Loading...
HomeMy WebLinkAboutAgenda - 11-01-94-IX-B 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No 1:X-$ ACTION AGENDA ITEM ABSTRACT Meeting Date: November ,l, 1994 SUBJECT: Orange County Participation in Research Triangle Regional Partnership DEPARTMENT Economic Development PUBLIC HEARING YES NO X ATTACHMENT(S) INFORMATION CONTACT RTRP Resolution John Link, ext 2300 RTRP Map Ted Abernathy, ext 2325 10/21/94 Memo w/EDC Resolution TELEPHONE NUMBER RTRP By-laws Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider adopting a resolution for Orange County to join the Research Triangle Regional Partnership (RTRP) , to appropriate funds for first half year membership, and to consider appointments to the RTRP Board of Directors. BACKGROUND: During the 1994 Short Session, the North Carolina General Assembly ratified Senate Bill 1505. Section 28.7 of that bill directed the Department of Commerce to establish regional organizations for promotion and expansion of economic development. The bill expanded the Raleigh-Durham Regional Association from 3 to 13 counties for the promotion of regional economic development ( 14 counties were initially assigned but Montgomery County was reassigned to the Triad Region) . The mission of the new organization, the RTRP, is to "cooperatively market and promote the Triangle Region for the economic benefit of its communities. " The first year budget for the RTRP is $829,342. The State is providing $565, 150 in funding for this budget through allocations to the participating counties. By joining the RTRP, Orange County' s allocation of just under $6,000 will be dedicated to the organization. Should Orange County elect not to participate, that allocation would revert to the State. As of October 15, all the other counties have voted to join the partnership. The three central Counties (Orange, Wake, and Durham) are being asked to appropriate funds equivalent to 15 cents per capita to the RTRP. For the first half year of operations, Orange County' s contribution would be $7,050. Local private groups and the other 10 counties will also be contributing. In future years, it is expected that contributions from the central counties would increase to 30 cents per capita. Orange County would receive three seats on the RTRP Board of Directors, including two seats on the Executive Committee. One board seat is designated in the RTRP by-laws for Orange County' s Economic Development Director. The Board of Commissioners would consider appointments to the other two seats at a future Commissioners' meeting. 2 RECOMMENDATION: The Manager recommends that the Board': ( 1) adopt the attached resolution signifying Orange County' s joining the Research Triangle Regional Partnership; (2) appropriate $7,050 from the Commissioners' contingency account for Orange County' s first six months contribution to the RTRP; (3) confirm the appointment of the Orange County Economic Development Director to the RTRP Board; and (4 ) plan to make appointments to the other two RTRP Board of Directors seats at a future meeting. 3 r Raleigh-Durham Regional Association Marketing The Research Triangle Area RESOLUTION TO JOIN RESEARCH TRIANGLE REGIONAL PARTNERSHIP WHEREAS, a bill directing the N.C. Department of Commerce to develop a program promoting expansion of economic development efforts for all Counties in the State to participate in and benefit from organized regional economic development activities was ratified in 1994; and, • WHEREAS, each County participating in an assigned region is eligible to dedicate a State funding allocation (based on distress factor) to that region; and, WHEREAS, the Raleigh-Durham Regional Association was assigned 14 Counties to promote regional economic development; and, WHEREAS, the Raleigh-Durham Regional Association will be known as the Research Triangle Regional Partnership; and, WHEREAS, the allocation from the State shall be used for administrative and operating expenses of the Research Triangle Regional Partnership, marketing, advertising, promotion and economic development activities to secure jobs and new investment in the region served by the association; and, WHEREAS, in the event that a request is not made by Orange County to dedicate the State allocation to the regional organization, the State allocation reverts back to the State. NOW, THEREFORE, BE IT RESOLVED, that Orange County hereby joins the Research Triangle Regional Partnership for promotion and economic development activities further described and in accordance with section 28.7 of Senate Bill 1505. WITNESSED this the day of , 1994. WITNESSED BY: • Located at RDU International Airport in the heart of Raleigh-Durham Post Office Box 80756 • RDU Airport, North Carolina • 27623 ire n\ n en n4 Arl n 0 4 T O T P1 > r i m £ > AI p z Z ` . f O 411146. O 2 h r r r > — c O Z•�Z in MOO > O n _ aDes y c 7`> o m z n i Z r0 m 0 �Jn O ri; 41t F, m 9 r m 0T r Aftiolo `. K f m f //C re >m O r n >r r //)` x)H n O f > = > m x y T 0 210 D '�r T T Z Z T i r > O m j r - N $ T trol - �1 o z > o r >, A N O 9 C-4 C co = cn_ 7 0 / 7, E5 0 .< — C . n > >> u, a p i m • T - m m NM 2 C y S n 0 z O T m > c. f > C m r 1 ) ; .c' o > t L m r to r- a m > O O " T > CD - ' , Z En S O T C = r o ZikibLilli 161111(2 - m m z Lr' 1 -�r T = al _ Z m Uk „/ ; T C C▪ c.- 000 Zit..1,8._.. 2, w imiimilliti• I. \ Z c � ,I‘ yaafao `= t') c,i pcp3Is '•-HOC` • T / ..�r� 5 OW& ' d:VAI:111/1) ORANGE COUNTY T TOMORROW PR ESERY ATION•PROGRESS•PEOPLE Memorandum to: Orange County Board of Commissioners From: Ted Abernathy / Date: October 21, 1994 Subject: Research Triangle Regional Partnership The concept of the Research Triangle Regional Partnership (RTRP) is that when business prospects approach the Department of Commerce, they will be referred to regions that meet their specifications rather than to a specific town or county. This partnership encourages working together to bring prospects to the region while each municipality/county maintains its own standards and guidelines for development. At the October 13, 1994 meeting of the Orange County Economic Development Commission, the Board unanimously approved a motion asking: that the Orange County Board of County Commissioners support the Research Triangle Regional Partnership (RTRP) concept and approve County participation in the partnership, including allocation of funds. ORANGE COUNTY ECONOMIC DEVELOPMENT COMMISSION POST OFFICE BOX 1177 • HILLSBOROUGH,NORTH CAROLINA 27278 (4191712-R1R1 (9191968-4501 (919)688-7331 (919)227-2031 FAX(919)644-3008 6 EXHIBIT B BYLAWS • O AP Ra12\R55090-006\0098438\10-07-94 3 7 BY-LAWS OF RESEARCH TRIANGLE REGIONAL PARTNERSHIP December 1, 1994 Table of Contents ARTICLE I Name and Purpose 1 Section 1. Name 1 Section 2 . Purpose 1 ARTICLE II Offices a. Section 1. Registered Office, 1 Section 2. Other Offices 2 ARTICLE III Board of Directors 2 Section 1. General Powers 2 Section 2. Number. Tenure. and Qualification 2 Section 3. Chairman of the Board 7 Section 4 . Vice-Chairman of the Board 7 Section 5. Duties 