation shall not be liable to the owner or any other person suffering loss as a result of such registration of transfer if (a) there were on or with the certificate the necessary endorsements, or, with respect to uncertificated shares, proper transfer instructions are received; and (b) the corporation had no duty to inquire into adverse claims or has discharged any such duty.  The corporation may require reasonable assurance that such endorsements or transfer instructions are genuine and effective and compliance with such other regulations as may be prescribed by or under the authority of the Board of Directors.

 

6.05          Restrictions on Transfer .  The face or reverse side of each certificate representing shares shall bear a conspicuous notation of any restriction imposed by the corporation upon the transfer of such shares.

 

6.06          Lost, Destroyed or Stolen Certificates .  The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed.  When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the person requesting such new certificate or certificates, or his or her legal representative, to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen or destroyed.

 

6.07          Consideration for Shares .  The Board of Directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation.  Before the corporation issues shares, the Board of Directors shall determine that the consideration received or to be received for the shares to be issued is adequate.  The determination of the Board of Directors is conclusive insofar as the adequacy of consideration for the issuance of shares relates to whether the shares are validly issued, fully paid and nonassessable.  The corporation may place in escrow shares issued in whole or in part for a contract for future services or benefits, a promissory note, or other property to be issued in the future, or make other arrangements to restrict the transfer of the shares, and may credit distributions in respect of the shares against their purchase price, until the services are

 

21



 

performed, the benefits or property are received or the promissory note is paid.  If the services are not performed, the benefits or property are not received or the promissory note is not paid, the corporation may cancel, in whole or in part, the shares escrowed or restricted and the distributions credited.

 

6.08          Stock Regulations .  The Board of Directors shall have the power and authority to make all such further rules and regulations not inconsistent with law as it may deem expedient concerning the issue, transfer and registration of shares of the corporation.

 

6.09          No Nominee Procedures .  The corporation has not established, and nothing in these bylaws shall be deemed to establish, any procedure by which a beneficial owner of the corporation’s shares that are registered in the name of a nominee is recognized by the corporation as a shareholder under Section 180.0723 of the Wisconsin Business Corporation Law.

 

ARTICLE VII.  SEAL

 

7.01          The Board of Directors may provide for a corporate seal for the corporation.

 

ARTICLE VIII.  FISCAL YEAR

 

8.01          The fiscal year of the corporation shall be from January 1 to December 31.

 

ARTICLE IX.  INDEMNIFICATION

 

9.01          Certain Definitions .  All terms used in this Article IX and not otherwise hereinafter defined in this Article IX shall have the meaning set forth in Section 180.0850 of the Wisconsin Business Corporation Law (the “Statute”).  The following terms (including any plural forms thereof) used in this Article IX are defined as follows:

 

(a)            “Affiliate” shall include, without limitation, any Person (including without limitation an employee benefit plan or trust) that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Corporation.

 

(b)            “Authority” shall mean the entity selected by the Director or Officer or Covered Person to determine his or her right to indemnification pursuant to Section 9.04 of this Article IX.

 

(c)            “Board of Directors” shall mean the entire then elected and serving Board of Directors of the Corporation, including all members thereof who are Parties to the subject Proceeding or any related Proceeding.

 

(d)            “Breach of Duty” shall mean the Director or Officer or Covered Person breached or failed to perform his or her duties to the Corporation and his or her breach of or failure to perform those duties is determined, in accordance with Section 9.04 of this Article IX, to constitute misconduct under Section 180.0851(2)(a) 1, 2, 3 or 4 of the Statute.

 

22



 

(e)            “Corporation,” as used herein and as defined in the Statute and incorporated by reference into the definitions of certain other capitalized terms used herein, shall mean the corporation, including, without limitation, any successor corporation or entity to the corporation by way of merger, consolidation or acquisition of all or substantially all of the capital stock or assets of the corporation.

 

(f)             “Covered Person” shall mean any trustee of any employee benefit plan of the Corporation, and any person serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture or trust.

 

(g)            “Director or Officer” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, it shall be conclusively presumed that any Director or Officer serving as a director, officer, partner, trustee, member of any governing or decision-making committee, employee or agent of an Affiliate shall be so serving at the request of the Corporation.

 

(h)            “Disinterested Quorum” shall mean a quorum of the Board of Directors who are not Parties to the subject Proceeding or any related Proceeding.

 

(i)             “Party” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, the term “Party” shall also include any Director or Officer, Covered Person or employee of the Corporation who is or was a witness in a Proceeding at a time when he or she has not otherwise been formally named a Party thereto.

 

(j)             “Person” shall mean any individual, partnership, limited liability partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group deemed to be a person under Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(k)            “Proceeding” shall have the meaning set forth in the Statute; provided, that, in accordance with Section 180.0859 of the Statute and for purposes of this Article IX, the term “Proceeding” shall also include all Proceedings (i) brought under (in whole or in part) the Securities Act of 1933, as amended, the Exchange Act, their respective state counterparts, and/or any rule or regulation promulgated under any of the foregoing; (ii) brought before an Authority or otherwise to enforce rights hereunder; (iii) any appeal from a Proceeding; and (iv) any Proceeding in which the Director or Officer or Covered Person is a plaintiff or petitioner because he or she is a Director or Officer or Covered Person; provided, however, that any such Proceeding under this subsection (iv) must be authorized by a majority vote of a Disinterested Quorum.

 

(l)             “Statute” shall mean Sections 180.0850 through 180.0859, inclusive, of the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, as the same shall then be in effect, including any amendments thereto, but, in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than the Statute permitted or required the Corporation to provide prior to such amendment.

 

23



 

9.02          Mandatory Indemnification of Directors and Officers and Covered Persons .  To the fullest extent permitted or required by the Statute, the Corporation shall indemnify a Director or Officer or Covered Person against all Liabilities incurred by or on behalf of such Director or Officer or Covered Person in connection with a Proceeding in which the Director or Officer or Covered Person is a Party because he or she is a Director or Officer or Covered Person.

 

9.03          Procedural Requirements .

 

(a)            A Director or Officer or Covered Person who seeks indemnification under Section 9.02 of this Article IX shall make a written request therefor to the Corporation.  Subject to subsection (b) of this Section 9.03, within sixty (60) days of the Corporation’s receipt of such request, the Corporation shall pay or reimburse the Director or Officer or Covered Person for the entire amount of Liabilities incurred by the Director or Officer or Covered Person in connection with the subject Proceeding (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX).

 

(b)            No indemnification shall be required to be paid by the Corporation pursuant to Section 9.02 of this Article IX if, within such sixty-day period, (i) a Disinterested Quorum, by a majority vote thereof, determines that the Director or Officer or Covered Person requesting indemnification engaged in misconduct constituting a Breach of Duty or (ii) a Disinterested Quorum cannot be obtained.

 

(c)            In either case of nonpayment pursuant to subsection (b) of this Section 9.03, the Board of Directors shall immediately authorize by resolution that an Authority, as provided in Section 9.04 of this Article IX, determine whether the conduct of the Director or Officer or Covered Person constituted a Breach of Duty and, therefore, whether indemnification should be denied hereunder.

 

(d)            (i)  If the Board of Directors does not authorize an Authority to determine the Director’s or Officer’s or Covered Person’s right to indemnification hereunder within such sixty-day period and/or (ii) if indemnification of the requested amount of Liabilities is paid by the Corporation, then it shall be conclusively presumed for all purposes that a Disinterested Quorum has affirmatively determined that the Director or Officer or Covered Person did not engage in misconduct constituting a Breach of Duty and, in the case of clause (i) above (but not clause (ii)), indemnification by the Corporation of the requested amount of Liabilities shall be paid to the Director or Officer or Covered Person immediately.

 

9.04          Determination of Indemnification .

 

(a)            If the Board of Directors authorizes an Authority to determine a Director’s or Officer’s or Covered Person’s right to indemnification pursuant to Section 9.03 of this Article IX, then the Director or Officer or Covered Person requesting indemnification shall have the absolute discretionary authority to select one of the following as such Authority:

 

(i)             An independent legal counsel; provided, that such counsel shall be mutually selected by such Director or Officer or Covered Person and by a majority vote

 

24



 

of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors;

 

(ii)            A panel of three arbitrators selected from the panels of arbitrators of the American Arbitration Association in Milwaukee, Wisconsin; provided, that (A) one arbitrator shall be selected by such Director or Officer or Covered Person, the second arbitrator shall be selected by a majority vote of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors, and the third arbitrator shall be selected by the two previously selected arbitrators, and (B) in all other respects (other than this Article IX), such panel shall be governed by the American Arbitration Association’s then existing Commercial Arbitration Rules; or

 

(iii)           A court pursuant to and in accordance with Section 180.0854 of the Statute.

 

(b)            In any such determination by the selected Authority there shall exist a rebuttable presumption that the conduct of the Director or Officer or Covered Person did not constitute a Breach of Duty and that indemnification against the requested amount of Liabilities is required.  The burden of rebutting such a presumption by clear and convincing evidence shall be on the Corporation or such other party asserting that such indemnification should not be allowed.

 

(c)            The Authority shall make its determination within sixty (60) days of being selected and shall submit a written opinion of its conclusion simultaneously to both the Corporation and the Director or Officer or Covered Person.

 

(d)            If the Authority determines that indemnification is required hereunder, then the Corporation shall pay the entire requested amount of Liabilities (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX), including interest thereon at a reasonable rate, as determined by the Authority, within ten (10) days of receipt of the Authority’s opinion; provided, that, if it is determined by the Authority that a Director or Officer or Covered Person is entitled to indemnification against Liabilities’ incurred in connection with some claims, issues or matters, but not as to other claims, issues or matters, involved in the subject Proceeding, the Corporation shall be required to pay (as set forth above) only the amount of such requested Liabilities as the Authority shall deem appropriate in light of all of the circumstances of such Proceeding.

 

(e)            The determination by the Authority that indemnification is required hereunder shall be binding upon the Corporation regardless of any prior determination that the Director or Officer or Covered Person engaged in a Breach of Duty.

 

(f)             All Expenses incurred in the determination process under this Section 9.04 by either the Corporation or the Director or Officer or Covered Person, including, without limitation, all Expenses of the selected Authority, shall be paid by the Corporation.

 

25



 

9.05          Mandatory Allowance of Expenses .

 

(a)            The Corporation shall pay or reimburse from time to time or at any time, within ten (10) days after the receipt of the Director’s or Officer’s or Covered Person’s written request therefor, the reasonable Expenses of the Director or Officer or Covered Person as such Expenses are incurred; provided, the following conditions are satisfied:

 

(i)             The Director or Officer or Covered Person furnishes to the Corporation an executed written certificate affirming his or her good faith belief that he or she has not engaged in misconduct that constitutes a Breach of Duty; and

 

(ii)            The Director or Officer or Covered Person furnishes to the Corporation an unsecured executed written agreement to repay any advances made under this Section 9.05 if it is ultimately determined by an Authority that he or she is not entitled to be indemnified by the Corporation for such Expenses pursuant to Section 9.04 of this Article IX.

 

(b)            If the Director or Officer or Covered Person must repay any previously advanced Expenses pursuant to this Section 9.05, then such Director or Officer or Covered Person shall not be required to pay interest on such amounts.

 

9.06          Indemnification and Allowance of Expenses of Certain Others .

 

(a)            The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify a director or officer of an Affiliate (who is not otherwise serving as a Director or Officer or Covered Person) against all Liabilities, and shall advance the reasonable Expenses, incurred by such director or officer in a Proceeding to the same extent hereunder as if such director or officer incurred such Liabilities because he or she was a Director or Officer or Covered Person, if such director or officer is a Party thereto because he or she is or was a director or officer of the Affiliate.

 

(b)            The Corporation shall indemnify an employee of the Corporation who is not a Director or Officer or Covered Person, to the extent that he or she has been successful on the merits or otherwise in defense of a Proceeding, for all reasonable Expenses incurred in the Proceeding if the employee was a Party because he or she was an employee of the Corporation.

 

(c)            The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify (to the extent not otherwise provided in subsection (b) of this Section 9.06) against Liabilities incurred by, and/or provide for the allowance of reasonable Expenses of, an employee or authorized agent of the Corporation acting within the scope of his or her duties as such and who is not otherwise a Director or Officer or Covered Person.

 

9.07          Insurance .  The Corporation may purchase and maintain insurance on behalf of a Director or Officer or Covered Person or any individual who is or was an employee or authorized agent of the Corporation against any Liability asserted against or incurred by such individual in his or her capacity as such or arising from his or her status as such, regardless of

 

26



 

whether the Corporation is required or permitted to indemnify against any such Liability under this Article IX.

 

9.08          Notice to the Corporation .  A Director or Officer, Covered Person or employee shall promptly notify the Corporation in writing when he or she has actual knowledge of a Proceeding that may result in a claim of indemnification against Liabilities or allowance of Expenses hereunder, but the failure to do so shall not relieve the Corporation of any liability to the Director or Officer, Covered Person or employee hereunder unless the Corporation shall have been irreparably prejudiced by such failure (as determined, in the case of Directors or Officers or Covered Persons only, by an Authority selected pursuant to Section 9.04(a) of this Article IX).

