Table of Contents

As filed with the Securities and Exchange Commission on April 7, 2014

Registration No. 333-                

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM S-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

LSB INDUSTRIES, INC.

(Exact name of registrant, as specified in its charter)

SEE TABLE OF ADDITIONAL REGISTRANTS

 

 

 

DELAWARE		2810		73-1015226
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		(I.R.S. Employer Identification Number)

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

(405) 235-4546

(Address, including zip code, and telephone number of registrant’s principal executive offices)

 

 

David M. Shear, Esq.

Senior Vice President and General Counsel

LSB Industries, Inc.

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

(405) 235-4546

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies to:

Irwin H. Steinhorn, Esq.

Conner & Winters, LLP

1700 One Leadership Square

211 North Robinson

Oklahoma City, Oklahoma 73102

(405) 272-5711

 

 

Approximate date of commencement of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective.

If the securities being registered on this form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box  ¨

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ¨

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer		x		Accelerated filer		¨
Non-accelerated filer		¨  (Do not check if a smaller reporting company)		Smaller reporting company		¨

CALCULATION OF REGISTRATION FEE

Title of securities to be registered		Amount to be registered		Proposed maximum offering price per unit(1)		Proposed maximum aggregate offering price(1)		Amount of registration fee
7.75% Senior Secured Notes due 2019		$425,000,000		100%		$425,000,000		$54,740
Guarantees of 7.75% Senior Secured Notes due 2019		—(2)		—(2)		—(2)		$0
		$425,000,000		N/A		$425,000,000		$54,740

(1)	Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(f) under the Securities Act.

(2)	The Notes are guaranteed by the guarantors named in the Table of Additional Registrant Guarantors. Pursuant to Rule 457(n) under the Securities Act of 1933, as amended, no separate fee is payable for the guarantees. The guarantees are not traded separately.

 

 

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until this Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

 

 

 

---

Table of Contents

TABLE OF ADDITIONAL REGISTRANT GUARANTORS

 

Exact Name of Additional Registrant as Specified in its Charter		State or Other Jurisdiction of Incorporation or Organization		Primary Standard Industrial Classification Code Number				I.R.S. Employer Identification Number		Address, including Zip Code and Telephone Number, including Area Code, of Registrant’s Principal Executive Offices
CEPOLK Holdings, Inc.		OK			3585			73-1456546		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Chemex I Corp.		OK			2810			73-1330903		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Chemical Properties L.L.C.		OK			2810			45-3358930		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Chemical Transport L.L.C.		OK			2810			27-2257465		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Cherokee Nitrogen L.L.C.		OK			2810			41-2115998		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Cherokee Nitrogen Holdings, Inc.		OK			2810			73-1597254		16 South Pennsylvania Avenue Oklahoma City, OK 73107
ClimaCool Corp.		OK			3585			73-1409358		15 South Indiana Avenue Oklahoma City, OK 73106
Climate Master, Inc.		DE			3585			93-0857025		7300 SW 44th Street Oklahoma City, OK 73179
ClimateCraft, Inc.		OK			3585			73-1207959		518 North Indiana Avenue Oklahoma City, OK 73106
ClimateCraft Technologies, Inc.		OK			3585			73-1553909		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Consolidated Industries L.L.C.		OK			3585			27-2143118		16 South Pennsylvania Avenue Oklahoma City, OK 73107
EDC Ag Products Company L.L.C.		OK			2810			27-4642608		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Acid, L.L.C.		OK			2810			73-1614043		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Acid II, L.L.C.		OK			2810			73-1614042		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Ammonia L.L.C.		OK			2810			46-2449585		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Chemical Company		OK			2810			73-1183488		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Nitric L.L.C.		OK			2810			73-1189782		16 South Pennsylvania Avenue Oklahoma City, OK 73107
El Dorado Nitrogen, L.P.		TX			2810			73-1614277		16 South Pennsylvania Avenue Oklahoma City, OK 73107
International Environmental Corporation		OK			3585			73-0754306		5000 I-40 West Oklahoma City, OK 73128
Koax Corp.		OK			3585			73-1284158		510 North Indiana Oklahoma City, OK 73106
LSB Capital L.L.C.		OK			2810			46-2685309		16 South Pennsylvania Avenue Oklahoma City, OK 73107
LSB Chemical L.L.C.		OK			2810			73-1207958		16 South Pennsylvania Avenue Oklahoma City, OK 73107
LSB-Europa Limited		OK			3585			73-0978494		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Pryor Chemical Company		OK			2810			73-1106665		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Summit Machine Tool Manufacturing L.L.C.		OK			3585			73-0689388		518 North Indiana Avenue Oklahoma City, OK 73106
The Climate Control Group, Inc.		OK			3585			73-1415062		7300 SW 44th Street Oklahoma City, OK 73179

---

Table of Contents

Exact Name of Additional Registrant as Specified in its Charter		State or Other Jurisdiction of Incorporation or Organization		Primary Standard Industrial Classification Code Number				I.R.S. Employer Identification Number		Address, including Zip Code and Telephone Number, including Area Code, of Registrant’s Principal Executive Offices
ThermaClime Technologies, Inc.		OK			3585			73-1553910		5000 I-40 West Oklahoma City, OK 73128
Trison Construction, Inc.		OK			3585			73-1538285		4000 NW 39th Street Oklahoma City, OK 73112
XpediAir, Inc.		OK			3585			73-1431586		16 South Pennsylvania Avenue Oklahoma City, OK 73107
Zena Energy L.L.C.		OK			2810			37-1705141		16 South Pennsylvania Avenue Oklahoma City, OK 73107

---

Table of Contents

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any statement where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED APRIL 7, 2014

PROSPECTUS

 

LSB INDUSTRIES, INC.

Offer to Exchange

All Outstanding Unregistered 7.75% Senior Secured Notes Due 2019

($425,000,000 Aggregate Principal Amount)

for

7.75% Senior Secured Notes Due 2019 ($425,000,000 Aggregate Principal Amount)

which have been registered under the Securities Act of 1933

 

 

The Notes

We are offering to exchange, upon the terms and subject to the conditions of this prospectus and the accompanying letter of transmittal, our new registered 7.75% Senior Secured Notes due 2019 for all of our outstanding unregistered 7.75% Senior Secured Notes due 2019. We refer to our outstanding unregistered 7.75% Senior Secured Notes due 2019 as the “old notes” and to the new 7.75% Senior Secured Notes due 2019 issued in this exchange offer as the “Notes.” We refer to the offer to exchange the old notes for the Notes as the “exchange offer” or “this offer” in this prospectus. The Notes are substantially identical to the old notes that we issued on August 7, 2013, except for certain transfer restrictions and registration rights provisions relating to the old notes.

Material Terms of the Exchange Offer

 

•

The exchange expires at 5:00 p.m., New York City time, on [•], 2014, unless extended, and is subject to customary conditions.

 

•

You will receive an equal principal amount of Notes for all old notes that you validly tender and do not validly withdraw before the exchange offer expires.

 

•

The exchange will not be a taxable exchange for U.S. federal income tax purposes.

 

•

There has been no public market for the old notes, and we cannot assure you that any public market for the Notes will develop. We do not intend to list the Notes on any securities exchange or to arrange for them to be quoted on any automated quotation system.

 

•

The terms of the Notes are substantially identical to the old notes, except for transfer restrictions and registration rights provisions relating to the old notes.

 

•

If you fail to tender your old notes for the Notes, you will continue to hold unregistered securities and it may be difficult for you to transfer them.

 

•

The old notes are, and the Notes will be, fully, jointly, severally and unconditionally guaranteed on a senior secured basis by each of our restricted subsidiaries, except for Zena Energy, L.L.C.

 

•

Each broker-dealer that receives Notes for its own account in the exchange offer must acknowledge that it acquired the old notes for its own account as a result of market-making or other trading activities and must agree that it will deliver a prospectus meeting the requirements of the Securities Act of 1933, as amended, or the Securities Act, in connection with any resale of the Notes. A participating broker-dealer may use this prospectus, as it may be amended or supplemented from time to time, in connection with resales of Notes received in exchange for old notes where such old notes were acquired as a result of market-making activities or other trading activities.

For a more detailed description of the Notes, see “Description of the Notes.”

We are not making this exchange offer in any state where it is not permitted.

 

 

Investing in these securities involves a high degree of risk. See the information under “Risk Factors” and under similar headings in the other documents incorporated by reference in this prospectus for a discussion of the factors you should carefully consider in connection with this exchange offer. See “Risk Factors” beginning on page 12.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

 

The date of this prospectus is [•], 2014

---

Table of Contents

You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with information different from that contained in this prospectus. This prospectus is an offer to exchange only the Notes offered by this prospectus and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is accurate only as of its date.

TABLE OF CONTENTS

 

		Page
WHERE YOU CAN FIND MORE INFORMATION			i
INCORPORATION BY REFERENCE			ii
NOTICE TO NEW HAMPSHIRE RESIDENTS ONLY			iii
INDUSTRY AND MARKET DATA			iii
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS			iii
PROSPECTUS SUMMARY			1
SUMMARY HISTORICAL CONSOLIDATED FINANCIAL DATA			4
SUMMARY OF THE EXCHANGE OFFER			6
SUMMARY OF THE TERMS OF THE NOTES			8
RISK FACTORS			12
RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS			27
USE OF PROCEEDS			27
SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA			27
DESCRIPTION OF OTHER INDEBTEDNESS			28
DESCRIPTION OF NOTES			30
THE EXCHANGE OFFER			73
BOOK-ENTRY, DELIVERY AND FORM			79
MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS			81
PLAN OF DISTRIBUTION			81
LEGAL MATTERS			82
EXPERTS			82

 

 

Unless the context otherwise requires, references in this prospectus to “LSB,” “the company,” “we,” “our,” and “us” refer to LSB Industries, Inc., a Delaware corporation, and its consolidated subsidiaries.

 

 

Except as otherwise indicated, this prospectus speaks as of the date of this prospectus. Neither the delivery of this prospectus at any time, nor the sale of any Notes shall, under any circumstances, create any implication that there has been no change in our affairs after the date of this prospectus.

This prospectus is based on information provided by us and other sources that we believe are reliable. We cannot assure you that the information from other sources is accurate or complete. In making an investment decision, you must rely on your own examination of our business and the terms of this offering and the Notes, including the merits and risks involved. You should contact us with any questions about this offering or for additional information to verify the information contained in this prospectus.

You should not consider any information in this prospectus to be legal, business or tax advice. You should consult your own attorney, business advisor and tax advisor for legal, business and tax advice regarding an investment in the Notes.

You must comply with all applicable laws and regulations in effect in any applicable jurisdiction, and you must obtain, at your sole cost and expense, any consent, approval or permission required by you for the purchase, offer or sale of the Notes under the laws and regulations in effect in the jurisdictions to which you are subject or in which you make such purchase, offer or sale, and we will not have any responsibility therefor.

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the Internet at the SEC’s website at http://www.sec.gov. Copies of certain information filed by us with the SEC are also available on our website at http://www.lsb-okc.com. Our website is not a part of this prospectus. You may also read and copy any document we file at the SEC’s public reference room, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room.

 

i

---

Table of Contents

Because our common stock is listed on the New York Stock Exchange, you may also inspect reports, proxy statements and other information about us at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005.

This prospectus is part of a registration statement we filed with the SEC. This prospectus omits some information contained in the registration statement in accordance with the SEC rules and regulations. You should review the information and exhibits in the registration statement for further information on us and our consolidated subsidiaries and the securities we are offering. Statements in this prospectus concerning any document we filed as an exhibit to the registration statement or that we otherwise filed with the SEC are not intended to be comprehensive and are qualified by reference to those filings. You should review the complete document to evaluate these statements.

INCORPORATION BY REFERENCE

The SEC allows us to incorporate by reference much of the information we file with them, which means that we can disclose important information to you by referring you to those publicly available documents. The information that we incorporate by reference in this prospectus is considered to be part of this prospectus. Because we are incorporating by reference future filings with the SEC, this prospectus is continually updated and those future filings may modify or supersede some of the information included or incorporated in this prospectus. This means that you must look at all of the SEC filings that we incorporate by reference to determine if any of the statements in this prospectus or in any document previously incorporated by reference have been modified or superseded. This prospectus incorporates by reference the documents listed below (in each case, other than those documents or the portions of those documents not deemed to be filed) until the offering of the securities under the registration statement is terminated or completed:

 

•

Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed on February 27, 2014;

 

•

Current Reports on Form 8-K, filed on January 7, January 15, January 17, January 21, February 10, February 13, February 19, February 27, and April 4, 2014;

 

•

All our filings pursuant to the Securities Exchange Act of 1934, as amended, or the Exchange Act, after the date of filing of the initial registration statement and prior to the effectiveness of the registration statement;

 

•

All documents and reports that we file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus; and

 

•

Description of our common stock and associated rights to purchase Series A junior participating preferred stock, which we refer to as our “Series A Preferred Stock,” contained in our Registration Statement on Form 8-A filed pursuant to Section 12(b) of the Exchange Act as filed with SEC on January 2, 2009, including any subsequent amendments or reports filed for the purpose of updating such description.

You may request a copy of these filings, at no cost, by writing or telephoning us at the following address:

LSB Industries, Inc.

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

Attn: Corporate Secretary

Telephone: (405) 235-4546

To obtain timely delivery of any requested information, holders of the old notes must make any request for information no later than five business days prior to the expiration of the exchange offer.

Any statement in a document all or a portion of which is incorporated by reference in this prospectus will be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus modifies or supersedes such statement. Any such statement or document so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this prospectus.

 

ii

---

Table of Contents

NOTICE TO NEW HAMPSHIRE RESIDENTS ONLY

NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR A LICENSE HAS BEEN FILED UNDER CHAPTER 421-B OF THE NEW HAMPSHIRE REVISED STATUTES OF 1955, AS AMENDED (“RSA 421-B”) WITH THE STATE OF NEW HAMPSHIRE NOR THE FACT THAT A SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE OF NEW HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE THAT ANY DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND NOT MISLEADING. NEITHER ANY SUCH FACT NOR THE FACT THAT AN EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY OR A TRANSACTION MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE MERITS OR QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON, SECURITY OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO ANY PROSPECTIVE PURCHASER, CUSTOMER OR CLIENT ANY REPRESENTATION INCONSISTENT WITH THE PROVISIONS OF THIS PARAGRAPH.

INDUSTRY AND MARKET DATA

The market share, ranking and other data contained in this prospectus are based on our management’s own estimates, independent industry publications, reports by market research firms or other published independent sources and, in each case, our management believes these to be reasonable estimates. However, market share data is subject to change and cannot always be verified with certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey of market shares. Our internal estimates have not been verified by any independent source, and we have not independently verified any third party information nor have we ascertained the underlying economic assumptions relied upon in those sources, and neither we nor the initial purchasers can assure you of the accuracy or completeness of such information contained in this prospectus. While we are not aware of any misstatements regarding market, industry or similar data presented herein, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed under the headings “Cautionary Statement Concerning Forward-Looking Statements” and “Risk Factors” in this prospectus. As a result, you should be aware that market share, ranking and other similar data set forth herein, and estimates and beliefs based on such data, might not be reliable.

CAUTIONARY STATEMENT CONCERNING

FORWARD-LOOKING STATEMENTS

This prospectus contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements use words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “estimates,” “intends,” “projects,” “goals,” “targets” and other similar expressions or future or conditional verbs such as “should,” “would,” and “could.” You can also identify them by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are based on management’s beliefs, expectations and assumptions and involve a number of known and unknown risks and uncertainties. These forward-looking statements are not guarantees of future performance, and there are a number of factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. We caution you therefore against relying on any of these forward-looking statements.

Forward-looking statements contained herein include, but are not limited to, the following:

 

•

invest in projects that will generate best returns for our stockholders;

 

•

modest growth of the U.S. economy;

 

•

the construction outlook for the commercial/institutional sector and single-family sector;

 

•

anticipated losses while certain chemical plants are down;

 

•

the outlook for the types of nitrogen fertilizer products we produce and sell;

 

•

demand for our geothermal products;

 

•

growth in the coal industry;

 

•

reduction in operating income within our chemical facilities due to damaged facilities;

 

•

use of net proceeds from sale of Senior Secured Notes;

 

•

shipment of backlog;

 

•

cost of new chemical plants and when these plants will become operational;

 

•

cost for PSM program for the balance of 2014;

 

•

ability to pass to our customers cost increases in the form of higher prices;

 

iii

---

Table of Contents

•

sufficient sources for materials and components;

 

•

customer demand for our industrial, mining and agricultural products for 2014;

 

•

fertilizer outlook;

 

•

planned capital spending;

 

•

ability to obtain anhydrous ammonia from other sources;

 

•

compliance by the El Dorado Facility of the terms of its permits;

 

•

dissolved mineral issue should not be an issue since the pipeline is operational;

 

•

sales growth of the Climate Control Business;

 

•

sales in the medium-term and long-term will be primarily driven by growth in new construction, as well as the introduction of new products;

 

•

our GHPs use a form of renewable energy and, under certain conditions, can reduce energy costs up to 80% compared to some conventional HVAC systems;

 

•

reserves of Zena Energy L.L.C.’s natural gas working interest;

 

•

cash needs for 2014;

 

•

we plan to rely upon working capital, internally generated cash flows, noncurrent restricted cash and investments, insurance proceeds, and third-party financing;

 

•

fund committed capital expenditures;

 

•

El Dorado Facility’s use of the wastewater pipeline will ensure EDC’s ability to comply with future permit limits;

 

•

cost relating to settlement with the EPA relating to issues involving the Clean Air Act;

 

•

when the Pryor Facility will resume production;

 

•

costs of Turnarounds during 2014 for our chemical facilities;

 

•

the expenses in connection with environmental projects for 2014;

 

•

cash needs and how we expect to fund our cash requirements;

 

•

depreciation, depletion and amortization expected to increase in 2014;

 

•

if we should repurchase stock, we currently intend to fund any repurchases from our available working capital;

 

•

benefits relating to construction of new plants at the El Dorado Facility; and

 

•

meeting all required covenant tests for all quarters and the year ending in 2014.

While we believe the expectations reflected in such forward-looking statements are reasonable, we can give no assurance such expectations will prove to have been correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this prospectus, including, but not limited to, the following:

 

•

changes in general economic conditions, both domestic and foreign,

 

•

material reduction in revenues,

 

•

material changes in interest rates,

 

•

ability to collect in a timely manner a material amount of receivables,

 

•

increased competitive pressures,

 

•

adverse effect on increases in prices of raw materials;

 

•

changes in federal, state and local laws and regulations, especially environmental regulations or the American Reinvestment and Recovery act, or in interpretation of such,

 

•

releases of pollutants into the environment exceeding our permitted limits,

 

•

material increases in equipment, maintenance, operating or labor costs not presently anticipated by us,

 

•

the requirement to use internally generated funds for purposes not presently anticipated,

 

•

the inability to secure additional financing for planned capital expenditures or financing obligations coming due in the near future,

 

•

substantial existing indebtedness;

 

iv

---

Table of Contents

•

material changes in the cost of certain precious metals, anhydrous ammonia, natural gas, copper, steel and purchased components,

 

•

limitations due to financial covenants;

 

•

changes in competition,

 

•

the loss of any significant customer,

 

•

increase in cost to maintain internal controls over financial reporting;

 

•

changes in operating strategy or development plans,

 

•

inability to fund the working capital and expansion of our businesses,

 

•

problems with product equipment,

 

•

changes in the production efficiency of our facilities,

 

•

adverse results in our contingencies including pending litigation,

 

•

additional unplanned downtime at one or more of our chemical facilities;

 

•

changes in production rates at any of our chemical plants;

 

•

inability to obtain necessary raw materials and purchased components,

 

•

material increases is cost of raw materials;

 

•

material changes in our accounting estimates,

 

•

significant problems within our production equipment,

 

•

fire or natural disasters,

 

•

inability to obtain or retain our insurance coverage,

 

•

obtaining necessary permits;

 

•

third-party financing;

 

•

risk associated with drilling natural gas wells;

 

•

changes in fertilizer production;

 

•

reduction in acres planted for crops requiring fertilizer;

 

•

decrease in duties for Ukraine and Russian AN products resulting in an increase in foreign AN products into the U.S.

 

•

uncertainties in estimating natural gas reserves;

 

•

volatility of natural gas prices;

 

•

weather conditions;

 

•

increase in imported agricultural products;

 

•

factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, including under the caption “Item 1A. Risk Factors” and other reports and documents we file with the SEC and that are incorporated by reference herein; and

 

•

factors described in the “Risk Factors” section of this prospectus.

We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this prospectus may not in fact occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

 

v

---

Table of Contents

 

1

---

Table of Contents

 

2

---

Table of Contents

 

3

---

Table of Contents

 

4

---

Table of Contents

 

5

---

Table of Contents

 

6

---

Table of Contents

 

7

---

Table of Contents

 

8

---

Table of Contents

 

9

---

Table of Contents

 

10

---

Table of Contents

 

11

---

Table of Contents

RISK FACTORS

You should carefully consider the following risk factors in addition to the other information included in this prospectus before tendering your old notes in the exchange offer. In addition, you should carefully consider the matters discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 and in other documents that are subsequently filed with the SEC, which are incorporated by reference into this prospectus. If any of the following risks or the risks incorporated by reference into this prospectus actually occur, our business, financial condition, prospects, results of operations or cash flow could be materially and adversely affected. Additional risks or uncertainties not currently known to us, or that we currently deem immaterial, may also impair our business operations. We cannot assure you that any of the events discussed in the risk factors below will not occur and if such events do occur, you may lose all or part of your original investment in the Notes. The risks discussed below also include forward-looking statements and our actual results may differ substantially from those discussed in these forward-looking statements. See “Cautionary Statement Concerning Forward-Looking Statements.”

Risks Related to the Exchange Offer

You may have difficulty selling the old notes that you do not exchange.

If you do not exchange your old notes for Notes pursuant to the exchange offer, the old notes you hold will continue to be subject to the existing transfer restrictions. The old notes may not be offered, sold or otherwise transferred, except in compliance with the registration requirements of the Securities Act, pursuant to an exemption from registration under the Securities Act or in a transaction not subject to the registration requirements of the Securities Act, and in compliance with applicable state securities laws. We do not anticipate that we will register the old notes under the Securities Act. After the exchange offer is consummated, the trading market for the remaining untendered old notes may be small and inactive. Consequently, you may find it difficult to sell any old notes you continue to hold because there will be fewer old notes of such series outstanding.

If you do not exchange your old notes in the exchange offer, you will no longer be entitled to an increase in interest payments on old notes that the original indenture provides for if we fail to complete the exchange offer.

Once the exchange offer has been completed, holders of outstanding old notes will not be entitled to any increase in the interest rate on their old notes that the original indenture governing the old notes provides for if we fail to complete the exchange offer. Holders of old notes will not have any further rights to have their old notes registered, except in limited circumstances, once the exchange offer is completed.

Some holders of the Notes may be required to comply with the registration and prospectus delivery requirements of the Securities Act.

If you exchange your old notes in the exchange offer for the purpose of participating in a distribution of the Notes, you may be deemed to have received restricted securities and, if so, you will be required to comply with the registration and prospectus delivery requirements of the Securities Act in connection with any resale transaction.

In addition, a broker-dealer that purchased old notes for its own account as part of market-making or trading activities must deliver a prospectus when it sells the Notes it received in the exchange offer. Our obligation to make this prospectus available to broker-dealers is limited. We cannot assure you that a proper prospectus will be available to broker-dealers wishing to resell their Notes.

Failure to comply with the exchange offer procedures could prevent a holder from exchanging its old notes.

Holders of the old notes are responsible for complying with all exchange offer procedures. The issuance of Notes in exchange for old notes will only occur upon completion of the procedures described in this prospectus under “The Exchange Offer.” Therefore, holders of old notes who wish to exchange them for Notes should allow sufficient time for timely completion of the exchange procedure. Neither we nor the exchange agent are obligated to extend the offer or notify you of any failure to follow the proper procedure.

Risks Related to Our Business and Industry

Our Chemical and Climate Control Businesses and their customers are sensitive to adverse economic cycles.

Our Chemical Business can be affected by cyclical factors such as inflation, global energy policy and costs, global market conditions and economic downturns in specific industries. Certain sales of our Chemical Business are sensitive to the level of activity in the agricultural, mining, automotive and housing industries. A substantial decline in the activity of our Chemical Business has in the past, and could in the future, have a material adverse effect on the results of our Chemical Business and on our liquidity and capital resources. Further, material economic changes that adversely affect our natural gas working interests or lower natural gas prices may require us to write down the carrying value of our natural gas working interests. Therefore, these changes in our Chemical Business could adversely impact our operating results, liquidity and financial condition.

Our Climate Control Business also can be affected by cyclical factors, such as interest rates, inflation and economic downturns. Our Climate Control Business depends on sales to customers in the construction and renovation industries, which are particularly sensitive to these factors. A decline in the economic activity in the U.S. has in the past, and could in the future, have a material adverse

 

12

---

Table of Contents

effect on us and our customers in the construction and renovation industries in which our Climate Control Business sells a substantial amount of its products. Such a decline could result in a decrease in revenues and profits, and an increase in bad debts that could have a material adverse effect on our operating results, financial condition and liquidity.

Weather conditions adversely affect our Chemical Business.

The agricultural products produced and sold by our Chemical Business have been in the past, and could be in the future, materially affected by adverse weather conditions (such as excessive rain or drought) in the primary markets for our fertilizer and related agricultural products. If any of these unusual weather events occur during the primary seasons for sales of our agricultural products (March-June and September-November), this could have a material adverse effect on the agricultural sales of our Chemical Business and our financial condition and results of operations.

Despite continuing investment to upgrade and replace equipment on an ongoing basis, the age of facilities of our Chemical Business increases the risk for unplanned downtime which may be significant.

Our Chemical Business is comprised of operating units of various ages and levels of automated control. While we have continued to make significant annual capital improvements, potential age or control related issues have occurred in the past and may occur in the future, which could cause damage to the equipment and ancillary facilities. For example, during 2013 and the first quarter of 2014, certain of our chemical facilities had planned and unplanned downtime as a result of certain maintenance and equipment issues. It is customary when performing major equipment replacements at a facility for there to be subsequent unplanned downtime in order to ensure the facility is running at appropriate operating conditions. As a result, we have and may continue to experience additional downtime at our chemical facilities in the future.

The equipment required for the manufacture of our chemical products is specialized, and the time for replacement of such equipment can be lengthy, resulting in extended downtime in the affected unit. Although we utilize various reliability and inspection programs and maintain a significant inventory of spare equipment, which are intended to mitigate the extent of production losses, unplanned outages may still occur. As a result, these planned and unplanned downtime events at our chemical facilities have in the past and could in the future adversely impact our operating results, liquidity and financial condition.

Current and future legislative or regulatory requirements impacting our Chemical Business may result in increased costs and decreased revenues, cash flows and liquidity or could have other negative impacts on our Chemical Business.

Our businesses are subject to numerous health, safety, security and environmental laws and regulations, primarily relating to our Chemical Business. The manufacture and distribution of chemical products are activities which entail health, safety and environmental risks and impose obligations under health, safety and environmental laws and regulations, many of which provide for substantial fines and potential criminal sanctions for violations. Although we believe we have established processes to monitor, review and manage our businesses to comply with the numerous health, safety and environmental laws and regulations, our Chemical Business has in the past, and may in the future, be subject to fines, penalties and sanctions for violations and substantial expenditures for cleanup costs and other liabilities relating to the handling, manufacture, use, emission, discharge or disposal of effluents at or from the Chemical Business’ facilities. Further, a number of our Chemical Business’ facilities are dependent on environmental permits to operate, the loss or modification of which could have a material adverse effect on their operations and our financial condition.

Changes to the production equipment at our chemical facilities as may be required in order to comply with health, safety and environmental regulations may require substantial capital expenditures.

Explosions and/or losses at other chemical facilities not owned by us could also result in new or additional legislation or regulatory changes, particularly relating to public health and safety, that could negatively impact our Chemical Business. In summary, new or changed laws and regulations could have an adverse effect on our operating results, liquidity and financial condition.

We may be required to modify or expand our operating, sales and reporting procedures and install additional equipment for our Chemical Business in order to comply with current and possible future government regulations.

The chemical industry in general, and producers and distributors of anhydrous ammonia and AN specifically, are scrutinized by the government, industry and public on security issues. Under current and proposed regulations, we may be required to incur substantial additional costs relating to security at our chemical facilities and distribution centers, as well as in the transportation of our products. These costs could have a material impact on our financial condition, results of operations, and liquidity. The cost of such regulatory changes, if significant enough, could lead some of our customers to choose alternate products to anhydrous ammonia and AN, which would have a significant impact on our Chemical Business.

In order to comply with the “Secure Handling of Ammonium Nitrate Act of 2007” as enacted by the U.S. Congress, the U.S. Department of Homeland Security (“DHS”) has published in the August 3, 2011 Federal Register a Notice of Proposed Rulemaking. This regulation proposes to require sellers, buyers, their agents and transporters of solid AN and certain solid mixtures containing AN to possess a valid registration issued by DHS, keep certain records, report the theft or unexplained loss of regulated materials and certain other new requirements. We and other parties affected by this proposal have submitted appropriate comments to DHS regarding the proposed regulation. Depending on the provisions of the final regulation to be promulgated by DHS and on our ability to pass these costs to our customers, these requirements may have a negative effect on the profitability of our AN business and may result in fewer distributors who are willing to handle the product. It is reasonably possible that compliance with the final regulation may be required during 2014.

 

13

---

Table of Contents

On August 1, 2013, the Obama Administration issued Executive Order 13650 addressing the safety and security of chemical facilities in response to recent incidents involving chemicals such as the April 2013 explosion at West, Texas. The Obama Administration is directing federal agencies to enhance existing regulations and make recommendations to the U.S. Congress to develop new laws that may affect our Chemical Business.

Proposed governmental laws and regulations relating to greenhouse gas emissions may subject certain of our Chemical Business’ facilities to significant new costs and restrictions on their operations and reduction in sales.

The manufacturing facilities within our Chemical Business use significant amounts of electricity, natural gas and other raw materials necessary for the production of their chemical products that result, or could result, in certain greenhouse gas emissions into the environment. Federal and state courts and administrative agencies, including the EPA, are considering the scope and scale of greenhouse gas emission regulation. Legislation is being considered that would regulate greenhouse gas emissions at some point in the future for our facilities and has already impacted certain of our customers leading to closure or rate reductions of certain facilities. The EPA has instituted a mandatory greenhouse gas reporting requirement that began in 2010, which impacts all of our chemical manufacturing sites. Greenhouse gas regulation could increase the price of the electricity and other energy sources purchased by our chemical facilities; increase costs for natural gas and other raw materials (such as anhydrous ammonia); potentially restrict access to or the use of certain raw materials necessary to produce our chemical products; and require us to incur substantial expenditures to retrofit our chemical facilities to comply with the proposed new laws and regulations regulating greenhouse gas emissions, if adopted. Federal, state and local governments may also pass laws mandating the use of alternative energy sources, such as wind power and solar energy, which may increase the cost of energy use in certain of our chemical and other manufacturing operations. As it relates to our Chemical Business’ working interest in natural gas properties, legislative and regulatory proposals for restricting greenhouse gas emissions or otherwise addressing climate change could require our Chemical Business to incur additional operating costs and could adversely affect demand for the natural gas that the operator of these wells intends to sell. While future emission regulations or new laws appear possible, it is difficult to predict how these regulations, if and when adopted, will affect our businesses, operations, liquidity or financial results.

There is intense competition in the Climate Control and Chemical industries.

Substantially all of the markets in which we participate are highly competitive with respect to product quality, price, design innovations, distribution, service, warranties, reliability and efficiency. We compete with a number of companies, domestic and foreign, that have greater financial, marketing and other resources. Competitive factors could require us to reduce prices or increase spending on product development, marketing and sales that would have a material adverse effect on our business, results of operation and financial condition.

A substantial portion of our sales is dependent upon a limited number of customers.

For 2013, six customers of our Chemical Business accounted for approximately 50% of its net sales and 28% of our consolidated net sales, and our Climate Control Business had one customer, Carrier Corporation (“Carrier”), including affiliates and their distributors, that accounted for approximately 15% of its net sales and 6% of our consolidated net sales. During the latter part of 2013, Carrier Corporation (“Carrier”) advised our Climate Control Business that effective May 11, 2014, that Carrier will not be renewing the contracts to purchase heat pumps from our Climate Control Business. During 2013, net sales of heat pumps to Carrier represented approximately 5% of our 2013 consolidated net sales. The loss of, or a material reduction in purchase levels by, one or more of these customers could have a material adverse effect on our business and our results of operations, financial condition and liquidity if we are unable to replace a customer with other sales on substantially similar terms.

Cost and the lack of availability of raw materials could materially affect our profitability and liquidity.

Our sales and profits are heavily affected by the costs and availability of primary raw materials. These primary raw materials are subject to considerable price volatility. Historically, when there have been rapid increases in the cost of these primary raw materials, we have sometimes been unable to timely increase our sales prices to cover all of the higher costs incurred. While we periodically enter into futures/forward contracts to economically hedge against price increases in certain of these raw materials, there can be no assurance that we will effectively manage against price fluctuations in those raw materials.

Anhydrous ammonia and natural gas represent the primary raw material feedstocks in the production of most of the products of the Chemical Business. Although our Chemical Business enters into contracts with certain customers that provide for the pass-through of raw material costs, we have a substantial amount of sales that do not provide for the pass-through of raw material costs. In addition, the Climate Control Business depends on raw materials such as copper and steel, which have shown considerable price volatility. As a result, in the future, we may not be able to pass along to all of our customers the full amount of any increases in raw material costs. There can be no assurance that future price fluctuations in our raw materials will not have an adverse effect on our financial condition, liquidity and results of operations.

As stated above, natural gas represents one of the primary raw materials in the production of our Chemical Business’ products, and, as a result, we acquired natural gas working interests as an economic hedge against rising prices for natural gas. Our natural gas working interests may not be effective as an economic hedge under certain limited conditions.

 

14

---

Table of Contents

We do not operate our natural gas working interest properties and have no, or very limited, ability to exercise influence over operations of these properties or their associated cost.

Since we source certain of our raw materials and components on a global basis, we may experience long lead times in procuring those raw materials and components purchased overseas, as well as being subject to tariff controls and other international trade barriers, which may increase the uncertainty of raw material and component availability and pricing volatility.

Additionally, we depend on certain vendors to deliver the primary raw materials and other key components that are required in the production of our products. Any disruption in the supply of the primary raw materials and other key components could result in lost production or delayed shipments. We have suspended in the past, and could suspend in the future, production at our chemical facilities due to, among other things, the high cost or lack of availability of such primary raw materials, which could adversely impact our competitiveness in the markets we serve. Accordingly, our financial condition, liquidity and results of operations could be materially affected in the future by the lack of availability of primary raw materials and other key components and increase costs relating to the purchase of raw materials or the production of our natural gas working interests.

Potential increase of imported agricultural products.

Russia and Ukraine both have substantial capacity to produce and export fertilizer grade ammonium nitrate (“AN”). Producers in these countries also benefit from below-market prices for natural gas, due to Government regulation and other factors. Fertilizer grade AN imports from Russia and Ukraine are currently subject to U.S. antidumping duty orders, which require these imports to be sold in the U.S. market at a fair value. Currently, all imports of fertilizer grade AN from Russia are subject to an antidumping duty rate of 254% and all imports of fertilizer grade AN from Ukraine are subject to an antidumping duty rate of 156%. The antidumping orders have substantially restrained the volumes of these imports. We have been recently notified that the U.S. Department of Commerce (“Commerce”) has refused to investigate whether these Russian producers were acquiring natural gas produced in Russia below cost levels. These two Russian ammonium nitrate producers are currently undergoing legal processes in which they are seeking to reduce the duty rates applied to their ammonium nitrate exports to the United States, and this decision by Commerce could possibly result in much lower duty rates in the near future. If the anti-dumping duty rates applied to the Russian AN producers were to be significantly lowered, we could likely face much higher volumes of Russian and Ukrainian fertilizer grade AN in the U.S. possibly priced below our current cost to produce fertilizer grade AN. In addition, producers in China have substantial capacity to produce and export urea. Depending on various factors, including prevailing prices from other exporters, the price of coal, and the price of China’s export tariff, higher volumes of urea from China could be imported into the U.S. at prices that have and could have an adverse effect on the selling prices of other nitrogen products, including the nitrogen products we manufacture and sell.

We may have inadequate insurance.

While we maintain liability, property and business interruption insurance, including certain coverage for environmental contamination, it is subject to coverage limits and policies may exclude coverage for some types of damages (which may include warranty claims). Although there may currently be sources from which such coverage may be obtained, it may not continue to be available to us on commercially reasonable terms or the possible types of liabilities that may be incurred by us may not be covered by our insurance. In addition, our insurance carriers may not be able to meet their obligations under the policies or the dollar amount of the liabilities may exceed our policy limits. Even a partially uninsured claim, if successful and of significant magnitude, could have a material adverse effect on our business, results of operations, financial condition and liquidity.

Loss of key personnel could negatively affect our business.

We believe that our performance has been and will continue to be dependent upon the efforts of our principal executive officers. We cannot promise that our principal executive officers will continue to be available. Jack E. Golsen has an employment agreement with us. No other principal executive has an employment agreement with us. The loss of some of our principal executive officers could have a material adverse effect on us. We believe that our future success will depend in large part on our continued ability to attract and retain highly skilled and qualified personnel.

Terrorist attacks and other acts of violence or war, and natural disasters (such as hurricanes, pandemic health crisis, etc.), have negatively impacted and could negatively impact U.S. and foreign companies, the financial markets, the industries where we operate, our operations and profitability.

Terrorist attacks and natural disasters (such as hurricanes) have in the past negatively impacted, and can in the future negatively affect our operations. We cannot predict further terrorist attacks and natural disasters in the U.S. and elsewhere. These attacks or natural disasters have contributed to economic instability in the U.S. and elsewhere, and further acts of terrorism, violence, war or natural disasters could further affect the industries where we operate, our ability to purchase raw materials, our business, results of operations and financial condition. In addition, terrorist attacks and natural disasters may directly impact our physical facilities, especially our chemical facilities, or those of our suppliers or customers and could impact our sales, our production capability and our ability to deliver products to our customers. In the past, hurricanes affecting the Gulf Coast of the U.S. have negatively impacted our operations and those of our customers. The consequences of any terrorist attacks or hostilities or natural disasters are unpredictable, and we may not be able to foresee events that could have an adverse effect on our operations.

 

15

---

Table of Contents

We are currently effectively controlled by the Golsen Group

Jack E. Golsen, our Chairman of the Board of Directors (the “Board of Directors”) and Chief Executive Officer (“CEO”), members of his immediate family, including Barry H. Golsen, our Vice Chairman and President, entities owned by them and trusts for which they possess voting or dispositive power as trustee (collectively, the “Golsen Group”) owned as of February 14, 2014, an aggregate of 2,916,464 shares of our common stock and 1,020,000 shares of our voting preferred stock (1,000,000 of which shares have .875 votes per share, or 875,000 votes), which together votes as a class and represents approximately 16% of the voting power (prior to conversion of the shares of voting preferred) of our issued and outstanding voting securities as of that date. The series of preferred represented by the 20,000 shares of voting preferred is convertible into an aggregate of 666,666 shares of our common stock. Thus, the Golsen Group may be considered to effectively control us. As a result, the ability of other stockholders to influence our management and policies could be limited.

We have not paid dividends on our outstanding common stock in many years.

Although we have paid dividends on our outstanding series of preferred stock (two of the three outstanding series of preferred stock are owned by the Golsen Group), in the past we have not paid cash dividends on our outstanding common stock in many years, and we do not currently anticipate paying cash dividends on our outstanding common stock in the near future. However, our Board of Directors has not made a decision whether or not to pay such dividends on our common stock in 2014. In addition, there are certain limitations contained in our loan agreements, which limit our subsidiaries from up streaming funds to LSB that may limit our ability to pay dividends on our outstanding common stock.

Future issuance or potential issuance of our common stock could adversely affect the price of our common stock, our ability to raise funds in new stock offerings and could dilute the percentage ownership of our common stockholders.

Future sales of substantial amounts of our common stock or equity-related securities in the public market, or the issuance of a substantial amount of our common stock as the result of conversion of our outstanding convertible preferred stocks, or the perception that such sales or conversions could occur, could adversely affect prevailing trading prices of our common stock and could dilute the value of common stock held by our existing stockholders. No prediction can be made as to the effect, if any, that future sales of, or conversions of our outstanding preferred stocks into, shares of common stock or the availability of shares of common stock for future sale will have on the trading price of our common stock. Such future sales or conversions could also significantly reduce the percentage ownership of our common stockholders.

We are subject to a variety of factors that could discourage other parties from attempting to acquire us.

Our certificate of incorporation provides for a staggered Board of Directors and, except in limited circumstances, a two-thirds vote of outstanding voting shares to approve a merger, consolidation or sale of all, or substantially all, of our assets. In addition, we have entered into severance agreements with our executive officers and some of the executive officers of certain subsidiaries that provide, among other things, that if, within a specified period of time after the occurrence of a change in control of LSB, these officers are terminated, other than for cause, or the officer terminates his employment for good reason, we must pay such officer an amount equal to 2.9 times the officer’s average annual gross salary for the last five years preceding the change in control.

We have authorized and unissued (including shares held in treasury) 52,473,992 shares of common stock and 4,230,000 shares of preferred stock as of December 31, 2013. These unissued shares could be used by our management to make it more difficult, and thereby discourage an attempt to acquire control of us.

We have adopted a preferred share purchase plan, which is designed to protect us against certain creeping acquisitions, open market purchases and certain mergers and other combinations with acquiring companies.

The foregoing provisions and agreements are designed to discourage a third party tender offer, proxy contest, or other attempts to acquire control of us and could have the effect of making it more difficult to remove incumbent management.

Delaware has adopted an anti-takeover law which, among other things, will delay for three years business combinations with acquirers of 15% or more of the outstanding voting stock of publicly-held companies (such as us), unless:

 

•

prior to such time the Board of Directors of the corporation approved the business combination that results in the stockholder becoming an invested stockholder;

 

16

---

Table of Contents

•

the acquirer owned at least 85% of the outstanding voting stock of such company prior to commencement of the transaction;

 

•

two-thirds of the stockholders, other than the acquirer, vote to approve the business combination after approval thereof by the Board of Directors; or

 

•

the stockholders of the corporation amend its articles of incorporation or by-laws electing not to be governed by this provision

Risk Factors Related to the Notes and the Collateral

Our substantial level of indebtedness could limit our financial and operating activities, and adversely affect our ability to incur additional debt to fund future needs.

At December 31, 2013, we had approximately $463.0 million of total indebtedness outstanding, including $425.0 million under the Notes, approximately $29.6 million of secured indebtedness under Zena Energy, L.L.C.’s Secured Promissory Note, approximately $4.8 million of secured indebtedness under Chemical Properties, L.L.C.’s Secured Equipment Note and approximately $3.6 million of other indebtedness, substantially all of which is secured. Additionally, at December 31, 2013, we had approximately $67.0 million available for borrowing under our ABL Revolver Loan, which is secured on a first-priority basis by the assets that will secure the Notes on a second-priority basis. This substantial amount of indebtedness could:

 

•

require us to dedicate a substantial portion of our cash flow to the payment of principal and interest, thereby reducing the funds available for operations and future business opportunities;

 

•

make it more difficult for us to satisfy our obligations with respect to the Notes, including our repurchase obligations;

 

•

limit our ability to borrow additional money if needed for other purposes, including working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes, on satisfactory terms or at all;

 

•

limit our ability to adjust to changing economic, business and competitive conditions;

 

•

place us at a competitive disadvantage with competitors who may have less indebtedness or greater access to financing;

 

•

make us more vulnerable to an increase in interest rates, a downturn in our operating performance or a decline in general economic conditions; and

 

•

make us more susceptible to changes in credit ratings, which could impact our ability to obtain financing in the future and increase the cost of such financing.

Any of the foregoing could adversely impact our operating results, financial condition, and liquidity.

The Notes will be structurally subordinated to all of the existing and future liabilities, including trade payables, of any subsidiaries in the future that do not become guarantors of the Notes.

The Notes will initially be fully and unconditionally guaranteed on a senior secured basis by all of our subsidiaries (other than the unsecured guarantors, each of which guarantees the Notes on a senior unsecured basis), but there may be subsidiaries in the future that do not guarantee the Notes. The Notes would be structurally subordinated to all of the liabilities, including trade payables, of any future non-guarantor subsidiary such that, in the event of an insolvency, liquidation, reorganization, dissolution or other winding up of any such subsidiary, all of such subsidiary’s creditors (including trade creditors and preferred stockholders, if any) would be entitled to payment in full out of such subsidiary’s assets before the holders of the Notes would be entitled to any payment.

In addition, the indenture governing the Notes, subject to some limitations, permits these future non-guarantor subsidiaries that do not guarantee the Notes to incur additional indebtedness and will not contain any limitation on the amount of other liabilities, such as trade payables, that may be incurred by these subsidiaries.

At December 31, 2013, LSB had approximately $428.6 million of total indebtedness outstanding, consisting primarily of the Notes, and the guarantors had approximately $34.4 million of total indebtedness outstanding (excluding guarantees of the Notes), substantially all of which is secured. Additionally, at December 31, 2013, on such basis, the guarantors had approximately $67.0 million of secured debt available for borrowing as additional senior secured debt under our ABL Revolver Loan.

The indenture governing the Notes also permits us to designate certain of our subsidiaries as unrestricted subsidiaries, which subsidiaries’ guarantees and liens would be released upon such designation and such subsidiaries would not be subject to the restrictive covenants in the indenture governing the Notes. These actions could be detrimental to our ability to make payments when due and to comply with our other obligations under the Notes, and could reduce the amount of our assets that would be available to satisfy your claims should we default on the Notes. In addition, the initiation of bankruptcy or insolvency proceedings or the entering of a judgment against these unrestricted subsidiaries, or their default under their other credit arrangements, will not result in a cross acceleration of the Notes.

Under certain circumstances, subsidiary guarantees may be released.

Those subsidiaries that provide, or will provide, guarantees of the Notes will be released from such guarantees upon the occurrence of certain events, including the following:

 

•

the designation of such guarantor as an unrestricted subsidiary (as defined in the indenture governing the Notes);

 

17

---

Table of Contents

•

the release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Notes by such guarantor;

 

•

the sale or other disposition, including by way of merger or otherwise, the sale of its capital stock or the sale of all or substantially all of the assets, of such guarantor; or

 

•

the Company’s exercise of its legal defeasance option or its covenant defeasance option as described in the indenture.

If any such subsidiary guarantee is released, no holder of the Notes will have a claim as a creditor against any such subsidiary and the indebtedness and other liabilities, including trade payables and preferred stock, if any, whether secured or unsecured, of such subsidiary will be effectively senior to the claim of any holders of the Notes. See “Description of Notes — Guarantees” and “Description of Notes — Future Guarantors.”

The terms of our ABL Revolver Loan and the indenture governing the Notes include covenants that could restrict or limit our financial and business operations.

The ABL Revolver Loan contains covenants that, among other things, limit the Borrowers’ ability, without consent of the lender and with certain exceptions, to:

 

•

incur additional indebtedness;

 

•

create liens on, sell or otherwise dispose of our assets;

 

•

incur additional indebtedness;

 

•

create liens on, sell or otherwise dispose of our assets;

 

•

engage in certain fundamental corporate changes or changes to our business activities;

 

•

make certain material acquisitions;

 

•

make other restricted payments, including investments;

 

•

repay certain indebtedness;

 

•

engage in certain affiliate transactions;

 

•

declare dividends and distributions;

 

•

engage in mergers, consolidations or other forms of recapitalization; or

 

•

dispose of assets.

The ABL Revolver Loan allows the Borrowers and subsidiaries under the Notes to guarantee the Notes.

So long as both immediately before and after giving effect to any of the following, excess availability as defined by the ABL Revolver Loan is equal to or greater than the greater of (x) 20% of the maximum revolver commitment or (y) $20 million, the ABL Revolver Loan will allow each of the Borrowers under the ABL Revolver Loan to make:

 

•

distributions and pay dividends by LSB with respect to amounts in excess of $0.5 million during each fiscal year;

 

•

acquisitions of treasury stock by LSB with respect to amounts in excess of $0.5 million during each fiscal year;

 

•

certain hedging agreements;

 

•

investments in joint ventures and certain subsidiaries of LSB in an aggregate amount not exceeding $35.0 million; and

 

•

other investments in an aggregate amount not exceeding $50.0 million at any one time outstanding.

These covenants and restrictions could affect our ability to operate our business, and may limit our ability to react to market conditions or take advantage of potential business opportunities as they arise. Additionally, our ability to comply with these covenants may be affected by events beyond our control, including general economic and credit conditions and industry downturns.

If we fail to comply with the covenants in our ABL Revolver Loan and are unable to obtain a waiver or amendment, an event of default would result, and the lenders could, among other things, declare outstanding amounts due and payable, refuse to lend additional amounts to us, and require deposit of cash collateral in respect of outstanding letters of credit. If we were unable to repay or pay the amounts due, the lenders could, among other things, proceed against the collateral granted to them to secure such indebtedness, which includes equity interests of certain of our domestic and foreign subsidiaries.

Our cash flows may not be sufficient to service our indebtedness, and if we are unable to satisfy our obligations under our indebtedness, we may be required to seek other financing alternatives, which may not be successful.

Our ability to make timely payments of principal and interest on our debt obligations depends on our ability to generate positive cash flows from operations, which is subject to general economic conditions, competitive pressures and certain financial, business and other factors beyond our control. We may not be able to maintain a level of cash flow from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness.

 

18

---

Table of Contents

If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be required to seek additional financing sources, reduce or delay capital expenditures, sell assets or operations or restructure or refinance our indebtedness, including the Notes. These actions could have a material adverse effect on our business, financial condition and results of operations. In addition, we may not be able to take any of these actions, and, even if successful, these actions may not permit us to meet our scheduled debt service obligations. Furthermore, we may not be able to consummate these asset sales to raise capital or sell assets at prices and on terms that we believe are fair and any proceeds that we do receive may not be adequate to meet any debt service obligations then due. See “Description of Other Indebtedness” and “Description of Notes — Limitation on Asset Sales”. There can be no assurance that we will be able to restructure or refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot make scheduled payments on our debt, we will be in default and the outstanding principal and interest on our debt could be declared to be due and payable, in which case we could be forced into bankruptcy or liquidation or required to substantially restructure or alter our business operations or debt obligations. In such an event, we may not have sufficient assets to repay all of our debt.

Despite our current levels of debt, we may still incur substantially more debt ranking senior or equal in right of payment with the Notes, including secured debt, which would increase the risks described herein.

The agreements relating to our debt, including the Notes and our ABL Revolver Loan, limit but do not prohibit our ability to incur additional debt, including additional secured debt, and the amount of debt that we could incur could be substantial. Although the indenture governing the Notes and the credit agreement governing our ABL Revolver Loan will contain restrictions on the incurrence of additional indebtedness and liens, these restrictions are subject to a number of important qualifications and exceptions, and the additional indebtedness and liens incurred in compliance with these restrictions could be substantial. Accordingly, we could incur significant additional debt in the future, including additional debt under our ABL Revolver Loan and under the indenture governing the Notes which will permit us to incur certain additional secured debt, including debt that shares in the Collateral (and debt that has priority to the Notes in certain Collateral). At December 31, 2013, we had approximately $67.0 million of secured debt available for borrowing as additional senior secured debt under our ABL Revolver Loan, subject to certain conditions, including compliance with certain financial covenants. In addition, if we form or acquire any subsidiaries in the future, those subsidiaries also could incur debt, which debt would be effectively senior to the Notes if those subsidiaries are not required to guarantee the Notes. If new debt is added to our current debt levels, the related risks that we now face could intensify.

In addition, certain types of liabilities are not considered “Indebtedness” under the indenture governing the Notes, and the indenture governing the Notes does not impose any limitation on the amount of liabilities incurred that would be structurally senior to the Notes by the subsidiaries, if any, that might be designated as “unrestricted subsidiaries” (as defined in the indenture governing the Notes). See “Description of Notes — Certain Covenants — Limitation on Incurrence of Additional Indebtedness.” Those unrestricted subsidiaries will not be subject to many of the restrictive covenants in the indenture and therefore will be able to incur indebtedness beyond the limitations specified in the indenture and engage in other activities in which restricted subsidiaries may not engage. If we incur any additional indebtedness that ranks equally with the Notes, including any additional notes, the holders of that debt will be entitled to share ratably with you in any proceeds distributed in connection with any insolvency, liquidation, reorganization, dissolution or other winding up of our company. This may have the effect of reducing the amount of proceeds paid to you.

The issuer is a holding company, and therefore its ability to repay its indebtedness, including the Notes, is dependent on cash flow generated by its subsidiaries and their ability to make distributions to the issuer.

The issuer is a holding company with no significant operations or material assets other than the equity interests it holds in its subsidiaries. The issuer conducts all of its business operations through its subsidiaries. As a result, its ability to pay principal and interest on its indebtedness, including the Notes, is dependent on the generation of cash flow by its subsidiaries and their ability to make such cash available to the issuer, by dividend or otherwise.

The earnings of the issuer’s subsidiaries will depend on their financial and operating performance, which will be affected by general economic, industry, financial, competitive, operating, and other factors beyond our control. Unless they are guarantors of the Notes, the issuer’s subsidiaries do not have any obligations to pay amounts due on the Notes or to make funds available for that purpose. While all of the issuer’s existing subsidiaries will initially guarantee the Notes on a senior secured basis (other than the unsecured guarantors, each of which guarantee the Notes on a senior unsecured basis), such guarantees could be rendered unenforceable for the reasons described below under “— Federal and state statutes could allow a court to void the Notes or any of our subsidiaries’ guarantees of the Notes under fraudulent transfer laws and require noteholders to return payments received by the issuer or the guarantors to the issuer or the guarantors or to a fund for the benefit of their respective creditors or subordinate the Notes or the guarantees to other claims of the issuer or the guarantors.” If such guarantees were rendered unenforceable, the holders of the Notes would lose their direct claim against the entities holding substantially all of our operating assets. In addition, in the event of insolvency, liquidation, reorganization, dissolution or other winding up of any of the issuer’s subsidiaries who are not guarantors, all of such subsidiary’s creditors would be entitled to payment in full out of such subsidiary’s assets before the holders of the Notes would be entitled to any payment. Each of the issuer’s subsidiaries is a separate and distinct legal entity and, under certain circumstances, legal and contractual restrictions, as well as the financial condition and operating requirements of the issuer’s subsidiaries, may limit the issuer’s ability to obtain cash from its subsidiaries. While the indenture that will govern the Notes will limit the ability of certain of the issuer’s subsidiaries to incur consensual restrictions on their ability to pay dividends or make other intercompany payments to the issuer, these limitations are subject to certain qualifications and exceptions. Any payments of dividends, distributions, loans or advances to the issuer by its subsidiaries could also be subject to taxes or restrictions on dividends or transfers under applicable local law in the jurisdictions in which its subsidiaries operate.

 

19

---

Table of Contents

If the issuer does not receive distributions from its subsidiaries, or to the extent that the earnings from, or other available assets of, its subsidiaries are insufficient, the issuer may be unable to make required principal and interest payments on its indebtedness, including the Notes.

If we cannot make scheduled payments on our indebtedness, we could be in default under the terms of the agreements that will govern such indebtedness, including the ABL Revolver Loan and the indenture that will govern the Notes. In the event of such default, the holders of such indebtedness could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest, the lenders under the ABL Revolver Loan could elect to terminate their commitments thereunder, cease making further loans and institute foreclosure proceedings against the assets securing their loans, and we could be forced into bankruptcy or liquidation, which could result in you losing your investment in the Notes.

Borrowings under our ABL Revolver Loan bear interest at a variable rate, which subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

All of our borrowings under our ABL Revolver Loan are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on this variable rate indebtedness would increase even though the amount borrowed remained the same. Although we may enter into interest rate swaps to reduce interest rate volatility, we cannot provide assurances that we will be able to do so or that such swaps will be effective.

There is no public market for the Notes, and we do not know if a market will ever develop or, if a market does develop, whether it will be sustained.

There is no active public trading market for the Notes. We do not intend to apply for listing of the Notes on a security exchange or to arrange for any quotation on any automated dealer quotation systems. Although the initial purchasers informed us in connection with the issuance of the old notes that they intend to make a market in the Notes, they are not obligated to do so and they may discontinue market-making activities at any time without notice. As a consequence, an active trading market may not develop for the Notes, you may not be able to sell the Notes, or, even if you can sell the Notes, you may not be able to sell them at an acceptable price.

Historically, the market for non-investment grade debt has been subject to disruptions that have caused substantial volatility in the prices of securities similar to the Notes. The market, if any, for the Notes may experience similar disruptions and any such disruptions may adversely affect the prices at which you may sell your notes. In addition, subsequent to their initial issuances, the Notes may trade at discounts from their initial offering prices, depending upon prevailing interest rates, the market for similar notes, our financial and operating performance and other factors.

Because your right to require repurchase of the Notes is limited, the trading price of the Notes may decline if we enter into a transaction that is not a change in control under the indenture governing the Notes.

The term “change in control” is limited and does not include every event that might cause the trading price of the Notes to decline. Our obligation to repurchase the Notes upon a change in control may not preserve the value of the Notes in the event of a highly leveraged transaction, reorganization, merger or similar transaction. We could engage in many types of transactions, such as acquisitions, refinancings or recapitalizations, that could substantially affect our capital structure and the value of the Notes and our common stock but may not constitute a change in control that permits holders to require us to repurchase their notes. See “Description of Notes — Change of Control.”

We may not be able to raise the funds necessary to finance a change in control purchase.

Upon the occurrence of a change in control under the indenture governing the Notes, holders of the Notes may require us to purchase their Notes. However, it is possible that we would not have sufficient funds at that time to make the required purchase of the Notes. We cannot assure you that we will have sufficient financial resources, or will be able to arrange financing, to pay the repurchase price in cash with respect to any Notes tendered by holders for repurchase upon a change in control. Our failure to repurchase the Notes when required would result in an event of default with respect to the Notes which could, in turn, constitute a default under the terms of our other indebtedness. Important corporate events may not constitute a change in control under the indenture governing the Notes. See “Description of Notes — Change of Control.”

The ability of holders of Notes to require us to repurchase Notes as a result of a disposition of “substantially all” of our assets may be uncertain.

The definition of change of control in the indenture governing the Notes includes a phrase relating to the sale of “all or substantially all” of our assets. Although there is a limited body of case law interpreting the phrase “substantially all,” there is no precise established definition of such phrase under applicable law. Accordingly, the ability of a holder of notes to require us to repurchase its notes as a result of a sale or other disposition of less than all of our assets to another person or group may be uncertain.

If we default on our obligations to pay our other indebtedness, we may not be able to make payments on the Notes.

Any default under the agreements governing our indebtedness, including a default under our ABL Revolver Loan, that is not waived by the required lenders, and the remedies sought by the holders of such indebtedness, could prevent us from paying principal, premium, if any, and interest on the Notes and substantially decrease the market value of the Notes. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on our indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants in the instruments governing our indebtedness (including covenants in our ABL Revolver Loan and the indenture that governs the Notes), we could be in default under the terms of the agreements governing such indebtedness, including our ABL Revolver Loan and the indenture governing the Notes. In the event of such default,

 

20

---

Table of Contents

•

the holders of such indebtedness may be able to cause all of our available cash flow to be used to pay such indebtedness and, in any event, could elect to declare all the funds borrowed thereunder to be due and payable, together with accrued and unpaid interest;

 

•

the lenders under our ABL Revolver Loan could elect to terminate their commitments thereunder, cease making further loans and institute foreclosure proceedings against our assets; and

 

•

we could be forced into bankruptcy or liquidation.

If a bankruptcy case were to be commenced under Title 11 of the United States Code (the “Bankruptcy Code”). we could be subject to claims, with respect to any payments made within 90 days prior to commencement of such a case, that we were insolvent at the time any such payments were made and that all or a portion of such payments, which could include repayments of amounts due under the Notes, might be deemed to constitute a preference, under the Bankruptcy Code, and that such payments should be voided by the bankruptcy court and recovered from the recipients for the benefit of the entire bankruptcy estate. Also, in the event that we were to become a debtor in a bankruptcy case seeking reorganization or other relief under the Bankruptcy Code, a delay and/or substantial reduction in payment under the Notes may otherwise occur. If our operating performance declines, we may in the future need to obtain waivers from the required lenders under our ABL Revolver Loan to avoid being in default. If we breach our covenants under our ABL Revolver Loan and seek a waiver, we may not be able to obtain a waiver from the required lenders. If this occurs, we would be in default under our ABL Revolver Loan, the lenders could exercise their rights, as described above, and we could be forced into bankruptcy or liquidation.

A lowering or withdrawal of the ratings assigned to our debt securities by rating agencies may increase our future borrowing costs and reduce our access to capital.

Any rating assigned to our debt could be lowered or withdrawn entirely by a rating agency if, in that rating agency’s judgment, future circumstances relating to the basis of the rating, such as adverse changes, so warrant. Consequently, real or anticipated changes in our credit rating will generally affect the market value of the Notes. Credit ratings are not recommendations to purchase, hold or sell the Notes. Additionally, credit ratings may not reflect the potential effect of risks relating to the structure or marketing of the Notes. Any future lowering of our ratings likely would make it more difficult or more expensive for us to obtain additional debt financing. If any credit rating initially assigned to the Notes is subsequently lowered or withdrawn for any reason, you may not be able to resell your notes without a substantial discount or at all.

The Notes will be secured by liens on the ABL Priority Collateral that will be second in priority to the liens securing the ABL Revolver Loan and any other first-priority lien obligations, and there may not be sufficient Collateral to satisfy all our obligations under the Notes.

The Notes and guarantees (other than the unsecured guarantees) will be secured by second-priority liens (subject to certain exceptions described in “Description of Notes”) on the ABL Priority Collateral. The ABL Priority Collateral is subject to a first-priority security interest for the benefit of the lenders and certain other parties under the ABL Revolver Loan and related agreements, including certain hedging and cash management obligations. The indenture governing the Notes also permits us to incur additional indebtedness secured on a basis prior to the Notes by the ABL Priority Collateral in the future. The borrowings under our ABL Revolver Loan and any such future indebtedness are higher in priority as to the ABL Priority Collateral than the security interests on the same Collateral securing the Notes and the guarantees. Under the terms of intercreditor agreement and the security documents, the proceeds of any collection, sale, disposition or other realization in connection with the exercise of remedies (including distributions of cash, securities or other property on account of the value of such Collateral in a bankruptcy, insolvency, reorganization or similar proceedings) with respect to the ABL Priority Collateral will be applied first to repay any amounts due under the ABL Revolver Loan and other first-priority lien obligations, including any post-petition interest with respect thereto, certain hedging obligations relating to obligations under the ABL Revolver Loan and certain cash management obligations of ours and the guarantors owed to the lenders under the ABL Revolver Loan before the holders of the Notes receive any proceeds from the ABL Priority Collateral. Thus, the Notes and the guarantees will be effectively subordinated to the issuer’s and the guarantors’ indebtedness under the ABL Revolver Loan and other first-priority lien obligations, as well as certain hedging and cash management obligations, with respect to the ABL Priority Collateral.

The rights of holders of the Notes with respect to the ABL Priority Collateral will be substantially limited by the terms of the intercreditor agreement.

Under the terms of the intercreditor agreement entered into with the collateral agent under the ABL Revolver Loan, at any time that obligations that have the benefit of the first-priority liens on the ABL Priority Collateral are outstanding, any actions that may be taken in respect of the ABL Priority Collateral, including the ability to cause the commencement of enforcement proceedings against the ABL Priority Collateral and to control the conduct of such proceedings, and the approval of amendments to, releases of ABL Priority Collateral from the lien of, and waivers of past defaults under, the security documents, will be at the direction of the holders of the obligations secured by the first-priority liens, including the ABL Revolver Loan, and neither the Trustee nor the collateral agent, on behalf of the holders of the Notes, will have the ability to control or to direct such actions, even if the rights of the holders of the Notes are adversely affected, subject to certain exceptions. See “Description of Notes — Security for the Notes.”

 

21

---

Table of Contents

Under the terms of the intercreditor agreement, at any time that obligations that have the benefit of the first-priority liens on the ABL Priority Collateral are outstanding, if the holders of such indebtedness release such Collateral for any reason whatsoever (except the termination of the ABL Revolver Loan), including, in connection with any sale of assets, the second-priority security interest in such ABL Priority Collateral securing the Notes will be automatically and simultaneously released without any consent or action by the holders of the Notes, subject to certain exceptions. The ABL Priority Collateral so released will no longer secure the issuer’s and the guarantors’ obligations under the Notes.

In addition, because the holders of the indebtedness secured by first-priority liens in the ABL Priority Collateral control the disposition of the ABL Priority Collateral, such holders could decide not to proceed against the ABL Priority Collateral, regardless of whether there is a default under the documents governing such indebtedness or under the indenture governing the Notes. In such an event, subject to certain limited exceptions, the only remedy available to the holders of the Notes would be to sue for payment on the Notes and the related guarantees. The indenture governing the Notes and the intercreditor agreement will contain certain other provisions benefiting the holders of the indebtedness under our ABL Revolver Loan, including provisions prohibiting the collateral agent from objecting, following the filing of a bankruptcy petition, to a number of important matters regarding the ABL Priority Collateral or to certain financings to be provided to us. After such filing, the value of this Collateral could materially deteriorate and holders of the Notes would be unable to raise an objection. In addition, the right of the holders of obligations secured by first-priority liens to foreclose upon and sell such Collateral upon the occurrence of an event of default also would be subject to limitations under applicable bankruptcy laws if we or any of our subsidiaries become subject to a bankruptcy proceeding. In addition, the intercreditor agreement will give the holders of first-priority liens on the ABL Priority Collateral the right to access and to use the Notes Priority Collateral that secures the Notes to allow those holders to protect the ABL Priority Collateral and to process, store and dispose of the ABL Priority Collateral.

In addition, in the event of any insolvency or liquidation proceeding, if the lenders under the ABL Revolver Loan desire to permit the use of cash collateral or to permit any debtor-in-possession (“DIP”) financing, the collateral agent will, subject to certain exceptions, not be permitted to raise any objection to such cash collateral use or DIP financing. The intercreditor agreement limits the right of the collateral agent to seek relief from the “automatic stay” in an insolvency proceeding or to seek or accept “adequate protection” from a bankruptcy court even though such holders’ rights with respect to the Collateral are being affected.

The value of the Collateral is uncertain and may not be sufficient to satisfy our obligations under the Notes, and there may be limitations on your ability to foreclose on the Collateral.

No appraisal of the value of the Collateral has been made in connection with the original issuance of the old notes or this exchange offer, and the value of the Collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. As of December 31, 2013, our property, plant and equipment and inventory was approximately $472.7 million. In addition, as of December 31, 2013, our assets included accounts receivable of approximately $80.6 million, which can fluctuate from period to period depending on orders from our customers and how quickly they pay us and are subject to a lien with priority relative to the Notes.

The fair market value of the Collateral securing the Notes is subject to fluctuations based on factors that include, among others, the condition of the real estate markets and the markets for other forms of Collateral, the ability to sell the Collateral in an orderly sale, general economic conditions, the availability of buyers and similar factors. The book value of our assets may not be indicative of the fair market value of such assets, which could be substantially lower, and a portion of our assets will not constitute Collateral. The amount to be received upon a sale of the Collateral would be dependent on numerous factors, including but not limited to the actual fair market value of the Collateral at such time and the timing and the manner of the sale. By its nature, portions of the Collateral may be illiquid and may have no readily ascertainable market value. Likewise, the Collateral may not be saleable or, if saleable, there may be substantial delays in its liquidation.

To the extent that pre-existing liens, liens permitted under the indenture governing the Notes (including the liens on the ABL Priority Collateral) and other rights, including liens on excluded assets, such as those securing certain purchase money obligations and capital lease obligations granted to other parties (in addition to the holders of obligations secured by first-priority liens), encumber any of the Collateral, those parties have or may exercise rights and remedies with respect to the Collateral that could materially adversely affect the value of the Collateral and the ability of the collateral agent or the holders of the Notes to realize or foreclose on the Collateral. In the event of a foreclosure, liquidation, bankruptcy or similar proceeding, the proceeds from any sale or liquidation of this Collateral may not be sufficient to pay our obligations under the Notes. If the proceeds of any sale of the Collateral were not sufficient to repay all amounts due on the Notes, the holders of the Notes (to the extent their notes were not repaid from the proceeds of the sale of the Collateral) would have only an unsecured claim against our remaining assets.

The security interests in the Collateral also will be subject to practical problems generally associated with the realization of security interests in collateral. For example, the consent of a third party may be required to obtain or enforce a security interest in a contract. We cannot assure you that any such consent could be obtained. We also cannot assure you that the consents of any third parties will be given when and if required to facilitate a foreclosure on such assets. Accordingly, the collateral agent may not have the ability to foreclose upon those assets and the value of the Collateral may be significantly impaired.

 

22

---

Table of Contents

The value of the Collateral securing the Notes may not be sufficient to secure post-petition interest or costs or attorneys’ fees during bankruptcy.

In the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding against us, holders of the Notes will only be entitled to post-petition interest and costs and attorneys’ fees under the bankruptcy code to the extent that the value of their security interest in the Collateral is greater than their pre-bankruptcy claim. Holders of the Notes that have a security interest in the Collateral with a value equal to or less than their pre-bankruptcy claim will not be entitled to post-petition interest and costs and attorneys’ fees under the bankruptcy code. As explained in the preceding risk factor, no appraisal of the fair market value of the Collateral has been prepared in connection with this offering.

We will in most cases have control over the Collateral, and the sale of particular assets by us could reduce the pool of assets securing the Notes.

The security documents generally allow us and the subsidiary guarantors to remain in possession of, to retain exclusive control over, to freely operate and to collect, invest and dispose of any income from, the Collateral securing the Notes. For example, so long as no default or event of default under the agreement governing the ABL Revolver Loan or the indenture governing the Notes would result therefrom, we may, among other things, without any release or consent by the Trustee, conduct ordinary course activities with respect to the Collateral, such as selling, abandoning, or otherwise disposing of the Collateral and making ordinary course cash payments (including repayments of indebtedness). To the extent we sell or take actions that reduce the value of the Collateral, it will reduce the pool of assets securing the Notes and the guarantees. Under certain circumstances we may be required to offer to repurchase the Notes with the proceeds from the sale of our assets. See “Description of Notes — Certain Covenants — Limitation on Asset Sales.”

Certain assets will be excluded from the Collateral.

Certain assets are excluded from the Collateral securing the Notes, as described under “Description of Notes — Security for the Notes,” including, among other things:

 

•

any capital stock of any first-tier foreign subsidiaries in excess of 65% of the voting stock of those foreign subsidiaries, and any capital stock of any foreign subsidiary not directly owned by our company or a guarantor;

 

•

immaterial owned real property and leasehold interests in real property;

 

•

stock and assets of an unrestricted subsidiary;

 

•

items as to which a security interest cannot be granted without violating contract rights or applicable law and certain licenses in which a security interest cannot be created without breach of such license or applicable law;

 

•

vehicles and other assets subject to a certificate of title;

 

•

rolling stock;

 

•

property and assets of Zena;

 

•

with respect to the Notes Priority Collateral, general intangibles (other than those equity interests of each limited liability company, limited partnership, or other business entity that is a Restricted Subsidiary);

 

•

with respect to the Notes Priority Collateral, intellectual property;

 

•

except as expressly provided in the security agreement and related documents, letter of credit rights and commercial tort claims; and

 

•

other assets included in the definition of Excluded Assets. See “Description of Notes — Certain Definitions.”

Moreover, we will not be required to add any asset to the Collateral if the cost and/or burden of taking a security interest in such asset outweighs the benefits to be afforded thereby. If an event of default occurs and the Notes are accelerated, holders of the Notes and the guarantees will rank equally with the holders of other unsubordinated and unsecured indebtedness with respect to such excluded assets and junior to holders of indebtedness secured by a lien on such excluded assets. To the extent the claims of the holders of the Notes exceed the value of the assets securing the Notes and other liabilities, claims related to the excluded assets will rank equally with the claims of the holders of any other unsecured indebtedness. As a result, if the value of the assets pledged as security for the Notes is less than the value of the claims of the holders of the Notes, those claims may not be satisfied in full before the claims of our unsecured creditors are paid.

Your rights in the Collateral may be adversely affected by the failure to create or perfect security interests in certain Collateral on a timely basis.

Applicable law requires that a security interest in certain tangible assets can only be properly perfected and its priority retained through certain actions undertaken by the secured party. The liens on the Collateral securing the Notes may not be perfected with respect to the Notes if the collateral agent does not take the actions necessary to perfect any of these liens. In addition, there can be no assurance that the lenders under the ABL Revolver Loan will take all actions necessary to create properly perfected security interests in the ABL Priority Collateral, which may result in the loss of the priority of the security interest in favor of the holders of the Notes to which they would otherwise have been entitled. If a security interest is not perfected with respect to any portion of the Collateral, the Notes and the guarantee may not be effectively secured by such Collateral.

 

23

---

Table of Contents

In addition, applicable law requires that certain property and rights acquired after the grant of a general security interest, such as real property, equipment subject to a certificate of title, certain proceeds and other assets can only be perfected at the time such property and rights are acquired and identified. We have limited obligations to perfect the security interest in the Collateral in favor of the holders of the Notes. The Trustee and the collateral agent have no obligation to monitor, and we may fail to inform the Trustee or the collateral agent of, the future acquisition of property and rights that constitute Collateral, and, as a result, the necessary action may not be taken to properly perfect the security interest in that after-acquired Collateral. The collateral agent also has no obligation to monitor the perfection of any security interest in favor of the Notes against third parties. Furthermore, certain actions are required to be taken periodically to maintain certain security interests granted in the Collateral, and a failure to do so may result in the loss of the security interest in the Collateral or the priority of the security interest in favor of the holders of the Notes against third parties.

There are circumstances other than repayment or discharge of the Notes under which the Collateral securing the Notes and guarantees will be released automatically, without your consent or the consent of the Trustee.

Under various circumstances, all or a portion of the Collateral securing the Notes will be released automatically, including:

 

•

to enable the disposition of such property or assets, including capital stock (other than to the issuer or a guarantor) to the extent not prohibited under the indenture governing the Notes;

 

•

in the case of a guarantor that is released from its guarantee, the release of property and assets of such guarantor;

 

•

with respect to Collateral that is capital stock, upon the dissolution or liquidation of the issuer of that capital stock that is not prohibited by the indenture governing the Notes or upon the release of a guarantor that has pledged such capital stock;

 

•

in connection with an amendment to the indenture governing the Notes or the related security documents that has received the required consent;

 

•

upon any release, sale or disposition (other than in connection with a cancellation or termination of the ABL Revolver Loan) of ABL Priority Collateral pursuant to the terms of the ABL Revolver Loan, subject to certain exceptions, resulting in the release of the lien on such ABL Priority Collateral securing the ABL Revolver Loan;

 

•

in whole upon satisfaction and discharge of the issuer’s obligations under the indenture governing the Notes as described in the section titled “Description of Notes — Satisfaction and Discharge”;

 

•

in whole upon the exercise by the issuer of its legal defeasance option or covenant defeasance option as described in the section titled “Description of Notes — Defeasance”; and

 

•

in whole or in part with the consent of holders holding 66 2/3% or more of the principal amount of the Notes outstanding.

See “Description of Notes — Security for the Notes — Release of Collateral.”