8 Section 6. Beaular Meetings Section 7. Special Meetings 9 Section 8. Notice of Meetings 9 Section 9. Quorum 10 Section 10. Voting 11 Section 11. Informal Action by Directors or Committees, 11 Ra12\1255090-006\0047496.06\10-07-94 8 Section 12. Resignation of Directors 12 Section 13. Vacancies 12 Section 14 . Compensation of Directors 13 Section 15. Director's Adverse Interest 13 Section 16. Certain Director Liability 13 ARTICLE IV Committees 15 Section i. Executive Committee 15 Section 2. General Powers 16 Section 3. Quorum 16 Section 4 . Meetings 16 Section 5. Vacancies 17 Section 6. Nominating Committee 17 Section 7. Other Committees 17 Section 8. Committee Action as Board Action 18 Section 9. Limitation of Powers 18 Section 10. Removal 19 ARTICLE V Officers 19 Section 1. Number of Officers 19 Section 2. Election. Term of Office and Qualifications 19 Section 3. Subordinate Officers and Agents 20 Section 4. Duties 20 Section 5. Removal 20 Section 6. Resignations 21 Section 7. Vacancies 21 Ra12\1255090-006\0047496.06\10-07-94 ii 9 Section 8. President 21 Section 9 . Secretary_ 22 Section 10. Treasurer 22 Section 11. Duties of Officers May be Delegated . . . 23 Section 12. Compensation of Officers 23 ARTICLE VI Contracts, Loans. Deposits, Checks, Drafts, Etc 23 • Section 1. Contracts 23 Section 2. Loans 24 Section 3 . Deposits 24 Section 4. Checks, Drafts. Etc. 24 Section 5. Finances 25 ARTICLE VII General Provisions 26 Section 1. Corporate Seal 26 Section 2. Fiscal Year 26 Section 3. Waiver of Notice 26 Section 4. Amendment to By-laws. 27 Section 5. Officer, Director. Employee. and Agent Indemnification 27 Section 6. Procedures 32 A R212\1255090-006\0047496.06\10-07-94 i i i 10 BY-LAWS OF RESEARCH TRIANGLE REGIONAL PARTNERSHIP ARTICLE I Name and Purpose Section 1. Name. The name of the corporation shall be "Research Triangle Regional Partnership". Section 2. Purpose. The purpose of the corporation shall be to promote the economic development of the Research Triangle Region in the State of North Carolina (the "Research Triangle Region") . The Research Triangle Region consists of the following counties: Durham, Orange and Wake Counties (the "Central Counties") ; Franklin, Granville, Person, Vance and Warren Counties (the "Northern Counties") ; and Chatham, Harnett, Johnston, Lee and Moore Counties (the "Southern Counties") . ARTICLE II 'Offices Section i. Registered Office. The corporation shall have and continuously maintain in the State of North Carolina, a registered office and a registered agent whose office is identical with such registered office. Such registered office shall be located at Terminal A, Raleigh-Durham International Airport, Morrisville, Wake County, North Carolina 27623, or at such other place within the State of North Carolina as may from time to time be fixed and determined by the Board of Directors. Ra12\R55090-006\0&47496.06\10-07-94 11 Section 2. Other Offices. The corporation may have offices at such places, either within or outside the State of North Carolina, as the Board of Directors may from time to time determine. ARTICLE III Board of Directors Section 1. General. Powers. The property, affairs and business of the corporation shall be managed by the Board of Directors. Section 2. Number. Tenure, and Oualification. (a) Number. The governing body of the corporation shall be the Board of Directors, which shall have up to fifty-four (54) members. (b) Central Counties. The Central Counties shall be represented by up to twenty-four (24) Directors, to be selected as follows: Those four (4) persons who are the chief elected officer and the chief elected officer (elect) of each of The Greater Raleigh Chamber of Commerce and the Durham Chamber of Commerce, Inc. on July 1 of each year (or their replacements) shall serve as members of the Board of Directors ex officio, with the right to vote, from July 1 of such year (or from the date of replacement) through June 30 of the next year. Those two (2) persons who are then the chief executive officer of each of The Greater Raleigh Chamber of Commerce and the Durham Chamber of Commerce, Inc. shall serve as members of the Board of Directors ex officio, with the right to vote, for so long as they hold the office entitling them to serve as Directors. Seven (7) Directors shall be designated by Rat2\R55090-006\0047496.06\10-07-94 2 12 The Greater Raleigh Chamber of Commerce, and seven (7) Directors shall be designated by the Durham Chamber of Commerce, Inc. Orange County shall be represented by three (3) Directors, two (2) of whom shall be designated by the Orange County Economic Development Commission (and approved by the Board of County Commissioners of Orange County if required by such Board) . That person who is then the primary paid professional affiliated with the Economic Development Commission in Orange County shall serve as a member of the Board of Directors ex officio, with the right to vote, for so long as such person holds the office entitling such person to serve as a Director. That person who is then the chief executive officer of the Research Triangle Foundation shall serve as a member of the Board of Directors ex officio, with the right to vote, for so long as such person holds the office entitling such person to serve as a Director. The initial sixteen (16) designated Directors shall serve terms of two (2) years. At the conclusion of such two (2) year term eight (8) of those Directors who are their successors shall be designated for a two (2) year term (with four (4) to be designated by the Durham Chamber of Commerce, Inc. , with three (3) to be designated by The Greater Raleigh Chamber of Commerce, and with one (1) to be designated by the Orange County Economic Development Commission (and approved by the Board of County Commissioners of Orange County if required by such Board) , and eight (8) of those Directors who are their successors shall be designated for a one (1) year term (with three (3) to be designated by the Durham Ra12\R55090-006\0047496.06\10-07-94 3 13 Chamber of Commerce, Inc. , with four (4) to be designated by The Greater Raleigh Chamber of Commerce, and with one (1) to be designated by the Orange County Economic Development Commission (and approved by the Board of County Commissioners of Orange County if required by such Board) . Thereafter, Directors shall be designated to serve two (2) year terms, with The Greater Raleigh Chamber of Commerce being entitled to designate Directors to succeed to its previously designated Directors vacating office, with the Durham Chamber of Commerce, Inc. being entitled to designate Directors to succeed to its previously designated Directors vacating office, and with the Orange County Economic Development Commission being entitled to designate Directors (subject to approval by the Board of County Commissioners of Orange County if required by such Board) to succeed its previously designated Directors vacating office. (c) Northern Counties. The Northern Counties shall be represented by up to fifteen (15) Directors, to be selected as follows: Each of the Northern Counties shall be represented by three (3) Directors. The County Economic Development Commission, Corporation or Office of each of the Northern Counties shall designate- (subject to approval by the Board of County Commissioners of such County if required by such Board) two (2) Directors. That person who is then the primary paid professional affiliated with the Economic Development Commission, Corporation or Office in each Northern County shall serve as a member of the Board of Directors Ra12\R55090.006\0047496.06\10-0744 4 14 ex officio, with the right to vote, for so long as such person holds the office entitling such person to serve as a Director. The initial ten (10) designated Directors shall serve terms of two (2) years. At the conclusion of such two (2) year term five (5) of those Directors who are their successors shall be designated for a two (2) year term (with one (1) to be designated by the Economic Development Commission, Corporation or Office of each of the Northern Counties (and approved by the Board of County Commissioners of such County if required by such Board) ) , and five (5) of those Directors who are their successors shall be designated for a one (1) year term (with one (1) to be designated by the Economic Development Commission, Corporation or Office of each of the Northern Counties (and approved by the Board of County Commissioners of such County if required by such Board) ) . Thereafter, Directors shall be designated to serve two (2) year terms, with the Economic Development Commission, Corporation or Office of each Northern County being entitled to designate Directors (subject to approval by the Board of County Commissioners of such County if required by such Board) to succeed to its previously designated Directors vacating office. (d) Southern Counties. The Southern Counties shall be represented by up to fifteen (15) Directors, to be selected as follows: Each of the Southern Counties shall be represented by three (3) Directors. The County Economic Development Commission, Corporation or Office of each of the Southern Counties shall designate (subject to approval by the Board of County Commissioners Ra12\R55090-006\0047496.06\10-07-94 5 15 of such County if required by such Board) two (2) Directors. That person who is then the primary paid professional affiliated with the Economic Development Commission, Corporation or Office in each Southern County shall serve as a member of the Board of Directors ex officio, with the right to vote, for so long as such person holds the office entitling such person to serve as a Director. The initial ten (10) designated Directors shall serve terms of two (2) years. At the conclusion of such two (2) year term five (5) of those Directors who are their successors shall be designated for a two (2) year term (with one (1) to be designated by the Economic Development Commission, Corporation or Office of each of the Southern Counties (and approved by the Board of County Commissioners of such County if required by such Board) ) , and five (5) of those Directors who are their successors shall be designated for a one (1) year term (with one (1) to be designated by the Economic Development Commission, Corporation or Office of each of the Southern Counties (and approved by the Board of County Commissioners of such County if required by such Board) ) . Thereafter, Directors shall be designated to serve two (2) year terms, with the Economic Development Commission, Corporation or Office of each Southern County being entitled to designate Directors (subject to approval by the Board of County Commissioners of such County if required by such Board) to succeed to its previously designated Directors vacating office. (e) Tenure and Oualification. Members of the Board of Directors shall be designated at the annual meeting of the Ra12v55o9o-ow\0047496As\1047-94 6 16 Directors. Each Director's term of office shall begin on the first day of July after such Director's designation, and shall continue until the Director's successor shall have been duly designated and qualified or until the Director's death or resignation or disqualification or removal. Directors need not be residents of North Carolina. Section 3. Chairman of the Board. A Chairman of the Board shall be elected from among the Directors by the Directors at the annual meeting of the Board of Directors occurring in an even numbered year, commencing with the 1992 annual meeting, by a majority of the Board of Directors present and voting at such meeting. The Chairman of the Board shall serve for a term of two (2) years beginning on the first day of July after such Chairman's election, and continuing until the Chairman's successor shall have been duly elected and qualified or until the Chairman's death or resignation, disqualification or removal. The Chairman of the Board shall preside at all meetings of the Board of Directors, shall serve as the chairman of the Executive Committee, and shall perform such other duties as shall be assigned by the Board of Directors. A vacancy in the office of Chairman of the Board because of death, resignation, removal, or disqualification or any other cause shall be filled for the unexpired portion of the term by the Vice- Chairman of the Board. Section 4. Vice-Chairman of the Board. A Vice-Chairman of the Board shall be elected from among the Dieectors at the annual R312\11.55090-006\0047496.06\10-07-94 7 17 1 meeting of the Board of Directors occurring in an even numbered year, commencing with the 1992 annual meeting, by a majority of the Board of Directors present and voting at such meeting. The Vice- Chairman of the Board shall serve for a term of two (2) years beginning on the first day of July after such Vice-Chairman's election, and continuing until the Vice-Chairman's successor shall have been duly elected and qualified or until the Vice-Chairman's death or resignation, disqualification or removal. The Vice- Chairman of the Board shall preside at all meetings of the Board of Directors in the absence of the Chairman of the Board, and shall perform such other duties as shall be assigned by the Chairman of the Board. The Vice-Chairman of the Board shall be the Chairman- elect of the Board. A vacancy in the office of Vice-Chairman of the Board because of death, resignation, removal, or disqualification or any other cause shall be filled for the unexpired portion of the term by the Board of Directors at any regular or special meeting of the Board of Directors. Section 5. Duties. Directors shall stand in a fiduciary relation to the corporation and shall discharge the duties of their respective positions in good faith, and with that diligence and care which ordinarily prudent individuals would exercise in similar circumstances in like positions. Section 6. Regular Meetings. Semiannual meetings of the Board of Directors shall be held in the Research Triangle Region during the months of May and November of each year, and the meeting held