 

9.09          Severability .  If any provision of this Article IX shall be deemed invalid or inoperative, or if a court of competent jurisdiction determines that any of the provisions of this Article IX contravene public policy, then this Article IX shall be construed so that the remaining provisions shall not be affected, but shall remain in full force and effect, and any such provisions that are invalid or inoperative or that contravene public policy shall be deemed, without further action or deed by or on behalf of the Corporation, to be modified, amended and/or limited, but only to the extent necessary to render the same valid and enforceable; it being understood that it is the Corporation’s intention to provide the Directors and Officers and Covered Persons with the broadest possible protection against personal liability allowable under the Statute.

 

9.10          Nonexclusivity of Article IX .  The rights of a Director or Officer, Covered Person or employee (or any other person) granted under this Article IX shall not be deemed exclusive of any other rights to indemnification against Liabilities or allowance of Expenses to which the Director or Officer, Covered Person or employee (or such other person) may be entitled under any written agreement, Board of Director resolution, vote of shareholders of the Corporation or otherwise, including, without limitation, under the Statute.  Nothing contained in this Article IX shall be deemed to limit the Corporation’s obligations to indemnify against Liabilities or allow Expenses to a Director or Officer, Covered Person or employee under the Statute.

 

9.11          Contractual Nature of Article IX; Repeal or Limitation of Rights .  This Article IX shall be deemed to be a contract between the Corporation and each Director or Officer, Covered Person and employee of the Corporation, and any repeal or other limitation of this Article IX or any repeal or limitation of the Statute or any other applicable law shall not limit any rights of indemnification against Liabilities or allowance of Expenses then existing or arising out of events, acts or omissions occurring prior to such repeal or limitation, including, without limitation, the right to indemnification against Liabilities or allowance of Expenses for Proceedings commenced after such repeal or limitation to enforce this Article IX with regard to acts, omissions or events arising prior to such repeal or limitation.

 

ARTICLE X.  AMENDMENTS

 

10.01        By Shareholders .  Except as otherwise provided in the articles of incorporation or these bylaws, these bylaws may be amended or repealed and new bylaws may be adopted by the shareholders at any Annual Meeting or Special Meeting at which a quorum is in attendance.

 

27



 

10.02        By Directors .  Except as otherwise provided by the Wisconsin Business Corporation Law or the articles of incorporation, these bylaws may also be amended or repealed and new bylaws may be adopted by the Board of Directors by affirmative vote of a majority of the number of directors present at any meeting at which a quorum is in attendance; provided, however, that the shareholders in adopting, amending or repealing a particular bylaw may provide therein that the Board of Directors may not amend, repeal or readopt that bylaw.

 

10.03        Implied Amendments .  Any action taken or authorized by the shareholders or by the Board of Directors which would be inconsistent with the bylaws then in effect but which is taken or authorized by affirmative vote of not less than the number of shares or the number of directors required to amend the bylaws so that the bylaws would be consistent with such action shall be given the same effect as though the bylaws had been temporarily amended or suspended so far, but only so far, as is necessary to permit the specific action so taken or authorized.

 

28


Exhibit 9.1

 

QUAD/GRAPHICS, INC.

 

AMENDED AND RESTATED

VOTING TRUST AGREEMENT

 

 

Dated as of

June 25, 2010

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

Article I DEPOSIT OF STOCK

2

1.01

Deposit of Stock.

2

1.02

Issuance of Certificates.

2

1.03

After Acquired Stock.

2

1.04

Other Shareholders.

3

1.05

Surrender of Stock Certificates .

3

1.06

Beneficiary.

3

1.07

Stock.

4

1.08

Trustees.

4

1.09

Depositor.

4

1.10

Restricted Stock.

5

1.11

Public Offering.

5

 

 

 

Article II DIVIDENDS, DISTRIBUTIONS AND LIQUIDATION

5

2.01

Dividends and Distributions.

5

2.02

Issuance of Stock.

6

2.03

Dissolution .

6

 

 

 

Article III POWERS OF TRUSTEES

7

3.01

Trustees As Owners of Stock.

7

3.02

Voting of Stock.

7

3.03

Public Offerings.

8

3.04

Sale of Stock by Trustee.

8

3.05

Conflict of Interest.

10

3.06

Expenses and Disbursements.

10

3.07

Experts.

11

3.08

Financial Reports.

12

3.09

Secretary.

12

 

 

 

Article IV METHOD OF ACTION BY THE TRUSTEES

13

4.01

Actions by Trustees.

13

4.02

Written Consent.

13

4.03

Notice.

13

 

 

 

Article V TRANSFER OF TRUST CERTIFICATES

13

5.01

Transfer of Certificates.

13

5.02

Permitted Transfers.

14

5.03

Voluntary Transfer During Life (other than by Permitted Transfer, Pledge or Gift).

15

5.04

Transfer By Pledge or Grant of Security Interest.

18

5.05

Voluntary Transfer by Gift.

18

5.06

Involuntary Transfer.

19

5.07

Death of a Beneficiary.

21

 

i



 

5.08

Termination of Marital Relationship.

23

5.09

Provisions Related to Exercise of Purchase Options.

25

5.10

Purchase Price.

30

5.11

Terms of Payment.

33

5.12

Exchange of Class B Shares for Class A Shares.

34

5.13

Public Company Registration.

38

5.14

Expenses.

39

 

 

 

Article VI ELECTION AND REMOVAL OF TRUSTEES

39

6.01

Trustee.

39

6.02

Successor Trustees.

39

6.03

Removal.

39

6.04

Eligibility.

39

6.05

Incapacitated.

40

6.06

Resignation.

40

 

 

 

Article VII AMENDMENT AND TERMINATION

40

7.01

Amendments.

40

7.02

Amendment by Trustees.

40

7.03

Term.

42

7.04

Termination.

42

7.05

Withdrawal of Stock.

42

7.06

Distribution Upon Termination.

44

 

 

 

Article VIII NOTICES

45

8.01

Notice.

45

8.02

Waiver.

45

 

 

 

Article IX MISCELLANEOUS

46

9.01

Interpretation.

46

9.02

Nonliability; Indemnity.

46

9.03

Severability.

46

9.04

Savings Provision.

47

9.05

Counterparts; Filing of Agreement.

47

9.06

Record of Beneficiaries.

47

9.07

Lost, Stolen or Destroyed Certificates.

47

9.08

Applicable Law.

48

 

EXHIBIT A - VOTING TRUST CERTIFICATE

EXHIBIT B - ASSIGNMENT

 

ii



 

BENEFICIARY RIGHTS INDEX

 

 

 

Section

 

 

 

Definition of Beneficiary

 

1.06

 

 

 

How Beneficiaries receive dividends

 

2.01

 

 

 

Beneficiary rights to additional stock, stock dividend or stock split-up

 

2.02

 

 

 

Beneficiary rights in event of dissolution

 

2.03

 

 

 

Beneficiary rights regarding merger, liquidation or sale of Stock

 

3.03

 

 

 

Assessment against Beneficiary of Trust expenses

 

3.04(b), 3.06

 

 

 

Beneficiary rights to receive financial and other reports

 

3.08

 

 

 

Beneficiary rights regarding Transfer of Trust Certificates

 

5.01 thru 5.13

 

 

 

Beneficiary rights regarding election and removal of Trustees

 

6.01 thru 6.06

 

 

 

Beneficiary rights regarding amendment and termination of the Trust

 

7.01, 7.04, 7.06

 

 

 

Beneficiary rights regarding withdrawal of Stock

 

7.01, 7.05

 

iii



 

QUAD/GRAPHICS, INC.

AMENDED AND RESTATED

VOTING TRUST AGREEMENT

 

Pursuant to the power reserved in Section 7.01(b) of the Quad/Graphics, Inc. Voting Trust Agreement between the signatories thereto, as Depositors, and Harry V. Quadracci, as Initial Trustee, originally dated September 1, 1982 (the “September 1 Voting Trust Agreement”), amended and restated April 29, 2000, and amended June 1, 2001, and October 15, 2004 (the “April 29 Voting Trust Agreement”), the Trustees hereby amend and restate said April 29 Voting Trust Agreement in its entirety as of the 25 th  day of June, 2010, as follows:

 

W I T N E S S E T H:

 

WHEREAS, Quad/Graphics, Inc., a Wisconsin corporation (the “Company”) has asked for shareholder approval to enter the transactions contemplated by the Arrangement Agreement, dated as of January 25, 2010, with World Color Press Inc., pursuant to which the Company will acquire World Color Press in an amalgamation under Canadian law as part of a Plan of Arrangement, including, without limitation, the acquisition of World Color Press and the issuance of shares of Quad/Graphics Class A common stock in connection with the acquisition and as contemplated by the Arrangement Agreement.

 

WHEREAS, as a result of the transactions described above the Class A Common stock of the Company will be listed on a United States securities market or exchange;

 

WHEREAS, as a result of these changes the Trustees deem it advisable and in the best interests of the Voting Trust and the Beneficiaries of the Voting Trust to amend and restate of the April 29 Voting Trust Agreement; and

 

NOW, THEREFORE, in consideration of the agreements and undertakings made in this Agreement and other valuable consideration, the receipt of which is hereby

 



 

acknowledged, the Trustees hereby amend and restate the April 29 Voting Trust Agreement to provide as follows:

 

ARTICLE I

DEPOSIT OF STOCK

 

1.01                            Deposit of Stock .  All shares of Stock previously deposited with the Initial Trustee and/or the Trustees shall remain deposited with the Trustees and their successors and full legal title to all such Stock shall remain vested in the Trustees and their successors with all of the rights and powers of the owner and holder of the Stock of whatever nature necessary to enable the Trustees and their successors to exercise the powers vested in them under this Agreement.

 

1.02                            Issuance of Certificates .  The trust certificates issued to each of the Depositors under the September 1 Voting Trust Agreement (the “September 1 Trust Certificates”) or the April 29 Voting Trust Agreement (the “April 29 Trust Certificates”) shall remain in full force and effect and continue to represent the shares of Stock transferred by such Depositor under the September 1 Voting Trust Agreement or the April 29 Voting Trust Agreement.  Any reference to the “Voting Trust Agreement” in any such September 1 Trust Certificate or April 29 Trust Certificate shall now mean this Agreement.  Upon the transfer to the Trustees of any additional Stock, whether pursuant to Section 1.03 or Section 1.04, the Depositor who transferred such Stock shall receive from the Trustees a trust certificate or certificates (a “New Trust Certificate”) for the Stock transferred by him or her to the Trustees which New Trust Certificate shall be in substantially the form of Exhibit “A” hereto.  Each New Trust Certificate shall be signed by at least one Trustee.  The September 1 Trust Certificates, April 29 Trust Certificates and the New Trust Certificates are collectively referred to as the “Trust Certificates.”

 

1.03                            After Acquired Stock .  Any Beneficiary who owns or holds and at any time after the date of this Agreement acquires additional common stock or other securities of the Company

 

2



 

having any voting rights has the option to transfer such stock or other securities to the Trustees and subject such stock or other securities to the provisions of this Agreement.  If such Beneficiary decides to transfer such additional stock or other securities to the Trustees, the Trustees shall then deliver to such Beneficiary an additional Trust Certificate evidencing such additional Stock, and such Stock and Trust Certificate shall thereafter be subject to all terms and conditions of this Agreement.

 

1.04                            Other Shareholders .  Any individual, trust, corporation, partnership or other entity owning shares of common stock or other securities of the Company may, at any time and upon the unanimous written consent of the Trustees, elect to become an additional Depositor and to transfer such stock or other securities to the Trustees in accordance with this Agreement.  Upon such transfer, the Trustees shall deliver to such additional Depositor a Trust Certificate evidencing the Stock transferred and such Stock and Trust Certificate shall thereafter be subject to all the terms and conditions of this Agreement.

 

1.05                            Surrender of Stock Certificates .  All certificates for common stock or securities transferred and delivered to the Trustees pursuant to this Agreement shall be surrendered by the Trustees to the Company and cancelled, and new certificates therefor shall be issued by the Company to and in the names of the Trustees.  Such new certificates, and any other certificates for shares of common stock or other securities issued to the Trustees pursuant to this Agreement, shall be endorsed by the Company with a legend to the effect that they are issued pursuant and subject to this Agreement and a similar notation shall appear in the appropriate place in the transfer books of the Company.

 

1.06                            Beneficiary .  The term “Beneficiary”, as used in this Agreement, shall mean a holder of record on the books of the Trustees of Trust Certificates, and shall be construed to

 

3



 

mean and include not only such holders and owners acting in their own right, but also any person or entity holding Trust Certificates as a trustee or guardian or in any other representative or fiduciary capacity.