In addition, upon certain sales of the assets that comprise the Collateral, we will be required to repay amounts outstanding under the ABL Revolver Loan, prior to repayment of any of our other indebtedness, including the Notes, with the proceeds of such Collateral disposition. The guarantee of a subsidiary guarantor will also be automatically released in connection with a sale of such subsidiary guarantor in a transaction permitted under the indenture governing the Notes.

The indenture governing the Notes will also permit us to designate one or more of our restricted subsidiaries that is a guarantor of the Notes as an unrestricted subsidiary. If we designate a subsidiary guarantor as an unrestricted subsidiary for purposes of the indenture governing the Notes, all of the liens on any Collateral owned by such subsidiary or any of its subsidiaries and any guarantees of the Notes by such subsidiary or any of its subsidiaries will be released under the indenture governing the Notes. Designation of an unrestricted subsidiary will reduce the aggregate value of the Collateral securing the Notes to the extent that liens on the assets of the unrestricted subsidiary and its subsidiaries are released. In addition, the creditors of the unrestricted subsidiary and its subsidiaries will have a senior claim on the assets of such unrestricted subsidiary and its subsidiaries. See “Description of Notes — Certain Definitions — Unrestricted Subsidiary”.

Any current or future pledge of Collateral provided after the Notes are issued might be avoided by a trustee in bankruptcy.

The indenture governing the Notes and the security documents will require us to grant liens on certain of our and our guarantors’ current assets and certain assets that we or any guarantor acquire after the Notes are issued. Any future guarantee or any lien in favor of the collateral agent for the benefit of the holders of the Notes might be avoidable by the grantor (as debtor-in-possession) or by its trustee in bankruptcy or other third parties if certain events or circumstances exist or occur. For instance, if the entity granting the future guarantee or additional lien was insolvent at the time of the grant and if such grant was made within 90 days before that entity commenced a bankruptcy proceeding (or one year before commencement of a bankruptcy proceeding if the creditor that benefited from the guarantee or lien is an “insider” under the U.S. Bankruptcy Code), and the granting of the future guarantee or additional lien enabled the holders of the Notes to receive more than they would if the grantor were liquidated under chapter 7 of the U.S. Bankruptcy Code, then such guarantee or lien could be avoided as a preferential transfer. Liens recorded or perfected after the issue date may be treated under bankruptcy law as if they were delivered to secure previously existing indebtedness. In bankruptcy proceedings commenced within 90 days of lien perfection, a lien given to secure previously existing indebtedness is materially more likely to be avoided as a preference by the bankruptcy court than if delivered and promptly recorded on the issue date. Accordingly, if we or any guarantor were to file for bankruptcy protection after the issue date of the Notes and the liens had been perfected less than

 

24

---

Table of Contents

90 days before commencement of such bankruptcy proceeding, the liens securing the Notes may be particularly subject to challenge as a result of having been delivered after the issue date. To the extent that such challenge succeeded, the holders of the Notes would lose the benefit of the security that the Collateral was intended to provide.

The amount that can be collected under any future guarantees will be limited.

Any future guarantee will be limited to the maximum amount that can be guaranteed by a particular guarantor without rendering the future guarantee, as it relates to that future guarantor, voidable. In general, the maximum amount that can be guaranteed by a particular future guarantor may be significantly less than the principal amount of the Notes.

The Collateral is subject to casualty risks and potential environmental liabilities.

We intend to maintain insurance or otherwise insure against hazards in a manner appropriate and customary for our business. There are, however, certain losses that may be either uninsurable or not economically insurable, in whole or in part. Insurance proceeds may not compensate us fully for our losses. If there is a complete or partial loss of any of the pledged Collateral, the insurance proceeds may not be sufficient to satisfy all of the secured obligations, including the Notes and the guarantees.

In the event of a total or partial loss to any of our facilities, certain items of equipment and inventory may not be easily replaced, if at all. Accordingly, even though there may be insurance coverage, the extended period needed to manufacture replacement units or inventory could cause significant delays and any such delay could further decrease the value of the other Collateral.

Moreover, the collateral agent may need to evaluate the impact of potential liabilities before determining to foreclose on Collateral consisting of real property because secured creditors that hold a security interest in real property may be held liable under environmental laws for the costs of remediating or preventing the release or threatened release of hazardous substances at that real property. Consequently, the collateral agent may decline to foreclose on that Collateral or exercise remedies available in respect thereof if it does not receive indemnification to its satisfaction from the holders of the Notes. Under certain circumstances, cleanup costs could become a liability of the collateral agent, and, if the holders of the Notes have agreed to indemnify the collateral agent, such holders of the Notes could be required to help repay those costs. If the holders of the Notes have agreed to this indemnification without sufficient limitations and such costs were to become high enough, such holders of the Notes could be required to pay the collateral agent an amount that is greater than the amount such holders of the Notes paid for the Notes.

In the event of our bankruptcy, the ability of the holders of the Notes to realize upon the Collateral will be subject to certain bankruptcy law limitations.

The ability of holders of the Notes to realize upon the Collateral will be subject to certain bankruptcy law limitations in the event of our bankruptcy. Under applicable federal bankruptcy laws, upon the commencement of a bankruptcy case, an automatic stay goes into effect which, among other things, stays:

 

•

the commencement or continuation of any action or proceeding against the debtor that was or could have been commenced before the commencement of the bankruptcy case to recover a claim against the debtor that arose before the commencement of the bankruptcy case;

 

•

any act to obtain possession of, or control over, property of the bankruptcy estate or the debtor;

 

•

any act to create, perfect or enforce any lien against property of the bankruptcy estate; and

 

•

any act to collect or recover a claim against the debtor that arose before the commencement of the bankruptcy case.

Thus, upon the commencement of a bankruptcy case, secured creditors are prohibited from repossessing their collateral from a debtor, or from disposing of that collateral repossessed from such a debtor, without bankruptcy court approval. Moreover, applicable federal bankruptcy laws generally permit the debtor to continue to use, sell or lease collateral in the ordinary course of its business even though the debtor is in default under the applicable debt instruments. Upon request from a secured creditor, the bankruptcy court will prohibit or condition the use, sale or lease of collateral as is necessary to provide “adequate protection” of the secured creditor’s interest in the collateral. The meaning of the term “adequate protection” may vary according to the circumstances but is intended generally to protect the value of the secured creditor’s interest in the collateral at the commencement of the bankruptcy case and may include cash payments or the granting of additional security, if and at such times as the court in its discretion determines any diminution in the value of the collateral occurs as a result of the debtor’s use, sale or lease of the collateral during the pendency of the bankruptcy case. In view of the lack of a precise definition of the term “adequate protection” and the broad discretionary powers of a U.S. bankruptcy court, we cannot predict whether payments under the Notes would be made following commencement of and during a bankruptcy case, whether or when the Trustee or collateral agent could foreclose upon or sell the Collateral or whether or to what extent holders of notes would be compensated for any delay in payment or loss of value as a result of the use, sale or lease of their Collateral through the requirement of “adequate protection.” A creditor may seek relief from the stay from the bankruptcy court to take any of the acts described above that would otherwise be prohibited by the automatic stay. The U.S. bankruptcy court has broad discretionary powers in determining whether to grant a creditor relief from the stay.

 

25

---

Table of Contents

Federal and state statutes could allow a court to void the Notes or any of the subsidiaries’ guarantees of the Notes under fraudulent transfer laws or grants of security and require noteholders to return payments received from the issuer or the guarantors to the issuer or the guarantors or to a fund for the benefit of their respective creditors or subordinate the Notes or the guarantees to other claims of the issuer or the guarantors.

Under the federal bankruptcy laws and comparable provisions of state fraudulent transfer laws, the Notes or any of the guarantees thereof (or the grant of Collateral securing any such obligation) could be voided, or claims with respect to the Notes or any of the guarantees could be subordinated to all other debts of the issuer or the guarantors. In addition, a bankruptcy court could void (i.e., cancel) any payments by the issuer or the guarantors pursuant to their guarantees and require those payments to be returned to the issuer or the guarantors or to a fund for the benefit of the issuer or their respective creditors, or subordinate the Notes or the guarantees to other claims of the issuer or the guarantors. The bankruptcy court might take these actions if it found, among other things, that the issuer or the applicable guarantor:

 

•

received less than reasonably equivalent value or fair consideration for the issuance of the Notes or the incurrence of its guarantee or grants of security; and

 

•

was (or was rendered) insolvent by such issuance or such incurrence or grants;

 

•

was engaged or about to engage in a business or transaction for which its assets constituted unreasonably small capital to carry on its business;

 

•

intended to incur, or believed that it would incur, obligations beyond its ability to pay as those obligations matured; or

 

•

was a defendant in an action for money damages, or had a judgment for money damages docketed against it and, in either case, after final judgment, the judgment was unsatisfied.

A court would likely find that the issuer or a guarantor received less than fair consideration or reasonably equivalent value for the Notes or its guarantee or grant of security to the extent that it did not receive direct or indirect substantial benefit from the issuance of the Notes or the incurrence of the guarantee or grant of security. A court could also void the Notes or any guarantee or grant of security if it found that the issuer or the guarantor issued the Notes or incurred the guarantee or granted the security with actual intent to hinder, delay, or defraud any present or future creditors. Although courts in different jurisdictions measure solvency differently, in general, an entity would be deemed insolvent if the sum of its debts, including contingent and unliquidated debts, exceeds the fair value of its assets, or if the present fair saleable value of its assets is less than the amount that would be required to pay the expected liability on its debts, including contingent and unliquidated debts, as they become due. We cannot predict what standard a court would apply in order to determine whether any of the issuer or a guarantor was insolvent as of the relevant date or whether, regardless of the method of valuation, a court would determine that the guarantor was insolvent on that date, or whether a court would determine that the payments thereunder constituted fraudulent transfers or conveyances on other grounds. If the issuance of the Notes or the incurrence of the guarantee or the grant of security is deemed to be a fraudulent transfer, the payment obligations or the grant of Collateral could be voided altogether, or subordinate the Notes or that guarantee to all other debts of the issuer or guarantor, as applicable. In such case, any payment by the issuer or applicable guarantor pursuant to the Notes or its guarantee could be required to be returned to the issuer or the applicable guarantor or to a fund for the benefit of the issuer’s or their respective creditors. Moreover, in such a case a court could subordinate the Notes or guarantees to other claims of the issuer or the guarantor. If a guarantee is voided or held unenforceable for any other reason, holders of the Notes would cease to have a claim against the guarantor based on the guarantee and would be creditors only of the issuer and any guarantor whose guarantee was not similarly voided or otherwise held unenforceable.

Each guarantee will contain a provision intended to limit the guarantor’s liability to the maximum amount that it could incur without rendering the incurrence of obligations under its guarantee a fraudulent transfer. This provision may not be effective to protect the guarantees from being voided or subordinated under fraudulent transfer or conveyance law.

The waiver in the intercreditor agreement of rights of marshalling may adversely affect the recovery rates of holders of the Notes in a bankruptcy or foreclosure scenario.

The Notes and the guarantees will be secured on a second-priority lien basis by the ABL Priority Collateral. The intercreditor agreement provides that, at any time holders of the Notes hold a second-priority lien on the Collateral where a first-priority lien on such Collateral exists, the Trustee and the collateral agent may not assert or enforce any right of marshaling accorded to a junior lienholder, as against the holders of such indebtedness secured by first-priority liens in the ABL Priority Collateral. Without this waiver of the right of marshaling, holders of such indebtedness secured by first-priority liens in the ABL Priority Collateral would likely be required to liquidate collateral on which the Notes did not have a lien, if any, prior to liquidating the Collateral, thereby maximizing the proceeds of the Collateral that would be available to repay our obligations under the Notes. As a result of this waiver, the proceeds of sales of the ABL Priority Collateral could be applied to repay any indebtedness secured by first-priority liens in the ABL Priority Collateral before applying proceeds of other Collateral securing indebtedness, and the holders of notes may recover less than they would have if such proceeds were applied in the order most favorable to the holders of the Notes.

 

26

---

Table of Contents

The use of a collateral agent may diminish the rights that a secured creditor would otherwise have with respect to the Collateral.

The Collateral will be taken in the name of the collateral agent for the benefit of the holders of the Notes. The collateral agent will enter into each security document on behalf of the holders of the Notes. The collateral agent may effectively control actions with respect to Collateral (subject to the rights of the collateral agent for our ABL Revolver Loan with respect to ABL Priority Collateral), which may impair the rights that a holder of the Notes would otherwise have a secured creditor. The collateral agent may take actions that a holder of the Notes disagrees with or fail to take actions that a holder of the Notes wishes to pursue. Furthermore, the collateral agent may fail to act in a timely manner, which could impair the recovery of holders of the Notes.

In certain circumstances, the security agreements and the intercreditor agreement provides that the collateral agent for our ABL Revolver Loan will act as bailee or agent on behalf of both the lenders under our ABL Revolver Loan and the Notes in respect of certain ABL Priority Collateral. Although such agreements provides for such arrangements, there is no assurance that these arrangements will be upheld in certain jurisdictions. In addition, the collateral agent for our ABL Revolver Loan may be subject to conflicts of interest due to its role as bailee or agent on behalf of competing classes of creditors. The holders of the Notes will have limited rights against the collateral agent for our ABL Revolver Loan.

RATIOS OF EARNINGS TO FIXED CHARGES

AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

The following table sets forth our ratios of earnings to fixed charges and combined fixed charges and preferred stock dividends for the periods indicated. “Preferred stock dividends” consist of the amount of pre-tax earnings required to pay dividends on our preferred stock. A detailed computation table can be found in Exhibit 12.1 to the registration statement of which this prospectus is part.

 

Year Ended

December 2013

December 2012

December 2011

December 2010

December 2009

Ratio of earnings to fixed charges

5.6:1

18.4:1

21.1:1

7.8:1

5.6:1

Ratio of earnings to combined fixed charges and preferred stock dividends

5.5:1

16.9:1

19.6:1

7.3:1

5.2:1

The earnings and fixed charges in the above ratios are calculated using the definitions set forth by Regulation S-K under the Securities Act of 1933.

USE OF PROCEEDS

This exchange offer is intended to satisfy our obligations under the registration rights agreement entered into in connection with the issuance of the old notes. We will not receive any cash proceeds from the issuance of the Notes in connection with this exchange offer.

In consideration for issuing the Notes as contemplated by this prospectus, we will receive the old notes in like principal amount. The old notes surrendered and exchanged for the Notes will be retired and canceled and cannot be reissued.

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA

The following table sets forth LSB’s selected financial data for the periods presented. The balance sheet data as of December 31, 2012 and 2013, and the statement of income data for the years ended December 31, 2011, 2012 and 2013 set forth below are derived from the audited consolidated financial statements of LSB incorporated by reference in this prospectus. The balance sheet data as of December 31, 2009, 2010 and 2011 and the statement of income data for the years ended December 31, 2009 and 2010 are derived from the audited consolidated financial statements of LSB not included in this prospectus.

You should read the information set forth below in conjunction with, and it is qualified by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and the consolidated financial statements of LSB and the related notes incorporated by reference in this prospectus. LSB’s historical operating results are not necessarily indicative of future operating results.

 

27

---

Table of Contents

		Years ended December 31,
(In Thousands)		2009				2010				2011				2012				2013
Statement of Income Data:
Net sales		$	531,838			$	609,905			$	805,256			$	759,031			$	679,287
Cost of sales			394,424				471,280				582,238				575,295				535,731
Gross profit			137,414				138,625				223,018				183,736				143,556
Selling, general and administrative expense			96,374				89,720				86,343				89,988				100,674
Provisions for (recovery of) losses on accounts receivable			90				145				347				(214	)			478
Property insurance recoveries in excess of losses incurred			—				(7,518	)			—				—				(66,255	)
Other expense (income), net			240				353				(115	)			(1,693	)			3,351
Operating income			40,710				55,925				136,443				95,655				105,308
Interest expense, net			6,746				7,427				6,658				4,237				13,986
Losses (gain) on extinguishment of debt			(1,783	)			52				136				—				1,296
Non-operating other income, net			(130	)			(53	)			—				(281	)			(100	)
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate			35,877				48,499				129,649				91,699				90,126
Provisions for income taxes			15,024				19,787				46,208				33,594				35,421
Equity in earnings of affiliate			(996	)			(1,003	)			(543	)			(681	)			(436	)
Income from continuing operations			21,849				29,715				83,984				58,786				55,141
Net loss from discontinued operations			265				141				142				182				179
Net income		$	21,584			$	29,574			$	83,842			$	58,604			$	54,962
Selected Balance Sheet Data (at end of period):
Cash and cash equivalents		$	61,739			$	66,946			$	124,929			$	98,020			$	143,750
Accounts receivable, net			57,762				74,259				87,351				82,801				80,570
Inventories			51,013				60,106				59,506				64,973				55,872
Property, plant and equipment, net			117,962				135,755				164,547				281,871				416,801
Noncurrent restricted cash and investments			—				—				—				—				290,964
Total assets			338,633				387,981				502,009				576,612				1,083,097
Total long-term debt, including current portion			101,801				95,392				79,460				72,441				462,967
Total stockholders’ equity			150,607				179,370				293,270				354,497				411,715
Statement of Cash Flow Data:
Net cash provided by (used in):
Continuing operating activities		$	57,673			$	44,201			$	89,971			$	99,471			$	54,055
Continuing investing activities			(38,060	)			(25,988	)			(44,596	)			(121,669	)			(389,623	)
Continuing financing activities			(3,922	)			(12,644	)			12,891				(4,491	)			381,472
Other Financial Data:
Depreciation, depletion and amortization of PP&E		$	15,601			$	17,329			$	18,762			$	20,681			$	28,310
Amortization of other assets			757				651				440				328				878
Expenditures for PP&E			28,891				34,475				44,221				92,644				157,377

DESCRIPTION OF OTHER INDEBTEDNESS

ABL Revolver Loan

On February 13, 2014, LSB and certain of its subsidiaries (the “Borrowers”) amended and restated the existing senior secured revolving credit facility (as amended and restated, the “ABL Revolver Loan”) effective December 31, 2013. The ABL Revolver Loan provides that (a) the Borrowers may borrow on a revolving basis up to $100.0 million, based on specific percentages of eligible accounts receivable and inventories and (b) the old notes (and the Notes when issued) and the secured guarantees are secured on a first-priority basis by the Notes Priority Collateral and on a second-priority basis by the ABL Priority Collateral and the ABL Revolver Loan are secured on a first-priority basis by the ABL Priority Collateral and on a second-priority basis by the Notes Priority Collateral. The ABL Revolver Loan will mature on April 13, 2018.

The ABL Revolver Loan accrues interest at a base rate (generally equivalent to the prime rate) plus 0.50% if borrowing availability is greater than $25.0 million, otherwise plus 0.75% or, at our option, accrues interest at LIBOR plus 1.50% if borrowing availability is greater than $25.0 million, otherwise LIBOR plus 1.75%. At December 31, 2013, the interest rate was 3.75% based on LIBOR. Interest is paid monthly, if applicable.

 

28

---

Table of Contents

At December 31, 2013, there were no outstanding borrowings under the ABL Revolver Loan. At December 31, 2013, the net credit available for borrowings under our ABL Revolver Loan was approximately $67.0 million, based on our eligible collateral, less outstanding letters of credit as of that date.

The ABL Revolver Loan provides for up to $15.0 million of letters of credit. All letters of credit outstanding reduce availability under the ABL Revolver Loan. Under the ABL Revolver Loan, the lender also requires the Borrowers to pay a letter of credit fee equal to 1.0% per annum of the undrawn amount of all outstanding letters of credit, an unused line fee equal to 0.25% per annum for the excess amount available under the ABL Revolver Loan not drawn and various other audit, appraisal and valuation charges.

The ABL Revolver Loan is secured by certain assets of LSB and LSB’s current subsidiaries (other than Zena). Zena is neither a borrower under, nor guarantor of, the ABL Revolver Loan.

The ABL Revolver Loan requires the Borrowers to meet a minimum fixed charge coverage ratio (as defined in the ABL Revolver Loan) of not less than 1.10 to 1, if at any time the excess availability (as defined by the ABL Revolver Loan), under the ABL Revolver Loan, is less than or equal to $12.5 million. This ratio will be measured monthly on a trailing twelve month basis and as defined in the ABL Revolver Loan. As of December 31, 2013, the fixed charge coverage ratio was 6.6 to 1. The ABL Revolver Loan contains covenants that, among other things, limit the Borrowers’ ability, without consent of the lender and with certain exceptions, to:

 

•

incur additional indebtedness;

 

•

create liens on, sell or otherwise dispose of our assets;

 

•

engage in certain fundamental corporate changes or changes to our business activities;

 

•

make certain material acquisitions;

 

•

make other restricted payments, including investments;

 

•

repay certain indebtedness;

 

•

engage in certain affiliate transactions;

 

•

declare dividends and distributions; or

 

•

engage in mergers, consolidations or other forms of recapitalization; or

 

•

dispose assets.

The ABL Revolver Loan allows the Borrowers to guarantee the Notes.

So long as both immediately before and after giving effect to any of the following, excess availability as defined by the ABL Revolver Loan is equal to or greater than the greater of (x) 20% of the maximum revolver commitment or (y) $20 million, the ABL Revolver Loan will allow each of the Borrowers under the ABL Revolver Loan to make:

 

•

distributions and pay dividends by LSB with respect to amounts in excess of $0.5 million during each fiscal year;

 

•

acquisitions of treasury stock by LSB with respect to amounts in excess of $0.5 million during each fiscal year;

 

•

certain hedging agreements;

 

•

investments in joint ventures and certain subsidiaries of LSB in an aggregate amount not exceeding $35.0 million; and

 

•

other investments in an aggregate amount not exceeding $50.0 million at any one time outstanding.

The ABL Revolver Loan includes customary events of default, including events of default relating to nonpayment of principal and other amounts owing under the ABL Revolver Loan from time to time, any material misstatement or misrepresentation and breaches of representations and warranties made, violations of covenants, cross-payment default to indebtedness in excess of $2.5 million, cross-acceleration to indebtedness in excess of $2.5 million, bankruptcy and insolvency events, certain unsatisfied judgments, certain liens, and certain assertions of, or actual invalidity of, certain loan documents.

Secured Promissory Note

On February 1, 2013, Zena Energy, L.L.C. (“Zena”), a subsidiary within our Chemical Business, entered into a loan with a lender in the original principal amount of $35.0 million. The proceeds of the loan effectively financed $35.0 million of the approximately $50.0 million purchase price of the working interests in certain natural gas properties located within the Marcellus Shale, Wyoming County, Pennsylvania, paid previously out of LSB’s working capital. The proceeds of the loan were used to reimburse our general working capital. The loan is for a term of three years. Principal and interest are payable monthly based on a five-year amortization at a defined LIBOR rate plus 300 basis points with a final balloon payment of $15.3 million due at maturity. The loan is secured by the acquired natural gas working interests and related properties and proceeds held by Zena.

Secured Equipment Note

On May 15, 2013, Chemical Properties L.L.C., a subsidiary within our Chemical Business, entered into a loan, the Secured Equipment Note, with a lender in the original principal amount of $5.0 million and bearing interest at the rate of 4.5% per annum. Proceeds of the loan financed the purchase of certain chemical equipment, and the payment of the loan amount is secured by the purchased equipment. The loan is for a term of five years. The loan is payable in monthly payments of approximately $52,000, with a payment at maturity of approximately $2.8 million.

 

29

---

Table of Contents

DESCRIPTION OF NOTES

On August 7, 2013, the Company issued $425 million aggregate principal amount of its 7.75% Senior Secured Notes due 2019 (the “old notes”), and will issue the Notes, under the Indenture (the “Indenture”), among itself, the Guarantors, UMB Bank, n.a., as Trustee (in such capacity, the “Trustee”) and as collateral agent (in such capacity, the “Notes Collateral Agent”). The old notes were issued in a private transaction that was not registered under the Securities Act. The terms of the old notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”). The terms of the Notes offered in the exchange offer are identical in all material respects to the terms of the old notes, except that the Notes will bear interest from the most recent interest payment date to which interest has been paid on the old notes. Interest on the old notes accepted for exchange will cease to accrue upon the issuance of the Notes. Interest on the Notes is payable semi-annually in arrears on February 1 and August 1 of each year to the holders of record on the immediately preceding January 15 and July 15.

The following is a summary of the material provisions of the Notes, the Indenture, the Security Documents and the Intercreditor Agreement, but does not purport to be complete and is qualified in its entirety by reference to the provisions of the Indenture, the Security Documents, and the Intercreditor Agreement. We urge you to read the Indenture, the Security Documents, the Intercreditor Agreement and the Registration Rights Agreement because they, not this summary, define your rights as holders of the Notes (the “Holders”). Copies of the Indenture, the Security Documents, the Intercreditor Agreement and the Registration Rights Agreement may be obtained from the Company, and a copy of each has been filed as an exhibit to our Current Report on Form 8-K filed with the SEC on August 14, 2013 or the Form S-4 Registration Statement of which this Prospectus is a part.

You can find the definitions of some of the terms used in this description below under the caption “—Certain Definitions.” The defined terms used in this description but not defined under “—Certain Definitions” have the meanings assigned to them in the Indenture. For purposes of this section, (i) references to the “Company” include only LSB Industries, Inc. and not its Subsidiaries and (ii) the terms “we”, “our” and “us” each refer to the Company and its consolidated Subsidiaries.

Brief Description of the Notes

The Notes:

 

•

will be senior secured obligations of the Company, ranking equal in right of payment with all other senior obligations of the Company (including the Credit Agreement and other Lenders Debt);

 

•

will rank senior in right of payment to any future Subordinated Indebtedness of the Company;

 

•

will be guaranteed by each Guarantor on a senior secured basis, other than Zena (the “Unsecured Guarantors”), each of which shall guarantee the Notes on a senior unsecured basis (the “Unsecured Guarantees”);

 

•

will be effectively senior to all existing and future unsecured Indebtedness of the Company to the extent of the value of the Collateral owned by the Company (after giving effect to any senior Lien on such Collateral), and effectively senior to all existing and future obligations under the Credit Agreement and other Lenders Debt to the extent of the value of the Notes Priority Collateral (as defined below) owned by the Company;

 

•

will be secured on a first-priority basis by the Notes Priority Collateral owned by the Company and on a second-priority basis by the ABL Priority Collateral (as defined below) owned by the Company, in each case subject to certain Liens permitted under the Indenture;

 

•

will be equal in priority as to the Notes Priority Collateral owned by the Company with respect to any obligations under any Other Pari Passu Lien Obligations incurred after the Issue Date;

 

•

will be effectively subordinated to (i) the Company’s existing and future obligations under the Credit Agreement and other Lenders Debt to the extent of the value of the ABL Priority Collateral owned by the Company and (ii) any existing or future Indebtedness of the Company that is secured by Liens on assets that do not constitute a part of the Collateral to the extent of the value of such assets;

 

•

will be structurally subordinated to any existing and future Indebtedness, preferred stock obligations and other liabilities of the Company’s future Subsidiaries that are not Guarantors; and

 

•

will be subject to registration with the Commission pursuant to the Registration Rights Agreement, as described under “Exchange offer; registration rights”.

The Company will issue the Notes in fully registered form in denominations of $2,000 and any greater integral multiple of $1,000. The Trustee will initially act as Exchange Agent, Paying Agent and Registrar for the Notes. The Notes may be presented for registration or transfer and exchange at the offices of the Registrar. The Company may change any Paying Agent and Registrar without notice to Holders. The Company will pay principal (and premium, if any) on the Notes at the Trustee’s corporate office in New York, New York. At the Company’s option, interest may be paid at the Trustee’s corporate trust office or by check mailed to the registered address of Holders. Any old notes that remain outstanding after the completion of the exchange offer, together with the Notes issued in connection with such exchange offer, will be treated as a single class of securities under the Indenture.

 

30

---

Table of Contents

Comparison of the Differences Between the Old Notes and the Notes

The form and terms of the Notes are substantially identical to the old notes except that the issuance of the Notes has been registered under the Securities Act and the transfer restrictions, registration rights and certain additional interest provisions relating to the old notes do not apply to the Notes.

Principal, Maturity and Interest

The Company will issue the Notes initially with a maximum aggregate principal amount of $425.0 million. The Notes will mature on August 1, 2019. Subject to compliance with the covenant described under the subheading “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”, the Company is permitted to issue more Notes from time to time (the “Additional Notes”). The Notes and the Additional Notes, if any, along with any old notes that remain outstanding after completion of the exchange offer, will be treated as a single class for all purposes of the Indenture, including waivers, amendments, redemptions and offers to purchase; provided, however, that in the event that any Additional Notes are not fungible with the Notes for U.S. federal income tax purposes, such nonfungible Additional Notes will be issued with a separate CUSIP or ISIN number so that they are distinguishable from the Notes. Unless the context otherwise requires, for all purposes of the Indenture and this “Description of Notes,” references to the Notes include any Additional Notes actually issued, along with any old notes that remain outstanding after completion of the exchange offer,.

Interest on the Notes will accrue at the rate of 7.75% per annum and will be payable semiannually in arrears in cash on each February 1 and August 1 commencing on [—], to the persons who are registered Holders at the close of business on the January 15 and July 15 immediately preceding the applicable interest payment date. The Company will pay interest on overdue principal at 1% per annum in excess of the above rate and will pay interest on overdue installments of interest at such higher rate to the extent lawful.

Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including the date of issuance. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

Optional Redemption

Optional Redemption. Except as described below, the Notes are not redeemable before August 1, 2016. On or after such date, the Company may redeem the Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the twelve-month period commencing on August 1 of the year set forth below:

 

Year		Percentage
2016			103.875	%
2017			101.938	%
2018 and thereafter			100.000	%

Optional Redemption Upon Public Equity Offerings. At any time, or from time to time, on or prior to August 1, 2016, the Company shall be entitled, at its option, to use the net cash proceeds of one or more Public Equity Offerings to redeem up to 35% of the aggregate principal amount of the Notes (which includes Additional Notes, if any) issued under the Indenture at a redemption price of 107.75% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of redemption (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided that:

(1) at least 65% of the aggregate principal amount of Notes (which includes Additional Notes, if any) issued under the Indenture remains outstanding immediately after any such redemption (other than Notes held, directly or indirectly, by the Company or its Affiliates); and

(2) the Company makes such redemption not more than 90 days after the consummation of any such Public Equity Offering.

Make-Whole Redemption. Prior to August 1, 2016, the Company will be entitled at its option to redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes plus the Applicable Premium as of, and accrued and unpaid interest to, the redemption date (subject to the right of Holders on the relevant record date to receive interest due on the relevant interest payment date).

Selection and Notice of Redemption

In the event that the Company chooses to redeem less than all of the Notes at any time, selection of the Notes for redemption will be made by the Trustee either:

(1) in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are listed; or,

(2) on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate.

 

31

---

Table of Contents

No Notes of a principal amount of $2,000 or less shall be redeemed in part. If a partial redemption is made with the proceeds of a Public Equity Offering, the Trustee will select the Notes only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to DTC procedures). Notice of redemption will be mailed by first-class mail at least 30 but not more than 60 days before the redemption date to each Holder of Notes to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to the redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Indenture. Any inadvertent defect in the notice of redemption, including an inadvertent failure to give notice, to any Holder selected for redemption will not impair or affect the validity of the redemption of any other Note redeemed in accordance with provisions of the Indenture.

If any Note is to be redeemed in part only, then the notice of redemption that relates to such Note must state the portion of the principal amount thereof to be redeemed. A new Note in a principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Note. Notes called for redemption become due on the date fixed for redemption. On and after the redemption date, interest will cease to accrue on Notes or portions thereof called for redemption as long as the Company has deposited with the Paying Agent funds in satisfaction of the applicable redemption price.

Mandatory Redemption; Offers to Purchase; Open Market Purchases

The Company is not required to make any mandatory redemption or sinking fund payments with respect to the Notes. However, under certain circumstances, the Company may be required to offer to purchase Notes as described under “— Change of Control” and “— Certain Covenants — Limitation on Asset Sales”. The Company may at any time and from time to time purchase Notes in the open market or otherwise.

Guarantees

The Guarantors jointly and severally guarantee the Company’s obligations under the Indenture, the Notes, the Security Documents and the Intercreditor Agreement on a senior secured basis, other than the Unsecured Guarantees. All of the Company’s Subsidiaries currently guarantee the Notes.

Other than the Unsecured Guarantees, each of the Guarantees:

 

•

will be a senior secured obligation of the relevant Guarantor ranking equally in right of payment with all other senior obligations of such Guarantor (including the Credit Agreement and other Lenders Debt);

 

•

will be senior in right of payment to all future Subordinated Indebtedness of such Guarantor;

 

•

will be effectively senior to all existing and future unsecured Indebtedness of such Guarantor to the extent of the value of the Collateral owned by such Guarantor (after giving effect to any senior Lien on such Collateral), and effectively senior to all existing and future obligations under the Credit Agreement and other Lenders Debt to the extent of the value of the Notes Priority Collateral owned by such Guarantor;

 

•

will be secured on a first-priority basis by the Notes Priority Collateral owned by such Guarantor and on a second-priority basis by the ABL Priority Collateral owned by such Guarantor, in each case subject to certain Liens permitted under the Indenture;

 

•

will be equal in priority as to the Notes Priority Collateral owned by such Guarantor with respect to any obligations under any Other Pari Passu Lien Obligations incurred after the Issue Date; and

 

•

will be effectively subordinated to (i) such Guarantor’s existing and future obligations under the Credit Agreement and other Lenders Debt to the extent of the value of the ABL Priority Collateral owned by such Guarantor and (ii) any existing or future Indebtedness of such Guarantor that is secured by Liens on assets that do not constitute a part of the Collateral to the extent of the value of such assets.

The Unsecured Guarantees will be senior unsecured obligations of the relevant Guarantor ranking equally in right of payment with all other senior obligations of such Guarantor.

The Notes will be structurally subordinated to Indebtedness and other liabilities of future Subsidiaries of the Company that do not guarantee the Notes. See “Risk Factors Related to the Notes, the Collateral and this Offering — The Notes will be structurally subordinated to all of the existing and future liabilities, including trade payables, of any subsidiaries in the future that do not become guarantors of the Notes”. All of the Company’s existing Subsidiaries will Guarantee the Notes. In the event of bankruptcy, liquidation or reorganization of any of these non-guarantor Subsidiaries, the non-guarantor Subsidiaries will pay the holders of their debt and their trade creditors before they will be able to distribute any of their assets to the Company or any other Guarantor.

The obligations of each Guarantor under its Guarantee will be limited as necessary to prevent the Guarantee from constituting a fraudulent conveyance or fraudulent transfer under applicable law. This limitation, however, may not be effective to prevent such Subsidiary Guarantee from constituting a fraudulent conveyance. If a Guarantee were rendered voidable, it could be subordinated by a court to all other Indebtedness (including guarantees and other contingent liabilities) of the applicable Guarantor, and, depending on the amount of such Indebtedness, a Guarantor’s liability on its Guarantee could be reduced to zero. See “Risk Factors Related to the Notes, the Collateral and this Offering — Federal and state statutes could allow a court to void the Notes or any of our subsidiaries’ guarantees of the Notes under fraudulent transfer laws and require noteholders to return payments received by the issuer or the guarantors to the issuer or the guarantors or to fund for the benefit of their respective creditors or subordinate the Notes or the guarantees to other claims of the issuer or the guarantors”.

 

32

---

Table of Contents

Each Guarantor that makes a payment under its Guarantee will be entitled upon payment in full of all guaranteed obligations under the Indenture to a contribution from each other Guarantor in an amount equal to such other Guarantor’s pro rata portion of such payment based on the respective net assets of all the Guarantors at the time of such payment determined in accordance with GAAP.

Each Guarantor may consolidate with or merge into or sell its assets to the Company or another Guarantor that is a Restricted Subsidiary of the Company without limitation, or with other Persons upon the terms and conditions set forth in the Indenture. See “— Certain Covenants — Merger, Consolidation and Sale of Assets”. In the event all of the Capital Stock of a Guarantor is sold or spun-off by the Company and the sale or spin-off complies with the provisions set forth in “— Certain Covenants — Limitation on Asset Sales”, the Guarantor’s Guarantee will be released if in connection therewith the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions provided for in the Indenture relating to such transaction have been complied with. In addition, the Guarantee of a Guarantor will be released upon (i) the designation by the Company of such Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in accordance with the provisions of the Indenture; (ii) the release or discharge of any Guarantee or Indebtedness that resulted in the creation after the Issue Date of the Guarantee pursuant to the covenant described under “— Certain Covenants — Future Guarantors”; or (iii) the Company’s exercise of its Legal Defeasance option or its Covenant Defeasance option as described under “— Legal Defeasance and Covenant Defeasance” or if the Company’s obligations under the Indenture are discharged in accordance with the terms of the Indenture. Upon the release of a Guarantor from its Guarantee, such Guarantor will also be automatically and unconditionally released from its obligations under the Security Documents.

Ranking

Senior Indebtedness versus the Notes.

The indebtedness evidenced by these Notes and the Guarantees will be senior indebtedness of the Company or the applicable Guarantor, as the case may be, and will rank pari passu in right of payment to the existing and future senior obligations of the Company and the Guarantors, as the case may be, and, other than the Unsecured Guarantors, will be secured by the Collateral, which Collateral will be shared on an equal and ratable basis with any Other Pari Passu Lien Obligations incurred thereafter. The obligations under the Notes, the Indenture, the Guarantees (other than the Unsecured Guarantees) and any Other Pari Passu Lien Obligations will have a first-priority security interest with respect to the Notes Priority Collateral and will have a second-priority security interest with respect to the ABL Priority Collateral. Obligations under the Credit Agreement and any other Lenders Debt will also be secured by the Collateral. The obligations under the Credit Agreement and any other Lenders Debt will have a first-priority security interest with respect to the ABL Priority Collateral and will have a second-priority security interest with respect to the Notes Priority Collateral. Such security interests are described under “— Security for the Notes.” The phrase “in right of payment” refers to the contractual ranking of a particular Obligation, regardless of whether an Obligation is secured. The Notes will be guaranteed by the Guarantors.

The Notes are senior secured obligations of the Company. The indebtedness evidenced by the Notes and the Guarantees will be effectively subordinated to (i) the Company’s and the Guarantors’ existing and future Indebtedness and obligations that are secured by first-priority liens on the ABL Priority Collateral, including indebtedness under the Credit Agreement, and (ii) any existing and future indebtedness that is secured by permitted liens on assets that do not constitute Collateral, to the extent of the value of such assets. As of December 31, 2013:

(1) the Company had approximately $428.6 million of total indebtedness outstanding (including the Notes);

(2) the Guarantors had approximately $34.4 million of total indebtedness outstanding (excluding the Guarantees of the Notes), substantially all of which is secured; and

(3) the Company and the Guarantors had approximately $67.0 million of secured debt available for borrowing as additional senior secured debt under the Credit Agreement.

Liabilities of Subsidiaries versus the Notes

All of the Company’s operations are conducted through its Subsidiaries. As described above under “— Guarantees” and below under “— Certain Covenants — Future Guarantors”, Guarantees may be released under certain circumstances. In addition, future Subsidiaries of the Company may not be required to guarantee the Notes. Claims of creditors of such non-guarantor Subsidiaries, including trade creditors and creditors holding Indebtedness or Guarantees issued by such non-guarantor Subsidiaries, and claims of preferred stockholders of such non-guarantor Subsidiaries generally will have priority with respect to the assets and earnings of such non-guarantor Subsidiaries over the claims of the Company’s creditors, including Holders of the Notes. Accordingly, the Notes will be effectively subordinated to creditors (including trade creditors) and preferred stockholders, if any, of such non-guarantor Subsidiaries.

Although the Indenture limits the incurrence of Indebtedness and preferred stock by certain of the Company’s Subsidiaries, such limitation is subject to a number of significant qualifications. Moreover, the Indenture does not impose any limitation on the incurrence by such Subsidiaries of liabilities that are not considered Indebtedness under the Indenture. See “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”.

Security for the Notes

The Notes and the Guarantees (other than the Unsecured Guarantees) will have the benefit of the Collateral, which will consist of (i) the Notes Priority Collateral, as to which the Holders of the Notes and holders of any Other Pari Passu Lien Obligations will have a first-priority security interest (subject to Permitted Collateral Liens) and the Bank Lenders and the other holders of Lenders Debt will have a second-priority security interest, and (ii) the ABL Priority Collateral as to which the Bank Lenders and the other holders of Lenders Debt will have a first-priority security interest and Holders of the Notes and holders of any Other Pari Passu Lien Obligations will have a second-priority security interest (subject to Permitted Liens).

 

33

---

Table of Contents

The Company and the Guarantors will be able to incur additional Indebtedness in the future which could share in the Collateral. The amount of all such additional Indebtedness will be limited by the covenants disclosed under “— Certain Covenants — Limitation on Liens” and “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness.” Under certain circumstances the amount of such additional Secured Indebtedness could be significant. See “Risk factors — Risk Factors related to the Notes, the Collateral and this Offering — Despite our current levels of debt, we may still incur substantially more debt ranking senior or equal in right of payment with the Notes, including secured debt, which would increase the risks described herein.”

Notes Priority Collateral

The Notes Priority Collateral is pledged as collateral to the Notes Collateral Agent for the benefit of the Trustee, the Notes Collateral Agent, the Holders of the Notes and the holders of any future Other Pari Passu Lien Obligations (if any). The Notes, Guarantees (other than the Unsecured Guarantees) and Other Pari Passu Lien Obligations (if any) will be secured by a first-priority lien on and security interest in the Notes Priority Collateral, subject to Permitted Collateral Liens. The Notes Priority Collateral means the portion of the Collateral as to which the Notes have a priority security interest relative to Lenders Debt and will generally consist of the following, whether now owned or hereafter acquired: (i) all of the equity interests of each material Restricted Subsidiary held by the Company or any Guarantor (which, in the case of any first-tier Foreign Subsidiary, is limited to 65% of the equity interests of such first-tier Foreign Subsidiary (and none of the stock of any Subsidiary of any first-tier Foreign Subsidiary) provided that, for purposes of this clause (i), a Pass-Through Foreign Holdco shall be treated as a first-tier Foreign Subsidiary), (ii) equipment, equity interests of each limited liability company, limited partnership or other business entity that is a Restricted Subsidiary constituting general intangibles, investment property, material fee-owned real property and intercompany notes of the Company and the Guarantors (other than the Unsecured Guarantors), (iii) a substantial portion of the other assets of the Company and the Guarantors (other than the Unsecured Guarantors) and (iv) all proceeds of the foregoing and certain assets related thereto, in each case other than the ABL Priority Collateral and the Excluded Assets (all of the foregoing assets are collectively referred to as the “Notes Priority Collateral”).

In addition to the limitations described below under “— Limitations on Stock Collateral,” the Notes Priority Collateral will not include (i) the ABL Priority Collateral, (ii) the Excluded Assets, and (iii) those assets as to which the Notes Collateral Agent reasonably determines that the costs and/or burden of obtaining such a security interest outweigh the benefits to be afforded thereby.

Subject to Permitted Collateral Liens, as of the Issue Date, only the Notes and the Guarantees (other than the Unsecured Guarantors) will have the benefit of the first-priority security interest in the Notes Priority Collateral. Except for Indebtedness secured by Permitted Collateral Liens (including, subject to terms described herein, Indebtedness constituting Additional Notes and Other Pari Passu Lien Obligations), no other Indebtedness incurred by the Company or any Guarantor may share in the first-priority security interest in the Notes Priority Collateral.

The Company and the Guarantors (other than in respect of the Unsecured Guarantees) granted a second-priority lien on and security interest in the Notes Priority Collateral to the Bank Collateral Agent for the benefit of the Bank Lenders and the other holders of Lenders Debt, which initially consisted of the loans outstanding under the Credit Agreement made by the Bank Lenders, obligations with respect to letters of credit issued under the Credit Agreement, certain hedging and cash management obligations incurred with the Bank Lenders or their Affiliates and any other obligations under the Credit Agreement or constituting Lenders Debt. Certain additional Indebtedness that is incurred by the Company or any Guarantor in compliance with the terms of the Indenture may also be given a Lien on and security interest in the Notes Priority Collateral that ranks junior to the Lien of the Notes Collateral Agent for the benefit of the Holders of the Notes and junior to the Lien of the Bank Collateral Agent for the benefit of the Bank Lenders. Except as provided in the Intercreditor Agreement, holders of such junior liens will not be able to take any enforcement action with respect to the Notes Priority Collateral so long as any Notes are outstanding. Subject to the terms of the Security Documents, the Company and the Guarantors will have the right to remain in possession and retain exclusive control of the Notes Priority Collateral to freely operate the Notes Priority Collateral and to collect, invest and dispose of any income therefrom.

ABL Priority Collateral

The Notes, the Guarantees (other than the Unsecured Guarantees) and any Other Pari Passu Lien Obligations are secured by a second-priority lien on and security interest in the ABL Priority Collateral (subject to Permitted Liens). The ABL Priority Collateral will generally consist of the following assets of the Company and the Guarantors (other than the Unsecured Guarantors) (other than Excluded Assets) whether now owned or hereafter acquired:

(1) all accounts (as defined in the Uniform Commercial Code), and any and all supporting obligations in respect thereof;

(2) all books and records (including all records indicating, summarizing or evidencing the assets (including the ABL Priority Collateral) or liabilities or relating to the business operations or financial condition of the Company and each Guarantor, and all of the Company’s and each Guarantor’s goods or general intangibles related to such information);

(3) all general intangibles (as defined in the Uniform Commercial Code) (including payment intangibles, contract rights, rights to payment, proprietary rights, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents, trade names, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty or licensing agreements, infringement claims, computer programs, information contained on computer disks or tapes, software, literature, reports, catalogs, money, deposit accounts, insurance premium rebates, tax refunds, and tax refund claims), and any and all supporting obligations in respect thereof;

 

34

---

Table of Contents

(4) all inventory, including goods held for sale or lease or to be furnished under a contract of service, goods that are leased by the Company or a Guarantor as lessor, goods that are furnished by the Company or a Guarantor under a contract of service, and raw materials, work in process or materials used or consumed in the business of the Company or any Guarantor;

(5) all investment property (including securities, whether certificated or uncertificated, security entitlements, securities accounts, commodity contracts or commodity accounts, but excluding the stock of the Company, each Guarantor,. and each of their respective subsidiaries);

(6) all letters of credit, letter of credit rights, instruments, promissory notes, drafts, documents and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all supporting obligations in respect thereof;

(7) money or other assets of the Company and each Guarantor that arise from or relate to any collateral listed in clauses (1) through (4) above that now or hereafter come into the possession, custody or control of any of the Bank Lenders or the agent for such Bank Lenders (or any successor thereto); and

(8) the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance covering any or all of the foregoing, and any and all assets of the type described in clauses (1) through (6) above, money, deposit accounts or other tangible or intangible property resulting from the sale, exchange, collection, or other disposition of any of the foregoing, or any portion thereof or interest therein, and the proceeds thereof; provided, however, that the ABL Priority Collateral shall not include any Notes Priority Collateral (all of the foregoing assets, other than the assets described in clause (3), are collectively referred to as the “ABL Priority Collateral”).

The Company or any Guarantor may grant an additional Lien on any property or asset that constitutes ABL Priority Collateral in order to secure any obligation permitted to be incurred pursuant to the Indenture. Any such additional Lien may be a Permitted Lien, a second-priority Lien that will rank pari passu with the second-priority Lien securing the Notes or a lien that will rank junior to the second-priority Lien securing the Notes.

Limitations on stock collateral

The Capital Stock and other securities of a Subsidiary of the Company that are owned by the Company or any Guarantor will constitute Notes Priority Collateral only to the extent that such Capital Stock and other securities can secure the Notes without Rule 3-16 of Regulation S-X under the Securities Act (or any other U.S. federal law, rule or regulation) requiring separate financial statements of such Subsidiary to be filed with the SEC (or any other U.S. federal governmental agency). In the event that Rule 3-16 of Regulation S-X under the Securities Act requires or is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other governmental agency) of separate financial statements of any Subsidiary due to the fact that such Subsidiary’s Capital Stock and other securities secure the Notes, then the Capital Stock and other securities of such Subsidiary shall automatically be deemed not to be part of the Notes Priority Collateral (but only to the extent necessary to not be subject to such requirement). In such event, the Security Documents may be amended or modified, without the consent of any Holder of Notes, to the extent necessary to release the first-priority security interests in the Capital Stock and other securities that are so deemed to no longer constitute part of the Notes Priority Collateral.

In the event that Rule 3-16 of Regulation S-X under the Securities Act is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Capital Stock and other securities to secure the Notes in excess of the amount then pledged without the filing with the SEC (or any other U.S. federal governmental agency) of separate financial statements of such Subsidiary, then the Capital Stock and other securities of such Subsidiary shall automatically be deemed to be a part of the Notes Priority Collateral (but only to the extent necessary to not be subject to any such financial statement requirement). In such event, the Security Documents may be amended or modified, without the consent of the Trustee, the Notes Collateral Agent, any Holder of Notes or holder of Other Pari Passu Lien Obligations, to the extent necessary to subject to the Liens under the Security Documents such additional Capital Stock and other securities.

Security documents and certain related intercreditor provisions

The Company, the Guarantors (other than in respect of the Unsecured Guarantors), the Notes Collateral Agent (on behalf of the Holders of the Notes and the holders of any Other Pari Passu Lien Obligations) and the Trustee entered into Security Documents creating and establishing the terms of the security interests that secure the Notes and the Note Guarantees and the Other Pari Passu Lien Obligations. These security interests secure the payment and performance when due of all of the obligations of the Company and the Guarantors under the Notes, the Indenture, the Note Guarantees, the Security Documents and any applicable Other Pari Passu Lien Obligations, as provided in the Security Documents. The Trustee, Notes Collateral Agent, each Holder of the Notes and each other holder of, or obligee in respect of, any obligations in respect of the Notes outstanding at such time are referred to collectively as the “Noteholder Secured Parties.”

 

35

---

Table of Contents

Intercreditor Agreement

The Company, the applicable Guarantors, the Notes Collateral Agent and the Bank Collateral Agent entered into the Intercreditor Agreement on August 7, 2013. Although the Holders of the Notes are not party to the Intercreditor Agreement, by their acceptance of the Notes they agree to be bound thereby. Pursuant to the terms of the Intercreditor Agreement, the Notes Collateral Agent will determine the time and method by which the security interests in the Notes Priority Collateral will be enforced and the Bank Collateral Agent will determine the time and method by which the security interests in the ABL Priority Collateral will be enforced.

The Indenture provides that the Intercreditor Agreement may be amended from time to time at the sole request of the Company, without the consent of the Notes Collateral Agent, the Holders of the Notes, the Bank Collateral Agent or the holders of Lenders Debt (except as required under the documentation governing any Lenders Debt), to add other parties holding Other Pari Passu Lien Obligations or other Indebtedness, in each case, to the extent permitted to be incurred under, and secured solely by Liens permitted (in respect of their existence and the priority accorded to such Liens under the Intercreditor Agreement) by, the Indenture and other applicable agreements, as described under “— Modification of the Indenture.”

The aggregate amount of the Indebtedness secured by the ABL Priority Collateral may, subject to the limitations set forth in the Indenture, be increased. All or a portion of the Obligations secured by the ABL Priority Collateral consists or may consist of Indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to time may be increased or reduced and subsequently reborrowed and such Indebtedness may, subject to the limitations set forth in the Indenture, be increased, extended, renewed, replaced, restated, supplemented, restructured, repaid, refunded, refinanced or otherwise amended or modified from time to time, all without affecting the subordination of the Liens held by the Notes Collateral Agent or the provisions of the Intercreditor Agreement defining the relative rights of the parties thereto. The Lien priorities provided for in the Intercreditor Agreement will not be altered or otherwise affected by any amendment, modification, supplement, extension, increase, replacement, renewal, restatement or refinancing of either the Obligations secured by the ABL Priority Collateral or the Obligations secured by the Notes Priority Collateral, by the release of any Collateral or of any guarantees securing any secured Obligations or by any action that any representative or secured party may take or fail to take in respect of any Collateral.

No action with respect to the ABL Priority Collateral

The Intercreditor Agreement provides that none of the Noteholder Secured Parties may commence any judicial or non-judicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to take possession of, exercise or seek to exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in or realize upon, or take any other enforcement action available to it in respect of, the ABL Priority Collateral under any Security Document, applicable law or otherwise, or commence (or join any creditor in commencing) an involuntary insolvency proceeding against the Company or any Guarantor, in each case at any time prior to the Discharge of ABL Obligations. Only the Bank Collateral Agent shall be entitled to take any such actions or exercise any such remedies prior to the Discharge of ABL Obligations. Notwithstanding the foregoing, the Notes Collateral Agent may, but shall have no obligation to, take all such actions (not adverse to the priority status of the Lien of the Bank Collateral Agent on the ABL Priority Collateral, or the rights of the Bank Collateral Agent to exercise rights, powers, and/or remedies in respect thereof) it determines to perfect (or render opposable) or continue the perfection of the Holders’ second-priority security interest in the ABL Priority Collateral. The Bank Collateral Agent is subject to similar restrictions with respect to its ability to enforce the second-priority security interest in the Notes Priority Collateral held by the Bank Lenders and the other holders of Lenders Debt.

No duties of Bank Collateral Agent

The Intercreditor Agreement provides that neither the Bank Collateral Agent nor any holder of any Lenders Debt secured by any ABL Priority Collateral will have any duties or other obligations to any Noteholder Secured Party with respect to the ABL Priority Collateral, other than to serve as non-fiduciary agent for perfection with respect to certain ABL Priority Collateral and to transfer to the Notes Collateral Agent (i) any proceeds of any such ABL Priority Collateral in which the Notes Collateral Agent continues to hold a security interest remaining following any sale, transfer or other disposition of such ABL Priority Collateral (in each case, unless the holders’ Lien on all such ABL Priority Collateral is terminated and released prior to or concurrently with such sale, transfer, disposition, payment or satisfaction), following the Discharge of ABL Obligations, or (ii) if the Bank Collateral Agent is in possession of all or any part of such ABL Priority Collateral after the Discharge of ABL Obligations, such ABL Priority Collateral or any part thereof remaining, in each case without representation or warranty on the part of the Bank Collateral Agent or any such holder of Lenders Debt. In addition, the Intercreditor Agreement provides that, until the Discharge of ABL Obligations, the Bank Collateral Agent will be entitled, for the benefit of the holders of the Lenders Debt, to sell, transfer or otherwise dispose of or deal with such ABL Priority Collateral without regard to any second-priority security interest therein or any rights to which any Noteholder Secured Party would otherwise be entitled as a result of such second-priority security interest. Without limiting the foregoing, the Notes Collateral Agent agreed in the Intercreditor Agreement and each holder of the Notes will agree or has agreed by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations will agree or has agreed by its acceptance of such Other Pari Passu Lien Obligations, that neither the Bank Collateral Agent nor any holder of any Lenders Debt secured by any ABL Priority Collateral will have any duty or obligation first to marshal or realize upon the ABL Priority Collateral, or to sell, dispose of or otherwise liquidate all or any portion of the ABL Priority Collateral, in any manner that would maximize the return to the Noteholder Secured Parties, notwithstanding that the order and timing of any such realization, sale, disposition or liquidation may affect the amount of proceeds actually received by the Noteholder Secured Parties from such realization, sale, disposition or liquidation. The Intercreditor Agreement has similar provisions regarding the duties owed to the Bank Collateral Agent and the holders of any Lenders Debt by the Noteholder Secured Parties with respect to the Notes Priority Collateral.

 

36

---

Table of Contents

The Intercreditor Agreement additionally provides that the Notes Collateral Agent will waive or has waived, and each Holder of the Notes will waive by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations will waive by its acceptance of such Other Pari Passu Lien Obligations, any claim that may be had against the Bank Collateral Agent or any holder of any Lenders Debt arising out of (i) any actions which the Bank Collateral Agent or such holder of Lenders Debt take or omit to take (including, actions with respect to the creation, perfection or continuation of Liens on any ABL Priority Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of the ABL Priority Collateral and actions with respect to the collection of any claim for all or any part of the Lenders Debt from any account debtor, guarantor or any other party), or the valuation, use, protection or release of any security for such Lenders Debt, (ii) any election by the Bank Collateral Agent or such holder of Lenders Debt, in any proceeding instituted under Title 11 of the United States Code of the application of Section 1111(b) of Title 11 of the United States Code (or any similar provision under the insolvency laws of any other jurisdiction) or (iii) any borrowing of, or grant of a security interest or administrative expense priority under Section 364 of Title 11 of the United States Code (or any similar provision under the insolvency laws of any other jurisdiction) to, the Company or any of its Subsidiaries as debtor-in-possession. The Bank Collateral Agent and holders of Lenders Debt will agree to waive similar claims with respect to the actions of any of the Noteholder Secured Parties.

No interference; payment over; reinstatement

The Notes Collateral Agent agreed in the Intercreditor Agreement and each Holder of the Notes agreed or will agree by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations will agree by its acceptance of such Other Pari Passu Lien Obligations, that:

(1) it will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Lien that the Holders of the Notes or the holders of any Other Pari Passu Lien Obligations have on the ABL Priority Collateral equal with, or to give the Notes Collateral Agent, the Holders of the Notes or the holders of any Other Pari Passu Lien Obligations any preference or priority relative to, any Lien that the holders of any Lenders Debt secured by any ABL Priority Collateral have with respect to such ABL Priority Collateral;

(2) it will not challenge or question in any proceeding the validity or enforceability of any first-priority security interest in the ABL Priority Collateral (and the related security documents), the validity, attachment, enforceability, perfection or priority of any Lien held by the Bank Collateral Agent or any of the holders of any Lenders Debt secured by any ABL Priority Collateral, or the validity or enforceability of the priorities, rights or duties established by or other provisions of the Intercreditor Agreement;

(3) it will not take or cause to be taken any action the purpose or effect of which is, or could be, to contest, protest, object to, interfere with, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any action to enforce or collect (or attempt to collect) Lenders Debt or any sale, transfer or other disposition of the ABL Priority Collateral by the Bank Collateral Agent or the holders of any Lenders Debt secured by such ABL Priority Collateral;

(4) it will have no right to (i) direct the Bank Collateral Agent or any holder of any Lenders Debt secured by any ABL Priority Collateral to exercise any right, remedy or power or (ii) consent to the exercise by the Bank Collateral Agent or any holder of any Lenders Debt secured by the ABL Priority Collateral of any right, remedy or power with respect to such ABL Priority Collateral;

(5) it will not institute any suit or assert in any suit, bankruptcy, insolvency or other proceeding any claim against the Bank Collateral Agent or any holder of any Lenders Debt secured by any ABL Priority Collateral seeking damages from or other relief by way of specific performance, instructions or otherwise with respect to, and neither the Bank Collateral Agent nor any holders of any Lenders Debt secured by any ABL Priority Collateral will be liable for, any action taken or omitted to be taken by the Bank Collateral Agent or such lenders with respect to such ABL Priority Collateral;

(6) it will not seek, and will waive any right, to have any ABL Priority Collateral or any part thereof marshaled upon any foreclosure or other disposition of such ABL Priority Collateral;

(7) it will not attempt, directly or indirectly, whether by judicial proceedings or otherwise, to challenge the enforceability of any provision of the Intercreditor Agreement;

(8) it will not object to any waiver or forbearance by the Bank Collateral Agent from pursuing any right of enforcement with respect to the ABL Priority Collateral; and

(9) that no covenant, agreement or restriction contained in the Indenture or the Security Documents will be deemed to restrict in any way the rights and remedies of the Bank Collateral Agent or any holder of Lenders Debt with respect to the ABL Priority Collateral as set forth in the Intercreditor Agreement and the Credit Agreement security documents.

The Bank Collateral Agent and the holders of Lenders Debt agreed or will agree to similar limitations with respect to their rights in the Notes Priority Collateral and their ability to bring a suit against the Notes Collateral Agent, the Holders of the Notes or the holders of any Other Pari Passu Lien Obligations.

 

37

---

Table of Contents

The Notes Collateral Agent agreed in the Intercreditor Agreement and each Holder of the Notes agreed or will agree by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations will agree by its acceptance of such Other Pari Passu Lien Obligations, that if it obtains possession of any ABL Priority Collateral or realizes any proceeds or payment in respect of the ABL Priority Collateral, pursuant to any Security Document or by the exercise of any rights available to it under applicable law or in any bankruptcy, insolvency or similar proceeding or through any other exercise of remedies, at any time prior to the Discharge of ABL Obligations, then it will hold such ABL Priority Collateral, proceeds or payment in trust for the Bank Collateral Agent and the holders of any Lenders Debt secured by such ABL Priority Collateral and transfer such ABL Priority Collateral, proceeds or payment, as the case may be, to the Bank Collateral Agent reasonably promptly after obtaining actual knowledge or notice from the Bank Collateral Agent that it has possession of such ABL Priority Collateral proceeds or payment prior to the receipt of such ABL Priority Collateral proceeds or payment or as a result of the Notes Collateral Agent’s, the Holders’ or the holders of Other Pari Passu Lien Obligations’ collusion with any Grantor in violating the rights of the Bank Collateral Agent or any holder of Lenders Debt (within the meaning of Section 9-332 of the Uniform Commercial Code). The Notes Collateral Agent, each Holder of the Notes, and each holder of any Other Pari Passu Lien Obligations, agreed or will further agree that if, at any time, all or part of any payment with respect to any Lenders Debt secured by any ABL Priority Collateral previously made shall be rescinded for any reason whatsoever (including an order or judgment for disgorgement of a preference under the Bankruptcy Code, or any other insolvency law, or settlement of any claim in respect thereof), it will promptly pay over to the Bank Collateral Agent any payment received by it in respect of any such ABL Priority Collateral and shall promptly turn any such ABL Priority Collateral then held by it over to the Bank Collateral Agent, and the provisions set forth in the Intercreditor Agreement will be reinstated as if such payment had not been made, until the payment and satisfaction in full of such Lenders Debt. The Bank Collateral Agent and the holders of Lenders Debt will be subject to similar limitations with respect to the Notes Priority Collateral and any proceeds or payments in respect of any Notes Priority Collateral. Any proceeds of Collateral, received prior to an issuance of any notice that an event of default has occurred under the Credit Agreement or the Indenture (unless a bankruptcy or insolvency event of default then exists), whether or not deposited under control agreements, which are used by the Company or any Guarantor to acquire other property which is Collateral shall not (solely as between the Bank Lenders and the holders of Lenders Debt and the Noteholder Secured Parties) be treated as proceeds of Collateral for purposes of determining the relative priorities in the Collateral which was so acquired. In addition, unless and until the Discharge of ABL Obligations occurs, the Notes Collateral Agent, the Holders of the Notes and the holders of any Other Pari Passu Lien Obligations consented or will consent to the application, prior to the receipt by the Bank Collateral Agent of a notice from the Notes Collateral Agent that an Event of Default has occurred under the Indenture, of cash or other proceeds of Collateral, deposited under deposit account control agreements to the repayment of Lenders Debt pursuant to the Credit Agreement.

Entry upon premises by Bank Collateral Agent and holder of Lenders Debt

The Intercreditor Agreement provides that if the Bank Collateral Agent takes any enforcement action with respect to the ABL Priority Collateral, the Noteholder Secured Parties, among other things, (i) will cooperate with the Bank Collateral Agent in its efforts to enforce its security interest in the ABL Priority Collateral and to finish any work-in-process and assemble the ABL Priority Collateral, (ii) will not hinder or restrict in any respect the Bank Collateral Agent from enforcing its security interest in the ABL Priority Collateral or from finishing any work-in-process or assembling the ABL Priority Collateral, and (iii) will, subject to the rights of any landlords under real estate leases, grant to the Bank Collateral Agent, its employees, agents, advisers and representatives, at the sole cost and expense of the Bank Collateral Agent and the holders of Lenders Debt, an irrevocable, nonexclusive right to have access to, and a royalty-free and rent-free license and right to use the Notes Priority Collateral (including, equipment, fixtures, intellectual property, general intangibles and real property and equipment, processors, computers and other machinery related to the storage or processing of records, documents or files), for a period not to exceed 180 days after the taking of such enforcement action, in order to assemble, inspect, copy or download information stored on, take actions to perfect its Lien on, process raw materials or work-in-process into finished inventory, take possession of, move, package, prepare and advertise for sale or disposition, sell (by public auction, private sale or a “store closing,” “going out of business” or similar sale, whether in bulk, in lots or to customers in the ordinary course of business or otherwise, and which sale may include augmented inventory of the same type sold in the business of the Company), store, collect, take reasonable actions to protect, secure and otherwise enforce the rights of the Bank Collateral Agent in and to the ABL Priority Collateral, or otherwise deal with the ABL Priority Collateral, in each case without the involvement of or interference by the Notes Collateral Agent, any Holder of the Notes or any holder of any Other Pari Passu Lien Obligations; provided, however, that nothing contained in the Intercreditor Agreement will restrict the rights of the Notes Collateral Agent from selling, assigning or otherwise transferring any Notes Priority Collateral prior to the expiration of such 180-day period (as it may be extended in the manner described below) if the purchaser, assignee or transferee thereof agrees in writing to be bound by the provisions of the Intercreditor Agreement. If any stay or other order prohibiting the exercise of remedies with respect to the ABL Priority Collateral or the liquidation or sale of any ABL Priority Collateral has been entered by a court of competent jurisdiction, such 180-day period shall be tolled during the pendency of any such stay or other order, provided that upon lifting of the automatic stay, if there are fewer than 90 days remaining in such 180-day period, then such 180-day period shall be extended so that the Bank Collateral Agent and the holders of the Lenders Debt have 90 days upon lifting of the automatic stay. If the Bank Collateral Agent conducts a public auction or private sale of the ABL Priority Collateral at any of the real property included within the Notes Priority Collateral, the Bank Collateral Agent shall provide the Notes Collateral Agent with reasonable notice and use reasonable efforts to hold such auction or sale in a manner which would not unduly disrupt the Notes Collateral Agent’s use of such real property.

 

38

---

Table of Contents

During the period of actual occupation, use or control by the Bank Collateral Agent or the holders of Lenders Debt or their agents or representatives of any Notes Priority Collateral, the Bank Collateral Agent and the holders of Lenders Debt will (i) be responsible for the ordinary course third-party expenses related thereto, including costs with respect to heat, light, electricity and water with respect to that portion of any premises so used or occupied (provided that all amounts so paid shall be added to the outstanding amount of Lenders Debt in accordance with the provisions of the Credit Agreement), and (ii) be obligated to repair at their expense any physical damage (ordinary wear and tear excepted) to such Notes Priority Collateral or other assets or property resulting from such occupancy, use or control, and to leave such Notes Priority Collateral or other assets or property in substantially the same condition as it was at the commencement of such occupancy, use or control, ordinary wear and tear excepted. In the event, and only in the event, that in connection with its use of some or all of the premises constituting Notes Priority Collateral, the Bank Collateral Agent requires the services of any employees of the Company or any of its Subsidiaries, the Bank Collateral Agent shall pay directly to any such employees the appropriate, allocated wages of such employees, if any, during the time periods that the Bank Collateral Agent requires their services (provided that all amounts so paid shall be added to the outstanding amount of the Lenders Debt in accordance with the provisions of the Credit Agreement). The Notes Collateral Agent will agree not to sell or dispose of any of the Notes Priority Collateral during this 180-day period unless the buyer agrees in writing to acquire the Notes Priority Collateral subject to the rights of Bank Collateral Agent as described above, and such rights of the Bank Collateral Agent during such period shall continue notwithstanding such foreclosure, sale or other disposition by the Notes Collateral Agent. Notwithstanding the foregoing, in no event shall the Bank Collateral Agent or the holders of Lenders Debt have any liability to the Noteholder Secured Parties pursuant to the Intercreditor Agreement as a result of any condition (including any environmental condition, claim or liability) on or with respect to the Notes Priority Collateral existing prior to the date of the exercise by the Bank Collateral Agent or the holders of Lenders Debt of their rights under the Intercreditor Agreement and the Bank Collateral Agent and the holders of Lenders Debt will not have any duty or liability to maintain the Notes Priority Collateral in a condition or manner better than that in which it was maintained prior to the use thereof by them, or for any diminution in the value of the Notes Priority Collateral that results solely from ordinary wear and tear resulting from the use of the Notes Priority Collateral by such persons in the manner and for the time periods specified under the Intercreditor Agreement or by the absence of the ABL Priority Collateral therefrom. Without limiting the rights granted in the Intercreditor Agreement, the Bank Collateral Agent and the holders of Lenders Debt will cooperate with the Noteholder Secured Parties in connection with any efforts made by the Noteholder Secured Parties to sell the Notes Priority Collateral.

Agreements with respect to bankruptcy or insolvency proceedings

If the Company or any of its Subsidiaries becomes subject to a case under the Bankruptcy Code (or any applicable provision under any other insolvency law) and, as debtor(s)-in-possession, moves for approval of financing (“DIP Financing”) to be provided by one or more lenders (the “DIP Lenders”) under Section 364 of the Bankruptcy Code (or any applicable provision under any other insolvency law) or the use of cash collateral with the consent of the DIP Lenders under Section 363 of the Bankruptcy Code (or any applicable provision under any other insolvency law), the Notes Collateral Agent agrees in the Intercreditor Agreement and each Holder agrees or will agree by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations agrees or will agree by its acceptance of such Other Pari Passu Lien Obligations, that it will consent to and raise no objection to any such financing or to the Liens on the ABL Priority Collateral securing the same (“DIP Financing Liens”) or to any use of cash collateral that constitutes ABL Priority Collateral (and, to the extent that such DIP Financing Liens are senior to, or rank equal with, the Liens of such Lenders Debt in such ABL Priority Collateral, the Notes Collateral Agent will, for themselves and on behalf of the Holders of the Notes, subordinate the Liens of the Noteholder Secured Parties in such ABL Priority Collateral to the Liens of the Lenders Debt in such ABL Priority Collateral and the DIP Financing Liens), so long as the Noteholder Secured Parties retain Liens on all the Notes Priority Collateral existing as of the date of commencement of such proceeding, including proceeds thereof arising after the commencement of such proceeding, with the same priority as existed prior to the commencement of the case under the Bankruptcy Code (or any applicable provision under any other insolvency law). If the holders of the Lenders Debt offer to provide a DIP Financing that complies with the requirements set forth above, and the Company or such Subsidiary desires to obtain authorization to obtain such DIP Financing, the Holders of the Notes will not offer to provide or support any DIP Financing competing with the DIP Financing that is offered by the holders of the Lenders Debt. If Liens of the Bank Collateral Agent on the ABL Priority Collateral are subject to a surcharge or are subordinated to an administrative priority claim (including fees owed to professionals or to the Office of the United States Trustee), then the Liens of the Notes Collateral Agent on the ABL Priority Collateral will continue to be subordinate to the Liens of the Bank Collateral Agent on such ABL Priority Collateral. The Bank Collateral Agent and the holders of the Lenders Debt will agree not to offer to provide any DIP Financing that does not comply with the foregoing requirements. Similar provisions will be applicable with respect to any DIP Financing secured by Liens on the Notes Priority Collateral.

The Trustee and the Notes Collateral Agent agree in the Intercreditor Agreement and each Holder of the Notes agrees by its acceptance of the Notes, and each holder of any Other Pari Passu Lien Obligations will agree by its acceptance of such Other Pari Passu Lien Obligations, that it will not object to or oppose a sale or other disposition of any ABL Priority Collateral (or any portion thereof) under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code (or any applicable provision under any other insolvency law) if the Bank Collateral Agent and the holders of Lenders Debt shall have consented to such sale or disposition of such ABL Priority Collateral. The Bank Collateral Agent and the holders of Lenders Debt will agree to similar limitations with respect to their right to object to a sale of Notes Priority Collateral.

Adequate protection

None of the Notes Collateral Agent, the Holders of the Notes or the holders of Other Pari Passu Lien Obligations shall oppose or contest (or support the opposition or contestation of any other Person) in any insolvency or liquidation proceeding (and shall be deemed to have irrevocably, absolutely and unconditionally waived any right to do so) (i) any motion or other request by the Bank

 

39

---

Table of Contents

Collateral Agent or the holders of Lenders Debt for adequate protection of the Bank Collateral Agent’s Liens upon the ABL Priority Collateral, including any claim of the Bank Collateral Agent or the holders of Lenders Debt to post-petition interest or otherwise as a result of their Lien on the ABL Priority Collateral (so long as any post-petition interest paid as a result thereof is not paid from the proceeds of Notes Priority Collateral), request for the application of proceeds of ABL Priority Collateral to the Lenders Debt, and request for replacement or additional Liens on post-petition assets of the same type as the ABL Priority Collateral, or (ii) any objection by the Bank Collateral Agent or the holders of Lenders Debt to any motion, relief, action or proceeding based on the Bank Collateral Agent or the holders of Lenders Debt claiming a lack of adequate protection with respect to their Liens in the ABL Priority Collateral or request by the Bank Collateral Agent or the holders of Lenders Debt for relief from the automatic stay with respect to the ABL Priority Collateral. In addition, without limiting any other rights that the Bank Collateral Agent or any holders of the Lenders Debt may have, the Bank Collateral Agent, for itself and on behalf of holders of Lenders Debt, may seek adequate protection of its junior interest in the Notes Priority Collateral, subject to the provisions of the Intercreditor Agreement; provided that (x) the Notes Collateral Agent is granted adequate protection in the form of a replacement or additional Lien on post-petition assets of the same type as the Notes Priority Collateral and (y) such adequate protection required by the Bank Collateral Agent is in the form of a replacement or additional Lien on post-petition assets of the same type as the Notes Priority Collateral. Such Lien on post-petition assets of the same type as the Notes Priority Collateral, if granted to the Bank Collateral Agent, will be subordinated to the adequate protection Liens granted in favor of the Notes Collateral Agent on such post-petition assets and, if applicable, to the DIP Financing Liens of the Notes Collateral Agent or the Holders of the Notes or holders of Other Pari Passu Lien Obligations on such post-petition assets of the same type as the Notes Priority Collateral. If the Bank Collateral Agent, for itself and on behalf of the holders of Lenders Debt, seeks or requires (or is otherwise granted) adequate protection of its junior interest in the Notes Priority Collateral in the form of a replacement or additional Lien on the post-petition assets of the same type as the Notes Priority Collateral, then the Bank Collateral Agent, for itself and the holders of Lenders Debt, agrees that the Notes Collateral Agent shall also be granted a replacement or additional Lien on such post-petition assets as adequate protection of its senior interest in the Notes Priority Collateral and that the Bank Collateral Agent’s replacement or additional Lien shall be subordinated to the replacement or additional Lien of the Notes Collateral Agent on the same basis as the Liens of the Bank Collateral Agent on the Notes Priority Collateral are subordinated to the Liens of the Notes Collateral Agent on the Notes Priority Collateral under the Intercreditor Agreement; in that regard, the Bank Collateral Agent, for itself and the holders of Lenders Debt, further agrees that it will not accept any such replacement or additional Liens on such post-petition assets of the same type as the Notes Priority Collateral unless the Notes Collateral Agent shall also have received a replacement or additional Lien thereon as adequate protection of its senior interest in the Notes Priority Collateral that is superior to the additional or replacement Liens so granted to the Bank Collateral Agent. If the Bank Collateral Agent or any holder of Lenders Debt receives as adequate protection a Lien on post-petition assets of the same type as the ABL Priority Collateral, then such post-petition assets shall also constitute ABL Priority Collateral to the extent of any allowed claim of the Bank Collateral Agent and the holders of Lenders Debt secured by such adequate protection Lien and shall be subject to the Intercreditor Agreement. None of the Notes Collateral Agent, any Holder of the Notes or any holder of the Other Pari Passu Lien Obligations shall object to, oppose, or challenge any claim by the Bank Collateral Agent or any holder of the Lenders Debt for allowance in any bankruptcy or insolvency proceeding of Lenders Debt consisting of post-petition interest, fees or expenses.