Ra12\R55090-006\0047496.06\10-07-94 8 18 during the month of May of each year shall constitute the annual meeting of the Board of Directors. The Board of Directors may provide by resolution for the holding of such meeting at a place other than the Research Triangle Region, without other notice than such resolution. Section 7. Special Meetings. Special meetings of the Board of Directors may be called by or at the request of the Chairman or by two (2) or more of the Directors. The person or persons authorized to call special meetings of the Board may fix any place, either within or without the State of North Carolina, as the place for holding such special meetings. Section 8. Notice of Meetings. Notice of each regular meeting of the Board of Directors shall be given at least fourteen (14) days prior thereto. Notice of any special meeting of the Board of Directors shall be given at least two (2) days prior thereto. All notices shall be in writing delivered personally or sent by mail, telegram or facsimile transmission to each Director at the Director's address as shown on the records of the corporation. If mailed, such notice shall be deemed to be delivered when deposited in the United States Mail in a sealed envelope so addressed, with postage thereon prepaid. If notice be given by telegram, such notice shall be deemed to be delivered when the telegram is delivered to the telegraph company. If notice be given by facsimile transmission, such notice shall be deemed to be delivered when the facsimile transmission is completed. Any Director may waive notice of any meeting. The attendance of a Director at any Ra12\R55090-006\0047496.06\1047-94 9 19 meeting shall constitute a waiver of notice of such meeting, except where a Director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board need be specified in the notice or waiver of notice of such meeting, unless specifically required by law, by the Articles of Incorporation of the corporation, or by these by-laws. Section 9. Quorum. The presence of forty percent (40%) of the members of the Board of Directors at a meeting duly assembled shall constitute a quorum for the transaction of business; provided, if less than a quorum of the Directors shall be present at the time and place of any meeting, the Directors present may adjourn the meeting from time to time until a quorum. shall be present, and notice of any adjourned meeting need not be given; provided, that the time and place are fixed at the meeting adjourning and the period of adjournment does not exceed ten (10) days in any one adjournment. A meeting at which a quorum is initially present may continue to transact business, notwithstanding the withdrawal of enough Directors to have less than a quorum, if any action taken is approved by at least a majority of the required quorum for such a meeting. Any one (1) or more Directors or members of a committee may participate in a meeting of the Board or committee by means of a conference telephone or similar communications device which allows all persons participating in the meeting to hear each other A Ra12\R55090-006\0047496.06\10-07-94 10 20 and such participation in a meeting shall be deemed presence in person at such meeting. Section 10. Voting. Except as otherwise expressly provided by law, or by the Articles of Incorporation of the corporation, or by these by-laws, the action of a majority of the Directors present at a meeting at which a quorum is present shall be the action of the Board of Directors. Any Director who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless such Director's contrary vote is recorded or the Director's dissent is otherwise entered in the minutes of the meeting or unless the Director shall file written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the Secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director who voted in favor of such action. If action taken by the Executive Committee is not thereafter formally considered by the Board of Directors, a Director may dissent from such action by filing written objection with the Secretary of the corporation with reasonable promptness after learning of such action. Section 11. Informal Action by Directors or Committees. Action taken by a majority of the Directors or members of a committee without a meeting is nevertheless Board or committee action if written consent to the action in question is signed by all the Directors or members of the committee, as the case may be, Ra12\R55090-006\0047496.06\10-07-94 11 21 and filed with the minutes of the proceedings of the Board or committee, whether done before or after the action so taken. If a meeting of Directors otherwise valid is held without proper call or notice, action taken at such meeting otherwise valid is deemed ratified by a Director who did not attend unless promptly after having knowledge of the action taken and of the impropriety in question the Director files with the Secretary of the corporation written objection to the holding of the meeting or to any specific action so taken. Section 12 . Resignation of Directors. Any Director may resign at any time by giving notice thereof in writing to the President or Secretary of the corporation. Such resignation shall take effect at the time specified therein, or if no time is specified, at the time such resignation is received by the President or Secretary, unless it shall be necessary to accept such resignation by its terms before it becomes effective, in which event the resignation shall take effect upon its acceptance by the Board of Directors. Section 13 . Vacancies. In the event of any vacancy occurring in the Board of Directors by death, resignation, disqualification or removal, the remaining Directors shall continue to act; and such vacancy may be filled by the designation of the body which designated the Director whose death, resignation, disqualification or removal created the vacancy. Any Director so chosen shall hold office for the unexpired portion of the term of the person whom the newly designated Director succeeds and until the Director's successor shall have been duly designated and qualified, or until Ra12\R55090-006\0047496.06\10-07-94 12 22 the Director's death, or resignation or disqualification or removal. Section 14. Compensation of Directors. Directors shall not receive any compensation for their services as such; provided, however, nothing herein contained shall be construed to preclude any person who is a Director from also serving the corporation in another capacity and receiving just and reasonable compensation therefor. In the case of compensation paid or voted for services of a Director, the standard of what is "just and reasonable" is what would be paid for such services at arm's length under competitive conditions. Section 15. Director's Adverse Interest. Any corporate transaction in which a Director has an adverse interest must be approved in good faith by a majority, not less than two (2) , of the disinterested Directors present even though less than a