 

1.07                            Stock .  The term “Stock”, as used in this Agreement, shall include all of the common stock or other securities of the Company originally or subsequently transferred by the Depositors to the Trustees pursuant to this Agreement, and all stock, securities and other property subsequently received by the Trustees by reason of this Agreement and retained by the Trustees subject to the terms of this Agreement.  The term “Stock” shall also include all interests in Stock of the Company now owned or hereafter acquired in the future by any Beneficiary’s spouse, if any, as marital property, deferred marital property or quasi-marital property, and with respect to such Stock the parties expressly agree that if the spouse of any Beneficiary shall predecease the Beneficiary, the interest of the deceased spouse in the Stock owned by the Beneficiary shall remain subject to the terms and provisions of this Agreement. All Stock shall remain subject to this Agreement regardless of the termination of the marital relationship of a Beneficiary and the Beneficiary’s spouse for any reason.

 

1.08                            Trustees .  The term “Trustees”, as used in this Agreement, shall include the Trustees and, upon their appointment and/or election pursuant to Article VI, each successor Trustee.

 

1.09                            Depositor .   The term “Depositor”, as used in this Agreement, shall include all of the parties to this Agreement who transferred Stock to the Initial Trustee under the September 1 Voting Trust Agreement or the April 29 Voting Trust Agreement or to the Trustees under the April 29 Voting Trust Agreement and any person who or entity which becomes a party to this

 

4



 

Agreement by transferring shares of Stock or other securities of the Company to the Trustees pursuant to Section 1.04.

 

1.10                            Restricted Stock .  The term “Restricted Stock”, as used in this Agreement, shall include all Stock which is subject to the restrictions set forth in the Harry V. Quadracci Restricted Stock Plan dated July 28, 1980, as amended from time to time.

 

1.11                            Public Offering .  The term “Public Offering” means a sale of securities which is subject to registration under the Securities Act of 1933, the registration of a class of securities under the Securities Exchange Act of 1934, or the registration of securities under any foreign act with similar intent and impact.

 

ARTICLE II

DIVIDENDS, DISTRIBUTIONS

AND LIQUIDATION

 

2.01                            Dividends and Distributions .  In the event the Trustees receive any dividend or other distribution of cash or property (other than common stock or other securities of the Company having any voting rights, including any securities which may become voting securities upon the happening of a contingency) upon or by reason of the Stock held by the Trustees, the Trustees shall immediately make a pro rata distribution of such dividend or distribution to the Beneficiaries as their respective interests appeared as of the date and at the time of such dividend or other distribution.  In the event of a dividend or distribution of common stock or other securities of the Company having any voting rights, including any securities which may become voting securities upon the happening of a contingency, such securities shall be added to the Stock held by the Trustees and Trust Certificates evidencing such Stock shall be distributed to the Beneficiaries as appropriate.  Prior to making any distribution of cash, stock or property to the Beneficiaries under this Section 2.01, the Trustees may retain therefrom a sufficient part, either

 

5



 

in cash, stock or property, to meet the expenses and obligations of the Trust, including any taxes assessed on or by reason of any such distribution or arising out of or resulting from this Agreement.

 

2.02                            Issuance of Stock .  In the event the Company issues additional common stock or securities of any class, other than as a stock dividend or stock split-up, the Trustees shall immediately give written notice to each Beneficiary in order that each Beneficiary may have ample time to decide whether to request the Trustees to exercise any preemptive or other right to purchase such additional stock or securities on such Beneficiary’s behalf.  Any Beneficiary desiring to cause the Trustees to exercise any such preemptive right or any other right to purchase such additional stock or securities shall file written notice with the Trustees accompanied by a certified check payable to the Company, in an amount equal to the full purchase price of the additional stock or securities which such Beneficiary desires to purchase.  The Trustees shall thereupon purchase such additional stock or securities in the name of the Trust on behalf of such Beneficiary in such amounts as they are able to and shall retain the additional stock or securities in the Trust and deliver an additional Trust Certificate to the Beneficiary evidencing such additional Stock.

 

2.03                            Dissolution .  In the event of the dissolution or total or partial liquidation of the Company in which the Trustees receive cash, securities, rights or property, the Trustees shall distribute the same among the Beneficiaries in proportion to their interests as represented by their Trust Certificates.  Upon such distribution, all further obligations or liabilities of the Trustees with respect to such cash, securities, rights or properties so distributed shall cease.

 

6



 

ARTICLE III

POWERS OF TRUSTEES

 

3.01                            Trustees As Owners of Stock .  The Trustees are hereby vested as owners of the Stock (without limitation except as otherwise expressly provided in this Agreement) with all of the rights, powers and privileges of every kind and character of an owner, including, without limiting the generality of the foregoing (a) the right to vote the same, either in person or by proxy, for every purpose, (b) the right to become parties to or prosecute or intervene in any suits or other legal or administrative proceedings affecting the Stock, the Company, or the powers, duties or obligations of the Trustees, (c) the right to transfer all or any part of the Stock into their names as Trustees or into the name or names of a nominee or nominees, (d) the right to enter into one or more agreements by and among the shareholders of the Company, whether or not such shareholders are Beneficiaries, and (e) the right to exercise any and all rights and preferences of the Stock, whether set forth in the Company’s Articles of Incorporation, as amended from time to time, or otherwise.

 

3.02                            Voting of Stock .  In voting the Stock, the Trustees shall exercise their judgment to select suitable directors of the Company, to the end that the affairs of the Company shall be properly managed, and to vote on such other matters which may come before them at any shareholders’ meeting.

 

The Trustees shall not have the power to vote the Stock in favor of the following corporate actions unless the written consent of the Beneficiaries holding Trust Certificates representing at least two thirds of the Stock then held by the Trustees is first obtained:

 

(i)                                      merger or consolidation of the Company;

 

(ii)                                   sale or exchange of all, or substantially all, of the voting securities of the Company in one or a series of related transactions;

 

7



 

(iii)                                sale, lease or exchange of all, or substantially all, of the property and assets of the Company;

 

(iv)                               total or partial liquidation of the Company;

 

(v)                                  dissolution of the Company;

 

(vi)                               any act which is likely to lead to a Public Offering of a class of the Company’s stock that is not already traded on a national securities market or exchange;

 

(vii)                            any issuance of any securities of the Company if upon consummation of such issuance the Stock held by the Trustees will not have the power to elect a majority of the Board of Directors of the Company; or

 

(viii)                         any amendment to the articles of incorporation of the Company which would have the effect of diminishing the rights reserved to the Beneficiaries in this Section 3.02.

 

3.03                            Public Offerings .  In addition to a vote of Beneficiaries as required by Section 3.02, the Trustees may not vote the Stock for the approval of any act likely to lead to a Public Offering of a class of the Company’s stock that is not already traded on a national securities market or exchange unless at least three fourths of the Trustees then in office agree on such approval.

 

3.04                            Sale of Stock by Trustee .

 

(a)                                   Merger; Liquidation .  Shares of Stock sold, transferred or exchanged in a merger, consolidation, sale or exchange of all, or substantially all, of the securities of the Company or upon a liquidation of the Company shall be selected by the Trustees pro rata from the shares of

 

8



 

Stock held for all Beneficiaries, as their respective interests are evidenced by the Trust Certificates held by them, and the proceeds shall be distributed to the Beneficiaries in the same manner; provided, however, that if such a sale, transfer or exchange of Stock shall be made in exchange for other stock or securities of any corporation, the Trustees, in their discretion, may retain, if such retention is consistent with the purposes of this Agreement, such stock or securities, and thereafter the rights and obligations of the Trustees and the Beneficiaries shall, for all purposes, be treated as applying to the stock or securities so received in exchange.  In the event of any such sale, transfer or exchange, the Trustees may require the Beneficiaries to surrender the Trust Certificates held by them in exchange for new Trust Certificates modified to describe the interest then represented by such Trust Certificates.

 

(b)                                  Assessment of Expenses .  The Trustees may, upon unanimous vote, sell any or all of the Stock held for a Beneficiary to obtain funds to satisfy any assessment for expenses made by the Trustee against such Beneficiary (the “Assessed Beneficiary”) under Section 3.06.  In the event the Trustees wish to sell any Stock in order to obtain such funds, they shall first offer such Stock for sale to all of the Beneficiaries, other than the Assessed Beneficiary, at a price equal to the Purchase Price (as defined in Section 5.10(a)).  The right of purchase of each such Beneficiary in such case shall be pro rata based on the shares of Stock represented by the Trust Certificates held by such Beneficiary, but if any such Beneficiary fails to exercise such right, either in whole or in part, within thirty (30) days of the date such written offer was sent to him or her, the other Beneficiaries, other than the Assessed Beneficiary, may purchase the Stock not so purchased ratably based upon the shares of Stock represented by their Trust Certificates.  If the Beneficiaries fail to purchase all of the offered Stock within sixty (60) days after written notice of the offer is sent to them by the Trustees, the Trustees may then sell such Stock, free of the

 

9



 

restrictions imposed by this Agreement, at a price that is deemed fair and adequate by the Trustees and upon such other terms and conditions as the Trustees, in their sole discretion, may decide.  Nothing in this Section 3.04 shall be deemed to require the Trustees to sell any Stock unless, in their sole discretion, the Trustees deems such sale appropriate.

 

3.05                            Conflict of Interest .  Any Trustee may hold common stock or other securities of the Company or Trust Certificates, and each Trustee, individually or as a Trustee, may vote for himself or herself as a director or as a Trustee, and any such Trustee, or any firm of which he or she is a member, or a corporation in which he or she is a stockholder or officer or in which he or she may be otherwise interested, may contract with the Company or the Trustees or be or become pecuniarily interested in any matter or transaction to which the Company or the Trustees may be a party, as fully as though such person were not a Trustee.  Without limiting the foregoing, a Trustee may vote for himself or herself as an officer and/or employee of the Company and may participate in fixing the amount of his or her compensation in such position.

 

3.06                            Expenses and Disbursements .  The Trustees may incur and pay all expenses and disbursements which the Trustees may deem necessary or proper in exercising the powers and authority given to or vested in the Trustees by this Agreement.  The Stock held by the Trustees under this Agreement and all other assets and property received or held by the Trustees are charged with the payment of such expenses and disbursements.  The Trustees shall be entitled to reimbursement for any expenses incurred by them in or by reason of the Trust.  The obligations and agreements of the Trustees shall not be binding upon the Trustees personally, but shall bind solely the Stock and other assets and property in the hands of the Trustees.  The Beneficiaries shall be personally liable for the expenses or other obligations of the Trustees in the absence of sufficient liquid assets with which to pay such expenses, and the Trustees may assess the

 

10



 

Beneficiaries for such expenses ratably based upon the shares of Stock represented by the Trust Certificates held by the Beneficiaries.  The Trustees may, in the event of failure or refusal of any Beneficiary to make payment within ten (10) days after written notice by the Trustees to such Beneficiary of any amount owing by such Beneficiary under or by reason of this Agreement, sell or otherwise dispose of the Stock, property or other assets representing the interest of such Beneficiary under this Agreement in accordance with Section 3.04(b).  In the case of any such sale, the Trustees may sell or dispose of such Stock, property or other assets absolutely, releasing the same from the terms and provisions of this Agreement, or may sell the same upon understanding or agreement that the purchaser shall receive Trust Certificates evidencing his interest in such Stock or other assets or property.  In the case of any such sale of the interest of a Beneficiary, the Trustees shall mark their Trust Certificate records accordingly, the Trust Certificates held by such Beneficiary representing such Stock, assets or other property sold as aforesaid shall cease to represent any interest or have any rights under this Agreement and the Trustees shall refuse to recognize or transfer the same.  In any such case, the Beneficiary shall surrender such Trust Certificates to the Trustees and, upon his failure or refusal to make such surrender, the Trustees, in their discretion, may take any action or proceeding required or deemed necessary to compel such surrender.

 

3.07                            Experts .  The Trustees may engage such counsel, accountants, or other professional or expert assistance as the Trustees may deem necessary or helpful in the administration and maintenance of this Trust, which professionals or experts may be the same as those engaged by the Company.  The Trustees shall pay all fees and expenses in connection therewith out of Trust assets, provided that any such fees or expenses incurred under this Trust may be payable by the Company if the Company and Trustees so agree.  The Trustees may

 

11



 

prosecute, defend, or otherwise participate in any legal proceeding involving this Trust in such manner as the Trustees deem to be in the best interest of the Trust, and expenses therefor shall be payable out of Trust assets.

 

3.08                            Financial Reports .  The Trustees shall keep proper records of their receipts and disbursements and, from time to time prior to termination, may issue and mail financial reports to the Beneficiaries.  Such financial reports shall include information of such nature and scope as the Trustees deem relevant and appropriate under the circumstances.  Unless legal proceedings questioning the adequacy and accuracy of such financial reports shall be fully instituted within ninety (90) days after the mailing of any such report, such report as against all parties shall be conclusively presumed to be in all respects correct.  The books and records of the Trustees containing the accounts and the names of Beneficiaries shall at all reasonable times be open to inspection by the Beneficiaries for any proper purpose.