Neither the Bank Collateral Agent nor any holder of Lenders Debt shall oppose or contest (or support the opposition or contestation of any other Person) in any insolvency or liquidation proceeding and shall be deemed to have irrevocably, absolutely and unconditionally waived any right to (i) any motion or other request by the Notes Collateral Agent, the Holders of the Notes or the holders of any Other Pari Passu Lien Obligations for adequate protection of the Notes Collateral Agent’s Liens upon any of the Notes Priority Collateral, including any claim of the Notes Collateral Agent, the Holders of the Notes or the holders of Other Pari Passu Lien Obligations to post-petition interest or otherwise as a result of their Lien on the Notes Priority Collateral (so long as any post-petition interest paid as a result thereof is paid solely from the proceeds of Notes Priority Collateral), request for the application of proceeds of Notes Priority Collateral to Obligations under the Notes or any Other Pari Passu Lien Obligations, and request for replacement or additional Liens on post-petition assets of the same type as the Notes Priority Collateral or (ii) any objection by the Notes Collateral Agent, the Holders of the Notes or the holders of Other Pari Passu Lien Obligations to any motion, relief, action or proceeding based on the Notes Collateral Agent, the Holders of the Notes or the holders of Other Pari Passu Lien Obligations claiming a lack of adequate protection with respect to Notes Collateral Agent’s Liens in the Notes Priority Collateral or request by the Notes Collateral Agent, the Holders of the Notes or the holders of Other Pari Passu Lien Obligations for relief from the automatic stay with respect to the Notes Priority Collateral. In addition, the Notes Collateral Agent, for itself and on behalf of the Holders of the Notes and the holders of Other Pari Passu Lien Obligations, may seek adequate protection of its junior interest in the ABL Priority Collateral, subject to the provisions of the Intercreditor Agreement; provided that (x) the Bank Collateral Agent is granted adequate protection in the form of a replacement or additional Lien on post-petition assets of the same type as the ABL Priority Collateral and (y) such adequate protection required by the Notes Collateral Agent is in the form of a replacement or additional Lien on post-petition assets of the same type as the ABL Priority Collateral. Such Lien on post-petition assets of the same type as the ABL Priority Collateral, if granted to the Notes Collateral Agent, will be subordinated to the adequate protection Liens granted in favor of the Bank Collateral Agent on such post-petition assets, and, if applicable, to the DIP Financing Liens of the Bank Collateral Agent or any other holder of Lenders Debt on such post-petition assets of the same type as the ABL Priority Collateral. If the Notes Collateral Agent, for itself and on behalf of the holder of Lenders Debt, seeks or requires (or is otherwise granted) adequate protection of its junior interest in the ABL Priority Collateral in the form of a replacement or additional Lien on the post-petition assets of the same type as the ABL Priority Collateral, then the Notes Collateral Agent, for itself, the Holders of the Notes and the holders of Other Pari Passu Lien Obligations, agrees that the Bank Collateral Agent shall also be granted a replacement or additional Lien on such post-petition assets as adequate protection of

 

40

---

Table of Contents

its senior interest in the ABL Priority Collateral and that the Notes Collateral Agent’s replacement or additional Lien shall be subordinated to the replacement or additional Lien of the Bank Collateral Agent on the same basis as the Liens of the Notes Collateral Agent on the ABL Priority Collateral are subordinated to the Liens of the Bank Collateral Agent on the ABL Priority Collateral under the Intercreditor Agreement; in that regard, the Notes Collateral Agent, for itself, the Holders of the Notes and the holders of Other Pari Passu Lien Obligations, further agrees that it will not accept any such replacement or additional Liens on such post-petition assets of the same type as the ABL Priority Collateral unless the Bank Collateral Agent shall also have received a replacement or additional Lien thereon as adequate protection of its senior interest in the ABL Priority Collateral that is superior to the additional or replacement Liens so granted to the Notes Collateral Agent. If the Notes Collateral Agent, any Holder of the Notes or any holder of Other Pari Passu Lien Obligations receives as adequate protection a Lien on post-petition assets of the same type as the Notes Priority Collateral, then such post-petition assets shall also constitute Notes Priority Collateral to the extent of any allowed claim of the Notes Collateral Agent, the Holders of the Notes and the holders of Other Pari Passu Lien Obligations secured by such adequate protection Lien and shall be subject to the Intercreditor Agreement.

Insurance

Unless and until written notice has been provided by the Bank Collateral Agent to the Notes Collateral Agent that the Discharge of ABL Obligations has occurred, as between the Bank Collateral Agent, on the one hand, and the Notes Collateral Agent, as the case may be, on the other hand, only the Bank Collateral Agent will have the right (subject to the rights of the Grantors under the security documents related to the Credit Agreement, the Indenture, the Security Documents and the documents related to the Other Pari Passu Lien Obligations) to adjust or settle any insurance policy or claim covering or constituting ABL Priority Collateral in the event of any loss thereunder and to approve any award granted in any condemnation or similar proceeding affecting the ABL Priority Collateral. Unless and until the Obligations under the Indenture and the Notes have been paid in full, as between the Bank Collateral Agent, on the one hand, and the Notes Collateral Agent, as the case may be, on the other hand, only the Notes Collateral Agent will have the right (subject to the rights of the Grantors under the security documents related to the Credit Agreement, the Indenture, the Security Documents and the documents related to the Other Pari Passu Lien Obligations) to adjust or settle any insurance policy covering or constituting Notes Priority Collateral in the event of any loss thereunder and to approve any award granted in any condemnation or similar proceeding solely affecting the Notes Priority Collateral. To the extent that an insured loss covers or constitutes both ABL Priority Collateral and Notes Priority Collateral, then the Bank Collateral Agent and the Notes Collateral Agent will work jointly and in good faith to collect, adjust or settle (subject to the rights of the Grantors under the security documents related to the Credit Agreement, the Indenture, the Security Documents and the documents related to the Other Pari Passu Lien Obligations) under the relevant insurance policy. If the Notes Collateral Agent receives any proceeds of any insurance policy in contravention of the Intercreditor Agreement or the Security Documents, it shall hold such proceeds in trust and pay over such proceeds to the Bank Collateral Agent. The Bank Collateral Agent agreed to similar turnover provisions.

Refinancings of the Credit Agreement and the Notes

The Obligations under the Credit Agreement and other Lenders Debt and the Obligations under the Indenture and the Notes and the Guarantees, and the obligations under any Other Pari Passu Lien Obligations, may be exchanged, replaced, refunded, refinanced, extended, renewed, restated, amended, supplemented or modified, in whole or in part, in each case, without notice to, or the consent of the Bank Collateral Agent or any holder of Lenders Debt or any Noteholder Secured Party (except to the extent notice or consent is otherwise required to permit the refinancing transaction under the Credit Agreement or any security document related thereto or the Indenture or the Security Documents), all without affecting the Lien priorities provided for in the Intercreditor Agreement; provided, however, that the holders or lenders of any such exchanged, replaced, refunded, refinanced, extended, renewed, restated, amended, supplemented or modified indebtedness (or an authorized agent or trustee on their behalf) bind themselves in writing to the terms of the Intercreditor Agreement pursuant to such documents or agreements (including amendments or supplements to the Intercreditor Agreement) as the Bank Collateral Agent or the Notes Collateral Agent, as the case may be, shall reasonably request.

In connection with any exchange, refunding, replacement, refinancing, extension, renewal, restatement, amendment, supplement or modification contemplated by the foregoing paragraph, the Intercreditor Agreement may be amended at the request and sole expense of the Company, and without the consent of either the Bank Collateral Agent or the Notes Collateral Agent, (i) to add parties (or any authorized agent or trustee therefor) providing any such exchange, refunding, replacement, refinancing, extension, renewal, restatement, amendment, supplement or modification Indebtedness, (ii) to establish that Liens on any Notes Priority Collateral securing such refinancing or replacement Indebtedness shall have the same priority (or junior priority) as the Liens on any Notes Priority Collateral securing the Indebtedness being refinanced or replaced and (iii) to establish that the Liens on any ABL Priority Collateral securing such refinancing or replacement indebtedness shall have the same priority (or junior priority) as the Liens on any ABL Priority Collateral securing the Indebtedness being refinanced or replaced, all on the terms provided for herein immediately prior to such refinancing or replacement.

Use of proceeds of ABL Priority Collateral

After the Discharge of ABL Obligations, the Trustee and Notes Collateral Agent, in accordance with the terms of the Intercreditor Agreement, the Indenture and the Security Documents, and any Other Pari Passu Lien Obligations, will distribute all cash proceeds (after payment of the costs of enforcement and collateral administration, including any amounts owed to the Trustee in its capacity as Trustee or the Notes Collateral Agent) of the ABL Priority Collateral received by it under the Security Documents for the ratable benefit of the Holders of the Notes and holders of any remaining Other Pari Passu Lien Obligations.

 

41

---

Table of Contents

Subject to the terms of the Security Documents, the Company and the Guarantors will have the right to remain in possession and retain exclusive control of the Collateral securing the Notes, the Guarantees and any Other Pari Passu Lien Obligations (other than any cash, securities, obligations, Cash Equivalents and other assets constituting part of the Collateral and deposited with the Notes Collateral Agent or the Bank Collateral Agent in accordance with the provisions of the Security Documents and the documents related to the Other Pari Passu Lien Obligations and other than as set forth in such documents), to freely operate the Collateral and to collect, invest and dispose of any income therefrom. See “Risk factors — Risks related to the Notes and the Collateral — We will in most cases have control over the collateral, and the sale of particular assets by us could reduce the pool of assets securing the Notes and the guarantees.”

Application of proceeds

In the event that ABL Priority Collateral and Notes Priority Collateral are disposed of in a single transaction or series of related transactions in which the aggregate sales price is not allocated between ABL Priority Collateral and Notes Priority Collateral being sold (including in connection with or as a result of the sale of the Capital Stock of a Guarantor or in connection with any casualty or condemnation event), then solely for purposes of the Intercreditor Agreement, the portion of the aggregate sales price determined to be proceeds of the ABL Priority Collateral on the one hand, and Notes Priority Collateral on the other hand, shall be allocated based upon in the case of any ABL Priority Collateral consisting of (i) inventory, at book value as assessed on the date of such disposition, (ii) any ABL Priority Collateral consisting of accounts receivable at the book value as assessed on the date of such disposition and (iii) all other ABL Priority Collateral and Notes Priority Collateral, at fair market value of such ABL Priority Collateral and Notes Priority Collateral sold, as determined by the Company in its reasonable judgment or, if the aggregate amount of such other ABL Priority Collateral and Notes Priority Collateral sold is greater than $20.0 million, an independent appraiser.

Release of collateral

The Company and the Guarantors will be entitled to the immediate release of property and other assets included in the Collateral from the Liens securing the Notes under any one or more of the following circumstances:

(1) to enable the disposition of such property or assets, including Capital Stock (other than to the Company or a Guarantor) to the extent not prohibited under the covenant described under “— Limitation on Asset Sales”;

(2) in the case of a Guarantor that is released from its Guarantee, the release of the property and assets of such Guarantor;

(3) with respect to Collateral that is Capital Stock, upon the dissolution or liquidation of the issuer of that Capital Stock that is not prohibited by the Indenture or upon the release of a Guarantor that has pledged such Capital Stock; or

(4) as described under “— Modification of the Indenture” below.

The security interests in all Collateral securing the Notes also will be released automatically upon (i) payment in full of the principal of, together with accrued and unpaid interest on, the Notes and all other obligations under the Indenture, the Guarantees and the Security Documents that are due and payable at or prior to the time such principal, together with accrued and unpaid interest, are paid (other than contingent indemnification obligations that, pursuant to the terms of the Indenture and the Security Documents, survive the termination thereof) or (ii) the exercise by the Company of its legal defeasance option or covenant defeasance option as described under “— Defeasance” or the discharge of the Company’s obligations under the Indenture in accordance with its terms as described under “— Satisfaction and Discharge.”

The second-priority Lien on the ABL Priority Collateral securing the Notes and the Guarantees will terminate and be released automatically if the first-priority Liens on the ABL Priority Collateral are released by the Bank Collateral Agent (unless, at the time of such release of such first-priority Liens, an Event of Default shall have occurred and be continuing under the Indenture), other than (i) in connection with a Discharge of ABL Obligations under the Credit Agreement or (ii) to the extent prohibited under the Indenture. Notwithstanding the existence of an Event of Default, the second-priority Liens on the ABL Priority Collateral securing the Notes and the Guarantees shall also terminate and be released automatically to the extent the first-priority Liens on the ABL Priority Collateral are released by the Bank Collateral Agent in connection with a sale, transfer or disposition of ABL Priority Collateral that occurs in connection with the foreclosure of, or other exercise of remedies with respect to, ABL Priority Collateral by the Bank Collateral Agent (except with respect to any proceeds of such sale, transfer or disposition that remain after satisfaction in full of the Lenders Debt).

Change of Control

Upon the occurrence of a Change of Control, each Holder will have the right to require that the Company purchase all or a portion of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Within 30 days following the date upon which the Change of Control occurred (unless the Company has previously or concurrently mailed a redemption notice with respect to all outstanding Notes as described under “— Optional Redemption”), the Company must send, by first class mail, a notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state, among other things:

(1) that a Change of Control has occurred and that such Holder has the right to require the Company to purchase such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof on the date of purchase, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest on the relevant interest payment date);

 

42

---

Table of Contents

(2) the circumstances and relevant facts regarding such Change of Control;

(3) the purchase date (which shall be no earlier than 30 days nor later than 45 days from the date such notice is mailed, other than as may be required by law) (the “Change of Control Payment Date”); and

(4) the instructions, as determined by the Company, consistent with the covenant described hereunder, that a Holder must follow in order to have its Notes purchased.

Holders electing to have a Note purchased pursuant to a Change of Control Offer will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third business day prior to the Change of Control Payment Date.

The Company will not be required to make a Change of Control Offer upon a Change of Control if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in the Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer.

A Change of Control Offer may be made in advance of a Change of Control, conditional upon such Change of Control, if a definitive agreement is in place for the Change of Control at the time of making of the Change of Control Offer.

If a Change of Control Offer is made, there can be no assurance that the Company will have available funds sufficient to pay the Change of Control purchase price for all the Notes that might be delivered by Holders seeking to accept the Change of Control Offer. In the event the Company is required to purchase outstanding Notes pursuant to a Change of Control Offer, the Company expects that it would seek third-party financing to the extent it does not have available funds to meet its purchase obligations. However, there can be no assurance that the Company would be able to obtain such financing.

Neither the Board of Directors of the Company nor the Trustee may waive the covenant relating to a Holder’s right to redemption upon a Change of Control. Restrictions in the Indenture described herein on the ability of the Company and its Restricted Subsidiaries to incur additional Indebtedness, to grant Liens on its property, to make Restricted Payments and to make Asset Sales may also make more difficult or discourage a takeover of the Company, whether favored or opposed by the management of the Company. Consummation of any such transaction in certain circumstances may require redemption or repurchase of the Notes, and there can be no assurance that the Company or the acquiring party will have sufficient financial resources to effect such redemption or repurchase. Such restrictions and the restrictions on transactions with Affiliates may, in certain circumstances, make more difficult or discourage any leveraged buyout of the Company or any of its Subsidiaries by the management of the Company. While such restrictions cover a wide variety of arrangements which have traditionally been used to effect highly leveraged transactions, the Indenture may not afford the Holders protection in all circumstances from the adverse aspects of a highly leveraged transaction, reorganization, restructuring, merger or similar transaction.

Future Indebtedness that the Company may incur may contain prohibitions on the occurrence of certain events that would constitute a Change of Control or require the repurchase of such Indebtedness upon a Change of Control. Moreover, the exercise by the Holders of their right to require the Company to repurchase their Notes could cause a default under such Indebtedness, even if the Change of Control itself does not, due to the financial effect of such repurchase on the Company.

The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To the extent that the provisions of any securities laws or regulations conflict with the “Change of Control” provisions of the Indenture, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under the “Change of Control” provisions of the Indenture by virtue thereof.

The definition of “Change of Control” includes a disposition of all or substantially all of the assets of the Company to any Person. Although there is a limited body of case law interpreting the phrase “substantially all”, there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of “all or substantially all” of the assets of the Company. As a result, it may be unclear as to whether a Change of Control has occurred and whether a Holder may require the Company to make an offer to repurchase the Notes as described above.

Under clause (5) of the definition of “Change of Control”, a Change of Control will occur if a majority of the Board of Directors of the Company is replaced over a two-year period and such replacement shall not have been approved by a vote of at least a majority of the Board of Directors of the Company then still in office who either were members of such Board of Directors at the beginning of such period or whose election as a member of such Board of Directors was previously so approved. In a recent decision in connection with a proxy contest, the Delaware Court of Chancery held that the occurrence of a change of control under a similar indenture provision may nevertheless be avoided if the existing directors were to approve the slate of new director nominees (who would constitute a majority of the new board) as “continuing directors”, provided the incumbent directors give their approval in the good faith exercise of their fiduciary duties owed to the corporation and its stockholders. Therefore, in certain circumstances involving a significant change in the composition of the Board of Directors of the Company, including in connection with a proxy contest where the Board of Directors of the Company does not endorse a dissident slate of directors but approves them as “continuing directors”, Holders of the Notes may not be entitled to require the Company to make a Change of Control Offer.

 

43

---

Table of Contents

Certain Covenants

The Indenture contains, among others, the following covenants:

Limitation on Incurrence of Additional Indebtedness. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible for payment of (collectively, “incur”) any Indebtedness; provided, however, that if no Default or Event of Default shall have occurred and be continuing at the time of or as a consequence of the incurrence of any such Indebtedness, the Company or any of its Restricted Subsidiaries that is or, upon such incurrence, becomes a Guarantor may incur Indebtedness (including, without limitation, Acquired Indebtedness) if on the date of the incurrence of such Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company is greater than 2.0 to 1.0.

The foregoing limitations will not apply to:

(1) Indebtedness under the Notes issued in this offering in an aggregate principal amount not to exceed $425.0 million, the Guarantees and the Notes (other than any Additional Notes) and the guarantees thereof;

(2) Indebtedness incurred pursuant to the Credit Agreement; provided that immediately after giving effect to any such incurrence, the then outstanding aggregate principal amount of all Indebtedness incurred under this clause (2) does not exceed the greater of:

(a) $100.0 million less (x) the amount of all mandatory principal payments pursuant to “— Limitation on Asset Sales” actually made by the Company of Indebtedness under the Credit Agreement and (y) any required permanent repayments (which are accompanied by a corresponding permanent commitment reduction) thereunder; and

(b) the sum of (x) 85.0% of the book value of the receivables of the Company and its Restricted Subsidiaries plus (y) 50.0% of the book value of the inventory of the Company and its Restricted Subsidiaries;

(3) Indebtedness incurred pursuant the Zena Agreements in an aggregate principal amount not to exceed $35.0 million at any one time outstanding;

(4) other Indebtedness of the Company and its Restricted Subsidiaries outstanding on the Issue Date reduced by the amount of any scheduled amortization payments or mandatory prepayments when actually paid or permanent reductions thereon (other than Indebtedness described in clauses (1), (2) and (3) of this covenant);

(5) Indebtedness represented by Capitalized Lease Obligations and Purchase Money Indebtedness of the Company and its Restricted Subsidiaries incurred in the ordinary course of business not to exceed, at any one time outstanding, the greater of (x) $35.0 million and (y) 5.0% of Total Assets of the Company and its Restricted Subsidiaries;

(6) Hedging Obligations (excluding Hedging Obligations entered into for speculative purposes) for the purpose of limiting interest rate risk, exchange rate risk or commodity pricing risk;

(7) Indebtedness owed to the Company or to a Restricted Subsidiary of the Company for so long as such Indebtedness is held by the Company or a Restricted Subsidiary of the Company; provided that (a) if as of any date any Person other than the Company or a Restricted Subsidiary of the Company holds any such Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting permitted Indebtedness under this clause (7) by the issuer of such Indebtedness; (b) any subsequent issuance or transfer of any Capital Stock which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary shall be deemed to constitute the incurrence of such Indebtedness by the obligor thereon; (c) if the Company is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Notes; and (d) if a Guarantor is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in full in cash of all Obligations of such Guarantor with respect to its Guarantee;

(8) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within five business days of the Company’s or any Restricted Subsidiary’s knowledge of its incurrence;

(9) Indebtedness of the Company or any of its Restricted Subsidiaries in respect of performance bonds, bankers’ acceptances, workers’ compensation claims, surety or appeal bonds, payment obligations in connection with self-insurance or similar obligations, and bank overdrafts (and letters of credit in respect thereof) in the ordinary course of business;

(10) Refinancing Indebtedness;

(11) Indebtedness represented by guarantees by the Company or its Restricted Subsidiaries of Indebtedness otherwise permitted to be incurred under the Indenture;

(12) Indebtedness of the Company or any Restricted Subsidiary consisting of guarantees, indemnities or other obligations in respect of purchase price adjustments in connection with the acquisition or disposition of assets;

 

44

---

Table of Contents

(13) Indebtedness of a Restricted Subsidiary incurred and outstanding on or prior to the date on which such Subsidiary was acquired by the Company (other than Indebtedness incurred in connection with, or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Subsidiary became a Subsidiary or was acquired by the Company); provided, however, that on the date of such acquisition and after giving pro forma effect thereto, the Company would have been entitled to incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of this covenant; and

(14) additional Indebtedness of the Company and its Restricted Subsidiaries in an aggregate principal amount not to exceed $50.0 million at any one time outstanding (which amount may, but need not, be incurred in whole or in part under the Credit Agreement).

For purposes of determining compliance with this covenant, in the event that an item of Indebtedness meets the criteria of more than one of clauses (1) through (14) above or is entitled to be incurred pursuant to the Consolidated Fixed Charge Coverage Ratio provisions of the first paragraph of this covenant, the Company shall, in its sole discretion, be entitled to divide and classify (or later reclassify) an item of Indebtedness in more than one of the types of Indebtedness described above; provided that all Indebtedness outstanding under the Credit Agreement up to the maximum amount permitted under clause (2) above shall be deemed to have been incurred pursuant to clause (2). Accrual of interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Capital Stock in the form of additional shares of the same class of Disqualified Capital Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified Capital Stock for purposes of this covenant.

The Company will not, and will not permit any Restricted Subsidiary that is a Guarantor to, directly or indirectly, incur any Indebtedness which by its terms (or by the terms of any agreement governing such Indebtedness) is expressly subordinated in right of payment to any other Indebtedness of the Company or such Guarantor, as the case may be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinate to the Notes or the applicable Guarantee, as the case may be, to the same extent and in the same manner as such Indebtedness is subordinated to other Indebtedness of the Company or such Guarantor, as the case may be. For purposes of the foregoing, no Indebtedness will be deemed to be subordinated in right of payment to any other Indebtedness of the Company or any Guarantor solely by virtue of such Indebtedness being unsecured or by virtue of the fact that the holders of such Indebtedness have entered into one or more intercreditor agreements giving one or more of such holders priority over the other holders in the collateral held by them.

For purposes of determining compliance with any U.S. dollar restriction on the incurrence of Indebtedness where the Indebtedness incurred is denominated in a different currency, the amount of such Indebtedness will be the U.S. Dollar Equivalent determined on the date of the incurrence of such Indebtedness; provided, however, that if any such Indebtedness denominated in a different currency is subject to a Currency Agreement with respect to U.S. dollars covering all principal, premium, if any, and interest payable on such Indebtedness, the amount of such Indebtedness expressed in U.S. dollars will be as provided in such Currency Agreement. The principal amount of any Refinancing Indebtedness incurred in the same currency as the Indebtedness being Refinanced will be the U.S. Dollar Equivalent of the Indebtedness Refinanced, except to the extent that (1) such U.S. Dollar Equivalent was determined based on a Currency Agreement, in which case the Refinancing Indebtedness will be determined in accordance with the preceding sentence, and (2) the principal amount of the Refinancing Indebtedness exceeds the principal amount of the Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent of such excess will be determined on the date such Refinancing Indebtedness is incurred.

Limitation on Restricted Payments. The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly:

(1) declare or pay any dividend or make any distribution (including any payment in connection with any merger or consolidation involving such Person) or similar payments on or in respect of shares of the Company’s Capital Stock to holders of such Capital Stock (other than (a) dividends or distributions payable in Qualified Capital Stock of the Company, (b) dividends or distributions payable solely to the Company or a Restricted Subsidiary and (c) pro rata dividends or other distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation));

(2) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the Company held by any Person (other than by a Restricted Subsidiary) or of any Capital Stock of a Restricted Subsidiary held by any Affiliate of the Company (other than by a Restricted Subsidiary), including in connection with any merger or consolidation and including the exercise of any option to exchange any Capital Stock (other than into Qualified Capital Stock of the Company);

(3) make any principal payment on, purchase, defease, redeem, prepay, decrease or otherwise acquire or retire for value, prior to any scheduled final maturity, scheduled repayment or scheduled sinking fund payment, any Subordinated Indebtedness of the Company or any Guarantors (other than (a) from the Company or a Restricted Subsidiary or (b) payment, purchase, defeasance, redemption, prepayment, decrease or other acquisition or retirement for value, prior to any scheduled final maturity, scheduled repayment or scheduled sinking fund payment, in each case due within one year of the date of such payment, purchase, defeasance, redemption, prepayment, decrease or other acquisition or retirement); or

 

45

---

Table of Contents

(4) make any Investment (other than Permitted Investments) (each of the foregoing actions set forth in clauses (1), (2), (3) and (4) being referred to as a “Restricted Payment”);

if at the time of such Restricted Payment or immediately after giving effect thereto,

 

(i)

a Default or an Event of Default shall have occurred and be continuing (or would result therefrom);

 

(ii)

the Company is not able to incur at least $1.00 of additional Indebtedness (other than Indebtedness permitted to be incurred under the second paragraph under “Certain Covenants — Limitation on Incurrence of Additional Indebtedness”) in compliance with the “Limitation on Incurrence of Additional Indebtedness” covenant; or

 

(iii)

the aggregate amount of Restricted Payments (including such proposed Restricted Payment) made subsequent to the Issue Date (the amount expended for such purposes, if other than in cash, being the fair market value of such property as determined in good faith by the Board of Directors of the Company) shall exceed the sum of without duplication:

 

(v)

50% of the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income shall be a loss, minus 100% of such loss) of the Company beginning the first full fiscal quarter during which the Issue Date occurs (treating such period as a single accounting period) to the end of the most recent fiscal quarter ending at least 45 days prior to the date of such Restricted Payment; plus

 

(w)

100% of the aggregate net cash proceeds received by the Company from any Person (other than a Subsidiary of the Company) from the issuance and sale subsequent to the Issue Date and on or prior to the date the Restricted Payment occurs (the “Reference Date”) of Qualified Capital Stock of the Company or warrants, options or other rights to acquire Qualified Capital Stock of the Company (but excluding any debt security that is convertible into, or exchangeable for, Qualified Capital Stock); plus

 

(x)

without duplication of any amounts included in clause (iii)(w) above, 100% of the aggregate net cash proceeds of any equity contribution received by the Company from a holder of the Company’s Capital Stock subsequent to the Issue Date and on or prior to the Reference Date (excluding, in the case of clauses (iii)(w) and (x), any net cash proceeds from a Public Equity Offering to the extent used to redeem the Notes in compliance with the provisions set forth under “— Optional Redemption — Optional Redemption Upon Public Equity Offerings”); plus

 

(y)

the amount by which the principal amount of Indebtedness of the Company (other than Indebtedness owing to a Subsidiary) is reduced upon the conversion or exchange subsequent to the Issue Date of any Indebtedness of the Company convertible or exchangeable for Qualified Capital Stock of the Company (less the amount of any cash, or the fair value of any other property, distributed by the Company upon such conversion or exchange); provided, however, that the foregoing amount shall not exceed the aggregate net cash proceeds received by the Company or any Restricted Subsidiary from the sale of such Indebtedness (excluding net cash proceeds from sales to a Subsidiary of the Company or to an employee stock ownership plan or a trust established by the Company or any of its Subsidiaries for the benefit of their employees); plus

 

(z)

without duplication, the sum of:

 

(1)

the aggregate amount returned in cash on or with respect to Investments (other than Permitted Investments) made subsequent to the Issue Date whether through interest payments, principal payments, dividends or other distributions or payments;

 

(2)

the net cash proceeds received by the Company or any of its Restricted Subsidiaries from the disposition of all or any portion of such Investments (other than to a Subsidiary of the Company); and

 

(3)

upon redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the fair market value of such Subsidiary;

provided, however, that the sum of clauses (1), (2) and (3) above shall not exceed the aggregate amount of all such Investments made subsequent to the Issue Date.

Notwithstanding the foregoing, the provisions set forth in the immediately preceding paragraph do not prohibit:

(1) the payment of any dividend within 60 days after the date of declaration of such dividend if the dividend would have been permitted on the date of declaration;

(2) if no Default or Event of Default shall have occurred and be continuing, the acquisition of any shares of Capital Stock of the Company, either (a) solely in exchange for shares of Qualified Capital Stock of the Company or (b) through the application of net proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of the Company;

(3) if no Default or Event of Default shall have occurred and be continuing, the acquisition of any Subordinated Indebtedness either (a) solely in exchange for shares of Qualified Capital Stock of the Company, or (b) through the application of net proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the Company) of (i) shares of Qualified Capital Stock of the Company or (ii) Refinancing Indebtedness;

 

46

---

Table of Contents

(4) so long as no Default or Event of Default shall have occurred and be continuing, repurchases by the Company of Common Stock of the Company from officers, directors and employees of the Company or any of its Subsidiaries or their authorized representatives upon the death, disability or termination of employment of such employees or termination of their seat on the board of the Company, in an aggregate amount not to exceed $5.0 million in any calendar year (with unused amounts in any calendar year being carried over to the next two immediate succeeding calendar years subject to a maximum of $15.0 million in any calendar year);

(5) cash payments in lieu of fractional shares issuable as dividends on Preferred Stock or upon the conversion of any convertible debt securities of the Company or any of its Restricted Subsidiaries;

(6) other Restricted Payments in an aggregate amount taken together with all other Restricted Payments made pursuant to this clause (6) not to exceed $35.0 million;

(7) so long as no Default or Event of Default shall have occurred and be continuing, the making of any Restricted Payments if, at the time of making such payments, and after giving effect thereto (including the incurrence of any Indebtedness permitted to be incurred pursuant to the covenant described under “— Limitation on Incurrence of Additional Indebtedness” to finance such payment), the Company’s Consolidated Leverage Ratio would not exceed 2.50 to 1.0;

(8) the declaration and payments of dividends on Disqualified Capital Stock issued pursuant to the covenant described under “— Limitation on Incurrence of Additional Indebtedness”; provided, however, that, at the time of payment of such dividend, no Default or Event of Default shall have occurred and be continuing (or result therefrom);

(9) repurchases of Capital Stock deemed to occur upon exercise of stock options if such Capital Stock represents a portion of the exercise price of such options;

(10) in the event of a Change of Control, and if no Default or Event of Default shall have occurred and be continuing, the payment, purchase, redemption, defeasance or other acquisition or retirement of Subordinated Indebtedness of the Company or any Guarantor, in each case, at a purchase price not greater than 101% of the principal amount of such Subordinated Indebtedness, plus any accrued and unpaid interest thereon; provided, however, that prior to such payment, purchase, redemption, defeasance or other acquisition or retirement, the Company (or a third party to the extent permitted by the Indenture) has made a Change of Control Offer with respect to the Notes as a result of such Change of Control and has repurchased all Notes validly tendered and not withdrawn in connection with such Change of Control Offer;

(11) so long as no Default or Event of Default shall have occurred and be continuing (or would otherwise result therefrom), payments of intercompany Subordinated Indebtedness, the incurrence of which was permitted under clause (7) of the covenant described under “— Limitation on Incurrence of Additional Indebtedness”; or

(12) the declaration and payments of dividends on shares of Series B Preferred Stock outstanding on the Issue Date, up to an amount not to exceed 12% per annum of the liquidation preference of such shares issued and outstanding at the time of the declaration of such dividend, and shares of Series D Preferred Stock outstanding on the Issue Date, up to an amount not to exceed 6% per annum of the liquidation preference of such shares issued and outstanding at the time of the declaration of such dividend; provided, however, that, at the time of the declaration and the payment of such dividend, no Default or Event of Default shall have occurred and be continuing (or result therefrom); provided, further, that the aggregate amount of dividends paid under this clause (12) shall not exceed $300,000 in any calendar year;

(13) so long as no Default or Event of Default shall have occurred and be continuing, the declaration and payment of dividends on the Capital Stock of the Company pursuant to a publicly announced regular dividend policy of the Company in an amount not to exceed $3.0 million in the aggregate for any fiscal quarter.

In determining the aggregate amount of Restricted Payments made subsequent to the Issue Date in accordance with clause (4)(iii) of the first paragraph of this covenant, amounts expended pursuant to clauses (1), (2)(b), (3)(b)(i), (4) and (10) shall be included in such calculation.

Limitation on Asset Sales. (A) The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale of any assets that do not constitute ABL Priority Collateral (“Non-ABL Priority Collateral”), unless:

(1) the Company or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the fair market value of the assets sold or otherwise disposed of (as determined in good faith by the Company’s Board of Directors);

(2) at least 75% of the consideration received by the Company or the Restricted Subsidiary, as the case may be, from such Asset Sale shall be in the form of cash and/or Cash Equivalents and is received at the time of such disposition; provided that the amount of:

 

(a)

any liabilities (as shown on the Company’s or such Restricted Subsidiary’s most recent balance sheet) of the Company or any such Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Notes or any Guarantee of a Guarantor) that are assumed by the transferee of any such assets; and

 

(b)

any securities, notes or other Obligations or assets received by the Company or such Restricted Subsidiary from such transferee that are converted by the Company or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of such cash or Cash Equivalents received) within 90 days following the closing of such Asset Sale (clause (a) and (b) collectively, “Non-Cash Consideration”) shall, in each case, be deemed to be cash for purposes of this clause (2);

 

47

---

Table of Contents

(3) without limitation of the provisions described below under “—Further Assurances and After-Acquired Property,” to the extent that any consideration received by the Company or any Restricted Subsidiary in such Asset Sale (including, for the avoidance of doubt, any Non-Cash Consideration) consists of assets that constitute Notes Priority Collateral, such assets, including the assets of any Person that becomes a Guarantor as a result of such transaction, are concurrently with their acquisition added to the Notes Priority Collateral; and

(4) the Net Cash Proceeds from any such Asset Sale of Notes Priority Collateral is paid directly by the purchaser thereof to the Notes Collateral Agent to be held in trust in a Collateral Account for application in accordance with this covenant.

Notwithstanding the provisions of the foregoing paragraph, the Company and the Restricted Subsidiaries will not be required to cause any Net Cash Proceeds to be held in a Collateral Account in accordance with clause (4) of this clause (A) except to the extent the aggregate Net Cash Proceeds from all Asset Sales of Notes Priority Collateral which are not held in a Collateral Account, or have not been previously applied in accordance with the provisions of this covenant relating to the application of Net Cash Proceeds from Asset Sales of Notes Priority Collateral, exceeds $10.0 million.

Upon the consummation of an Asset Sale covered by this clause (A), the Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 365 days of receipt thereof:

 

(a)

to make one or more offers to the Holders (and, at the option of the Company, the holders of Other Pari Passu Lien Obligations) to purchase Notes (and such Other Pari Passu Lien Obligations) pursuant to and subject to the conditions contained in the Indenture as further described below; provided, however, that in connection with any prepayment, repayment or purchase of Indebtedness pursuant to this clause (a), the Company or such Restricted Subsidiary shall permanently retire such Indebtedness and shall cause the related loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid or purchased; provided further that if the Company or such Restricted Subsidiary shall so reduce any Other Pari Passu Lien Obligations, the Company will equally and ratably reduce Indebtedness under the Notes by making an offer to all Holders to purchase at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, the pro rata principal amount of the Notes, such offer to be conducted in accordance with the procedures set forth below for Net Proceeds Offer but without any further limitation in amount;

 

(b)

to make an investment in properties and assets that replace the properties and assets that were the subject of such Asset Sale or in properties and assets (including Capital Stock) that will be used in the business of the Company and its Restricted Subsidiaries as existing on the Issue Date or in businesses reasonably related thereto (“Replacement Assets”); provided that, without limitation of the provisions described below under “— Further Assurances and After-Acquired Property,” any such Replacement Assets, including the assets of any Person that becomes a Guarantor as a result of such transactions acquired with Net Cash Proceeds from an Asset Sale of Notes Priority Collateral are concurrently with their acquisition added to the Notes Priority Collateral;

 

(c)

to the extent such Net Cash Proceeds are from Asset Sales of Collateral or Capital Stock deemed not to be part of the Collateral as described under “— Security for the Notes — Limitations on Stock Collateral” above, to permanently reduce Indebtedness of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed to the Company, a Guarantor or a Restricted Subsidiary; or

 

(d)

to make one or more Restricted Payments to the extent permitted under the “Limitation on Restricted Payments” covenant above;

provided that, in the case of clause (b) above, if and to the extent that, within 365 days after the Asset Sale that generated the Net Cash Proceeds, the Company or any Restricted Subsidiary has entered into and not abandoned or rejected a binding agreement to consummate any such investment (an “Acceptable Commitment”) and such investment is thereafter completed within 180 days after such 365-day period, the Company and its Restricted Subsidiaries will be deemed to have complied with clause (b) above; provided further that if any Acceptable Commitment is later cancelled or terminated for any reason before such Net Cash Proceeds are applied, then such Net Cash Proceeds shall constitute a part of the Net Proceeds Offer Amount.

On the 366th day (or, if extended in accordance with the proviso in the preceding paragraph, the 546th day) after an Asset Sale covered by this clause (A) or such earlier date, if any, as the Board of Directors of the Company or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset Sale as set forth in clauses (a), (b), (c) and (d) of the preceding paragraph (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash Proceeds which have not been applied on or before such Net Proceeds Offer Trigger Date as permitted in clauses (a), (b), (c) and (d) of the preceding paragraph (each a “Net Proceeds Offer Amount”) shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase (the “Net Proceeds Offer”) to all Holders and, to the extent required by the terms of any Other Pari Passu Lien Obligations, to all holders of such Other Pari Passu Lien Obligations, to purchase the maximum aggregate principal amount of the Notes and any such Other Pari Passu Lien Obligations that may be purchased out of the Net Proceeds Offer Amount at an offer price in cash in an amount equal to 100% of the principal amount of the Notes and Other Pari Passu Lien Obligations, in each case, plus accrued and unpaid interest, if any, to, but not including, the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the

 

48

---

Table of Contents

relevant interest payment date), in accordance with the procedures set forth in the Indenture or the agreements governing the Other Pari Passu Lien Obligations, as applicable, on a date not less than 30 nor more than 45 days following the applicable Net Proceeds Offer Trigger Date, from all Holders (and holders of any such Other Pari Passu Lien Obligations) on a pro rata basis but in round denominations, which in the case of the Notes will be minimum denominations of $2,000 principal amount or any greater integral multiple of $1,000 thereof; provided, however, that if at any time any non-cash consideration received by the Company or any Restricted Subsidiary of the Company, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash (other than interest received with respect to any such non-cash consideration), then such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with this covenant.

The Company may defer the Net Proceeds Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $50.0 million resulting from one or more Asset Sales (at which time, the entire unutilized Net Proceeds Offer Amount, and not just the amount in excess of $50.0 million, shall be applied as required pursuant to this paragraph).

Each Net Proceeds Offer will be mailed to the record Holders as shown on the register of Holders within 25 days following the Net Proceeds Offer Trigger Date, with a copy to the Trustee, and shall comply with the procedures set forth in the Indenture. Upon receiving notice of the Net Proceeds Offer, Holders may elect to tender their Notes in whole or in part in minimum denominations of $2,000 principal amount or any greater integral multiple of $1,000 thereof in exchange for cash. To the extent Holders properly tender Notes and holders of Other Pari Passu Lien Obligations properly tender such Other Pari Passu Lien Obligations in an amount exceeding the Net Proceeds Offer Amount, the tendered Notes and Other Pari Passu Lien Obligations will be purchased on a pro rata basis based on the aggregate amounts of Notes and Other Pari Passu Lien Obligations tendered (and the Trustee shall select the tendered Notes of tendering Holders on a pro rata basis based on the amount of the Notes tendered). A Net Proceeds Offer shall remain open for a period of 20 business days or such longer period as may be required by law. If any Net Cash Proceeds remain after the consummation of any Net Proceeds Offer, the Company may use those Net Cash Proceeds for any purpose not otherwise prohibited by the Indenture. Upon completion of each Net Proceeds Offer, the amount of Net Cash Proceeds covered by this clause (A) will be reset at zero.

(B) The Company will not, and will not permit any of its Restricted Subsidiaries to, consummate any Asset Sale of any ABL Priority Collateral, unless:

(1) the Company or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the fair market value of the assets sold or otherwise disposed of (as determined in good faith by the Company’s Board of Directors); and

(2) at least 75% of the consideration received by the Company or the Restricted Subsidiary, as the case may be, from such Asset Sale shall be in the form of cash (including Non-Cash Consideration) and/or Cash Equivalents and is received at the time of such disposition.

Upon the consummation of an Asset Sale covered by this clause (B), the Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 365 days of receipt thereof:

 

(a)

to permanently reduce Indebtedness under the Credit Agreement or any other Indebtedness of the Company or a Guarantor that, in each case, is secured by a Lien on the ABL Priority Collateral that is prior to the Lien on the ABL Priority Collateral in favor of the Holders (and, in the case of revolving obligations, to effect a permanent reduction in the availability under such revolving facilities), in each case other than Indebtedness owed to the Company or a Subsidiary of the Company;

 

(b)

to make an Investment in Replacement Assets;

 

(c)

to make one or more Restricted Payments to the extent permitted under the “Limitation on Restricted Payments” covenant above; or

 

(d)

a combination of the foregoing;

provided that, in the case of clause (b) above, an Acceptable Commitment shall be treated as a permitted application of the Net Cash Proceeds from the date of such commitment; provided further that if any Acceptable Commitment is later cancelled or terminated for any reason before such Net Cash Proceeds are applied, then such Net Cash Proceeds shall constitute a part of the Net ABL Proceeds Offer Amount.

On the 366th day (or, if extended in accordance with the proviso in the preceding paragraph, the 546th day) after an Asset Sale covered by this clause (B) or such earlier date, if any, as the Board of Directors of the Company or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset Sale as set forth in clauses (a), (b), (c) and (d) of the preceding paragraph (each, a “Net ABL Proceeds Offer Trigger Date”), such aggregate amount of Net Cash Proceeds which have not been applied on or before such Net ABL Proceeds Offer Trigger Date as permitted in clauses (a), (b), (c) and (d) of the preceding paragraph (each a “Net ABL Proceeds Offer Amount”) shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase (the “Net ABL Proceeds Offer”) to all Holders and, to the extent required by the terms of any Other Pari Passu Lien Obligations, to all holders of such Other Pari Passu Lien Obligations, to purchase the maximum aggregate principal amount of the Notes and any such Other Pari Passu Lien Obligations that may be purchased out of the Net ABL Proceeds Offer Amount at an offer

 

49

---

Table of Contents

price in cash in an amount equal to 100% of the principal amount of the Notes and Other Pari Passu Lien Obligations, in each case, plus accrued and unpaid interest, if any, to, but not including, the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in accordance with the procedures set forth in the Indenture or the agreements governing the Other Pari Passu Lien Obligations, as applicable, on a date not less than 30 nor more than 45 days following the applicable Net ABL Proceeds Offer Trigger Date, from all Holders (and holders of any such Other Pari Passu Lien Obligations) on a pro rata basis but in round denominations, which in the case of the Notes will be minimum denominations of $2,000 principal amount or any greater integral multiple of $1,000 thereof; provided, however, that if at any time any Non-Cash Consideration received by the Company or any Restricted Subsidiary of the Company, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash (other than interest received with respect to any such Non-Cash Consideration), then such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with this covenant.

The Company may defer the Net ABL Proceeds Offer until there is an aggregate unutilized Net ABL Proceeds Offer Amount equal to or in excess of $50.0 million resulting from one or more Asset Sales (at which time, the entire unutilized Net ABL Proceeds Offer Amount, and not just the amount in excess of $50.0 million, shall be applied as required pursuant to this paragraph).

Each Net ABL Proceeds Offer will be mailed to the record Holders as shown on the register of Holders within 25 days following the Net ABL Proceeds Offer Trigger Date, with a copy to the Trustee, and shall comply with the procedures set forth in the Indenture. Upon receiving notice of the Net Proceeds Offer, Holders may elect to tender their Notes in whole or in part in minimum denominations of $2,000 principal amount or any greater integral multiple of $1,000 thereof in exchange for cash. To the extent Holders properly tender Notes and holders of Other Pari Passu Lien Obligations properly tender such Other Pari Passu Lien Obligations in an amount exceeding the Net ABL Proceeds Offer Amount, the tendered Notes and Other Pari Passu Lien Obligations will be purchased on a pro rata basis based on the aggregate amounts of Notes and Other Pari Passu Lien Obligations tendered (and the Trustee shall select the tendered Notes of tendering Holders on a pro rata basis based on the amount of the Notes tendered). A Net ABL Proceeds Offer shall remain open for a period of 20 business days or such longer period as may be required by law. If any Net Cash Proceeds remain after the consummation of any Net ABL Proceeds Offer, the Company may use those Net Cash Proceeds for any purpose not otherwise prohibited by the Indenture. Upon completion of each Net ABL Proceeds Offer, the amount of Net Cash Proceeds covered by this clause (B) will be reset at zero.

(C) Pending the final application of Net Cash Proceeds pursuant to this covenant, the Company may temporarily reduce borrowings under the Credit Agreement or any other revolving credit facility.

For the purposes of this covenant, any sale by the Company or a Restricted Subsidiary of the Capital Stock of a Restricted Subsidiary that owns assets constituting Non-ABL Priority Collateral or ABL Priority Collateral shall be deemed to be a sale of such Non-ABL Priority Collateral or ABL Priority Collateral (or, in the event of a Restricted Subsidiary that owns assets that include any combination of Non-ABL Priority Collateral and ABL Priority Collateral, a separate sale of each of such Non-ABL Priority Collateral and ABL Priority Collateral). In the event of any such sale (or a sale of assets that includes any combination of Non-ABL Priority Collateral and ABL Priority Collateral), the proceeds received by the Company and the Restricted Subsidiaries in respect of such sale shall be allocated to the Non-ABL Priority Collateral and ABL Priority Collateral as described under “— Security for the Notes — Intercreditor agreement — Application of proceeds.” In addition, for purposes of this covenant, any sale by the Company or any Restricted Subsidiary of the Capital Stock of any Person that owns only ABL Priority Collateral will not be subject to paragraph (A) above, but rather will be subject to paragraph (B) above.

The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes pursuant to a Net Proceeds Offer. To the extent that the provisions of any securities laws or regulations conflict with the “Asset Sale” provisions of the Indenture, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under the “Asset Sale” provisions of the Indenture by virtue thereof.

Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries. The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or permit to exist or become effective any encumbrance or restriction on the ability of any Restricted Subsidiary of the Company to:

(1) pay dividends or make any other distributions on or in respect of its Capital Stock;

(2) make loans or advances to the Company or any other Restricted Subsidiary or to pay any Indebtedness or other Obligation owed to the Company or any other Restricted Subsidiary of the Company; or

(3) transfer any of its property or assets to the Company or any other Restricted Subsidiary of the Company, except in each case for such encumbrances or restrictions existing under or by reason of:

 

(a)

applicable law, rule, regulation or order;

 

(b)

the Indenture, the Notes and the Guarantee;

 

(c)

customary non-assignment provisions of any contract or any lease governing a leasehold interest of any Restricted Subsidiary of the Company;

 

50

---

Table of Contents

(d)

any instrument governing Acquired Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the properties or assets of the Person so acquired;

 

(e)

agreements existing on the Issue Date to the extent and in the manner such agreements are in effect on the Issue Date;

 

(f)

the Credit Agreement, the Security Documents and the Intercreditor Agreement, in each case in effect on the Issue Date;

 

(g)

restrictions on the transfer of assets subject to any Lien permitted under the Indenture imposed by the holder of such Lien;

 

(h)

customary provisions in joint venture agreements and other similar agreements (in each case relating solely to the respective joint venture or similar entity or the equity interests therein) entered into in the ordinary course of business;

 

(i)

an agreement governing Indebtedness incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to an agreement referred to in clauses (b), (d), (e) and (g) above; provided, however, that the provisions relating to such encumbrance or restriction contained in any such Indebtedness are no less favorable to the Company in any material respect as determined by the Board of Directors of the Company in their reasonable and good faith judgment than the provisions relating to such encumbrance or restriction contained in agreements referred to in such clauses (b), (d), (e) and (g);

 

(j)

restrictions on cash, Cash Equivalents or other deposits or net worth imposed under contracts entered into the ordinary course of business, including such restrictions imposed by customers or insurance, surety or bonding companies;

 

(k)

any encumbrance or restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of all or substantially all the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or disposition; and

 

(l)

provisions contained in any license, permit or other accreditation with a regulatory authority entered into the ordinary course of business.

Limitation on Liens. The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or permit or suffer to exist any Liens (“Initial Lien”) of any kind against or upon any property or assets of the Company or any of its Restricted Subsidiaries whether owned on the Issue Date or acquired after the Issue Date, or any proceeds therefrom, or assign or otherwise convey any right to receive income or profits therefrom other than:

(1) in the case of the Notes Priority Collateral, any Initial Lien if (a) such Initial Lien expressly ranks junior to the first-priority security interest intended to be created in favor of the Notes Collateral Agent for the benefit of the Trustee, the Notes Collateral Agent, the Holders of the Notes and the holders of any future Other Pari Passu Lien Obligations (if any), provided that the terms of such junior interest will be no more favorable to the beneficiaries thereof than the terms contained in the Intercreditor Agreement, or (b) such Initial Lien is a Permitted Collateral Lien;

(2) in the case of the ABL Priority Collateral, any Initial Lien if (a) the Notes and the Guarantees are equally and ratably secured on a second-priority basis by such ABL Priority Collateral until such time as such Initial Lien is released or (b) such Initial Lien is a Permitted Lien; and

(3) in the case of any other asset or property, any Initial Lien if (a) the Notes and the Guarantees are equally and ratably secured with (or on a senior basis to, in the case such Initial Lien secures any Subordinated Indebtedness) the obligations secured by such Initial Lien or (b) such Initial Lien is a Permitted Lien.

Any Lien created for the benefit of the Holders of the Notes pursuant to clause (2) or (3) of the preceding paragraph will be automatically and unconditionally released and discharged upon the release and discharge of each Initial Lien to which it relates, which release and discharge in the case of any sale of any asset or property shall not affect any Lien that the Notes Collateral Agent may have on the proceeds from such sale.

Any reference to a “Permitted Collateral Lien” or a “Permitted Lien” is not intended to subordinate or postpone, and shall not be interpreted as subordinating or postponing, or as any agreement to subordinate or postpone, any Lien in favor of the Notes Collateral Agent in respect of the Notes Priority Collateral or the ABL Priority Collateral.

With respect to any Lien securing Indebtedness that was permitted to secure such Indebtedness at the time of the incurrence of such Indebtedness, such Lien shall also be permitted to secure any Increased Amount of such Indebtedness. The “Increased Amount” of any Indebtedness shall mean any increase in the amount of such Indebtedness in connection with any accrual of interest or fees, any accretion of accreted value, any amortization of original issue discount, any payment of interest in the form of additional Indebtedness containing the same terms or in the form of Qualified Capital Stock of the Company, any payment of dividends on Preferred Stock in the form of additional shares of Preferred Stock of the same class or any accretion of original issue discount or liquidation preference and any increase in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies or increases in the value of property securing Indebtedness.

Merger, Consolidation and Sale of Assets. The Company will not, in a single transaction or series of related transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of (or cause or permit any Restricted Subsidiary of the Company to sell, assign, transfer, lease, convey or otherwise dispose of) all or substantially all of the Company’s assets (determined on a consolidated basis for the Company and the Company’s Restricted Subsidiaries) whether as an entirety or substantially as an entirety to any Person unless:

 

51

---

Table of Contents

(1) either:

 

(a)

the Company shall be the surviving or continuing corporation; or

 

(b)

the Person (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition the properties and assets of the Company and of the Company’s Restricted Subsidiaries substantially as an entirety (the “Surviving Entity”):

 

(x)

shall be a corporation organized and validly existing under the laws of the United States or any State thereof or the District of Columbia; and

 

(y)

shall expressly assume, by supplemental indenture or other documents or instruments (in each case, in form and substance satisfactory to the Trustee), executed and delivered to the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on all of the Notes and the performance of every covenant of the Notes, the Indenture and the Registration Rights Agreement on the part of the Company to be performed or observed, and all obligations of the Company under the Security Documents and Intercreditor Agreement;

(2) immediately after giving effect to such transaction and the assumption contemplated by clause (1)(b)(y) above (including giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in connection with or in respect of such transaction), the Company or such Surviving Entity, as the case may be, shall be able to incur at least $1.00 of additional Indebtedness (other than Indebtedness permitted to be incurred under the second paragraph under “— Limitation on Incurrence of Additional Indebtedness”) pursuant to the “— Limitation on Incurrence of Additional Indebtedness” covenant;

(3) immediately before and immediately after giving effect to such transaction and the assumption contemplated by clause (1)(b)(y) above (including, without limitation, giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred and any Lien granted in connection with or in respect of the transaction), no Default or Event of Default shall have occurred or be continuing;

(4) the Company or the Surviving Entity shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a supplemental indenture or other documents or instruments are required in connection with such transaction, such supplemental indenture, documents or instruments, as applicable, have been duly authorized, executed and delivered are legal, valid and binding agreements enforceable against the Surviving Entity, comply with the applicable provisions of the Indenture and that all conditions precedent in the Indenture relating to such transaction have been satisfied;

(5) to the extent any assets of the Person which is consolidated with or merged with or into the Surviving Entity are assets of the type which would constitute Collateral under the Security Documents, the Surviving Entity will take such action as may be reasonably necessary to cause such property and assets to be made subject to the Lien of the Security Documents in the manner and to the extent required in the Indenture or any of the Security Documents and shall take all reasonably necessary action so that such Lien is perfected to the extent required by the Indenture and the Security Documents; and

(6) the Collateral owned by or transferred to the Surviving Entity shall: (a) continue to constitute Collateral under the Indenture and the Security Documents, (b) be subject to the Lien in favor of the Notes Collateral Agent for the benefit of the Trustee and the Holders of the Notes and (c) not be subject to any Lien other than Permitted Collateral Liens or Permitted Liens, as the case may be, and other Liens permitted under the covenant described above under “— Limitation on Liens.”

For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or substantially all of the properties or assets of one or more Restricted Subsidiaries of the Company, the Capital Stock of which constitutes all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of all or substantially all of the properties and assets of the Company.

Notwithstanding the foregoing clauses (1), (2), (3), (4) and (5), the Company may merge with an Affiliate that is a Person that has no material assets or liabilities and which was organized solely for the purpose of reorganizing the Company in another jurisdiction in the United States, any State thereof or the District of Columbia so long as the amount of Indebtedness of the Company is not increased thereby.

The Indenture provides that upon any consolidation, combination or merger or any transfer of all or substantially all of the assets of the Company in accordance with the foregoing in which the Company is not the surviving or continuing corporation, the Surviving Entity shall succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture, the Security Documents and the Notes with the same effect as if such Surviving Entity had been named as such.

Each Guarantor (other than any Guarantor whose Guarantee is to be released in accordance with the terms of the Guarantee and the Indenture in connection with any transaction complying with the provisions of “— Limitation on Asset Sales”) will not, and the Company will not cause or permit any Guarantor to, consolidate with or merge with or into any Person other than the Company or any other Guarantor, or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of such Guarantor’s assets whether as an entirety or substantially as an entirety to any Person other than the Company or any other Guarantor unless:

 

52

---

Table of Contents

(1) the entity formed by or surviving any such consolidation or merger (if other than the Guarantor) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is a corporation organized and existing under the laws of the United States or any State thereof or the District of Columbia;

(2) such entity assumes by supplemental indenture or other documents or instruments (in each case, in form and substance reasonably satisfactory to the Trustee) all of the obligations of the Guarantor on the Guarantee and the applicable Security Documents and Intercreditor Agreement;

(3) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing;

(4) to the extent any assets of the Person which is consolidated with or merged with or into such entity are assets of the type which would constitute Collateral under the Security Documents, such entity will take such action as may be reasonably necessary to cause such property and assets to be made subject to the Lien of the Security Documents in the manner and to the extent required in the Indenture or any of the Security Documents and shall take all reasonably necessary action so that such Lien is perfected to the extent required by the Indenture and the Security Documents; and

(5) the Collateral owned by or transferred to such entity shall (a) continue to constitute Collateral under the Indenture and the Security Documents, (b) be subject to the Lien favor of the Notes Collateral Agent for the benefit of the Trustee and the Holders of the Notes and (c) not be subject to any Lien other than Permitted Liens and other Liens permitted under the covenant described above under “— Limitation on Liens.”

Subject to certain limitations described in the Indenture, such entity will succeed to, and be substituted for, such Guarantor under the Indenture, the Security Documents, the Intercreditor Agreement and such Guarantor’s Guarantee.

Notwithstanding the foregoing clauses (1), (2), (3), (4) and (5), any Guarantor may merge with an Affiliate that is a Person that has no material assets or liabilities and which was organized solely for the purpose of reorganizing the Guarantor in another jurisdiction in the United States, any State thereof or the District of Columbia so long as the amount of Indebtedness of the Company and its Restricted Subsidiaries is not increased thereby.

Limitation on Sale/Leaseback Transactions. The Company will not, and will not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with respect to any property unless:

(1) the Company or such Restricted Subsidiary would be entitled to (A) incur Indebtedness in an amount equal to the Attributable Debt with respect to such Sale/Leaseback Transaction pursuant to the covenant described under “— Limitation on Incurrence of Additional Indebtedness” and (B) (i) in the case of a Sale/Leaseback Transaction involving Notes Priority Collateral, create a Permitted Collateral Lien on such Notes Priority Collateral securing such Attributable Debt or (ii) in the case of a Sale/Leaseback Transaction involving ABL Priority Collateral or any other property or asset, create a Permitted Lien on such ABL Priority Collateral, property or asset, as applicable;

(2) the net proceeds received by the Company or any Restricted Subsidiary in connection with such Sale/Leaseback Transaction are at least equal to the fair market value of such property; and

(3) the Company applies the proceeds of such transaction in compliance with the covenant described under “— Limitation on Asset Sales”.

Limitations on Transactions with Affiliates. (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction or series of related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or for the benefit of, any of its Affiliates (each, an “Affiliate Transaction”), other than (x) Affiliate Transactions permitted under paragraph (b) below and (y) Affiliate Transactions on terms that are no less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of the Company or such Restricted Subsidiary.

All Affiliate Transactions (and each series of related Affiliate Transactions which are similar or part of a common plan) involving aggregate payments or other property with a fair market value in excess of $5.0 million shall be approved by a majority of the non-employee directors of the Board of Directors of the Company disinterested with respect to such Affiliate Transaction, such approval to be evidenced by a Board Resolution stating that such disinterested non-employee directors have in good faith determined that such transaction complies with the foregoing provisions. If the Company or any Restricted Subsidiary of the Company enters into an Affiliate Transaction (or a series of related Affiliate Transactions related to a common plan) that involves an aggregate fair market value of more than $15.0 million, the Company or such Restricted Subsidiary, as the case may be, shall, prior to the consummation thereof, obtain a favorable opinion as to the fairness of such transaction or series of related transactions to the Company or the relevant Restricted Subsidiary, as the case may be, from a financial point of view, from an Independent Financial Advisor and file the same with the Trustee.

(b) The restrictions set forth in this covenant shall not apply to:

(1) reasonable fees and compensation paid to and indemnity provided on behalf of, officers, directors, employees or consultants of the Company or any Restricted Subsidiary of the Company as determined in good faith by the Company’s Board of Directors or senior management;

 

53

---

Table of Contents

(2) transactions exclusively between or among the Company and any of its Restricted Subsidiaries or exclusively between or among such Restricted Subsidiaries, provided that such transactions are not otherwise prohibited by the Indenture;

(3) any agreement as in effect as of the Issue Date or any amendment thereto or any transaction contemplated thereby (including pursuant to any amendment thereto) in any replacement agreement thereto so long as any such amendment or replacement agreement is not more disadvantageous to the Holders in any material respect than the original agreement as in effect on the Issue Date;

(4) Restricted Payments permitted by the Indenture;

(5) any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment arrangements, stock options and stock ownership plans approved by the Board of Directors of the Company;

(6) loans or advances to employees in the ordinary course of business in accordance with the past practices of the Company or its Restricted Subsidiaries, but in any event not to exceed $5.0 million in the aggregate outstanding at any one time;

(7) the payment of reasonable fees to directors of the Company and its Restricted Subsidiaries who are not employees of the Company or its Restricted Subsidiaries;

(8) transactions with customers, clients, vendors, suppliers or other purchasers or sellers of goods or services, in each case in the ordinary course of business (including pursuant to joint venture agreements);

(9) the issuance or sale of any Qualified Capital Stock of the Company; and

(10) any transaction on arm’s-length terms with any non-Affiliate that becomes an Affiliate as a result of such transactions.

Future Guarantors. The Company will not permit any of its Wholly Owned Subsidiaries that are organized in the United States or any State thereof or the District of Columbia, directly or indirectly, by way of the pledge of any intercompany note or otherwise, to incur any Indebtedness or assume, guarantee or in any other manner become liable with respect to Indebtedness of the Company or any Guarantor, including under the Credit Agreement, unless such Restricted Subsidiary is a Guarantor or contemporaneously executes and delivers to the Trustee a Guarantee Agreement pursuant to which such Restricted Subsidiary will guarantee payment of the Notes on a senior secured basis on the same terms and conditions as those set forth in the Indenture and applicable to the other Guarantors and delivers to the Trustee joinders or supplements, as applicable, in form and substance reasonably satisfactory to the Trustee, to the Security Documents and Intercreditor Agreement, as well as an Opinion of Counsel that such Guarantee Agreement, joinders and supplements, as applicable, have been duly authorized, executed and delivered by such Restricted Subsidiary and constitute a legal, valid, binding and enforceable obligation of such Restricted Subsidiary.

Notwithstanding the foregoing, any such Guarantee by a Restricted Subsidiary of the Notes shall provide by its terms that it shall be automatically and unconditionally released and discharged, as described under “— Guarantees.”

Conduct of Business. The Company and its Restricted Subsidiaries will not engage in any businesses which are not the same, similar, ancillary or reasonably related to the businesses in which the Company and its Restricted Subsidiaries are engaged on the Issue Date (such businesses, “Related Businesses”).

Payments for Consent. The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of the Indenture or the Notes unless such consideration is offered to be paid and is paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement.

Reports to Holders. Whether or not the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company will file with the Commission, subject to the next sentence, and provide the Trustee and Holders with such annual and other reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation subject to such Sections, such reports to be so filed and provided at the times specified for the filings. If, at any time, the Company is not subject to the periodic reporting requirements of the Exchange Act for any reason, the Company will nevertheless continue filing the reports specified in the preceding sentence with the Commission within the time periods required unless the Commission will not accept such a filing. The Company agrees that it will not take any action for the purpose of causing the Commission not to accept such filings. If, notwithstanding the foregoing, the Commission will not accept such filings for any reason, the Company will post the reports specified in the preceding sentence on its website within the time periods that would apply if the Company were required to file those reports with the Commission. To the extent any such report or information is not so filed or provided, as applicable, within the time periods specified and such information is subsequently filed or provided, as applicable, the Company will be deemed to have satisfied its obligations with respect thereto at such time and any Default with respect thereto shall be deemed to have been cured; provided that such cure shall not otherwise affect the rights of the Holders under “Events of Default” if Holders of at least 25% in principal amount of the then total outstanding Notes have declared the principal, premium, if any, and interest on the Notes to be due and payable and such declaration shall not have been rescinded or canceled prior to such cure.

At any time that any of the Company’s Subsidiaries are Unrestricted Subsidiaries, then the quarterly and annual financial information required by the preceding paragraph will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of the Company.

 

54

---

Table of Contents

In addition, the Company has agreed that, for so long as any Notes remain outstanding, it will furnish to the Holders and to securities analysts and prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

Information Regarding Collateral

The Company will furnish to the Notes Collateral Agent, with respect to the Company or any Guarantor, written notice within five Business Days of any change in such Person’s (i) organizational name, (ii) jurisdiction of organization or formation, (iii) identity or organizational structure or (iv) organizational identification number. The Company and the Guarantors will agree to make all filings under the Uniform Commercial Code or equivalent statutes or otherwise that are required by applicable law in order for the Notes Collateral Agent to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral.

Further Assurances and After-Acquired Property

Subject to the applicable limitations set forth in the Security Documents and the Indenture (including with respect to Excluded Assets), the Company and the Guarantors shall execute any and all further documents, financing statements, agreements and instruments, and take all further action that may be required under applicable law, or that the Notes Collateral Agent may reasonably request, in order to grant, preserve, protect and perfect the validity and priority of the security interests created or intended to be created by the Security Documents in the Collateral. Subject to the applicable limitations set forth in the Security Documents and the Indenture (including with respect to Excluded Assets), if the Company or a Guarantor acquires property that is not automatically subject to a perfected security interest under the Security Documents and such property constitutes or would constitute Collateral (including any asset of the Company or a Guarantor that becomes Collateral subsequent to the Issue Date as a result of such asset ceasing to be an Excluded Asset) or an entity becomes a Guarantor, then the Company or such Guarantor will, within 90 days after acquisition or 90 days after the date such asset ceases to be an Excluded Asset (with respect to real property and related fixtures) (in each case, or such longer period as the Notes Collateral Agent may agree in its sole discretion) and as soon as practicable (with respect to other assets), provide a security interest over such property (or, in the case of a new Guarantor, its assets that would constitute Collateral under the Security Documents) in favor of the Notes Collateral Agent and deliver certain joinder agreements or supplements as required by the Indenture and the Security Documents. Notwithstanding the foregoing, until the Discharge of ABL Obligations, the Company and the Guarantors shall only be required to comply with the foregoing requirements with respect to any ABL Priority Collateral to the extent that such ABL Priority Collateral is concurrently being pledged to secure the obligations under the Lenders Debt.

Events of Default

Each of the following events is an “Event of Default”:

(1) the failure to pay interest on any Notes when the same becomes due and payable and the default continues for a period of 30 days;

(2) the failure to pay the principal on any Notes, when such principal becomes due and payable, at maturity, upon redemption, upon declaration of acceleration or otherwise (including the failure to make a payment to purchase Notes tendered pursuant to a Change of Control Offer, a Net Proceeds Offer or a Net ABL Proceeds Offer);

(3) the failure by the Company to comply with its obligations under “— Certain Covenants — Merger, Consolidation and Sale of Assets”;

(4) the failure by the Company to comply for 30 days after written notice with any of its obligations in the covenants described above under “Change of Control” (other than a failure to purchase Notes), under “— Certain Covenants” under “— Limitation on Incurrence of Additional Indebtedness”, “— Limitation on Restricted Payments”, “— Limitation on Asset Sales” (other than a failure to purchase Notes), “— Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries”, “— Limitation on Liens”, “— Limitation on Sale/Leaseback Transactions”, “— Limitations on Transactions with Affiliates”, “— Future Guarantors”, “— Conduct of Business”, “— Payment for Consent”, “— Reports to Holders”, “— Information Regarding Collateral”, “— Further Assurances and After-Acquired Property” or covenants contained in the Security Documents;

(5) the failure by the Company or any Guarantor to comply for 60 days after written notice with its other covenants or agreements contained in the Indenture, the Security Documents or the Intercreditor Agreement (other than a default referred to in clauses (1) through (4) above);

(6) the failure to pay at final maturity (giving effect to any applicable grace periods and any extensions thereof) the stated principal amount of any Indebtedness of the Company, any Guarantor or any Significant Subsidiary of the Company, or the acceleration of the final stated maturity of any such Indebtedness (which acceleration is not rescinded, annulled or otherwise cured within 20 days of receipt by the Company, any Guarantor or any Significant Subsidiary of the Company of written notice of any such acceleration) if the aggregate principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default for failure to pay principal at final stated maturity or which has been accelerated (in each case with respect to which the 20-day period described above has elapsed), aggregates $25.0 million or more at any time;

 

55

---

Table of Contents

(7) one or more judgments or decrees for the payment of money in an aggregate amount in excess of $25.0 million (net of any amounts that are covered by insurance issued by a reputable and creditworthy insurance company) shall have been rendered against the Company, any Guarantor or any Significant Subsidiary of the Company and such judgments or decrees remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or judgments become final and non-appealable;

(8) certain events of bankruptcy, insolvency or reorganization affecting the Company, any Guarantor or any Significant Subsidiary of the Company;

(9) any Guarantee ceases to be in full force and effect (other than in accordance with the terms of such Guarantee), is declared to be null and void and unenforceable by any final and non-appealable judgment or decree, or any Guarantor denies or disaffirms its liability under its Guarantee; or

(10) (a) with respect to any Collateral, individually or in the aggregate, having a fair market value in excess of $25.0 million, any of the Security Documents ceases to be in full force and effect, (b) any of the Security Documents ceases to give the Holders of the Notes the Liens purported to be created thereby with the priority contemplated thereby, or (c) any of the Security Documents is declared null and void or the Company or any Guarantor denies in writing that it has any further liability under any Security Document or gives written notice to such effect (in each case (i) other than in accordance with the terms of the Indenture, the Intercreditor Agreement and the Security Documents or (ii) unless waived by the requisite lenders under the Credit Agreement if, after that waiver, the Company is in compliance with the covenant described under “— Security for the Notes”), except to the extent that any loss of perfection or priority results from the failure of the Notes Collateral Agent or the Bank Collateral Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Documents, or otherwise results from the gross negligence, bad faith or willful misconduct of the Trustee, the Notes Collateral Agent or the Bank Collateral Agent.

If an Event of Default (other than an Event of Default specified in clause (8) above with respect to the Company) shall occur and be continuing, the Trustee or the Holders of at least 25% in principal amount of outstanding Notes may declare the principal of and accrued interest on all the Notes to be due and payable by notice in writing to the Company and the Trustee specifying the respective Event of Default and that it is a “notice of acceleration” and the same shall become immediately due and payable.

If an Event of Default specified in clause (8) above with respect to the Company occurs and is continuing, then all unpaid principal of, and premium, if any, and accrued and unpaid interest on all of the outstanding Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

The Indenture provides that, at any time after a declaration of acceleration with respect to the Notes as described in the preceding paragraph, the Holders of a majority in principal amount of the Notes may rescind and cancel such declaration and its consequences:

(1) if the rescission would not conflict with any judgment or decree;

(2) if all existing Events of Default have been cured or waived except nonpayment of principal or interest that has become due solely because of the acceleration;

(3) to the extent the payment of such interest is lawful, interest on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid;

(4) if the Company has paid the Trustee its reasonable compensation and reimbursed the Trustee for its expenses, disbursements and advances; and

(5) in the event of the cure or waiver of an Event of Default of the type described in clause (6) of the description above of Events of Default, the Trustee shall have received an Officers’ Certificate and an Opinion of Counsel that such Event of Default has been cured or waived.

No such rescission shall affect any subsequent Default or impair any right consequent thereto.

The Holders of a majority in principal amount of the Notes may waive any existing Default or Event of Default under the Indenture, and its consequences, except a default in the payment of the principal of or interest on any Notes.

Subject to the provisions of the Indenture relating to the duties of the Trustee or the Notes Collateral Agent, the Trustee is under no obligation to exercise any of its rights or powers under the Indenture, the Notes, the Guarantees or the Security Documents at the request, order or direction of any of the Holders, unless such Holders have offered to the Trustee or the Notes Collateral Agent reasonable indemnity. Subject to all provisions of the Indenture and applicable law, the Holders of a majority in aggregate principal amount of the then outstanding Notes have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee and the Notes Collateral Agent or exercising any trust or power conferred on the Trustee or the Notes Collateral Agent, as applicable. Holders of the Notes may not enforce the Indenture or the Notes except as provided in the Indenture and under the TIA.

Notwithstanding the foregoing in no event may any Holder enforce any Lien of the Notes Collateral Agent pursuant to the Security Documents.

 

56

---

Table of Contents

Under the Indenture, the Company is required to provide an Officers’ Certificate to the Trustee promptly upon any such Officers obtaining knowledge of any Default or Event of Default (provided that such Officers shall provide such certification at least annually whether or not they know of any Default or Event of Default) that has occurred and, if applicable, describe such Default or Event of Default and the status thereof.

Legal Defeasance and Covenant Defeasance

The Company may, at its option and at any time, elect to have its obligations and the obligations of the Guarantors discharged with respect to the outstanding Notes (“Legal Defeasance”). Such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the outstanding Notes, except for:

(1) the rights of Holders to receive payments in respect of the principal of, premium, if any, and interest on the Notes when such payments are due;

(2) the Company’s obligations with respect to the Notes concerning issuing temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payments;

(3) the rights, powers, trust, duties and immunities of the Trustee and the Company’s obligations in connection therewith; and

(4) the Legal Defeasance provisions of the Indenture.

In addition, the Company may, at its option and at any time, elect to have the obligations of the Company released with respect to certain covenants that are described in the Indenture (“Covenant Defeasance”) and thereafter any omission to comply with such obligations shall not constitute a Default or Event of Default with respect to the Notes. In the event Covenant Defeasance occurs, certain events (not including non-payment, bankruptcy, receivership, reorganization and insolvency events) described under “Events of Default” will no longer constitute an Event of Default with respect to the Notes.

In order to exercise either Legal Defeasance or Covenant Defeasance:

(1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders cash in U.S. dollars, non-callable U.S. Government obligations, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on the Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be;

(2) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that:

 

(a)

the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or

 

(b)

since the date of the Indenture, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

(3) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that the Holders will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

(4) no Default or Event of Default shall have occurred and be continuing on the date of such deposit (other than a Default or an Event of Default resulting from the borrowing of funds to be applied to such deposit and the grant of any Lien securing such borrowings);

(5) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under the Indenture (other than a Default or an Event of Default resulting from the borrowing of funds to be applied to such deposit and the grant of any Lien securing such borrowings) or any other material agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

(6) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or others;

(7) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with;

(8) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that assuming no intervening bankruptcy of the Company between the date of deposit and the 91st day following the date of deposit and that no Holder is an insider of the Company, after the 91st day following the date of deposit, the trust funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally; and

(9) certain other customary conditions precedent are satisfied.

 

57

---

Table of Contents

Notwithstanding the foregoing, the Opinion of Counsel required by clause (2) above with respect to a Legal Defeasance need not be delivered if all Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or (2) will become due and payable on the maturity date within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company.

Satisfaction and Discharge

The Indenture will be discharged and will cease to be of further effect (except as to surviving rights or registration of transfer or exchange of the Notes, as expressly provided for in the Indenture) as to all outstanding Notes when:

(1) either:

 

(a)

all the Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid and Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust) have been delivered to the Trustee for cancellation; or

 

(b)

all Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or (2) will become due and payable within one year, or are to be called for redemption within one year, under arrangements reasonably satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the Company has irrevocably deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay and discharge the entire Indebtedness on the Notes not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest on the Notes to the date of maturity or redemption, as the case may be, together with irrevocable instructions from the Company directing the Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be;

(2) the Company has paid all other sums payable under the Indenture by the Company; and

(3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent under the Indenture relating to the satisfaction and discharge of the Indenture have been complied with.