quorum, irrespective of the participation of the adversely interested Director in the approval. Section 16. Certain Director Liability. In addition to other liabilities imposed by law upon directors, a Director shall be subject to the following liabilities: (a) All Directors who vote for or assent to any distribution of assets of the corporation contrary to any lawful restrictions in the North Carolina Nonprofit Corporation Act, the Articles of Incorporation of the corporation, or these by-laws, shall be jointly and severally liable to the corporation for the amount of such distribution; provided, such liability shall not exceed the Ral2\R55090-006\0047496.06\10-07-94 13 23 debts, obligations and liabilities existing at the time of such vote or assent which are not thereafter paid and discharged, plus any loss sustained therefrom by members at the time of such vote or assent other than the members receiving the payment in question; and provided further, a Director shall not be liable for such a vote or assent if the Director relied and acted in good faith and reasonably upon financial statements of the corporation represented to be correct and to be based upon generally accepted principles of sound accounting practice by the President or the Treasurer, or certified by an independent public accountant or by a certified public accountant or firm of such accountants to fairly reflect the financial condition of the corporation. (b) All Directors who vote for or assent to any distribution of assets of the corporation during the liquidation of the corporation without the payment and discharge of, or making adequate provision for, all known or reasonably ascertainable debts, obligations, and liabilities of the corporation shall be jointly and severally liable to the corporation for the value of such assets which are distributed, to the extent that such debts, obligations and liabilities of the corporation are not thereafter paid or discharged; provided, a Director shall not be liable for such a vote or assent if the Director relied and acted in good faith and reasonably upon financial statements of the corporation represented to be correct and to be based upon generally accepted principles of sound accounting practice by the President or the Treasurer, or certified by an independent public accountant or by Ra12\R55090-006\0047496.06\10-07-94 14 24 a certified public accountant or firm of such accountants to fairly reflect the financial condition of the corporation. (c) All Directors who vote for or assent to the making of any loan or guaranty or other form of security by the corporation to or for the benefit of the Directors or officers of the corporation, or any of them, except loans, guaranties or other forms of security made to full time employees of the corporation who are also Directors or officers of the corporation, shall be jointly and severally liable to the corporation for the repayment or return of the money or value loaned, with interest thereon at the rate of six percent (6%) a year until paid, or for any liability of the corporation upon the guaranty. ARTICLE IV Committees Section 1. Executive Committee. There shall be an Executive Committee of the Board of Directors, which shall be selected by the Board of Directors at its annual meeting and which shall consist of at twenty (20) persons who are members of the Board of Directors during their tenure as members of the Executive Committee. Six (6) members of the Executive Committee shall be Directors who are representatives of the Central Counties (with two (2) members from each Central County) , five (5) members of the Executive Committee shall be Directors who are representatives of the Northern Counties (with one (1) member from each Northern County) , and five (5) members of the Executive Committee shall be Directors who are representatives of the Southern Counties (with one (1) member from Ra12\1255090-006\0047496.06\10-07-94 15 25 each Southern County) . In addition, the Executive Committee shall include the following: (a) the Chairman of the Board, (b) the Vice-Chairman of the Board, (c) the immediate past Chairman of the Board, and (d) that person who is then the chief executive officer of the Research Triangle Foundation. The composition of the Executive Committee shall be such that included among the members of the Executive Committee are: (a) that person who is then the chief executive officer of The Greater Raleigh Chamber of Commerce, (b) that person who is then the chief executive officer of the Durham Chamber of Commerce, Inc. , (c) at least one (1) of those Directors who is then the primary paid professional affiliated with the Economic Development Commission, Corporation or Office in one of the Northern Counties, and (d) at least one (1) of those Directors who is then the primary paid professional affiliated with the Economic Development Commission, Corporation or Office in one of the Southern Counties. Section 2. General Powers. The Executive Committee shall have and may exercise, in the interim between meetings of the Board of Directors, and except as otherwise provided in Section 9 of this Article, all the powers of the Board of Directors. Section 3 . Quorum. The presence of a majority of the members of the Executive Committee at a meeting duly assembled shall constitute a quorum for the transaction of business. Section 4. Meetinas. Regular meetings of the Executive Committee shall be held at least quarterly during the months of February, May, August and November of each year. Special meetings itgow5O9o-ow\oo474wo6\10417-94 16 26 of the Executive Committee may be called by or at the request of the Chairman of the Executive Committee or by two (2) or more of the Executive Committee members. All meetings of the Executive Committee shall be held in the Research Triangle Region or such other location as a majority of the members of the Executive Committee may agree. Section 5. Vacancies. In the event of any vacancy occurring in the Executive Committee by death, resignation, disqualification, or otherwise, the vacancy shall be filled by the Chairman. Positions filled for an interim period shall be for the balance of the remaining term. Section 6. Nominating Committee. The Chairman shall appoint a Nominating Committee, specifying its chairman, from the Board of Directors not later than March i of each year to nominate candidates for officers (where appropriate) and the Executive Committee. The Nominating Committee shall consist of at least four (4) members (at least two (2) of whom shall be Directors who are representatives of the Central Counties, at least one (1) of whom shall be a Director who is a representative of the Northern Counties, and at least one (1) of whom shall be a Director who is a representative of the Southern Counties) who shall report their nominations to the Board of Directors at its regular annual meeting each year. Section 7. Other Committees. By resolution adopted by a majority of the Directors present at a meeting at which a quorum is