 

3.09                            Secretary .  The Trustees may appoint a Secretary and may appoint an Assistant Secretary (the “Secretary” and “Assistant Secretary”), either of whom may, but need not be, a Trustee or an officer or employee of the Company.  The Trustees may remove and replace at any time the person so appointed as Secretary or Assistant Secretary, and may pay reasonable compensation to the Secretary and/or the Assistant Secretary.  It shall be the duty of the Secretary to keep the minutes of meetings of the Trustees and to maintain a record of transactions and to perform such other duties as provided in this Agreement or as may be required by the Trustees.  The Assistant Secretary shall act in place of the Secretary in taking any action or performing any duties required to be taken or performed by the Secretary whenever the Secretary shall be incapacitated, absent or for any other reason unable to act.

 

12



 

ARTICLE IV

METHOD OF ACTION BY THE TRUSTEES

 

4.01                            Actions by Trustees .  Except when a specific provision of this Agreement requires otherwise, all actions by the Trustees shall be taken by a majority vote of the Trustees; provided, however, that a unanimous vote of the Trustees shall be required if there shall be only two Trustees serving.  A Trustee may vote in person or by proxy.

 

4.02                            Written Consent .  An action of the Trustees may be taken by unanimous written consent without the necessity of a meeting.

 

4.03                            Notice .  Meetings of the Trustees may be called by any Trustee by depositing notice, properly addressed to the other Trustees, if any, of the time and place of the meeting in the mails twenty (20) days prior to the date of the meeting.

 

ARTICLE V

TRANSFER OF TRUST CERTIFICATES

 

5.01                            Transfer of Certificates .  The Trust Certificates shall be transferable only on the books of the Trustees upon compliance with this Article V, and the Trustees may at all times and for all purposes treat the registered owner of each outstanding Trust Certificate as the sole owner.  Any Transfer of all or part of a Trust Certificate shall be effected by the execution of an assignment in substantially the form of Exhibit B hereto.  Upon the Transfer of a Trust Certificate on the books of the Trustees, the transferee shall be substituted for the prior registered holder and shall have all of the rights and be subject to all the liabilities of a Beneficiary.  Subject to such reasonable regulations as the Trustees may make as aforesaid, a Beneficiary may surrender Trust Certificates held by him or her to the Trustees for exchange for a greater or lesser number of Trust Certificates representing the same aggregate number of shares of Stock as were represented by the Trust Certificates so surrendered, but no Trust Certificate representing a

 

13



 

fraction of a share of Stock shall be issued without the approval of the Trustees.  As used in this Agreement, the term “Transfer” shall mean any sale, assignment, pledge, encumbrance, attachment, gift, exchange or other disposition or transfer of any manner, either voluntarily or by operation of law.  Any Transfer which is in violation of the provisions of this Article V shall be null and void and of no legal effect.

 

5.02                            Permitted Transfers .  Subject to the other provisions of this Agreement, (a) an individual Beneficiary may Transfer, for consideration or by gift, all or any part of such Beneficiary’s Trust Certificates during such Beneficiary’s lifetime to a member or members of a group consisting of such Beneficiary’s spouse, such Beneficiary’s issue, the spouses of such Beneficiary’s issue, such Beneficiary’s siblings, the issue of such Beneficiary’s siblings, or any trust or custodian account created for the primary benefit of any one or more of the foregoing; (b) a Beneficiary which is a trust or custodian under the Uniform Transfers to Minors Act may Transfer its Trust Certificates to a beneficiary of said trust or account or to another trust or account for the benefit of the same beneficiaries pursuant to the terms of such trust or the law governing such account; (c) a Beneficiary who acquired Trust Certificates solely as a result of a Permitted Transfer under this Section 5.02 or a Permitted Testamentary Transfer under Section 5.07, may Transfer all or any part of the Beneficiary’s Trust Certificates under this Section 5.02 only to the Beneficiary from whom, directly or indirectly, such Beneficiary acquired said Trust Certificates or persons to whom such transferring Beneficiary is permitted (or would be permitted if such Beneficiary owned Trust Certificates) to Transfer Trust Certificates pursuant to this Section 5.02; and (d) any Beneficiary may Transfer all or any part of such Beneficiary’s Trust Certificates to another Beneficiary (all of such Transfers are referred to in this Section 5.02 as “Permitted Transfers”).  The transferring Beneficiary shall give the Trustees thirty (30) days

 

14



 

prior written notice of any Permitted Transfer stating the terms of such Permitted Transfer, including the identity of the transferees.  All persons, trusts or accounts who acquire Trust Certificates solely as a result of a Permitted Transfer or as a result of a Permitted Testamentary Transfer under Section 5.07 are referred to as the “Permitted Transferees” of the Beneficiary from whom, directly or indirectly through transfers under this Section 5.02, such person, trust or account acquired Trust Certificates.  The term “issue”, as used in this Agreement to describe a descendant or descendants, shall include any lawfully adopted issue who is a minor at the time of adoption, and issue of any lawfully adopted issue, as well as issue by blood.  The term “sibling”, as used in this Agreement, shall include a sibling by the half as well as by the whole blood, but shall be limited to persons related to the designated Beneficiary by blood or adoption.

 

5.03                            V oluntary Transfer During Life (other than by Permitted Transfer, Pledge or Gift) .

 

(a)                                   Offer by Beneficiary .  If a Beneficiary should decide to effect a voluntary Transfer for consideration of all or part of any of such Beneficiary’s Trust Certificates during such Beneficiary’s lifetime (other than by a Permitted Transfer, by pledge, or by gift, which Transfers shall be governed by Sections 5.02, 5.04, and 5.05 respectively), such Beneficiary (the “Transferring Beneficiary”) shall first give written notice to the Trustees of such intent to Transfer all or part of such Trust Certificates.  Such notice must be provided to the Trustees no less than one hundred eighty (180) days prior to the date of the proposed Transfer and must specify (1) the number and/or portion of the Trust Certificates to be transferred (the “Offered Trust Certificates”), (2) the date of the proposed Transfer, (3) the identity of the proposed transferee, (4) the consideration, if any, to be received upon such Transfer and the terms of payment (such price and terms of payment referred to collectively as the “Offering Price”), (5) a

 

15



 

description of the nature of the proposed Transfer and (6) a copy of any written documents embodying an offer to purchase the Offered Trust Certificates.  Once the Trustees have received such notice which meets each of the requirements set forth in the foregoing sentence, the Trustees shall promptly notify in writing all Qualified Beneficiaries (as defined in Section 5.09(g)) of such notice.  Such written notice by the Transferring Beneficiary shall be accompanied by the Offered Trust Certificates, together with transfer instruments executed in blank sufficient to effect the transfer of all of the Offered Trust Certificates, if purchased pursuant to this Section 5.03, which shall be held by the Trustees for delivery for the account of the Transferring Beneficiary if a sale is effected.

 

(b)                                  Purchase Options .  The written notice by the Transferring Beneficiary under Section 5.03(a) shall constitute an offer to sell, and the Qualified Beneficiaries shall have the option to purchase, the Offered Trust Certificates in the sequence and in the manner specified in Section 5.09, at a purchase price equal to the lesser of (i) the Offering Price, which shall be payable on the terms provided by the Offering Price, or (ii) the Purchase Price determined in accordance with Section 5.10, which shall be payable on the terms provided under Section 5.11.

 

(c)                                   Lapse .  Upon the lapse in whole or in part of the options described in this Section 5.03, after complying with the requirements of Section 5.12, the Transferring Beneficiary shall be free to offer or transfer any part or all of the Offered Trust Certificates not purchased by the Qualified Beneficiaries to the transferee identified in the notice required by Section 5.03(a) at a price not less than, nor terms of payment more lenient than, the Offering Price for a period of thirty (30) days thereafter without restriction, but after such period the restrictions of this Agreement shall again apply.

 

16



 

(d)                                  Non-Cash Consideration as Part of Offering Price .  In the event that the Offering Price involves consideration other than cash or one or more promissory notes (“Other Consideration”), then the value of such Other Consideration shall be payable in cash by the Qualified Beneficiaries exercising options as part of the Offering Price.  The value of such Other Consideration shall be determined by unanimous agreement of all Qualified Beneficiaries and the Transferring Beneficiary, or if no such unanimous agreement can be reached, based on an appraisal provided by such bank, trust company, appraisal firm or investment banking firm as shall be promptly selected by the Qualified Beneficiaries desiring to exercise the options to purchase and the Transferring Beneficiary.  The Transferring Beneficiary shall supply all information necessary to allow the appraiser to perform the appraisal and the appraiser shall be instructed to complete the required appraisal report within thirty (30) days.  All costs of the appraisal shall be shared equally by the Transferring Beneficiary, on the one hand, and the Qualified Beneficiaries desiring to exercise the options to purchase (who shall share their half of any appraisal fees pro rata in proportion to the amounts to be paid by such Qualified Beneficiaries for Offered Trust Certificates), on the other hand.  The value of the Other Consideration determined by the appraiser shall be final and binding upon all parties to the particular transaction, free of challenge or review in any court; provided, however, that the Transferring Beneficiary shall have five (5) days after receipt of the appraisal to withdraw the offer to sell the Offered Trust Certificates to the Company and Qualified Beneficiaries and the third-party purchaser identified in the notice required by Section 5.03(a); provided further, that each of the electing Qualified Beneficiaries shall have five (5) days after receipt of the appraisal to withdraw the exercise of any purchase option.  In the event that such appraisal shall be

 

17



 

necessary, the options of the Qualified Beneficiaries arising under this Section 5.03 shall be extended for an additional period sufficient to complete such appraisal.

 

5.04                            Transfer By Pledge or Grant of Security Interest A Beneficiary may not pledge or grant a security interest in any of such Beneficiary’s Trust Certificates unless such pledge or grant is first approved by the Trustees in writing, which approval may be withheld by the Trustees for any or no reason.  If the Trustees approve any such pledge or grant, then (a) the Trust Certificates subject to such pledge or security interest (the “Pledged Trust Certificates”) shall remain subject to the terms and provisions of the Agreement, (b) the pledgee or secured party shall be subject to all of the terms and provisions of this Agreement as though such pledgee or secured party was a party hereto, (c) such Beneficiary shall provide the Trustees a copy of any written documents relating to such pledge or security interest and (d) the pledging Beneficiary shall continue to be subject to all of the terms and provisions of this Agreement with respect to such Beneficiary’s interest in such Pledged Trust Certificates.  The approval required in this Section 5.04 shall be prospective only and shall not invalidate any pledge in effect as of the date of this Agreement, but shall apply to any renewal.

 

5.05                            Voluntary Transfer by Gift .

 

(a)                                   Notice to Trustees .  If a Beneficiary (the “Donor Beneficiary”) should decide to effect a voluntary Transfer by way of gift, other than by a Permitted Transfer under Section 5.02, to any person of all or part of any Trust Certificates during the Donor Beneficiary’s lifetime, the Donor Beneficiary shall first give thirty (30) days written notice to the Trustees of such intent to Transfer all or part of such Trust Certificates, which notice shall specify the proposed donee or donees and the number and/or portion of the Trust Certificates (the “Gift Trust Certificates”) to be transferred to each donee.  The Trustees shall promptly notify in writing all Beneficiaries of

 

18



 

such notice.  Such written notice by the Donor Beneficiary shall be accompanied by the Gift Trust Certificates, together with transfer instruments executed in blank sufficient to effect the transfer of all of the Gift Trust Certificates, if purchased pursuant to this Section 5.05, which shall be held by the Trustees in trust for delivery to the purchasers of the Gift Trust Certificates, or the designated donees, as the case may be.

 

(b)                                  Purchase Options .  The written notice by the Donor Beneficiary pursuant to Section 5.05(a) shall constitute an offer to sell, and the Qualified Beneficiaries shall have the option to purchase, the Gift Trust Certificates in the sequence and in the manner specified in Section 5.09, at a price equal to the Purchase Price determined under Section 5.10 and on payment terms as provided under Section 5.11.

 

(c)                                   Lapse .  Upon lapse in whole or in part of the options described in this Section 5.05, after complying with the requirements of Section 5.12 the Donor Beneficiary shall be free to Transfer by gift any part or all of such Gift Trust Certificates not purchased by the Qualified Beneficiaries to the donees designated in the notice to the Trustees under Section 5.05(a) for a period of thirty (30) days thereafter without restriction, but after such period the restrictions of this Agreement shall again apply.