Modification of the Indenture

Subject to certain exceptions, the Note Documents may be amended with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including consents obtained in connection with a tender offer or exchange for such Notes) and any past default or compliance with any provisions may also be waived with the consent of the Holders of a majority in principal amount of the Notes then outstanding. However, without the consent of each Holder affected thereby, no amendment may:

(1) reduce the principal amount of Notes whose Holders must consent to an amendment;

(2) reduce the rate of or change or have the effect of changing the time for payment of interest, including defaulted interest, on any Notes;

(3) reduce the principal of or change or have the effect of changing the fixed maturity of any Notes, or change the date on which any Notes may be subject to redemption or reduce the redemption price therefor;

(4) change the provisions applicable to the redemption of any Note as described under “— Optional Redemption”;

(5) make any Notes payable in money other than that stated in the Notes;

(6) make any change in provisions of the Indenture protecting the right of each Holder to receive payment of principal of and interest on such Note on or after the due date thereof or to bring suit to enforce such payment, or permitting Holders of a majority in principal amount of Notes to waive Defaults or Events of Default;

(7) after the Company’s obligation to purchase Notes arises thereunder, amend, change or modify in any material respect the obligation of the Company to make and consummate a Change of Control Offer in the event of a Change of Control or make and consummate a Net Proceeds Offer or a Net ABL Proceeds Offer with respect to any Asset Sale that has been consummated or, after such Change of Control has occurred or such Asset Sale has been consummated, modify any of the provisions or definitions with respect thereto;

(8) modify or change any provision of the Indenture or the related definitions affecting the subordination or ranking of the Notes or any Guarantee in a manner which adversely affects the Holders;

(9) release any Guarantor from any of its obligations under its Guarantee or the Indenture otherwise than in accordance with the terms of the Indenture; or

(10) make any change in the Intercreditor Agreement or in the provisions of the Indenture or any Security Document dealing with the application of proceeds of the Collateral in a manner which adversely affects the Holders.

In addition, without the consent of the Holders of at least two-thirds in principal amount of the Notes then outstanding, no amendment, supplement or waiver may release any Collateral from the Liens of the Security Documents other than in accordance with the Indenture, the Intercreditor Agreement and the Security Documents.

 

58

---

Table of Contents

If Holders of at least two-thirds in principal amount of the Notes then outstanding consent to any release of any Collateral from the Liens of the Security Documents other than a release in accordance with the Indenture, the Intercreditor Agreement and the Security Documents, the Notes Collateral Agent will be entitled to vote the total principal amount of the Notes then outstanding as a block in respect of any vote required for such release under the Security Documents.

Notwithstanding the preceding, from time to time, the Company, the Guarantors, the Notes Collateral Agent and the Trustee, without the consent of the Holders, may amend the Note Documents for certain specified purposes, including:

(1) to cure ambiguities, omissions, defects or inconsistencies;

(2) to provide for the assumption by a successor Person of the obligations of the Company or any Guarantor under the Indenture;

(3) to provide for uncertificated Notes in addition to or in place of certificated Notes (provided that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of the Code);

(4) to add Guarantees with respect to the Notes, including any Guarantee, or to secure the Notes;

(5) to add to the covenants of the Company or any Guarantor for the benefit of the Holders or to surrender any right or power conferred upon the Company or any Guarantor;

(6) to make any change that does not adversely affect the rights of any Holder;

(7) to comply with any requirement of the Commission in connection with the qualification of the Indenture under the TIA;

(8) to conform the text of the Indenture, the Notes or any Guarantee to any provision of this “Description of notes” to the extent that such provision in this “Description of notes” was intended to be a verbatim recitation of a provision of the Indenture, the Notes or such Guarantee; or

(9) to make any amendment to the provisions of the Indenture relating to the transfer and legending of Notes; provided, however, that (a) compliance with the Indenture as so amended would not result in Notes being transferred in violation of the Securities Act or any other applicable securities law and (b) such amendment does not materially and adversely affect the rights of Holders to transfer Notes.

The consent of the Holders is not necessary under the Indenture to approve the particular form of any proposed amendment. It is sufficient if such consent approves the substance of the proposed amendment.

After an amendment under the Indenture becomes effective, the Company is required to mail to Holders a notice briefly describing such amendment. However, the failure to give such notice to all Holders, or any defect therein, will not impair or affect the validity of the amendment.

Transfer

The Notes will be issued in registered form and will be transferable only upon the surrender of the Notes being transferred for registration of transfer. The Company may require payment of a sum sufficient to cover any tax, assessment or other governmental charge payable in connection with certain transfers and exchanges.

Governing Law

The Indenture, the Security Documents and the Intercreditor Agreement provide that each such document, the Notes and the Guarantees will be governed by, and construed in accordance with, the laws of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the law of another jurisdiction would be required thereby.

The Trustee

The Indenture provides that, except during the continuance of an Event of Default, the Trustee will perform only such duties as are specifically set forth in the Indenture. During the existence of an Event of Default, the Trustee will exercise such rights and powers vested in it by the Indenture, and use the same degree of care and skill in its exercise as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

The Indenture and the provisions of the TIA contain certain limitations on the rights of the Trustee, should it become a creditor of the Company, to obtain payments of claims in certain cases or to realize on certain property received in respect of any such claim as security or otherwise. Subject to the TIA, the Trustee will be permitted to engage in other transactions; provided that if the Trustee acquires any conflicting interest as described in the TIA, it must eliminate such conflict within 90 days, apply to the Commission for permission to continue or resign.

No Personal Liability of Directors, Officers, Employees and Stockholders

No director, officer, employee, incorporator or stockholder of the Company or any Guarantor will have any liability for any obligations of the Company or any Guarantor under the Notes, any Guarantee or the Indenture or for any claim based on, in respect of, or by reason of such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. Such waiver and release may not be effective to waive liabilities under the U.S. federal securities laws, and it is the view of the Commission that such a waiver is against public policy.

 

59

---

Table of Contents

Certain Definitions

Set forth below is a summary of certain of the defined terms that will be used in the Indenture.

“Acquired Indebtedness” means Indebtedness of a Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary of the Company or at the time it merges or consolidates with or into the Company or any of its Subsidiaries or assumed in connection with the acquisition of assets from such Person and in each case not incurred by such Person in connection with, or in anticipation or contemplation of, such Person becoming a Restricted Subsidiary of the Company or such acquisition, merger or consolidation.

“Adjusted Treasury Rate” means, with respect to any redemption date, (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities”, for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after August 1, 2016, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month) or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date, in each case calculated on the third business day immediately preceding the redemption date, plus 0.5%.

“Affiliate” means, with respect to any specified Person, any other Person who directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative of the foregoing.

“Applicable Premium” means with respect to a Note at any redemption date the greater of (1) 1.00% of the principal amount of such Note and (2) the excess of (if any) (a) the present value at such redemption date of (i) the redemption price of such Note on August 1, 2016 (such redemption price being described in the first paragraph of “— Optional Redemption” section exclusive of any accrued interest) plus (ii) all required remaining scheduled interest payments due on such Note through August 1, 2016 (but excluding accrued and unpaid interest to the redemption date), computed using a discount rate equal to the Adjusted Treasury Rate, over (b) the principal amount of such Note on such redemption date.

“Asset Acquisition” means (1) an Investment by the Company or any Restricted Subsidiary of the Company in any other Person pursuant to which such Person shall become a Restricted Subsidiary of the Company or any Restricted Subsidiary of the Company, or shall be merged with or into the Company or any Restricted Subsidiary of the Company, or (2) the acquisition by the Company or any Restricted Subsidiary of the Company of the assets of any Person (other than a Restricted Subsidiary of the Company) which constitute all or substantially all of the assets of such Person or comprises any division or line of business of such Person or any other properties or assets of such Person other than in the ordinary course of business.

“Asset Sale” means any direct or indirect sale, issuance, conveyance, transfer, lease (other than operating leases entered into in the ordinary course of business), assignment or other transfer for value by the Company or any of its Restricted Subsidiaries to any Person other than the Company or a Restricted Subsidiary of the Company of:

(1) any Capital Stock of any Restricted Subsidiary of the Company (other than directors’ qualifying shares or shares required by applicable law to be held by a Person other than the Company or a Restricted Subsidiary);

(2) all or substantially all the assets of any division or line of business of the Company or any Restricted Subsidiary; or

(3) any other property or assets of the Company or any Restricted Subsidiary of the Company other than in the ordinary course of business; provided, however, that asset sales or other dispositions shall not include:

 

(a)

a transaction or series of related transactions for which the Company or its Restricted Subsidiaries receive aggregate consideration of less than $2.5 million;

 

(b)

the sale, lease, conveyance, disposition or other transfer of all or substantially all of the assets of the Company as permitted under “— Certain Covenants — Merger, Consolidation and Sale of Assets”;

 

(c)

any Restricted Payment permitted by “— Certain Covenants — Limitation on Restricted Payments”;

 

(d)

the sale or discount, in each case without recourse, of accounts receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof;

 

(e)

disposals or replacements of obsolete or worn out equipment;

 

(f)

a disposition of cash or Cash Equivalents; and

 

(g)

the creation of a Lien (but not the sale or other disposition of the property subject to such Lien).

 

60

---

Table of Contents

“Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at the interest rate borne by the Notes, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/ Leaseback Transaction (including any period for which such lease has been extended); provided, however, that if such Sale/Leaseback Transaction results in a Capitalized Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capitalized Lease Obligation”.

“Bank Collateral Agent” means Wells Fargo Foothill, LLC and any successor under the Credit Agreement, or if there is no Credit Agreement, the “Bank Collateral Agent” designated pursuant to the terms of the Lenders Debt.

“Bank Lenders” means the lenders or holders of Indebtedness issued under the Credit Agreement.

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any successor statute.

“Board of Directors” means, as to any Person, the board of directors (or similar governing body) of such Person or any duly authorized committee thereof.

“Board Resolution” means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee.

“business day” means each day which is not a Legal Holiday.

“Capital Stock” means:

(1) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of Common Stock and Preferred Stock of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing; and

(2) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person, and all options, warrants or other rights to purchase or acquire any of the foregoing.

“Capitalized Lease Obligation” means, as to any Person, the obligations of such Person under a lease that are required to be classified and accounted for as capital lease obligations under GAAP and, for purposes of this definition, the amount of such obligations at any date shall be the capitalized amount of such obligations at such date, determined in accordance with GAAP.

“Cash Equivalents” means:

(1) marketable direct obligations issued by, or unconditionally guaranteed by, the U.S. Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof;

(2) marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Ratings Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”);

(3) commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s;

(4) certificates of deposit or bankers’ acceptances maturing within one year from the date of acquisition thereof issued by any bank organized under the laws of the United States of America or any State thereof or the District of Columbia or any U.S. branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $250.0 million;

(5) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clause (1) above entered into with any bank meeting the qualifications specified in clause (4) above; and

(6) investments in money market funds which invest substantially all their assets in securities of the types described in clauses (1) through (5) above.

“Change of Control” means the occurrence of one or more of the following events:

(1) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”), together with any Affiliates thereof (whether or not otherwise in compliance with the provisions of the Indenture);

(2) the approval by the holders of Capital Stock of the Company of any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with the provisions of the Indenture);

(3) any Person or Group shall become the owner, directly or indirectly, beneficially or of record, of shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Company;

 

61

---

Table of Contents

(4) any merger or consolidation of the Company with or into another Person or the merger of another Person with or into the Company other than a transaction following which holders of securities that represented 100% the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Company immediately prior to such transaction (or other securities into which such securities are converted as part of such merger or consolidation transaction) own directly or indirectly at least a majority of the voting power of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the surviving Person in such merger or consolidation transaction immediately after such transaction and in substantially the same proportion as before the transaction; or

(5) the replacement of a majority of the Board of Directors of the Company over a two-year period from the directors who constituted the Board of Directors of the Company at the beginning of such period, and such replacement shall not have been approved by a vote of at least a majority of the Board of Directors of the Company then still in office who either were members of such Board of Directors at the beginning of such period or whose election as a member of such Board of Directors was previously so approved.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collateral” means all the properties and assets subject to the Liens created by the Security Documents.

“Collateral Account” means one or more deposit accounts or securities accounts under the control of the Trustee or the Notes Collateral Agent holding only the proceeds of any sale or disposition of any Notes Priority Collateral.

“Commission” means the Securities and Exchange Commission.

“Commodity Agreement” means any commodity swap agreement, commodity cap agreement or commodity collar agreement or other similar agreement or arrangement designed to protect against fluctuations in commodity prices.

“Common Stock” of any Person means any and all shares, interests or other participations in, and other equivalents (however designated and whether voting or non-voting) of such Person’s common stock, whether outstanding on the Issue Date or issued after the Issue Date, and includes, without limitation, all series and classes of such common stock.

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes from the redemption date to August 1, 2016, that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a maturity most nearly equal to August 1, 2016.

“Comparable Treasury Price” means, with respect to any redemption date, if clause (ii) of the Adjusted Treasury Rate is applicable, the average of three, or such lesser number as is obtained by the Trustee, Reference Treasury Dealer Quotations for such redemption date.

“Consolidated EBITDA” means, with respect to any Person, for any period, the sum (without duplication) of:

(1) Consolidated Net Income; and

(2) to the extent Consolidated Net Income has been reduced thereby:

 

(a)

all income taxes of such Person and its Restricted Subsidiaries paid or accrued in accordance with GAAP for such period;

 

(b)

Consolidated Interest Expense; and

 

(c)

Consolidated Non-cash Charges less any non-cash items increasing Consolidated Net Income for such period, all as determined on a consolidated basis for such Person and its Restricted Subsidiaries in accordance with GAAP.

Notwithstanding the foregoing, the provision for income taxes of, and the Consolidated Non-cash Charges of, a Restricted Subsidiary shall be added to Consolidated Net Income to compute Consolidated EBITDA only to the extent (and in the same proportion, including by reason of minority interests) that the net income or loss of such Restricted Subsidiary was included in calculating Consolidated Net Income.

“Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the ratio of Consolidated EBITDA of such Person during the four full fiscal quarters (the “Four Quarter Period”) ending prior to the date of the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio for which financial statements are available (the “Transaction Date”) to Consolidated Fixed Charges of such Person for the Four Quarter Period. In addition to and without limitation of the foregoing, for purposes of this definition, “Consolidated EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving effect on a pro forma basis for the period of such calculation to:

(1) the incurrence or repayment of any Indebtedness of such Person or any of its Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the need to make such calculation and any incurrence or repayment of other Indebtedness (and the application of the proceeds thereof), other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to working capital facilities, occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to the Transaction Date, as if such incurrence or repayment, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Four Quarter Period; and

 

62

---

Table of Contents

(2) any asset sales or other dispositions or Asset Acquisitions (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of such Person or one of its Restricted Subsidiaries (including any Person who becomes a Restricted Subsidiary as a result of the Asset Acquisition) incurring, assuming or otherwise being liable for Acquired Indebtedness and also including any Consolidated EBITDA (including any pro forma expense and cost reductions calculated on a basis consistent with Regulation S-X under the Exchange Act) attributable to the assets which are the subject of the Asset Acquisition or asset sale or other disposition during the Four Quarter Period) occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to the Transaction Date, as if such asset sale or other disposition or Asset Acquisition (including the incurrence, assumption or liability for any such Acquired Indebtedness) occurred on the first day of the Four Quarter Period. If such Person or any of its Restricted Subsidiaries directly or indirectly guarantees Indebtedness of a third Person, the preceding sentence shall give effect to the incurrence of such guaranteed Indebtedness as if such Person or any Restricted Subsidiary of such Person had directly incurred or otherwise assumed such guaranteed Indebtedness.

Furthermore, in calculating “Consolidated Fixed Charges” for purposes of determining the denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage Ratio”:

(1) interest on outstanding Indebtedness determined on a fluctuating basis as of the Transaction Date and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the Transaction Date; and

(2) notwithstanding clause (1) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Interest Swap Obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of such agreements.

“Consolidated Fixed Charges” means, with respect to any Person for any period, the sum, without duplication, of:

(1) Consolidated Interest Expense; plus

(2) the product of (x) the amount of all dividend payments on any series of Preferred Stock of such Person and, to the extent permitted under the Indenture, its Restricted Subsidiaries (other than dividends paid in Qualified Capital Stock and other than dividends paid by a Restricted Subsidiary of such Person to such Person or to a Restricted Subsidiary of such Person) paid, accrued or scheduled to be paid or accrued during such period times (y) a fraction, the numerator of which is one and the denominator of which is one minus the then current effective consolidated federal, state and local income tax rate of such Person, expressed as a decimal.

“Consolidated Interest Expense” means, with respect to any Person for any period, the sum of, without duplication:

(1) the aggregate of the interest expense of such Person and its Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, including without limitation: (a) any amortization of debt discount and amortization or write-off of deferred financing costs; (b) the net costs under Interest Swap Obligations; (c) all capitalized interest; and (d) the interest portion of any deferred payment obligation;

(2) the interest component of Capitalized Lease Obligations, the interest portion of rent expense associated with Attributable Debt in respect of the relevant lease giving rise thereto, determined as if such lease were a capitalized lease in accordance with GAAP, and the interest component of any deferred payment obligations, in each case paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such period as determined on a consolidated basis in accordance with GAAP;

(3) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing;

(4) net payments pursuant to Interest Swap Obligations; and

(5) interest accruing on any Indebtedness of any other Person to the extent such Indebtedness is Guaranteed by (or secured by a Lien on the assets of) the Company or any Restricted Subsidiary.

“Consolidated Leverage Ratio” means, with respect to any Person, as of any date of determination the ratio of (1) the aggregate amount of Indebtedness of the Company and its Restricted Subsidiaries as of such date of determination to (2) the aggregate amount of Consolidated EBITDA for the Four Quarter Period, in each case with such pro forma adjustments to the aggregate amount of Indebtedness of the Company and its Restricted Subsidiaries and Consolidated EBITDA as are consistent with the pro forma adjustment provisions set forth in the definition of Consolidated Fixed Charge Coverage Ratio.

“Consolidated Net Income” means, with respect to any Person (“referent Person”), for any period, the aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a consolidated basis, determined in accordance with GAAP; provided that there shall be excluded therefrom:

(1) after-tax gains (or losses) from Asset Sales or abandonments or reserves relating thereto;

(2) after-tax items classified as extraordinary or nonrecurring gains (or losses);

(3) the net income (but not loss) of any Restricted Subsidiary (other than any Guarantor) of the referent Person to the extent that the declaration of dividends or similar distributions by that Restricted Subsidiary of that income is restricted by a contract, operation of law or otherwise, except that:

 

63

---

Table of Contents

(a)

subject to the exclusion contained in clause (1) above, the Company’s equity in the net income of any such Restricted Subsidiary for such period shall be included in such Consolidated Net Income (to the extent not already included therein) up to the aggregate amount of cash actually distributed by such Restricted Subsidiary during such period to the Company or another Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary, to the limitation contained in this clause); and

 

(b)

the Company’s equity in a net loss of any such Restricted Subsidiary for such period shall be included (to the extent not already included therein) in determining such Consolidated Net Income;

(4) the net income of any Person, other than a Restricted Subsidiary of the referent Person, except to the extent of cash dividends or distributions paid to the referent Person or to a Restricted Subsidiary of the referent Person by such Person;

(5) any restoration to income of any contingency reserve, except to the extent that provision for such reserve was made out of Consolidated Net Income accrued at any time following the Issue Date;

(6) income or loss attributable to discontinued operations (including, without limitation, operations disposed of during such period whether or not such operations were classified as discontinued);

(7) any net after-tax gain (or loss) attributable to the early retirement or conversion of Indebtedness;

(8) any net gain or loss attributable to the movement in the mark to market valuation of Hedging Obligations or other derivative instruments;

(9) the cumulative effect of a change in accounting principles; and

(10) in the case of a successor to the referent Person by consolidation or merger or as a transferee of the referent Person’s assets, any earnings of the successor corporation prior to such consolidation, merger or transfer of assets.

Notwithstanding the foregoing, for the purposes of the covenant described under “ — Certain Covenants — Limitation on Restricted Payments” only, there shall be excluded from Consolidated Net Income any repurchases, repayments or redemptions of Investments, proceeds realized on the sale of Investments or return of capital to the Company or a Restricted Subsidiary to the extent such repurchases, repayments, redemptions, proceeds or returns increase the amount of Restricted Payments permitted under such covenant pursuant to clause (4)(iii)(z) thereof.

“Consolidated Non-cash Charges” means, with respect to any Person, for any period, the aggregate depreciation, amortization and other non-cash expenses of such Person and its Restricted Subsidiaries reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP (excluding any such charges constituting an extraordinary item or loss or any such charge which requires an accrual of or a reserve for cash charges for any future period).

“Consolidated Secured Indebtedness” means, as of any date of determination, an amount equal to the Consolidated Total Indebtedness as of such date that is then secured by Liens on property or assets of the Company or any Restricted Subsidiary plus, the aggregate additional Indebtedness that the Company could incur as of such date pursuant to clause (2) of the covenant described under “ — Certain Covenants — Limitation on Incurrence of Additional Indebtedness”.

“Consolidated Secured Leverage Ratio” means, with respect to any Person, as of any date of determination the ratio of (1) Consolidated Secured Indebtedness to (2) the aggregate amount of Consolidated EBITDA for the Four Quarter Period, in each case with such pro forma adjustments to Consolidated Secured Indebtedness and Consolidated EBITDA as are consistent with the pro forma adjustment provisions set forth in the definition of Consolidated Fixed Charge Coverage Ratio; provided, however, that for purposes of the calculation of the Consolidated Secured Leverage Ratio, in connection with the incurrence of any Lien pursuant to clause (20) of the definition of “Permitted Liens”, the Company or its Restricted Subsidiaries may elect, pursuant to an Officers’ Certificate delivered to the Trustee, to treat all or any portion of the commitment under any Indebtedness which is to be secured by such Lien as being incurred at such time and any subsequent incurrence of Indebtedness under such commitment shall not be deemed, for purposes of this calculation, to be an incurrence at such subsequent time.

“Consolidated Total Indebtedness” means, as of any date determination, an amount equal to the aggregate amount of all outstanding Indebtedness of the Company and its Restricted Subsidiaries on a consolidated basis.

“Credit Agreement” means that certain Second Amended and Restated Loan and Security Agreement, effective as of December 31, 2013, by and among the Company and each of its subsidiaries signatory thereto, the lenders signatory thereto and Wells Fargo Foothill, LLC, as arranger and administrative agent, together with the related documents thereto (including, without limitation, any guarantee agreements and security documents), in each case as such agreements may be amended (including any amendment and restatement thereof), supplemented or otherwise modified from time to time, including one or more credit agreements, loan agreements, indentures or similar agreements extending the maturity of, refinancing, replacing, renewing or otherwise restructuring (including increasing the amount of available borrowings thereunder or adding Restricted Subsidiaries of the Company as additional borrowers or guarantors thereunder) all or any portion of the Indebtedness under such agreement or agreements or any successor or replacement agreement or agreements and whether by the same or any other agent, lender or group of lenders.

“Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect the Company or any Restricted Subsidiary of the Company against fluctuations in currency values.

“Default” means an event or condition the occurrence of which is, or with the lapse of time or the giving of notice or both would be, an Event of Default.

 

64

---

Table of Contents

“Discharge of ABL Obligations” means, (1) the indefeasible payment in full in cash of all Lenders Debt (other than outstanding letters of credit, secured cash management services, secured Hedging Obligations and contingent indemnification obligations for which no underlying claim has been asserted); (2) termination or expiration of all commitments, if any, to extend credit that would constitute Lenders Debt (other than commitments to extend credit that would constitute secured cash management services); (3) termination or cash collateralization (in an amount and in the manner required by the Credit Agreement) of all outstanding letters of credit; and (4) termination or cash collateralization of any secured Hedging Obligations; provided that the Discharge of ABL Obligations shall not be deemed to have occurred in connection with an exchange, replacement, refunding, refinancing, extension, renewal, restatement, amendment, supplement or modification of such Lenders Debt with Indebtedness secured by ABL Priority Collateral on a first-priority basis under an agreement that has been designated in writing by the Bank Collateral Agent under the Credit Agreement as so refinancing the Credit Agreement and the Notes Collateral Agent in accordance with the terms of the Intercreditor Agreement.

“Disqualified Capital Stock” means that portion of any Capital Stock which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable at the option of the holder thereof), or upon the happening of any event (other than an event which would constitute a Change of Control), matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole option of the holder thereof on or prior to the final maturity date of the Notes; provided, however, that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to purchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change of control” occurring prior to the first anniversary after the final maturity date of the Notes shall not constitute Disqualified Stock if:

(1) the “asset sale” or “change of control” provisions applicable to such Capital Stock are not more favorable to the holders of such Capital Stock than the terms applicable to the Notes and described under “— Certain Covenants — Limitation on Asset Sales” and “ — Change of Control”; and

(2) any such requirement only becomes operative after compliance with such terms applicable to the Notes, including the purchase of any Notes tendered pursuant thereto.

“Domestic Subsidiary” means, with respect to any Person, any Restricted Subsidiary of such Person other than a Foreign Subsidiary.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

“Excluded Assets” means the collective reference to:

(1) any immaterial fee-owned real property;

(2) all leasehold interests in real property;

(3) motor vehicles, airplanes and other assets subject to certificates of title;

(4) except as expressly provided in the Security Documents, letter of credit rights and commercial tort claims;

(5) any governmental licenses or state or local franchises, charters and authorizations to the extent a security interest is prohibited or restricted thereby;

(6) pledges and security interests prohibited or restricted by applicable law (including any requirement to obtain the consent of any governmental authority or third party);

(7) any lease, license or agreement or any property subject to such agreement to the extent that a grant of a security interest therein would violate or invalidate such lease, license or agreement or create a right of termination in favor of any other party thereto or otherwise require consent thereunder (after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code or other applicable law) (including, for the avoidance of doubt, the collateral securing the Secured Equipment Note), other than proceeds and receivables thereof, the assignment of which is expressly deemed effective under the Uniform Commercial Code or other applicable law notwithstanding such prohibition;

(8) any assets to the extent a security interest in such assets would reasonably be expected to result in material adverse tax consequences as reasonably determined by the Company;

(9) any intent-to-use application trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if any, that, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under applicable federal law;

(10) stock and assets of Unrestricted Subsidiaries;

(11) interests in joint ventures and non-wholly owned subsidiaries which cannot be pledged without the consent of third parties after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code or other applicable law;

(12) Capital Stock representing voting stock in excess of 65% of the outstanding voting stock of any Foreign Subsidiary;

(13) rolling stock;

(14) property and assets of Zena and the Nitric Acid Supply Operating and Maintenance Agreement, dated October 23, 2008, between El Dorado Nitrogen, L.P. and El Dorado Chemical Company, and Bayer MaterialScience, LLC (the “Bayer Agreement”);

 

65

---

Table of Contents

(15) with respect to the Notes Priority Collateral, general intangibles (other than those equity interest of each limited liability company, limited partnership or other business entity that is a Restricted Subsidiary);

(16) with respect to the Notes Priority Collateral, intellectual property; and

(17) assets where the cost of obtaining a security interest therein exceeds the practical benefit to the Noteholder Secured Parties afforded thereby.

“fair market value” means, with respect to any asset or property, the price which could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the transaction. Fair market value shall be determined by the Board of Directors of the Company acting reasonably and in good faith and shall be evidenced by a Board Resolution of the Board of Directors of the Company delivered to the Trustee.

“Foreign Subsidiary” means, with respect to any Person, any Subsidiary of such Person that is not organized or existing under the laws of the United States, any State thereof of the District of Columbia, and any Subsidiary of such Subsidiary.

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession of the United States, which are in effect as of the Issue Date, except with respect to any reports or financial information required to be delivered pursuant to the covenant set forth under “ — Certain Covenants — Reports to Holders”, which shall be prepared in accordance with GAAP as in effect on the date thereof.

“Grantor” means the Company and the Guarantors.

“Guarantee” means a guarantee of the Notes by a Guarantor.

“Guarantee Agreement” means a supplemental indenture to the Indenture, in a form reasonably satisfactory to the Trustee, pursuant to which a Guarantor guarantees the Company’s obligations with respect to the Notes on the terms provided for in the Indenture.

“Guarantor” means (1) the Restricted Subsidiaries of the Company on the Issue Date and (2) each of the Company’s Restricted Subsidiaries that in the future executes a Guarantee Agreement in which such Restricted Subsidiary agrees to be bound by the terms of the Indenture as a Guarantor; provided that any Person constituting a Guarantor as described above shall cease to constitute a Guarantor when its respective Guarantee is released in accordance with the terms of the Indenture.

“Hedging Obligations” means, with respect to any Person, any Interest Swap Obligations and the obligations of such Person under any Commodity Agreement or Currency Agreement.

“Indebtedness” means with respect to any Person, without duplication:

(1) all Obligations of such Person for borrowed money;

(2) all Obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

(3) all Capitalized Lease Obligations of such Person and all Attributable Debt in respect of Sale/Leaseback Transactions entered into by such Person;

(4) all Obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all Obligations under any title retention agreement (but excluding trade accounts payable and other accrued liabilities arising in the ordinary course of business that are not overdue by 90 days or more or are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted);

(5) all Obligations for the reimbursement of any obligor on any letter of credit, banker’s acceptance or similar credit transaction (other than obligations with respect to letters of credit securing obligations (other than Obligations described in clauses (1) through (4) above) entered into in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the tenth business day following payment on the letter of credit);

(6) guarantees and other contingent obligations in respect of Indebtedness referred to in clauses (1) through (5) above and clause (8) below;

(7) all Obligations of any other Person of the type referred to in clauses (1) through (6) which are secured by any Lien on any property or asset of such Person, the amount of such Obligation being deemed to be the lesser of the fair market value of such property or asset or the amount of the Obligation so secured;

(8) all net Hedging Obligations of such Person (the amount of any such obligations to be equal at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such Person at such time); and

(9) all Disqualified Capital Stock issued by such Person with the amount of Indebtedness represented by such Disqualified Capital Stock being equal to the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price, but excluding accrued dividends, if any.

 

66

---

Table of Contents

For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to the Indenture, and if such price is based upon, or measured by, the fair market value of such Disqualified Capital Stock, such fair market value shall be determined reasonably and in good faith by the Board of Directors of the issuer of such Disqualified Capital Stock.

Notwithstanding the foregoing, in connection with the purchase by the Company or any Restricted Subsidiary of any business, the term “Indebtedness” will exclude post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet or such payment depends on the performance of such business after the closing; provided, however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed and determined, the amount is paid within 30 days thereafter.

The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all obligations as described above; provided, however, that in the case of Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the accreted value thereof at such time.

“Independent Financial Advisor” means an investment banking firm, accounting firm or appraisal firm of national standing: (1) which does not, and whose directors, officers and employees or Affiliates do not, have a direct or indirect financial interest in the Company and (2) which, in the judgment of the Board of Directors of the Company, is otherwise independent and qualified to perform the task for which it is to be engaged.

“Intercreditor Agreement” means the Intercreditor Agreement dated as of the Issue Date, among the Bank Collateral Agent, the Notes Collateral Agent, the Company and each Guarantor, as it may be amended from time to time in accordance with the Indenture.

“Interest Swap Obligations” means the obligations of any Person pursuant to any arrangement with any other Person, whereby, directly or indirectly, such Person is entitled to receive from time to time periodic payments calculated by applying either a floating or a fixed rate of interest on a stated notional amount in exchange for periodic payments made by such other Person calculated by applying a fixed or a floating rate of interest on the same notional amount and shall include, without limitation, interest rate swaps, caps, floors, collars and similar agreements.

“Investment” means, with respect to any Person, any direct or indirect advance, loan or other extension of credit (including, without limitation, a guarantee) or capital contribution to (by means of any transfer of cash or other property to others or any payment for property or services for the account or use of others), or any purchase or acquisition by such Person of any Capital Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any other Person. “Investment” shall exclude extensions of trade credit by the Company and its Restricted Subsidiaries on commercially reasonable terms in accordance with normal trade practices of the Company or such Restricted Subsidiary, as the case may be. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Common Stock of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or disposition, the Company no longer owns, directly or indirectly, greater than 50% of the outstanding Common Stock of such Restricted Subsidiary, the Company shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value of the Common Stock of such Restricted Subsidiary not sold or disposed of. Except as otherwise provided for herein, the amount of an Investment shall be its fair market value at the time the Investment is made and without giving effect to subsequent changes in value.

“Issue Date” means August 7, 2013.

“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions are not required to be open in the State of New York.

“Lenders Debt” means all Obligations and all amounts owing, due or secured under the terms of the Credit Agreement or any other Credit Agreement security document, whether now existing or arising hereafter, including all principal, premium, interest, fees, attorneys fees, costs, charges, expenses or reimbursement obligations, obligations to post cash collateral in respect of letters of credit, certain cash management services or indemnities in respect thereof, any other indemnities or guarantees, and all other amounts payable under or secured by any Credit Agreement security document (including, in each case, all Obligations thereunder, certain cash management services and all amounts accruing on or after the commencement of any insolvency proceeding relating to any Grantor, or that would have accrued or become due under the terms of the Credit Agreement security document but for the effect of the insolvency proceeding and irrespective of whether a claim for all or any portion of such amounts is allowable or allowed in such insolvency proceeding).

“Lien” means any lien (statutory or otherwise), mortgage or deed of trust, charge, pledge, lien, security interest, assignment, easement, hypothecation, claim, preference, priority or other encumbrance upon or with respect to any priority of any kind (including any conditional sale, capital lease or other title retention agreement, any leases in the nature thereof) real or personal, moveable or immovable, now owned or hereafter acquired; provided, however, that in no event shall an operating lease be deemed to constitute a Lien. A Person will be deemed to own subject to a Lien any property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capitalized Lease Obligation or other title retention agreement.

 

67

---

Table of Contents

“Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of cash or Cash Equivalents including payments in respect of deferred payment obligations when received in the form of cash or Cash Equivalents (other than the portion of any such deferred payment constituting interest) received by the Company or any of its Restricted Subsidiaries from such Asset Sale net of:

(1) reasonable out-of-pocket expenses and fees relating to such Asset Sale (including, without limitation, legal, accounting and investment banking fees and sales commissions);

(2) taxes paid or payable after taking into account any reduction in consolidated tax liability due to available tax credits or deductions and any tax sharing arrangements;

(3) repayment of Indebtedness that is secured by the property or assets that are the subject of such Asset Sale, in accordance with the terms of any Lien upon or other security agreement of any kind with respect to such assets, or which must by its terms, or in order to obtain a necessary consent to such Asset Sale, or by applicable law, be repaid out of the proceeds from such Asset Sale; and

(4) appropriate amounts to be provided by the Company or any Restricted Subsidiary, as the case may be, as a reserve, in accordance with GAAP, against any liabilities associated with such Asset Sale and retained by the Company or any Restricted Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale.

“Note Documents” means the Notes (including Additional Notes), the Guarantees, the Indenture, the Security Documents and the Intercreditor Agreement.

“Notes” means the debt securities of the Company issued pursuant to the Indenture in exchange for, and in an aggregate principal amount equal to, the Notes, in compliance with the terms of the Registration Rights Agreement.

“Obligations” means all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness.

“Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer or the Secretary of the Company.

“Officers’ Certificate” means a certificate signed by two Officers.

“Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

“Other Pari Passu Lien Obligations” means any Indebtedness or other Obligations (including Hedging Obligations) having Pari Passu Lien Priority relative to the Notes with respect to the Collateral and that is not secured by any other assets and, in the case of Indebtedness for borrowed money, has a stated maturity that is equal to or longer than the Notes; provided that an authorized representative of the holders of such Indebtedness (other than Additional Notes) shall have executed a joinder to the Security Documents and the Intercreditor Agreement.

“Pari Passu Lien Priority” means, relative to specified Indebtedness, having equal Lien priority on specified Collateral and either subject to the Intercreditor Agreement on a substantially identical basis as the holders of such specified Indebtedness or subject to intercreditor agreements providing holders of the Indebtedness intended to have Pari Passu Lien Priority with substantially the same rights and obligations that the holders of such specified Indebtedness have pursuant to the Intercreditor Agreement as to the specified Collateral.

“Pass-Through Foreign Holdco” means any Domestic Subsidiary the sole assets of which are Capital Stock of a Foreign Subsidiary and, if applicable, debt of such Foreign Subsidiary.

“Permitted Collateral Liens” means:

(1) Liens securing the Notes outstanding on the Issue Date, Refinancing Indebtedness with respect to such Notes, the Guarantees relating thereto and any obligations with respect to such Notes, Refinancing Indebtedness and the Guarantees;

(2) Liens existing on the Issue Date (other than Liens specified in clause (1) above or securing Lenders Debt)

(3) Liens described in clauses (1), (2), (3), (4), (5), (6), (7), (8), (10), (13), (15), (16), (17), (18), (19), (20) and (22) of the definition of Permitted Liens;

(4) Liens securing any Other Pari Passu Lien Obligations incurred pursuant to the covenant described under “— Certain Covenants — Limitation on incurrence of Additional Indebtedness;” provided, however, that at the time of Incurrence of such Other Pari Passu Lien Obligations and after giving pro forma effect thereto, the Consolidated Secured Leverage Ratio would be no greater than 2.75 to 1.00; and

(5) Liens on the Notes Priority Collateral in favor of any collateral agent relating to such collateral agent’s administrative expenses with respect to the Notes Priority Collateral.

“Permitted Investments” means:

(1) Investments by the Company or any Restricted Subsidiary of the Company in any Person that is or will become immediately after such Investment a Restricted Subsidiary of the Company or that will merge or consolidate into the Company or a Restricted Subsidiary of the Company; provided, however, that the primary business of such Person is a Related Business;

 

68

---

Table of Contents

(2) Investments in the Company by any Restricted Subsidiary of the Company; provided that any Indebtedness evidencing such Investment and held by a Restricted Subsidiary that is not a Guarantor is unsecured and subordinated, pursuant to a written agreement, to the Company’s obligations under the Notes and the Indenture;

(3) investments in cash and Cash Equivalents;

(4) loans and advances to employees, directors and officers of the Company and its Restricted Subsidiaries in the ordinary course of business for bona fide business purposes not in excess of $5.0 million at any one time outstanding;

(5) Currency Agreements and Interest Swap Obligations entered into in the ordinary course of the Company’s or its Restricted Subsidiaries’ businesses and otherwise in compliance with the Indenture;

(6) Investments in securities of trade creditors or customers received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such trade creditors or customers or in good faith settlement of delinquent obligations of such trade creditors or customers;

(7) Investments made by the Company or its Restricted Subsidiaries as a result of consideration received in connection with an Asset Sale made in compliance with the “Limitation on Asset Sales” covenant;

(8) Investments represented by guarantees that are otherwise permitted under the Indenture;

(9) Investments the payment for which is Qualified Capital Stock of the Company;

(10) joint ventures to the extent such Investments, when taken together with all other Investments made pursuant to this clause (10) (including the fair market value of any assets transferred thereto), do not exceed $35.0 million; provided, however, that at the time of, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof;

(11) receivables owing to the Company or any Restricted Subsidiary if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms; provided, however, that such trade terms may include such concessionary trade terms as the Company or any such Restricted Subsidiary deems reasonable under the circumstances;

(12) payroll, travel and similar advances to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes and that are made in the ordinary course of business;

(13) any Person to the extent such Investments consist of prepaid expenses, negotiable instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits made in the ordinary course of business by the Company or any Restricted Subsidiary;

(14) stock, obligations or securities received in settlement of debts created in the ordinary course of business and owing to the Company or any Restricted Subsidiary or in satisfaction of judgments; and

(15) additional Investments not to exceed $50.0 million at any one time outstanding.

“Permitted Liens” means the following types of Liens:

(1) Liens for taxes, assessments or governmental charges or claims either (a) not delinquent or (b) contested in good faith by appropriate proceedings and as to which the Company or its Restricted Subsidiaries shall have set aside on its books such reserves as may be required pursuant to GAAP;

(2) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary course of business for sums not yet delinquent or being contested in good faith, if such reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made in respect thereof;

(3) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, including any Lien securing letters of credit issued in the ordinary course of business consistent with past practice in connection therewith, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money);

(4) judgment Liens not giving rise to an Event of Default so long as such Lien is adequately bonded and any appropriate legal proceedings which may have been duly initiated for the review of such judgment shall not have been finally terminated or the period within which such proceedings may be initiated shall not have expired;

(5) easements, rights-of-way, zoning restrictions and other similar charges or encumbrances in respect of real property not interfering in any material respect with the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

(6) any interest or title of a lessor under any Capitalized Lease Obligation; provided that such Liens do not extend to any property or assets which is not leased property subject to such Capitalized Lease Obligation;

(7) Liens securing (A) Purchase Money Indebtedness incurred in the ordinary course of business pursuant to clause (5) of the second paragraph under “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”; provided, however, that (a) such Purchase Money Indebtedness shall not exceed the purchase price or other cost of such property or equipment and shall not be secured by any property or equipment of the Company or any Restricted Subsidiary of the Company other than the property and equipment so acquired and (b) the Lien securing such Purchase Money Indebtedness shall be created within 90 days of such acquisition and (B) the Secured Equipment Note;

 

69

---

Table of Contents

(8) Liens upon specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

(9) Liens securing reimbursement obligations with respect to commercial letters of credit which encumber documents and other property relating to such letters of credit and products and proceeds thereof;

(10) Liens encumbering deposits made to secure obligations arising from statutory, regulatory, contractual, or warranty requirements of the Company or any of its Restricted Subsidiaries, including rights of offset and set-off;

(11) Liens securing Interest Swap Obligations which Interest Swap Obligations relate to Indebtedness that is otherwise permitted under the Indenture;

(12) Liens securing Indebtedness under Currency Agreements;

(13) Liens securing Acquired Indebtedness incurred in accordance with the “Limitation on Incurrence of Additional Indebtedness” covenant; provided that:

 

(a)

such Liens secured such Acquired Indebtedness at the time of and prior to the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company and were not granted in connection with, or in anticipation of, the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company; and

 

(b)

such Liens do not extend to or cover any property or assets of the Company or of any of its Restricted Subsidiaries other than the property or assets that secured the Acquired Indebtedness prior to the time such Indebtedness became Acquired Indebtedness of the Company or a Restricted Subsidiary of the Company and are no more favorable to the lienholders than those securing the Acquired Indebtedness prior to the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company;

(14) Liens on assets of a Restricted Subsidiary of the Company that is not a Guarantor to secure Indebtedness of such Restricted Subsidiary that is otherwise permitted under the Indenture;

(15) leases, subleases, licenses and sublicenses granted to others that do not materially interfere with the ordinary cause of business of the Company and its Restricted Subsidiaries;

(16) banker’s Liens, rights of setoff and similar Liens with respect to cash and Cash Equivalents on deposit in one or more bank accounts in the ordinary course of business;

(17) Liens arising from filing Uniform Commercial Code financing statements regarding operating leases entered into by such Person in the ordinary course of business;

(18) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties in connection with the importation of goods;

(19) other Liens securing Obligations which do not exceed $50.0 million at any one time outstanding;

(20) Liens securing Indebtedness incurred pursuant to clause (3) of the second paragraph under “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”; provided, that such Indebtedness shall not be secured by any property or other assets of the Company or any of its Restricted Subsidiaries other than such property or assets whose acquisition or development is financed by such Indebtedness;

(21) other Liens securing Indebtedness; provided, however, that at the time of incurrence after giving pro forma effect thereto, the Consolidated Secured Leverage Ratio would be no greater than 2.0 to 1.0; and

(22) Liens on the Collateral in favor of any collateral agent relating to such collateral agent’s administrative expenses with respect to the Collateral.

“Person” means an individual, partnership, corporation, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof or any other entity.

“Preferred Stock” of any Person means any Capital Stock of such Person that has preferential rights to any other Capital Stock of such Person with respect to dividends or redemptions or upon liquidation.

“principal” of a Note means the principal of the Note plus the premium, if any, payable on the Note which is due or overdue or is to become due at the relevant time.

“Prospectus” means this Prospectus dated as of the date set forth on the cover page hereof related to the offer and sale of the Notes in the exchange offer.

“Public Equity Offering” means an underwritten public offering of Qualified Capital Stock of the Company by the Company pursuant to a registration statement filed with the Commission in accordance with the Securities Act. Notwithstanding the foregoing, the term “Public Equity Offering” shall not include: (1) any issuance and sale with respect to common stock registered on Form S-4 or Form S-8 or (2) any issuance and sale to any Subsidiary of the Company.

 

70

---

Table of Contents

“Purchase Money Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries incurred in the normal course of business (1) consisting of the deferred purchase price of property, conditional sale obligations, obligations under any title retention agreement, other purchase money obligations and obligations in respect of industrial revenue bonds or similar Indebtedness, in each case where the maturity of such Indebtedness does not exceed the anticipated useful life of the asset being financed, and (2) incurred to finance the acquisition by the Company or a Restricted Subsidiary of such asset, including additions and improvements, in the ordinary course of business; provided, however, that any Lien arising in connection with any such Indebtedness shall be limited to the specific asset being financed or, in the case of real property or fixtures, including additions and improvements, the real property on which such asset is attached; provided further, however, that such Indebtedness is incurred within 180 days after such acquisition of such assets.

“Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock; provided, however, that such Capital Stock shall not be deemed Qualified Capital Stock to the extent sold to a Subsidiary of such Person or financed, directly or indirectly, using funds (1) borrowed from such Person or any Subsidiary of such Person or (2) contributed, extended, guaranteed or advanced by such Person or any Subsidiary of such Person (including, in respect of any employee stock ownership or benefit plan). Unless otherwise specified, Qualified Capital stock refers to Qualified Capital Stock of the Company.

“Quotation Agent” means the Reference Treasury Dealer selected by the Trustee after consultation with the Company.

“Reference Treasury Dealer” means Wells Fargo Securities, LLC and its successors and assigns and two other nationally recognized investment banking firms selected by the Company that are primary U.S. Government securities dealers.

“Reference Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal amount, quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day immediately preceding such redemption date.

“Refinance” means, in respect of any security or Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in exchange or replacement for, such security or Indebtedness in whole or in part. “Refinanced” and “Refinancing” shall have correlative meanings.

“Refinancing Indebtedness” means any Refinancing by the Company or any Restricted Subsidiary of the Company of Indebtedness incurred in accordance with the “Limitation on Incurrence of Additional Indebtedness” covenant (other than pursuant to clauses (2), (3), (5), (6), (7), (8), (9), (12) or (14) of the second paragraph under “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”), in each case that does not:

(1) result in an increase in the aggregate principal amount of Indebtedness of such Person as of the date of such proposed Refinancing (plus the amount of any premium required to be paid under the terms of the instrument governing such Indebtedness and plus the amount of reasonable expenses incurred by the Company in connection with such Refinancing); or

(2) create Indebtedness with: (a) a Weighted Average Life to Maturity that is less than the Weighted Average Life to Maturity of the Indebtedness being Refinanced; or (b) a final maturity earlier than the final maturity of the Indebtedness being Refinanced; provided that (x) if such Indebtedness being Refinanced is Indebtedness solely of the Company (and is not otherwise guaranteed by a Restricted Subsidiary of the Company), then such Refinancing Indebtedness shall be Indebtedness solely of the Company and (y) if such Indebtedness being Refinanced is subordinate or junior to the Notes or any Guarantee, then such Refinancing Indebtedness shall be subordinate to the Notes or such Guarantee, as the case may be, at least to the same extent and in the same manner as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include (A) Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or (B) Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.

“Registration Rights Agreement” means the Registration Rights Agreement dated the Issue Date, 2013, among the Company, Wells Fargo Securities, LLC and the guarantors from time to time party thereto.

“Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the time of determination is not an Unrestricted Subsidiary.

“Sale/Leaseback Transaction” means an arrangement relating to property owned by the Company or a Restricted Subsidiary on the Issue Date or thereafter acquired by the Company or a Restricted Subsidiary whereby the Company or a Restricted Subsidiary transfers such property to a Person and the Company or a Restricted Subsidiary leases it from such Person.

“Secured Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries secured by a Lien.

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute or statutes thereto.

“Security Documents” means the security agreements, pledge agreements, mortgages, collateral assignments, deeds of trust, deeds to secure debt and related agreements, as amended, supplemented, restated, renewed, refunded, replaced, restructured, repaid, refinanced or otherwise modified from time to time, creating the security interests in the Collateral in favor of the Notes Collateral Agent for the benefit of the Noteholder Secured Parties as contemplated by the Indenture.

 

71

---

Table of Contents

“Series B Preferred Stock” means the Company’s 12% cumulative convertible preferred stock, $100 par value and a liquidation preference of $100 per share on 20,000 shares issued and outstanding on the Issue Date, convertible, in whole or in part, into shares of the Company’s Common Stock.

“Series D Preferred Stock” means the Company’s 6% cumulative convertible preferred stock, no par value and a liquidation preference of $1.00 per share on 1,000,000 shares issued and outstanding on the Issue Date, convertible, in whole or in part, into shares of the Company’s Common Stock.

“Significant Subsidiary”, with respect to any Person, means any Restricted Subsidiary of such Person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1-02(w) of Regulation S-X under the Exchange Act.

“Subordinated Indebtedness” means Indebtedness of the Company or any Guarantor that is subordinated or junior in right of payment to the Notes or the Guarantee of such Guarantor, as the case may be.

“Subsidiary”, with respect to any Person, means:

(1) any corporation of which the outstanding Capital Stock having at least a majority of the votes entitled to be cast in the election of directors under ordinary circumstances shall at the time be owned, directly or indirectly, by such Person; or

(2) any other Person of which at least a majority of the voting interest under ordinary circumstances is at the time, directly or indirectly, owned by such Person.

“Total Assets” means, as of any date of determination, the total assets of the Company and its Restricted Subsidiaries as shown on the most recently prepared consolidated balance sheet of the Company as of the end of the most recent fiscal quarter for which such balance sheet is available, prepared on a consolidated basis in accordance with GAAP, with such pro forma adjustments for transactions consummated on or prior to or simultaneously with the date of the calculation as are consistent with the pro forma adjustment provisions set forth in the definition of Consolidated Fixed Charge Coverage Ratio.

“U.S. Dollar Equivalent” means with respect to any monetary amount in a currency other than U.S. dollars, at any time for determination thereof, the amount of U.S. dollars obtained by converting such foreign currency involved in such computation into U.S. dollars at the spot rate for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall Street Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date two business days prior to such determination.

Except as described under “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”, whenever it is necessary to determine whether the Company has complied with any covenant in the Indenture or that a Default or Event of Default has occurred and an amount is expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar Equivalent determined as of the date such amount is initially determined in such currency.

“Uniform Commercial Code” means the Uniform Commercial Code as from time to time in effect in the State of New York.

“Unrestricted Subsidiary” of any Person means:

(1) any Subsidiary of such Person that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by the Board of Directors of such Person in the manner provided below; and

(2) any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors may designate any Subsidiary (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Company or any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated; provided that:

(1) the Company certifies to the Trustee that such designation complies with the “Limitation on Restricted Payments” covenant; and

(2) each Subsidiary to be so designated and each of its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of the Company or any of its Restricted Subsidiaries.

For purposes of making the determination of whether any such designation of a Subsidiary as an Unrestricted Subsidiary complies with the “Limitation on Restricted Payments” covenant, the portion of the fair market value of the net assets of such Subsidiary of the Company at the time that such Subsidiary is designated as an Unrestricted Subsidiary that is represented by the interest of the Company and its Restricted Subsidiaries in such Subsidiary, in each case as determined in good faith by the Board of Directors of the Company, shall be deemed to be an Investment. Such designation will be permitted only if such Investment would be permitted at such time under the “Limitation on Restricted Payments” covenant.

The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if:

 

72

---

Table of Contents

(1) immediately after giving effect to such designation, the Company is able to incur at least $1.00 of additional Indebtedness (other than Indebtedness permitted to be incurred under the second paragraph under “— Certain Covenants — Limitation on Incurrence of Additional Indebtedness”) in compliance with the “Limitation on Incurrence of Additional Indebtedness” covenant; and

(2) immediately before and immediately after giving effect to such designation, no Default or Event of Default shall have occurred and be continuing.

Any such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the Board Resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the foregoing provisions.

“Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the sum of the total of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) which will elapse between such date and the making of such payment by (b) the then outstanding aggregate principal amount of such Indebtedness.

“Wholly Owned Subsidiary” means a Restricted Subsidiary all the Capital Stock of which (other than directors’ qualifying shares) is owned by the Company or one or more other Wholly Owned Subsidiaries.

“Zena Agreements” means that certain Promissory Note dated February 1, 2013 in the principal face amount of $35.0 million, executed by Zena Energy L.L.C. (“Zena”), as borrower, in favor of International Bank of Commerce (“IBC”), and that certain Leasehold Mortgage, Security Agreement, Assignment and Fixture Filing, dated February 1, 2013, from Zena to IBC, in each case entered into in connection with the acquisition or development of working interests in certain natural gas properties, together with the related documents thereto, in each case as such agreements may be amended (including any amendment and restatement thereof), supplemented or otherwise modified from time to time, including one or more promissory notes, credit agreements, loan agreements, indentures or similar agreements extending the maturity of, refinancing, replacing, renewing or otherwise restructuring all or any portion of the Indebtedness under such agreement or agreements or any successor or replacement agreement or agreements and whether by the same or any other lender or group of lenders.

THE EXCHANGE OFFER

Purpose of the Exchange Offer

In connection with the issuance and sale of the old notes on August 7, 2013, we entered into the Registration Rights Agreement with the initial purchasers for the benefit of the holders of the old notes. Under the Registration Rights Agreement, we agreed, among other things, to use our reasonable best efforts to file and to have declared effective an exchange offer registration statement under the Securities Act and to consummate an exchange offer on or before August 7, 2014. We are conducting this exchange offer to satisfy these obligations under the registration rights agreement.

We are making the exchange offer in reliance on the position of the SEC as set forth in certain no-action letters. However, we have not sought our own no-action letter. Based upon these interpretations by the SEC, we believe that a holder who exchanges old notes for Notes in the exchange offer, generally may offer the Notes for resale, sell the Notes and otherwise transfer the Notes without further registration under the Securities Act and without delivery of a prospectus that satisfies the requirements of Section 10 of the Securities Act. This does not apply, however, to a holder who is our “affiliate” within the meaning of Rule 405 of the Securities Act. We also believe that a holder may offer, sell or transfer the Notes only if the holder acknowledges that the holder is acquiring the Notes in the ordinary course of its business and is not participating, does not intend to participate and has no arrangement or understanding with any person to participate in a distribution of the Notes.

Any holder of the old notes using the exchange offer to participate in a distribution of Notes also cannot rely on the no-action letters referred to above. Any broker-dealer who holds old notes acquired for its own account as a result of market-making activities or other trading activities and who receives Notes in exchange for such old notes pursuant to the exchange offer may be a statutory underwriter, must deliver a prospectus meeting the requirements of the Securities Act in connection with any resales of Notes and must acknowledge such delivery requirement. See “Plan of Distribution.”

Except as described above, this prospectus may not be used for an offer to resell, resale or other transfer of Notes.

The exchange offer is not being made to, nor will we accept tenders for exchange from, holders of old notes in any jurisdiction in which the exchange offer or the acceptance of tenders would not be in compliance with the securities or blue sky laws of such jurisdiction.

Terms of the Exchange Offer

Upon the terms and subject to the conditions of the exchange offer, we will accept any and all old notes validly tendered prior to 5:00 p.m., New York time, on the Expiration Date (as defined below) for the exchange offer. Promptly after the Expiration Date (unless extended as described in this prospectus), we will issue an aggregate principal amount of up to $425 million of Notes and guarantees thereof for a like aggregate principal amount of old notes and guarantees thereof tendered and accepted in connection with the exchange offer. The Notes issued in connection with the exchange offer will be delivered promptly after the Expiration Date. Holders may tender some or all of their old notes in connection with the exchange offer, but only in an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof. The terms of the Notes will be identical to the terms of the old notes, except that the Notes:

 

73

---

Table of Contents

•

will have been registered under the Securities Act;

 

•

will not be subject to restrictions on transfer under the Securities Act; and

 

•

will not be entitled to the registration rights that apply to the old notes.

The Notes will evidence the same debt as the old notes exchanged for the Notes and will be entitled to the benefits of the same indenture pursuant to which the old notes were issued, which is governed by New York law, including any guarantees thereof. For a complete description of the terms of the Notes and the guarantees thereof, see “Description of Notes.” We will not receive any cash proceeds from the exchange offer.

As of the date of this prospectus, $425.0 million aggregate principal amount of old notes is outstanding. Only registered holders of the old notes, or their legal representatives and attorneys-in-fact, as reflected in the records of the trustee under the indenture, may participate in this offer. We will not set a fixed record date for determining registered holders of the old notes entitled to participate in this offer. This prospectus, together with the letter of transmittal, is being sent to all registered holders of old notes and to others believed to have beneficial interests in the old notes.

In connection with the issuance of the old notes, we arranged for the old notes purchased by qualified institutional buyers and those sold in reliance on Regulation S under the Securities Act to be issued and transferable in book-entry form through the facilities of DTC, acting as depositary. Except as described under “Book-Entry, Delivery and Form”, Notes will be issued in the form of a global note registered in the name of DTC or its nominee and each beneficial owner’s interest in it will be transferable in book-entry form through DTC. See “Book-Entry, Delivery and Form”.

Holders of old notes do not have any appraisal or dissenters’ rights in connection with the exchange offer. If you do not tender your old notes or if you tender old notes that are not accepted for exchange, your old notes will remain outstanding and continue to accrue interest but will not retain any rights under the Registration Rights Agreement. Existing transfer restrictions would continue to apply to old notes that remain outstanding. See “—Consequences of Failure to Properly Tender Old Notes in the Exchange Offer” and “Risk Factors—Risk Factors Relating to the Exchange Offer” for more information regarding old notes outstanding after this offer.

We shall be considered to have accepted validly tendered old notes if and when we have given oral (to be followed by prompt written notice) or written notice to the Exchange Agent (as defined below). The Exchange Agent will act as agent for the tendering holders for the purposes of receiving the Notes from us.

If any tendered old notes are not accepted for exchange because of an invalid tender, the occurrence of certain other events described in this prospectus or otherwise, we will return the old notes, without expense, to the tendering holder promptly after the Expiration Date for the exchange offer.

Holders who tender old notes will not be required to pay brokerage commissions or fees or, subject to the instructions in the letter of transmittal, transfer taxes on exchange of old notes in connection with the exchange offer. We will pay all charges and expenses, other than certain applicable taxes described below, in connection with the exchange offer. See “—Fees and Expenses”.

Expiration Date; Extensions; Amendments

Upon the terms and subject to the conditions described in this prospectus and in the accompanying letter of transmittal, we will accept for exchange any and all old notes validly tendered on or before the Expiration Date and not withdrawn as permitted below. As used in this section of the prospectus entitled, “The Exchange Offer,” the term “Expiration Date” means 5:00 p.m., New York City time, on [—], 2014. If, however, we, in our sole discretion, extend the period of time for which this offer is open, the term “Expiration Date” means the latest time and date to which this offer is so extended. Old notes tendered in this offer must be in denominations of an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof.

We reserve the right, in our sole discretion:

 

•

to delay accepting any old notes, to extend the exchange offer or to terminate the exchange offer if, in our reasonable judgment, any of the conditions described below shall not have been satisfied, by giving oral (to be followed by prompt written notice) or written notice of the delay, extension or termination to the Exchange Agent; or

 

•

to amend the terms of the exchange offer in any manner.

If we amend the exchange offer in a manner that we consider material, we will disclose such amendment by means of a prospectus supplement, and we will extend the exchange offer for a period of five to ten business days.

If we determine to extend, amend or terminate the exchange offer, we will publicly announce this determination by making a timely release through an appropriate news agency.

If we delay accepting any old notes or terminate the exchange offer, we promptly will pay the consideration offered, or return any old notes deposited, pursuant to the exchange offer as required by Rule 14e-1(c).

 

74

---

Table of Contents

Interest on the Notes

Interest on the Notes will accrue at a rate of 7.75% per year from the most recent date to which interest on the old notes has been paid on the old notes. Interest on the old notes accepted for exchange will cease to accrue upon the issuance of the Notes. Interest on the Notes will be payable semiannually in cash in arrears on February 1 and August 1, commencing [—].

Conditions to the Exchange Offer

Notwithstanding any other provision of the exchange offer, or any extension of the exchange offer, we will not be required to accept for exchange, or to exchange any Notes for, any old notes and we may terminate the exchange offer or, at our option, modify, extend or otherwise amend the exchange offer as provided in this prospectus before the acceptance of the old notes, if prior to the Expiration Date:

 

•

any action or event shall have occurred or been threatened, any action shall have been taken, or any statute, rule, regulation, judgment, order, stay, decree or injunction shall have been issued, promulgated, enacted, entered, enforced or deemed to be applicable to the exchange offer or the exchange of old notes for Notes under the exchange offer by or before any court or governmental regulatory or administrative agency, authority, instrumentality or tribunal, including, without limitation, taxing authorities, that either:

 

(a)

challenges the making of the exchange offer or the exchange of old notes for Notes under the exchange offer or might, directly or indirectly, be expected to prohibit, prevent, restrict or delay consummation of, or might otherwise adversely affect in any material manner, the exchange offer or the exchange of old notes for Notes under the exchange offer; or

 

(b)

in our reasonable judgment, could materially adversely affect our (or our subsidiaries’) business, condition (financial or otherwise), income, operations, properties, assets, liabilities or prospects or materially impair the contemplated benefits to us of the exchange offer or the exchange of old notes for Notes under the exchange offer;

 

•

anything has occurred or may occur that would or might, in our reasonable judgment, be expected to prohibit, prevent, restrict or delay the exchange offer or impair our ability to realize the anticipated benefits of the exchange offer;

 

•

there shall have occurred (a) any general suspension of or limitation on trading in securities in the United States securities or financial markets, whether or not mandatory, (b) any material adverse change in the prices of the old notes that are the subject of the exchange offer, (c) a material impairment in the general trading market for debt securities, (d) a declaration of a banking moratorium or any suspension of payments in respect of banks by federal or state authorities in the United States, whether or not mandatory, (e) a commencement of a war, armed hostilities, a terrorist act or other national or international calamity directly or indirectly relating to the United States, (f) any limitation, whether or not mandatory, by any governmental authority on, or other event having a reasonable likelihood of affecting, the extension of credit by banks or other lending institutions in the United States, (g) any catastrophic event caused by meteorological, geothermal or geophysical occurrences or other acts of God that would reasonably be expected to have a material adverse effect on us or our affiliates’ or subsidiaries’ business, operations, condition or prospects, (h) any material adverse change in the securities or financial markets in the United States generally (i) in the case of any of the foregoing existing at the time of the commencement of the exchange offer, a material acceleration or worsening thereof or (j) any other change or development, including a prospective change or development, in general economic, financial, monetary or market conditions that, in the our reasonable judgment, has or may have a material adverse effect on the market price or trading of the Notes or upon the value of the Notes; and

 

•

the trustee with respect to the indenture for the old notes that are the subject of the exchange offer and the Notes to be issued in the exchange offer shall have been directed by any holders of old notes to object in any respect to, or take any action that could, in our reasonable judgment, adversely affect the consummation of the exchange offer or the exchange of old notes for Notes under the exchange offer, or the trustee shall have taken any action that challenges the validity or effectiveness of the procedures used by us in making the exchange offer or the exchange of old notes for Notes under the exchange offer.

The foregoing conditions are for our sole benefit and may be waived by us, in whole or in part, in our absolute discretion. Any determination made by us concerning an event, development or circumstance described or referred to above will be conclusive and binding.

If any of the foregoing conditions are not satisfied, we may, at any time on or prior to the Expiration Date:

 

•

terminate the exchange offer and promptly return all tendered old notes to the respective tendering holders;

 

•

modify, extend or otherwise amend the exchange offer and retain all tendered old notes until the Expiration Date, as extended, subject, however, to the withdrawal rights of holders; or

 

•

waive the unsatisfied conditions with respect to the exchange offer and accept all old notes tendered and not previously validly withdrawn.

In addition, subject to applicable law, we may in our absolute discretion terminate the exchange offer for any other reason.

 

75

---

Table of Contents

Effect of Tender

Any tender by a holder, and our subsequent acceptance of that tender, of old notes will constitute a binding agreement between that holder and us upon the terms and subject to the conditions of the exchange offer described in this prospectus and in the letter of transmittal. The participation in the exchange offer by a tendering holder of old notes will constitute the agreement by that holder to deliver good and marketable title to the tendered old notes, free and clear of any and all liens, restrictions, charges, pledges, security interests, encumbrances or rights of any kind of third parties.

Absence of Appraisal or Dissenters’ Rights

Holders of the old notes do not have any appraisal or dissenters’ rights in connection with the exchange offer.

Procedures For Tendering

If you wish to participate in the exchange offer and your old notes are held by a custodial entity such as a bank, broker, dealer, trust company or other nominee, you must instruct that custodial entity to tender your old notes on your behalf pursuant to the procedures of that custodial entity. Please ensure you contact your custodial entity as soon as possible to give them sufficient time to meet your requested deadline.

To participate in the exchange offer, you must either:

 

•

complete, sign and date a letter of transmittal, or a facsimile thereof, in accordance with the instructions in the letter of transmittal, including guaranteeing the signatures to the letter of transmittal, if required, and mail or otherwise deliver the letter of transmittal or a facsimile thereof, together with the certificates representing your old notes specified in the letter of transmittal, to the Exchange Agent at the address listed in the letter of transmittal, for receipt on or prior to the Expiration Date; or

 

•

comply with the Automated Tender Offer Program (“ATOP”) procedures for book-entry transfer described below on or prior to the Expiration Date.

The Exchange Agent and DTC have confirmed that the exchange offer is eligible for ATOP with respect to book-entry notes held through DTC. The letter of transmittal, or a facsimile thereof, with any required signature guarantees, or, in the case of book-entry transfer, an agent’s message in lieu of the letter of transmittal, and any other required documents, must be transmitted to and received by the Exchange Agent on or prior to the Expiration Date at its address set forth below under the caption “Exchange Agent”. Old notes will not be deemed to have been tendered until the letter of transmittal and signature guarantees, if any, or agent’s message, is received by the Exchange Agent. We have not provided guaranteed delivery procedures in conjunction with the exchange offer or under this prospectus.

The method of delivery of old notes, the letter of transmittal and all other required documents to the Exchange Agent is at the election and risk of the holders. Instead of delivery by mail, we recommend that holders use an overnight or hand delivery service, properly insured. In all cases, sufficient time should be allowed to assure delivery to and receipt by the Exchange Agent on or prior to the Expiration Date. Do not send the letter of transmittal or any old notes to anyone other than the Exchange Agent.

If you are tendering your old notes in exchange for Notes and anticipate delivering your letter of transmittal and other documents other than through DTC, we urge you to contact promptly a bank, broker or other intermediary that has the capability to hold notes custodially through DTC to arrange for receipt of any old notes to be delivered pursuant to the exchange offer and to obtain the information necessary to provide the required DTC participant with account information in the letter of transmittal.

If you are a beneficial owner which holds old notes through Euroclear (as defined below) or Clearstream (as defined below) and wish to tender your old notes, you must instruct Euroclear or Clearstream, as the case may be, to block the account in respect of the tendered old notes in accordance with the procedures established by Euroclear or Clearstream. You are encouraged to contact Euroclear and Clearstream directly to ascertain their procedure for tendering old notes.

Book-Entry Delivery Procedures for Tendering Old Notes Held with DTC

If you wish to tender old notes held on your behalf by a nominee with DTC, you must:

 

•

inform your nominee of your interest in tendering your old notes pursuant to the exchange offer; and

 

•

instruct your nominee to tender all old notes you wish to be tendered in the exchange offer into the Exchange Agent’s account at DTC on or prior to the Expiration Date.

Any financial institution that is a nominee in DTC, including Euroclear and Clearstream, must tender old notes by effecting a book-entry transfer of old notes to be tendered in the exchange offer into the account of the Exchange Agent at DTC by electronically transmitting its acceptance of the exchange offer through the ATOP procedures for transfer. DTC will then verify the acceptance, execute a book-entry delivery to the Exchange Agent’s account at DTC and send an agent’s message to the Exchange Agent. An “agent’s message” is a message, transmitted by DTC to, and received by, the Exchange Agent and forming part of a book-entry confirmation, which states that DTC has received an express acknowledgement from an organization that participates in DTC (a “participant”), tendering old notes that the participant has received and agrees to be bound by the terms of the letter of transmittal and that we may enforce the agreement against the participant. A letter of transmittal need not accompany tenders effected through ATOP.

 

76

---

Table of Contents

Proper Execution and Delivery of the Letter of Transmittal

Signatures on a letter of transmittal or notice of withdrawal described under “—Withdrawal of Tenders”, as the case may be, must be guaranteed by an eligible guarantor institution unless the old notes tendered pursuant to the letter of transmittal are tendered for the account of an eligible guarantor institution. An “eligible guarantor institution” is one of the following firms or other entities identified in Rule 17Ad-15 under the Exchange Act (as the terms are used in Rule 17Ad-15):

 

•

a bank;

 

•

a broker, dealer, municipal securities dealer, municipal securities broker, government securities dealer or government securities broker;

 

•

a credit union;

 

•

a national securities exchange, registered securities association or clearing agency; or

 

•

a savings institution that is a participant in a Securities Transfer Association recognized program.

If signatures on a letter of transmittal or notice of withdrawal are required to be guaranteed, that guarantee must be made by an eligible institution.

If the letter of transmittal is signed by the holders of old notes tendered thereby, the signatures must correspond with the names as written on the face of the old notes without any change whatsoever. If any of the old notes tendered thereby are held by two or more holders, each holder must sign the letter of transmittal. If any of the old notes tendered thereby are registered in different names on different old notes, it will be necessary to complete, sign and submit as many separate letters of transmittal, and any accompanying documents, as there are different registrations of certificates.

If old notes that are not tendered for exchange pursuant to the exchange offer are to be returned to a person other than the tendering holder, certificates for those old notes must be endorsed or accompanied by an appropriate instrument of transfer, signed exactly as the name of the registered owner appears on the certificates, with the signatures on the certificates or instruments of transfer guaranteed by an eligible guarantor institution.

If the letter of transmittal is signed by a person other than the holder of any old notes listed in the letter of transmittal, those old notes must be properly endorsed or accompanied by a properly completed bond power, signed by the holder exactly as the holder’s name appears on those old notes. If the letter of transmittal or any old notes, bond powers or other instruments of transfer are signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, those persons should so indicate when signing, and, unless waived by us, evidence satisfactory to us of their authority to so act must be submitted with the letter of transmittal.

No alternative, conditional, irregular or contingent tenders will be accepted. By executing the letter of transmittal, or facsimile thereof, the tendering holders of old notes waive any right to receive any notice of the acceptance for exchange of their old notes. Tendering holders should indicate in the applicable box in the letter of transmittal the name and address to which payments and/or substitute certificates evidencing old notes for amounts not tendered or not exchanged are to be issued or sent, if different from the name and address of the person signing the letter of transmittal. If those instructions are not given, old notes not tendered or exchanged will be returned to the tendering holder.

All questions as to the validity, form, eligibility, including time of receipt, and acceptance and withdrawal of tendered old notes will be determined by us in our absolute discretion, which determination will be final and binding. We reserve the absolute right to reject any and all tendered old notes determined by us not to be in proper form or not to be tendered properly or any tendered old notes our acceptance of which would, in the opinion of our counsel, be unlawful. We also reserve the right to waive, in our absolute discretion, any defects, irregularities or conditions of tender as to particular old notes, whether or not waived in the case of other old notes. Our interpretation of the terms and conditions of the exchange offer, including the terms and instructions in the letter of transmittal, will be final and binding on all parties. Unless waived, any defects or irregularities in connection with tenders of old notes must be cured within the time we determine. Although we intend to notify holders of defects or irregularities with respect to tenders of old notes, neither we, the Exchange Agent nor any other person will be under any duty to give that notification or shall incur any liability for failure to give that notification. Tenders of old notes will not be deemed to have been made until any defects or irregularities therein have been cured or waived.

Any holder whose old notes have been mutilated, lost, stolen or destroyed will be responsible for obtaining replacement securities or for arranging for indemnification with the trustee of the old notes. Holders may contact the Exchange Agent for assistance with these matters.

In addition, we reserve the right, as set forth above under the caption “—Conditions to the Exchange Offer,” to terminate the exchange offer. By tendering, each holder represents and acknowledges to us, among other things, that:

 

•

it has full power and authority to tender, sell, assign and transfer the old notes it is tendering and that we will acquire good and unencumbered title thereto, free and clear of all liens, restrictions, charges and encumbrances and not subject to any adverse claim when the same are accepted by us;

 

•

the Notes acquired in connection with the exchange offer are being obtained in the ordinary course of business of the person receiving the Notes;

 

77

---

Table of Contents

•

at the time of commencement and consummation of the exchange offer it has no arrangement or understanding with any person to participate in a distribution (within the meaning of the Securities Act) of such Notes in violation of the provisions of the Securities Act;

 

•

it is not an “affiliate” (as defined in Rule 405 under the Securities Act) of LSB Industries, Inc.;

 

•

if the holder is not a broker-dealer, it is not engaged in, and does not intend to engage in, the distribution of the Notes; and

 

•

if the holder is a broker-dealer, that it will receive Notes for its own account in exchange for old notes that were acquired by such broker-dealer as a result of market-making activities or other trading activities and that it will be required to acknowledge that it will deliver a prospectus in connection with any resale of such Notes. See “Plan of Distribution”.

Withdrawal of Tenders

Tenders of old notes in the exchange offer may be validly withdrawn at any time prior to the Expiration Date.

For a withdrawal of a tender to be effective, a written or facsimile transmission notice of withdrawal must be received by the Exchange Agent prior to the Expiration Date at its address set forth below under the caption “Exchange Agent”. The withdrawal notice must:

 

(1)

specify the name of the tendering holder of old notes;

 

(2)

bear a description, including the series, of the old notes to be withdrawn;

 

(3)

specify, in the case of old notes tendered by delivery of certificates for those old notes, the certificate numbers shown on the particular certificates evidencing those old notes;

 

(4)

specify the aggregate principal amount represented by those old notes;

 

(5)

specify, in the case of old notes tendered by delivery of certificates for those old notes, the name of the registered holder, if different from that of the tendering holder, or specify, in the case of old notes tendered by book-entry transfer, the name and number of the account at DTC to be credited with the withdrawn old notes; and

 

(6)

be signed by the holder of those old notes in the same manner as the original signature on the letter of transmittal, including any required signature guarantees, or be accompanied by evidence satisfactory to us that the person withdrawing the tender has succeeded to the beneficial ownership of those old notes.

The signature on any notice of withdrawal must be guaranteed by an eligible guarantor institution, unless the old notes have been tendered for the account of an eligible guarantor institution.

Withdrawal of tenders of old notes may not be rescinded, and any old notes validly withdrawn will thereafter be deemed not to have been validly tendered for purposes of the exchange offer. Validly withdrawn old notes may, however, be re-tendered by again following one of the procedures described in “—Procedures for Tendering” on or prior to the Expiration Date.

Exchange Agent

We have appointed UMB Bank, n.a. as exchange agent in connection with this offer (the “Exchange Agent”). In such capacity, the Exchange Agent has no fiduciary duties to the holders of the Notes and will be acting solely on the basis of our directions. Holders should direct questions, requests for assistance and for additional copies of this prospectus or the letter of transmittal to the Exchange Agent addressed as follows:

UMB BANK, n.a.