present, the Board of Directors may designate one (1) or more Ra12\1255090-006\0047496.06\10-07-94 17 27 additional committees which shall consist of two (2) or more Directors, not having and exercising the authority of the Board of Directors. Section 8 . Committee Action as Board Action. The designation of any committee and the delegation thereto of authority shall not operate to relieve the Board of Directors or any member thereof of any responsibility or liability imposed upon it or the member by law; and any resolutions adopted or other action taken by any such committee within the scope of authority delegated to it by the Board of Directors shall be deemed for all purposes to be adopted or taken by the Board of Directors. Section 9. Limitation of Powers. No Committee shall have authority as to the following matters: (a) The dissolution, merger or consolidation of the corporation; the amendment of the Articles of Incorporation of the corporation; or the sale, lease or exchange of all or substantially all of the property of the corporation. (b) The designation of any such committee or the filling of vacancies in the Board of Directors or in any such committee. (c) The amendment or repeal of these by-laws, or the adoption of new by-laws. (d) The amendment or repeal of any resolution of the Board of Directors which by its terms shall not be so amendable or repealable. Ra12\R55090-006\0047496.06\10-07-94 18 28 (e) The fixing of compensation of the Directors for serving on the Board of Directors or on any such committee. Section 10. Removal. Any committee or any member thereof may be discharged or removed by action of a majority of the Board of Directors present at a meeting at which a quorum is present. ARTICLE V Officers Section i. Number of Officers. The officers of the corporation shall be a Chairman of the Board of Directors, a Vice- Chairman of the Board of Directors, a President, a Secretary, a Treasurer and such other officers as may be appointed in accordance with the provisions of Section 3 of this Article. Any two (2) offices or more may be held by one (1) person, except the offices of President and Secretary; but no officer shall sign or execute any document in more than one (1) capacity, or otherwise act in more than one (1) capacity where action of two (2) or more officers is required. Section 2. Election. Term of Office and Qualifications. Each officer, except such officers as may be appointed in accordance with the provisions of Section 3 of this Article, shall be elected by the Board of Directors at its annual meeting and shall hold office for two (2) years with each officer's term of office beginning on the first day of July after the officer's election, and continuing until such officer's successor shall have been duly elected and qualified or until the officer's death or resignation or disqualification or removal from office. Ra12\R55090-006\0047496.06\10-07-94 19 29 Section 3 . Subordinate Officers and Agents. The Board of Directors from time to time may appoint other officers or agents, each of whom shall hold office for such period, have such authority, and perform such duties as the Board of Directors from time to time may determine. The Board of Directors may delegate to any officer or agent the power to appoint any subordinate officer or agent and to prescribe that officer or agent's respective authority and duties. Section 4 . Duties. Officers shall stand in a fiduciary relation to the corporation and shall discharge the duties of their respective positions in good faith, and with that diligence and care which ordinarily prudent individuals would exercise in similar circumstances in like positions. Section 5. Removal. The officers specifically designated in Section 1 of this Article may be removed either with or without cause, by vote of a majority of the whole Board of Directors at a special meeting of the Board called for that purpose. The officers appointed in accordance with the provisions of Section 3 of this Article may be removed, either with or without cause, by the Board of Directors, by a majority vote of the Directors present at any meeting, or by any officer or agent upon whom such power of removal may be conferred by the Board of Directors. The removal of any person from office shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment of an officer shall not of itself create contract rights. 4 Ra12\1255090:006\0047496.06\10-07-94 20 30 Section 6. Resignations. Any officer may resign at any time by giving written notice to the Board of Directors or to the President or the Secretary of the corporation, or, if the officer was appointed by an officer or agent in accordance with Section 3 of this Article, by giving written notice to the officer or agent who made the appointment. Any such resignation shall take effect upon its being accepted by the Board of Directors or by the officer or agent appointing the person so resigning. Section 7. Vacancies. A vacancy in any office because of death, resignation, removal, or disqualification, or any other cause, shall be filled for the unexpired portion of the term by the Executive Committee at any regular meeting provided seven (7) days notice has been given in writing to the entire Board of Directors. Section 8. President. The President shall be the chief executive officer of the corporation and, subject to the instructions of the Board of Directors or the Chairman of the Board, shall have general control and supervision of the business, affairs, and property of the .corporation and control over its other officers, agents and employees. The President shall serve as a member of the Board of Directors and Executive Committee ex- officio, without right to vote unless the President has otherwise been elected as a Director. The President shall be the official spokesperson for the corporation. The President shall have the powers and duties generally vested in the office of president of a corporation and shall have such other powers and duties as from time to time may be assigned by the Board of Directors or the Ra12\R55090-006\0047496.06\10-07-94 21 31 Chairman of the Board. The corporation shall not be required to have a President and in the absence thereof the Chairman of the Board shall have all of the power and authority of the President granted by law, by the Articles of Incorporation of the corporation, or by these by-laws. Section 9 . Secretary. The Secretary shall keep and distribute the minutes of the meetings of the Board of Directors and shall see that all notices are duly given in accordance with the provisions of these by-laws or as required by law. The Secretary shall be custodian of the records, books, reports, statements, certificates and other documents of the corporation and the seal of the corporation, and see that the seal is affixed to all documents requiring such seal. In general, the Secretary shall perform all duties and possess all authority incident to the office of secretary, and the Secretary shall perform such other duties