 

5.06                            Involuntary Transfer .

 

(a)                                   Notice of Involuntary Transfer .  Whenever a Beneficiary (the “Involuntary Transfer Beneficiary”) has any notice or knowledge of (i) any attempted, impending or consummated involuntary Transfer of, or (ii) any foreclosure or any other enforcement action with respect to any lien, security interest, charge or other encumbrance on, whether by operation of law or otherwise, all or any part of the Trust Certificates of the Involuntary Transfer Beneficiary (collectively referred to as an “Involuntary Transfer”), the Involuntary Transfer

 

19



 

Beneficiary shall give immediate written notice to the Trustees.  Such notice shall specify, to the extent known by such Involuntary Transfer Beneficiary:  (1) the number and/or portion of the Trust Certificates subject to the Involuntary Transfer (the “Involuntary Transfer Trust Certificates”), (2) the date of the Involuntary Transfer, (3) the identity of the proposed purchaser or transferee (the “Involuntary Purchaser”), (4) a description of the nature of the Involuntary Transfer, and (5) a copy of any written documents relating to the Involuntary Transfer.  The Trustees shall promptly notify in writing all Beneficiaries of such notice.  The written notice by the Involuntary Transfer Beneficiary shall be accompanied by the Involuntary Transfer Trust Certificates, together with transfer instruments executed by the Involuntary Transfer Beneficiary and, if such Trust Certificates are Pledged Trust Certificates, by the pledgee or secured party, in blank sufficient to effect the transfer of all of the Involuntary Transfer Trust Certificates, if purchased pursuant to this Section 5.06, which shall be held by the Trustees in trust for delivery to the purchasers of the Involuntary Transfer Trust Certificates if a sale is effected.  Whenever the Trustees or any other Beneficiary has any notice or knowledge of any such attempted, impending or consummated Involuntary Transfer, it may give written notice to the Involuntary Transfer Beneficiary.  In the case of any Involuntary Transfer, the Involuntary Transfer Beneficiary agrees forthwith to disclose to the Trustees all pertinent information in his, her or its possession relating thereto.

 

(b)                                  Options to Purchase .  Upon receipt of a written notice by the Trustees under Section 5.06(a) of an Involuntary Transfer, or, if no such notice is provided, at the time the Trustees become aware that a Trust Certificate has been subjected to any Involuntary Transfer, the Qualified Beneficiaries shall, in the sequence and in the manner specified in Section 5.09, have the option to purchase the Involuntary Transfer Trust Certificates, whether from the

 

20



 

Involuntary Transfer Beneficiary or the Involuntary Purchaser or any other transferee who or which may have ownership of such Involuntary Transfer Certificates, at a price equal to the Purchase Price determined under Section 5.10 and on payment terms as provided under Section 5.11, and the Involuntary Transfer Trust Certificates so purchased shall in every case be free and clear of such Involuntary Transfer.

 

(c)                                   Lapse .  Upon the lapse in whole or in part of the options described in this Section 5.06, after complying with the requirements of Section 5.12 any part or all of the Involuntary Transfer Trust Certificates not purchased pursuant to the foregoing provisions of this Section 5.06 may be transferred to the Involuntary Purchaser for a period of thirty (30) days thereafter without restriction, but after such period the restrictions of this Agreement shall again apply.

 

5.07                            Death of a Beneficiary .

 

(a)                                   Permitted Testamentary Transfer .  In the event of the death of a Beneficiary (“Deceased Beneficiary”), the personal representative of the estate of the Deceased Beneficiary or another fiduciary appointed under a revocable trust of the Deceased Beneficiary (the “Deceased Beneficiary Trust Fiduciary”) may Transfer all or any part of the Trust Certificates of the Deceased Beneficiary pursuant to the terms of the Deceased Beneficiary’s Last Will and Testament and/or other estate planning documents or pursuant to the laws of intestacy (if applicable) of the state of which the Beneficiary shall have been a resident on the date of his or her death to (i) anyone to whom the Deceased Beneficiary could have made a Permitted Transfer during such Deceased Beneficiary’s life under Section 5.02 of this Agreement, (ii) the Windhover Foundation, Inc. or (iii) the Harry V. Quadracci Charitable Lead Annuity Trust dated March 17, 1998, created by Harry V. Quadracci as Donor and Trustee ( a “Permitted Testamentary Donee”); provided, however, that the Trust Certificates so transferred shall

 

21



 

continue to be subject to all of the terms and conditions of this Agreement, including Section 5.09(f) (each such Transfer, a “Permitted Testamentary Transfer”).

 

(b)                                  Notice to Trustees .  Prior to the Trust Certificates of the Deceased Beneficiary passing pursuant to the terms of the Deceased Beneficiary’s Last Will and Testament and/or other estate planning documents or pursuant to the laws of intestacy (if applicable) of the state of which the Deceased Beneficiary shall have been a resident on the date of his or her death, the personal representative of the estate of the Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary shall first give thirty (30) days written notice to the Trustees specifying the proposed donee or donees and the number and/or portion of the Trust Certificates (the “Deceased Beneficiary’s Trust Certificates”) to be transferred to each donee.  If any such donees are not Permitted Testamentary Donees of such Deceased Beneficiary, (i) the Trustees shall promptly notify in writing all Beneficiaries of such notice and (ii) such written notice by the personal representative of the estate of the Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary shall be accompanied by the Deceased Beneficiary’s Trust Certificates, together with transfer instruments executed in blank sufficient to effect the transfer of all of the Deceased Beneficiary’s Trust Certificates, if purchased pursuant to this Section 5.07, which shall be held by the Trustees in trust for delivery to the purchasers of the Deceased Beneficiary’s Trust Certificates, or the designated donees, as the case may be.  This Section 5.07(b) shall not apply with respect to transfers to the Windhover Foundation, Inc. or the Harry V. Quadracci Charitable Lead Annuity Trust dated March 17, 1998, created by Harry V. Quadracci as Donor and Trustee.

 

(c)                                   Purchase Options .  If any of the donees to whom the Deceased Beneficiary proposes to Transfer the Deceased Beneficiary’s Trust Certificates are not Permitted Testamentary Donees of the Deceased Beneficiary, the written notice by the personal

 

22



 

representative of the estate of the Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary shall constitute an offer to sell, and the Qualified Beneficiaries shall have the option to purchase, the Deceased Beneficiary’s Trust Certificates, in the sequence and in the manner specified in Section 5.09, at a price equal to the Purchase Price determined under Section 5.10 and on payment terms as provided under Section 5.11.

 

(d)                                  Lapse .  Upon lapse in whole or in part of the options described in this Section 5.07, after complying with the requirements of Section 5.12 the personal representative of the Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary shall be free to Transfer any part or all of such Deceased Beneficiary’s Trust Certificates not purchased by the Qualified Beneficiaries to the donees designated in the notice to the Trustees under Section 5.07(a).

 

5.08                            Termination of Marital Relationship .

 

(a)                                   Beneficiary-Spouse Option .  If the marital relationship of a Beneficiary and such Beneficiary’s spouse (the “Spouse”) is terminated by the death of the Spouse or by divorce and if the Beneficiary does not receive, or succeed to, all interests of the Spouse in the Trust Certificates acquired through marital property or community property laws or otherwise, whether by testamentary disposition, operation of law, property settlement agreement, court order or otherwise, then such Beneficiary will have the option to purchase any part or all of the Spouse’s interest in the Trust Certificates and the Spouse or the personal representative of the Spouse’s estate, as the case may be, shall be obligated to sell such interest in the Trust Certificates at a price equal to the Purchase Price determined under Section 5.10 and on payment terms as provided under Section 5.11.

 

(b)                                  Exercise of Option .  If such Beneficiary elects to purchase the Spouse’s interest in the Trust Certificates in whole or in part, he shall signify such election and that portion of the

 

23



 

Spouse’s interest in the Trust Certificates to be purchased by written notice delivered to the Spouse or the personal representative of the Spouse’s estate, and to the Trustees, within sixty (60) days after the date of the Spouse’s death or date of divorce.

 

(c)                                   Options to Purchase .  If such Beneficiary fails to exercise such option in full within such sixty (60) day period (or if such option shall be held to be invalid or unenforceable), the Qualified Beneficiaries shall, in the sequence and manner specified in Section 5.09, have the option to purchase, at a price equal to the Purchase Price determined under Section 5.10 and on payment terms as provided under Section 5.11, that portion of the Spouse’s interest in the Trust Certificates not purchased by such Beneficiary pursuant to the option described in Section 5.08(a); provided, however, that written notice of the exercise of an option shall be delivered within the applicable option period to the Spouse, or to the personal representative of the Spouse’s estate, and to the Trustees.

 

(d)                                  Closing .  At the time of closing, the Trust Certificates so purchased (if any such certificates shall then be registered in the name of the Spouse or the personal representative of the Spouse’s estate) shall be transferred of record to the purchaser.  The purchaser shall pay to the Spouse or the personal representative of the Spouse’s estate the Purchase Price in the manner provided in Section 5.11.

 

(e)                                   Lapse .  Upon lapse in whole or in part of the options described in this Section 5.08, the Spouse or the personal representative of the Spouse’s estate shall continue to be bound by the provisions of this Agreement with respect to any interest in any part or all of the Trust Certificates not purchased pursuant to this Section 5.08; provided, however, that the personal representative may Transfer, upon thirty (30) days written notice to the Trustees specifying the terms of such Transfer, including the identity of the proposed transferees, any part or all of such

 

24



 

unpurchased Trust Certificates pursuant to the terms of the Spouse’s Last Will and Testament and/or other estate planning documents or pursuant to the laws of intestacy (if applicable) of the state of which the Spouse shall have been a resident on the date of her death (the transferee and all other persons in the chain of title from the Spouse being referred to in this Section 5.08(e) as “Transferee”); provided further, that all interests in the Trust Certificates so transferred shall continue to be subject to all of the terms and conditions of this Agreement, including Section 5.09(f).  The obligations of a Beneficiary, the personal representative of a Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary to sell or to offer to sell Trust Certificates pursuant to this Agreement shall include an obligation on the part of such Beneficiary’s Spouse, the personal representative of the Spouse’s estate, or the Transferees to sell or to offer to sell the interest in the Trust Certificates owned by such person in the same manner and upon the same terms and conditions.  In the absence of a court order, the Trustees shall have no obligation to cause the Trust Certificates owned by the Spouse, the personal representative of the Spouse’s estate or the Transferees to be registered in such person’s name if such Trust Certificates are at such time registered in the name of a Beneficiary.  No Transferee, as defined in this Section 5.08(e), shall be deemed a Beneficiary entitled to exercise any of the options to purchase Trust Certificates described in this Agreement except with the unanimous written consent of the Beneficiaries.

 

5.09                            Provisions Related to Exercise of Purchase Options .

 

(a)                                   Options by Qualified Beneficiaries .  In the event that any Section of this Agreement provides that certain Beneficiaries shall have the option to acquire the Trust Certificates or any interest in Trust Certificates held by any person (each of whom is referred to

 

25



 

as “Seller” in this Section 5.09) in the sequence and in the manner specified in this Section 5.09, such options shall be exercisable as follows:

 

(i)                                      For a period of thirty (30) days after the Option Commencement Date, as defined in Section 5.09(b), each of the Qualified Beneficiaries shall have an irrevocable option to elect to purchase a portion of the Option Trust Certificates to which such option applies determined by multiplying the total number of shares of Stock evidenced by the Option Trust Certificates by a fraction, the numerator of which is the total number of shares of Stock evidenced by the Trust Certificates held by such Qualified Beneficiary on the Option Commencement Date and the denominator of which is the total number of shares of Stock evidenced by the Trust Certificates held by all of the Qualified Beneficiaries on such date.  “Option Trust Certificates” means the Trust Certificates or an interest in them subject to a purchase option by the Qualified Beneficiaries under this Section 5.09.

 

(ii)                                   If, within the option period provided in Subsection (i), any Qualified Beneficiary fails to exercise such option in full, the Trustees shall, within five (5) days after the expiration of the thirty (30) day option period in such Subsection, notify the other Qualified Beneficiaries of such circumstance.  For a period of fifteen (15) days after such notice, each of such other Qualified Beneficiaries shall have an irrevocable option to purchase any part

 

26



 

or all of such remaining Option Trust Certificates.  If more than one remaining Qualified Beneficiary desires to exercise such option, each shall be entitled to purchase that portion of such remaining Option Trust Certificates equal to the lesser of (x) that portion of the remaining Option Trust Certificates for which such Qualified Beneficiary has exercised his, her or its option under this Subsection (ii) or (y) that portion of the remaining Option Trust Certificates determined by multiplying the total number of shares of Stock evidenced by the Option Trust Certificates not purchased under Subsection (i) by a fraction, the numerator of which is the total number of shares of Stock evidenced by the Trust Certificates held by such Qualified Beneficiary on the date of such notice and the denominator of which is the total number of shares of Stock evidenced by the Trust Certificates held by all of the Qualified Beneficiaries exercising an option under this Subsection (ii) on such date.