Attn: Janet Lambert

204 N. Robinson Suite 200

Oklahoma City, Oklahoma 73102

Fees and Expenses

We will not make any payment to brokers, dealers or others soliciting acceptances of the exchange offer. We will pay certain other expenses to be incurred in connection with the exchange offer, including the fees and expenses of the Exchange Agent and certain accountant and legal fees.

Holders who tender their old notes for exchange will not be obligated to pay transfer taxes. If, however:

 

•

Notes are to be delivered to, or issued in the name of, any person other than the registered holder of the old notes tendered;

 

•

tendered old notes are registered in the name of any person other than the person signing the letter of transmittal; or

 

•

a transfer tax is imposed for any reason other than the exchange of old notes in connection with the exchange offer; then the amount of any such transfer taxes (whether imposed on the registered holder or any other persons) will be payable by the tendering holder. If satisfactory evidence of payment of such taxes or exemption from them is not submitted with the letter of transmittal, the amount of such transfer taxes will be billed directly to the tendering holder.

 

78

---

Table of Contents

Accounting Treatment

The Notes will be recorded at the same carrying value as the old notes as reflected in our accounting records on the date of the exchange. Accordingly, we will not recognize any gain or loss for accounting purposes upon the completion of this offer. The expenses of this offer that we pay will increase our deferred financing costs in accordance with generally accepted accounting principles.

Consequences of Failure to Properly Tender Old Notes in the Exchange Offer

Issuance of the Notes in exchange for the old notes under this offer will be made only after timely receipt by the Exchange Agent of a properly completed and duly executed letter of transmittal (or an agent’s message from DTC) and the certificate(s) representing such old notes (or confirmation of book-entry transfer), and all other required documents. Therefore, holders of the old notes desiring to tender such old notes in exchange for Notes should allow sufficient time to ensure timely delivery. We are under no duty to give notification of defects or irregularities of tenders of old notes for exchange or waive any such defects or irregularities. Old notes that are not tendered or that are tendered but not accepted by us will, following completion of this offer, continue to be subject to the existing restrictions upon transfer thereof under the Securities Act, and, upon completion of this offer, certain registration rights under the registration rights agreements will terminate.

In the event this offer is completed, we generally will not be required to register the remaining old notes, subject to limited exceptions. Remaining old notes will continue to be subject to the following restrictions on transfer:

 

•

the remaining old notes may be resold only if registered pursuant to the Securities Act, if any exemption from registration is available, or if such registration is not required by law; and

 

•

the remaining old notes will bear a legend restricting transfer in the absence of registration or an exemption. We do not currently anticipate that we will register the remaining old notes under the Securities Act. To the extent that old notes are tendered and accepted in connection with this offer, any trading market for remaining old notes could be adversely affected. See “Risk Factors—Risk Factors Relating to the Exchange Offer.”

Neither we nor our board of directors make any recommendation to holders of old notes as to whether to tender or refrain from tendering all or any portion of their old notes pursuant to this offer. Moreover, no one has been authorized to make any such recommendation. Holders of old notes must make their own decision whether to tender pursuant to this offer and, if so, the aggregate amount of old notes to tender, after reading this prospectus and the letter of transmittal and consulting with their advisors, if any, based on their own financial position and requirements.

BOOK-ENTRY, DELIVERY AND FORM

The Global Notes

Initially, the Notes will be represented by one or more registered notes in global form, without interest coupons (collectively, the “Global Notes”). The Global Notes will be deposited on the issue date with, or on behalf of, DTC and registered in the name of Cede & Co., as nominee of DTC, or will remain with the trustee as custodian for DTC.

Except as set forth below, the Global Notes may be transferred, in whole and not in part, solely to another nominee of DTC or to a successor of DTC or its nominee. Beneficial interests in the Global Notes may not be exchanged for notes in physical, certificated form (“Certificated Notes”) except in the limited circumstances described below.

All interests in the Global Notes, including those held through Euroclear Bank S.A., as operator of the Euroclear System (“Euroclear”) or Clearstream Banking, S.A. (“Clearstream”), may be subject to the procedures and requirements of DTC. Those interests held through Euroclear or Clearstream may also be subject to the procedures and requirements of such systems.

Certain Book-Entry Procedures for the Global Notes

The descriptions of the operations and procedures of DTC, Euroclear and Clearstream set forth below are provided solely as a matter of convenience. These operations and procedures are solely within the control of the respective settlement systems and are subject to change by them from time to time. We do not take any responsibility for these operations or procedures, and investors are urged to contact the relevant system or its participants directly to discuss these matters.

DTC has advised us that it is:

 

•

a limited purpose trust company organized under the laws of the State of New York;

 

•

a “banking organization” within the meaning of the New York Banking Law;

 

•

a member of the Federal Reserve System;

 

•

a “clearing corporation” within the meaning of the Uniform Commercial Code, as amended; and

 

•

a “clearing agency” registered pursuant to Section 17A of the Exchange Act.

DTC was created to hold securities for its participants (collectively, the “Participants”) and facilitates the clearance and settlement of securities transactions between Participants through electronic book-entry changes to the accounts of its Participants, thereby eliminating the need for physical transfer and delivery of certificates. DTC’s Participants include securities brokers and

 

79

---

Table of Contents

dealers, banks and trust companies, clearing corporations and certain other organizations. Indirect access to DTC’s system is also available to other entities such as banks, brokers, dealers and trust companies (collectively, the “Indirect Participants”) that clear through or maintain a custodial relationship with a Participant, either directly or indirectly. Investors who are not Participants may beneficially own securities held by or on behalf of DTC only through Participants or Indirect Participants.

We expect that pursuant to procedures established by DTC (1) upon deposit of each Global Note, DTC will credit the accounts of Participants with an interest in the Global Note and (2) ownership of the Notes will be shown on, and the transfer of ownership thereof will be effected only through, records maintained by DTC (with respect to the interests of Participants) and the records of Participants and the Indirect Participants (with respect to the interests of persons other than Participants).

The laws of some jurisdictions may require that certain purchasers of securities take physical delivery of such securities in definitive form. Accordingly, the ability to transfer interests in the Notes represented by a Global Note to such persons may be limited. In addition, because DTC can act only on behalf of its Participants, who in turn act on behalf of persons who hold interests through Participants, the ability of a person having an interest in Notes represented by a Global Note to pledge or transfer such interest to persons or entities that do not participate in DTC’s system, or to otherwise take actions in respect of such interest, may be affected by the lack of a physical definitive security in respect of such interest.

So long as DTC or its nominee is the registered owner of a Global Note, DTC or such nominee, as the case may be, will be considered the sole owner or holder of the Notes represented by the Global Notes for all purposes under the indenture. Except as provided below, owners of beneficial interests in a Global Note will not be entitled to have Notes represented by such Global Note registered in their names, will not receive or be entitled to receive physical delivery of Certificated Notes, and will not be considered the owners or holders thereof under the indenture for any purpose, including with respect to the giving of any direction, instruction or approval to the respective trustees thereunder. Accordingly, each holder owning a beneficial interest in a Global Note must rely on the procedures of DTC and, if such holder is not a Participant or an Indirect Participant, on the procedures of the Participant through which such holder owns its interest, to exercise any rights of a holder of Notes under the indenture or such Global Note. We understand that under existing industry practice, in the event that we request any action of holders of Notes, or a holder that is an owner of a beneficial interest in a Global Note desires to take any action that DTC, as the holder of such Global Note, is entitled to take, DTC would authorize the Participants to take such action and the Participants would authorize holders owning through such Participants to take such action or would otherwise act upon the instruction of such holders. Neither we nor the trustee will have any responsibility or liability for any aspect of the records relating to or payments made on account of Notes by DTC, or for maintaining, supervising or reviewing any records of DTC relating to such Notes.

Payments with respect to the principal of, and premium, if any, and interest on, any Notes represented by a Global Note registered in the name of DTC or its nominee on the applicable record date will be payable by the trustee to or at the direction of DTC or its nominee in its capacity as the registered holder of the Global Note representing such Notes under the indenture. Under the terms of the indenture, we and the trustee may treat the persons in whose names the Notes, including the Global Notes, are registered as the owners thereof for the purpose of receiving payment thereon and for any and all other purposes whatsoever. Accordingly, neither we nor the trustee has or will have any responsibility or liability for the payment of such amounts to owners of beneficial interests in a Global Note (including principal, premium, if any, and interest). Payments by the Participants and the Indirect Participants to the owners of beneficial interests in a Global Note will be governed by standing instructions and customary industry practice and will be the responsibility of the Participants or the Indirect Participants and DTC.

Transfers between Participants in DTC will be effected in accordance with DTC’s procedures, and will be settled in same-day funds. Transfers between participants in Euroclear or Clearstream will be effected in the ordinary way in accordance with their respective rules and operating procedures.

Cross-market transfers between the Participants in DTC, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be effected through DTC in accordance with DTC’s rules on behalf of Euroclear or Clearstream, as the case may be, by its respective depositary; however, such cross-market transactions will require delivery of instructions to Euroclear or Clearstream, as the case may be, by the counterparts in such system in accordance with the rules and procedures and within the established deadlines (Brussels time) of such system. Euroclear or Clearstream, as the case may be, will, if the transaction meets its settlement requirements, deliver instructions to its respective depositary to take action to effect final settlement on its behalf by delivering or receiving interests in the relevant Global Notes in DTC, and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Euroclear participants and Clearstream participants may not deliver instructions directly to the depositories for Euroclear or Clearstream.

Because of time zone differences, the securities account of a Euroclear or Clearstream participant purchasing an interest in a Global Note from a Participant in DTC will be credited, and any such crediting will be reported to the relevant Euroclear or Clearstream participant, during the securities settlement processing day (which must be a business day for Euroclear and Clearstream) immediately following the settlement date of DTC. Cash received in Euroclear or Clearstream as a result of sales of interests in the Global Notes by or through a Euroclear or Clearstream participant to a Participant in DTC will be received with value on the settlement date of DTC but will be available in the relevant Euroclear or Clearstream cash account only as of the business day for Euroclear or Clearstream following DTC’s settlement date.

 

80

---

Table of Contents

Although DTC, Euroclear and Clearstream have agreed to the foregoing procedures to facilitate transfers of interests in the Global Notes among participants in DTC, Euroclear and Clearstream, they are under no obligation to perform or to continue to perform such procedures, and such procedures may be discontinued at any time. Neither we nor the trustee will have any responsibility for the performance by DTC, Euroclear or Clearstream or their respective participants or indirect participants of their respective obligations under the rules and procedures governing their operations.

Certificated Notes

A Global Note is exchangeable for Certificated Notes if:

 

(1)

DTC notifies us that it (a) is unwilling or unable to continue as depositary for the Global Notes or (b) has ceased to be a clearing agency registered under the Exchange Act and, in either case, we fail to appoint a successor depositary within 120 days after the date of such notice;

 

(2)

we, at our option, notify the trustee in writing that we elect to cause the issuance of the Certificated Notes, subject to the rules of DTC, which require the consent of each participant; or

 

(3)

there shall have occurred and be continuing a default or event of default with respect to the Notes.

In addition, beneficial interests in a Global Note may be exchanged for Certificated Notes upon prior written notice given to the trustee by or on behalf of DTC in accordance with the indenture. In all cases, Certificated Notes delivered in exchange for any Global Note or beneficial interests in Global Notes will be registered in the names, and issued in any approved denominations, requested by or on behalf of the depositary (in accordance with its customary procedures).

Neither we nor the trustee shall be liable for any delay by DTC or any Participant or Indirect Participant in identifying the beneficial owners of the related Notes and each such person may conclusively rely on, and shall be protected in relying on, instructions from DTC for all purposes (including with respect to the registration and delivery, and the respective principal amounts, of the Notes to be issued).

MATERIAL UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS

The following discussion is a summary of certain material U.S. federal income tax consequences of the exchange offer to holders of old notes, but is not a complete analysis of all potential tax effects. The summary below is based upon the Internal Revenue Code of 1986, as amended (the “Code”), regulations of the Treasury Department, administrative rulings and pronouncements of the Internal Revenue Service and judicial decisions, all of which are subject to change, possibly with retroactive effect. This summary does not address all of the U.S. federal income tax consequences that may be applicable to particular holders, including dealers in securities, financial institutions, insurance companies and tax-exempt organizations. In addition, this summary does not consider the effect of any foreign, state, local, gift, estate or other tax laws that may be applicable to a particular holder. This summary applies only to a holder that holds such old notes as a capital asset within the meaning of Section 1221 of the Code.

An exchange of old notes for Notes pursuant to the exchange offer will not be treated as a taxable exchange or other taxable event for U.S. federal income tax purposes. Accordingly, there will be no U.S. federal income tax consequences to holders who exchange their old notes for Notes in connection with the exchange offer and any such holder will have the same adjusted tax basis and holding period in the Notes as it had in the old notes immediately before the exchange.

The foregoing discussion of certain U.S. federal income tax considerations does not consider the facts and circumstances of any particular holder’s situation or status. Accordingly, each holder of old notes considering this exchange offer should consult its own tax advisor regarding the tax consequences of the exchange offer to it, including those under state, foreign and other tax laws.

PLAN OF DISTRIBUTION

Each broker-dealer that receives Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such Notes. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Notes received in exchange for old notes where such old notes were acquired as a result of market-making activities or other trading activities. LSB has agreed that it will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale for a period ending on the earlier of (a) 180 days from the date on which the registration statement on Form S-4, to which this prospectus forms a part, became effective and (b) the date on which each broker-dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities.

LSB and the subsidiary guarantors will not receive any proceeds from any sale of Notes by broker-dealers. Notes received by broker-dealers for their own account pursuant to the exchange offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Notes or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker dealer or the purchasers of any such Notes. Any broker-dealer that resells Notes that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such Notes may be deemed to be an “underwriter” within the meaning of the Securities Act and any profit on any such resale of Notes and any commission or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The letter of transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

81

---

Table of Contents

LSB will promptly send additional copies of this prospectus and any amendment or supplement to this prospectus to any broker-dealer that requests such documents in the letter of transmittal for a period ending on the earlier of (i) 180 days from the date on which the registration statement on Form S-4, to which this prospectus forms a part, became effective and (ii) the date on which each broker-dealer is no longer required to deliver a prospectus in connection with market-making or other trading activities. LSB has agreed to pay all expenses incident to the Exchange Offer other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Notes (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act.

LEGAL MATTERS

The validity of the Notes will be passed upon for us by Conner & Winters, LLP, Oklahoma City, Oklahoma.

EXPERTS

The consolidated financial statements of LSB Industries, Inc. appearing in LSB Industries, Inc.’s Annual Report (Form 10-K) for the year ended December 31, 2013 (including the schedule appearing therein), and the effectiveness of LSB Industries, Inc.’s internal control over financial reporting as of December 31, 2013, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon, included therein, and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.

 

82

---

Table of Contents

 

 

 

LSB Industries, Inc.

 

 

Offer to Exchange

All Outstanding Unregistered 7.75% Senior Secured Notes Due 2019

($425,000,000 Aggregate Principal Amount)

for

7.75% Senior Secured Notes Due 2019 ($425,000,000 Aggregate Principal Amount)

which have been registered under the Securities Act of 1933

 

 

PROSPECTUS

 

 

[•], 2014

 

 

 

---

Table of Contents

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 20. Indemnification of Directors and Officers.

The Registrant is incorporated under the laws of the State of Delaware. Section 145 of the General Corporation Law of the State of Delaware (the “DGCL”) provides that a Delaware corporation may indemnify any persons who are, or are threatened to be made, parties to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person was an officer, director, employee or agent of such corporation, or is or was serving at the request of such person as an officer, director, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided that such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his conduct was illegal. A Delaware corporation may indemnify any persons who are, or are threatened to be made, a party to any threatened, pending or completed action or suit by or in the right of the corporation by reason of the fact that such person was a director, officer, employee or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation’s best interests except that no indemnification is permitted without judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually and reasonably incurred. The Registrant’s certificate of incorporation and bylaws provide for the indemnification of directors and officers of the Registrant to the fullest extent permitted by the DGCL.

Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director, except for liability (i) for any transaction from which the director derives an improper personal benefit, (ii) for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, (iii) for improper payment of dividends or redemptions of shares, or (iv) for any breach of a director’s duty of loyalty to the company or its stockholders. The Registrant’s certificate of incorporation includes such a provision. Reasonable expenses incurred by any officer or director in defending any such action, suit or proceeding in advance of its final disposition shall be paid by the Registrant upon delivery to the Registrant of an undertaking, by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined that such director or officer is not entitled to be indemnified by the Registrant.

The indemnification discussed herein is not exclusive of any other rights the party seeking indemnification may possess. The Company carries officer and director liability insurance with respect to certain matters, including matters arising under the Securities Act of 1933, as amended (the “Securities Act”).

Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the 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 the person’s conduct was unlawful.

Section 145 further provides that a corporation may also indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) actually and reasonably incurred by the person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or the court in which such action or suit was brought determines that, despite an adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

 

II-1

---

Table of Contents

Section 145(g) of the Delaware General Corporation Law provides that a corporation shall have the power to purchase and maintain insurance on behalf of its officers, directors, employees and agents, against any liability asserted against and incurred by such persons in any such capacity. We have directors and officers liability insurance for the benefit of our directors and officers.

Item 21. Exhibits.

The attached Exhibit Index is incorporated by reference.

Item 22. Undertaking.

(a) The undersigned registrant hereby undertakes.

(1) to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;

(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for purposes of determining liability under the Securities Act of 1933 to any purchaser:

(i) each prospectus filed pursuant to Rule 424(b) as part of the registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(b) The undersigned registrant hereby undertakes that, for the purposes of determining any liability under the Securities Act of 1933, each filing of the registrant’s annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration shall be deemed to be a new registration statement relating to the securities offering therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(c) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 20, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities

 

II-2

---

Table of Contents

Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

(d) The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Items 4, 10(b), 11, or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

(e) The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

 

II-3

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, LSB Industries, Inc. has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, State of Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014				LSB INDUSTRIES, INC.
		By:		/s/ Jack E. Golsen
				Jack E. Golsen Chairman of the Board and Chief Executive Officer

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014		/s/ Jack E. Golsen
		Jack E. Golsen Chairman of the Board, Chief Executive Officer (Principal Executive Officer), and Director
Dated: April 7, 2014		/s/ Barry H. Golsen
		Barry H. Golsen, President and Director
Dated: April 7, 2014		/s/ Tony M. Shelby
		Tony M. Shelby Executive Vice President of Finance and Chief Financial Officer (Principal Financial Officer)
Dated: April 7, 2014		/s/ Harold L. Rieker Jr.
		Harold L. Rieker Jr. Vice President (Principal Accounting Officer)
Dated: April 7, 2014
		Webster L. Benham, Director
Dated: April 7, 2014		/s/ Charles A. Burtch
		Charles A. Burtch, Director
Dated: April 7, 2014		/s/ Robert A. Butkin
		Robert A. Butkin, Director
Dated: April 7, 2014
		Robert H. Henry, Director

 

II-4

---

Table of Contents

Dated: April 7, 2014		/s/ Gail P. Lapidus
		Gail P. Lapidus, Director
Dated: April 7, 2014		/s/ Donald W. Munson
		Donald W. Munson, Director
Dated: April 7, 2014
		Ronald V. Perry, Director
Dated: April 7, 2014		/s/ John A. Shelley
		John A. Shelley, Director

 

II-5

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, each of the undersigned registrants has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014				CEPOLK HOLDINGS, INC.
		By:		/s/ Tony M. Shelby
				Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014		/s/ Barry H. Golsen
		Barry H. Golsen, President (Principal Executive Officer) and Director
Dated: April 7, 2014
		/s/ Tony M. Shelby
		Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Director
Dated: April 7, 2014
		/s/ Jack E. Golsen
		Jack E. Golsen, Director
Dated: April 7, 2014
		/s/ David R. Goss
		David R. Goss, Director

 

II-6

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014				CHEMEX I CORP.
		By:		/s/ Tony M. Shelby
				Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014		/s/ Jack E. Golsen
		Jack E. Golsen, Chairman of the Board (Principal Executive Officer) and Director
Dated: April 7, 2014		/s/ Tony M. Shelby
		Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Director
Dated: April 7, 2014		/s/ David R. Goss
		David R. Goss, Director

 

II-7

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014				CHEROKEE NITROGEN L.L.C.
		By:		/s/ Tony M. Shelby
				Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014		/s/ Barry H. Golsen
		Barry H. Golsen, President (Principal Executive Officer) and Manager
Dated: April 7, 2014		/s/ Tony M. Shelby
		Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014		/s/ Jack E. Golsen
		Jack E. Golsen, Manager
Dated: April 7, 2014		/s/ David R. Goss
		David R. Goss, Manager

 

II-8

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014				CHEROKEE NITROGEN HOLDINGS, INC.
		By:		/s/ Tony M. Shelby
				Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014		/s/ Jack E. Golsen
		Jack E. Golsen, President (Principal Executive Officer) and Director
Dated: April 7, 2014		/s/ Tony M. Shelby
		Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Director
Dated: April 7, 2014		/s/ Barry H. Golsen
		Barry H. Golsen, Director
Dated: April 7, 2014		/s/ David R. Goss
		David R. Goss, Director

 

II-9

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						CONSOLIDATED INDUSTRIES L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer (Principal Executive Officer) and Manager
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, President and Manager
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Chief Financial Officer, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Manager

 

II-10

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						CHEMICAL PROPERTIES L.L.C. CHEMICAL TRANSPORT L.L.C. EDC AG PRODUCTS COMPANY L.L.C. LSB CHEMICAL L.L.C. ZENA ENERGY L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer, President (Principal Executive Officer), and Manager
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, Manager
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Manager

 

II-11

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						CLIMACOOL CORP. CLIMATE MASTER, INC. CLIMATECRAFT TECHNOLOGIES, INC. CLIMATECRAFT, INC. INTERNATIONAL ENVIRONMENTAL         CORPORATION THE CLIMATE CONTROL GROUP, INC.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Steven J. Golsen
						Steven J. Golsen, Chief Executive Officer (Principal Executive Officer) and Director
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Director
Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, Director
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, Director
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Director

 

II-12

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						EL DORADO AMMONIA L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, President (Principal Executive Officer) and Manager
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, Manager
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Manager

 

II-13

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						EL DORADO ACID, L.L.C. EL DORADO ACID II, L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer (Principal Executive Officer) and Manager
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, Manager
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Manager

 

II-14

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						EL DORADO CHEMICAL COMPANY
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014				/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer (Principal Executive Officer) and Director
Dated: April 7, 2014				/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Director
Dated: April 7, 2014				/s/ Barry H. Golsen
						Barry H. Golsen, President and Director
Dated: April 7, 2014				/s/ David R. Goss
						David R. Goss, Director
Dated: April 7, 2014				/s/ Phil Gough
						Phil Gough, Director
Dated: April 7, 2014				/s/ Paul Rydlund
						Paul Rydlund, Director

 

II-15

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						EL DORADO NITRIC L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer (Principal Executive Officer) and Manager
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Manager
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Manager

 

II-16

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						EL DORADO NITROGEN, L.P.
				By:		El Dorado Acid, L.L.C., the general partner of the registrant
						By:		/s/ Tony M. Shelby
								Tony M. Shelby, Executive Vice President and Manager of the general partner of the registrant

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer and Manager of El Dorado Acid, L.L.C., the general partner of the registrant (Principal Executive Officer)
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer, and Manager of El Dorado Acid, L.L.C., the general partner of the registrant (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Manager of El Dorado Acid, L.L.C., the general partner of the registrant
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Manager of El Dorado Acid, L.L.C., the general partner of the registrant

 

II-17

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						KOAX CORP.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, President (Principal Executive Officer) and Director
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Director
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director

 

II-18

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						LSB CAPITAL L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Manager

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, President (Principal Executive Officer) and Manager
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President, Treasurer (Principal Financial Officer and Principal Accounting Officer), and Manager
Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Manager
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Manager

 

II-19

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						LSB-EUROPA LIMITED
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, President (Principal Executive Officer) and Director
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Steven J. Golsen
						Steven J. Golsen, Director
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director

 

II-20

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						PRYOR CHEMICAL COMPANY
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer, President (Principal Executive Officer) and Director
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director

 

II-21

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						SUMMIT MACHINE TOOL MANUFACTURING L.L.C.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Chief Executive Officer (Principal Executive Officer) and Manager
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Manager
Dated: April 7, 2014						/s/ Steven J. Golsen
						Steven J. Golsen, Manager

 

II-22

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						THERMACLIME TECHNOLOGIES, INC.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Steven J. Golsen
						Steven J. Golsen, President (Principal Executive Officer) and Director
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Director
Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Director
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director

 

II-23

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						TRISON CONSTRUCTION, INC.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Brian Haggart
						Brian Haggart, Chief Executive Officer and President (Principal Executive Officer)
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Director
Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Director
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director
Dated: April 7, 2014						/s/ Steven J. Golsen
						Steven J. Golsen, Director

 

II-24

---

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the undersigned registrant has duly caused this Registration Statement on Form S-4 to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Oklahoma City, Oklahoma, on the 7 day of April, 2014.

 

Dated: April 7, 2014						XPEDIAIR, INC.
				By:		/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President

Power of Attorney

KNOWN ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Jack E. Golsen, Barry H. Golsen, and Tony M. Shelby, or any of them, as his true and lawful attorney-in-fact and agents with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments to this Registration Statement, and to any registration statement filed under Securities and Exchange Commission Rule 462(b), and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as full to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

Dated: April 7, 2014						/s/ Barry H. Golsen
						Barry H. Golsen, Chief Executive Officer (Principal Executive Officer) and Director
Dated: April 7, 2014						/s/ Tony M. Shelby
						Tony M. Shelby, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Dated: April 7, 2014						/s/ Jack E. Golsen
						Jack E. Golsen, Director
Dated: April 7, 2014						/s/ David R. Goss
						David R. Goss, Director
Dated: April 7, 2014						/s/ Steven J. Golsen
						Steven J. Golsen, Director

 

II-25

---

Table of Contents

EXHIBIT INDEX

 

Exhibit

Incorporated by Reference

Exhibit

Filed

Number

Exhibit Description

Form

File/Reg. No.

Date of Filing

Number

Herewith

3(i).1

Restated Certificate of Incorporation of the Company, as amended.

10-K

001-07677

February 28, 2013

3(i).1

—

3(ii).1

Amended and Restated Bylaws of the Company, dated August 20, 2009, as amended February 18, 2010, January 17, 2014, and February 4, 2014

10-K

001-07677

February 10, 2014

3(ii).1

—

3(i).2

Amended and Restated Certificate of Incorporation of CEPOLK Holdings, Inc., as amended

*

3(ii).2

Amended and Restated Bylaws of CEPOLK Holdings, Inc., as amended

*

3(i).3

Certificate of Incorporation of Chemex I Corp., as amended

*

3(ii).3

Amended and Restated Bylaws of Chemex I Corp., as amended

*

3(i).4

Articles of Organization of Chemical Properties L.L.C.

*

3(ii).4

Amended and Restated Operating Agreement of Chemical Properties L.L.C.

*

3(i).5

Articles of Organization of Chemical Transport L.L.C.

*

3(ii).5

Amended and Restated Operating Agreement of Chemical Transport L.L.C.

*

3(i).6

Articles of Organization of Cherokee Nitrogen L.L.C.

*

3(ii).6

Operating Agreement of Cherokee Nitrogen L.L.C.

*

3(i).7

Certificate of Incorporation of Cherokee Nitrogen Holdings, Inc., as amended

*

3(ii).7

Bylaws of Cherokee Nitrogen Holdings, Inc., as amended

*

3(i).8

Amended and Restated Certificate of Incorporation of ClimaCool Corp., as amended

*

3(ii).8

Amended and Restated Bylaws of ClimaCool Corp., as amended

*

3(i).9

Amended and Restated Certificate of Incorporation of ClimateCraft, Inc.

*

3(ii).9

Second Amended and Restated Bylaws of ClimateCraft, Inc.

*

3(i).10

Certificate of Incorporation of ClimateCraft Technologies, Inc.

*

3(ii).10

Bylaws of ClimateCraft Technologies, Inc.

*

3(i).11

Amended and Restated Certificate of Incorporation of Climate Master, Inc.

*

3(ii).11

Amended and Restated Bylaws of Climate Master, Inc.

*

3(i).12

Articles of Organization of Consolidated Industries L.L.C.

*

3(ii).12

Operating Agreement of Consolidated Industries L.L.C.

*

3(i).13

Articles of Organization of EDC AG Products Company L.L.C.

*

3(ii).13

Operating Agreement of EDC AG Products Company L.L.C.

*

3(i).14

Articles of Organization of El Dorado Acid, L.L.C.

*

3(ii).14

Amended and Restated Operating Agreement of El Dorado Acid, L.L.C.

*

3(i).15

Articles of Organization of El Dorado Acid II, L.L.C.

*

 

II-26

---

Table of Contents

3(ii).15

Amended and Restated Operating Agreement of El Dorado Acid II, L.L.C.

*

3(i).16

Articles of Organization of El Dorado Ammonia L.L.C.

*

3(ii).16

Operating Agreement of El Dorado Ammonia L.L.C.

*

3(i).17

Amended and Restated Certificate of Incorporation of El Dorado Chemical Company

*

3(ii).17

Amended and Restated Bylaws of El Dorado Chemical Company

*

3(i).18

Articles of Organization of El Dorado Nitric L.L.C.

*

3(ii).18

Operating Agreement of El Dorado Nitric L.L.C.

*

3(i).19

Certificate of Limited Partnership of El Dorado Nitrogen, L.P.

*

3(ii).19

Agreement of Limited Partnership of El Dorado Nitrogen, L.P., as amended

*

3(i).20

Amended and Restated Certificate of Incorporation of International Environmental Corporation

*

3(ii).20

Amended and Restated Bylaws of International Environmental Corporation

*

3(i).21

Amended and Restated Certificate of Incorporation of Koax Corp.

*

3(ii).21

Amended and Restated Bylaws of Koax Corp.

*

3(i).22

Articles of Organization of LSB Capital L.L.C.

*

3(ii).22

Operating Agreement of LSB Capital L.L.C.

*

3(i).23

Articles of Organization of LSB Chemical L.L.C.

*

3(ii).23

Operating Agreement of LSB Chemical L.L.C.

*

3(i).24

Articles of Incorporation of LSB – Europa Limited, as amended

*

3(ii).24

Bylaws of LSB – Europa Limited, as amended

*

3(i).25

Amended and Restated Certificate of Incorporation of Pryor Chemical Company, as amended

*

3(ii).25

Amended and Restated Bylaws of Pryor Chemical Company, as amended

*

3(i).26

Articles of Organization of Summit Machine Tool Manufacturing L.L.C.

*

3(ii).26

Amended and Restated Operating Agreement of Summit Machine Tool Manufacturing L.L.C.

*

3(i).27

Amended and Restated Certificate of Incorporation of The Climate Control Group, Inc.

*

3(ii).27

Amended and Restated Bylaws of The Climate Control Group, Inc.

*

3(i).28

Certificate of Incorporation of ThermaClime Technologies, Inc., as amended

*

3(ii).28

Bylaws of ThermaClime Technologies, Inc., as amended

*

3(i).29

Amended and Restated Certificate of Incorporation of Trison Construction, Inc.

*

3(ii).29

Amended and Restated Bylaws of Trison Construction, Inc.

*

3(i).30

Certificate of Incorporation of XpediAir, Inc., as amended

*

3(ii).30

Bylaws of XpediAir, Inc., as amended

*

3(i).31

Articles of Organization of Zena Energy L.L.C.

*

3(ii).31

Amended and Restated Operating Agreement of Zena Energy L.L.C.

*

4.1

Redemption Notice for Convertible Noncumulative Preferred Stock, dated February 21, 2012.

8-K

001-07677

February 24, 2012

99.1

—

 

II-27

---

Table of Contents

4.2		Specimen Certificate for the Company’s Series B Preferred Stock, having a par value of $100 per share. See SEC file number 001-0767.		S-3		37-9848				4.27			—
4.3		Specimen of Certificate of Series D 6% Cumulative, Convertible Class C Preferred Stock.		10-K		001-07677		March 3, 2011		4.3			—
4.4		Specimen Certificate for the Company’s Common Stock		S-3ASR		333-184995		November 6, 2012		4.4			—
4.5		Renewed Rights Agreement, dated as of December 2, 2008, between the Company and UMB Bank, n.a.		8-K		001-07677		December 5, 2008		4.1			—
4.6		First Amendment to Renewed Rights Agreement, dated December 3, 2008, between LSB Industries, Inc. and UMB Bank, n.a.		8-K		001-07677		December 5, 2008		4.3			—
4.7		Indenture, dated August 7, 2013, among LSB Industries, Inc., the subsidiary guarantors named therein, and UMB Bank, n.a., as trustee.		8-K		001-07677		August 14, 2013		4.1			—
4.8		Registration Rights Agreement, dated August 7, 2013, among LSB Industries, Inc., the subsidiary guarantors named therein, and Wells Fargo Securities, LLC, as representative of the initial purchasers named therein.		8-K		001-07677		August 14, 2013		4.2			—
4.9		Intercreditor Agreement, dated August 7, 2013, by and among Wells Fargo Capital Finance, Inc., as agent, and UMB Bank, n.a., as collateral agent, and acknowledged and agreed by LSB Industries, Inc. and the other guarantors named therein.		8-K		001-07677		August 14, 2013		99.1			—
4.10		Second Amended and Restated Loan and Security Agreement by and among LSB Industries, Inc., each of its subsidiaries that are signatory thereto, the lenders that are from time to time parties thereto and Wells Fargo Capital Finance, LLC, as the Arranger and Administrative Agent		10-K		001-07677		February 27, 2014		4.9			—
5.1		Opinion of Conner & Winters, LLP											*
10.1		Limited Partnership Agreement dated as of May 4, 1995 between the general partner, and LSB Holdings, Inc., an Oklahoma Corporation, as limited partner.		10-K		001-07677		April 11, 1996		10.11			—
10.2		Form of Death Benefit Plan Agreement between the Company and the employees covered under the plan.		10-K		001-07677		March 31, 2006		10.2			—
10.3		LSB Industries, Inc.’s 1998 Stock Option and Incentive Plan		10-K		001-07677		April 15, 1999		10.44			—
10.4		Nonqualified Stock Option Agreement, dated June 19, 2006, between LSB Industries, Inc. and Dan Ellis		S-8		333-145957		September 10, 2007		99.1			—
10.5		Nonqualified Stock Option Agreement, dated June 19, 2006, between LSB Industries, Inc. and John Bailey		S-8		333-145957		September 10, 2007		99.2			—
10.6		LSB Industries, Inc. 2008 Incentive Stock Plan, effective June 5, 2008.		8-K		001-07677		June 6, 2008		99.1			—
10.7		Severance Agreement, dated January 17, 1989 between the Company and Jack E. Golsen. The Company also entered into identical agreements with Tony M. Shelby, David R. Goss, Barry H. Golsen, David M. Shear, and Jim D. Jones and the Company will provide copies thereof to the Commission upon request.		10-K		001-07677		March 31, 2006		10.13			—
10.8		Amendment to Severance Agreement, dated December 17, 2008, between Barry H. Golsen and the Company. Each Amendment to Severance Agreement with Jack E. Golsen, Tony M. Shelby, David R. Goss and David M. Shear is substantially the same as this exhibit and will be provided to the Commission upon request.		8-K		001-07677		December 23, 2008		99.2			—
10.9		Employment Agreement and Amendment to Severance Agreement dated January 12, 1989 between the Company and Jack E. Golsen, dated March 21, 1996.		10-K		001-07677		March 31, 2006		10.15			—

 

II-28

---

Table of Contents

10.10		First Amendment to Employment Agreement, dated April 29, 2003 between the Company and Jack E. Golsen.		10-K/A		001-07677		April 29, 2003		10.52			—
10.11		Third Amendment to Employment Agreement, dated December 17, 2008, between the Company and Jack E. Golsen.		8-K		001-07677		December 23, 2008		99.1			—
10.12		Nitric Acid Supply Operating and Maintenance Agreement, dated October 23, 2008, between El Dorado Nitrogen, L.P., El Dorado Chemical Company and Bayer MaterialScience, LLC. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #30125, DATED OCTOBER 4, 2013, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-Q		001-07677		November 6, 2008		10.1			—
10.13		Second Amendment to the Nitric Acid Supply, Operating and Maintenance Agreement, dated June 16, 2010, between El Dorado Nitrogen, L.P., El Dorado Chemical Company and Bayer MaterialScience, LLC. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #30124, DATED OCTOBER 4, 2013, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-Q		001-07677		August 6, 2010		10.2			—
10.14		Third Amendment to Nitric Acid Supply, Operating and Maintenance Agreement between El Dorado Nitrogen, L.P., El Dorado Chemical Company and Bayer MaterialScience LLC, dated June 25, 2013. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS SUBJECT OF A COMMISSION ORDER CF #30123, DATED OCTOBER 4, 2013, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-Q		001-07677		June 30, 2013		10.3			—
10.15		AN Supply Agreement, dated effective January 1, 2010, between El Dorado Chemical Company and Orica International Pte Ltd. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #24842, DATED MARCH 25, 2010, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-K		001-07677		March 8, 2010		10.27			—
10.16		First Amendment to AN Supply Agreement, dated effective March 1, 2010, between El Dorado Chemical Company and Orica International Pte Ltd.		10-K		001-07677		March 8, 2010		10.28			—
10.17		Third Amendment to AN Supply Agreement, dated effective April 9, 2013, between El Dorado Chemical Company and Orica International Pte Ltd.		8-K		001-07677		May 1, 2013		99.1			—
10.18		Agreement, effective August 1, 2013, between El Dorado Chemical Company and United Steelworkers of America International Union on behalf of Local 13-434.		8-K		001-07677		October 11, 2013		99.1			—
10.19		Agreement, effective October 17, 2013, between El Dorado Chemical Company and International Association of Machinists and Aerospace Workers, AFL-CIO Local No. 224.		8-K		001-07677		October 17, 2013		99.2			—

 

II-29

---

Table of Contents

10.20		Agreement, dated November 12, 2013, between United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, on behalf of Local No. 00417 and Cherokee Nitrogen Company.		8-K		001-07677		February 13, 2014		99.1			—
10.21		Asset Purchase Agreement, dated as of December 6, 2002 by and among Energetic Systems Inc. LLC, UTeC Corporation, LLC, SEC Investment Corp. LLC, DetaCorp Inc. LLC, Energetic Properties, LLC, Slurry Explosive Corporation, Universal Tech Corporation, El Dorado Chemical Company, LSB Chemical Corp., LSB Industries, Inc. and Slurry Explosive Manufacturing Corporation, LLC.		8-K		001-07677		December 27, 2002		2.1			—
10.22		Exhibits and Disclosure Letters to the Asset Purchase Agreement, dated as of December 6, 2002 by and among Energetic Systems Inc. LLC, UTeC Corporation, LLC, SEC Investment Corp. LLC, DetaCorp Inc. LLC, Energetic Properties, LLC, Slurry Explosive Corporation, Universal Tech Corporation, El Dorado Chemical Company, LSB Chemical Corp., LSB Industries, Inc. and Slurry Explosive Manufacturing Corporation, LLC.		10-Q		001-07677		December 27, 2002		10.1b			—
10.23		Anhydrous Ammonia Sales Agreement, dated effective January 1, 2009 between Koch Nitrogen International Sàrl and El Dorado Chemical Company. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #28828, DATED SEPTEMBER 14, 2012, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-K		001-07677		December 31, 2008		10.49			—
10.24		Second Amendment to Anhydrous Ammonia Sales Agreement, dated February 23, 2010, between Koch Nitrogen International Sàrl and El Dorado Chemical Company. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #28827, DATED SEPTEMBER 14, 2012, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		10-K		001-07677		December 31, 2009		10.35			—
10.25		Fifth Amendment to the Anhydrous Ammonia Sales Agreement, dated August 22, 2012, between KOCH Nitrogen International Sàrl and El Dorado Chemical Company. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDERS CF#28826, CF#28827, AND CF#28826, EACH DATED SEPTEMBER 14, 2012, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		8-K		001-07677		August 28, 2012		99.1			—
10.26		Urea Ammonium Nitrate Purchase and Sale Agreement, dated May 7, 2009, between Pryor Chemical Company and Koch Nitrogen Company, LLC. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #23659, DATED JUNE 9, 2009, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		8-K		001-07677		May 13, 2009		99.1			—

 

II-30

---

Table of Contents

10.27		Amendment No. 1 to Urea Ammonium Nitrate Purchase and Sale Agreement, dated October 29, 2009, between Pryor Chemical Company and Koch Nitrogen Company, LLC. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AS IT IS THE SUBJECT OF A COMMISSION ORDER CF #24284, DATED NOVEMBER 19, 2009, GRANTING REQUEST BY THE COMPANY FOR CONFIDENTIAL TREATMENT BY THE SECURITIES AND EXCHANGE COMMISSION UNDER THE FREEDOM OF INFORMATION ACT.		8-K		001-07677		November 4, 2009		99.1			—
10.28		Railcar Management Agreement, dated May 7, 2009, between Pryor Chemical Company and Koch Nitrogen Company, LLC.		8-K		001-07677		May 13, 2009		99.2			—
10.29		Real Estate Purchase Contract, dated as of May 26, 2011, by and between DPMG, Inc., Prime Financial L.L.C., Landmark Land Company, Gerald G. Barton and Jack E. Golsen.		10-Q		001-07677		November 7, 2011		10.1			—
10.30		Real Estate Purchase Contract, dated as of September 8, 2011, by and between South Padre Island Development, LLC, Prime Financial L.L.C., Landmark Land Company, Gerald G. Barton and Jack E. Golsen.		10-Q		001-07677		November 7, 2011		10.2			—
10.31		First Amendment to Real Estate Purchase Contract, effective October 20, 2011, by and among South Padre Island Development, LLC, Prime Financial L.L.C., Landmark Land Company, Gerald G. Barton and Jack E. Golsen.		10-Q		001-07677		November 7, 2011		10.3			—
10.32		Second Amendment to Real Estate Purchase Contract, effective December 16, 2011, by and among South Padre Island Development, LLC, Prime Financial L.L.C., Landmark Land Company, Gerald G. Barton and Jack E. Golsen.		8-K		001-07677		December 22, 2011		99.1			—
10.33		Common Stock Purchase Warrant granted by Landmark Land Company to Prime Financial, L.L.C., dated February 7, 2012		8-K		001-07677		February 16, 2012		99.4			—
10.34		Geothermal Use Contract, between South Padre Island Development, LLC and Prime Financial, L.L.C., dated February 7, 2012		8-K		001-07677		February 16, 2012		99.5			—
10.35		Purchase and Sale Agreement, dated October 31, 2012, between Clearwater Enterprises, L.L.C. and Zena Energy, L.L.C. Exhibits to the Purchase and Sale Agreement have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be provided supplementally to the Securities and Exchange Commission upon request.		8-K		001-07677		November 2, 2012		99.1			—
10.36		Contract, between Weatherly Inc. and El Dorado Chemical Company, dated November 30, 2012.		8-K		001-07677		December 6, 2012		99.2			—
10.37		Engineering Procurement and Construction Agreement, dated August 12, 2013, between El Dorado Ammonia L.L.C. and SAIC Constructors, LLC.		8-K		001-07677		August 15, 2013		10.1			—
10.38		Construction Agreement-DMW2, dated November 6, 2013, between El Dorado Chemical Company and SAIC Constructors, LLC.		8-K		001-07677		November 12, 2013		99.1			—
10.39		Construction Agreement-NACSAC, dated November 6, 2013, between El Dorado Chemical Company and SAIC Constructors, LLC.		8-K		001-07677		November 12, 2013		99.2			—
10.40		Engineering, Procurement and Construction Agreement, dated December 31, 2013, between El Dorado Chemical Company and SAIC Constructors, LLC.		8-K		001-07677		January 7, 2014		99.1			—
10.41		Promissory Note, dated February 1, 2013, in the original principal amount of $35 million, issued by Zena Energy L.L.C. in favor of International Bank of Commerce.		8-K		001-07677		February 7, 2013		99.1			—

 

II-31

---

Table of Contents

10.42		Leasehold Mortgage, Security Agreement, Assignment and Fixture Filing, dated February 1, 2013, from Zena Energy L.L.C. to International Bank of Commerce.		8-K		001-07677		February 7, 2013		99.2			—
10.43		Guaranty, dated February 1, 2013, issued by LSB Industries, Inc. in favor of International Bank of Commerce.		8-K		001-07677		February 7, 2013		99.3			—
10.44		Agreement by and among LSB Industries, Inc. and Engine Capital, L.P., Red Alder, LLC, and certain of their respective affiliates, dated April 3, 2014		8-K		001-07677		April 4, 2014		99.2			—
10.45		Agreement by and among LSB Industries, Inc. and Starboard Value LP, and certain of its affiliates, dated April 3, 2014		8-K		001-07677		April 4, 2014		99.1			—
12.1		Calculation of Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividends.											*
21.1		Subsidiaries of LSB Industries, Inc.											*
23.1		Consent of Independent Registered Public Accounting Firm.											*
23.2		Consent of Conner & Winters, LLP (included in Exhibit 5.1)											*
24.1		Power of Attorney (included on signature page to this registration statement)											*
25.1		Statement of Eligibility on Form T-1 of UMB Bank, n.a.											*
99.1		Form of Letter of Transmittal											*
99.2		Form of Letter to Clients											*
99.3		Form of Letter to Brokers											*

 

II-32

Exhibit 3(i).2

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

THERMALCLIME, INC.

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, Oklahoma 73105

ThermalClime, Inc., an Oklahoma corporation (the “Corporation”), for the purpose of amending its Amended and Restated Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

1. Article First of the Amended and Restated Certificate of Incorporation of the Corporation is hereby amended by striking the name “ThermalClime, Inc.” and substituting the following new name of the Corporation in lieu thereof: “CEPOLK Holdings, Inc.”

2. There are no changes to Articles Second through Ninth of the Amended and Restated Certificate of Incorporation of the Corporation.

3. This First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation to be signed by its Bd. Chairman/CEO and attested by its Asst. Secretary this 16th day of April, 2004.

 

						THERMALCLIME, INC.
ATTEST:
By:		/s/ David M. Shear				By:		/s/ Jack E. Golsen
		Asst. Secretary						Bd. Chairman/CEO

---

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

LSB SOUTH AMERICA CORPORATION

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

LSB South America Corporation, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Certificate of Incorporation was filed under the name LSB South America Corporation with the Secretary of State of the State of Oklahoma on July 25, 1994.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is ThermalClime, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

---

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
50,000		$	1.00			$	50,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this

 

2

---

Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, LSB South America Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by its President and attested by its Secretary this 20th day of January, 1999.

 

 

ATTEST:

/s/ David R. Goss

Secretary

 

4

Exhibit 3(ii).2

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED BYLAWS

OF

THERMALCLIME, INC.

(an Oklahoma corporation)

The following amendment to the Amended and Restated Bylaws of ThermalClime, Inc., now known as CEPOLK Holdings, Inc. (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on April 16, 2004.

I. Article One (1) of the Amended and Restated Bylaws of the Corporation is hereby amended by striking the name “ThermalClime, Inc.” and substituting the following new name of the Corporation in lieu thereof:

“CEPOLK Holdings, Inc.”

II. There are no changes to Articles Two (2) through Eleven (11) of the Amended and Restated Bylaws of the Corporation.

The Amended and Restated Bylaws of the Corporation, as amended and modified by this First Amendment to the Amended and Restated Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Amended and Restated Bylaws as provided in this First Amendment to the Amended and Restated Bylaws of the Corporation is effective as of the 16th day of April, 2004, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: April 16, 2004

 

ATTEST:

 

/s/ David M. Shear

Secretary

[Corporate Seal]

---

AMENDED AND RESTATED BYLAWS

OF

THERMALCLIME, INC.

(an Oklahoma corporation)

These Amended and Restated Bylaws of ThermalClime, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on July 25, 1994 to read as follows:

ARTICLE I.

NAME

The name of the Corporation is ThermalClime, Inc. (the “Corporation”).

ARTICLE II.

OFFICES

Section 1. Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2. Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III.

MEETINGS OF SHAREHOLDERS

Section 1. Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 2. Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3. Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 4. Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 5. Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 6. Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

- 2 -

---

Section 7. Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 8. Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 9. Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 10. Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the

 

- 3 -

---

appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 11. Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 12. Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

- 4 -

---

Section 13. Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV.

BOARD OF DIRECTORS

Section 1. Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 2. Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 3. Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual

 

- 5 -

---

or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4. Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 5. Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 6. Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 7. Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 8. Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 9. Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 10. Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour;

 

- 6 -

---

provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 11. Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 12. Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 13. Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 14. Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V.

EXECUTIVE COMMITTEE

Section 1. Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 2. Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

- 7 -

---

Section 3. Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 4. Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5. Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 6. Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 7. Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 8. Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 9. Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI.

COMMITTEES OF DIRECTORS

Section 1. Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may

 

- 8 -

---

exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 2. Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII.

OFFICERS

Section 1. Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 2. Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 3. Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 4. Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 5. Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

 

- 9 -

---

Section 6. Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7. Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 8. Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 9. Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 10. President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

 

- 10 -

---

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 11. Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 12. Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 13. Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

 

- 11 -

---

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 14. Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 15. Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 16. Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 17. Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

- 12 -

---

ARTICLE VIII.

SHARES OF STOCK

Section 1. Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 2. Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 3. Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 4. Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

 

- 13 -

---

Section 5. Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 6. Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 7. Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8. Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 9. Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX.

EXECUTION OF INSTRUMENTS

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

 

- 14 -

---

Section 2. Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 3. Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 4. Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 5. Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 6. Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

- 15 -

---

ARTICLE X.

INDEMNIFICATION

Section 1. Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 2. Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 3. Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 4. Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 5. Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

- 16 -

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI.

GENERAL PROVISIONS

Section 1. Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 2. Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 3. Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 4. Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 5. Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

- 17 -

---

Section 6. Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 7. Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 8. Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of ThermalClime, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 20th day of January, 1999, the date that such Amended and Restated Bylaws of ThermalClime, Inc. were approved by the Board of Directors of the Corporation.

 

- 18 -

---

Dated: January 20, 1999.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

 

- 19 -

Exhibit 3(i).3

CERTIFICATE OF MERGER

OF

CHEMEX II CORP., AN OKLAHOMA CORPORATION,

INTO

CHEMEX I CORP., AN OKLAHOMA CORPORATION

The undersigned corporation

DOES HEREBY CERTIFY:

FIRST: That the name and state of incorporation of each of the constituent corporations of the merger is as follows:

 

NAME		STATE OF INCORPORATION
Chemex II Corp.		Oklahoma
Chemex I Corp.		Oklahoma

SECOND: That an Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations in accordance with the requirements of Section 1081 of the Oklahoma General Corporation Act.

THIRD: That the name of the surviving corporation of the merger is Chemex I Corp.

FOURTH: That the Certificate of Incorporation of Chemex I Corp., an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

FIFTH: That the executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

---

SIXTH: That a copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

SEVENTH: That this Certificate of Merger shall be effective on the 1st day of April, 2010.

Dated: April 1, 2010

 

 

Attest:

/s/ David M. Shear

David Shear, Secretary

 

2

---

FIRST AMENDMENT

TO THE

CERTIFICATE OF INCORPORATION

OF

SLURRY EXPLOSIVE CORPORATION

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, Oklahoma 73105

Slurry Explosive Corporation, an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

1) Article 1 of the Certificate of Incorporation of the Corporation is hereby amended by striking the name “Slurry Explosive Corporation” and substituting the following new name of the Corporation in lieu thereof: “Chemex I Corp.”

2) There are no changes to Articles 2 through 12 of the Certificate of Incorporation of the Corporation.

3) This First Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Certificate of Incorporation of the Corporation to be signed by its Vice President and attested by its Asst. Secretary this 11th day of December, 2002.

 

						SLURRY EXPLOSIVE CORPORATION
ATTEST:
By:		/s/ David M. Shear				By:		/s/ Tony M. Shelby
		Asst. Secretary						Vice President

---

CERTIFICATE OF INCORPORATION

OF OCT 12 1988

SLURRY EXPLOSIVE CORPORATION

To the Secretary of State

Of the State of Oklahoma:

The undersigned, in order to form a corporation pursuant to the provisions of the Oklahoma General Corporation Act (the “Act”), certifies as follows:

Article 1: Name

The name of the Corporation is:

SLURRY EXPLOSIVE CORPORATION

Article 2: Registered Office and Agent

The address of the Corporation’s registered office in the State of Oklahoma is 16 South Pennsylvania, Oklahoma City, Oklahoma County, Oklahoma 73107, and the name of its registered agent at that address is Larry McLane.

Article 3: Duration

The Corporation shall have perpetual existence.

Article 4: Purpose

The Corporation’s purpose shall consist of doing all things and performing all acts permitted a general corporation under the Act.

Article 5: Authorized Capital

The Corporation shall have the authority to issue 10,000 shares of voting common stock, with a par value of $1.00 per share.

Article 6: Incorporator

The name and address of the incorporator is John C. Andrews, 500 W. Main, Oklahoma City, Oklahoma 73102.

Article 7: Directors

The Corporation shall have the number of directors as specified from time to time pursuant to the provisions of the Corporation’s bylaws.

---

Article 8: Bylaws

The Corporation’s directors shall have the power and authority to adopt, alter, repeal and amend the Corporation’s bylaws.

Article 9: Compromise or Arrangement

Whenever the Corporation proposes a compromise or arrangement between the Corporation and its creditors, its shareholders, or any class of its creditors or shareholders, any court of equitable jurisdiction within Oklahoma in a summary way may order a meeting of the creditors, shareholders or class of creditors or shareholders, as applicable, on the application of the Corporation, any creditor or shareholder of the Corporation, any receiver or receivers appointed for the Corporation pursuant to Section 1106 of the Act, any trustee or trustees in dissolution of the Corporation, or any receiver or receivers appointed for the Corporation pursuant to Section 1100 of the Act. If a majority in number representing three-fourths in value of the creditors, shareholders, or class of creditors or shareholders, as applicable, agree to any compromise or arrangement and to any reorganization of the Corporation as a consequence of any compromise or arrangement, the compromise or arrangement and the reorganization (if sanctioned by the court) shall bind the Corporation and all of the shareholders, creditors or class of creditors or shareholders of the Corporation, as applicable.

Article 10: Appraisal Rights

The appraisal rights afforded in Section 1091 of the Act, subject to the duties and limitations set forth in that section, shall attach to any proposed amendment to this Certificate of Incorporation which attempts to impose, directly or indirectly, personal liability for the debts of the Corporation on any shareholder or shareholders.

Article 11: Liability

The directors of the Corporation shall have limited personal liability to the full extent permitted by the Act, as now in effect or later amended, or otherwise permitted by the law. Specifically and without limiting the foregoing provision, the directors of the Corporation shall have no personal liability to the Corporation or its shareholders for monetary damages as a result of any breach of fiduciary duty, except for (a) a breach of the director’s duty of loyalty to the Corporation or its shareholders, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, (c) a violation of Section 1053 of the Act, or (d) a transaction from which the director derived an improper personal benefit.

 

- 2 -

---

Article 12: Indemnification

The Corporation may indemnify any and all persons whom it shall have the power to indemnify under the Act, to the full extent permitted by the Act, from and against any and all of the expenses, liabilities and other items specified by the Act, and the indemnification allowed by this Article 1.2 shall not operate to exclude any other rights under the Bylaws of the Corporation, any agreement, any vote of the shareholders or directors, or otherwise, both as to any action in an official capacity and as to any action in another capacity while holding office. The indemnification allowed by this Article 12 shall continue as to a person who has ceased to serve as a director, officer, employee or agent and shall inure to the benefit of the person’s heirs, executors and administrators.

Executed on this 12th day of October, 1988.

 

STATE OF OKLAHOMA             )

                                                         )         SS:

COUNTY OF OKLAHOMA         )

This instrument was acknowledged before me on this 12th day of October, 1988, by John C. Andrews.

 

 

My Commission Expires:

10-2-91

(SEAL)

 

- 3 -

Exhibit 3(ii).3

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED BYLAWS

OF

SLURRY EXPLOSIVE CORPORATION

(an Oklahoma corporation)

The following amendment to the Amended and Restated Bylaws of Slurry Explosive Corporation, now known as Slurry Holdings Corporation (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on November 22, 2002.

1. Article I of the Amended and Restated Bylaws of the Corporation is hereby amended by striking the name “Slurry Explosive Corporation” and substituting the following new name of the Corporation in lieu thereof:

“Chemex I Corp.”

2. There are no changes to Articles II through XI of the Amended and Restated Bylaws of the Corporation.

The Amended and Restated Bylaws of the Corporation, as amended and modified by this First Amendment to the Amended and Restated Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Amended and Restated Bylaws as provided in this First Amendment to the Amended and Restated Bylaws of the Corporation is effective as of the 22nd day of November, 2002, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: November 22, 2002.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

---

AMENDED AND RESTATED BYLAWS

OF

SLURRY EXPLOSIVE CORPORATION

(an Oklahoma corporation)

These Amended and Restated Bylaws of Slurry Explosive Corporation (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on October 12, 1988 to read as follows:

ARTICLE I.

NAME

The name of the Corporation is Slurry Explosive Corporation (the “Corporation”).

ARTICLE II.

OFFICES

Section 1. Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 5700 North Portland, Suite 301, Oklahoma City, Oklahoma 73112. The Board of Directors may change such principal office from time to time.

Section 2. Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III.

MEETINGS OF SHAREHOLDERS

Section 1. Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 2. Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3. Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 4. Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 5. Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 6. Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 7. Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 8. Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 9. Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 10. Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long

 

3

---

as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 11. Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 12. Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 13. Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 14. Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV.

BOARD OF DIRECTORS

Section 1. Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 2. Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any

 

5

---

meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 3. Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4. Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 5. Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 6. Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 7. Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 8. Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

 

6

---

Section 9. Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 10. Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 11. Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 12. Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 13. Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 14. Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

 

7

---

ARTICLE V.

EXECUTIVE COMMITTEE

Section 1. Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

Section 2. Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 3. Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 4. Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5. Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 6. Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 7. Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 8. Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

 

8

---

Section 9. Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI.

COMMITTEES OF DIRECTORS

Section 1. Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 2. Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII.

OFFICERS

Section 1. Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 2. Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 3. Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

 

9

---

Section 4. Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 5. Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 6. Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7. Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 8. Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 9. Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 10. President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

 

10

---

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 11. Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 12. Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 13. Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

 

11

---

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 14. Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 15. Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

 

12

---

Section 16. Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 17. Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII.

SHARES OF STOCK

Section 1. Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 2. Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

 

13

---

Section 3. Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

Section 4. Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 5. Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 6. Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 7. Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8. Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 9. Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX.

EXECUTION OF INSTRUMENTS

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

Section 2. Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 3. Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 4. Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 5. Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

 

15

---

Section 6. Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X.

INDEMNIFICATION

Section 1. Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 2. Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 3. Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 4. Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 5. Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI.

GENERAL PROVISIONS

Section 1. Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 2. Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 3. Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 4. Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 5. Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or

 

17

---

after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 6. Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 7. Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 8. Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the

 

18

---

notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of Slurry Explosive Corporation set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Amended and Restated Bylaws of Slurry Explosive Corporation were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

 

19

Exhibit 3(i).4

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “Chemical Properties L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 22nd day of September, 2011.

 

Exhibit 3(ii).4

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

CHEMICAL PROPERTIES L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of CHEMICAL PROPERTIES L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, Consolidated Industries Corp., an Oklahoma corporation, converted to Consolidated Industries L.L.C., an Oklahoma limited liability company, effective as of 11:58 p.m. on December 31, 2013, and, thereafter, Consolidated Industries L.L.C. contributed 100% of the membership interest in the Company to the Member, effective as of December 31, 2013 (the “Effective Time”). In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated September 22, 2011, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was formed as an Oklahoma limited liability company on September 22, 2011, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers

---

now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

2

---

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

3

---

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

4

---

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5

---

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6

---

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

7

---

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8

---

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

 

9

---

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).5

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “Chemical Transport L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 1st day of April, 2010.

 

Exhibit 3(ii).5

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

CHEMICAL TRANSPORT L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of CHEMICAL TRANSPORT L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, Consolidated Industries Corp., an Oklahoma corporation, converted to Consolidated Industries L.L.C., an Oklahoma limited liability company, effective as of 11:58 p.m. on December 31, 2013, and, thereafter, Consolidated Industries L.L.C. contributed 100% of the membership interest in the Company to the Member, effective as of December 31, 2013 (the “Effective Time”). In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated April 1, 2010, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was formed as an Oklahoma limited liability company on April 1, 2010, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies

---

organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

2

---

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

3

---

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

4

---

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are

 

5

---

carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6

---

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the

 

7

---

Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8

---

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

 

9

---

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).6

ARTICLES OF CONVERSION

of

CHEROKEE NITROGEN COMPANY,

an Oklahoma corporation

The undersigned, for the purpose of converting Cherokee Nitrogen Company, an Oklahoma corporation, to Cherokee Nitrogen L.L.C., an Oklahoma limited liability company, pursuant to Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act, does hereby execute the following Articles of Conversion (the “Articles”):

1. Corporation Name, Date, and Jurisdiction. Cherokee Nitrogen Company was first formed as an Oklahoma corporation on November 20, 2003.

2. Name of Limited Liability Company. The name of the limited liability company as set forth in its Articles of Organization attached hereto is “Cherokee Nitrogen L.L.C.”

3. Effective Date and Time. These Articles shall be effective at 11:56 p.m. on December 31, 2013.

4. Approval. The conversion and the attached Articles of Organization of Cherokee Nitrogen L.L.C. have been approved in accordance with the provisions of Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

 

Attest:

/s/ David M. Shear

David M. Shear, Assistant Secretary

---

ARTICLES OF ORGANIZATION

of

CHEROKEE NITROGEN L.L.C.,

an Oklahoma limited liability company

The undersigned, as sole organizer of a limited liability company, does hereby execute and adopt the following Articles of Organization of CHEROKEE NITROGEN L.L.C., pursuant to Section 2004 of the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”):

1. Name. The name of the limited liability company (the “Company”) is:

Cherokee Nitrogen L.L.C.

2. Term. The term of existence of the Company is perpetual.

3. Principal Location. The address of the Company’s principal place of business in the State of Oklahoma is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

4. Resident Agent and Office. The name and address of the Company’s resident agent in the State of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

5. Limited Liability. To the maximum extent permitted by the Act, no member shall be personally liable to the Company, its creditors, or any member and no manager shall be personally liable to the Company, its creditors, or any member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a manager shall not be limited or eliminated for (a) breach of the manager’s duty of loyalty to the Company or its members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager derived an improper personal benefit.

6. Effective Date and Time. These Articles shall be effective at 11:56 p.m. on December 31, 2013.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

 

2

Exhibit 3(ii).6

OPERATING AGREEMENT

OF

CHEROKEE NITROGEN L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of CHEROKEE NITROGEN L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, (a) the Company converted from an Oklahoma corporation known as “Cherokee Nitrogen Company” to an Oklahoma limited liability company effective as of 11:56 p.m. on December 31, 2013 (the “Effective Time”) and (b) the Member converted from an Oklahoma corporation known as “LSB Chemical Corp.” to an Oklahoma limited liability company effective as of 11:57 p.m. on December 31, 2013. Immediately prior to the Company’s conversion, the Member owned 100% of the capital stock of the Company, and the Member currently owns 100% of the membership interest in the Company. The Articles of Organization of the Company (the “Articles”), were filed with the Articles of Conversion of Cherokee Nitrogen Company with the Office of the Secretary of State of the State of Oklahoma on December 23, 2013, pursuant to the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”). The Member is entering into this Agreement to (a) govern the internal business and affairs of the Company, and (b) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was originally formed as an Oklahoma corporation known as “Cherokee Nitrogen Company” on November 20, 2003, and was converted to an Oklahoma limited liability company as of the Effective Time. The Member hereby acknowledges that on December 23, 2013, the Articles were duly filed with the Articles of Conversion with the Oklahoma Secretary of State to be effective as of the Effective Time. The filing of the Articles with the Articles of Conversion is hereby ratified by the Member.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

---

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

2

---

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a

 

3

---

member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4

---

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5

---

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the

 

6

---

funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the

 

7

---

Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8

---

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

9

---

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

10

---

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

11

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

12

Exhibit 3(i).7

FIRST AMENDMENT

TO THE

CERTIFICATE OF INCORPORATION

OF

CHEROKEE NITROGEN COMPANY

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, Oklahoma 73105

Cherokee Nitrogen Company, an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as corrected on September 19, 2000, as provided by Section 1007(F) of the Oklahoma General Corporation Act, hereby certifies as follows:

1. Article First of the Certificate of Incorporation of the Corporation is hereby amended by striking the name “Cherokee Nitrogen Company” and substituting the following new name of the Corporation in lieu thereof: “Cherokee Nitrogen Holdings, Inc.”

2. There are no changes to Articles Second through Eleventh of the Certificate of Incorporation of the Corporation.

3. This First Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Certificate of Incorporation of the Corporation to be signed by its             President and attested by its             Secretary this 20th day of November, 2003.

 

						CHEROKEE NITROGEN COMPANY
ATTEST:
By:		/s/ David M. Shear				By:		/s/ Jack E. Golsen
		Secretary						President

---

CORRECTED CERTIFICATE OF INCORPORATION

OF

CHEROKEE CHEMICAL COMPANY

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

Cherokee Chemical Company, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Certificate of Incorporation was filed under the name Cherokee Chemical Company with the Secretary of State of Oklahoma on September 15, 2000.

 

B.	This Corrected Certificate of Incorporation of the Corporation is filed pursuant to Section 1007(F) of the Oklahoma General Corporation Act to correct an inaccuracy or defect in the original Certificate of Incorporation of the Corporation.

 

C.	The inaccuracy or defect of said Certificate of Incorporation of the Corporation to be corrected is as follows:

Paragraph First of the Certificate of Incorporation of the Corporation was incorrectly stated and is hereby deleted in its entirety and a new Paragraph First is substituted therefor as set forth below.

 

D.	Paragraph First of the Certificate of Incorporation of the Corporation is corrected as follows:

“FIRST: Name. The name of this corporation is Cherokee Nitrogen Company (hereafter this “Corporation”).”

IN WITNESS WHEREOF, for the purpose of correcting an inaccuracy or defect in the forming of a corporation under the laws of the State of Oklahoma, the undersigned, being the Chairman of the Board of the Corporation, does certify that the facts herein stated are true, and accordingly, has hereunto set his hand this 19th day of September, 2000 as the act and deed of the Corporation.

 

---

CERTIFICATE OF INCORPORATION

OF

CHEROKEE CHEMICAL COMPANY

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

FIRST: Name. The name of this corporation is Cherokee Chemical Company (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
500,000		$	0.10			$	50,000.00

SIXTH: Incorporator. The name and address of the incorporator is as follows:

J. Ann Muise, Esq.

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

SEVENTH: Directors. The names and mailing addresses of the persons who are to serve as directors until the first annual meeting of the shareholders or until their removal or resignation are as follows:

---

Name		Mailing Address
Jack E. Golsen		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
Barry H. Golsen		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
Tony M. Shelby		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
David R. Goss		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107

EIGHTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be as specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

NINTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any

 

2

---

creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

TENTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article TENTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

ELEVENTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Article ELEVENTH.

 

3

---

IN WITNESS WHEREOF, the undersigned, being the incorporator hereinabove named, for the purpose of forming a corporation under the laws of the State of Oklahoma, does certify that the facts herein stated are true, and accordingly, has hereunto set her hand this 15th day of September, 2000.

 

 

4

Exhibit 3(ii).7

FIRST AMENDMENT

TO THE

BYLAWS

OF

CHEROKEE NITROGEN COMPANY

(an Oklahoma corporation)

The following amendment to the Bylaws of Cherokee Nitrogen Company, now known as Cherokee Nitrogen Holdings, Inc. (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on November 20, 2003.

1. Article One (1) of the Bylaws of the Corporation is hereby amended by striking the name “Cherokee Nitrogen Company” and substituting the following new name of the Corporation in lieu thereof:

“Cherokee Nitrogen Holdings, Inc.”

2. There are no changes to Articles Two (2) through Eleven (11) of the Bylaws of the Corporation.

The Bylaws of the Corporation, as amended and modified by this First Amendment to the Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Bylaws as provided in this First Amendment to the Bylaws of the Corporation is effective as of the 20th day of November, 2003, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: November 20, 2003

 

 

ATTEST:

/s/ David M. Shear

Secretary

[Corporate Seal]

---

BYLAWS

OF

CHEROKEE NITROGEN COMPANY

(an Oklahoma corporation)

ARTICLE I

NAME

The name of the Corporation is Cherokee Nitrogen Company (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania Avenue, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the

---

President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is

 

2

---

present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the

 

3

---

Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the Corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special

 

5

---

meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of

 

6

---

directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

 

8

---

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

 

9

---

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

 

10

---

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

 

11

---

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not

 

13

---

more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

Exhibit 3(i).8

CORRECTED FIRST AMENDMENT

TO THE

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

CLIMACOOL, INC.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

ClimaCool, Inc., a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation was filed under the name ClimaCool, Inc. with the Secretary of State of Oklahoma on September 28, 2000.

 

B.

This Corrected First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation is filed pursuant to Section 1007(F) of the Oklahoma General Corporation Act to correct an inaccuracy or defect in the First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation.

 

C.	The inaccuracy or defect in said First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation to be corrected is as follows:

Paragraph 1 of the First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation relating to the name of the Corporation was incorrectly stated and is hereby deleted in its entirety and a new Paragraph 1 is substituted therefor as set forth below.

 

D.	Paragraph 1 of the First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation is corrected as follows:

“1. Article First of the Amended and Restated Certificate of Incorporation of the Corporation is hereby amended by striking the name “MultiClima Holdings, Inc.” and substituting the following new name of the Corporation in lieu thereof: “ClimaCool Corp.”

IN WITNESS WHEREOF, for the purpose of correcting an inaccuracy or defect in the amending the name of a corporation under the laws of the State of Oklahoma, the undersigned, being the Chairman of the Board of the Corporation, does certify that the facts herein stated are true, and accordingly, has hereunto set his hand this 18th day of October, 2000 as the act and deed of the Corporation.

---

 

ATTEST:

/s/ David R. Goss

Secretary

 

2

---

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

MULTICLIMA HOLDINGS, INC.

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, Oklahoma 73105

MultiClima Holdings, Inc., an Oklahoma corporation (the “Corporation”), for the purpose of amending its Amended and Restated Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

1. Article First of the Amended and Restated Certificate of Incorporation of the Corporation is hereby amended by striking the name “MultiClima Holdings, Inc.” and substituting the following new name of the Corporation in lieu thereof: “ClimaCool, Inc.”

2. There are no changes to Articles Second through Ninth of the Amended and Restated Certificate of Incorporation of the Corporation.

3. The First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation to be signed by its President and attested by its Secretary this 28th day of September, 2000.

 

						MULTICLIMA HOLDINGS, INC.
ATTEST:
By:		/s/ David R. Goss				By:		/s/ Jack E. Golsen
		Secretary						President

---

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

LSB INTERNATIONAL CORP.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

LSB International Corp., a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

A. The Corporation’s original Certificate of Incorporation was filed under the name LSB International Corp. with the Secretary of State of the State of Oklahoma on August 25, 1992.

B. This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

C. In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

D. The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is MultiClima Holdings, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

---

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
50,000		$	1.00			$	50,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the

 

2

---

court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

IN WITNESS WHEREOF, LSB International Corp. has caused this Amended and Restated Certificate of Incorporation to be signed by its President and attested by its Secretary this 23rd day of April, 1999.

 

3

---

 

ATTEST:

/s/ David M. Shear

Secretary

 

4

Exhibit 3(ii).8

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED BYLAWS

OF

MULTICLIMA HOLDINGS, INC.

(an Oklahoma corporation)

The following amendment to the Amended and Restated Bylaws of MultiClima Holdings, Inc., now known as ClimaCool Corp. (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on September 28, 2000.

1. Article I of the Amended and Restated Bylaws of the Corporation is hereby amended by striking the name “MultiClima Holdings, Inc.” and substituting the following new name of the Corporation in lieu thereof:

“ClimaCool Corp.”

2. There are no changes to Articles II through XI of the Amended and Restated Bylaws of the Corporation.

The Amended and Restated Bylaws of the Corporation, as amended and modified by this First Amendment to the Amended and Restated Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Amended and Restated Bylaws as provided in this First Amendment to the Amended and Restated Bylaws of the Corporation is effective as of the 28th day of September, 2000, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: September 28, 2000.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

---

AMENDED AND RESTATED BYLAWS

OF

MULTICLIMA HOLDINGS, INC.

(an Oklahoma corporation)

These Amended and Restated Bylaws of MultiClima Holdings, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on July 25, 1994 to read as follows:

ARTICLE I

NAME

The name of the Corporation is MultiClima Holdings, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the

 

3

---

appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual

 

5

---

or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour;

 

6

---

provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may

 

8

---

exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

 

9

---

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

 

10

---

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

 

11

---

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

 

13

---

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

These Amended and Restated Bylaws of MultiClima Holdings, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 23rd day of April, 1999, the date that such Amended and Restated Bylaws of MultiClima Holdings, Inc. were approved by the Board of Directors of the Corporation.

Dated: April 23, 1999.

 

 

ATTEST:

David M. Shear

Asst. Secretary

[Corporate Seal]

 

19

Exhibit 3(i).9

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

CLIMATECRAFT, INC.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

ClimateCraft, Inc., a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.

The Corporation’s original Articles of Incorporation were filed under the name Summit Machine Tool Systems, Inc. with the Secretary of State of the State of Oklahoma on July 1, 1983, and amended on August 20, 1997 pursuant to a First Amendment to Certificate of Incorporation of the Corporation and on July 31, 1998 pursuant to a Second Amendment to Certificate of Incorporation of the Corporation.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is ClimateCraft, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

---

FIFTH: Capital Stock. The Corporation is authorized to issue one (1) class of shares of capital stock designated as “Common Stock”. The total number of shares of Common Stock which the Corporation has the authority to issue is 1,000, of which (a) 900 shares are Class A Voting Common Stock, par value $0.50 per share (the “Class A Common Stock”), and (b) 100 shares are Class B Non-Voting Common Stock, par value $0.50 per share (the “Class B Non-Voting Common Stock”). The Class A Common Stock and Class B Non-Voting Common Stock shall have the same rights and privileges and shall rank equally, share ratably and be identical in all respects as to all matters, except that the holders of the Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to a vote of the shareholders of the Corporation. Effective July 31, 1998, each share of Common Stock of the Corporation, par value $10.00 per share that is issued and outstanding immediately prior to such effective date shall be changed into, reclassified as and shall immediately represent eighteen (18) shares of Class A Common Stock and two (2) shares of Class B Non-Voting Stock.

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

 

2

---

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

 

3

---

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

IN WITNESS WHEREOF, ClimateCraft, Inc. has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its             Secretary this 8th day of December, 2000.

 

 

ATTEST:

/s/ David M. Shear

Secretary

 

4

Exhibit 3(ii).9

SECOND AMENDED AND RESTATED BYLAWS

OF

CLIMATECRAFT, INC.