and have such other authority as from time to time may be assigned by the Board of Directors. Section 10. Treasurer. The Treasurer shall act as the Chief Financial Officer of the corporation and shall have supervision over the funds, securities, receipts, and disbursements of the corporation and shall be the custodian of all appropriate financial books and records of the corporation. The Treasurer shall in general perform all duties and have all authority incident to the office of treasurer and shall perform such other duties and have such other authority as from time to time may be assigned or granted by the Board of Directors. Ra12\R55090-006\0047496.06\10-07-94 22 • 32 Section 11. Duties of Officers May be Delegated. In case of the absence of any officer of the corporation or for any other reason that the Board may deem sufficient, the Board may delegate the powers or duties of such officers to any other officer or to any Director. Section 12. Compensation of Officers. The compensation, if any, of the officers of the corporation shall be fixed at a reasonable amount from time to time by the Board of Directors, and no officer shall be prevented from receiving such compensation by reason of the fact that the officer is also a Director of the corporation. The Board of Directors may delegate to any officer who has been given power to appoint subordinate officers or agents, as provided in Section 3 of this Article, the authority to fix the salaries or other compensation of any such officers or agents so appointed. ARTICLE VI Contracts, Loans, Deposits. Checks, Drafts. Etc. Section 1. Contracts. Except as otherwise provided in these by-laws, the Board of Directors may authorize any officer or officers, agent or agents to enter into any contract or to execute or deliver any instruments on behalf of the corporation, and such authority may be general or confined to specific instances. In the absence of any action by the Board of Directors to the contrary, the President of the corporation shall be authorized to execute such instruments on behalf of the Corporation. Ra12\1255090-006\0047496.06\10-07-94 23 33 Section 2. Loans. No loans shall be contracted on behalf of the corporation and no evidences of indebtedness shall be issued in its name, unless and except as authorized by the Board of Directors. Any officer or agent of the corporation thereunto so authorized may effect loans or advances for the corporation and for such loans and advances may make, execute, and deliver promissory notes, bonds, or other evidences of indebtedness of the corporation. Any such officer or agent, when thereunto so authorized, may mortgage, pledge, hypothecate, or transfer as security for the payment of any and all loans, advances, indebtedness, and liabilities of the corporation any real property and all stocks, bonds, other securities, and other personal property at any time held by the corporation, and to that end, may endorse, assign, and deliver the same, and do every act and thing necessary or proper in connection therewith. Such authority may be general or confined to specific instances. Section 3. Deposits. All funds of the corporation shall be deposited from time to time' to the credit of the corporation in such banks or trust companies or with such bankers or other depositories as the Board of Directors may select, or as may be selected by any officer or officers, agent or agents of the corporation to whom such power may from time to time be given by the Board of Directors. Section 4. Checks, Drafts, Etc. All notes, drafts, acceptances, checks and endorsements or other evidences of indebtedness shall be signed on behalf of the corporation in such Ra12\R55090-006\0047496.06\10-07-94 2 4 34 manner as shall from time to time be determined by resolution of the Board of Directors. Endorsements for deposit to the credit of the corporation in any of its duly authorized depositories shall be made by the President, the Treasurer, or by any officer or agent who may be designated by resolution of the Board of Directors in such manner as such resolution may provide. Section 5. Finances. (a) In order to pursue the purposes herein set forth, the corporation shall have full power to receive donations, bequests, devises and gifts of money and property; to purchase, lease and otherwise acquire and hold, sell, donate, and otherwise dispose of all kinds of property, real, personal, and mixed, which may be deemed necessary in order to carry out the objectives and purposes for which the corporation is created. (b) All properties shall be held in the name of the corporation. (c) No obligation or expense shall be incurred and no money shall be appropriated without prior approval of the Board of Directors. The Board of Directors shall adopt a budget for the corporation for each fiscal year of the corporation. Upon adoption of the budget, the officers of the corporation are authorized to make disbursements on accounts and expenses provided for in the budget without additional approval of the Board of Directors. Disbursements shall be by check. Ra12\R55090-006\0047496.06\10-07-94 25 35 (d) The accounts of the corporation shill be audited by a certified public accountant annually, as soon as practical after the close of the fiscal year. The audit shall be available at all times to the Board of Directors for examination. (e) The President, Secretary, Treasurer, and such others as may be designated by the Board of Directors or Executive Committee, shall be bonded under terms and through an agency approved by the Board of Directors. The premium of any and all bonds shall be paid by the corporation. ARTICLE VII General Provisions Section 1. Corporate Seal. The corporate seal shall be in such form as shall be approved from time to time by the Board of Directors. Section 2. Fiscal Year. The fiscal year of the corporation shall be determined, and may be changed, by resolution of the Board of Directors. Section 3 . Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of the North Carolina Nonprofit Corporation Act or under the provisions of the Articles of Incorporation or the by-laws of the corporation, a waiver thereof in writing signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Ra12\R55090-006\0047496.06\10-07-94 26 36 Section 4 . Amendment to By-laws. These by-laws may be altered, amended, or repealed, and new by-laws may be adopted by a majority of the Directors then in office; provided, however, at least seven (7) days notice in writing shall be given of the intention to alter, amend, or repeal or to adopt new by-laws. Section 5. Officer, Director, Emblovee, and Agent Indemnification. (a) The corporation shall indemnify any Director or officer or former Director or officer of the corporation or any person who may have served at its request as a director or officer of another corporation, partnership, joint venture, trust or other enterprise against liabilities and reasonable litigation expenses, including attorneys' fees, incurred by the Director or officer in