 

(iii)                                If, after the option period provided in Subsection (ii), any portion of any Option Trust Certificates remain unpurchased and the options exercised by one or more Qualified Beneficiaries under Subsection (ii) are not satisfied in full, then each Qualified Beneficiary who exercised his, her or its option under such Subsection for not less than the portion of the Option Trust Certificates determined under clause (y) for such Beneficiary shall

 

27



 

have the option to purchase the remaining portion of such Option Trust Certificates in the same manner as provided in Subsection (ii).  This Subsection (iii) shall apply for as many rounds of options as are required to either result in the purchase of all Option Trust Certificates or satisfy in full all options exercised by Qualified Beneficiaries.

 

(b)                                  Option Commencement Date .  For purposes of this Agreement, the term “Option Commencement Date” shall mean the later of (i) the date that the Purchase Price is determined pursuant to Section 5.10, if the Option Trust Certificates may be or are required to be purchased at such Purchase Price, or (ii) the Valuation Date, as defined in clauses (i) through (vii), inclusive, of Section 5.10(b).

 

(c)                                   Exercise of Option .  If a Qualified Beneficiary desires to exercise in whole or in part an option to purchase all or part of any Option Trust Certificates under this Agreement, the Qualified Beneficiary shall signify such exercise and the portion of the Option Trust Certificates to be purchased by such party by delivering written notice to the Trustees (and, in the case of a purchase under Section 5.08, to the Spouse or the personal representative of the Spouse’s estate) within the applicable option period under this Agreement, together with such consideration, if any, required at that time by the Section of this Agreement under which such option arises.  Upon receipt of a notice to exercise an option, the Trustees shall promptly transmit the notice to the Seller.  The Qualified Beneficiaries may exercise their respective purchase options in full or in part with respect to any of the Option Trust Certificates subject to purchase and none of such options shall lapse merely because options are exercised with respect to less than all of such Option Trust Certificates.

 

28



 

(d)                                  Exercise of Options by Agreement .  If all Qualified Beneficiaries holding options to purchase Option Trust Certificates under Section 5.09(a) agree on the manner in which the Option Trust Certificates shall be purchased, they may notify the Trustees of the portion of such Option Trust Certificates to be purchased by each of such purchasing Qualified Beneficiaries.

 

(e)                                   Assignment of Option .  Any Permitted Transferee may assign his, her or its right to exercise any option provided in this Section 5.09 to any Beneficiary from whom, directly or indirectly, such transferee acquired Trust Certificates.

 

(f)                                     Transferees Subject to Agreement .  Trust Certificates transferred under any of the provisions of this Agreement, whether by reason of the lapse of options under this Agreement or otherwise, to any person who is not a party to this Agreement shall continue to be subject to all of the terms and conditions of this Agreement.

 

(g)                                  Qualified Beneficiaries .  For purposes of this Agreement, the term “Qualified Beneficiaries” shall mean all Beneficiaries other than those persons specifically excluded from such term in this Section 5.09(g) or by the applicable Section of this Agreement.  The term “Qualified Beneficiaries” shall not include with respect to a given Transfer a Transferring Beneficiary, a Pledging Beneficiary, a Donor Beneficiary, an Involuntary Transfer Beneficiary, the estate of a Deceased Beneficiary, a Terminating Beneficiary, a Withdrawing Beneficiary, an Affected Beneficiary, or, for purposes of Section 5.08, the Beneficiary who was married to the Spouse.

 

(h)                                  Transferees as Beneficiaries .  Except as provided in Section 5.08(e), any transferee of Trust Certificates who becomes subject to this Agreement by its terms shall be deemed to be a “Beneficiary” for all the purposes of this Agreement.

 

29



 

(i)                                      Lapse of Options .  All unexercised options under this Section 5.09 shall be deemed to lapse at the end of the applicable option periods.

 

5.10                            Purchase Price .

 

(a)                                   Determination of the Purchase Price .

 

(i)                                      Non-public Securities .  Except as set forth in Sections 5.10(a)(ii) and 5.10(a)(iii), the Purchase Price for a Trust Certificate or portion which represents shares of the Company’s common stock (of any class or series) which are not shares of Restricted Stock shall be equal to the per share value of the Company’s Class A Common Stock, $.025 par value (the “Class A Common Stock”), as most recently determined by independent appraisers selected by the Company to appraise the value of the Class A Common Stock, multiplied by the number of shares of Stock (which are not shares of Restricted Stock) represented by such Trust Certificate.  Except as set forth in Section 5.10(a)(ii), the Purchase Price for a Trust Certificate or portion which represents securities of the Company other than shares of the Company’s common stock shall be equal to the per security value of such security, as most recently determined by independent appraisers selected by the Company to appraise the value of such security, multiplied by the number of such securities represented by such Trust Certificate.  If no independent appraisal has been performed for the common stock or other securities of the Company in question within one (1) year

 

30



 

prior to the applicable Valuation Date, then the Purchase Price shall be determined by agreement of the Trustees and the Beneficiary who wishes to Transfer his or her Trust Certificates, failing which the Trustees and such Beneficiary shall submit the matter of the determination of the Purchase Price to an independent appraiser agreed upon by the Trustees and such Beneficiary whose fees shall be shared equally by the Trust and such Beneficiary, and the decision of such appraiser shall be final and binding on all parties.

 

(ii)                                   Public Securities .  Notwithstanding anything contained in Section 5.10(a)(i) and except as set forth in Section 5.10(a)(iii), if on the Valuation Date any type or class of security of the Company, including shares of the Company’s common stock (of any class or series), is traded on a national securities market or exchange, the Purchase Price for a Trust Certificate or portion which represents securities of such class or type shall be (A) either (1) if such class or type of security is traded on a national securities market, the average of the last per security sale price on each of the twenty (20) Trading Days preceding the Valuation Date or (2) if such class or type of security is traded on a national securities exchange, the average of the per security closing price on each of the twenty (20) Trading Days preceding the Valuation Date, in each case multiplied by (B) the number of such securities represented by

 

31



 

such Trust Certificate.  The term “Trading Day” means, with respect to a given security of the Company, a day on which such security is traded on either a national securities market or exchange, as applicable.

 

(iii)                               Restricted Stock .  Notwithstanding anything contained in Sections 5.10(a)(i) and 5.10(a)(ii), the Purchase Price for a Trust Certificate or portion which represents shares of Restricted Stock shall be equal to the per share price at which the Company has a right of first refusal to purchase shares of Restricted Stock pursuant to the Harry V. Quadracci Restricted Stock Plan dated July 28, 1980, as amended from time to time, multiplied by the number of shares of Restricted Stock represented by such Trust Certificate.

 

(b)                                  Valuation Date For the purposes of this Section 5.10, the “Valuation Date” shall be the following date:  (i) in the case of a Transfer to which Section 5.03 applies, the date of receipt by the Trustees of the notice from the Transferring Beneficiary which meets all of the requirements set forth in the second sentence of Section 5.03(a); (ii) in the case of a Transfer to which Section 5.05 applies, the date of receipt by the Trustees of the notice from the Donor Beneficiary; (iii) in the case of a Transfer to which Section 5.06 applies, the date of receipt by the Trustees of notice of the Involuntary Transfer referred to in such Section, or, if no such notice is provided, at the time the Trustees become aware that a Trust Certificate has been subjected to an Involuntary Transfer; (iv) in the case of a Transfer to which Section 5.07 applies, the date the Trustees receive notice from the personal representative of the estate of the Deceased Beneficiary or the Deceased Beneficiary Trust Fiduciary; (v) in the case of a Transfer to which

 

32



 

Section 5.08 applies, the earlier of the end of the sixty (60) day period described in Section 5.08(b) or the date the option granted to the Beneficiary under Section 5.08(a) is held to be invalid or unenforceable; (vi) in the case of a Transfer to which Section 7.01 applies, the date of receipt by the Trustees of the Affected Beneficiary’s request for withdrawal; and (vii) in the case of a Transfer to which Section 7.05 applies, the date of receipt by the Trustees of the Withdrawing Beneficiary’s request for withdrawal.

 

5.11                            Terms of Payment Whenever this Agreement provides that a Beneficiary or the Trust shall, or may elect to, purchase Trust Certificates at the Offering Price, if applicable, or the Purchase Price determined under Section 5.10 and/or upon the terms specified in this Section 5.11, payment of the Offering Price or Purchase Price, as the case may be, shall be made as follows:

 

(a)                                   Payments at Closing .  All payments provided for under this Section 5.11 to be made at closing shall be made in cash or other immediately available funds or by bank cashier’s or certified check.

 

(b)                                  Closin g.  After all option periods under the applicable Sections of this Agreement have expired, and as soon as practicable after the Offering Price and/or the Purchase Price have been determined, the Trustees shall give written notice to all interested parties of the business day and hour more than fifteen (15) days after the date of such notice, but within thirty (30) days after the date of such notice, for the closing of the purchase of Trust Certificates at the principal office of the Trust (“Closing Date”).  At the time of closing, so specified, the Trust Certificates being purchased shall be transferred of record to the purchasers against payment to the seller(s) of the Offering Price or the Purchase Price.

 

33



 

5.12          Exchange of Class B Shares for Class A Shares .

 

(a)            Class A Share Exchange .  Prior to (a) making a transfer of Voting Trust Certificates representing Class B Common Stock under Sections 5.03(c), 5.05(c), 5.06(c) or 5.07(d) or (b) converting Withdrawn Stock that is shares of Class B Common Stock into shares of Class A Common Stock under Section 7.05(a), the transferring Beneficiary or the Withdrawing Beneficiary (each of whom is referred to as an “Exchanging Beneficiary” in this Section 5.12) shall first be required to offer to exchange such Voting Trust Certificates representing Class B Common Stock for Voting Trust Certificates representing Class A Common Stock held by the other Beneficiaries in the sequence and in the manner specified in this Section 5.12, which options shall be exercisable as follows:

 

(i)             For a period of thirty (30) days after the Exchange Commencement Date, as defined in Section 5.12(b), each of the Qualified Beneficiaries shall have an irrevocable option to exchange Voting Trust Certificates representing Class A Common Stock for a portion of the Exchange Trust Certificates to which such option applies determined by multiplying the total number of shares of Class B Common Stock evidenced by the Exchange Trust Certificates by a fraction, the numerator of which is the total number of shares of Class B Common Stock evidenced by the Trust Certificates held by such Qualified Beneficiary on the Exchange Commencement Date and the denominator of which is the total number of shares of Class B Common Stock evidenced by the Trust Certificates held by all of the Qualified Beneficiaries on

 

34



 

such date.  “Exchange Trust Certificates” means the Trust Certificates or an interest in them subject to an exchange option by the Qualified Beneficiaries under this Section 5.12.

 

(ii)            If, within the option period provided in Subsection (i) any Qualified Beneficiary fails to exercise such option in full, the Trustees shall, within five (5) days after the expiration of the thirty (30) day option period in such Subsection, notify the other Qualified Beneficiaries of such circumstance.  For a period of fifteen (15) days after such notice, each of such other Qualified Beneficiaries shall have an irrevocable option to exchange Voting Trust Certificates representing Class A Common Stock for any part or all of such remaining Exchange Trust Certificates.  If more than one remaining Qualified Beneficiary desires to exercise such option, each shall be entitled to exchange Voting Trust Certificates representing Class A Common Stock for that portion of such remaining Exchange Trust Certificates equal to the lesser of (x) that portion of the remaining Exchange Trust Certificates for which such Qualified Beneficiary has exercised his, her or its option under this Section 5.12(b) or (y) that portion of the remaining Exchange Trust Certificates determined by multiplying the total number of shares of Class B Common Stock evidenced by the Exchange Trust Certificates not purchased under Subsection (i) by a fraction, the numerator of which is the total number of shares

 

35



 

of Class B Common Stock evidenced by the Trust Certificates held by such Qualified Beneficiary on the date of such notice and the denominator of which is the total number of shares of Class B Common Stock evidenced by the Trust Certificates held by all of the Qualified Beneficiaries exercising an option under this Subsection (ii) on such date.

 

(iii)           If, after the option period provided in Subsection (ii) any portion of any Exchange Trust Certificates remain unexchanged and the options exercised by one or more Qualified Beneficiaries under such Subsection are not satisfied in full, then each Qualified Beneficiary who exercised his, her or its option under such Subsection for not less than the portion of the Exchange Trust Certificates determined under clause (y) for such Beneficiary shall have the option to exchange Voting Trust Certificates representing Class A Common Stock for the remaining portion of such Exchange Trust Certificates in the same manner as provided in such Subsection.  This Subsection (iii) shall apply for as many rounds of options as are required to either result in the exchange of all Exchange Trust Certificates or satisfy in full all options exercised by Qualified Beneficiaries.

 

(b)            Exchange Commencement Date .  For purposes of this Agreement, the term “Exchange Commencement Date” shall mean the later of (i) the date that the Purchase Price is determined pursuant to Section 5.10, if the Exchange Trust Certificates may be or are required to

 

36



 

be purchased at such Purchase Price, or (ii) the Valuation Date, as defined in clauses (i) through (vii), inclusive, of Section 5.10(b).