(an Oklahoma corporation)

These Second Amended and Restated Bylaws of ClimateCraft, Inc. formerly known as Summit Machine Tool Systems, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation as previously amended and restated on July 28, 1998, now in effect and originally adopted by the Board of Directors of the Corporation on July 1, 1983, to read as follows:

ARTICLE I

NAME

The name of the Corporation is ClimateCraft, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 518 North Indiana, Oklahoma City, Oklahoma 73106 The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long

 

3

---

as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

 

5

---

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

 

6

---

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

 

7

---

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

 

8

---

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

 

9

---

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

 

10

---

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by law;

 

11

---

(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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

 

12

---

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

 

13

---

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of

 

15

---

other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction

 

17

---

of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

These Second Amended and Restated Bylaws of ClimateCraft, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Second Amended and Restated Bylaws of ClimateCraft, Inc. were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

/s/ David M. Shear

Secretary

[Corporate Seal]

 

19

Exhibit 3(i).10

CERTIFICATE OF INCORPORATION

OF

CLIMATECRAFT TECHNOLOGIES, INC.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

FIRST: Name. The name of this corporation is ClimateCraft Technologies, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. The total number of shares of all classes of capital stock which the Corporation has the authority to issue is 1,000, of which (a) 900 shares are Class A Voting Common Stock, par value $0.50 per share (the “Class A Common Stock”), and (b) 100 shares are Class B Non-Voting Common Stock, par value $0.50 per share (the “Class B Non-Voting Common Stock”). The Class A Common Stock and Class B Non-Voting Common Stock shall have the same rights and privileges and shall rank equally, share ratably and be identical in all respects as to all matters, except that the holders of the Class B Non-Voting Common Stock shall not be entitled to vote on any matter submitted to a vote of the shareholders of the Corporation.

SIXTH: Incorporator. The name and address of the incorporator is as follows:

J. Ann Muise

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

SEVENTH: Directors. The names and mailing addresses of the persons who are to serve as directors until the first annual meeting of the shareholders or until their removal or resignation are as follows:

---

Name		Mailing Address
Jack E. Golsen		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
Steven J. Golsen		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
David R. Goss		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107
Barry H. Golsen		16 South Pennsylvania Avenue
		Oklahoma City, Oklahoma 73107

EIGHTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be as specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

 

2

---

NINTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

TENTH: Director’s Liability; Indemnification.

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article TENTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

 

3

---

ELEVENTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section ELEVENTH.

IN WITNESS WHEREOF, the undersigned, being the incorporator hereinabove named, for the purpose of forming a corporation under the laws of the State of Oklahoma, does certify that the facts herein stated are true, and accordingly, has hereunto set her hand this 14th day of December, 1998.

 

 

4

Exhibit 3(ii).10

BYLAWS

OF

CLIMATECRAFT TECHNOLOGIES, INC.

(an Oklahoma corporation)

ARTICLE I

NAME

The name of the Corporation is ClimateCraft Technologies, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 6 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of

---

Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of

 

2

---

enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the

 

3

---

Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any

 

4

---

such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

 

5

---

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at

 

6

---

the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

 

8

---

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

 

9

---

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

 

10

---

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

 

11

---

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not

 

13

---

more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

CERTIFICATE OF SECRETARY

I hereby certify that:

1. I am the duly elected and acting Secretary of ClimateCraft Technologies, Inc., an Oklahoma corporation (the “Corporation”);

2. The foregoing Bylaws comprising twenty (20) pages constitute the Bylaws of the Corporation as duly adopted by the Board of Directors pursuant to a unanimous written consent of the Board of Directors of the Corporation effective December 14, 1998.

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of the Corporation this 14th day of December, 1998.

 

[SEAL]

 

19

Exhibit 3(i).11

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

CLIMATE MASTER, INC.

TO THE SECRETARY OF STATE OF THE STATE OF DELAWARE:

Climate Master, Inc., a corporation organized and existing under and by virtue of the laws of the State of Delaware (the “Corporation”), does hereby certify as follows:

 

A.

The Corporation’s original Certificate of Incorporation was filed under the name HMWI Acquisition Company with the Secretary of State of Delaware on September 9, 1983 and amended on (i) April 30, 1984 pursuant to a Certificate of Amendment of Certificate of Incorporation of the Corporation, and (ii) August 6, 1987 pursuant to a Certificate of Amendment of Certificate of Incorporation of the Corporation.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 242 and 245 of the Delaware General Corporation Law, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is Climate Master, Inc. (hereafter this “Corporation”).

SECOND: Registered Agent. The name and address of the registered agent of this Corporation in the State of Delaware and the address of the registered office of this Corporation in the State of Delaware, which is the same as the address of its registered agent, are:

Capitol Services, Inc.

615 South DuPont Highway

Dover, Delaware 19901

County of Kent

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Delaware General Corporation Law.

---

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
1,000		$	1.00			$	1,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Delaware, may, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for

 

2

---

this Corporation under the provisions of Section 291 of Title 8 of the Delaware Code or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 279 of Title 8 of the Delaware Code, order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. No director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 174 of the Delaware General Corporation Law, or (d) for any transaction from which the director derived an improper personal benefit. If the Delaware General Corporation Law is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Delaware General Corporation Law as so amended. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Delaware General Corporation Law and all other laws of the State of Delaware.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Delaware at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, Climate Master, Inc. has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its Asst. Secretary this 8th day of December, 2000.

 

 

ATTEST:
/s/ David M. Shear
David M. Shear		Asst. Secretary

 

4

Exhibit 3(ii).11

AMENDED AND RESTATED BYLAWS

OF

CLIMATE MASTER, INC.

(a Delaware corporation)

These Amended and Restated Bylaws of Climate Master, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on January 1, 1984 to read as follows:

ARTICLE I

NAME

The name of the Corporation is Climate Master, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 7400 S.W. 44th Street, Oklahoma City, Oklahoma 73179. The Board of Directors may change such principal office from time to time.

Section 2.2 Registered Office and Agent. The registered office and registered agent of the Corporation required to be maintained in the State of Delaware under the laws of the State of Delaware will be as designated from time to time by the appropriate filing by the Corporation in the office of the Secretary of State of the State of Delaware.

Section 2.3 Other Offices. The Corporation may have other offices at such places, within or without the State of Delaware, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

---

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Delaware as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, or the chairman of the meeting, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally

 

3

---

divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Delaware or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to

 

4

---

therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation at the Corporation’s principal office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Delaware, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

 

5

---

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

 

6

---

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Delaware which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

 

7

---

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

 

8

---

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

 

9

---

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

 

10

---

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

 

11

---

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

 

12

---

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the principal office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its principal office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

 

13

---

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

 

15

---

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, DELAWARE” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

 

17

---

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Delaware or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors,

 

18

---

provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of Climate Master, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Amended and Restated Bylaws of Climate Master, Inc. were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

 

19

Exhibit 3(i).12

ARTICLES OF CONVERSION

of

CONSOLIDATED INDUSTRIES CORP.,

an Oklahoma corporation

The undersigned, for the purpose of converting Consolidated Industries Corp., an Oklahoma corporation, to Consolidated Industries L.L.C., an Oklahoma limited liability company, pursuant to Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act, does hereby execute the following Articles of Conversion (the “Articles”):

1. Corporation Name, Date, and Jurisdiction. Consolidated Industries Corp. was first formed as an Oklahoma corporation on March 18, 2010.

2. Name of Limited Liability Company. The name of the limited liability company as set forth in its Articles of Organization attached hereto is “Consolidated Industries L.L.C.”

3. Effective Date and Time. These Articles shall be effective at 11:58 p.m. on December 31, 2013.

4. Approval. The conversion and the attached Articles of Organization of Consolidated Industries L.L.C. have been approved in accordance with the provisions of Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

---

ARTICLES OF ORGANIZATION

of

CONSOLIDATED INDUSTRIES L.L.C.,

an Oklahoma limited liability company

The undersigned, as sole organizer of a limited liability company, does hereby execute and adopt the following Articles of Organization of Consolidated Industries L.L.C., pursuant to Section 2004 of the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”):

1. Name. The name of the limited liability company (the “Company”) is:

Consolidated Industries L.L.C.

2. Term. The term of existence of the Company is perpetual.

3. Principal Location. The address of the Company’s principal place of business in the State of Oklahoma is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

4. Resident Agent and Office. The name and address of the Company’s resident agent in the State of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

5. Limited Liability. To the maximum extent permitted by the Act, no member shall be personally liable to the Company, its creditors, or any member and no manager shall be personally liable to the Company, its creditors, or any member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a manager shall not be limited or eliminated for (a) breach of the manager’s duty of loyalty to the Company or its members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager derived an improper personal benefit.

6. Effective Date and Time. These Articles shall be effective at 11:58 p.m. on December 31, 2013.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

---

CERTIFICATE OF MERGER

of

PRIME HOLDINGS CORPORATION,

an Oklahoma corporation,

into

CONSOLIDATED INDUSTRIES CORP.,

an Oklahoma corporation

The undersigned, in connection with the merger of Prime Holdings Corporation, an Oklahoma corporation, with and into Consolidated Industries Corp., an Oklahoma corporation, and pursuant to the provisions of Section 1081 of the Oklahoma General Corporation Act, hereby executes these Articles of Merger and certifies that:

1. The name and state of incorporation of each of the constituent corporations of the merger is as follows:

 

2. An Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed, and acknowledged by each of the constituent corporations in accordance with the requirements of Section 1081 of the Oklahoma General Corporation Act.

3. The name of the surviving corporation of the merger is Consolidated Industries Corp.

4. The Certificate of Incorporation of Consolidated Industries Corp., an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

5. The executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

6. A copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

7. This Certificate of Merger shall be effective at 11:55 p.m. on December 31, 2013.

Dated: December 20, 2013

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

---

CERTIFICATE OF MERGER

of

PRIME FINANCIAL L.L.C.,

an Oklahoma limited liability company,

into

CONSOLIDATED INDUSTRIES CORP.,

an Oklahoma corporation

The undersigned, in connection with the merger of Prime Financial L.L.C., an Oklahoma limited liability company, with and into Consolidated Industries Corp., an Oklahoma corporation, and pursuant to the provisions of Section 1090.2 of the Oklahoma General Corporation Act and Section 2054 of the Oklahoma Limited Liability Company Act, hereby executes these Articles of Merger and certifies that:

8. The name and state of incorporation of each of the constituent business entities of the merger is as follows:

 

9. An Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed, and acknowledged by each of the constituent business entities in accordance with the requirements of Section 1090.2 of the Oklahoma General Corporation Act and Section 2054 of the Oklahoma Limited Liability Company Act.

10. The name of the surviving corporation of the merger is Consolidated Industries Corp.

11. The Certificate of Incorporation of Consolidated Industries Corp., an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

12. The executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

13. A copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

14. This Certificate of Merger shall be effective at 11:54 p.m. on December 31, 2013.

Dated: December 20, 2013

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

---

CERTIFICATE OF MERGER

of

THERMACLIME, L.L.C.,

an Oklahoma limited liability company

into

CONSOLIDATED INDUSTRIES CORP.,

an Oklahoma corporation

The undersigned, in connection with the merger of ThermaClime, L.L.C., an Oklahoma limited liability company, with and into Consolidated Industries Corp., an Oklahoma corporation, and pursuant to the provisions of Section 1090.2 of the Oklahoma General Corporation Act and Section 2054 of the Oklahoma Limited Liability Company Act, hereby executes these Articles of Merger and certifies that:

15. The name and state of incorporation of each of the constituent business entities of the merger is as follows:

 

16. An Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed, and acknowledged by each of the constituent business entities in accordance with the requirements of Section 1090.2 of the Oklahoma General Corporation Act and Section 2054 of the Oklahoma Limited Liability Company Act.

17. The name of the surviving corporation of the merger is Consolidated Industries Corp.

18. The Certificate of Incorporation of Consolidated Industries Corp., an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

19. The executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

20. A copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

21. This Certificate of Merger shall be effective at 11:53 p.m. on December 31, 2013.

Dated: December 20, 2013

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

Exhibit 3(ii).12

OPERATING AGREEMENT

OF

CONSOLIDATED INDUSTRIES L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB INDUSTRIES, INC., a Delaware corporation (the “Member”), the sole member of CONSOLIDATED INDUSTRIES L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, the Company converted from an Oklahoma corporation known as “Consolidated Industries Corp.” to an Oklahoma limited liability company effective as of 11:58 p.m. on December 31, 2013 (the “Effective Time”). The Articles of Organization of the Company (the “Articles”), were filed with the Articles of Conversion of Consolidated Industries Corp. with the Office of the Secretary of State of the State of Oklahoma on December 23, 2013, pursuant to the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”). The Member is entering into this Agreement to (a) govern the internal business and affairs of the Company, and (b) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was originally formed as an Oklahoma corporation known as “Consolidated Industries Corp.” on March 18, 2010, and was converted to an Oklahoma limited liability company as of the Effective Time. The Member hereby acknowledges that on December 23, 2013, the Articles were duly filed with the Articles of Conversion with the Oklahoma Secretary of State to be effective as of the Effective Time. The filing of the Articles with the Articles of Conversion is hereby ratified by the Member.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

---

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

2

---

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

3

---

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as

 

4

---

directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5

---

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6

---

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

7

---

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8

---

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

 

9

---

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).13

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “EDC Ag Products Company L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is: David M. Shear 16 South Pennsylvania Avenue Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 24th day of January, 2011.

 

Exhibit 3(ii).13

OPERATING AGREEMENT

OF

EDC AG PRODUCTS COMPANY L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 25th day of January , 2011, by EL DORADO CHEMICAL COMPANY, an Oklahoma corporation (“EDC” or the “Member”).

1. Background. EDC Ag Products Company L.L.C. was organized as an Oklahoma limited liability company (the “Company”) on January 24, 2011, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Oklahoma Secretary of State of, pursuant to the Oklahoma Limited Liability Company Act (as amended from time to time, the “Act”). EDC is entering into this Agreement to establish the terms and conditions governing the business and operation of the Company as a limited liability company pursuant to, and in accordance with, the provisions of the Act.

2. Definitions. For purposes of this Agreement, initially capitalized terms used herein will have the following meanings:

“Act” is defined in paragraph 1 of this Agreement.

“Affiliate” means, when used with respect to any Person, any other Person controlling or controlled by, or under common control with such Person. For purposes of this definition, the term “control,” with respect to any Person, means exclusive possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or of other beneficial interests or by contract or otherwise.

“Agreement” is defined in the preamble to this Agreement.

“Company” is defined in paragraph 1 of this Agreement.

“Member” is El Dorado Chemical Company, as defined in the preamble to this Agreement.

“Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

3. Formation, Duration, and Purpose.

 

3.1

Formation. The Member hereby acknowledges that on January 25, 2011 the Articles were duly filed with the Oklahoma Secretary of State. The filing of the Articles is hereby ratified by the Member.

 

3.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

---

3.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

3.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

3.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

4. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

5. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

5.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

2

---

5.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

5.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

5.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

5.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

5.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

5.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

5.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members thereof will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

3

---

5.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

5.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 5.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

5.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 5.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4

---

5.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

5.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such other committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such other committee.

 

5.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

6. Officers.

 

6.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers” of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, has the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers”, “Assistant Controllers”, “Assistant Secretaries” and “Assistant Treasurers.” An individual may hold more than one office.

 

5

---

6.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

6.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 6.12) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

6.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

6.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

6.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

6.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

6

---

6.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

6.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

6.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

6.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

 

7

---

7. Exculpation and Indemnification.

 

7.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s (a) breach of the manager’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction form which the manager derived an improper personal benefit.

 

7.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 7 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

8. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

8.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

8.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or

 

8

---

any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8.4

Non-exclusive. The rights and authority conferred in this paragraph 8 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 8, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 8 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

8.6

Survival. The foregoing provisions of this paragraph 8 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

9. Rights of the Member. The Member and any of its Affiliates may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

10. Contributions.

 

10.1

Capital Contributions. The Member will contribute to the Company such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

10.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

10.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

 

9

---

11. Profits and Losses; Books and Records.

 

11.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U. S. Treas. Reg. § 301.7701-3.

 

11.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

12. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

13. General Provisions.

 

13.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

13.2

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company.

 

13.3

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

13.4

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement, and all references hereto to paragraphs or subdivisions thereof refer to the corresponding paragraphs or subdivisions thereof of this Agreement, unless specific reference is made to such paragraphs or subdivisions of another document or instrument. Any use of the word “including” herein will be deemed to mean “including without limitation,” unless the context otherwise requires.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).14

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd., Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

(405) 522-4560

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

1. The name of the limited liability company (Note: The name must contain either the words limited liability company or limited company or the abbreviations LLC, LC, L.L.C. or L.C. The word limited may be abbreviated as Ltd. and the word Company may be abbreviated as Co.):

 

 

El Dorado Acid, L.L.C.

 

2. The street address of its principal place of business, wherever located:

    16 South Pennsylvania             Oklahoma City, Oklahoma 73107

 

          Street address                                                    City                               State                                 Zip Code

3. The name and street address of the resident agent in the state of Oklahoma:

    David Shear     16 South Pennsylvania             Oklahoma City, Oklahoma 73107

 

        Name                      Street Address                     City                         State                         Zip Code

                                        (P.O. Boxes are not acceptable.)

4. The term of existence:     perpetual                                                                                                                                                           

Articles of organization must be signed by at least one person who need not be a member of the limited liability company.

                                                                                                                   Dated:             05/01/01                                     

 

Signature:		/s/ David R. Goss

 

Type or Print Name:		David R. Goss

 

Address:		16 S. Pennsylvania Ave, Oklahoma City, OK 73107

Exhibit 3(ii).14

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

EL DORADO ACID, L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by EL DORADO NITRIC L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of EL DORADO ACID, L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, the Member converted from an Oklahoma corporation, formerly known as “El Dorado Nitric Company” to an Oklahoma limited liability company, known as “El Dorado Nitric L.L.C.”, effective as of 11:56 p.m. on December 31, 2013. In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated May 3, 2001, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was formed as an Oklahoma limited liability company on May 3, 2001, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all

---

acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

2

---

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

3

---

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

4

---

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are

 

5

---

carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6

---

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the

 

7

---

Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8

---

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

 

9

---

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).15

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd., Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

(405) 522-4560

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

1. The name of the limited liability company (Note: The name must contain either the words limited liability company or limited company or the abbreviations LLC, LC, L.L.C. or L.C. The word limited may be abbreviated as Ltd. and the word Company may be abbreviated as Co.):

 

 

El Dorado Acid II, L.L.C.

 

2. The street address of its principal place of business, wherever located:

    16 South Pennsylvania             Oklahoma City, Oklahoma 73107

 

        Street address                                              City                         State                         Zip Code

3. The name and street address of the resident agent in the state of Oklahoma:

    David Shear     16 South Pennsylvania         Oklahoma City, Oklahoma 73107

 

        Name                          Street Address                 City                           State                             Zip Code

                                            (P.O. Boxes are not acceptable.)

4. The term of existence:     perpetual                                                                                                                                                           

Articles of organization must be signed by at least one person who need not be a member of the limited liability company.

                                                                                                                           Dated:             05/01/01                                     

 

Signature:		/s/ David R. Goss

 

Type or Print Name:		David R. Goss

 

Address:		16 S. Pennsylvania Ave, Oklahoma City, OK 73107

Exhibit 3(ii).15

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

EL DORADO ACID II, L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by EL DORADO NITRIC L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of EL DORADO ACID II, L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, the Member converted from an Oklahoma corporation, formerly known as “El Dorado Nitric Company” to an Oklahoma limited liability company, known as “El Dorado Nitric L.L.C.”, effective as of 11:56 p.m. on December 31, 2013. In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated May 3, 2001, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was formed as an Oklahoma limited liability company on May 3, 2001, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all

---

acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

2

---

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

3

---

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

4

---

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are

 

5

---

carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6

---

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the

 

7

---

Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8

---

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

 

9

---

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).16

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “El Dorado Ammonia L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 4th day of April, 2013.

kcarver@lsbindustries.com

 

Exhibit 3(ii).16

OPERATING AGREEMENT

OF

EL DORADO AMMONIA L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 4th day of April, 2013, by EL DORADO CHEMICAL COMPANY, an Oklahoma corporation (“EDC” or the “Member”).

1. Background. El Dorado Ammonia L.L.C. was organized as an Oklahoma limited liability company (the “Company”) on April 4, 2013, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Oklahoma Secretary of State of, pursuant to the Oklahoma Limited Liability Company Act (as amended from time to time, the “Act”). EDC is entering into this Agreement to establish the terms and conditions governing the business and operation of the Company as a limited liability company pursuant to, and in accordance with, the provisions of the Act.

2. Definitions. For purposes of this Agreement, initially capitalized terms used herein will have the following meanings:

“Act” is defined in paragraph 1 of this Agreement.

“Affiliate” means, when used with respect to any Person, any other Person controlling or controlled by, or under common control with such Person. For purposes of this definition, the term “control,” with respect to any Person, means exclusive possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or of other beneficial interests or by contract or otherwise.

“Agreement” is defined in the preamble to this Agreement.

“Company” is defined in paragraph 1 of this Agreement.

“Member” is El Dorado Chemical Company, as defined in the preamble to this Agreement.

“Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

3. Formation, Duration, and Purpose.

 

3.1

Formation. The Member hereby acknowledges that on April 4, 2013, the Articles were duly filed with the Oklahoma Secretary of State. The filing of the Articles is hereby ratified by the Member.

 

3.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

---

3.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

3.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

3.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

4. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

5. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

5.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

2

---

5.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

5.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

5.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

5.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

5.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

5.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

5.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members thereof will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

3

---

5.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

5.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 5.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

5.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 5.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4

---

5.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

5.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such other committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such other committee.

 

5.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

6. Officers.

 

6.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President), all as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers” of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, has the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers”, “Assistant Controllers”, “Assistant Secretaries” and “Assistant Treasurers.” An individual may hold more than one office.

 

5

---

6.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

6.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 6.12) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

6.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

6.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

6.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

6.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

6

---

6.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

6.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

6.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

6.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

 

7

---

7. Exculpation and Indemnification.

 

7.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s (a) breach of the manager’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction form which the manager derived an improper personal benefit.

 

7.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 7 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

8. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

8.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

8.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or

 

8

---

any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8.4

Non-exclusive. The rights and authority conferred in this paragraph 8 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 8, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 8 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

8.6

Survival. The foregoing provisions of this paragraph 8 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

9. Rights of the Member. The Member and any of its Affiliates may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

10. Contributions.

 

10.1

Capital Contributions. The Member will contribute to the Company such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

10.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

10.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

 

9

---

11. Profits and Losses; Books and Records.

 

11.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U. S. Treas. Reg. § 301.7701-3.

 

11.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

12. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

13. General Provisions.

 

13.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

13.2

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company.

 

13.3

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

13.4

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement, and all references hereto to paragraphs or subdivisions thereof refer to the corresponding paragraphs or subdivisions thereof of this Agreement, unless specific reference is made to such paragraphs or subdivisions of another document or instrument. Any use of the word “including” herein will be deemed to mean “including without limitation,” unless the context otherwise requires.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).17

CERTIFICATE OF MERGER

of

NORTHWEST FINANCIAL CORPORATION,

an Oklahoma corporation,

into

EL DORADO CHEMICAL COMPANY,

an Oklahoma corporation

The undersigned, in connection with the merger of Northwest Financial Corporation, an Oklahoma corporation, with and into El Dorado Chemical Company, an Oklahoma corporation, and pursuant to the provisions of Section 1081 of the Oklahoma General Corporation Act, hereby executes these Articles of Merger and certifies that:

 

1.

The name and state of incorporation of each of the constituent corporations of the merger is as follows:

 

 

2.

An Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed, and acknowledged by each of the constituent corporations in accordance with the requirements of Section 1081 of the Oklahoma General Corporation Act.

 

3.

The name of the surviving corporation of the merger is El Dorado Chemical Company.

 

4.

The Certificate of Incorporation of El Dorado Chemical Company, an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

 

5.

The executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

 

6.

A copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

 

7.

This Certificate of Merger shall be effective at 11:58 p.m. on December 31, 2013.

Dated: December 20, 2013

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

---

CERTIFICATE OF MERGER

OF

DSN CORPORATION, AN OKLAHOMA CORPORATION,

INTO

EL DORADO CHEMICAL COMPANY, AN OKLAHOMA CORPORATION

The undersigned corporation

DOES HEREBY CERTIFY:

FIRST: That the name and state of incorporation of each of the constituent corporations of the merger is as follows:

 

SECOND: That an Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations in accordance with the requirements of Section 1081 of the Oklahoma General Corporation Act.

THIRD: That the name of the surviving corporation of the merger is El Dorado Chemical Company.

FOURTH: That the Amended and Restated Certificate of Incorporation of El Dorado Chemical Company, an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

FIFTH: That the executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

---

SIXTH: That a copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

SEVENTH: That this Certificate of Merger shall be effective on the 1st day of April, 2010.

Dated: April 1, 2010

 

 

Attest:

/s/ David M. Shear

David Shear, Secretary

 

2

---

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

EL DORADO CHEMICAL COMPANY

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

El Dorado Chemical Company, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Articles of Incorporation were filed under the name E.D.C., Inc. with the Secretary of State of the State of Oklahoma on May 3, 1983 and amended on April 5, 1984, pursuant to an Amended Articles of Incorporation of the Corporation.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is El Dorado Chemical Company (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

---

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
25,000		$	1.00			$	25,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this

 

2

---

Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, El Dorado Chemical Company has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its             Secretary this 8th day of December, 2000.

 

 

ATTEST:

/s/ David M. Shear

Secretary

 

4

Exhibit 3(ii).17

AMENDED AND RESTATED BYLAWS

OF

EL DORADO CHEMICAL COMPANY

(an Oklahoma corporation)

These Amended and Restated Bylaws of El Dorado Chemical Company (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on May 4, 1983, as amended pursuant to an Amendment to the Bylaws of the Corporation dated September 9, 1983 and an Amendment to the Bylaws of the Corporation dated November 29, 1984, to read as follows:

ARTICLE I

NAME

The name of the Corporation is El Dorado Chemical Company (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary

 

3

---

power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be

 

4

---

filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual

 

5

---

meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

 

6

---

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

 

7

---

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

 

8

---

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

 

9

---

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

 

10

---

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

 

11

---

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

 

12

---

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

 

13

---

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

 

15

---

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

 

17

---

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors,

 

18

---

provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of El Dorado Chemical Company set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Amended and Restated Bylaws of El Dorado Chemical Company were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

Secretary   [Corporate Seal]

 

19

Exhibit 3(i).18

ARTICLES OF CONVERSION

of

EL DORADO NITRIC COMPANY,

an Oklahoma corporation

The undersigned, for the purpose of converting El Dorado Nitric Company, an Oklahoma corporation, to El Dorado Nitric L.L.C., an Oklahoma limited liability company, pursuant to Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act, does hereby execute the following Articles of Conversion (the “Articles”):

1. Corporation Name, Date, and Jurisdiction. El Dorado Nitric Company was first formed as an Oklahoma corporation under the name LSB Import Corp. on March 25, 1983.

2. Name of Limited Liability Company. The name of the limited liability company as set forth in its Articles of Organization attached hereto is “El Dorado Nitric L.L.C.”

3. Effective Date and Time. These Articles shall be effective at 11:56 p.m. on December 31, 2013.

4. Approval. The conversion and the attached Articles of Organization of El Dorado Nitric L.L.C. have been approved in accordance with the provisions of Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

 

Attest:

/s/ David M. Shear

David M. Shear, Secretary

---

ARTICLES OF ORGANIZATION

of

EL DORADO NITRIC L.L.C.,

an Oklahoma limited liability company

The undersigned, as sole organizer of a limited liability company, does hereby execute and adopt the following Articles of Organization of EL DORADO NITRIC L.L.C., pursuant to Section 2004 of the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”):

1. Name. The name of the limited liability company (the “Company”) is:

El Dorado Nitric L.L.C.

2. Term. The term of existence of the Company is perpetual.

3. Principal Location. The address of the Company’s principal place of business in the State of Oklahoma is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

4. Resident Agent and Office. The name and address of the Company’s resident agent in the State of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

5. Limited Liability. To the maximum extent permitted by the Act, no member shall be personally liable to the Company, its creditors, or any member and no manager shall be personally liable to the Company, its creditors, or any member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a manager shall not be limited or eliminated for (a) breach of the manager’s duty of loyalty to the Company or its members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager derived an improper personal benefit.

6. Effective Date and Time. These Articles shall be effective at 11:56 p.m. on December 31, 2013.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

Exhibit 3(ii).18

OPERATING AGREEMENT

OF

EL DORADO NITRIC L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of EL DORADO NITRIC L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, (a) the Company converted from an Oklahoma corporation known as “El Dorado Nitric Company” to an Oklahoma limited liability company effective as of 11:56 p.m. on December 31, 2013 (the “Effective Time”) and (b) the Member converted from an Oklahoma corporation known as “LSB Chemical Corp.” to an Oklahoma limited liability company effective as of 11:57 p.m. on December 31, 2013. Immediately prior to the Company’s conversion, the Member owned 100% of the capital stock of the Company, and the Member currently owns 100% of the membership interest in the Company. The Articles of Organization of the Company (the “Articles”), were filed with the Articles of Conversion of El Dorado Nitric Company with the Office of the Secretary of State of the State of Oklahoma on December 23, 2013, pursuant to the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”). The Member is entering into this Agreement to (a) govern the internal business and affairs of the Company, and (b) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was originally formed as an Oklahoma corporation known as “LSB Import Corp.” on March 25, 1983, and was converted to an Oklahoma limited liability company as of the Effective Time. The Member hereby acknowledges that on December 23, 2013, the Articles were duly filed with the Articles of Conversion with the Oklahoma Secretary of State to be effective as of the Effective Time. The filing of the Articles with the Articles of Conversion is hereby ratified by the Member.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

---

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

2

---

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a

 

3

---

member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4

---

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5

---

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the

 

6

---

funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the

 

7

---

Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8

---

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

9

---

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

10

---

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).19

 

		Office of the Secretary of State Corporations Section P.O. Box 13697 Austin, Texas 78711-3697

CERTIFICATE OF LIMITED PARTNERSHIP

 

1.		The name of the limited partnership is       El Dorado Nitrogen, L.P.
2.		The street address of its proposed registered office in Texas is (a P.O. Box is not sufficient)
		800 Brazos Street
		Austin, Texas 78701
		and the name of its proposed registered agent in Texas at such address is
		Capital Corporate Services, Inc.
3.		The address of the principal office in the United States where records of the partnership are to be kept or made available is
		16 South Pennsylvania Avenue, Oklahoma City, Oklahoma 73107
4.		The name, the mailing address, and the street address of the business or residence of each general partner is as follows:
		NAME		MAILING ADDRESS (include city, state, zip code)		STREET ADDRESS (include city, state, zip code)
		El Dorado Acid, L.L.C.		16 South Pennsylvania		16 South Pennsylvania
				Oklahoma City, OK 73107		Oklahoma City, OK 73107

 

Date Signed:   May 4, 2001						BY: El Dorado Acid, L.L.C.
						/s/ David R. Goss
						General Partner(s)
						V.P. of El Dorado Nitric Company, Manager

Exhibit 3(ii).19

CORRECTED AND RESTATED FIRST AMENDMENT

TO THE

AGREEMENT OF LIMITED PARTNERSHIP

OF

EL DORADO NITROGEN, L.P.

THIS CORRECTED AND RESTATED FIRST AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP OF EL DORADO NITROGEN, L.P. (the “Corrected Amendment”), dated as of June 14, 2013, but effective as of August 27, 2010 (the “Effective Date”), is made by and between El Dorado Acid, L.L.C., an Oklahoma limited liability company (“EDA”), and El Dorado Acid II, L.L.C., an Oklahoma limited liability company (“EDA-II”).

W I T N E S S E T H:

 

A.	The initial partners of El Dorado Nitrogen, L.P., a Texas limited partnership (the “Partnership”) were EDA, as the sole general partner, and El Dorado Nitric Company, an Oklahoma corporation (“EDNC”), as the sole limited partner;

 

B.	On May 1, 2001, EDA-II acquired from EDNC 100% of the limited partnership interests in the Partnership pursuant to an Assignment of Limited Partnership, and since that date EDA, as the sole general partner, and EDA-II, as the sole limited partner, have been the only partners of the Partnership;

 

C.	The Partnership is governed by the Agreement of Limited Partnership of El Dorado Nitrogen, L.P., dated May 1, 2001 (the “Agreement”);

 

D.

On August 27, 2010, EDA and EDA-II, intended to memorialize certain amendments to the Agreement by entering into a First Amendment to the Agreement of Limited Partnership of the Partnership (the “First Amendment”); however, the First Amendment incorrectly identified EDNC, rather than EDA-II, as the limited partner of the Partnership;

 

E.	EDA and EDA-II desire to correct and restate the First Amendment to properly reflect the parties to the First Amendment while ratifying the substance of the modifications to the Agreement set forth in the First Amendment.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. The recitals are incorporated into this Corrected Amendment by reference.

2. Amendments to the Agreement. As of the Effective Date, the Agreement is hereby amended as follows:

---

2.1

Section 2.3. Section 2.3 of the Agreement is deleted in its entirety and the following new Section 2.3 is substituted therefor:

“2.3 Purpose. The purpose of the Partnership is to engage in all activities, including those deemed necessary for the Partnership to operate, conduct business, maintain employees, obtain financing and function as an active partnership.”

 

2.2

Section 8.1.4. Section 8.1.4 of the Agreement is hereby deleted in its entirety.

 

2.3

Article 9. Article 9 of the Agreement is hereby deleted in its entirety.

3. As amended by this Corrected Amendment, all of the covenants, agreements, terms, provisions, and conditions of the Agreement continue in full force and effect and EDA-II hereby ratifies the amendments set forth above to be effective as of the Effective Date.

4. This instrument shall be binding upon and shall inure to the benefit of the parties hereto and their respective, permitted successors and assigns.

IN WITNESS WHEREOF, EDA and EDA-II have caused this Corrected Amendment to be executed as of the date first above written, but effective for all purposes as of the Effective Date.

 

GENERAL PARTNER:				EL DORADO ACID, L.L.C.,
				an Oklahoma limited liability company
				By:		/s/ Jack E. Golsen
				Name:		Jack E. Golsen
				Title:		CEO
LIMITED PARTNER:				EL DORADO ACID II, L.L.C.,
				an Oklahoma limited liability company
				By:		/s/ Jack E. Golsen
				Name:		Jack E. Golsen
				Title:		CEO

 

2

---

FIRST AMENDMENT

TO THE

AGREEMENT OF LIMITED PARTNERSHIP

OF

EL DORADO NITROGEN, L.P.

THIS FIRST AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP OF EL DORADO NITROGEN, L.P. (the “Amendment”), made and entered into as of the 27^th day of August, 2010, by and between El Dorado Acid, L.L.C., an Oklahoma limited liability company (“General Partner”), and El Dorado Nitric Company, an Oklahoma corporation (“Limited Partner”).

W I T N E S S E T H:

WHEREAS, the General Partner and the Limited Partner entered into an Agreement of Limited Partnership of El Dorado Nitrogen, L.P., dated May 1, 2001 (“Agreement”);

WHEREAS, due to the termination or expiration of certain agreements between the Limited Partner, El Dorado Nitrogen, L.P., a Texas limited partnership (“Partnership”) and Bayer Corporation, an Indiana corporation, the Partnership is no longer subject to certain restrictions and requirements limiting the authority of the Partnership to perform certain acts and activities, as also referenced in the Agreement;

WHEREAS, the General Partner and the Limited Partner desire to amend the Agreement to eliminate such restrictions and requirements in accordance with the terms hereof.

NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. The recitals are incorporated into this Amendment by reference.

2. All capitalized terms used herein shall have the same meaning as defined in the Agreement.

3. Section 2.3 of the Agreement is hereby deleted in its entirety and the following new Section 2.3 is substituted therefore:

2.3 Purpose. The purpose of the Partnership is to engage in all activities, including those deemed necessary for the Partnership to operate, conduct business, maintain employees, obtain financing and function as an active partnership.

4. Section 8.1.4 of the Agreement is hereby deleted in its entirety.

5. Article 9 of the Agreement is hereby deleted in its entirety.

---

6. As amended by this instrument, all of the covenants, agreements, terms, provisions and conditions of the Agreement continue in full force and effect, and both parties ratify and confirm all covenants, agreements, terms, provisions and conditions of the Agreement, as amended.

7. This instrument shall be binding upon and shall inure to the benefit of the parties hereto and their respective, permitted successors and assigns.

IN WITNESS WHEREOF, the Partners have executed this Amendment as of the date first above written.

 

GENERAL PARTNER:				EL DORADO ACID, L.L.C.,
				an Oklahoma limited liability company
				By:		/s/ Jack E. Golsen
				Name:
				Title:
LIMITED PARTNER:				EL DORADO NITRIC COMPANY,
				an Oklahoma corporation
				By:		/s/ Jack E. Golsen
				Name:
				Title:

 

2

---

AGREEMENT OF LIMITED PARTNERSHIP

OF

EL DORADO NITROGEN, L.P.

Dated as of May 1, 2001

---

ARTICLE 1.		DEFINITIONS; REFERENCES			1
1.1		Definitions			1
1.2		References			4
ARTICLE 2.		FORMATION, NAME, PURPOSE, REGISTERED OFFICE, REGISTERED AGENT AND TERM			4
2.1		Formation of the Limited Partnership			4
2.2		Partnership Name			4
2.3		Purpose			4
2.4		Principal and Registered Office			5
2.5		Term of the Partnership			5
ARTICLE 3.		CAPITAL CONTRIBUTIONS; PARTNER LOANS			5
3.1		Initial Capital Contribution of General Partner			5
3.2		Initial Capital Contribution of Limited Partners			5
3.3		Authorization of Partner Loans			5
3.4		Additional Capital Contributions			6
ARTICLE 4.		DISTRIBUTIONS AND ALLOCATIONS			6
4.1		Distribution of Net Cash Flow			6
4.2		Distribution of Net Proceeds of a Capital Transaction			6
4.3		Return of and Interest on Capital Contributions			6
4.4		Payments			6
4.5		In-Kind Distributions			7
4.6		Allocations of Net Profit and Net Loss			7
ARTICLE 5.		CAPITAL ACCOUNTS			7
5.1		Capital Accounts			7
5.2		Obligation to Repay or Restore			7
ARTICLE 6.		OPERATING EXPENSES AND REIMBURSEMENTS			7
ARTICLE 7.		ADMISSION OF PARTNERS; ASSIGNMENT OF INTERESTS			7
7.1		Admission of Additional Partners			7
7.2		Assignment or Transfer of Partnership Interests			7
ARTICLE 8.		MANAGEMENT DUTIES AND RESTRICTIONS			8
8.1		Powers of General Partner			8
8.2		Authority as to Third Persons			12
8.3		Compensation and Expenses of the General Partner			12
8.4		Covenants of the General Partner			12
8.5		Limitations on Authority			12
8.6		No Withdrawal From Partnership			13
8.7		Officers			13

 

-i-

---

ARTICLE 9.		CONDUCT OF BUSINESS			13
ARTICLE 10.		DISSOLUTION OF THE PARTNERSHIP			13
10.1		Dissolution			13
10.2		Continuation			14
10.3		Events Affecting a Limited Partner			14
10.4		Liquidation Procedures			14
10.5		Termination			15
10.6		No Petition for Dissolution			15
ARTICLE 11.		FINANCIAL ACCOUNTING AND REPORTS			16
11.1		Financial and Tax Accounting and Reports			16
11.2		Valuation			16
11.3		Supervision; Inspection of Books			16
11.4		Consent in Lieu of Meeting			16
11.5		Withholding			16
ARTICLE 12.		OTHER PROVISIONS			16
12.1		Execution and Filing of Documents			16
12.2		Other Instruments and Acts			17
12.3		Binding Agreement			17
12.4		Governing Law			17
12.5		Notices			17
12.6		Power of Attorney			17
12.7		Amendment			18
12.8		Entire Agreement			19
12.9		Titles; Subtitles			19
12.10		Exculpation			19
12.11		Indemnification of the General Partner			19
12.12		Limitation of Liability of the Limited Partners			19
12.13		Ambiguities			20
12.14		No Right to Partition			20

 

-ii-

---

AGREEMENT OF LIMITED PARTNERSHIP

OF

EL DORADO NITROGEN, L.P.

THIS AGREEMENT OF LIMITED PARTNERSHIP, made and entered into as of the 1st day of May, 2001, by and between El Dorado Acid, L.L.C., an Oklahoma limited liability company (the “General Partner”) and El Dorado Nitric Company, an Oklahoma corporation (the “Limited Partner”).

NOW, THEREFORE, the General Partner and the Limited Partner hereby agree to the terms and conditions of this Agreement of Limited Partnership as follows:

ARTICLE 1

DEFINITIONS; REFERENCES

 

1.1

Definitions. Unless the context requires otherwise, the following terms shall have the meanings specified in this Section 1.1:

 

1.1.1

Act: The Texas Revised Limited Partnership Act.

 

1.1.2

Additional Capital Contributions: The additional capital contributions described in Section 3.4.

 

1.1.3

Affiliate: With respect to any Person, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the Person in question. As used herein, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities or interests, by contract, or otherwise.

 

1.1.4

Agreement: This Agreement of Limited Partnership of El Dorado Nitrogen, L.P. and any amendments hereto.

 

1.1.5

Bankruptcy: A Person shall be deemed bankrupt if:

 

(a)

any proceeding is commenced against such Person as “debtor” for any relief under bankruptcy or insolvency laws, or laws relating to the relief of debtors, reorganizations, arrangements, compositions, or extensions and such proceeding is not dismissed within sixty (60) days after such proceeding has commenced, or

---

(b)

such Person commences any proceeding for relief under bankruptcy or insolvency laws or laws relating to the relief of debtors, reorganizations, arrangements, compositions, or extensions.

 

1.1.6

Capital Account: The capital account of a Partner established and maintained in accordance with Section 5.1.

 

1.1.7

Capital Contributions: With respect to any Partner, the amount of money actually contributed to the Partnership and the agreed value of any property (other than money) contributed to the Partnership with respect to the interest in the Partnership held by that Partner. Any reference in this Agreement to the Capital Contribution of a Partner will include a Capital Contribution made by any prior Partner with respect to the Partnership interest of the Partner.

 

1.1.8

Capital Transaction: The sale, exchange or other disposition of all or any portion of the property of the Partnership other than in the ordinary course of business of the Partnership. Capital Transactions include the financing or refinancing of Partnership property which creates excess funds not needed for Operations and which funds, in the opinion of the General Partner, are available for distribution to the Partners.

 

1.1.9

Code: The United States Internal Revenue Code of 1986, as now existing or hereafter amended. References to sections of the Code include successor provisions to those sections.

 

1.1.10

EDNC: El Dorado Nitric Company, an Oklahoma corporation.

 

1.1.11

Fiscal Year: The period commencing on January 1 of each year and ending on December 31 of such year.

 

1.1.12

General Partner: El Dorado Acid, L.L.C., an Oklahoma limited liability company.

 

1.1.13

Initial Capital Contributions: The Capital Contributions of the General Partner made pursuant to Section 3.1 and the Limited Partner made pursuant to Section 3.2.

 

1.1.14

Limited Partners: EDNC and each Person who is admitted to the Partnership as a Limited Partner and shown as a Limited Partner on the books and records of the Partnership.

 

2

---

1.1.15

Net Cash Flow: All cash funds from operations of the Partnership on hand or on deposit from time to time after (i) payment of all operating expenses payable as of the date in question, (ii) provision for payment of all outstanding and unpaid Partnership obligations due and payable as of the date in question or within sixty (60) days thereafter, and (iii) the establishment of such reasonable reserves as the General Partner, in its sole discretion, deems appropriate for the operating needs of the Partnership. “Net Cash Flow” shall not include or reflect any proceeds received or expenses incurred in connection with a Capital Transaction.

 

1.1.16

Net Proceeds of a Capital Transaction: The net proceeds received by the Partnership in connection with a Capital Transaction after payment of all costs and expenses incurred by the Partnership in connection with such Capital Transaction, including, without limitation, brokers’ commissions, loan fees, other closing costs, the cost of any alteration, improvement, restoration or repair of Partnership assets necessitated by or incurred in connection with such Capital Transaction, any reserves that the General Partner believes in good faith should be established and the payment of any loans owed by the Partnership to any of the Partners, plus any other loans that should be appropriately paid, as determined by the General Partner in its reasonable discretion.

 

1.1.17

Net Profit and Net Loss: For each Fiscal Year or other period, an amount equal to the Partnership’s income or loss for such Fiscal Year or period, determined in accordance with applicable accounting, statutory or regulatory standards.

 

1.1.18

Operations: All operations and activities of the Partnership other than those related to or consisting of a Capital Transaction.

 

1.1.19

Partner: A Partner of the Partnership, including the General Partner and the Limited Partner.

 

1.1.20

Partnership: El Dorado Nitrogen, L.P., a Texas limited partnership.

 

1.1.21

Partnership Certificate: The certificate of limited partnership of the Partnership filed in conformance with the Act.

 

1.1.22

Partnership Percentage or Percentages: The percentages of the Partners as follows:

 

3

---

General Partner:			1	%
Limited Partner:			99	%

 

1.1.23

Partnership Term: The period of duration of the Partnership, as set forth in Section 2.5.

 

1.1.24

Person: Any individual, partnership, corporation, trust or other legal entity.

 

1.1.25

Regulations: The Income Tax Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

 

1.1.26

Tax Matters Partner: The General Partner.

 

1.1.27

Transfer: Any sale, assignment, transfer, lease or other disposal of property, including without limitation, an interest in the Partnership.

 

1.2

References. Unless otherwise specified herein, references in this Agreement to “Section,” “Subsection,” “Article,” or “Exhibit” refer to the sections, subsections, articles, or exhibits in this Agreement.

ARTICLE 2

FORMATION, NAME, PURPOSE, REGISTERED OFFICE,

REGISTERED AGENT AND TERM

 

2.1

Formation of the Limited Partnership. The General Partner and the Limited Partner hereby form the Partnership as a limited partnership pursuant to and in accordance with the provisions of the Act.

 

2.2

Partnership Name. The business of the Partnership will be conducted under the name El Dorado Nitrogen, L.P. or such other name or names as the General Partner may determine.

 

2.3

Purpose. The purpose of the Partnership is to engage in (a) all activities reasonably related to (i) the production of nitric acid at a nitric acid production facility located in Baytown, Texas (the “Baytown Nitric Acid Plant”), (ii) the supply of nitric acid to Bayer Corporation, an Indiana corporation (“Bayer”), pursuant to various related agreements entered into between EDNC (to be assigned to the Partnership) and Bayer, and (iii) the sale of Nitric Acid produced at the Baytown Nitric Acid Plant to third parties; and (b) engage in all activities, including those deemed necessary for the Partnership to operate, conduct business, maintain employees, obtain financing and function as an active partnership, which are reasonably related to the construction, maintenance, operation and lease of the Baytown Nitric Acid Plant.

 

4

---

2.4

Principal and Registered Office. The principal office of the Partnership is at 16 South Pennsylvania, Oklahoma City, Oklahoma 73107. The General Partner has a business office at the Partnership’s principal office. The registered office of the Partnership is at 800 Brazos Street, Austin, Texas 78701, and Capitol Corporate Services, Inc. is the registered agent of the Partnership. The General Partner may change the principal or registered office or registered agent of the Partnership from time to time. The General Partner may establish, maintain and abandon one or more additional places of business for the Partnership.

 

2.5

Term of the Partnership. The term of the Partnership shall commence upon the filing and recording of the Partnership Certificate, and shall continue until terminated pursuant to the terms of this Agreement.

ARTICLE 3

CAPITAL CONTRIBUTIONS; PARTNER LOANS

 

3.1

Initial Capital Contribution of General Partner. The General Partner has contributed to the Partnership cash and other assets having a value of $10.00 which is equivalent to 1% of the total initial capital contributed to the Partnership. The General Partner shall not otherwise be required to make additional contributions to the Partnership except as specified in Section 3.4.

 

3.2

Initial Capital Contribution of Limited Partners. The Limited Partner has contributed to the Partnership cash and other assets having a value of $990.00, which is equivalent to 99% of the total initial capital contributed to the Partnership. The Limited Partner shall not be required to make additional contributions to the Partnership except as specified in Sections 3.4 and 5.2.

 

3.3

Authorization of Partner Loans. Subject to the limitations herein and to other agreements of the Partnership, the General Partner from time to time may cause the Partnership to borrow required amounts from one or more Partners or their Affiliates. Loans made by Partners or Affiliates under this Section 3.3 will not be considered a contribution to the capital of the Partnership, but will constitute indebtedness of the Partnership to the advancing Partner or Affiliate, payable from the first available net cash flow of the Partnership unless otherwise agreed by the lending Partner or Affiliate and, to the extent still unpaid, upon the termination and liquidation of the Partnership. Each loan by a Partner or Affiliate will bear simple interest compounded annually on the unpaid principal balance at the interest rate approved by the General Partner. The Partners will not be personally liable for loans made by Partners or Affiliates under this Section 3.3 or

be obligated to make contributions to the capital of the Partnership to repay those loans. Loans made by Partners or Affiliates under this Section 3.3 will be payable only from the assets of the Partnership.

 

5

---

3.4

Additional Capital Contributions. The Partners may make Additional Capital Contributions to the Partnership from time to time as may be required to meet the demands of the business of the Partnership. The Partners shall contribute such Additional Capital Contributions in proportion to the Partners’ Partnership Percentages.

ARTICLE 4

DISTRIBUTIONS AND ALLOCATIONS

 

4.1

Distribution of Net Cash Flow. Net Cash Flow shall be distributed among the Partners in accordance with their Partnership Percentages at such times and in such amounts as shall be determined by the General Partner.

 

4.2

Distribution of Net Proceeds of a Capital Transaction. Net Proceeds of a Capital Transaction shall be distributed among the Partners in accordance with their Partnership Percentages at such times and in such total amounts as shall be determined by the General Partner.

 

4.3

Return of and Interest on Capital Contributions. No Partner is entitled to the return of its Capital Contributions or its Capital Account or to be paid interest in respect of either its Capital Account or any Capital Contribution made by it to the Partnership except as provided in this Agreement.

 

4.4

Payments. The amount of any distribution or payment to a Partner whether pursuant to Article 4 or Article 9 hereof may be made in cash or in-kind or partially in cash and partially in-kind in the reasonable discretion of the General Partner or the liquidating trustees, as the case may be, less reasonable reserves established in the reasonable discretion of the General Partner or the liquidating trustees, as the case may be, for known or unknown liabilities of the Partnership.

 

4.5

In-Kind Distributions. All distributions of assets in-kind shall be made at a value determined in accordance with Section 11.2.

 

4.6

Allocations of Net Profit and Net Loss. To the extent required to be determined for financial accounting or state or local tax purposes, Net Profit and Net Loss shall be allocated among the Partners in accordance with their Partnership Percentages.

 

6

---

ARTICLE 5

CAPITAL ACCOUNTS

 

5.1

Capital Accounts. A separate capital account (“Capital Account”) shall be maintained for each Partner in accordance with Section 1.02(1) of the Act.

 

5.2

Obligation to Repay or Restore. Subject to the obligation of a Limited Partner to repay an impermissible distribution under Section 6.07(b) of the Act, the Limited Partner shall not be required to pay to the Partnership or to any other Partner any deficit or negative balance which may exist from time to time in its Capital Account.

ARTICLE 6

OPERATING EXPENSES AND REIMBURSEMENTS

The Partnership shall bear (or reimburse the General Partner for its payment of) all costs and expenses of every kind and description incurred in connection with the organization, operation, liquidation and dissolution of the Partnership including, but not limited to, travel expenses, fees of consultants, accountants, and attorneys, fees and expenses of the preparation of quarterly unaudited financial statements, the annual audit, if any, and tax returns of the Partnership, interest on indebtedness of the Partnership, and fees and expenses incurred in any litigation by or against the Partnership.

ARTICLE 7

ADMISSION OF PARTNERS; ASSIGNMENT OF INTERESTS

 

7.1

Admission of Additional Partners. Without the written consent of all Partners, no additional Partners shall be admitted to the Partnership.

 

7.2

Assignment or Transfer of Partnership Interests. Without the written consent of all Partners, no Partner shall sell, assign, pledge, mortgage, or otherwise dispose of or Transfer, in whole or in part, its Partnership interest or its share of the Partnership’s capital, assets or property or enter into any agreement, the result of which would be for another Person to become directly or indirectly interested in the Partnership. Notwithstanding the above, EDNC may assign or transfer its partnership interest in the Partnership to El Dorado Acid II, L.L.C., an Oklahoma limited liability company.

 

7

---

ARTICLE 8

MANAGEMENT DUTIES AND RESTRICTIONS

 

8.1

Powers of General Partner.

 

8.1.1

General Authority of the General Partner. The business and affairs of the Partnership will be managed exclusively by the General Partner. Except as otherwise expressly provided in this Agreement with respect to matters requiring the approval of the Limited Partner, or such other Person as provided in this Agreement, all determinations relating to the business and affairs of the Partnership will be made by the General Partner in its sole discretion and will not give rise to any right or claim by any Partner or the Partnership unless made in violation of an express provision of this Agreement. Except as otherwise provided herein, the General Partner will have complete authority to take, in its own name or in the name of the Partnership, any action that the General Partner determines to be appropriate under this Agreement or for the conduct of the business of the Partnership, including without limitation the actions specified in Section 8.1.2. All decisions and actions taken by the General Partner under the authority of this Section 8.1 will be binding upon all of the Partners and the Partnership.

 

8.1.2

Specific Authority of General Partner. Except as otherwise expressly set forth in this Agreement, the General Partner shall have all rights and powers of a general partner under the Act. Subject to the limitations contained in Section 8.1.3, the authority of the General Partner to manage the business and affairs of the Partnership will include complete authority:

 

(a)

To acquire, dispose of, lease or exchange assets of the Partnership;

 

(b)

To borrow money or otherwise create or assume indebtedness for the Partnership;

 

(c)

To create an encumbrance on all or any part of the Partnership’s assets in order to secure loans or advances to or assumed by the Partnership or any Person in which the Partnership has a direct or indirect interest, or any obligation of the Partnership or any Person in which the Partnership has a direct or indirect interest, or for any other Partnership purpose;

 

8

---

(d)

To execute and deliver for the Partnership agreements and other instruments (including, without limitation, instruments creating an encumbrance on Partnership assets) for any purpose authorized by clause (c), including without limitation agreements and instruments in connection with loans or the Transfer of assets of the Partnership;

 

(e)

To collect all income of the Partnership and to satisfy all obligations of the Partnership, including without limitation expenses of the General Partner relating to the Partnership described in Article 6 and Section 8.3 and the indemnification obligations arising under Section 12.11;

 

(f)

To prepare or cause to be prepared and file all tax returns for the Partnership (but not the tax returns or other reports of the Partners);

 

(g)

To make all tax elections for the Partnership, and to take all actions to implement or defend such elections;

 

(h)

To prosecute, defend and settle legal, arbitration or administrative proceedings on behalf of or against the Partnership;

 

(i)

To manage and maintain the assets of the Partnership or any Person in which the Partnership has a direct or indirect interest;

 

(j)

To establish separate bank accounts for the deposit of monies received on behalf of the Partnership and to disburse all funds on deposit on behalf of the Partnership in amounts and at times as required in connection with the business of the Partnership;

 

(k)

To procure and maintain insurance against risks and in amounts determined to be appropriate by the General Partner, including without limitation insurance under which the General Partner and its partners, agents and Affiliates are insureds;

 

(l)

To advance funds of the Partnership to any Person in which the Partnership has a direct or indirect interest;

 

(m)

To do or cause to be done any other act which the General Partner considers to be appropriate to carry out any of its powers or in furtherance of the purposes or character of the Partnership;

 

9

---

(n)

To establish such reserves from Partnership funds as the General Partner, in its sole discretion, may deem necessary or advisable for Partnership operations and for the payment of Partnership obligations;

 

(o)

To exercise all rights, powers, privileges and other incidents of ownership or possession with respect to any Partnership assets, including, without limitation, voting equity or debt securities held by the Partnership;

 

(p)

To consult with legal counsel, independent public accountants, real estate brokers and other consultants selected by the General Partner on behalf of the Partnership;

 

(q)

To take all action which may be necessary or appropriate for the continuation of the Partnership’s valid existence as a limited partnership under the laws of the State of Texas and of each other jurisdiction in which such existence is necessary to protect the limited liability of the Limited Partner or to enable the Partnership to conduct the business in which it is engaged;

 

(r)

To resolve, in its sole discretion, any ambiguity regarding the application of any provision of this Agreement in the manner it deems equitable, practicable and consistent with this Agreement and applicable law; or

 

(s)

To do such other acts as the General Partner may deem necessary or advisable, or as may be incidental to or necessary for the conduct of the business of the Partnership.

 

8.1.3

Actions Requiring Limited Partner Approval. Notwithstanding Section 8.1.2, the General Partner may not, without the written consent of the Limited Partner take or commit to take any of the following actions:

 

(a)

Sell all or substantially all of the Partnership’s assets not in the ordinary course of business, whether in one transaction or a series of related transactions;

 

10

---

(b)

Effect the reorganization, merger or consolidation of the Partnership with any other entity; or

 

(c)

Any act in contravention of this Agreement.

 

8.1.4

Additional Limitations on Authority of Partners. Notwithstanding Section 8.1.2 and 8.1.3, or any other provision contained in this Agreement, the Partners shall not, without first obtaining the unanimous approval of the Board of Directors of EDNC, including, without limitation, the independent director(s) selected pursuant to Article Thirteen (13) of the Certificate of Incorporation of EDNC:

 

(a)

intentionally take any action that is reasonably likely to cause the Partnership to become insolvent,

 

(b)

commence any case, proceeding or other action on behalf of the Partnership under any existing or future law of any jurisdiction (state or federal) relating to bankruptcy, insolvency, reorganization or relief of debtors,

 

(c)

consent to the institution of bankruptcy or insolvency proceedings against the Partnership,

 

(d)

file a petition or consent to a petition seeking reorganization, arrangement, adjustment, winding-up, dissolution, composition, liquidation or other relief on behalf of the Partnership’s debts under any federal or state law relating to bankruptcy,

 

(e)

seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar official for the Partnership or a substantial portion of the Partnership’s properties,

 

(f)

make any assignment for the benefit of the Partnership’s creditors,

 

(g)

dissolve, liquidate, consolidate, merge or sell all or substantially all of the assets of the Partnership,

 

(h)

amend Sections 2.3, 8.1.4 or Article 9 of this Agreement until one (1) year following the termination or expiration of the Services Agreement dated on or about June 27, 1997, the Baytown Nitric Acid Project and Supply Agreement, dated on or

 

11

---

about June 27, 1997, and the Ground Lease, dated on or about June 27, 1997 between EDNC (to be assigned to the Partnership) and Bayer in connection with the lease, construction and operation of the EDNC Baytown Plant, or

 

(i)

take any action in furtherance of any of the actions set forth in paragraphs (a) through (g) hereof,

 

8.2

Authority as to Third Persons. Notwithstanding Section 8.1.3, the signed statement of the General Partner reciting that it has the authority or necessary approval of the Limited Partner for any action, as to any third Person, will be conclusive evidence of the authority of the General Partner to take that action and of compliance with Section 8.1.3, if applicable. The Limited Partner will promptly execute instruments determined by the General Partner to be appropriate to evidence the authority of the General Partner to consummate any transaction permitted by this Agreement.

 

8.3

Compensation and Expenses of the General Partner. The General Partner will not receive any compensation from the Partnership for serving as General Partner, but all expenses incurred by the General Partner in connection with its service as General Partner (including without limitation charges for legal, accounting, data processing, administrative, executive, tax and other services rendered) will be paid or promptly reimbursed by the Partnership. Nothing contained in this Section 8 is intended to affect the distributions to the General Partner or the amounts that may be payable to the General Partner by reason of its interest in the Partnership.

 

8.4

Covenants of the General Partner. The General Partner shall devote such time, effort, and attention as may be reasonably necessary, advisable, or appropriate to manage and direct the operations, business and affairs of the Partnership.

 

8.5

Limitations on Authority. The authority of the General Partner over the conduct of the operations, business, and affairs of the Partnership shall be subject only to the Act and such further limitations as are expressly stated in this Agreement.

 

8.6

No Withdrawal From Partnership. Except as contemplated by this Agreement, no Partner may withdraw from the Partnership at any time.

 

8.7

Officers. The General Partner may, from time to time, designate one or more individuals to be an officer of the Partnership. Any officer so designated shall have such authority and perform such duties as the General Partner may, from time to time, delegate to such officer. Each officer shall hold office until the earlier to occur of his or her death, disability, resignation, removal by the General

 

12

---

Partner or replacement by the General Partner. The salaries or other compensation, if any, of any officer of the Partnership shall be fixed from time to time by the General Partner. Subject to any contractual requirements, any officer may resign as such at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or if no time be specified, at the time of its receipt by the General Partner. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation. Any officer may be removed as such, either with or without cause, by the General Partner whenever in its judgment the best interests of the Partnership will be served thereby. Designation of an officer shall not of itself create contract rights. Any vacancy occurring in any officer position of the Partnership may be filled by the General Partner.

ARTICLE 9

CONDUCT OF BUSINESS

The Partnership shall (a) hold itself out as a separate entity and conduct its business in its own name, (b) not commingle its assets with those of any other entity, (c) pay its own liabilities out of its own funds and pay the salaries of its own employees with checks that bear the name or any logo of the Partnership, with the exception that the Partnership may utilize the services of a payroll master and accounting provider that is an Affiliate of the partnership in connection therewith, (d) observe all partnership formalities, (e) not guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satisfy the obligations of others, with the exception that the Partnership may provide guaranties for the debts of LSB Industries, Inc. (“LSB”), a Delaware corporation, or any Affiliate of LSB, up to the amount borrowed by the Partnership from such Affiliate or LSB, and (f) not pledge its assets for the benefit of any other entity.

ARTICLE 10

DISSOLUTION OF THE PARTNERSHIP

 

10.1

Dissolution. The Partnership shall be dissolved upon the happening of any of the following events:

 

10.1.1

with the prior consent of the General Partner and the Limited Partner;

 

10.1.2

an “Event of Withdrawal,” as defined in the Act, of the General Partner; and

 

10.1.3

the entry of a decree of judicial dissolution under Section 8.02 of the Act.

 

13

---

10.2

Continuation. Upon the occurrence of an event identified in Section 10.1.2, the business of the Partnership will be continued if within 90 calendar days the Limited Partner elects by written action to continue the business of the Partnership and designate one or more Persons to be a General Partner of the Partnership. If the Limited Partner fails to continue the Partnership’s business as provided in this Section 10.2, the Partnership will be liquidated under Section 10.4.

 

10.3

Events Affecting a Limited Partner. The Bankruptcy, liquidation, dissolution, reorganization, merger, sale of substantially all the stock or assets of, or other change in the ownership or nature of the Limited Partner shall not dissolve the Partnership.

 

10.4

Liquidation Procedures.

 

10.4.1

Upon dissolution of the Partnership the General Partner or, if there is no General Partner, such Person or Persons as the Limited Partner shall designate as liquidating trustees shall commence immediately to wind up the affairs of the Partnership. The General Partner or such liquidating trustees shall use their best judgment as to when to dispose of the Partnership’s assets or to make distributions in-kind in order to maximize the return to the Partners from such assets.

 

10.4.2

The assets of the Partnership remaining after payment of the costs and expenses of winding up shall be applied in the following priority:

 

(a)

To payment of the costs and expenses of the winding up, liquidation and termination of the Partnership;

 

(b)

To the creditors of the Partnership, other than Partners, all amounts due them from the Partnership in the order of priority established by law;

 

(c)

To the Partners, all amounts due them in repayment of any loans to the Partnership pursuant to Section 3.3;

 

(d)

To the establishment of any reserves deemed appropriate by the General Partner or liquidating trustees for any liabilities or obligations of the Partnership, which reserves will be held for the purpose of paying liabilities or obligations and, at the expiration of a period the General Partner or liquidating trustees deems appropriate, will be distributed in the manner provided in Section 10.4.2(e); and,

 

14

---

(e)

To the Partners in accordance with their Partnership Percentages.

 

If the General Partner or the liquidating trustees, in their sole discretion, deem it not feasible or desirable to liquidate to each Partner its allocable share of each asset to be distributed in-kind, the General Partner or the liquidating trustees may allocate and distribute specific assets to one or more Partners as the General Partner or the liquidating trustees shall reasonably determine to be fair and equitable, taking into consideration, among other things, the value of the assets, the indebtedness secured by the assets and the tax consequences of the proposed distribution upon each of the Partners. Any distributions in-kind shall be subject to such conditions relating to the disposition and management thereof as the General Partner or the liquidating trustees deem reasonable and equitable.

 

10.5

Termination. The Partnership shall terminate when all property owned by the Partnership has been disposed of, and any proceeds from the sale or other disposition of all of the Partnership property, after payment of or provision for all liabilities to creditors of the Partnership, has been distributed to the Partners.

 

10.6

No Petition for Dissolution. The Partners agree that irreparable damage would be done to the goodwill and reputation of the Partnership if any Partner should bring an action in any court to dissolve the Partnership and to have a liquidator or receiver for the Partnership appointed. Care has been taken in this Agreement to provide what the parties feel is fair and just payment in liquidation of the interest of all Partners. Accordingly, each Partner hereby waives and renounces its right to file or pursue any such petition for dissolution of the Partnership or the partition of any Partnership property, or to seek the appointment by any court of a liquidator or receiver for the Partnership.

ARTICLE 11

FINANCIAL ACCOUNTING AND REPORTS

 

11.1

Financial and Tax Accounting and Reports. The General Partner shall not cause the Partnership to elect to be classified as an association taxable as a corporation for federal income tax purposes. The books and records of the Partnership shall be kept in accordance with the accrual method of accounting.

 

11.2

Valuation. The valuation of the assets of the Partnership for the purpose of valuing distributions in-kind made pursuant to Section 4.5 or Section 10.4 of this Agreement and for any other purpose shall be the fair market value as determined by the General Partner in good faith, and such determination will be binding on the Partners.

 

15

---

11.3

Supervision; Inspection of Books. Proper and complete books of account of the business of the Partnership shall be kept under the supervision of the General Partner at the principal place of business of the Partnership. Such books shall be open to inspection by the Limited Partner, or its accredited representatives, at any reasonable time during normal business hours.

 

11.4

Consent in Lieu of Meeting. Any action which may be taken by the Partners at a meeting may be effected through the execution of written consents by the requisite Partnership Percentage of the Partners.

 

11.5

Withholding. Notwithstanding any provision in this Agreement to the contrary, the General Partner may withhold from any distribution or amount due to the Limited Partner any amounts required to be withheld pursuant to any applicable federal, state, or local tax requirements, with such withheld amount treated as if it were distributed to the Limited Partner. The determination of the General Partner as to the necessity of such withholding shall be binding upon the Limited Partner.

ARTICLE 12

OTHER PROVISIONS

 

12.1

Execution and Filing of Documents. The General Partner and the Limited Partner (or the General Partner as the Limited Partner’s attorney-in-fact) shall execute and file such certificates and other documents as may be required by the Act and other applicable laws. The General Partner shall cause the Partnership to be qualified, formed, reformed or registered under the limited partnership laws, assumed or fictitious name statutes or similar laws in any jurisdiction in which the Partnership owns property or transacts business if such qualification, formation, reformation or registration is necessary in order to protect the limited liability of the Limited Partner or to permit the Partnership to lawfully own property or transact business as a limited partnership. The General Partner shall execute, file and publish all such certificates, notices, statements or other instruments appropriate to conduct the business of the Partnership and to maintain the limited liability of the Limited Partner.

 

12.2

Other Instruments and Acts. The Partners agree to execute any other instruments or perform any other acts that are or may be necessary to effectuate and carry on the Partnership created by this Agreement.

 

16

---

12.3

Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the permitted transferees, successors, assigns, and legal representatives of the Partners.

 

12.4

Governing Law. This Agreement shall be governed by and construed under the laws of the State of Texas, without giving effect to the principles of conflict of laws.

 

12.5

Notices. Any notice or other communication that one Partner desires to give to another Partner or the Partnership or that the Partnership desires to give to a Partner shall be in writing, and shall be deemed effectively given upon (i) personal delivery, (ii) transmission by facsimile or (iii) the third business day following deposit in any United States mail box, by registered or certified mail, postage prepaid, addressed, in the case of a Partner, to the Partner at the address shown on the books and records of the Partnership or at such other address as a Partner may designate by fifteen (15) days’ advance notice to the other Partners and, in the case of the Partnership, to its principal office designated in Section 2.4.

 

12.6

Power of Attorney. The Limited Partner appoints the General Partner its attorney-in-fact, with full power of substitution and re-substitution, to execute in the Partner’s name and deliver:

 

(a)

A Partnership Certificate and any amendments to the Partnership Certificate that the General Partner deems appropriate;

 

(b)

Any instrument that the General Partner deems appropriate in order to qualify the Partnership to do business in any jurisdiction and any other instrument relating to the qualification or registration of the Partnership or the use of an assumed or fictitious name that the General Partner deems appropriate;

 

(c)

All certificates and other instruments that may be appropriate to effect the dissolution and termination of the Partnership under Article 10;

 

(d)

All reports, forms and schedules that the General Partner determines appropriate to file with any governmental body in connection with any Partnership activity;

 

17

---

(e)

Any amendment to this Agreement appropriate to reflect the Transfer of a Partnership interest permitted by this Agreement, or the admission to, or withdrawal from, the Partnership of a Partner permitted by this Agreement, the conversion of a General Partner interest into a Limited Partner interest as provided in this Agreement or any Capital Contribution permitted by this Agreement; and,

 

(f)

Any amendment to this Agreement authorized under Section 12.7.

 

The power of attorney granted under this Section 12.6 is coupled with an interest and is irrevocable and will survive the death, dissolution, bankruptcy and withdrawal from the Partnership of any Partner or the Transfer of its Partnership interest.

 

12.7

Amendment.

 

12.7.1

Except for such amendments as result from the operation of the various provisions of this Agreement, this Agreement may be amended only with the written consent of the Limited Partners and the General Partner.

 

12.7.2

The General Partner, acting alone, may make ministerial changes in the Partnership Agreement for the purpose of correcting errors and inconsistencies and to comply with federal, state and local rules, regulations and laws, provided that the liability of the Limited Partner for Partnership debts shall not be increased by such amendment nor shall the right of the Limited Partner to Partnership allocations or distributions be adversely affected thereby.

 

12.8

Entire Agreement. This Agreement shall constitute the entire agreement of the Partners and supersede all prior agreements between the Partners with respect to the Partnership.

 

12.9

Titles; Subtitles. The titles and subtitles used in this Agreement are used for convenience only and shall not be considered in the interpretation of this Agreement.

 

12.10

Exculpation. Neither the General Partner, nor any of its officers, directors, employees, agents, or Affiliates, shall be liable to the Limited Partner or the Partnership for any action taken or failure to act on behalf of the Partnership within the scope of authority conferred on the General Partner by this Agreement,

 

18

---

or by law, or done in reliance in good faith on the opinion of legal counsel, except in the case of (i) its willful breach of a material provision of the Act or this Agreement; (ii) the breach of its fiduciary responsibilities to the Partnership or the Limited Partner; or, (iii) its gross negligence in connection with the business and affairs of the Partnership.

 

12.11

Indemnification of the General Partner. The Partnership, to the extent of its assets legally available for that purpose, will indemnify and hold harmless the General Partner and any partner, shareholder, director, officer, agent, Affiliate and professional or other advisor of the General Partner (collectively, the “Indemnified Persons”), from and against any and all loss, damage, expense (including without limitation reasonable fees and expenses of attorneys and other advisors and any court costs incurred by any Indemnified Person) or liability by reason of anything any Indemnified Person does or refrains from doing for, or in connection with the business or affairs of, the Partnership, except to the extent that the loss, damage, expense or liability results from (a) the Indemnified Person’s gross negligence, willful misconduct or knowing violation of law, or (b) the Indemnified Person’s breach of any fiduciary responsibilities to the Partnership or the Limited Partner. These indemnification rights are in addition to any rights the Indemnified Persons may have against third parties.

 

Notwithstanding anything in this Agreement to the contrary, no Partner shall be obligated to contribute any amount to the Partnership in order to satisfy the Partnership’s indemnification obligations under this Section 12.11, such obligations being limited at all times to the assets of the Partnership.

 

12.12

Limitation of Liability of the Limited Partners. No Limited Partner shall be bound by, or be personally liable for, the expenses, liabilities, or obligations of the Partnership in excess of its Capital Contributions to the Partnership plus such additional amounts determined pursuant to Section 5.2.

 

12.13

Ambiguities. The General Partner shall have full power and authority to resolve questions of interpretation and construction arising under this Agreement, and its resolution of such ambiguities or questions shall be final and binding on the Partnership and all of its Partners and their permitted transferees, successors, assigns and legal representatives.

 

12.14

No Right to Partition. Each Partner hereby irrevocably waives any and all rights that it may have to maintain or institute an action for partition of the Partnership assets.

 

19

---

IN WITNESS WHEREOF, the Partners have executed this Agreement as of the date first above written.

 

GENERAL PARTNER:				EL DORADO ACID, L.L.C.,
				an Oklahoma limited liability company
				By:		/s/ David G. Goss
				Name:		David R. Goss
				Title:		Vice President
LIMITED PARTNER:				EL DORADO NITRIC COMPANY,
				an Oklahoma corporation
				By:		/s/ Tony M. Shelby
				Name:		Tony M. Shelby
				Title:		Vice President

 

20

Exhibit 3(i).20

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

INTERNATIONAL ENVIRONMENTAL CORPORATION

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

International Environmental Corporation, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.

The Corporation’s original Articles of Incorporation were filed under the name International Air Conditioning Corporation with the Secretary of State of the State of Oklahoma on December 29, 1965, and amended on (i) March 6, 1967 pursuant to a First Amendment to Articles of Incorporation of the Corporation, (ii) June 17, 1971 pursuant to a Second Amendment to the Articles of Incorporation of the Corporation, (iii) July 30, 1971 pursuant to a Third Amendment to the Articles of Incorporation of the Corporation, and (iv) January 3, 1979 pursuant to the Articles of Merger of the Corporation and International Environmental Corporation.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is International Environmental Corporation (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

---

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
300		$	10.00			$	3,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

 

2

---

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, International Environmental Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its Asst. Secretary this 8th day of December, 2000.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

 

4

Exhibit 3(ii).20

AMENDED AND RESTATED BYLAWS

OF

INTERNATIONAL ENVIRONMENTAL CORPORATION

(an Oklahoma corporation)

These Amended and Restated Bylaws of International Environmental Corporation (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on December 31, 1965, as amended to read as follows:

ARTICLE I

NAME

The name of the Corporation is International Environmental Corporation (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 5000 S.W. 7th Street, Oklahoma City, Oklahoma 73128. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long

 

3

---

as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

 

5

---

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

 

6

---

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

 

7

---

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

 

8

---

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

 

9

---

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the

 

10

---

approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by law;

 

11

---

(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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

 

12

---

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

 

13

---

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of

 

15

---

other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction

 

17

---

of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

These Amended and Restated Bylaws of International Environmental Corporation set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Amended and Restated Bylaws of International Environmental Corporation were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

 

19

Exhibit 3(i).21

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

KOAX CORP.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

Koax Corp., a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Articles of Incorporation were filed under the name Koax Corp. with the Secretary of State of the State of Oklahoma on November 14, 1985.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is Koax Corp. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

---

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
50		$	10.00			$	500.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of

 

2

---

shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

IN WITNESS WHEREOF, Koax Corp. has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its             Secretary this 8th day of December, 2000.

 

3

---

 

ATTEST:

/s/ David M. Shear

Secretary

 

4

Exhibit 3(ii).21

AMENDED AND RESTATED BYLAWS

OF

KOAX CORP.

(an Oklahoma corporation)

These Amended and Restated Bylaws of Koax Corp. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on November 14, 1985 to read as follows:

ARTICLE I

NAME

The name of the Corporation is Koax Corp. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 510 North Indiana, Oklahoma City, Oklahoma 73106. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided

 

3

---

in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

 

5

---

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

 

6

---

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

 

7

---

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

 

8

---

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

 

9

---

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the

 

10

---

approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by law;

 

11

---

(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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

 

12

---

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

 

13

---

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of

 

15

---

other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction

 

17

---

of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

These Amended and Restated Bylaws of Koax Corp. set forth the entire Bylaws of the Corporation and are effective as of the 5th day of December, 2000, the date that such Amended and Restated Bylaws of Koax Corp. were adopted and approved by the directors of the Corporation.