connection with any action, suit or proceeding in which the Director or officer is made or threatened to be made a party by reason of being or having been such Director or officer, except in relation to matters as to which the Director or officer shall be adjudged in such action, suit or proceeding to have acted in bad faith or to have been liable or guilty by reason of willful misconduct in the performance of duty. (b) The corporation may purchase and maintain insurance on behalf of any person who is or was a Director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporatidn, partnership, joint Ra12\R55090-006\0047496.06\10-07-94 27 37 venture, trust, or other enterprise against any liability asserted against the Director, officer, employee or agent and incurred in such capacity, or arising out of the Director, officer, employee or agent's status as such, whether or not the corporation would have the power to indemnify the Director, officer, employee or agent against such liability. (c) Expenses incurred by a Director, officer, employee or agent in defending a civil or criminal action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding as authorized by the Board of Directors in the specific case upon receipt of an undertaking by or on behalf of the Director, officer, employee or agent to repay such amount unless it shall be ultimately determined that the Director, officer, employee or agent is entitled to be indemnified by the corporation as authorized in Sections 55A-8-50, et. seq. , of the North Carolina General Statutes or as authorized in these by-laws. (d) Any person who is or was serving as Director, officer, employee or agent of the corporation, or in any such capacity at the request of the corporation in any other corporation, partnership, joint venture, trust or other enterprise, and who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative, not brought by the corporation nor brought Fta12\R55090-006\0047496.06\10-07-94 28 38 by any party seeking derivatively to enforce a liability of such a person to the corporation, shall be entitled to indemnification, or reimbursement by the corporation for any expenses, including attorneys' fees, or any liabilities which the Director, officer, employee or agent may have incurred in consequence of such action, suit or proceeding, under the following conditions: (1) If such person is wholly successful in such person's defense on the merits, or if the proceeding is an administrative or investigative proceeding which does not result in the indictment, fine or penalty of such person, such person is entitled to reimbursement from the corporation of all reasonable expenses of defense or participation, including attorneys' fees. (2) If such person is wholly successful in such person's defense otherwise than solely on the merits, the corporation may pay or agree to pay to such person such expenses of defense or participation, including attorneys' fees, as the Board of Directors in good faith deems reasonable, regardless of any adverse interest of any or all of the Directors. (3) If such person is not wholly successful or is unsuccessful in such person's defense, or if the proceeding to which such person is a party results in such person's indictment, fine or penalty, the corporation may pay or agree to pay, in whole or in part, such expenses of defense or participation, including attorneys' fees, and the amount of RaI2\R55090-006\0047496.06\10-07-94 29 39 any judgment, money decree, fine, penalty or settlement for which such person may have become liable if: (A) a plan for such payment is approved by a consent in writing signed by the Directors entitled to such vote or such plan is sent to the Directors entitled to vote, with notice of a Directors' meeting, whether annual or special, to be held to take action thereon and if at such meeting a plan is approved by a majority of such Directors, exclusive of those Directors to be benefitted by the plan if approved; or (B) a majority of a quorum consisting of Directors who are not parties to such action, suit or proceeding determine that such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe such person's conduct was unlawful; or (C) in a proceeding brought by such person for such determination in the superior court of the district where the corporation has its registered office it is determined that such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no Ra12\R55090-006\0047496.06\10-07-94 30 40 reasonable cause to believe such person's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person's conduct was unlawful. (e) When a present or former Director, officer, employee or agent of the corporation or any person who has served or is serving in such capacity at the request of the corporation in any other corporation, partnership, joint venture, trust or other enterprise, is sued, alone or with others, in the courts of North Carolina, in any action seeking to establish the person's liability to the corporation arising out of the person's alleged dereliction of duty to the corporation, the person shall in turn be entitled to indemnification or reimbursement from the corporation for so much of the person's expenses of defense, including attorneys' fees, as the court in its discretion, upon motion for indemnification or reimbursement, duly made in such action, finds to be reasonable, if: (1) such person is successful in whole or in part in the action against such person or in any settlement thereof and the court finds that such person's conduct fairly and equitably merits such relief; or (2) the court finds, despite such person's adjudication of liability, that such person has acted honestly and reasonably Ra12\R55090-006\0047496.06\10-07-94 31 41 and that, in view of all the circumstances of the case, such person's conduct fairly and equitably merits such relief. (f) When such action is brought in a state other than North Carolina and the result thereof is as would have entitled the defendant officer or Director to make a motion in the cause for indemnification or reimbursement of the officer or Director's expenses of defense if the action had been brought in North Carolina, but no such relief is available in the state in which the * action is actually brought, the defendant officer or Director may bring a separate action against the corporation in North Carolina for such indemnification or reimbursement as the officer or Director might have recovered had the suit against the officer or Director been brought in North Carolina. Notice of said action for indemnification or reimbursement shall be sent, in such form as the court may approve and at the corporation's expense, to the party or parties plaintiff in the prior action who shall be entitled to be heard. (g) As used in this Section 5, the term "person" includes the legal representative of such person. Section 6. Procedures. Proceedings will be governed by and conducted according to the latest edition of Robert's Rules of Order. 4 Ra12\1255090-006\0047496.06\10-07-94 32