 

(c)            Exercise of Option .  If a Qualified Beneficiary desires to exercise in whole or in part an option to exchange all or part of such Qualified Beneficiary’s Voting Trust Certificates representing Class A Common Stock for any Exchange Trust Certificates under this Agreement, the Qualified Beneficiary shall signify such exercise and the portion of the Exchange Trust Certificates to be exchanged with such party by delivering written notice to the Trustees (and, in the case of an exchange under Section 5.08, to the Spouse or the personal representative of the Spouse’s estate) within the applicable option period under this Agreement.  Upon receipt of a notice to exercise an option, the Trustees shall promptly transmit the notice to the Seller.  The Qualified Beneficiaries may exercise their respective exchange options in full or in part with respect to any of the Exchange Trust Certificates and none of such options shall lapse merely because options are exercised with respect to less than all of such Exchange Trust Certificates.

 

(d)            Exercise of Options by Agreement .  If all Qualified Beneficiaries holding options to exchange Exchange Trust Certificates under Section 5.12(a) agree on the manner in which the Exchange Trust Certificates shall be exchanged, they may notify the Trustees of the portion of such Exchange Trust Certificates to be exchanged by each of such exchanging Qualified Beneficiaries.

 

(e)            Assignment of Option .  Any Permitted Transferee may assign his, her or its right to exercise any option provided in this Section 5.12 to any Beneficiary from whom, directly or indirectly, such transferee acquired Trust Certificates.

 

(f)             Transferees Subject to Agreement .  Trust Certificates transferred under any of the provisions of this Agreement, whether by reason of the lapse of options under this Agreement or

 

37



 

otherwise, to any person who is not a party to this Agreement shall continue to be subject to all of the terms and conditions of this Agreement.

 

(g)            Transferees as Beneficiaries .  Except as provided in Section 5.08(e), any transferee of Trust Certificates who becomes subject to this Agreement by its terms shall be deemed to be a “Beneficiary” for all the purposes of this Agreement.

 

(h)            Lapse of Options .  All unexercised options under this Section 5.12 shall be deemed to lapse at the end of the applicable option periods.

 

5.13          Public Company Registration .  If the Trustees, within fifteen (15) days of their receipt of notice of any proposed Transfer of all or part of any Trust Certificate permitted under this Article V, determine that the consummation of such proposed Transfer is likely to result in a Public Offering of a class of the Company’s stock that is not already traded on a national securities market or exchange; then such proposed Transfer shall constitute an offer to sell all or such part of such Trust Certificate to the Trust at the lesser of the Offering Price, if applicable, or the Purchase Price determined under Section 5.10 and on payment terms as provided in Section 5.11 (the “Offer to Sell”).  The Trust shall signify its acceptance of the Offer to Sell by written notice (the “Acceptance Notice”) to the Beneficiary proposing such Transfer within fifteen (15) days after receipt of the Offer to Sell.  The Trust’s right to purchase all or part of such Trust Certificate pursuant to the Offer to Sell shall have priority over any other purchase right or option set forth in this Agreement.  For a period of ten (10) days following receipt of the Acceptance Notice, such Beneficiary may elect to withdraw such Trust Certificate from both the Offer to Sell and the proposed Transfer by written notice to that effect to the Trustees.  The Trustees may assign their rights under this Section 5.13 to the Company if they deem it prudent in effectuating the purpose of this Section 5.13.

 

38



 

5.14          Expenses .  Except as set forth in Section 5.10(a), all extraordinary expenses incurred by the Trustees under this Article V shall be the responsibility of the Beneficiary proposing or required to make a Transfer.

 

ARTICLE VI

ELECTION AND REMOVAL OF TRUSTEES

 

6.01          Trustee .  The Trustees shall be Betty E. Quadracci, J. Joel Quadracci, Elizabeth M. Quadracci-Harned and David A. Blais, each of whom who shall hold office until he or she resigns, dies, is removed or becomes incapacitated.

 

6.02          Successor Trustees There shall be four (4) Trustees at all times.  Upon the resignation, death or incapacity of one of the Trustees listed in Section 6.01, Kathryn Quadracci Flores shall be automatically appointed as successor Trustee.  In the event that there are fewer than four (4) Trustees, and Kathryn Quadracci Flores is a trustee, has declined to be a trustee, or has ceased to be a trustee, the remaining Trustees shall unanimously appoint a sufficient number of Trustees so that there shall be four (4) Trustees.  In the event that there are no Trustees, four (4) successor Trustees shall be appointed by the vote of the Beneficiaries holding Trust Certificates representing at least fifty percent (50%) of the Stock then held hereunder.

 

6.03          Removal .  Any Trustee may be removed by unanimous vote of the other Trustees.

 

6.04          Eligibility .  In order to be eligible for election to and continuation as a Trustee, an individual need not be a director of the Company or a Beneficiary.  No person shall be eligible to serve, or shall serve, as Trustee who directly or indirectly owns, manages, operates or otherwise engages in (whether as proprietor, partner, stockholder, member, director, officer, employee, consultant, agent or otherwise) a business competitive with the business then being conducted by, or planned to be conducted by, the Company or any subsidiary or affiliate; except that such person shall be permitted to own not more than 2% of the outstanding shares of any business

 

39



 

whose shares are listed for trading on a securities exchange registered with the Securities and Exchange Commission or the automated quotation system of a registered securities association.

 

6.05          Incapacitated .  For purposes of this Article VI, a Trustee shall be deemed to be “incapacitated” (a) upon the appointment of a guardian for such Trustee by a court of competent jurisdiction of the state in which such Trustee is then a resident; or (b) by delivery to the remaining Trustees, if any, otherwise to each of the Beneficiaries, of a written certification from each of two physicians duly licensed to practice medicine in the state in which the Trustee is then a resident that such physician has examined such Trustee and that such Trustee is incapable of giving prompt, rational and prudent consideration to business and financial matters for reasons other than temporary physical or mental illness or injury.

 

6.06          Resignation .  Any Trustee may resign at any time by giving written notice of his or her resignation to each remaining Trustees, or if there are none, to all Beneficiaries.

 

ARTICLE VII

AMENDMENT AND TERMINATION

 

7.01          Amendments .  This Agreement may be amended, supplemented, restated or otherwise modified only in accordance with the applicable provisions set forth in Section 7.02 or pursuant to Section 9.04.

 

7.02          Amendment by Trustees .  The Trustees may amend, supplement, restate or otherwise modify this Agreement only in accordance with the following procedure:

 

(a)            Trustee Approval .  The proposed Amendment must be adopted by a unanimous vote of the Trustees.  The Trustees shall give notice of the proposed Amendment to all Beneficiaries.

 

(b)            Beneficiary Approval .  Beneficiaries holding Trust Certificates representing more than 50% of the Stock held by the Trustees (the “Required Percentage”) must approve the

 

40



 

proposed Amendment within forty-five (45) days from the time of giving notice, otherwise, it will be deemed defeated; provided, however, that if the proposed Amendment affects any provision of this Agreement which requires the action of Beneficiaries holding Trust Certificates representing a greater percentage of the Stock than the Required Percentage, such proposed Amendment must be approved by Beneficiaries holding Trust Certificates representing at least such greater percentage of the Stock under this Agreement.

 

(c)            Withdrawal by Affected Beneficiaries .  If the Trustees determine that any such Amendment materially adversely affects a particular Beneficiary or group of Beneficiaries (the “Affected Beneficiaries”), the Trustees may, in their sole discretion, allow the Affected Beneficiaries to withdraw the shares of Stock represented by the Trust Certificates held by them (the “Affected Stock”), but only if the Affected Beneficiaries request such withdrawal in writing within thirty (30) days following the giving of notice of such amendment by the Trustees.  If the Trustees agree to allow the Affected Beneficiaries to withdraw the Affected Stock, the Trustees shall promptly forward such request to all Qualified Beneficiaries.  Such request shall constitute an offer by each Affected Beneficiary to sell the portion of such Affected Beneficiary’s Trust Certificates representing such Affected Beneficiary’s pro rata share of the Affected Stock to the Qualified Beneficiaries in the sequence and in the manner specified in Section 5.09 and at a purchase price equal to the Purchase Price determined in accordance with Section 5.10, which Purchase Price shall be payable on the terms provided under Section 5.11.  Such request by the Affected Beneficiaries shall be accompanied by the Trust Certificates representing such Affected Beneficiary’s pro rata share of the Affected Stock, together with transfer instruments executed in blank sufficient to effect the transfer of such Trust Certificates if purchased pursuant to such offer, which shall be held by the Initial Trustee or the Trustees for delivery for the account of the

 

41



 

Affected Beneficiaries if a sale is effected.  After the exercise and/or lapse of the options set forth in Section 5.09, the Trustees shall allow the Affected Beneficiaries to withdraw from the Trust any part or all of the Affected Stock not represented by the Trust Certificates purchased by the Qualified Beneficiaries; provided, however, that prior to and as a condition of such withdrawal the Trustees shall, if any of the shares of the Affected Stock are not shares of Class A Common Stock (as defined in Section 5.10(a)), convert such shares of Affected Stock into shares of Class A Common Stock in accordance with the Company’s Restated Articles of Incorporation, as amended from time to time.

 

7.03          Term .  The original term of this Trust began on September 1, 1982 and shall be perpetual.

 

7.04          Termination .  This Agreement may only be terminated by the unanimous vote of the Trustees and the Beneficiaries holding Trust Certificates representing at least two thirds of the Stock held under this Agreement.  This Agreement shall automatically terminate (a) at such time as none of the Stock held by the Trustees under this Agreement possess voting rights, (b) upon the sale, dissolution or liquidation of the Company, or the sale of substantially all of its assets, and (c) upon a merger, reorganization, combination or exchange of stock involving the Company which results in the securities held under this Agreement constituting less than ten percent (10%) of the votes entitled to be cast in an election of directors of the surviving or successor entity.

 

7.05          Withdrawal of Stock .

 

(a)            De Minimus Amount .  Any Beneficiary (a “Withdrawing Beneficiary”) may submit a written request to the Trustees requesting that the Stock (the “Withdrawn Stock”) represented by Trust Certificates held in such Beneficiary’s name be withdrawn from the Trust;

 

42



 

provided, however, that during any given calendar year no Beneficiary may request the withdrawal, pursuant to this Section 7.05(a), of shares of Stock which, when added to the number of shares of Stock previously withdrawn by such Beneficiary pursuant to this Section 7.05(a) during such calendar year, constitutes in the aggregate more than five percent (5%) of the number of shares of Stock represented by Trust Certificates held in such Beneficiary’s name plus the number of shares of Stock previously withdrawn by such Beneficiary pursuant to this Section 7.05(a) during such calendar year.  The Trustees shall promptly forward such request to all Qualified Beneficiaries.  Such request shall constitute an offer by the Withdrawing Beneficiary to sell the portion of the Withdrawing Beneficiary’s Trust Certificates representing the Withdrawn Stock to the Qualified Beneficiaries in the sequence and in the manner specified in Section 5.09 and at a purchase price equal to the Purchase Price determined in accordance with Section 5.10, which Purchase Price shall be payable on the terms provided under Section 5.11.  Such request by the Withdrawing Beneficiary shall be accompanied by the Trust Certificates representing the Withdrawn Stock, together with transfer instruments executed in blank sufficient to effect the transfer of such Trust Certificates if purchased pursuant to such offer, which shall be held by the Trustees for delivery for the account of the Withdrawing Beneficiary if a sale is effected.  After the exercise and/or lapse of the options set forth in Section 5.09, the Trustees shall allow the Withdrawing Beneficiary to withdraw from the Trust any part or all of the Withdrawn Stock not represented by the Trust Certificates purchased by the Qualified Beneficiaries; provided, however, that prior to and as a condition to such withdrawal the Trustees shall, if any of the shares of the Withdrawn Stock are not shares of Class A Common Stock (as defined in Section 5.10(a)), convert such shares of Withdrawn Stock into

 

43



 

shares of Class A Common Stock in accordance with the Company’s Restated Articles of Incorporation, as amended from time to time.

 

(b)            Other Withdrawals .  The Trustees, upon unanimous vote, may allow a Beneficiary to withdraw from the Trust any part or all of the Stock represented by Trust Certificates held in such Beneficiary’s name; provided however that if such withdrawal is by a Beneficiary who is neither Betty E. Quadracci, nor her then current spouse, if any, one of her lineal descendants, the spouse of one of such descendants or a trust of which any of the foregoing persons is a beneficiary, prior to and as a condition to such withdrawal, the Trustees shall, if any of the shares of such Stock are not shares of Class A Common Stock, convert such shares of Stock into shares of Class A Common Stock in accordance with the Company’s Restated Articles of Incorporation, as amended from time to time.  Any Beneficiary may also be required at any time, by unanimous action of all the Trustees or Beneficiaries, except any Beneficiary concerning whom the vote is being taken, to withdraw the shares of Stock represented by the Trust Certificates held by him or her.