Dated: December 5, 2000

 

 

ATTEST:

/s/ David M. Shear

Secretary

[Corporate Seal]

 

19

Exhibit 3(i).22

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “LSB Capital L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is: 16 South Pennsylvania Avenue Oklahoma City, Oklahoma 73107

 

3.	The e-mail address of the primary contact for the registered business is: kcarver@lsbindustries.com

 

4.	The name and street address of the resident agent in the state of Oklahoma is: David M. Shear 16 South Pennsylvania Avenue Oklahoma City, Oklahoma 73107

 

5.	The term of existence is perpetual.

 

6.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 29th day of April, 2013.

 

Exhibit 3(ii).22

OPERATING AGREEMENT

OF

LSB CAPITAL L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 29th day of April, 2013, by LSB CHEMICAL CORP., an Oklahoma corporation (“LSB Chemical” or the “Member”).

1. Background. LSB Capital L.L.C. was organized as an Oklahoma limited liability company (the “Company”) on April 29, 2013, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Oklahoma Secretary of State of, pursuant to the Oklahoma Limited Liability Company Act (as amended from time to time, the “Act”). LSB Chemical is entering into this Agreement to establish the terms and conditions governing the business and operation of the Company as a limited liability company pursuant to, and in accordance with, the provisions of the Act.

2. Definitions. For purposes of this Agreement, initially capitalized terms used herein will have the following meanings:

“Act” is defined in paragraph 1 of this Agreement.

“Affiliate” means, when used with respect to any Person, any other Person controlling or controlled by, or under common control with such Person. For purposes of this definition, the term “control,” with respect to any Person, means exclusive possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or of other beneficial interests or by contract or otherwise.

“Agreement” is defined in the preamble to this Agreement.

“Company” is defined in paragraph 1 of this Agreement.

“Member” is LSB Chemical Corp., as defined in the preamble to this Agreement.

“Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

3. Formation, Duration, and Purpose.

 

3.1

Formation. The Member hereby acknowledges that on April 29, 2013, the Articles were duly filed with the Oklahoma Secretary of State. The filing of the Articles is hereby ratified by the Member.

 

3.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

---

3.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

3.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

3.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

4. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

5. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

5.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

5.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

2

---

5.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

5.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

5.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

5.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

5.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

5.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members thereof will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

3

---

5.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

5.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 5.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

5.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 5.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

5.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4

---

5.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such other committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such other committee.

 

5.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

6.

Officers.

 

6.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President), all as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers” of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, has the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers”, “Assistant Controllers”, “Assistant Secretaries” and “Assistant Treasurers.” An individual may hold more than one office.

 

6.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5

---

6.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 6.12) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

6.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

6.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

6.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

6.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

6.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6

---

6.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

6.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

6.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

6.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

7. Exculpation and Indemnification.

 

7.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person who has an interest in or claim against the Company

 

7

---

or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s (a) breach of the manager’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction form which the manager derived an improper personal benefit.

 

7.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 7 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

8. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

8.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

8.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8

---

8.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8.4

Non-exclusive. The rights and authority conferred in this paragraph 8 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

8.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 8, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 8 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

8.6

Survival. The foregoing provisions of this paragraph 8 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

9. Rights of the Member. The Member and any of its Affiliates may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

10. Contributions.

 

10.1

Capital Contributions. The Member will contribute to the Company such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

10.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

10.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

 

9

---

11. Profits and Losses; Books and Records.

 

11.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U. S. Treas. Reg. § 301.7701-3.

 

11.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

12. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

13. General Provisions.

 

13.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

13.2

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company.

 

13.3

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

13.4

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement, and all references hereto to paragraphs or subdivisions thereof refer to the corresponding paragraphs or subdivisions thereof of this Agreement, unless specific reference is made to such paragraphs or subdivisions of another document or instrument. Any use of the word “including” herein will be deemed to mean “including without limitation,” unless the context otherwise requires.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).23

ARTICLES OF CONVERSION

of

LSB CHEMICAL CORP.,

an Oklahoma corporation

The undersigned, for the purpose of converting LSB Chemical Corp., an Oklahoma corporation, to LSB Chemical L.L.C., an Oklahoma limited liability company, pursuant to Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act, does hereby execute the following Articles of Conversion (the “Articles”):

1. Corporation Name, Date, and Jurisdiction. LSB Chemical Corp. was first formed as an Oklahoma corporation on July 20, 1983.

2. Name of Limited Liability Company. The name of the limited liability company as set forth in its Articles of Organization attached hereto is “LSB Chemical L.L.C.”

3. Effective Date and Time. These Articles shall be effective at 11:57 p.m. on December 31, 2013.

4. Approval. The conversion and the attached Articles of Organization of LSB Chemical L.L.C. have been approved in accordance with the provisions of Section 1090.5 of the Oklahoma General Corporation Act and Section 2054.1 of the Oklahoma Limited Liability Company Act.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

 

Attest:

/s/ David M. Shear

David M. Shear, Assistant Secretary

---

ARTICLES OF ORGANIZATION

of

LSB CHEMICAL L.L.C.,

an Oklahoma limited liability company

The undersigned, as sole organizer of a limited liability company, does hereby execute and adopt the following Articles of Organization of LSB CHEMICAL L.L.C., pursuant to Section 2004 of the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”):

1. Name. The name of the limited liability company (the “Company”) is:

LSB Chemical L.L.C.

2. Term. The term of existence of the Company is perpetual.

3. Principal Location. The address of the Company’s principal place of business in the State of Oklahoma is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

4. Resident Agent and Office. The name and address of the Company’s resident agent in the State of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

5. Limited Liability. To the maximum extent permitted by the Act, no member shall be personally liable to the Company, its creditors, or any member and no manager shall be personally liable to the Company, its creditors, or any member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a manager shall not be limited or eliminated for (a) breach of the manager’s duty of loyalty to the Company or its members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager derived an improper personal benefit.

6. Effective Date and Time. These Articles shall be effective at 11:57 p.m. on December 31, 2013.

THE UNDERSIGNED has executed these Articles of Organization this 20^th day of December, 2013.

 

Exhibit 3(ii).23

OPERATING AGREEMENT

OF

LSB CHEMICAL L.L.C.

THIS OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by CONSOLIDATED INDUSTRIES L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, (a) the Company converted from an Oklahoma corporation known as “LSB Chemical Corp.” to an Oklahoma limited liability company effective as of 11:57 p.m. on December 31, 2013 (the “Effective Time”) and (b) the Member converted from an Oklahoma corporation known as “Consolidated Industries Corp.” to an Oklahoma limited liability company effective as of 11:58 p.m. on December 31, 2013. Immediately prior to the Company’s conversion, the Member owned 100% of the capital stock of the Company, and the Member currently owns 100% of the membership interest in the Company. The Articles of Organization of the Company (the “Articles”), were filed with the Articles of Conversion of LSB Chemical Corp. with the Office of the Secretary of State of the State of Oklahoma on December 23, 2013, pursuant to the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”). The Member is entering into this Agreement to (a) govern the internal business and affairs of the Company, and (b) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was originally formed as an Oklahoma corporation known as “LSB Chemical Corp.” on July 20, 1983, and was converted to an Oklahoma limited liability company as of the Effective Time. The Member hereby acknowledges that on December 23, 2013, the Articles were duly filed with the Articles of Conversion with the Oklahoma Secretary of State to be effective as of the Effective Time. The filing of the Articles with the Articles of Conversion is hereby ratified by the Member.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

---

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

2

---

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a

 

3

---

member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4

---

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5

---

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the

 

6

---

funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the

 

7

---

Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

8

---

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

9

---

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

10

---

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).24

 

FEE: $25.00				Change of Registered Agent and Location of Registered Office of LSB EUROPA LIMITED an Oklahoma Corporation				F I L E D   NOV. 3, 1995   OKLAHOMA SECRETARY OF STATE   FOR OFFICE USE ONLY

 

TO:	THE OKLAHOMA SECRETARY OF STATE

101 State Capitol

Oklahoma City, OK 73105

LSB Europa Limited, an Oklahoma corporation (the “Corporation”), for the purpose of changing its registered agent and registered office pursuant to Section 1023 of the Oklahoma General Corporation Act, hereby certifies:

That the location of the registered office of the Corporation is:

 

16 South Pennsylvania Avenue		Oklahoma City		Oklahoma		73107
Street Address		City		County		Zip Code

That the name of the registered agent at such address upon whom process against the Corporation may be served is:

 

David M. Shear

IN WITNESS WHEREOF, said Corporation has caused this certificate to be signed by its Vice President and attested by its Asst. Secretary, this 26^th day of September, 1995.

LSB EUROPA LIMITED

 

/s/ David R. Goss				David R. Goss
by                                                                  Vice President				(Please print name)

 

/s/ David M. Shear				David M. Shear
by                                                                  Asst. President				(Please print name)

---

FIRST AMENDMENT TO

ARTICLES OF INCORPORATION OF

LSB - ITALIA LIMITED

 

 

We, the undersigned, do hereby certify that we hold the offices of Vice President and Secretary, respectively, of LSB—Italia Limited, an Oklahoma corporation; that we are the persons legally competent to sign, acknowledge and execute an amendment to its Articles of Incorporation pursuant to the provisions of The Business Corporation Act of the State of Oklahoma, and we do hereby affirm that the following amendment was adopted in the manner pre-scribed in said Act at a meeting of the shareholders held on October 25, 1974.

Such amendment is as follows:

“The name of the Corporation shall hereafter be:

LSB - EUROPA LIMITED.”

We do further certify that all other provisions of the Articles of Incorporation as filed with the Secretary of State of the State of Oklahoma on September 26, 1974, subject to this amendment, remain in full force and effect.

Signed at Oklahoma City, Oklahoma this 13th day of November, 1974.

 

 

ATTEST:

/s/ Irwin H. Steinhorn

Secretary

---

STATE OF OKLAHOMA             )

                                                         )         SS.

COUNTY OF OKLAHOMA         )

Before me, the undersigned Notary Public in and for said County and State, this 13th day of November, 1974, personally appeared Donald C. Edelson, to me known to be the identical person who subscribed the name of LSB—Europa Limited, to the foregoing instrument as its President and acknowledged to me that he executed the same as his free and voluntary act and deed and as the free and voluntary act and deed of such corporation, for the uses and purposes therein set forth.

Given under my hand and seal of office the day and year last above written.

 

My commission expires:

February 14, 1976

---

ARTICLES OF INCORPORATION OF

OF

LSB - ITALIA LIMITED

TO THE SECRETARY OF STATE

STATE OF OKLAHOMA:

We, the undersigned incorporators, whose names and addresses are shown below, being persons legally competent to enter into contracts, for the purpose of forming a corporation under “The Business Corporation Act” of the State of Oklahoma, do hereby adopt the following Articles of Incorporation:

1. The name of this Corporation is:

LSB - ITALIA LIMITED

2. The address of its registered office in the State of Oklahoma is 16 South Pennsylvania, Oklahoma City, County of Oklahoma, and the name of its registered agent is Irwin H. Steinhorn, 16 South Pennsylvania, Oklahoma City, Oklahoma.

3. The duration of the Corporation is fifty (50) years.

4. The objects and purposes for which the Corporation are organized are:

(a) To carry on the business of distributors, wholesalers or agents, to buy, sell and deal in, at wholesale or retail, merchandise, goods, wares and commodities of every sort, kind, or description, and to carry on any other business, whether manufacturing or otherwise, which can be conveniently carried on with any of the objects of this Corporation.

(b) To engage in the transportation of property by motor vehicle; to engage in the general transportation and communication business and to buy, sell, lease, own or operate other motor carriers, broadcasting stations and facilities, to buy, sell, lease, own or operate terminals and warehouses and engage in warehousing business; to buy, sell, deal and engage in the sale of motor vehicles and parts.

---

(c) To make and purchase materials for the construction of buildings; to erect buildings; to own, manage, operate, lease and sell buildings; to conduct and carry on the business of builders for the purpose of building, repairing or doing any other work in connection with any and all classes of buildings and improvements, including the locating, laying out and construction of roads, avenues, sewers, bridges, wells and generally all classes of buildings, erection and works, both public and private, or integral parts thereof.

(d) To purchase, take, own, hold, deal in, mortgage or otherwise encumber and to lease, sell, exchange, convey, transfer or in any manner dispose of real property; to acquire lands for the purpose of prospecting for and obtaining oil, gas and other minerals, to drill oil wells, and to acquire drilling rigs or other machinery necessary to such purposes; and to produce and market oil and other minerals.

(e) To enter into partnership or other arrangement for sharing profits or cooperate with any entity carrying on any business capable of being conducted so as to benefit this Corporation; to acquire the assets and assume the liabilities of any entity; to pay for the same in cash, stock or otherwise; to hold or dispose of the property so purchased; and to conduct any business so acquired.

(f) To borrow and lend money to negotiate loans; to draw, accept and endorse notes, accounts receivable, bonds, stocks, debentures and other securities; to subscribe for, acquire, hold and dispose of shares of stock, bonds, accounts, and other securities of any government, person or corporation.

(g) To purchase or otherwise acquire, apply for, register, hold, use, assign, sell or in any manner dispose of and to grant licenses, franchises, or other rights in, and in any manner deal with patents, inventions, improvements, processes, formulas, trademarks, trade names, copyrights or otherwise.

 

- 2 -

---

(h) To have one or more offices and to conduct any or all of its operations and business and to promote its objects within or without the State of Oklahoma, without restriction as to place or amount.

(i) To do any or all of the things herein set forth as principal, agent, contractor, trustee or otherwise, alone or jointly, with natural persons, or any legal entity.

(j) The objects and purposes specified herein shall be regarded as independent objects and purposes and, except where otherwise expressed, shall be in no way limited nor restricted by reference to or inference from the terms of any other clause or paragraph of these Articles of Incorporation.

The foregoing shall be construed both as objects and powers and the enumeration thereof shall not be held to limit or restrict in any manner the general powers conferred on this Corporation by the laws of the State of Oklahoma.

5. All of the shares to be issued by the Corporation shall be of one class, that is Voting Common Stock, of a par value of $10.00 per share. The aggregate number of shares which the Corporation shall have the authority to allot is 100 shares.

6. The amount of stated capital with which this Corporation will begin business is Five Hundred ($500.00) Dollars, which has been fully paid in.

7. The number of shares to be allotted by this Corporation before it begins business, and the consideration received by the Corporation therefor, are:

 

NUMBER OF SHARES		CONSIDERATION RECEIVED
50		$	500.00

8. The number of directors of this Corporation shall be as specified in the Bylaws, and such number may from time to time be increased or decreased under the Bylaws or any amendment, or change thereof, provided the number of directors of the Corporation shall not be less than three. The number of directors to be elected at the

 

- 3 -

---

first meeting of the shareholders is three. Directors and officers need not be shareholders. In case of vacancies in the Board of Directors, a majority of the remaining members of the Board, even though less than a quorum, may elect directors to fill such vacancies to hold office until the next annual meeting of the shareholders.

9. No contract or other transaction between the Corporation and any other corporation, whether or not a majority of the shares of the capital stock of such other corporation is owned by the Corporation, and no act of the Corporation shall in any way be affected by the fact that any of the directors of the Corporation are pecuniarily or otherwise interested in, or are directors of officers of, such other corporations; any director individually, or any firm of which such director may be a member, may be a party to, or may be pecuniarily or otherwise interested in, any contract or transaction of the Corporation, provided that the fact that he or such firm is so interested shall be disclosed or shall have been known to the Board of Directors, or a majority thereof; and any director of the Corporation who is also a director or officer of such other corporation, or who is so interested, may be counted in determining the existence of a quorum at any meeting of the Board of Directors of the Corporation which shall authorize such contract or transaction, with like force and effect as if he were not such director or officer of such other corporation or not so interested.

10. In furtherance and not in limitation of the powers conferred by the laws of the State of Oklahoma, the Board of Directors of this Corporation is expressly authorized:

To make, alter, amend, add to, revise, or repeal the Bylaws in any manner not contrary to the laws of the State of Oklahoma;

To authorize and cause its officers to execute mortgages and liens upon the property, both real and personal, and upon the franchises of this Corporation;

To designate, by resolution passed by a majority of the whole Board, one or more committees, each to consist of one or more directors, which committees, to the extent provided in such resolution or in the Bylaws of the Corporation, shall have and

 

- 4 -

---

may exercise any or all of the powers of the Board of Directors in the management of the business and affairs of this Corporation and shall have power to authorize the seal of this Corporation to be affixed by its officers to all papers which may require it;

A majority of the stock issued and outstanding of this Corporation having voting power in the Bylaws confer power additional to the foregoing upon the directors, in addition to the powers and authorities expressly conferred upon them by law.

11. No shareholders of this Corporation shall have any preemptive or preferential right of subscription to any shares of stock of this Corporation, whether now or hereafter authorized, or to any obligations convertible into stock of this Corporation, authorized, issued or sold.

Signed at Oklahoma City, Oklahoma this 23rd Day of September, 1974.

 

/s/ Irwin H. Steinhorn				/s/ Joy McBride
Irwin H. Steinhorn				Joy McBride
16 South Pennsylvania				16 South Pennsylvania
Oklahoma City, Oklahoma				Oklahoma City, Oklahoma

 

		/s/ F. Yvonne Grant
		F. Yvonne Grant
		16 South Pennsylvania
		Oklahoma City, Oklahoma

 

- 5 -

---

STATE OF OKLAHOMA             )

                                                         )         SS

COUNTY OF OKLAHOMA         )

Before me, the undersigned, a Notary Public in and for said County and State, personally appeared the foregoing incorporators, to me known to be identical persons who executed the foregoing Articles of Incorporation, and acknowledged to me that they executed the same as their free and voluntary act and deed for the uses and purposes therein set forth, on this 23rd day of September, 1974.

IN WITNESS WHERE, I have hereunto set my hand and seal the day and year above written.

 

(SEAL)

My Commission Expires: July 26, 1977

Exhibit 3(ii).24

FIRST AMENDMENT TO

BY-LAWS OF

LSB - EUROPA LIMITED

The following amendments to the By-Laws of LSB - Europa Limited, an Oklahoma corporation (“LSB - Europa”) were approved and adopted by the Board of Directors of LSB - Europa, by unanimous written consent, on December 26, 1995:

1. The By-Laws of LSB - Europa are hereby amended by adding a new Article XX entitled Indemnification which reads as follows:

“ ARTICLE XX

INDEMNIFICATION

Section 1. Indemnification: Actions Other Than by the Corporation. The Corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, other than an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner in which he reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

Section 2. Indemnification: Actions by the Corporation. The Corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including attorneys’ fees,

 

- 1 -

---

actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of his duty to the Corporation unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

Section 3. Right to Indemnification. To the extent that any present or former director, officer or employee or any person who is or was serving at the request of the Corporation as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise, or any agent of the Corporation or any person who is or was serving at the request of the Corporation as an agent of another corporation, partnership, joint venture, trust or other enterprise, has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 1 and 2 of this Article XX, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses, including attorneys’ fees, actually and reasonably incurred by him in connection therewith.

Section 4. Authorization of Indemnification. Any indemnification under Sections 1 and 2 of this Article XX, unless ordered by a court, shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in Sections 1 and 2 of this Article XX. Such determination shall be made: (a) by the Board of Directors by a majority vote of a quorum consisting of directors who were not parties to such action, suit or proceeding; or (b) if such quorum is not obtainable, or, even if obtainable a quorum of disinterested directors so directs, by independent legal counsel in a written opinion; or (c) by the shareholders.

Section 5. Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding as authorized by the Board of Directors in the specific case may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article XX.

 

- 2 -

---

Section 6. Non-Exclusive Indemnification. The indemnification provided by this Article XX shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any bylaw, contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 7. Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article XX.

Section 8. Constituent Corporation. For the purposes of this Article XX, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article XX with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

Section 9. Definitions. For purposes of this Article XX, references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to “serving at the request of the Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the interest in the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Article XX.”

 

- 3 -

---

The By-Laws of LSB - Europa Limited, as amended and modified by this First Amendment to the By-Laws of LSB - Europa Limited sets forth the entire By-Laws of LSB - Europa Limited. The amendments to LSB - Europa’s By-Laws as combined in this First Amendment to the By-Laws of LSB - Europa Limited are effective as of the 26th day of December, 1995, the date that such amendments were approved by the Board of Directors of LSB - Europa.

 

Dated: December 26, 1995		LSB - EUROPA LIMITED
		/s/ Jack E. Golsen
		Jack E. Golsen
		President
		/s/ David M. Shear
(Seal)		David M. Shear
		Assistant Secretary

 

- 4 -

---

BYLAWS

OF

LSB - ITALIA LIMITED

ARTICLE I

Offices

Section 1. The name and address of the registered agent in Oklahoma is Irwin H. Steinhorn, 16 South Pennsylvania, Oklahoma City, Oklahoma, and the principal office of this Corporation shall be located at Oklahoma City, Oklahoma.

Section 2. The Corporation may also have offices at such other places as the business of the Corporation requires.

ARTICLE II

Corporate Seal

Section 1. The corporate seal shall have inscribed thereon the name of the Corporation and the words “Corporate Seal, 1974, Oklahoma”.

ARTICLE III

Stockholders’ Meetings

Section 1. The annual meetings of the stockholders shall be held in the principal office of the Corporation.

Section 2. The annual meeting of the stockholders after this year shall be held at 3:00 p.m. on the second Tuesday in April in each year, when they shall elect a Board of Directors and transact such other business as may properly be brought before the meeting.

---

Section 3. The holders of a majority of the outstanding stock entitled to vote, present in person or by proxy, shall constitute a quorum, except as otherwise provided by law, by the Articles of Incorporation or by these Bylaws.

Section 4. At each meeting of the stockholders every stockholder shall be entitled to vote in person, or by written proxy. Each stockholder shall have one vote for each share of stock entitled to vote, registered in his name on the books of the Corporation for a period of not less than twenty days prior to such meeting. All elections shall be had and all questions decided by a majority vote of those present.

Section 5. Written notice of the annual meeting shall be mailed to each stockholder at least ten days prior to the meeting.

Section 6. Special meetings of the stockholders, unless otherwise provided by statute, may be called by the President, and shall be called by the President at the request in writing of a majority of the Board of Directors or stockholders. Any such request shall state the purpose of the meeting.

Section 7. Written notice of all special meetings of the stockholders, stating the time, place and objects there, shall be mailed, at least five days before such meeting.

ARTICLE IV

Directors

Section 1. the property and business of this Corporation shall be managed by its Board of Directors, consisting of not less than three or more than seven in number. They shall be elected at the annual meetings of the stockholders, and each director shall be elected to serve until his successor shall be elected and shall qualify.

---

Section 2. The directors may hold their meetings and keep the books of the Corporation at the principal office of the Corporation, or at such other place or places within or without the State of Oklahoma as they may from time to time determine.

Section 3. In addition to the powers and authorities by these Bylaws expressly conferred upon, the directors may exercise all such powers of the Corporation and do all such lawful acts and things as are not by statute or by the Articles of Incorporation or by these Bylaws required to be done by the stockholders.

Section 4. Any director, whether elected by the stockholders or appointed by the directors, may be removed from office, with or without cause, at any time by the stockholders.

ARTICLE V

Compensation of Directors

Section 1. Directors, as such, shall not receive any stated salary for their services, but by resolution of the Board, a fixed sum and expenses of attendance, if any, may be allowed for attendance at each meeting of the Board; provided that nothing herein shall preclude any director from serving in any other capacity and receiving compensation therefor.

ARTICLE VI

Meetings of the Board

Section 1. The annual meeting of the Board shall be held immediately following the annual meeting of the stockholders, and no notice of such meeting of the Board shall be necessary to the newly elected directors in order legally to constitute such meeting.

---

Section 2. Special meetings of the Board may be called by the President on three day’s notice to each director. Special meetings shall be called by the President in like manner and on like notice on the written request of two directors.

Section 3. At all meeting of the Board, a majority of the directors shall constitute a quorum, and the act of a majority of the directors present at any meeting at which there is a quorum, shall be the act of the Board of Directors, except as may otherwise be specifically provided by statute, or by the Articles of Incorporation, or by these Bylaws.

ARTICLE VII

Officers

Section 1. The officers of the Corporation shall be chosen by the directors and shall be a President, as many Vice Presidents as the directors shall from time to time deem advisable, and a Secretary and a Treasurer. The Secretary and Treasurer may be the same person, and any of the Vice Presidents may hold at the same time the office of Secretary or Treasurer.

Section 2. The Board of Directors, at its first meeting after each annual meeting of stockholders, shall choose a President from their own number, at least one Vice President and a Secretary and a Treasurer, who need not be members of the Board.

Section 3. The Board may appoint such other officers and agents as it shall deem necessary, who shall hold their offices for such terms and shall exercise such powers and perform such duties as the Board shall determine from time to time.

---

Section 4. The salaries of all officers of the Corporation shall be fixed by the directors. They shall hold office until their successors are chosen and qualified. Any officer may be removed from office, with or without cause, at any time by the directors.

ARTICLE VII

The President

Section 1. The President shall be the chief executive officer of the Corporation; he shall preside at all meetings of the stockholders and directors; he shall have general and active management of the business of the Corporation, shall see that all orders and resolutions of the Board are carried into effect, and shall have the general powers and duties of supervision and management usually vested in the office of President of a corporation.

ARTICLE IX

Vice Presidents

Section 1. Any of the Vice Presidents who may be available shall, in the absence or disability of the President, perform the duties and exercise the powers of the President, and shall perform such other duties as the directors shall prescribe.

ARTICLE X

The Treasurer

Section 1. The Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Corporation, and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the directors.

---

ARTICLE XI

The Secretary

Section 1. The Secretary shall attend all sessions of the Board and all meetings of the stockholders and record all votes and the minutes of all meetings in a book to be kept for that purpose. He shall give, or cause to be given, notice of all meetings of the stockholders and of the directors, and shall perform such other duties as may be prescribed by the President or the directors, all subject to the supervision of the President.

ARTICLE XII

Vacancies

Section 1. If the office of any director, or of any officer or agent, becomes vacant by reason of death resignation, disqualification, removal from office, or otherwise, the directors may choose a successor who shall hold office for the unexpired term in respect of which such vacancy occurred.

ARTICLE XIII

Certificates of Stock

Section 1. The certificates of stock of the Corporation shall be numbered and shall be entered in the books of the Corporation as they are issued. They shall exhibit the holder’s name and number of shares and shall be signed by the President or a Vice President and the Secretary or an Assistant Secretary.

---

ARTICLE XIV

Transfer of Stock

Section 1. Transfer of stock shall be made on the books of the Corporation only by the person named in the certificate or by attorney, lawfully constituted in writing, and upon surrender of the certificate therefor and a full and complete compliance with all of the terms and conditions as set forth on such certificate, and in the Articles of Incorporation.

ARTICLE XV

Registered Stockholders

Section 1. The Corporation shall be entitled to treat the holder of record of any share or shares as the holder and owner in fact thereof, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such share on the part of any other person, whether or not it shall have express or other notice thereof; except as may be otherwise expressly provided by law.

ARTICLE XVI

Fiscal Year

Section 1. The fiscal year shall be the calendar year, unless otherwise determined by the directors.

---

ARTICLE XVII

Dividends

Section. 1 Dividends upon the capital stock of the Corporation, which earned, may be declared by the directors.

ARTICLE XVIII

Notices

Section 1. Whenever under any of the provisions of these Bylaws notice is required to be given to any director, officer or stockholder, it shall not be construed to mean personal notice, by such notice may be given in writing, by depositing the same in the post office or letter box postpaid, addressed to such stockholder, officer or director at such address as appears on the records of the Corporation, or in default of other address, to such director, officer or stockholder at the general post office in the capitol city of the State of Oklahoma, and such notice shall be deemed to be given at the time when the same shall be thus mailed.

Section 2. Any stockholder, director or officer may waive any notice required to be given under these Bylaws, or by statute, or the Articles of Incorporation, to the extent permitted by law and by the Articles of Incorporation.

ARTICLE XIX

Amendments

Section 1. These Bylaws may be amended, altered, repealed or revised, at any meeting of the stockholders by an affirmative vote of a majority of common stock at any meeting at which there is a quorum present, or by an affirmative vote of

---

a majority of the directors present at any meeting at which there is a quorum present, as the case may be; provided, however, that no change of the time or place for the election of directors shall be made within sixty days next before the day on which such election is to be held, and that in case or any change of such time or place, notice thereof shall be given to each stockholder entitled to vote, either in person or by letter mailed to his last known post office address, at least twenty days before the election is held.

APPROVAL OF DIRECTORS

The foregoing Bylaws were read and discussed section by section by the directors, who have authority to adopt Bylaws which shall remain effective until legally amended or repealed. Following such discussion, they were duly approved at a meeting held in Oklahoma City, Oklahoma, on this 26th day of September, 1974.

 

Exhibit 3(i).25

FIRST AMENDMENT

TO

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

PRYOR PLANT CHEMICAL COMPANY

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, OK 73105

Pryor Plant Chemical Company, an Oklahoma corporation (the “Corporation”), for the purpose of amending its Amended and Restated Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

A. Article First of the Amended and Restated Certificate of Incorporation of the Corporation is hereby amended by striking the name “Pryor Plant Chemical Company” and substituting the following new name of the Corporation in lieu thereof: “Pryor Chemical Company”.

B. There are no changes to Articles Second through Ninth of the Amended and Restated Certificate of Incorporation of the Corporation.

C. The amendment as described in this First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation was (i) declared advisable and approved by the Board of Directors pursuant to a resolution duly adopted by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Amended and Restated Certificate of Incorporation of the Corporation to be signed by its             President and attested by its             Secretary this     day of November, 2008.

 

ATTEST:						PRYOR PLANT CHEMICAL COMPANY
By:		/s/ David M. Shear				By:		/s/ Jack E. Golsen
		Asst. Secretary						President

---

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

PRYOR PLANT CHEMICAL COMPANY

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

Pryor Plant Chemical Company, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Certificate of Incorporation was filed under the name LSB Financial Corp. with the Secretary of State of the State of Oklahoma on May 13, 1980 and amended on December 28, 2000.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is Pryor Plant Chemical Company (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

---

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
50,000		$	1.00			$	50,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this

 

2

---

Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. If the Oklahoma General Corporation Act is amended to authorize corporation action further eliminating or limiting the personal liability of directors, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Oklahoma General Corporation Act, as so amended. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, Pryor Plant Chemical Company has caused this Amended and Restated Certificate of Incorporation to be signed by its             President and attested by its             Secretary this 29th day of January, 2001.

 

 

ATTEST:

/s/ David R. Goss

Secretary

 

4

Exhibit 3(ii).25

FIRST AMENDMENT

TO THE

AMENDED AND RESTATED BYLAWS

OF

PRYOR PLANT CHEMICAL COMPANY

(an Oklahoma corporation)

The following amendment to the Amended and Restated Bylaws of Pryor Plant Chemical Company, now known as Pryor Chemical Company (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on November 4, 2008.

1) Article I of the Amended and Restated Bylaws of the Corporation is hereby amended by striking the name “Pryor Plant Chemical Company” and substituting the following new name of the Corporation in lieu thereof:

“Pryor Chemical Company”

2) There are no changes to Articles II through XI of the Amended and Restated Bylaws of the Corporation.

The Amended and Restated Bylaws of the Corporation, as amended and modified by this First Amendment to the Amended and Restated Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Amended and Restated Bylaws as provided in this First Amendment to the Amended and Restated Bylaws of the Corporation is effective as of the 4th day of November, 2008, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: November 4, 2008.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[Corporate Seal]

---

AMENDED AND RESTATED BYLAWS

OF

PRYOR PLANT CHEMICAL COMPANY

(an Oklahoma corporation)

These Amended and Restated Bylaws of Pryor Plant Chemical Company (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on May 13, 1980, to read as follows:

ARTICLE I

NAME

The name of the Corporation is Pryor Plant Chemical Company (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania Avenue, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one (1) or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during normal business hours, at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one (1) vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one (1) or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary

 

3

---

power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(i) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be

 

4

---

filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

Section 3.13 Telephonic Meetings. The Shareholders may participate in a meeting of the Shareholders by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 3.14 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one (1) or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The Inspectors of Election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one (1) or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any

 

5

---

meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, the President or the Secretary or by any two (2) directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

 

6

---

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the Corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

 

7

---

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two (2) or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

 

8

---

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one (1) or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two (2) or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one (1) or more Senior Vice-Presidents, one (1) or more Vice-Presidents, one (1) or more Assistant Secretaries, one (1) or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One (1) person may hold two (2) or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

 

9

---

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

 

10

---

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

 

11

---

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

 

12

---

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President or Vice President and Secretary or Assistant Secretary or by a facsimile of the signature of the President or Vice President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

 

13

---

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one (1) or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one (1) of such Transfer Agents and registered by one (1) of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

 

14

---

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

 

15

---

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any law, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

 

16

---

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or

 

17

---

after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one (1) or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one (1) or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the

 

18

---

notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of Pryor Plant Chemical Company set forth the entire Bylaws of the Corporation and are effective as of the 8th day of January, 2001, the date that such Amended and Restated Bylaws of Pryor Plant Chemical Company were adopted and approved by the directors of the Corporation.

Dated: January 8, 2001

 

 

ATTEST:

/s/ David R. Goss

Secretary

[Corporate Seal]

 

19

Exhibit 3(i).26

ARTICLES OF CONVERSION

OF

SUMMIT MACHINE TOOL MANUFACTURING CORP.

TO SUMMIT MACHINE TOOL MANUFACTURING L.L.C.

 

TO:	THE OKLAHOMA SECRETARY OF STATE

101 State Capitol

Oklahoma City, Oklahoma 73105

The undersigned, for the purpose of converting Summit Machine Tool Manufacturing Corp., a corporation formed under the laws of the State of Oklahoma, to Summit Machine Tool Manufacturing L.L.C., an Oklahoma limited liability company, pursuant to Section 2054.1 of Title 18 of the Oklahoma Statutes, does hereby execute the following Articles of Conversion:

1. Date Business Entity First Formed. The date on which Summit Machine Tool Manufacturing Corp. was first formed was October 4, 1961.

2. Name and Jurisdiction of Formation of Business Entity. The name of the business entity when formed was Great Western Industrial Machinery, Inc., and the jurisdiction of formation of such business entity when formed is Oklahoma. The name of the business entity immediately prior to the filing of these Articles of Conversion was Summit Machine Tool Manufacturing Corp., and the jurisdiction of formation of such business entity immediately prior to the filing of these Articles of Conversion is Oklahoma.

3. Name of Limited Liability Company. The name of the limited liability company as set forth in its Articles of Organization attached hereto is Summit Machine Tool Manufacturing L.L.C.

4. Effective Date. The effective date of this conversion shall be upon the filing of these Articles of Conversion with the Oklahoma Secretary of State.

5. Directors’ Resolution. The Board of Directors of Summit Machine Tool Manufacturing Corp. has adopted a resolution approving this conversion and recommending the approval of the conversion by the shareholders of Summit Machine Tool Manufacturing Corp., which resolution has been submitted to the shareholders of Summit Machine Tool Manufacturing Corp., also approving the Articles of Organization attached hereto and approving the Operating Agreement of Summit Machine Tool Manufacturing L.L.C.

6. Shareholder Approval. The holders of the outstanding shares of capital stock of Summit Machine Tool Manufacturing Corp. have authorized, approved and consented to the adoption of the resolution approving this conversion and approving the Articles of Organization attached hereto and approving the Operating Agreement of Summit Machine Tool Manufacturing L.L.C. and directing Summit Machine Tool Manufacturing Corp. to file these Articles of Conversion with the Oklahoma Secretary of State.

---

7. Articles of Organization Attached. Attached hereto are the Articles of Organization of Summit Machine Tool Manufacturing L.L.C.

8. Compliance With Section 1090.5. Summit Machine Tool Manufacturing Corp. and Summit Machine Tool Manufacturing L.L.C. intend that these Articles of Conversion also constitute a Certificate of Conversion pursuant to Section 1090.5 of Title 18 of the Oklahoma Statutes.

Dated: April 1, 2010.

 

 

Attest:

/s/ David M. Shear

David M. Shear, Assistant Secretary

 

2

---

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “Summit Machine Tool Manufacturing L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is: 16 South Pennsylvania Avenue Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is: David M. Shear 16 South Pennsylvania Avenue Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 1st day of April, 2010.

 

Exhibit 3(ii).26

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

SUMMIT MACHINE TOOL MANUFACTURING L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by CONSOLIDATED INDUSTRIES L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of SUMMIT MACHINE TOOL MANUFACTURING L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, the Member converted from an Oklahoma corporation, formerly known as “Consolidated Industries Corp.” to an Oklahoma limited liability company, known as “Consolidated Industries L.L.C.”, effective as of 11:58 p.m. on December 31, 2013. In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated April 1, 2010, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was originally formed as an Oklahoma corporation known as “Summit Machine Tool Manufacturing Corp.” on October 4, 1961 and was converted to an Oklahoma limited liability company on April 1, 2010, upon the filing of the Articles of Conversion, to which was attached the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

---

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

2

---

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

3

---

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as

 

4

---

directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers,” as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5

---

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request, preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

6

---

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

7

---

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8

---

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

 

9

---

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 3(i).27

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

APR CORPORATION

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

APR Corporation, a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Certificate of Incorporation was filed under the name APR Corporation with the Secretary of State of the State of Oklahoma on October 29, 1992.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is The Climate Control Group, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Voting Common Stock.” The total number of shares of Voting Common Stock which this Corporation shall have authority to issue and the par value of each share of Voting Common Stock are as follows:

---

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
100,000		$	0.10			$	10,000.00

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of

 

2

---

shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

IN WITNESS WHEREOF, APR Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by its Vice President and attested by its             Secretary this 19th day of July, 1999.

 

3

---

 

ATTEST:

/s/ David R. Goss

Secretary

 

4

Exhibit 3(ii).27

AMENDED AND RESTATED BYLAWS

OF

THE CLIMATE CONTROL GROUP, INC.

(an Oklahoma corporation)

These Amended and Restated Bylaws of The Climate Control Group, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on July 16, 1999 to read as follows:

ARTICLE I

NAME

The name of the Corporation is The Climate Control Group, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the

 

3

---

appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual

 

5

---

or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour;

 

6

---

provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may

 

8

---

exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

 

9

---

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

 

10

---

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

 

11

---

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

 

13

---

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

These Amended and Restated Bylaws of The Climate Control Group, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 16th day of July, 1999, the date that such Amended and Restated Bylaws of The Climate Control Group, Inc. were approved by the Board of Directors of the Corporation.

 

18

---

Dated: July 16, 1999.

 

 

ATTEST:

/s/David M. Shear

Asst. Secretary

[Corporate Seal]

 

19

Exhibit 3(i).28

SECOND AMENDMENT

TO

CERTIFICATE OF INCORPORATION

OF

ACP INTERNATIONAL LIMITED

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, OK 73105

ACP International Limited, an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

1. Article First of the Certificate of Incorporation of the Corporation is hereby amended by striking the name “ACP International Limited” and substituting the following new name of the Corporation in lieu thereof: “ThermaClime Technologies, Inc.”

2. There are no changes to Articles Second through Eleventh of the Certificate of Incorporation of the Corporation.

3. The Second Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH SECOND AMENDMENT WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this Second Amendment to the Certificate of Incorporation of the Corporation to be signed by its             President and attested by its             Secretary this 14th day of December 2006.

 

ATTEST:						ACP INTERNATIONAL LIMITED
By:		/s/ David M. Shear				By:		/s/ Jack E. Golsen
		Secretary						President

---

FIRST AMENDMENT

TO

CERTIFICATE OF INCORPORATION

OF

ACP MANUFACTURING CORP.

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, OK 73105

ACP Manufacturing Corp., an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

4. Article First of the Certificate of Incorporation of the Corporation is hereby amended by striking the name “ACP Manufacturing Corp.” and substituting the following new name of the Corporation in lieu thereof: “ACP International Limited”.

5. There are no changes to Articles Second through Eleventh of the Certificate of Incorporation of the Corporation.

6. The First Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA STATUTES.

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Certificate of Incorporation of the Corporation to be signed by its President and attested by its Asst. Secretary this 25th day of February, 1999.

 

ATTEST:						ACP MANUFACTURING CORP.
By:		/s/ David M. Shear				By:		/s/ Barry H. Golsen
		Asst. Secretary						President

---

CERTIFICATE OF INCORPORATION

OF

ACP MANUFACTURING CORP.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

FIRST: Name. The name of this corporation is ACP Manufacturing Corp. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

FIFTH: Capital Stock. The Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock”. The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number of Shares		Par Value of Each Share				Total Authorized Common Stock
500,000		$	0.10			$	50,000

SIXTH: Incorporator. The name and address of the incorporator is as follows:

J. Ann Muise

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

SEVENTH: Directors. The names and mailing addresses of the persons who are to serve as directors until the first annual meeting of the shareholders or until their removal or resignation are as follows:

---

EIGHTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be as specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

NINTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any

 

2

---

creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

TENTH: Director’s Liability; Indemnification.

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Article TENTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

ELEVENTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section ELEVENTH.

 

3

---

IN WITNESS WHEREOF, the undersigned, being the incorporator hereinabove named, for the purpose of forming a corporation under the laws of the State of Oklahoma, does certify that the facts herein stated are true, and accordingly, has hereunto set her hand this 11th day of December, 1998.

 

 

4

Exhibit 3(ii).28

SECOND AMENDMENT

TO THE

BYLAWS

OF

ACP INTERNATIONAL LIMITED

(an Oklahoma corporation)

The following amendment to the Bylaws of ACP International Limited, now known as ThermaClime Technologies, Inc. (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on December 14, 2006.

1) Article I of the Bylaws of the Corporation is hereby amended by striking the name “ACP International Limited” and substituting the following new name of the Corporation in lieu thereof:

“ThermaClime Technologies, Inc.”

2) There are no changes to Articles II through XI of the Bylaws of the Corporation.

The Bylaws of the Corporation, as amended and modified by this Second Amendment to the Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Bylaws as provided in this Second Amendment to the Bylaws of the Corporation is effective as of the 14th day of December 2006, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: December 14, 2006.

 

 

ATTEST:

/s/ David M. Shear

Secretary

[Corporate Seal]

---

FIRST AMENDMENT

TO THE

BYLAWS

OF

ACP MANUFACTURING CORP.

(an Oklahoma corporation)

The following amendment to the Bylaws of ACP Manufacturing Corp., now known as ACP International Limited (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on April 5, 2000.

1. Article I of the Bylaws of the Corporation is hereby amended by striking the name “ACP Manufacturing Corp.” and substituting the following new name of the Corporation in lieu thereof:

“ACP International Limited”

2. There are no changes to Articles II through XI of the Bylaws of the Corporation.

The Bylaws of the Corporation, as amended and modified by this First Amendment to the Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Bylaws as provided in this First Amendment to the Bylaws of the Corporation is effective as of the 5th day of April, 2000, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: April 5, 2000.

 

 

ATTEST:

/s/ David M. Shear

Secretary

[Corporate Seal]

---

BYLAWS

OF

ACP MANUFACTURING CORP.

(an Oklahoma corporation)

ARTICLE I

NAME

The name of the Corporation is ACP Manufacturing Corp. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 6 South Pennsylvania, Oklahoma City, Oklahoma 73107. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of

---

Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of

 

2

---

enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the

 

3

---

Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any

 

4

---

such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

 

5

---

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour; provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at

 

6

---

the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

 

8

---

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

 

9

---

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

 

10

---

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

 

11

---

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not

 

13

---

more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

Exhibit 3(i).29

AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION

OF

TRISON CONSTRUCTION, INC.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

Trison Construction, Inc., a corporation organized and existing under and by virtue of the laws of the State of Oklahoma (the “Corporation”), does hereby certify as follows:

 

A.	The Corporation’s original Certificate of Incorporation was filed under the name Trison Construction, Inc. with the Secretary of State of the State of Oklahoma on March 27, 1998.

 

B.	This Amended and Restated Certificate of Incorporation of the Corporation restates, integrates and amends the Certificate of Incorporation of the Corporation.

 

C.

In accordance with Sections 1080 and 1077 of the Oklahoma General Corporation Act, this Amended and Restated Certificate of Incorporation of the Corporation was (i) approved by the director of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

 

D.	The text of the Certificate of Incorporation of the Corporation is amended hereby and restated to read in full as set forth herein.

FIRST: Name. The name of this corporation is Trison Construction, Inc. (hereafter this “Corporation”).

SECOND: Registered Office. The name and address of the registered agent of this Corporation in the State of Oklahoma and the address of the registered office of this Corporation in the State of Oklahoma, which is the same as the address of its registered agent, are:

David M. Shear, General Counsel

16 South Pennsylvania

Oklahoma City, Oklahoma 73107

THIRD: Term. The term of this Corporation shall be perpetual.

FOURTH: Purpose. The purpose of this Corporation is to engage in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act.

---

FIFTH: Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
500,000		$	0.10			$	50,000

SIXTH: Internal Affairs. The following constitute provisions for the regulation of internal affairs of this Corporation:

(a) Bylaws. The Bylaws for the governing of this Corporation may be adopted, amended, altered, repealed, or readopted by the Board of Directors at any stated or special meeting of such board or by the written consent of all directors. The powers of such directors in this regard shall at all times be subject to the rights of the shareholders to adopt, alter or repeal such Bylaws at any annual or special meeting of shareholders or by written consent of a majority of the shareholders.

(b) Number of Directors. The number of directors of this Corporation shall be specified in the Bylaws. Election of directors need not be by ballot unless the Bylaws so provide.

(c) Stock. The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Amended and Restated Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of Section 1077(B)(2) of the Oklahoma General Corporation Act.

(d) Contracts. To the extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s directors or officers are directors or officers or have a financial interest, will be void or voidable solely for this reason, or solely because the Corporation’s directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s directors or officers or their votes are counted for such purposes.

SEVENTH: Creditors Arrangements. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of any receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Oklahoma General Corporation Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this

 

2

---

Corporation under the provisions of Section 1100 of the Oklahoma General Corporation Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in the number representing three-fourths (3/4) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of the Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

EIGHTH: Director’s Liability; Indemnification

(a) Director’s Liability. To the maximum extent permitted by the Oklahoma General Corporation Act as it exists on the date hereof or as it may hereafter be amended, no director of this Corporation shall be liable to this Corporation or its shareholders for monetary damages for breach of fiduciary duty as a director, provided that this provision will not eliminate or limit the liability of a director (a) for any breach of the director’s duty of loyalty to the Corporation or its shareholders, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. If the Oklahoma General Corporation Act is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of the directors of the Corporation shall be eliminated or limited to the fullest extent permitted by the Oklahoma General Corporation Act as so amended. No amendment to or repeal of this Article EIGHTH shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

(b) Indemnification. The Corporation will indemnify and advance litigation expenses to its officers, directors, employees and agents and to persons who are or were serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma.

NINTH: Amendment. This Corporation reserves the right at any time and from time to time to amend, alter, change or repeal any provision contained in this Amended and Restated Certificate of Incorporation, and other provisions authorized by the laws of the State of Oklahoma at the time in force may be added or inserted in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by law; and all rights, preferences and privileges of whatsoever nature conferred upon shareholders, directors or any other persons by and pursuant to this Amended and Restated Certificate of Incorporation in its present form or as hereafter amended are granted subject to the right reserved in this Section NINTH.

 

3

---

IN WITNESS WHEREOF, Trison Construction, Inc. has caused this Amended and Restated Certificate of Incorporation to be signed by its             President and attested by its             Secretary this 26th day of July, 2000.

 

 

ATTEST:

/s/ Ann Muise

Secretary

 

4

Exhibit 3(ii).29

AMENDED AND RESTATED BYLAWS

OF

TRISON CONSTRUCTION, INC.

(an Oklahoma corporation)

These Amended and Restated Bylaws of Trison Construction, Inc. (the “Corporation”) amend and restate the Bylaws of the Corporation now in effect and adopted by the Board of Directors of the Corporation on March 27, 1998 to read as follows:

ARTICLE I

NAME

The name of the Corporation is Trison Construction, Inc. (the “Corporation”).

ARTICLE II

OFFICES

Section 2.1 Principal Office. The present location of the principal office for the transaction of the business of the Corporation is 4000 N.W. 39th Street, Oklahoma City, Oklahoma 73112. The Board of Directors may change such principal office from time to time.

Section 2.2 Other Offices. The Corporation may have other offices at such places, within or without the State of Oklahoma, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

ARTICLE III

MEETINGS OF SHAREHOLDERS

Section 3.1 Annual Meetings. An annual meeting of shareholders shall be held at such time and date as may be designated by the Board of Directors. At the annual meeting, directors shall be elected, reports of the affairs of the Corporation shall be considered, and any other proper business may be transacted.

Section 3.2 Failure to Hold Annual Meeting. A failure to hold the annual meeting at the designated time or to elect a sufficient number of directors to conduct the business of the Corporation will not affect otherwise valid corporate acts, cause a forfeiture of the Corporation, or cause a dissolution of the Corporation, except as may be otherwise specifically provided by law. If the annual meeting or election of directors is not held on the date designated therefor, the directors will cause the meeting to be held as soon as thereafter convenient.

---

Section 3.3 Special Meetings. Special meetings of the shareholders for any purpose or purposes may be called at any time by: (a) the Chairman of the Board; (b) in the chairman’s absence or disability, by the Vice Chairman of the Board; (c) the President; (d) in the President’s absence or disability, by a Vice President; (e) resolution adopted by the Board of Directors; or (f) one or more shareholders holding a majority of the issued and outstanding voting shares of the Corporation. Notices of any special meeting shall be given to each shareholder as described in Section 11.4 and shall state, in addition to the time, date and place of such meeting, the purpose or purposes of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. Upon request being made by written notice to the Chairman of the Board, or in his absence or disability, to the Vice Chairman of the Board, or to the President, or in his absence or disability to any Vice-President, or in the absence of a Vice-President, to the Secretary, by any person or persons herein empowered to call a special meeting, if such officer is the Secretary, he shall give notice to the shareholders, or if such officer is other than the Secretary, he shall cause the Secretary, to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time as fixed by such officer shall not be less than ten (10) days nor more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as herein provided for notice of annual meetings of shareholders.

Section 3.4 Place of Meetings. All meetings of shareholders shall be held either at the principal office of the Corporation or at any other place within or outside the State of Oklahoma as may be designated by the Board of Directors.

Section 3.5 Notice of Meetings. Written notice of the time, date and place of each annual meeting of the shareholders shall be given to each shareholder as described in Section 11.4 not less than ten (10) nor more than sixty (60) days before each annual meeting.

Section 3.6 Voting List. The Secretary shall prepare, at least ten (10) days prior to each meeting of the shareholders, an alphabetical list of all shareholders entitled to vote at such meeting, with the number of shares entitled to be voted by each shareholder set forth opposite their respective names. The Secretary shall produce the share ledger or a duplicate thereof, together with such list and shall keep it open either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held during the business hours of at least ten (10) full days immediately preceding the convening thereof and until the close of such meeting, and it shall be subject to inspection at any time during such period by any shareholder or person representing shares. However, the Secretary shall not be required to prepare and produce a list of shareholders in any case where the share ledger reasonably shows in alphabetical order by classes of shares all persons entitled to represent shares at such meeting with the number of shares entitled to be voted by each shareholder.

 

2

---

Section 3.7 Quorum and Adjourned Meetings. The holders of a majority of the stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the shareholders for the transaction of business, except as otherwise provided by statute or the Certificate of Incorporation of the Corporation. The shareholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. Any shareholders’ meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the holders of a majority of the shares entitled to vote thereat, present in person or by proxy, but in the absence of a quorum no other business may be transacted at such meeting. It shall not be necessary to give any notice of the time and place of the adjourned meeting or of the business to be transacted thereat, other than by announcement at the meeting at which such adjournment is taken, except that if any shareholders’ meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 3.8 Voting. At each meeting of shareholders each shareholder entitled to vote shall vote in person or by proxy and he shall have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board of Directors, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board of Directors. The voting at all meetings of shareholders may be oral but any qualified voter may demand a share vote by written ballot, whereupon such share vote shall be taken by written ballot each of which shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

Section 3.9 Vote Required. Except as provided by law, the Certificate of Incorporation and these Bylaws, in all matters other than the election of directors, the affirmative vote of the holders of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter will decide any question brought before such meeting. Directors of the Corporation will be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

Section 3.10 Proxies. Any shareholder entitled to vote or execute consents shall have the right to do so either in person or by one or more agents authorized by proxy. The appointment of a proxy shall be in writing and signed by the shareholder but shall require no other attestation and shall be filed with the Secretary of the Corporation at or prior to the meeting. If any shareholder appoints two or more persons to act as proxies and if the instrument does not otherwise provide, then a majority of such persons present at the meeting (or if only one shall be present, then that one) shall have and may exercise all of the powers conferred by such instrument upon all of the persons so appointed; and if such proxies be equally divided as to the right and manner of voting in any particular case, the vote shall be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power upon such a proxy. The duly executed proxy will be irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. The authority of a proxy if not coupled with an interest may be terminated at will. Unless otherwise provided in the

 

3

---

appointment, the proxy’s authority shall cease three (3) years after the appointment. The termination of a proxy’s authority by act of the shareholder shall, subject to the time limitation herein set forth, be ineffective until written notice of the termination has been given to the Secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the Secretary shall have the effect of revoking all proxy appointments of prior date. A proxy’s authority shall not be revoked by the death or incapacity of the maker unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the Secretary of the Corporation.

Section 3.11 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, shall be as follows:

(a) Calling meeting to order;

(b) Calling of roll and checking proxies;

(c) Proof of notice of meeting;

(d) Reading of any unapproved minutes;

(e) Reports of officers;

(f) Reports of committees;

(g) Election of directors;

(h) Unfinished business;

(I) New business; and

(j) Adjournment.

Section 3.12 Action Without Meeting. Any action which, under any provisions of the laws of the State of Oklahoma or under the provisions of the Certificate of Incorporation or under these Bylaws, may be taken at a meeting of the shareholders, may be taken without a meeting, without prior notice and without a vote if a consent in writing be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take action at a meeting at which all shares entitled to vote thereon were present and voted. Every written consent will bear the date of signature of each shareholder who signs the consent, and no written consent will be effective to take the corporate action referred to therein unless, within sixty (60) days of the earliest dated consent delivered to the Secretary, written consent signed by sufficient number of holders to take action is delivered to the Secretary of the Corporation or the Corporation’s registered office in Oklahoma. Such consent shall be filed with the Secretary of the corporation and made a part of the corporate records. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

4

---

Section 3.13 Inspectors of Election. In advance of any meeting of shareholders, the Board of Directors may appoint one or more Inspectors of Election to act at such meeting or any adjournment thereof. If Inspectors of Election be not so appointed, the Chairman of any such meeting may, and on the request of any shareholder or his proxy shall, make such appointment at the meeting. In case any person appointed as inspector fails or refuses to act, the vacancy may be filled by appointment by the Board of Directors in advance of the meeting, or at the meeting by the Chairman. An inspector need not be a shareholder of the Corporation, but no person who is a candidate for office of the Corporation shall act as an inspector. The duties of such inspectors shall include: determining the number of shares outstanding and the voting power of each, the shares represented at the meeting, the existence of a quorum, the validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; counting and tabulating all votes or consents; determining the result; and such acts as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors of the election shall perform their duties impartially in good faith, to the best of their ability, and as expeditiously as is practical.

ARTICLE IV

BOARD OF DIRECTORS

Section 4.1 Authority. Except as otherwise provided in the Certificate of Incorporation, the Board of Directors will have full power and authority to manage, control and conduct the property, interests, business, transactions and affairs of the Corporation. The Board of Directors may adopt such rules and regulations, not inconsistent with the Certificate of Incorporation, these Bylaws or the laws of the State of Oklahoma, as it deems proper for the conduct of its meetings and the management of the Corporation. In addition to the powers and authorities expressly conferred on the Board of Directors by these Bylaws, the Board of Directors may exercise all powers and take such actions as are not required by statute, the Certificate of Incorporations or these Bylaws to be exercised by the shareholders.

Section 4.2 Number, Election and Term of Office. The Board of Directors of the Corporation shall consist of one or more members. The shareholders at any meeting shall determine the number which shall constitute the Board of Directors and the number so determined shall remain fixed until changed at a subsequent meeting of the shareholders. The directors shall be elected at each annual meeting of the shareholders; however, if any such annual meeting is not held or the directors are not elected thereat, the directors may be elected at any meeting of shareholders held for that purpose. Each director shall hold office for one (1) year or until his successor is elected (even though necessitating a term in excess of one (1) year) or until his earlier death, resignation or removal. A director need not be a shareholder of the Corporation.

Section 4.3 Vacancies. Vacancies in the Board of Directors may be filled by a majority of the directors then in office, though less than a quorum, or by a sole remaining director, and each director so elected shall hold office until his successor is elected at an annual

 

5

---

or a special meeting of the shareholders. A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any director, or if the authorized number of directors be increased, or if the shareholders fail, at any annual or special meeting of shareholders at which any director or directors are elected, to elect the full authorized number of directors to be voted for at that meeting. The shareholders may elect a director or directors at any time to fill any vacancy or vacancies not filled by the directors.

Section 4.4 Resignations. Upon the resignation of a director, a majority of the remaining directors or the sole remaining director shall have the power to elect a successor to take office when the resignation is to become effective.

Section 4.5 Removal. The entire Board of Directors or any individual director may be removed from office, with or without cause, by the vote of shareholders holding a majority of the issued and outstanding shares entitled to vote at any annual or special meeting of shareholders. New directors to fill vacancies created by removal may be elected at the same meeting of shareholders.

Section 4.6 Annual Meetings. An annual meeting of the Board of Directors for the purpose of election of officers of the Corporation and the transaction of any other business coming before such meeting shall be held each year immediately following the adjournment of the annual meeting of the shareholders and no notice of such meeting to the elected directors shall be necessary in order to legally constitute the meeting, provided a majority of the Board shall be present. If a majority of the Board shall not be present, then such annual meeting may be held at such time as shall be fixed by the consent, in writing, of all of the directors.

Section 4.7 Regular Meetings. Regular meetings of the Board of Directors shall be held at such place or places, on such date or dates, and at such time or times as shall have been established by the Board of Directors and publicized among all directors. No notice of such regular meeting shall be required.

Section 4.8 Special Meetings. Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the Chairman of the Board, the Vice Chairman of the Board, President or the Secretary or by any two directors by notice of the time, date and place thereof given to each director not less than one (1) day before such meeting.

Section 4.9 Place of Meetings. Meetings of the Board of Directors shall be held at any place within or without the State of Oklahoma which has been designated from time to time by resolution adopted by the Board or by written consent of all members of the Board. In the absence of such designation, meetings shall be held at the principal office of the Corporation.

Section 4.10 Quorum and Required Vote; Adjourned Meetings. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the directors, and the acts of a majority of the directors present at a meeting at which a quorum is present shall be the acts of the Board of Directors except as may be otherwise specifically provided by statute, by the Certificate of Incorporation or by these Bylaws. A quorum of the directors may adjourn any meeting of the directors to meet again at a stated day and hour;

 

6

---

provided that in the absence of a quorum a majority of the directors present at any meeting of the directors, either regular or special, may adjourn to a later date but may not transact any business until a quorum has been secured. At any adjourned meeting at which a required number of directors shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. At least one (1) days notice of the time and place of holding an adjourned meeting shall be given to each director whether or not present at the time of adjournment, if such notice is by facsimile or hand delivery, or at least three (3) days notice if by mail.

Section 4.11 Compensation. Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed by resolution adopted by the Board of Directors.

Section 4.12 Action without Meeting. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if all members of the Board consent thereto in writing. Such written action by unanimous consent shall have the same effect as action taken at a meeting of the Board of Directors and shall be filed with the Secretary of the corporation and made a part of the minute of proceeding of the Board of Directors.

Section 4.13 Telephonic Meetings. Members of the Board of Directors may participate in a meeting of the Board of Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section shall constitute presence in person at such meeting.

Section 4.14 Waiver of Notice. Whenever the giving of any notice of a meeting of the Board of Directors is required by statute, the Certificate of Incorporation or these Bylaws, a waiver thereof in writing, signed by the directors entitled to such notice, whether before or after the event as to which such notice is required, will be deemed equivalent to notice.

ARTICLE V

EXECUTIVE COMMITTEE

Section 5.1 Election. The Board of Directors may if it deems necessary, acting by resolution adopted by a majority of the number of directors, elect from their own members an Executive Committee composed of two or more voting members.

Section 5.2 Duties. The Executive Committee shall have and exercise all of the authority of the Board of Directors in the management of the Corporation in the interval between meetings of the Board of Directors, subject to the control and direction of the Board of Directors, except to the extent, if any, such authority shall be limited by the resolution appointing the Executive Committee and except the power to declare dividends and to adopt, amend or repeal these Bylaws and where action of the Board of Directors is required by law. It shall keep regular minutes of its proceedings which shall be reported to the directors at their next meeting.

 

7

---

Section 5.3 Term. Each committee member will serve as such until the earliest of (a) the expiration of his term as director, (b) his resignation as a committee member or as a director, or (c) his removal as a committee member or as a director.

Section 5.4 Meetings. The Executive Committee shall meet at such times as may be fixed by the Committee or called by any two (2) committee members. Notice of the time and place of the meeting shall be given to each member of the Committee in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors or in such other manner as the Executive Committee by resolution may prescribe.

Section 5.5 Quorum and Voting. A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. The acts of the majority of the members of the Executive Committee present at a meeting at which a quorum is present shall be the acts of the Executive Committee. At all meetings of the Executive Committee, each member present shall have one (1) vote which shall be cast by him in person.

Section 5.6 Waiver of Notice. Any actions taken or approved at any meeting of the Executive Committee, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the members not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof.

Section 5.7 Removal. The entire Executive Committee or any individual member thereof may be removed from the Committee with or without cause by a vote of a majority of the directors.

Section 5.8 Vacancies. The Board of Directors shall fill all vacancies in the Executive Committee which may occur from time to time.

Section 5.9 Action Without Meeting; Telephonic Meeting. Action may be taken by the Executive Committee in the manner allowed by the Board of Directors pursuant to Sections 4.12 and 4.13 of Article IV.

ARTICLE VI

COMMITTEES OF DIRECTORS

Section 6.1 Designation. The Board of Directors may, by resolution passed by a majority of the directors, designate one or more committees, in addition to the Executive Committee authorized in Article V hereof, each committee to consist of two or more of the directors of the Corporation, which to the extent provided in the resolution, shall have and may

 

8

---

exercise the powers of the Board of Directors in the management of the business and affairs of the Corporation, except where action of the Board of Directors is required by law, and may authorize the seal of the Corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or names as may be determined from time to time by resolution adopted by the Board of Directors.

Section 6.2 Procedural Rules. Each committee shall comply with the same procedural rules set forth in Section 5.3 through 5.9, both inclusive, of Article V that are applicable to the Executive Committee.

ARTICLE VII

OFFICERS

Section 7.1 Officers. The officers of the Corporation shall be a President, a Secretary and a Treasurer. The Corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board, a Vice Chairman of the Board, a Chief Executive Officer, one or more Senior Vice-Presidents, one or more Vice-Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with Section 7.3. One person may hold two or more offices; provided that no person shall at the same time hold the offices of President and Secretary.

Section 7.2 Election. The officers of the Corporation, except such officers as may be appointed in accordance with Section 7.3 or Section 7.6, shall be elected annually by the Board of Directors, and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 7.3 Subordinate Officers. The Board of Directors may appoint, and may empower the President to appoint, such other officers as the business of the Corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 7.4 Removal. Any officer may be removed, either with or without cause, by the Board of Directors, at any regular or special meeting thereof, or, except in case of an officer chosen by the Board of Directors, by any officer upon whom such power of removal may be conferred by the Board of Directors.

Section 7.5 Resignation. Any officer may resign at any time by giving written notice to the Board of Directors, or to the President, or to the Secretary of the Corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

 

9

---

Section 7.6 Vacancies. A vacancy in any office because of death, removal, resignation, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 7.7 Chairman of the Board. The Chairman of the Board, shall, if present, preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7.8 Vice Chairman of the Board. The Vice Chairman of the Board, if any, shall perform such duties as the Board of Directors shall prescribe. In the absence or disability of the Chairman of the Board, the Vice Chairman shall perform the duties and exercise the powers of the Chairman of the Board.

Section 7.9 Chief Executive Officer. The Chief Executive Officer shall be subject to the control of the Board of Directors and exercise and perform such powers and duties as may be assigned to him by the Board of Directors.

Section 7.10 President. The President shall be subject to the control of the Board of Directors, have general supervision, direction and control of the business, finances and affairs of the Corporation and all other powers normally held and exercised by the person serving as President of a corporation. The President shall:

(a) In the absence of the Chairman of the Board or Vice Chairman of the Board, preside at all meetings of the shareholders and Board of Directors;

(b) Sign or countersign, as may be necessary, all such bills, notes, checks, contracts and other instruments as may pertain to the ordinary course of the business of the Corporation;

(c) Execute deeds, bonds, mortgages, and contracts required to be executed under the seal of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the Board of Directors to some other officer or agent of the Corporation;

(d) Have the power to appoint all employees and agents of the Corporation whose appointment is not otherwise provided for and to fix the compensation thereof subject to the provisions of these Bylaws and subject to the approval of the Board of Directors and to remove or suspend any employee or agent who shall not have been appointed by the Board of Directors and to suspend for cause, pending final action by the body which shall have appointed him, any officer other than an elected officer, or any employee or agent who shall have been appointed by the Board of Directors;

 

10

---

(e) Present a complete report of the business of the Corporation for the preceding fiscal year at the annual meeting of the shareholders and report to the Board of Directors from time to time all matters coming to his attention which materially affect the business of the Corporation; and

(f) Serve as a member of the Board of Directors and an ex-officio member of all standing committees, including the Executive Committee, if any; and possess such usual powers and duties of supervision and management as may pertain to the office of the President and such other powers and duties as may be prescribed by the Board of Directors or these Bylaws.

Section 7.11 Senior Vice-President. The Senior Vice-President, if any, shall be the executive officer of the Corporation next in authority to the President, whom he shall assist in the management of the business of the Corporation and the implementation of orders and resolutions of the Board of Directors. In the absence of the Chairman of the Board, the Vice Chairman of the Board and the President, he shall preside at all meetings of the shareholders and of the directors, and shall exercise all other powers and perform all other duties of the Chairman of the Board, Vice Chairman of the Board and the President. The Senior Vice-President shall perform such other duties as the Board of Directors may from time to time prescribe and shall have all authority conferred upon a Vice-President by these Bylaws.

Section 7.12 Vice-President. In the absence or disability of the President, the Vice-Presidents, if any, in order of their rank as fixed by the Board of Directors or, if not ranked, the Vice-President designated by the Board of Directors, shall perform all 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. The Vice-Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 7.13 Secretary. The Secretary shall:

(a) Attend all meetings of the Board of Directors and the shareholders and record all votes and the minutes of all proceedings in a book to be kept for that purpose and shall, when requested, perform like duties for all committees of the Board of Directors;

(b) Duly give or cause to be given all notices in accordance with these Bylaws or as required by 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) Sign, with the President or Vice-President, all deeds, bonds, mortgages, contracts and other instruments when so ordered;

 

11

---

(e) Keep a register of the post office address of each shareholder which shall be furnished to the Secretary by such shareholder;

(f) Have general charge of the stock transfer books of the Corporation; and

(g) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.14 Assistant Secretaries. In the absence of the Secretary or in the event of his death, inability or refusal to act, the Assistant Secretaries in the order of their length of service as Assistant Secretary, unless otherwise determined by the Board of Directors, shall perform the duties of the Secretary, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Secretary. They shall perform such duties as may be assigned to them by the Secretary, by the President, or by the Board of Directors.

Section 7.15 Treasurer. The Treasurer shall:

(a) Keep and maintain adequate and correct accounts of the properties and business transactions of the Corporation;

(b) Have charge and custody of and be responsible for all funds and securities of the Corporation; 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 depositories as shall be designated by the Board of Directors;

(c) Prepare, or cause to be prepared, a true statement of the Corporation’s assets and liabilities as of the close of each fiscal year and a true statement of the results of the operations of the Corporation for the fiscal year then ended, all in reasonable detail; and

(d) In general, perform all duties as from time to time may be assigned to him by the President or by the Board of Directors.

Section 7.16 Assistant Treasurers. In the absence of the Treasurer or in the event of his death, inability or refusal to act, the Assistant Treasurers, in the order of their length of service as Assistant Treasurer, unless otherwise determined by the Board of Directors, shall perform the duties of the Treasurer, and when so acting shall have all the powers of, and be subject to, all the restrictions upon the Treasurer. They shall perform such other duties as may be assigned to them be the Treasurer, by the President, or by the Board of Directors.

Section 7.17 Delegation of Duties. In case of the absence or disability of any officer of the Corporation or for any other reason that the Board of Directors may deem sufficient, the Board of Directors may, by a vote of a majority of the whole Board, delegate, for the time being, the powers or duties, or any of them, of such officer to any other officer or to any director.

 

12

---

ARTICLE VIII

SHARES OF STOCK

Section 8.1 Certificates of Stock. A certificate or certificates for shares of the capital stock of the Corporation shall be issued to each shareholder when any such shares are fully paid, showing the number of the shares of the Corporation standing on the books in his name. The form of such certificate shall be determined by the Board of Directors. All such certificates shall be signed by the President or a Vice-President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and Secretary or by a facsimile of the signature of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk. Even though an officer who signed, or whose facsimile signature has been written, printed or stamped on a certificate for shares, shall have ceased by death, resignation or otherwise to be an officer of the Corporation before such certificate is delivered by the Corporation, such certificate shall be as valid as though signed by a duly elected, qualified and authorized officer, if it be countersigned by a transfer agent or transfer clerk. Such certificates shall also be numbered and sealed with the seal of the Corporation.

Section 8.2 Record of Shareholders. There shall be kept at the registered office of the Corporation in the State of Oklahoma a record containing the names and addresses of all shareholders of the Corporation, arranged in alphabetical order, the number and class of shares held by each and the dates when they respectively became the owners of record thereof; provided that the foregoing shall not be required if the Corporation shall keep at its registered office a statement containing the name and post office address, including street number, if any, of the custodian of such record. Duplicate lists may be kept in such other state or states as may, from time to time, be determined by the Board of Directors.

Section 8.3 Transfer Agents and Registrars. The Board of Directors may, in its discretion, appoint one or more banks or trust companies in such city or cities as the Board of Directors may deem advisable, from time to time, to act as Transfer Agents and Registrars of the shares of stock of the Corporation; and, upon such appointments being made, no certificate representing shares shall be valid until countersigned by one of such Transfer Agents and registered by one of such Registrars.

Section 8.4 Transfer of Shares. Transfers of stock of the Corporation shall be made on the books of the Corporation only upon authorization by the registered holder thereof or by his attorney lawfully constituted in writing and on surrender and cancellation of a certificate or certificates for a like number of shares of the same class properly endorsed or accompanied by a duly executed stock transfer power and payment of all taxes thereon, with such proof of authenticity of the signatures as the Corporation or its transfer agents may reasonably require.

 

13

---

Section 8.5 Shareholders Record Date and Closing Stock Books. The Board of Directors may fix, in advance, a time as a record date for the determination of the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, not more than sixty (60) days prior to the date of the meeting nor less than ten (10) days prior to the date of the meeting. The Board of Directors may also fix, in advance, a time as a record date for the determination of shareholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion, or exchange of shares or for the purpose of any other lawful action which shall be not more than sixty (60) days prior to the date of the event for the purpose of which it is fixed. When a record date is so fixed, only shareholders of record on that date are entitled to notice of and to vote at the meeting or to receive a dividend, distribution, or allotment of rights, or to exercise the rights, as the case may be, notwithstanding any transfer of any shares on the books of the Corporation after the record date.

Section 8.6 Registered Shareholders. The Corporation shall be entitled to recognize the holder of record of any share or shares of stock as the exclusive owner thereof for all purposes, and, accordingly, shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

Section 8.7 Lost Certificates. No new certificate for shares shall be issued in lieu of an old one unless the latter is surrendered and cancelled at the same time; provided that if any certificate for shares is lost, stolen, mutilated or destroyed, the Board of Directors may authorize the issuance of a new certificate in lieu thereof, upon such terms and conditions, including indemnification of the Corporation reasonably satisfactory to it, as the Board of Directors shall determine.

Section 8.8 Treasury Shares. Treasury shares, or other shares not at the time issued and outstanding, shall not, directly or indirectly, be voted at any meeting of the shareholders, or counted in calculating the actual voting power of shareholders at any given time.

Section 8.9 Fractional Shares. Certificates of fractional shares of stock may be issued at the discretion of the Board of Directors. The registered ownership of any fractional share represented by such certificate or certificates shall entitle the holder thereof to receive dividends, participate in the corporate assets in the event of liquidation of the Corporation and to exercise voting rights in person or by proxy.

ARTICLE IX

EXECUTION OF INSTRUMENTS

Section 9.1 Contracts. The Board of Directors or any committee thereunto authorized may authorize any officer or officers, agent or agents, to enter into any contract or to execute and deliver in the name and on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

 

14

---

Section 9.2 Checks and Drafts. All checks, drafts or other orders for the payment of money, notes, acceptances or other evidences of indebtedness issued by or 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 be determined from time to time by resolution of the Board of Directors.

Section 9.3 Deposits; Bank Accounts. 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 depositories as the Board of Directors may from time to time designate or as may be designated by an officer or officers of the Corporation to whom such power of designation may from time to time be delegated by the Board of Directors. The Board of Directors may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as it may deem expedient. Unless otherwise provided by resolution of the Board of Directors, endorsements for deposit to the credit of the Corporation in any of its duly authorized depositories may be made by hand-stamped legend in the name of the Corporation or by written endorsement by any officer without countersignature.

Section 9.4 Loans. No loans shall be contracted on behalf of the Corporation unless authorized by the Board of Directors, but when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated, up to the amount so authorized, by the President or a Vice-President or the Treasurer; and such officers are hereby severally authorized to execute and deliver in the name and on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all loans, advances and indebtedness by hypothecating, pledging or transferring any part or all of the property of the Corporation, real or personal, at any time owned by the Corporation.

Section 9.5 Sale or Transfer of Securities Held by the Corporation. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board of Directors, or of any committee thereunto duly authorized, and when so authorized to be sold, transferred or otherwise disposed of, may be transferred from the name of the Corporation by the signature of the President or a Vice-President and the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary.

Section 9.6 Execution of Proxies. The Chairman of the Board, Vice Chairman of the Board, President, or, in the absence or disability of the President, a Vice-President, may authorize from time to time the signature and issuance of proxies to vote upon shares of stock of other corporations standing in the name of the Corporation or authorize the execution of consents to action taken or to be taken by such other corporation. All such proxies and consents shall be signed in the name of the Corporation by the Chairman of the Board, the Vice Chairman of the Board, the President or a Vice-President and by the Secretary or an Assistant Secretary.

 

15

---

ARTICLE X

INDEMNIFICATION

Section 10.1 Indemnification: Actions Other Than by the Corporation. To the fullest extent permitted by law, the Corporation shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, including without limitation, an action by or in the right of the Corporation, by reason of the fact that he is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding.

