Please wait
.4
ARTICLE
V.
AMENDED
AND RESTATED BYLAWS
OF
SPAN-AMERICA MEDICAL SYSTEMS, INC.
February
4, 1997
Section
5.1 Indemnification
of Directors.
The
corporation shall indemnify any individual made party to a proceeding because
he
is or was a director of the corporation against liability incurred in the
proceeding to the fullest extent permitted by law.
Section
5.2 Advance
Expenses for Directors.
The
corporation shall pay for or reimburse the reasonable expenses incurred by
a
director who is a party to a proceeding in advance of final disposition of
the
proceeding to the fullest extent permitted by law.
Section
5.3 Other
Employees and Agents.
In
addition to any indemnification required by law, the corporation may, to the
extent authorized from time to time by the board of directors, grant rights
of
indemnification, and rights to be paid by the corporation the expenses incurred
in defending any proceeding in advance of its final disposition, to any employee
or agent of the corporation to the fullest extent of the provisions of this
By-Law with respect to the indemnification and advancement of expenses of
directors and officers of the corporation.
Section
5.4 Nature
of Right to Indemnification.
The
right to indemnification conferred in this By-Law shall be a contract right
and
shall include the right to be paid by the corporation the expenses incurred
in
defending any such proceeding in advance of its final disposition, such advances
to be paid by the corporation within 30 days after the receipt by the
corporation of a statement or statements from the claimant requesting such
advances from time to time; provided, however, that the payment of such
expenses, incurred by a person to whom indemnification is or may be available
under this By-Law, in advance of the final disposition of a proceeding shall
be
made only pursuant to Section 33-8-530 of [the South Carolina Business
Corporation Act of 1988, as amended (the "Act")], or such successor provision
as
may be in effect from time to time.
Section
5.5 Request
for Indemnification; Determination of Entitlement Thereto; When
Paid.
To
obtain indemnification under this By-Law, a claimant shall submit to the
corporation written request, including therein or therewith such documentation
and information as is reasonably available to the claimant and is reasonably
necessary to determine whether and to what extent the claimant is entitled
to
indemnification. Upon written request by a claimant for indemnification pursuant
to the first sentence of this Section 5.5, a determination with respect to
the
claimant's entitlement thereto shall be made in accordance with Section 33-8-550
of the Act, or such successor provision as may be in effect from tome to time.
If it is so determined that the claimant is entitled to indemnification, payment
to the claimant shall be made within 10 days after such
determination.
Section
5.6 Right
of Action; No Presumption.
If a
claim under Sections 5.1, 5.2 or 5.3 of this By-Law is not paid in full by
the
corporation within thirty days after a written claim pursuant to Section 5.5
of
this By-Law has been received by the corporation, the claimant may at any time
thereafter bring suit against the corporation to recover the unpaid amount
of
the claim and, if successful in whole or in part, the claimant shall be entitled
to be paid also the expense of prosecuting such claim to the extent permitted
by
law. It shall be a defense to any such action (other than an action brought
to
enforce a claim for expenses incurred in defending any proceeding in advance
of
its final disposition where the requirements of Section 33-8-530 of the Act,
or
any successor provision thereto that may be in effect from time to time, have
been complied with) that the claimant has not met the standard of conduct which
makes it permissible under the Act for the corporation to indemnify the claimant
for the amount claimed, but the burden of proving such defense shall be on
the
corporation. Neither the failure of the corporation (including its board of
directors, special counsel or shareholders) to have made a determination prior
to the commencement of such action that indemnification of the claimant is
proper in the circumstances because he or she had met the applicable standard
of
conduct set forth in the Act, nor an actual determination by the corporation
(including its board of directors, special counsel or shareholders) that the
claimant has not met such applicable standard of conduct, shall create a
presumption that the claimant has not met the applicable standard of
conduct.
Section
5.7 Binding
Effect on the Corporation.
If a
determination shall have been made pursuant to Section 5.5 of this By-Law that
the claimant is entitled to indemnification, the corporation shall be bound
by
such determination in any judicial proceeding commenced pursuant to Section
5.6
of this By-Law.
Section
5.8 No
Challenge to Validity.
The
corporation shall be precluded from asserting in any judicial proceeding
commenced pursuant to Section 5.6 of this By-Law that the procedures and
presumptions of this By-Law are not valid, binding and enforceable and shall
stipulate in such proceeding that the corporation is bound by all the provisions
of this By-Law.
Section
5.9 Nonexclusivity.
The
right to indemnification and the payment of expenses incurred in defending
a
proceeding in advance of its final disposition conferred in this By-Law shall
not be exclusive of any other right which any person may have or hereafter
acquire under any statute, provision of the articles of incorporation, By-Laws,
agreement, vote of shareholders or directors or otherwise. No repeal or
modification of this By-Law shall in any way diminish or adversely affect the
rights of any director, officer, employee or agent of the corporation hereunder
in respect of any occurrence or matter arising prior to any such repeal or
modification.
Section
5.10 Severability. If
any
provision or provisions of this By-Law shall be held to be invalid, illegal
or
unenforceable for any reason whatsoever: (1) the validity, legality and
enforceability of the remaining provisions of this By-Law (including, without
limitation, each portion of any Section of this By-Law containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
held
to be invalid, illegal or unenforceable) shall not in any way be affected or
impaired thereby; and (2) to the fullest extent possible, the provisions of
this
By-Law (including, without limitation, each such portion of any Section of
this
By-Law containing any such provision held to be invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.
Section
5.11 Notices.
Any
notice, request or other communication required or permitted to be given to
the
corporation under this By-Law shall be in writing and either delivered in person
or sent by telecopy, telex, telegram, overnight mail or courier service, or
certified or registered mail, postage prepaid, return receipt requested, to
the
Secretary of the corporation and shall be effective only upon receipt by the
Secretary.