 

7.06          Distribution Upon Termination .  Whenever this Agreement shall terminate, the rights of all parties shall terminate, except the right of the Beneficiaries to their distributive share of the proceeds of the Trust as provided in this Section.  In the event this Agreement terminates, every Beneficiary, and in the event this Agreement terminates as to a withdrawing Beneficiary only, such Beneficiary, upon the payment of such Beneficiary’s pro rata share of the costs, expenses, disbursements and outlays of the Trustees, shall, upon surrender to the Trustees of such Beneficiary’s Trust Certificate or Certificates properly endorsed in blank, or upon such other receipt or voucher as the Trustees shall deem sufficient, be entitled to such Beneficiary’s pro rata portion of all property, securities and cash held by or for the Trustees.  Beneficiaries, by

 

44



 

the receipt of their respective pro rata portions or part of any property, securities or cash distributed by the Trustees, shall thereby release and discharge the Trustees, their agents and attorneys, from all liability and accountability under this Agreement of every kind, character and description whatsoever.  The Trustees may make delivery or distribution of such stock, assets or other property pro rata to the person or persons whose names appear upon the books of the Trustees as the owners of the respective Trust Certificates and, in making such delivery, they shall be fully protected notwithstanding that they do not require surrender or production of such Trust Certificates.

 

ARTICLE VIII

NOTICES

 

8.01          Notice .  Every notice or request required or permitted to be given by any person shall be in writing and shall be deemed given (i) upon receipt, if delivered personally, or (ii) if mailed, upon deposit of such notice with the United States Postal Service by registered or certified mail, postage prepaid with return receipt requested, with proper postage and properly addressed:  to such person’s most recent address as reflected in the records of the Trustees.  In the case of any requirement in this Agreement that any notice be for any number of days, or that action be taken within any number of days after giving or receipt of such notice, such time periods shall be computed by excluding the first day (being the day of personal delivery or mailing of such notice) and including all succeeding days and the last day.

 

8.02          Waiver .  Any notice required may be waived pursuant to a written document to that effect.  Notice of any meeting will be deemed waived by all attending the meeting.

 

45



 

ARTICLE IX
MISCELLANEOU S

 

9.01          Interpretation .  The Trustees may construe this Agreement, and their construction made in good faith shall be conclusive and binding upon the parties hereto, and the Trustees may make such regulations as in their judgment may be deemed necessary or proper to carry out the same properly and effectively.

 

9.02          Nonliability; Indemnity .  No Trustee, Beneficiary or Secretary shall be liable to any person for any act or omission made in any capacity in connection with the Trust, or the administration, including acts or omissions of any agent, except for liability due to intentional or willful misconduct or misfeasance or breach of fiduciary duty.  No Trustee, whether original or successor or substitute, shall at any time be required to give or file any bond in order to qualify or continue as such Trustee, unless the giving of such bond be directed by the Trustees, in which event the cost of such bond shall be considered and treated as an expense of the Trust.  The Beneficiaries acknowledge that any actions by the Trustees or the Secretary are performed merely as an accommodation to the Beneficiaries.  Consequently, the Beneficiaries hereby agree to and hereby do indemnify and hold harmless the Trustees and the Secretary, and their respective successors, assigns, and legal representatives, from any and all liabilities, damages, judgments, actions, causes of action, claims or demands or any costs or charges related thereto (including any attorneys’ fees), in any way arising from any action or inaction by the Trustees or Secretary in connection with any terms or conditions of this Agreement to the greatest extent permitted by law, except for any liability caused by intentional or willful misconduct or misfeasance or breach of fiduciary duty.

 

9.03          Severability .  If any provision of this Agreement shall under any circumstances be deemed invalid or inoperative to any extent, it is agreed that such invalidity shall not invalidate

 

46



 

the whole Agreement, but this Agreement shall be construed as not containing any provision or provisions so deemed invalid and inoperative, and the rights and obligations of the parties shall be construed and enforced accordingly.

 

9.04          Savings Provision .  If at any time after the date of this Agreement any law, statute, regulation, rule or case is enacted, passed or decided which affects the validity of any provision contained in this Agreement, such provision shall be automatically amended to the extent, and only to such extent, as is necessary for such provision to comply with such law, statute, regulation, rule or case.

 

9.05          Counterparts; Filing of Agreement .  This Agreement may be executed in counterparts by the Trustees.  At least one of such counterparts and a copy of all amendments to this Agreement shall be provided to each Depositor and one of such counterparts and a copy of all amendments to this Agreement shall be retained by the Trustees at all times and one of such counterparts and a copy of all amendments to this Agreement shall be filed with the registered office of the Company.

 

9.06          Record of Beneficiaries .  The Trustees shall maintain a record of the names and addresses of holders of Trust Certificates and the number and class of shares in respect of which such Trust Certificates where issued, and shall deposit a copy of such record with the registered office of the Company.

 

9.07          Lost, Stolen or Destroyed Certificates .  In the event any Trust Certificate issued under this Agreement becomes mutilated, destroyed, stolen or lost, the Trustees shall issue duplicate Trust Certificates, which shall be so marked, and the Trustees may, as a condition precedent to the issuance of such duplicate Trust Certificates, require the applicant to furnish to

 

47



 

them satisfactory evidence of such mutilation, destruction, theft or loss, together with such indemnity as the Trustees shall require.

 

9.08          Applicable Law .  This Agreement and the rights of the Trust Certificate holders shall be governed, construed and interpreted in accordance with the laws of Wisconsin or the laws of such other jurisdiction within the United States in which the Company or any successor thereto may hereafter be incorporated.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

48



 

IN WITNESS, WHEREOF the parties have executed this Agreement on the day and year indicated below.

 

 

 

DATE OF

TRUSTEES

 

EXECUTION

 

 

 

/s/ Betty E. Quadracci

 

June 25, 2010

Betty E. Quadracci

 

 

 

 

 

/s/ J. Joel Quadracci

 

June 25, 2010

J. Joel Quadracci

 

 

 

 

 

/s/ Elizabeth M. Quadracci-Harned

 

June 25, 2010

Elizabeth M. Quadracci-Harned

 

 

 

 

 

/s/ David A. Blais

 

June 25, 2010

David A. Blais

 

 

 

49



 

EXHIBIT A

 

No.

 

Shares

 

QUAD/GRAPHICS VOTING TRUST

Milwaukee, Wisconsin

 

VOTING TRUST CERTIFICATE

 

                                                                      , (or his or her predecessor in interest) has deposited with the undersigned Trustee and successor Trustees                      shares of                        Stock (“Shares”) of Quad/Graphics, Inc.

 

Such Shares were deposited and this Certificate is issued under and pursuant to the terms of a certain Amended and Restated Voting Trust Agreement relating to such Shares, dated as of June 25, 2010, and now on file with the undersigned Trustee or successor Trustees, and the successive holders of this Certificate are entitled to the rights, benefits and privileges, and this Certificate is subject to the terms, provisions and conditions of the above mentioned Amended and Restated Voting Trust Agreement, as amended from time to time pursuant to its terms.

 

This Certificate is transferable only on the books of the Trustees.  It cannot be transferred except upon compliance with applicable securities laws, the transfer restrictions specified in the above-mentioned Amended and Restated Voting Trust Agreement, and other transfer restrictions, if any, noted on the reverse side of this Certificate.  At all times and for all purposes and irrespective of notice to the contrary, the Trustees may regard the registered holder, as the name of such registered holder appears on the books of the Trustee, as the sole owner of all rights hereunder.  These securities have not been registered under State or Federal securities laws.

 

Dated at                               , Wisconsin this          day of                        ,           .

 

 

 

 

 

, Trustee

 



 

EXHIBIT B

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto                                                    all his or her interest in the common stock of Quad/Graphics, Inc., a Wisconsin corporation, evidenced by Trust Certificate No.            and all other rights represented thereby, subject to the Amended and Restated Voting Trust Agreement dated as of June 25, 2010, mentioned in said Trust Certificate, and hereby authorizes the Trustees to transfer said Trust Certificate on their books and to issue in lieu thereof to said assignee a new Trust Certificate or Trust Certificates in accordance with this assignment and with said agreement.

 

Dated                                       ,                 .

 

 

In presence of:

 

 

 

 

 

 


Exhibit 99.1

 

Quad/Graphics Completes Acquisition of Worldcolor

 

July 2, 2010 10:19 AM ET

 

Combined company to offer more print and related multichannel solutions on an enhanced, global scale

 

SUSSEX, WISCONSIN, July 2, 2010 – Quad/Graphics, Inc. (“Quad/Graphics”) is pleased to announce that its acquisition of World Color Press Inc. (“Worldcolor”) is complete. The closing follows overwhelming approval by shareholders of both companies as well as final court approval.

 

“This is a defining moment in our company’s history and for the future of our industry,” said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “We believe in the power of print in a multichannel media world, and we now have more talent, technology and solutions in more places to better serve our clients well into the future. Our new leadership includes the best and the brightest from both companies, building a unique team of innovative people who will redefine print for the benefit of all our stakeholders.”

 

The “New Quad” offers a broader variety of product types and revenue-generating solutions; an enhanced manufacturing platform that makes available Quad/Graphics’ industry-leading technology and automation to the combined platform; and an expanded geographic footprint and customer service presence. In addition, the company will realize significant mailing and distribution efficiencies, and offer clients improved speed-to-market and product integrity for USPS-delivered products as well as volume-driven postage savings through programs such as co-mailing.

 

Based on proforma unaudited revenues of both companies for the 12 months ending March 31, 2010, the newly expanded Quad/Graphics has sales of $4.8 billion. It has approximately 28,000 employees working from more than 80 facilities in North America, Latin America and Europe. Quad/Graphics is now the second-largest provider of print and related multichannel solutions in the Americas.

 

“Today the New Quad is off to a running start in our quest to redefine print and transform the printing industry,” Mr. Quadracci said. “We have a comprehensive plan designed to smoothly integrate the two companies’ operations while ensuring that our customers continue to receive top-quality, on-time services. We are keenly focused on achieving the synergies that make this transaction so compelling for our shareholders. However, our plans don’t stop there. We expect to advance all aspects of our business through technology and innovation.”

 

“Quad/Graphics has had five months to plan this integration and is better prepared than any team with which I’ve been associated over the years,” stated Mark Angelson, former Chairman and CEO of Worldcolor, who continues on with Quad/Graphics as a member of the Board of Directors. “Harry Quadracci would be beaming with pride, as I am, at having passed the torch of leadership to such a remarkable group. They bring to this acquisition a seamless will to win, the best technology and the clearest strategic vision that I have seen. With Joel Quadracci at the helm, surrounded by the best of the best from these two great companies, Quad/Graphics should go from strength to strength, and all of our constituent groups will benefit.”

 

As part of this transaction, Quad/Graphics will enter a new era as a publicly traded company. Quad/Graphics’ class A common stock will be listed on the New York Stock Exchange (NYSE) under the symbol QUAD, starting on July 6, 2010. To mark the occasion, Chairman, President & CEO Joel Quadracci will lead Quadracci family members and Quad/Graphics leaders in ringing The Opening Bell SM  on July 7, 2010, at 9:30 a.m. ET.

 

Forward-looking statements

 

To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, Quad/Graphics’ objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook, and can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of these terms, variations on them and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Quad/Graphics has based these forward-looking statements on its current expectations about future events. Forward-looking

 

1



 

statements do not take into account the effect of transactions or other items announced or occurring after the statements are made.

 

Although Quad/Graphics believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct, and forward-looking statements inherently involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such forward-looking statements.

 

Important factors and assumptions as well as Quad/Graphics’ ability to anticipate and manage the risks associated therewith that could cause actual results to differ materially from these expectations are detailed from time to time in Quad/Graphics’ filings with the U.S. Securities and Exchange Commission (“SEC”) which are available at www.sec.gov and www.qg.com. Quad/Graphics cautions that any such list of important factors that could affect future results is not exhaustive. Investors and others should carefully consider the factors detailed from time to time in Quad/Graphics’ filings with the SEC and other uncertainties and potential events when relying on its forward-looking statements to make decisions with respect to Quad/Graphics.

 

Unless otherwise indicated, the forward-looking statements in this press release reflect Quad/Graphics’ expectations as of July 2, 2010, being the date at which they have been approved, and are subject to change after this date. Quad/Graphics expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

 

About Quad/Graphics

 

Quad/Graphics (www.QG.com) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts and circulars, direct mail products, books and directories. Headquartered in Sussex, Wis., (just west of Milwaukee), the company has approximately 28,000 employees working from more than 80 locations throughout the United States, Canada, Latin America and Europe. As a printing industry innovator, Quad/Graphics is redefining the power of print in today’s multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.

 

Media Contact:

Claire Ho

Quad/Graphics

414-566-2955

Claire.Ho@qg.com

 

Investor Relations Contact:

Tony Ross

Quad/Graphics

514-877-5317

IR@qg.com

 

2