Section 10.2 Advance Indemnification. Expenses incurred by a director, officer, employee or agent in defending a civil or criminal action, suit or proceeding and entitled to indemnification pursuant to this Article X may be paid by the Corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of the director, officer, employee or agent to repay such amount if so requested by the Corporation, unless it shall ultimately be determined that he is entitled to be indemnified by the Corporation as authorized in this Article X.

Section 10.3 Non-Exclusive Indemnification. The indemnification provided by this Article X shall not be deemed exclusive of any other rights to which those seeking indemnification may be entitled under any statute, the Certificate of Incorporation, these Bylaws, any contract, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 10.4 Insurance. The Corporation shall have power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising our of his status as such, whether or not the Corporation would have the power to indemnify him against such liability under the provisions of this Article X, the Certificate of Incorporation, or under any provision of law.

Section 10.5 Constituent Corporation. For the purposes of this Article X, references to the “Corporation” shall include, in addition to the resulting corporation, any constituent corporation, including any constituent of a constituent, absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the

 

16

---

request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article X with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

ARTICLE XI

GENERAL PROVISIONS

Section 11.1 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board of Directors.

Section 11.2 Seal. The corporate seal of the Corporation shall be circular in form and shall contain the name of the Corporation, the word “Corporate Seal, OKLAHOMA” and such other words or information as shall be determined by the Board of Directors. The seal may be used by causing it or a facsimile thereof to be impressed, affixed or otherwise reproduced.

Section 11.3 Dividends. The Board of Directors may, out of funds legally available therefor, from time to time at any regular or special meeting, declare, and the Corporation may pay, dividends on its outstanding shares of capital stock. Such dividends may be made in cash, property or shares of the capital stock or other securities of the Corporation.

Section 11.4 Notice. Whenever any notice is required or permitted to be given under the provisions of any law, the Certificate of Incorporation or these Bylaws, it shall not be construed to require personal notice unless expressly so stated, but such notice may be given by depositing the same in the United States mail, postage prepaid, addressed to the person entitled thereto at his address as it appears on the records of the Corporation, and such notice shall be deemed to have been given on the day of such mailing. Notice shall be deemed to have been duly given on the date of service if served personally or by telex, telecopier, cable, telegram or similar communication. Shareholders not entitled to vote shall not be entitled to receive notice of any meetings except as otherwise provided by statute.

Section 11.5 Waiver of Notice. Whenever any notice whatever is required to be given under the provisions of any law or of the Certificate of Incorporation or of these Bylaws, a written waiver thereof, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, 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 annual or special meeting of the shareholders, directors, or members of a committee of directors need be specified in any written waiver of notice unless so required by the Certificate of Incorporation.

 

17

---

Section 11.6 Conflicts of Interest. Except as may be otherwise provided by the laws of the State of Oklahoma or the Certificate of Incorporation, no contract or transaction between the Corporation and one or more of its directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates in the meeting of the Board of Directors or a committee thereof which authorizes the contract or transaction, or solely because his or their votes are accounted for such purpose; if: (a) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or such committee, and the Board of Directors or such committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a quorum; or (b) the material facts as to the relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the shareholders; or (c) the contract or transaction is fair as to the Corporation as of the time it is authorized, approved or ratified, by the Board of Directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors, or a committee which authorizes the contract or transaction.

Section 11.7 Loans to Officers or Employees. The Corporation may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Corporation or of its subsidiary, including any officer or employee who is a director of the Corporation or its subsidiary whenever, in the judgment of the directors, such loan, guaranty or assistance may reasonably be expected to benefit the Corporation. The loan, guaranty or other assistance may be with or without interest, and may be unsecured, or secured in such manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Corporation. Nothing contained in this section shall be construed to deny, limit or restrict the powers of guaranty or warranty of any Corporation at common law or under any statute.

Section 11.8 Amendment. These Bylaws may be amended, altered, changed or repealed at any annual or special meeting of the shareholders, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of a majority of the shares issued and outstanding, and entitled to vote thereat. These Bylaws also may be amended, altered, changed or repealed as permitted by the Certificate of Incorporation of the Corporation, at any annual or special meeting of the Board of Directors, provided notice of the proposed amendment, alteration, change or repeal is contained in the notice of such meeting, by the affirmative vote of the members of the Board of Directors. Notwithstanding the preceding sentence, the fact that such power to amend, alter, change or repeal has been conferred upon the Board of Directors shall not divest the shareholders of the power, nor limit their power to amend, alter, change or repeal these Bylaws.

 

18

---

These Amended and Restated Bylaws of Trison Construction, Inc. set forth the entire Bylaws of the Corporation and are effective as of the 7th day of July, 2000, the date that such Amended and Restated Bylaws of Trison Construction, Inc. were approved by the director of the Corporation.

Dated: July 7, 2000

 

 

ATTEST:

/s/ Ann Muise

Secretary

[Corporate Seal]

 

19

Exhibit 3(i).30

SECOND AMENDMENT

TO THE

CERTIFICATE OF INCORPORATION

OF

THE ENVIRONMENTAL GROUP, INC.

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, Oklahoma 73105

The Environmental Group, Inc., an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as previously amended on January 28, 2002, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

1. Article One (1) of the Certificate of Incorporation of the Corporation is hereby amended by striking the name “The Environmental Group, Inc.” and substituting the following new name of the Corporation in lieu thereof: “XpediAir, Inc.”

2. There are no changes to Articles Two (2) through Nine (9) of the Certificate of Incorporation of the Corporation.

3. This Second Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH SECOND AMENDMENT TO THE CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA GENERAL CORPORATION ACT.

IN WITNESS WHEREOF, the undersigned does cause this Second Amendment to the Certificate of Incorporation of the Corporation to be signed by its Executive Vice President and attested by its Asst. Secretary this 17th day of July, 2003.

 

						THE ENVIRONMENTAL GROUP, INC.
ATTEST:
By:		/s/ David M. Shear				By:		/s/ Barry H. Golsen
		Asst. Secretary						Executive Vice President

---

CERTIFICATE OF MERGER

OF

CHP CORPORATION, AN OKLAHOMA CORPORATION

INTO

THE ENVIRONMENTAL GROUP, INC., AN OKLAHOMA CORPORATION

The undersigned corporation

DOES HEREBY CERTIFY:

FIRST: That the name and state of incorporation of each of the constituent corporations of the merger is as follows:

 

SECOND: That an Agreement and Plan of Merger between the parties to the merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations in accordance with the requirements of Section 1081 of the Oklahoma General Corporation Act.

THIRD: That the name of the surviving corporation of the merger is The Environmental Group, Inc.

FOURTH: That the Certificate of Incorporation of The Environmental Group, Inc., an Oklahoma corporation which is surviving the merger, shall be the Certificate of Incorporation of the surviving corporation.

---

FIFTH: That the executed Agreement and Plan of Merger is on file at the principal place of business of the surviving corporation, the address of which is 16 South Pennsylvania, Oklahoma City, Oklahoma 73107.

SIXTH: That a copy of the Agreement and Plan of Merger will be furnished by the surviving corporation, on request and without cost, to any stockholder of any constituent corporation.

SEVENTH: That this Certificate of Merger shall be effective on the 31st day of December, 2001.

Dated: December 31, 2001

 

 

2

---

FIRST AMENDMENT

TO

CERTIFICATE OF INCORPORATION

OF

THE ENVIRONMENTAL GROUP, INC.

 

TO:	The Secretary of State

State of Oklahoma

101 State Capitol Building

Oklahoma City, OK 73105

The Environmental Group, Inc., an Oklahoma corporation (the “Corporation”), for the purpose of amending its Certificate of Incorporation, as provided by Section 1077 of the Oklahoma General Corporation Act, hereby certifies as follows:

i) Article Four (4) of the Certificate of Incorporation of the Corporation is hereby deleted in its entirety and the following new Article Four (4) is substituted therefor:

4. Capital Stock. This Corporation is authorized to issue only one (1) class of shares of capital stock, to be designated “Common Stock.” The total number of shares of Common Stock which this Corporation shall have authority to issue and the par value of each share of Common Stock are as follows:

 

Total Number Of Shares		Par Value of Each Share				Total Authorized Common Stock
500,000		$	0.10			$	50,000.00

2. There are no changes to Articles One (1) through Three (3) or Articles Five (5) through Nine (9) of the Certificate of Incorporation of the Corporation.

3. The First Amendment to the Certificate of Incorporation of the Corporation was (i) approved by the Board of Directors of the Corporation, (ii) submitted to the shareholder of the Corporation for approval, and (iii) duly adopted and approved by the shareholder of the Corporation.

SUCH FIRST AMENDMENT TO THE CERTIFICATE OF INCORPORATION OF THE CORPORATION WAS DULY ADOPTED IN ACCORDANCE WITH SECTION 1077 OF TITLE 18 OF THE OKLAHOMA STATUTES.

 

1

---

IN WITNESS WHEREOF, the undersigned does cause this First Amendment to the Certificate of Incorporation of the Corporation to be signed by its Vice President and attested by its Asst. Secretary the 22nd day of January, 2002.

 

 

ATTEST:

/s/ David M. Shear

Asst. Secretary

[SEAL]

 

2

---

CERTIFICATE OF INCORPORATION

OF

THE ENVIRONMENTAL GROUP, INC.

TO THE SECRETARY OF STATE OF THE STATE OF OKLAHOMA:

1. Name. The name of the Corporation is The Environmental Group, Inc. (hereinafter referred to as the “Corporation”).

2. Registered Address and Registered Agent. The address of the Corporation’s registered office in the State of Oklahoma is 16 South Pennsylvania, Post Office Box 754, Oklahoma City, Oklahoma 73102 and the registered agent is Heidi Brown.

3. Purpose. The purpose for which the Corporation is formed is to engage in any part of the world in any capacity in any lawful act or activity for which corporations may be organized under the Oklahoma General Corporation Act (the “Act”) and the Corporation will be authorized to exercise and enjoy all powers, rights and privileges which corporations organized under the Act may have under the laws of the State of Oklahoma as in force from time to time, including, without limitation, all powers, rights and privileges necessary or convenient to carry out all those acts and activities in which it may lawfully engage.

4. Capital Stock. The total number of shares of stock which the Corporation will have the authority to issue is five thousand (5,000) shares, each of the shares having a par value of Ten Cents ($.10) a share, thereby resulting in the Corporation having total authorized capital stock in the amount of Five Hundred Dollars ($500.00), all of which will be Common Stock (the “Common Stock”). The shares of Common Stock which the Corporation is authorized to issue may be issued, and treasury stock may be disposed of, for such consideration and on such terms as the Board of Directors determines in its sole discretion and as set forth in a duly adopted corporate resolution.

5. Incorporator. The name and mailing address of the incorporator is:

Irwin H. Steinhorn

210 West Park Avenue, Suite 3000

Oklahoma City, Oklahoma 73102

6. Initial Director. The following will serve as the initial directors of the Corporation until the first annual meeting of shareholders or until the election of successors:

---

The number of Directors shall be as set forth in the Bylaws. The powers of the incorporator are to terminate upon the filing of the Certificate of Incorporation.

7. Powers of Directors. In furtherance and not in limitation of the powers conferred by statute, the Directors are expressly authorized:

 

A.	To authorize and cause to be executed or granted mortgages, security interests and liens upon the real and personal property of the Corporation.

 

B.	To determine the use and disposition of any surplus and net profits of the Corporation including the determination of the amount of working capital required.

 

C.	To set apart out of any of the funds of the Corporation available for dividends a reserve or reserves for any proper purpose, and to abolish any such reserve in the manner in which it was created.

 

D.

When and as authorized by the affirmative vote of the holders of a majority of the stock having voting power, to sell, lease or exchange all or substantially all of the property and assets of the Corporation, including its goodwill and its corporate franchises, upon such terms and conditions and for such consideration, which may consist in whole or in part of money or property including shares of stock in, and/or other securities of, any other corporation or corporations, as the Directors shall deem expedient and for the best interests of the Corporation.

8. Internal Affairs. The following provisions for the regulation of the internal affairs of the Corporation are hereby adopted:

 

A.

The Bylaws for the governing of the Corporation may be adopted, amended, altered, repealed or readopted by the Directors either at any regular or special meeting of the Directors or by the written consent of all Directors, but the powers of the Directors will at all times be subject to the right of the shareholders to adopt, amend or repeal the Bylaws either at any annual or special meeting of shareholders or by the written consent of a majority of the shareholders, and the power of the Directors will not extend to any amendment of the Bylaws respecting the number, qualifications or term of office of the Directors.

 

- 2 -

---

B.

The number of authorized shares of any class or classes of stock may, by amendment to the Corporation’s Certificate of Incorporation, be increased or decreased, but not below the number of shares of such class or classes then outstanding, by the affirmative vote of the holders of a majority of the stock of the Corporation entitled to vote, irrespective of the provisions of 18 Okla. Stat. (S)1077(B)(2).

 

C.

The Corporation shall indemnify, and advance litigation expenses to its officers, directors, employees and agents to the fullest extent permitted by the Oklahoma General Corporation Act and all other laws of the State of Oklahoma. No amendment to or repeal of this Paragraph C shall apply to or have any effect on the liability or alleged liability of any officer, director, employee or agent of this Corporation for or with respect to any acts or omissions of such person occurring prior to the time of such amendment or repeal. On the request of any person who believes he is entitled to indemnification pursuant to the provisions of 18 Okla. Stat. (S)1031(A) or (B), the Directors will by vote at a special meeting, immediately called for such purpose, to determine whether such person has met the standards of conduct set forth in 18 Okla. Stat. (S)1031(A) or (B), as amended, whichever is applicable, subject to the provisions of 18 Okla. Stat. (S)1031(D)(1) and (2), as amended, and, if so, provide for such indemnification.

 

D.

Meetings of shareholders may be held within or without the State of Oklahoma, as the Bylaws may provide. The books of the Corporation may be kept (subject to applicable law) inside or outside the State of Oklahoma at such place or places as may be designated from time to time by the Directors or in the Bylaws of the Corporation. Elections of Directors need not be by written ballot unless the Bylaws of the Corporation so provide.

 

E.

To the fullest extent permitted by law, no contract or transaction between the Corporation and one or more of the Corporation’s Directors or officers, or between the Corporation and any other corporation, partnership, association or other organization in which one or more of the Corporation’s Directors or officers are directors or officers or have a financial interest, shall be void or voidable solely for this reason, or solely because the Corporation’s Directors or officers are present at or participate in the meeting of the Board of Directors or committee thereof which authorizes the contract or transaction, or solely because the Corporation’s Directors or officers or their votes are counted for such purposes.

 

F.

To the fullest extent that the Act permits the limitation or elimination of the liability of Directors, no director shall be personally liable to the corporation or its shareholders for monetary damages for breach of fiduciary duty as a director; provided that such provision shall not eliminate or limit the liability of a director (a) for any breach of the director’s duty of

 

- 3 -

---

loyalty to the corporation or its shareholder, or (b) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of the law, or (c) under Section 1053 of the Oklahoma General Corporation Act, or (d) for any transaction from which the director derived an improper personal benefit. No amendment to or repeal of this Paragraph F shall apply to or have any effect on the liability or alleged liability of any director of this Corporation for or with respect to any acts or omissions of such director occurring prior to such amendment or repeal.

9. Creditors. Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its shareholders or any class of them, any court of equitable jurisdiction within the State of Oklahoma, on the application in a summary way of this Corporation or of any creditor or shareholder thereof or on the application of receiver or receivers appointed for this Corporation under the provisions of Section 1106 of the Act or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under the provisions of Section 1100 of the Act, may order a meeting of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, to be summoned in such manner as the court directs. If a majority in number representing three-fourths (3/4ths) in value of the creditors or class of creditors, and/or of the shareholders or class of shareholders of this Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as a consequence of such compromise or arrangement, the compromise or arrangement and the reorganization, if sanctioned by the court to which the application has been made, shall be binding on all the creditors or class of creditors, and/or on all the shareholders or class of shareholders, of this Corporation, as the case may be, and also on this Corporation.

 

- 4 -

---

THE UNDERSIGNED, being the incorporator for the purpose of forming a corporation pursuant to the Act, does hereby make this Certificate, and this acknowledgment, by hereby declaring and certifying that this is the act and deed of the undersigned and that the facts herein stated are true, and accordingly have hereunto set my hand this 28th day of August, 1992.

 

 

- 5 -

Exhibit 3(ii).30

FIRST AMENDMENT

TO THE

BYLAWS

OF

THE ENVIRONMENTAL GROUP, INC.

(an Oklahoma corporation)

The following amendment to the Bylaws of The Environmental Group, Inc., now known as XpediAir, Inc. (the “Corporation”), was approved and adopted by the Board of Directors of the Corporation by unanimous written consent on July 17, 2003.

1. Article One (1) of the Bylaws of the Corporation is hereby amended by striking the name “The Environmental Group, Inc.” and substituting the following new name of the Corporation in lieu thereof:

“XpediAir, Inc.”

2. There are no changes to Articles Two (2) through Fourteen (14) of the Bylaws of the Corporation.

The Bylaws of the Corporation, as amended and modified by this First Amendment to the Bylaws of the Corporation, set forth the entire Bylaws of the Corporation. The amendment to the Corporation’s Bylaws as provided in this First Amendment to the Bylaws of the Corporation is effective as of the 17th day of July, 2003, the date that such amendment was approved by the Board of Directors of the Corporation.

Dated: July 17, 2003

 

 

ATTEST:

/s/ David M. Shear

Asst, Secretary

[Corporate Seal]

---

BYLAWS

OF

THE ENVIRONMENTAL GROUP, INC.

(an Oklahoma corporation)

ARTICLE 1 – NAME

The name of the Corporation is The Environmental Group, Inc. (hereinafter referred to as the “Corporation”).

ARTICLE 2 – OFFICE

2.1 Principal Office. The principal office of the Corporation will be 16 South Pennsylvania, Oklahoma City, Oklahoma 73102.

2.2 Other Offices. The Corporation may also have branch offices in such other places as the Board of Directors (the “Board”) in its discretion may from time to time determine.

ARTICLE 3 – SHAREHOLDERS’ MEETINGS

3.1 Meeting Place. Meetings of the shareholders will be held at the principal office of the Corporation or at such other place as is determined from time to time by the Board and stated in the meeting notice.

3.2 Annual Meetings. An annual meeting of shareholders will be held on the second Tuesday in April of each year; provided that any such meeting may be held at any other time designated by the Board or by the majority of the shareholders entitled to vote at such meeting. At such annual meetings, directors will be elected, reports of affairs of the Corporation will be considered and any other business may be transacted which is within the powers of the shareholders to transact and which may be properly brought before the meeting.

3.3 Special Meetings. Special meetings of the shareholders may be called for any purpose by the president (or, in his absence or disability, by a vice president), by the Board, or by a notice signed by shareholders holding a majority or more of the issued and outstanding voting shares of the Corporation. Upon a request being made by written notice to the president or, in his absence or disability, to a vice president, or to the secretary, by any person or persons herein empowered to call a special meeting, if such officer is the secretary, he will give notice to the shareholders or, if such officer is other than the secretary, he will cause the secretary to give notice to the shareholders that such meeting has been called for the purpose or purposes stated in such request and is to be held at a specified time, which time will not be less than ten (10) days or more than sixty (60) days after the receipt of such request. If notice of such meeting is not given to the shareholders within seven (7) days after the receipt of such request, such person or persons making such request may fix the time of such special meeting and give notice thereof in the same manner as hereinafter provided.

---

3.4 Notice of Meeting. Subject to the provisions of paragraph 3.11 hereof, a written notice of each meeting of the shareholders stating the date, hour and place and in case of special meetings the purpose thereof, will be mailed by the secretary of the Corporation, postage prepaid, to each shareholder entitled to vote, at such address as appears on the books of the Corporation, at least ten (10) days but not more than sixty (60) days before the date of each meeting.

3.5 Quorum. A majority of the issued and outstanding shares entitled to vote (exclusive of treasury shares, if any) will constitute a quorum at meetings of shareholders. When a quorum is present, a majority of the shares represented and entitled to vote at the meeting will decide any question brought before such meeting. In the absence of a quorum, those shareholders present may adjourn the meeting from time to time until a quorum is obtained, but until a quorum is obtained, no other business may be transacted.

3.6 Voting. At each meeting of shareholders, every shareholder will be entitled to vote in person or by proxy and, unless modified by a cumulative voting provision contained in the Corporation’s Certificate of Incorporation, will have one vote for each share standing registered in his name at the closing of the transfer books for such meeting, or the record date fixed for such meeting by the Board, as the case may be, or standing registered in his name at the time of such meeting if neither a date for the closing of the transfer books nor a record date for such meeting has been fixed by the Board. The voting at all meetings of shareholders may be oral, but any qualified voter may demand a vote by written ballot, whereupon such vote will be taken by written ballot stating the name of the shareholder, the number of shares voted and, if such ballot be cast by proxy, the name of such proxy.

3.7 Proxies. Any shareholder entitled to vote may vote by proxy. The appointment of a proxy will be in writing signed by the shareholder but will require no other attestation. Each proxy statement will be filed with the secretary of the Corporation at or before the meeting. In no case will a proxy be appointed for a period of over seven (7) years. If any shareholder appoints two (2) or more persons to act as proxies and if the instrument does not otherwise provide, a majority of such persons present at the meeting (or if only one is present, then that one) may exercise all of the powers conferred by such instrument on all of the persons so appointed, and if such proxies are equally divided as to the right and manner of voting in any particular case, the vote will be divided among the proxies. Any person holding shares in a representative or fiduciary capacity which he may represent in person may represent the same by proxy and confer general or discretionary power on such proxy. The authority of a proxy not coupled with an interest may be terminated at will. Unless otherwise provided in the appointment, the proxy’s authority will cease three

 

- 2 -

---

(3) years after the appointment. The termination of a proxy’s authority by act of the shareholder will, subject to the time limitations herein set forth, be ineffective until written notice of the termination has been given to the secretary of the Corporation. Unless otherwise provided therein, an appointment filed with the secretary will have the effect of revoking all proxy appointments of prior date. A proxy’s authority will not be revoked by the death or incapacity of the shareholder, unless before the vote is cast or the authority is exercised written notice of such death or incapacity is given to the secretary of the Corporation.

3.8 Officers of Shareholders’ Meetings. The president, if present, will preside at all meetings of shareholders. In his absence, the next officer, in due order, who may be present, will preside. The secretary of the Corporation will act as secretary of all shareholders’ meetings and will keep a true and correct record of the proceedings of all meetings.

3.9 Order of Business. The order of business at the annual meeting, and so far as practicable at all other meetings of the shareholders, will be as follows: (1) calling meeting to order; (2) calling of roll and checking proxies; (3) proof of notice of meetings; (4) reading of any unapproved minutes; (5) reports of officers; (6) reports of committees; (7) election of directors and establishment of fees, if any, therefor; (8) unfinished business; (9) new business; and (10) adjournment.

3.10 Approval of Action Taken. Any transactions of the shareholders at any meeting, regardless of how call was made or notice given, will be valid as though transacted at a meeting duly held by regular call and notice if a quorum is present and if before or after the meeting each of the shareholders entitled to vote and not present in person or by proxy signs a written waiver of notice. All such waivers of notice will be filed with the secretary and made a part of the records of the meeting.

3.11 Consent to Action. Any action, which under any provision of the laws of the State of Oklahoma, the provisions of the Certificate of Incorporation or these Bylaws might be taken at either an annual or special meeting of the shareholders, may be taken without a meeting, prior notice or a vote if a consent in writing, setting forth the action so taken, is made and signed by the shareholders of outstanding stock having not less than the minimum number of votes that would be necessary to take such action at a meeting at which all shares entitled to vote were present and voted, and such consent will be filed with the secretary and made a part of the corporate records. Prompt notice of the taking of corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

 

- 3 -

---

ARTICLE 4 – DIRECTORS

4.1 Authority. The Board will have charge of the property, interests, business, transactions and affairs of the Corporation with full power and authority to manage, control and conduct the same. In addition to the powers and authorities expressly conferred on the Board by these Bylaws, the Board may exercise all powers and take such actions as are not by statute, the Certificate of Incorporation or these Bylaws required to be exercised by the shareholders.

4.2 Number; Term of Office. The Board will consist of not less than one (1) nor more than five (5) directors. The shareholders at any annual meeting and at any special meeting called for such purpose may determine the number of directors which will constitute the Board, and the number so determined will remain fixed until changed at a subsequent meeting. The directors, except for the initial director(s) which may have been named in the Certificate of Incorporation of the Corporation, will be selected at the annual shareholders meeting and will serve for one (1) year or until a successor is elected and qualified (even though necessitating a term in excess of one (1) year).

4.3 Qualification. A director need not be a shareholder of the Corporation.

4.4 Vacancies. Any vacancy occurring in the Board may be filled by a majority of the remaining directors or by a sole remaining director, and each person so elected will serve as a director until removed or until a successor is elected by the shareholders.

4.5 Removal. The entire Board or any director may be removed from office with or without cause by a vote of shareholders holding a majority of the outstanding shares entitled to vote at any annual or special meeting of shareholders.

4.6 Declared Vacancies. The Board will declare vacant the office of a director if the director is declared of unsound mind by an order of court, convicted of a felony, fails to accept such office in writing within thirty (30) days after his election or habitually fails to attend meetings of the Board.

4.7 Compensation of Directors. Directors will receive such fees for their services as are determined from time to time by the Board, provided that nothing herein contained will preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

4.8 Regular Meetings. An annual meeting of the Board for the purpose of electing officers of the Corporation and the transaction of any other business coming before such meeting will be held each year immediately following the adjournment of the annual shareholders’ meeting, and no notice of such meeting will be necessary. Other regular meetings of the Board may be held without notice at such time as is from time to time determined by the Board.

 

- 4 -

---

4.9 Special Meetings. Special meetings of the Board may be held at any time on the written call of the president or, if the president is absent or unable to act, by any other officer in order of seniority. Such meetings may also be held at any time without call or notice on the unanimous consent of the directors.

4.10 Notice of Meetings. The secretary of the Corporation will serve written notice to each director of all regular or special meetings, except the annual meeting immediately following the annual shareholders’ meeting. Such notice will be served either personally or by mail not less than seven (7) days before any meeting, giving the time, place, and in case of special meetings, the purpose thereof, and no business will be considered at any special meeting other than the purpose stated in such notice. Any director may, in writing, either before or after the meeting waive notice thereof, and without notice, any director by attendance at any meeting will be deemed to have waived such notice.

4.11 Memorandum of Action. Any action which might be taken at any meeting of the Board or any committee thereof may be taken without a meeting if all members of the Board or committee thereof consent to such action in writing, and such written consent is filed with the minutes of the Board or the committee.

4.12 Quorum. At all meetings of the Board, a quorum will consist of a majority of the directors. The acts of a majority of the directors present at a meeting at which a quorum is present will be the acts of the Board. A minority of the Board present at any regular or special meeting may, in the absence of a quorum, adjourn to a later date, but may not transact any other business until a quorum has been secured. At any adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting adjourned.

4.13 Telephonic Conferences. Directors may participate in a meeting of the Board by means of telephone conference or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section will constitute presence in person at such meeting.

4.14 Election of Officers. At the annual meeting of the Board, the Board will elect a president, a secretary, a treasurer and such vice presidents and additional officers of the Corporation as the Board, from time to time, determines, to serve for the ensuing year or until the election of their respective successors. The Board will fix the compensation of all officers of the Corporation.

 

- 5 -

---

4.15 Order of Business. The order of business, at the annual meetings and so far as practical at all other meetings of the Board will be as follows: (1) calling meeting to order; (2) proof of notice of meeting; (3) reading of any unapproved minutes; (4) reports of officers and directors; (5) reports of committees; (6) election of officers; (7) unfinished business; (8) new business; and (9) adjournment.

4.16 Meeting Place. Meetings of the Board may be held at such place as is determined by the Board and stated in the meeting notice.

ARTICLE 5 – EXECUTIVE COMMITTEE

5.1 Election. The Board may elect an Executive Committee composed of one or more directors and such alternate members as the Board desires. In the absence or disqualification of any committee member, the other member or members present, whether or not constituting a quorum, may unanimously appoint another director to act at the meeting in the place of the absent or disqualified member.

5.2 Duties. The Executive Committee will have all of the powers of the Board in the interim between meetings of the Board except as may be prohibited by the Oklahoma General Corporation Act, more specifically 18 Okla. Stat. (S)1027 (1989). The Executive Committee will keep minutes of its proceedings which will be reported to the directors at the next Board meeting.

5.3 Meetings. The Executive Committee will meet at such times as may be fixed by its chairman or on the call of the president. Notice of each meeting will be given to each member of the Executive Committee in the manner provided for notice of special meetings of the Board.

5.4 Quorum; Voting. A majority of the members of the Executive Committee will constitute a quorum. The act of the majority of the members of the Executive Committee present at a meeting at which a quorum is present will be the act of the Executive Committee. At all meetings of the Executive Committee, each member present will have one (1) vote which will be cast in person.

5.5 Waiver of Notice. Any actions taken at any meeting of the Executive Committee will be as valid as though taken at a meeting duly held after regular call and notice, with a quorum present, if either before or after the meeting, each of the members of the Executive Committee not present signs a written waiver of notice.

5.6 Removal. The entire Executive Committee or any member thereof may be removed with or without cause by a vote of the Board.

5.7 Vacancies. The Board will fill all vacancies in the Executive Committee.

 

- 6 -

---

5.8 Action Without Meeting. Any action which might be taken at a meeting of the Executive Committee may be taken without a meeting if a written consent thereof is signed by all members of the Executive Committee and filed with the minutes of the Executive Committee.

5.9 Telephonic Conferences. Members of the Executive Committee may participate in a meeting of the Executive Committee by means of telephone conference or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this section will constitute presence in person at such meeting.

ARTICLE 6 – COMMITTEES OF DIRECTORS

6.1 Designation. The Board may designate one or more committees (in addition to the Executive Committee provided for in Article 5 hereof), to exercise the powers of the Board and to perform such actions as the Board might determine from time to time.

6.2 Procedural Rules. Each committee will be subject to the limitations set forth in Article 5 hereof and limitations imposed by the Board in the designation creating such committee, and such committee will comply with the procedural rules applicable to the Executive Committee.

ARTICLE 7 – OFFICERS

7.1 Enumeration; Election; Qualification. The officers of the Corporation shall be chosen by the Board and will be a president, one or more vice presidents, secretary, treasurer, and such assistant secretaries and assistant treasurers as the Board, in its discretion, determines. Two or more offices at the same time may be held by the same person; provided, that no person will at the same time hold the office of president and secretary.

7.2. Term of Office; Removal. The officers of the Corporation will hold office until their successors are chosen and qualify. Any officer elected by the Board may be removed at any time with or without cause by the Board.

7.3 Vacancies. If any office becomes vacant for any reason, the vacancy may be filled by the Board.

7.4 The President. The president will: (a) exercise the duties of supervision and management of the business of the Corporation; (b) preside at all meetings of the shareholders and directors; (c) sign such contracts and other instruments as may be required in the ordinary course of the Corporation’s business; (d) sign the minutes of all shareholders’ and directors’ meetings over which the president presided; (e) execute notes, mortgages and other contracts; (f) at the annual meeting of shareholders, submit a report of the operations of the Corporation’s affairs; (g) report to the Board from time to time

 

- 7 -

---

all matters coming to his attention which should be brought to the attention of the Board; (h) be an ex officio member of all standing committees; (i) have such usual powers of supervision and management as may pertain to the office of the president; and (j) perform such other duties as may be properly required by the Board.

7.5 Vice President(s). In the absence, failure or refusal of the president to act, the vice president will perform all duties which would otherwise be performed by the president and shall perform such other duties and have such other powers as the Board may from time to time prescribe.

7.6 Secretary; Assistant Secretary. The secretary will: (a) attend all meetings of the Board and shareholders and record all votes and minutes of such proceedings; (b) issue calls for meetings of shareholders and directors; (c) notify all officers and directors of their election; (d) keep the stock transfer books and other Corporation books and records; transfer stock certificates as required by the transactions of the Corporation and its shareholders; (e) attest the Corporation’s execution of instruments when requested; (f) make such reports to the Board as are requested; (g) prepare such reports as are required by the laws of the jurisdictions in which the Corporation conducts business; (h) perform such other duties as may be prescribed by the president and the Board; (i) allow any director to inspect the books and records of the Corporation; (j) attend to any correspondence requested; and (k) do such other duties as may be incidental to the office or as may be properly assigned by the Board. The assistant secretary or secretaries will perform the duties of the secretary in the case of the secretary’s absence or disability and such other duties as the secretary, president, or the Board may determine.

7.7 Treasurer; Assistant Treasurer. The treasurer will: (a) have custody of all money and securities of the Corporation; (b) keep regular books of account; (c) disburse the funds of the Corporation in payment of the Corporation’s debts as requested by the president and the Board; (d) see that proper vouchers are taken for such disbursements; (e) render to the president and the Board, from time to time, as requested an account of all such transactions and of the financial condition of the Corporation; (f) perform all duties incident to the office or which are properly requested by the president and the Board. The assistant treasurer or treasurers will perform the duties of the treasurer in the event of the treasurer’s absence or disability and such other duties as the treasurer, president or the Board may determine.

7.8 Delegation of Duties. In case of the absence or disability of any officer or for any other reason that the Board deems sufficient, the Board may delegate the powers or duties of an officer to any other officer or to any director.

 

- 8 -

---

ARTICLE 8 – SHARE CERTIFICATES

8.1 Certificates. Each shareholder whose shares have been paid for in full will be entitled to a certificate or certificates evidencing the number of shares standing on the books in the shareholder’s name. Each certificate will be numbered, bear the signatures of the president or vice president, and the treasurer or an assistant treasurer or the secretary or an assistant secretary, certify the number of shares represented by the certificate and be issued in numerical order. A record of each certificate issued will be maintained by the Corporation. Any or all the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if the person who signed the certificate was such officer, transfer agent or registrar at the date of issue.

8.2 Transfer. The secretary will transfer shares on the books of the Corporation on the surrender of the duly endorsed certificate or certificates representing the transferred shares and evidence of compliance with any agreement restricting transfer by which the shareholder is bound. Surrendered certificates will be canceled and new certificates issued to the shareholder entitled thereto.

8.3 Fixing Record Date. In order to determine the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or to receive payment of any dividend or other distribution or allotment of shareholder’s rights, or to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix a date, which date shall not be more than sixty (60) nor less than ten (10) days before the date of such meeting, nor more than sixty (60) days prior to any other action. In such case, only such shareholders of record on the date so fixed will be entitled to such rights notwithstanding any transfer of shares of the Corporation after such record date, and the Corporation shall not be bound to recognize any equitable or other claim or other interest in such shares on the part of any other person, whether or not the Corporation shall have express or other notice thereof.

8.4 Registered Shareholders. The Corporation will be entitled to treat the shareholder of record as the absolute owner thereof and will not be bound to recognize any other claim or interest in such shares on the part of any other person whether or not the Corporation has notice thereof.

8.5 Lost Certificates. Any shareholder claiming a share certificate to be lost, stolen or destroyed will make an affidavit of such fact and advertise the same in such manner as the Board may require, and the Board may in their discretion require such shareholder to give the

 

- 9 -

---

Corporation an indemnity bond in such sum as the Board determines against any claim that might be made on account of the loss of such certificate. A replacement certificate may be issued without advertising and without requiring indemnification when, in the judgment of the Board, it is proper to do so.

8.6 Inspection of Books. Except as required by law, the Board will determine, from time to time, the extent and conditions under which the accounts, books and records of the Corporation will be open to inspection by the shareholders, and the shareholders’ right to inspect will be limited accordingly.

8.7 Treasury Shares. Treasury and other shares not at the time issued and outstanding will not be voted at any meeting of the shareholders or counted in calculating any voting majority.

ARTICLE 9 – FISCAL YEAR

The fiscal year of the Corporation will be determined by the Board.

ARTICLE 10 – EXECUTION OF INSTRUMENTS

10.1 Contracts. The Board may authorize any officer, or agent to execute and deliver on behalf of the Corporation any contract or other instrument, and such authority may be general or may be confined to specific instances.

10.2 Checks; Drafts. All checks, drafts, notes, acceptances, other orders for payment or evidence of indebtedness. issued by the Corporation will be signed by such officers or agents and in such manner as is determined from time to time by the Board.

10.3 Deposits; Bank Accounts. All funds of the Corporation will be deposited from time to time to the credit of the Corporation in such banks, trust companies or other depositories as the Board may from time to time designate or as may be designated by an officer of the Corporation to whom such power of designation may from time to time be delegated by the Board. The Board may make such special rules and regulations with respect to such bank accounts, not inconsistent with the provisions of these Bylaws, as the Board deems expedient. Unless otherwise provided by the Board, endorsements for deposit to the credit of the Corporation may be made by hand-stamped legend in the name of the Corporation or by written endorsement of any officer without countersignature.

10.4 Loans. No loans will be contracted on behalf of the Corporation unless authorized by the Board but, when so authorized, unless a particular officer or agent is directed to negotiate the same, may be negotiated up to the amount so authorized by the president, a vice president or the treasurer, and such officers are hereby severally authorized to execute and deliver on behalf of the Corporation notes or other evidences of indebtedness for the amount of such loans and to give security for the payment of any and all indebtedness by hypothecating any part or all of the real or personal property at any time owned by the Corporation as approved by the Board.

 

- 10 -

---

10.5 Securities. Stock certificates, bonds or other securities at any time owned by the Corporation may be held on behalf of the Corporation or sold, transferred or otherwise disposed of pursuant to authorization by the Board. When so authorized the stock certificates, bonds or other securities may be transferred by the signature of the president.

ARTICLE 11 – DIVIDENDS

11.1 Declaration. Dividends on the stock of the Corporation may be declared by the Board at any regular or special meeting and paid out of the Corporation’s surplus, as defined in and computed in accordance with the provisions of Sections 1035 and 1079 of the Oklahoma General Corporation Act or if there is no such surplus out of the Corporation’s net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year except as limited by Section 1049(A) of the Oklahoma General Corporation Act. Dividends may be paid in cash, in property or in shares of the capital stock.

11.2 Reserve Fund. Before payment of any dividend, there may be set aside out of any funds of the Corporation available for dividends such sums as the Board may from time to time, in its discretion, deem proper as a reserve fund to meet contingencies of the Corporation or for such other purposes as the Board deems conducive to the interests of the Corporation, and the Board may modify or abolish any such reserve in the manner in which it was created.

ARTICLE 12 – NOTICES

12.1 Form of Notices. Whenever notice is required, the same will be given in writing, by mail, by depositing the same in the United States mail addressed to the person entitled to notice at the address on file with the Corporation, and such notice will be deemed to be given at the time when it is mailed.

12.2 Waiver of Notice. Any person may waive any notice required to be given under these Bylaws by a written waiver signed by the person entitled to such notice, whether before or after the time stated therein, and such waiver will be deemed equivalent to the actual giving of such notice.

ARTICLE 13 – AMENDMENTS

These Bylaws may be amended, altered, changed or repealed by the vote of the directors at any regular or special meeting if notice of the proposed amendment is contained in the notice of the meeting.

 

- 11 -

---

ARTICLE 14 – INDEMNIFICATION

14.1 Third Party Actions. The Corporation will have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Corporation) by reason of the fact that such person is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding if 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 the conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere or its equivalent, will not, of itself, create a presumption that such person did not act in good faith and in a manner which 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 reasonable cause to believe that the conduct was unlawful.

14.2 Actions by Corporation. The Corporation will have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in the Corporation’s favor by reason of the fact that such person is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including attorney’s fees actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Corporation; except that no indemnification will be made in respect of any claim, issue or matter as to which such person is adjudged to be liable for negligence or misconduct in the performance of a duty to the Corporation, unless and only to the extent that the court in which such action or suit was brought determines upon application that, despite adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court deems proper.

 

- 12 -

---

14.3 Right to Indemnification. To the extent that any present or former director, officer, employee or person who is or was serving at the request of the Corporation as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise, or any agent of the Corporation or any person who is or was serving at the request of the Corporation as an agent of another corporation, partnership, joint venture, trust or other enterprise, has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Sections 14.1 or 14.2, or in defense of any claim, issue or matter therein, such person will be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred in connection therewith.

14.4 Authorization of Indemnification. Any indemnification under Sections 14.1 or 14.2, unless ordered by a court, will be made by the Corporation only as authorized in the specific case on a determination that indemnification of the director, officer, employee or agent is proper in the circumstances because such person has met the applicable standard of conduct set forth in Sections 14.1 or 14.2. Such determination will be made by the Board by (a) a majority vote of a quorum consisting of directors who were not parties to such action, suit or proceeding, or (b) if such quorum is not obtainable or even if it is obtainable and a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, or (c) by the shareholders.

14.5 Advance Indemnification. Expenses incurred by an officer or director 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 on receipt of an undertaking by or on behalf of such director or officer to repay such amount unless it is ultimately determined that such person is entitled to be indemnified by the Corporation as authorized by the provisions of this Article. Such expenses incurred by other employees and agents may be so paid on such terms and conditions, if any, as the Board deems appropriate.

14.6 Nonexclusive Indemnification. The indemnification and advancement of expenses provided by this Article 14 will not be deemed exclusive of any other rights to which those seeking indemnification might be entitled under any bylaw, agreement, vote of shareholders or disinterested directors or otherwise, both as to action in an official capacity and as to action in another capacity while holding such office, and will continue as to a person who has ceased to be a director, officer, employee or agent and inure to the benefit of the heirs, executors and administrators of such person.

14.7 Insurance. The Corporation will have the power to 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 corporation, partnership, joint venture, trust or other enterprise against any liability asserted against and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this Article 14.

 

- 13 -

---

14.8 Constituent Corporation. For the purposes of this Article, references to “the Corporation” include all constituent corporations absorbed in a consolidation or merger as well as the resulting or surviving corporation so that any person who is or was a director, officer, employee or agent of such a constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise will stand in the same position under the provisions of this Article 14 with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued.

Dated this 25th day of September, 1992.

 

 

- 14 -

Exhibit 3(i).31

ARTICLES OF ORGANIZATION

OF AN

OKLAHOMA LIMITED LIABILITY COMPANY

 

TO:	OKLAHOMA SECRETARY OF STATE

2300 N Lincoln Blvd.,

Room 101, State Capitol Building

Oklahoma City, Oklahoma 73105-4897

The undersigned, for the purpose of forming an Oklahoma limited liability company pursuant to the provisions of 18 O.S., Section 2004, does hereby execute the following articles:

 

1.	The name of the limited liability company is “Zena Energy L.L.C.” (the “Company”).

 

2.	The street address of its principal place of business is:

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

3.	The name and street address of the resident agent in the state of Oklahoma is:

David M. Shear

16 South Pennsylvania Avenue

Oklahoma City, Oklahoma 73107

 

4.	The term of existence is perpetual.

 

5.

To the maximum extent permitted by the Oklahoma Limited Liability Company Act (the “Act”) as now in effect or later amended, no Member shall be personally liable to the Company or its creditors, and no Manager shall be personally liable to the Company, its creditors or any Member, for monetary damages for breach of any duty provided for in the Act; provided however, that the liability of a Manager shall not be limited or eliminated for (a) breach of the Manager’s duty of loyalty to the Company or its Members, (b) an act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the Manager derived an improper personal benefit.

Dated this 3rd day of October, 2012.

 

Exhibit 3(ii).31

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

ZENA ENERGY L.L.C.

THIS AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is made effective the 31^st day of December 2013, by LSB CHEMICAL L.L.C., an Oklahoma limited liability company (the “Member”), the sole member of ZENA ENERGY L.L.C., an Oklahoma limited liability company (the “Company”).

1. Background. Pursuant to the terms of the Realignment Agreement, dated December 20, 2013, Consolidated Industries Corp., an Oklahoma corporation, converted to Consolidated Industries L.L.C., an Oklahoma limited liability company, effective as of 11:58 p.m. on December 31, 2013, and, thereafter, Consolidated Industries L.L.C. contributed 100% of the membership interest in the Company to the Member, effective as of December 31, 2013 (the “Effective Time”). In accordance with the Oklahoma Limited Liability Company Act, as amended from time to time (the “Act”), the Member is entering into this Agreement to (a) amend and restate the Company’s original Operating Agreement, dated October 3, 2012, as amended prior to the date hereof, (b) govern the internal business and affairs of the Company, and (c) establish the rights and obligations of the Member with respect to the Company.

2. Formation, Duration, and Purpose.

 

2.1

Formation. The Company was formed as an Oklahoma limited liability company on October 3, 2012, upon the filing of the Articles of Organization of the Company (the “Articles”) with the Office of the Secretary of State of the State of Oklahoma.

 

2.2

Priority of Authorities. The provisions of this Agreement will be controlling except to the extent the provisions hereof are in direct conflict with provisions of the Articles or the Act which are not permitted to be varied by agreement of the Members, in which event the provisions of the Articles or the Act will control.

 

2.3

Offices. The Company’s registered office in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act. The Company will continuously maintain a registered office in the State of Oklahoma and may also have such other offices and places of business, within or outside the State of Oklahoma, as the business of the Company may require.

 

2.4

Registered Agent. The name and address of the Company’s registered agent in the State of Oklahoma will be as set forth in the Articles until changed in accordance with the Act.

 

2.5

Purpose and Business. The purpose of the Company is to engage in any lawful act or activity for which limited liability companies may be formed under the Act and in any and all activities necessary or incidental to the foregoing. In furtherance of its purpose, the Company will have, and may exercise, all powers

---

now or hereafter conferred by Oklahoma law on limited liability companies organized under the Act. The Company shall have the power to do any and all acts necessary, appropriate, proper, advisable, incidental or convenient to, or for, all protection and benefit of the Company, and will have, without limitation, any and all of the powers that may be exercised on behalf of the Company by the Member.

3. Liability. To the fullest extent permitted by the Act, (a) the Company’s debts, obligations, and liabilities, whether arising in contract, tort, or otherwise, will be solely the Company’s debts, obligations, and liabilities and (b) anything herein to the contrary notwithstanding, except as otherwise expressly agreed in writing, the Member will not be personally liable for any debts, obligations, or liabilities of the Company, whether arising in contract, tort, or otherwise.

4. Board of Managers. The Company has a Board of Managers, which will manage the business of the Company (the “Board of Managers”). The Board of Managers may do all things that are not required to be done by the Member pursuant to the Act or this Agreement. Each member of the Board of Managers will be a “manager” as that term is used in the Act.

 

4.1

Number, Election, Removal and Term of Office. The number of members of the Board of Managers will be set by the Member, but the Board of Managers will consist of at least three and not more than 15 persons. A member of the Board of Managers need not be a member of the Company. The Board of Managers will be selected by the Member. A person designated to serve on the Board of Managers may be removed at any time, with or without cause, by the Member. Each member of the Board of Managers will serve at the pleasure of the Member and will hold office until such member’s successor has been designated or, if earlier, such member’s resignation, death, or removal.

 

4.2

Vacancies. The Member will be entitled to designate a replacement if a vacancy is caused by the resignation, death or removal of any member of the Board of Managers.

 

4.3

Chairman and Vice Chairman. A “Chairman” and “Vice Chairman” may be elected by a majority vote of the members of the Board of Managers. If elected, the Chairman and, in his absence or inability to serve, the Vice Chairman, will preside at all meetings of the Board of Managers and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe. If a Chairman or Vice Chairman is not elected, a chairman chosen by the members of the Board of Managers at the commencement of a meeting of the Board of Managers will act as chairman of and preside at such meeting.

 

4.4

Place of Meetings. The Board of Managers may hold meetings, both regular and special, either within or outside the State of Oklahoma.

 

4.5

Regular Meetings. Regular meetings of the Board of Managers may be held without notice at such time and at such place as determined from time to time by the Board of Managers. At such meetings, the Board of Managers will transact such business as may properly be brought before the meeting.

 

2

---

4.6

Special Meetings. Special meetings of the Board of Managers will be held whenever called by the Chairman, by the Chief Executive Officer, the President, by two or more of the members of the Board of Managers or by the Member. Notice of each such meeting will be given by the Chairman, the Chief Executive Officer, the President, a Vice President, the Secretary or an Assistant Secretary to each member of the Board of Managers by telephone, by facsimile, by electronic mail, in writing or in person at least 48 hours (in the case of notice by telephone, by facsimile, by electronic mail, or in person) or 10 days (in the case of notice by mail) before the time at which the meeting is to be held. Each such notice will state the time and place of the meeting to be so held. No notice of the objects or purposes of any special meeting of the Board of Managers need be given, and, unless otherwise indicated in the notice thereof, any and all business may be transacted at any such special meeting.

 

4.7

Waiver of Notice. Attendance by a member of the Board of Managers at any meeting of the Board of Managers will constitute, for all purposes, the waiver of notice thereof by that member, unless (a) that member attends the meeting for the sole purpose of objecting to the transaction of any business thereat because the meeting is not lawfully called or convened, and (b) that member so objects at the beginning of the meeting and does not otherwise participate therein.

 

4.8

Quorum and Voting. At all meetings of the Board of Managers, a majority of the members of the Board of Managers will constitute a quorum for the transaction of business, and the act of a majority of the members of the Board of Managers present at any meeting at which there is a quorum will be the act of the Board of Managers. If a quorum is not present at any meeting of the Board of Managers, the members of the Board of Managers present at the meeting may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present.

 

4.9

Designation of Committees. The Board of Managers may designate one or more standing or special committees as the Board of Managers may determine from time to time. Any standing or special committee will consist of one or more members of the Board of Managers, and may include one or more individuals who are not members of the Board of Managers or officers of the Company, as determined by the Board of Managers. In the absence or disqualification of a member of a committee, the member or members of such committee present at any meeting of the committee and not disqualified from voting, whether or not they constitute a quorum, may unanimously designate a member of the Board of Managers to act at the meeting in the place of any such absent or disqualified member.

 

3

---

4.10

Functions and Authority of Committees. Any standing committee or special committee designated pursuant to paragraph 4.9 will have such functions as the Board of Managers designates and may, to the extent provided by the Board of Managers, exercise the powers and authority of the Board of Managers in the management of the business and affairs of the Company; provided, however, that no such committee will have power or authority to undertake the following:

 

(a)

amend the Articles or this Agreement;

 

(b)

adopt an agreement of merger or consolidation;

 

(c)

recommend to the Member the sale, lease or exchange of all or substantially all of the Company’s property and assets;

 

(d)

recommend to the Member a dissolution or a revocation of a dissolution of the Company;

 

(e)

declare a distribution of cash or other property of the Company to the Member;

 

(f)

authorize the issuance of additional membership interests;

 

(g)

admit additional members; or

 

(h)

affect the election of the Company to be treated as a disregarded entity for federal income taxation purposes.

 

4.11

Minutes of Committee Meetings. Any standing committee or special committee designated pursuant to paragraph 4.9 will keep regular minutes of its meetings and will deliver to the Board of Managers, when the Board of Managers so requires, copies of such minutes and reports as to committee activities.

 

4.12

Participation by Means of Communication Equipment. The members of the Board of Managers, or of any committee, may participate in its meetings by means of conference telephone or similar communications equipment that enables all persons participating in the meeting to hear and be heard by each other. Such participation will constitute presence in person at such meeting.

 

4.13

Consent in Lieu of Meeting. Any action required or permitted to be taken at any meeting of the Board of Managers, or of any committee thereof, may be taken without a meeting, if a written consent to such action is signed by all members of the Board of Managers, or of such committee, and such written consent is filed with the minutes of proceedings of the Board of Managers or of such committee.

 

4.14

Expenses and Fees of Attendance. The members of the Board of Managers and of any standing or additional committee may be paid their reasonable expenses, if any, of attendance at meetings of the Board of Managers or of such committee and may be paid a fixed fee for attendance at such meetings or a stated salary, as directed by the Board of Managers; provided, however, that no such payment will preclude any member of the Board of Managers or of any standing or additional committee from serving the Company in any other capacity and receiving compensation for such service.

 

4

---

5. Officers.

 

5.1

Number and Appointment. The officers of the Company will consist of a Chairman (if elected), a Vice Chairman (if elected) and a “Chief Executive Officer” (if elected), a “President,” a “Treasurer” and a “Secretary,” and such “Vice Presidents” (any of which may be designated as Senior or Executive Vice President) as the Board of Managers may choose. The Chairman, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, and the Treasurer will be “managers”, as that term is used in the Act, of the Company and, therefore, may exercise all powers given to managers of limited liability companies under the Act in accordance with this Agreement and may execute agreements and other instruments, including, without limitation, deeds for the transfer of real property and mortgages, on behalf of the Company as a “manager” of the Company. The Chief Executive Officer or President, as a “manager” of the Company, shall have the principal authority to act on behalf of the Company in accordance with this Agreement and the directives of the Board of Managers, notwithstanding Section 2018 of the Act. The Board of Managers will elect the Chief Executive Officer, the President and may select one or more Vice Presidents who may be classified by their specific function. The Board of Managers will also elect the Secretary and the Treasurer. The Board of Managers may elect additional officers, including one or more “Controllers,” “Assistant Controllers,” “Assistant Secretaries,” and “Assistant Treasurers.” An officer need not be a member of the Board of Managers and any individual may hold more than one office.

 

5.2

Salaries and Reimbursement of Expenses. The salaries of all officers and employees of the Company will be determined by the Board of Managers. The officers and employees of the Company will receive reimbursement for expenses reasonably incurred in the performance of their duties as the Board of Managers may direct.

 

5.3

Term of Office; Vacancies. The officers of the Company will hold office until their successors are duly elected or chosen and qualify or until their earlier death, removal (in accordance with paragraph 5.14) or resignation. Any vacancy occurring in any office of the Company may be filled by the Board of Managers.

 

5.4

Chief Executive Officer. The Chief Executive Officer of the Company shall have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect.

 

5.5

President. In the absence of the Chief Executive Officer or his inability to serve, the President will be the chief executive officer of the Company and will, in the absence of the Chairman or the Vice Chairman or at such person’s request,

 

5

---

preside at all meetings of the Board of Managers and the Member. The President will have general and active management of the business of the Company and will see that all orders and resolutions of the Board of Managers and the Member are carried into effect. The President (a) will execute deeds, bonds, mortgages and other contracts on behalf of the Company, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof is expressly delegated by the Board of Managers or the Member to some other officer or agent of the Company, and (b) may from time to time open bank accounts in the name of the Company, with the President, and such other person(s) as the President may designate, being designated as the signatories on such accounts.

 

5.6

Vice President. The Vice President, if any, or if there is more than one, the Vice Presidents in the order determined by the Board of Managers, will, in the absence or disability of the President, perform the duties and exercise the powers of the President. Each Vice President will, under the supervision of the President, perform such other duties and have such other powers as may be prescribed by the Board of Managers or the President.

 

5.7

Secretary. The Secretary will attend all meetings of the Board of Managers and the Member and record all the proceedings of such meetings in a book to be kept for that purpose. The Secretary will maintain records of the ownership of membership interests, which records will include the name and address of each member and the membership interest held by each member. The Secretary will give, or cause to be given, if required, notice of all meetings of the Board of Managers and the Member, and will, under the supervision of the Chief Executive Officer and/or the President, perform such other duties as may be prescribed by the Board of Managers or the Chief Executive Officer or the President.

 

5.8

Assistant Secretaries. The Assistant Secretaries will, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

5.9

Treasurer. The Treasurer has custody of the Company’s funds and securities and will keep full and accurate accounts of receipts and disbursements in books belonging to the Company and will deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Managers. The Treasurer will further disburse the funds of the Company as may be ordered by the Board of Managers, taking proper vouchers for such disbursements, and will render to the President and the Board of Managers, when the Board of Managers so requires, an account of all transactions performed by the Treasurer and of the financial condition of the Company.

 

5.10

Assistant Treasurers. The Assistant Treasurers will, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and will perform such other duties and have such other powers as the Board of Managers may from time to time prescribe.

 

6

---

5.11

Other Officers. Each other officer of the Company shall exercise the powers and shall perform the duties incident to his or her office, subject to the direction of the Board of Managers.

 

5.12

Officers’ Bonds. No officer of the Company need provide a bond to guarantee the faithful discharge of his duties, unless the Board of Managers by resolution requires a bond. If required, the officer will give the Company a bond in such sum and with such surety or sureties as will is satisfactory to the Board of Managers for the faithful performance of the duties of his office.

 

5.13

Action with Respect to Securities of Other Entities. Unless otherwise directed by the Board of Managers, the Chairman, the Vice Chairman, the Chief Executive Officer, the President, or any Vice President will have power to vote and otherwise act on behalf of the Company, in person or by proxy, at any meeting of security holders, or with respect to any action of security holders, of any other entity in which the Company may hold securities or equity interests and will have power to exercise any and all rights and powers which the Company may possess by reason of its ownership of securities or other equity interests in such other entity.

 

5.14

Removal of Officer by the Board of Managers. The Board of Managers at any time may, by affirmative vote of a majority of the members of the Board of Managers then in office, remove any officer of the Company for cause or without cause. Upon such removal, the Board of Managers may elect a replacement officer to replace such removed officer.

6. Exculpation and Indemnification.

 

6.1

Exculpation. To the fullest extent permitted by the Act, no manager or officer of the Company will be liable to any other manager, officer, the Company, the Member or any other Person (as defined in paragraph 14.2) who has an interest in or claim against the Company or the Member for any loss, damage or claim, including, without limitation, any loss, damage, or claim incurred by reason of any act or omission performed or omitted by such manager or officer in good faith on behalf of the Company and in a manner such manager or officer reasonably believed to be in the best interests of the Company, except that such limitation shall not limit the liability, if any, of a manager or officer to the Company or the Member for any such loss, damage, or claim to the extent incurred by reason of such manager’s or officer’s (a) breach of the manager’s or officer’s duty of loyalty to the Company or the Member, (b) act or omission not in good faith or which involves intentional misconduct or a knowing violation of law, or (c) a transaction from which the manager or officer derived an improper personal benefit.

 

7

---

6.2

Indemnification. To the fullest extent permitted by the Act, the Company hereby indemnifies each manager, officer, employee or agent of the Company for any loss, damage or claim incurred by such manager, officer, employee or agent by reason of being or acting as a manager, officer, employee or agent of the Company or by reason of any act or omission performed or omitted by such manager, officer, employee or agent in good faith on behalf of the Company and in a manner such manager, officer, employee or agent reasonably believed to be in the best interests of the Company; provided, however, that any indemnity under this paragraph 6 will be provided out of, and to the extent of, the Company’s assets only, and the Member will not have personal liability on account thereof.

7. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a manager, officer, employee or agent of the Company defending any claim, demand, action, suit or proceeding will be advanced, from time to time, by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by, or on behalf of, the manager, officer, employee or agent to repay such amount if it is determined by a final, unappealable decision of a court that the manager, officer, employee or agent is not entitled to be indemnified as authorized in this paragraph 7.

 

7.1

Reliance on Reports. A manager, officer, employee or agent of the Company shall be protected in relying in good faith upon the records of the Company and upon such information, opinions, reports, or statements presented to the Company or such manager, officer, employee or agent by any Person as to matters the manager, officer, employee or agent reasonably believes are within such other Person’s professional or expert competence, and who, if selected by the manager, officer, employee or agent has been selected with reasonable care.

 

7.2

Good Faith. To the extent that, at law or in equity, a manager, officer, employee or agent of the Company has duties (including fiduciary duties) and liabilities relating thereto to the Company or to the Member, a manager, officer, employee or agent acting under this Agreement will not be liable to the Company or to the Member for his or her good faith reliance on the provisions of this Agreement or any approval or authorization granted in accordance with this Agreement or any approval or authorization granted by the Company or the Member. To the extent that the provisions of this Agreement restrict the duties and liabilities of a manager, officer, employee or agent of the Company otherwise existing at law or in equity, such provisions are agreed by each other manager, officer, employee or agent of the Company, and the Member to replace such other duties and liabilities of such manager, officer, employee or agent.

 

7.3

Insurance. The Company will have power to purchase and maintain insurance on behalf of any Person who is or was an officer, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise against any expense, liability or loss incurred by such Person in any such capacity or arising out of his or her status as such, whether or not the Company would have the power to indemnify him or her against such liability under Oklahoma law.

 

8

---

7.4

Non-exclusive. The rights and authority conferred in this paragraph 7 shall not be exclusive of any other right which any Person may otherwise have or hereafter acquire.

 

7.5

Effect of Repeal. Neither the amendment nor repeal of this paragraph 7, nor the adoption of any amendment hereto, nor, to the fullest extent permitted by Oklahoma law, any modification of law, will eliminate or reduce the effect of this paragraph 7 in respect of any acts or omissions occurring prior to such amendment, repeal, adoption or modification.

 

7.6

Survival. The foregoing provisions of this paragraph 7 will survive any termination of this Agreement and will survive the death, resignation, or removal of any manager or officer of the Company.

8. Rights of the Member. The Member may engage in, or possess an interest in, other business ventures (unconnected with the Company) of every kind and description, independently or with others. The Company shall not have any rights in, or to, such independent ventures or the income or profits therefrom by virtue of this Agreement.

9. Contributions.

 

9.1

Capital Contributions. The Member will contribute to the Company from time to time such amounts as may be determined to be appropriate in the sole discretion of the Member.

 

9.2

Additional Capital Contributions. The Member is not required to make any additional capital contributions to the Company.

 

9.3

No Third Party Beneficiary. The provisions hereof are intended for the benefit of the Member and the Company only and will not confer any right or claim upon, or otherwise inure to the benefit of, any creditor of, or other third party having dealings with, the Company.

10. Profits and Losses; Books and Records.

 

10.1

Profits and Losses. The Company’s income, gains, losses, deductions and credits shall belong to the Member. For federal, and where applicable, state and local income tax purposes, the Company will be a single member limited liability company disregarded as an entity separate from its owner under U.S. Treas. Reg. § 301.7701-3.

 

10.2

Books and Records. The Member will cause to be kept, at the Company’s principal place of business, full and proper ledgers and other books of account in which shall be entered all matters relating to the Company, including all income, expenditures, assets and liabilities thereof. Such books will be kept in accordance with the accounting methods and elections followed by the Company for federal income tax purposes and otherwise in accordance with generally accepted accounting principles consistently applied.

 

9

---

11. Distributions. Distributions shall be made to the Member at times and in the aggregate amounts determined by the Member. All distributions will belong to the Member.

12. Transfers and Pledges of Membership Interests.

 

12.1

Transfer of Membership Rights. The Member, in the Member’s sole discretion, may transfer (whether by sale, gift, or otherwise) all or any part of the Member’s membership interests, including both economic and non-economic interests, to any Person at any time. The Member may make any such transfer under any terms and conditions that the Member deems appropriate. Upon the assignment or transfer of all of the Member’s membership interests in the Company, the transferee shall automatically become the substituted member of the Company.

 

12.2

Pledges. The Member shall have exclusive and absolute discretion to pledge all or any part of the Member’s membership interests to any Person at any time as collateral for any debt of the Member. The Member may make any such pledge under any terms and conditions that the Member deems appropriate.

13. Dissolution. The Member, in the Member’s sole and absolute discretion, may determine whether and when to dissolve the Company.

14. General Provisions.

 

14.1

Governing Law. This Agreement and the obligations of the Member hereunder will be interpreted, construed, and enforced in accordance with the laws of the State of Oklahoma.

 

14.2

Person Defined. For the purposes of this Agreement, the term “Person” means any individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign.

 

14.3

Entire Agreement. This Agreement contains the entire agreement relative to the formation and governance of the Company. This Agreement may be amended only in a writing signed by the Member.

 

14.4

Severability. If any provision of this Agreement or the application thereof to any Person or circumstance will be invalid or enforceable to any extent, the remainder of this Agreement and the application of such provisions to other Persons or circumstances will not be affected thereby and will be enforced to the greatest extent permitted by law.

 

14.5

Terminology. Titles of paragraphs are for convenience only and neither limit nor amplify the provisions of this Agreement.

 

10

---

IN WITNESS WHEREOF, the Member has executed this Agreement effective as of the date first above written.

 

 

11

Exhibit 5.1

 

				Conner & Winters, LLP 1700 One Leadership Square 211 North Robinson | Oklahoma City, OK 73102-7101 p (405) 272-5711 | f (405) 232-2695 | cwlaw.com

April 7, 2014

VIA FEDERAL EXPRESS

LSB Industries, Inc.

P.O. Box 754

16 South Pennsylvania

Oklahoma City, OK 73101

 

Re:

$425,000,000 Aggregate Principal Amount of 7.75% Senior Secured

Notes due 2019; Our File No. 07033-0036

Gentlemen:

We have acted as special counsel to LSB Industries, Inc., a Delaware corporation (the “Company”), in connection with the issuance by the Company of up to $425,000,000 aggregate principal amount of 7.75% Senior Secured Notes due 2019 (the “Notes”) and the guarantees of the Notes (the “Guarantees”) by each of the direct and indirect subsidiaries of the Company listed on Exhibit A attached hereto (collectively, the “Guarantors”), under an Indenture dated as of August 7, 2013 (the “Indenture”), among the Company, the Guarantors and UMB Bank, n.a. (“UMB”), and pursuant to a registration statement on Form S-4 under the Securities Act of 1933, as amended (the “Securities Act”), filed with the Securities and Exchange Commission (the “Commission”) on April 7, 2014 (the “Registration Statement”). The Notes and the Guarantees will be issued in exchange for the Company’s outstanding 7.75% Senior Secured Notes due 2019 issued on August 7, 2013, and the related guarantees on the terms set forth in the prospectus contained in the Registration Statement (the “Prospectus”). This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or Prospectus, other than as expressly stated herein with the respect to the issuance of the Notes and the Guarantees.

In connection with our rendering of the opinion contained herein, we have examined: (a) the Registration Statement, including the Prospectus and the exhibits (including those incorporated by reference) constituting a part of the Registration Statement; (b) the Indenture; and (c) such other proceedings, documents, records and matters as we have deemed necessary or appropriate to enable us to render the opinion set forth below.

In our examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed or photostatic copies and the authenticity of the originals of such latter documents. In making our examination of executed documents or documents to be executed, we have assumed that the

---

LSB Industries, Inc.

April 7, 2014

Page 2

 

parties thereto (other than the Company and the Guarantors) had or will have the power, corporate or other, to enter into and perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and execution and delivery by such parties (other than the Company and the Guarantors) of such documents, and, as to parties other than the Company and the Guarantors, the validity and binding effect on such parties.

Our opinion set forth below is limited to the laws of the State of New York and the State of Oklahoma, the General Corporation Law of the State of Delaware, and the Texas Business Organization Code. We do not express any opinion herein concerning the laws of any other jurisdiction.

In connection with this opinion, we have assumed that the Registration Statement, and any amendments thereto (including post-effective amendments), will have become effective and the Notes and Guarantees will be issued in compliance with applicable federal and state securities laws and in the manner described in the Registration Statement.

Based upon and subject to the foregoing and the limitations, qualifications, exceptions and assumptions set forth herein, we are of the opinion that:

 

1.

The Notes, when delivered by the Company in the manner contemplated by the Registration Statement and the Prospectus, will be legally issued and valid and binding obligations of the Company, enforceable against the Company in accordance with their terms.

 

2.

The Guarantees, when delivered by the respective Guarantors in the manner contemplated by the Registration Statement and the Prospectus, will be legally issued and valid and binding obligations of the Guarantors, enforceable against the Guarantors in accordance with their terms

The foregoing opinions are subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (regardless of whether enforcement is considered in a proceeding in equity or at law).

We express no opinion as to the validity, binding effect or enforceability of any provision of the Notes or the Guarantees which purport to: (a) give the right of specific performance; (b) alter rules of civil procedure or evidence; (c) waive defenses, rights, notices, remedies and/or demands absent a showing of clear intent and knowing waiver or to the extent such rights are not waivable under statute or pursuant to public policy; (d) create and govern a trustee or creditor in possession status; (e) create indemnities or exculpate a party from liability for its own willful misconduct or gross negligence or where such indemnification or exculpation is contrary to public policy or prohibited by law; (f) prevent the modification of written documents by oral agreements; (g) provide for recovery of attorneys’ fees or other expenses of enforcement; (h) provide for additional interest after default or any other provision imposing charges, fees or other amounts not reasonably related to the costs incurred by the payee and which in any such case are held to be a penalty or forfeiture (including, without limitation, any prepayment penalties or premium); or (i) provide for severability of contractual provisions.

---

LSB Industries, Inc.

April 7, 2014

Page 3

 

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to our firm in the Prospectus under the caption “Legal Matters.” In giving this consent, we do not thereby admit that we are included in the category of persons whose consent is required under Section 7 of the Securities Act, or the rules and regulations of the Commission promulgated thereunder. The effective date of this opinion is the date first set forth above, and we do not undertake to advise you of any matter brought to our attention thereafter which would or may modify, in whole or in part, any or all of the foregoing.

Very truly yours,

CONNER & WINTERS, LLP

/s/ Conner & Winters, LLP

---

Exhibit A

GUARANTORS

Each of the following entities were organized under the laws of the State of Oklahoma except for Climate Master, Inc., which was incorporated under the laws of the State of Delaware, and El Dorado Nitrogen, L.P., which was formed under the laws of the State of Texas.

CEPOLK Holdings, Inc.

Chemex I Corp.

Chemical Properties L.L.C.

Chemical Transport L.L.C.

Cherokee Nitrogen L.L.C.

Cherokee Nitrogen Holdings, Inc.

ClimaCool Corp.

Climate Master, Inc.

ClimateCraft Technologies, Inc.

ClimateCraft, Inc.

Consolidated Industries L.L.C.

EDC Ag Products Company L.L.C.

El Dorado Chemical Company

El Dorado Ammonia L.L.C.

El Dorado Nitric L.L.C.

El Dorado Acid, L.L.C.

El Dorado Acid II, L.L.C.

El Dorado Nitrogen, L.P.

International Environmental Corporation

Koax Corp.

LSB Chemical L.L.C.

LSB Capital L.L.C.

LSB-Europa Limited

Pryor Chemical Company

Summit Machine Tool Manufacturing L.L.C.

The Climate Control Group, Inc.

ThermaClime Technologies, Inc.

TRISON Construction, Inc.

XpediAir, Inc.

Zena Energy L.L.C.

Exhibit 12.1

LSB Industries, Inc.

Unaudited Computation of Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividends

(Dollars in Thousands)

 

		2009				2010				2011				2012				2013
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate		$	35,877			$	48,499			$	129,649			$	91,699			$	90,126
Add:
Fixed charges			8,001				7,254				6,548				5,365				19,027
Amortization of capitalized interest			—				—				—				1				26
Share of distributed income of 50% owned affiliate			785				825				1,649				1,782				1,719
Less:
Interest capitalized			—				—				—				(398	)			(3,959	)
Adjusted earnings		$	44,663			$	56,578			$	137,846			$	98,449			$	106,939
Fixed charges:
Interest expense, net (1)		$	6,016			$	5,900			$	4,733			$	3,715			$	13,953
Interest capitalized			—				—				—				398				3,959
Estimate of interest in rental expense			1,985				1,354				1,815				1,252				1,115
Fixed charges			8,001				7,254				6,548				5,365				19,027
Preferred stock dividends			519				509				473				472				493
Combined fixed charges and preferred stock dividends		$	8,520			$	7,763			$	7,021			$	5,837			$	19,520
Ratio of earnings to fixed charges			5.6				7.8				21.1				18.4				5.6
Ratio of earnings to combined fixed charges and preferred stock dividends			5.2				7.3				19.6				16.9				5.5

 

(1)	Interest expense includes amortization of deferred debt issuance costs and excludes realized and unrealized gains or losses on interest rate financial instruments that are reported as interest expense.

Exhibit 21.1

LSB INDUSTRIES, INC.

SUBSIDIARY LISTING

Each of the following entities were organized under the laws of the State of Oklahoma except for LSB Industries, Inc. and Climate Master, Inc., which were incorporated under the laws of the State of Delaware, and El Dorado Nitrogen, L.P., which was formed under the laws of the State of Texas.

LSB INDUSTRIES, INC. (Direct subsidiaries are noted in bold italics.)

Consolidated Industries L.L.C. (f/k/a Consolidated Industries Corp.)

The Climate Control Group, Inc. (f/k/a APR Corporation)

CEPOLK Holdings, Inc. (f/k/a ThermalClime, Inc.; f/k/a LSB South America Corporation)

ClimaCool Corp. (f/k/a MultiClima Holdings, Inc.; f/k/a LSB International Corp.)

ClimateCraft, Inc. (f/k/a Summit Machine Tool Systems, Inc.)

Climate Master, Inc.

International Environmental Corporation

Koax Corp.

ThermaClime Technologies, Inc. (f/k/a ACP International Limited; f/k/a ACP Manufacturing Corp.)

TRISON Construction, Inc.

XpediAir, Inc. (f/k/a The Environmental Group, Inc.)

LSB Chemical L.L.C. (f/k/a/ LSB Chemical Corp.)

Cherokee Nitrogen L.L.C. (f/k/a Cherokee Nitrogen Company)

Cherokee Nitrogen Holdings, Inc. (f/k/a Cherokee Nitrogen Company)

Chemical Properties L.L.C.

Chemical Transport L.L.C.

El Dorado Chemical Company (f/k/a E.D.C., Inc.)

Chemex I Corp. (f/k/a Slurry Explosive Corporation)

EDC Ag Products Company L.L.C.

El Dorado Ammonia L.L.C.

El Dorado Nitric L.L.C. (f/k/a El Dorado Nitric Company; f/k/a El Dorado

Nitrogen Company; f/k/a LSB Nitrogen Corporation; f/k/a LSB Import Corp.)

El Dorado Acid, L.L.C. (General Partner of El Dorado Nitrogen, L.P.)

El Dorado Nitrogen, L.P. (1% ownership)

El Dorado Acid II, L.L.C. (Limited Partner of El Dorado Nitrogen, L.P.)

El Dorado Nitrogen, L.P. (99% ownership)

LSB Capital L.L.C.

Pryor Chemical Company (f/k/a Pryor Plant Chemical Company; f/k/a LSB Financial Corp.)

Zena Energy L.L.C.

Summit Machine Tool Manufacturing L.L.C. (f/k/a Summit Machine Tool Manufacturing Corp.)

LSB-Europa Limited (f/k/a LSB-Italia Limited)

ClimateCraft Technologies, Inc.

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the reference to our firm under the caption “Experts” in this Registration Statement (Form S-4) and related Prospectus of LSB Industries, Inc. for the registration of the 7.75% Senior Secured Notes due 2019 and to the incorporation by reference therein of our reports dated February 26, 2014, with respect to the consolidated financial statements and schedule of LSB Industries, Inc., and the effectiveness of internal control over financial reporting of LSB Industries, Inc., included in its Annual Report (Form 10-K) for the year ended December 31, 2013, filed with the Securities and Exchange Commission.

/s/ ERNST & YOUNG LLP

Oklahoma City, Oklahoma

April 7, 2014

Exhibit 25.1

 

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM T-1

 

 

STATEMENT OF ELIGIBILITY

UNDER THE TRUST INDENTURE ACT OF 1939

OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE

 

 

UMB BANK, NATIONAL ASSOCIATION

(Exact name of trustee as specified in its charter)

 

 

44-0201230

(I.R.S. Employer

Identification No.)

 

1010 Grand Blvd., Kansas City, Missouri		64106
(Address of principal executive offices)		(Zip Code)

 

 

LSB Industries, Inc.

(Exact name of obligor as specified in its charter)

 

Oklahoma		73-1015226
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification No.)
16 south Pennsylvania Avenue
Oklahoma City, Oklahoma		73107
(Address of principal executive offices)		(Zip Code)

 

 

LSB Industries, Inc.

7.75% Senior Secured Notes due 2019

Dated August 7, 2013

(Title of the indenture securities)

 

 

 

---

Item 1.		General Information
(a)		Name and address of each examining or supervising authority to which the
		Trustee is subject is as follows:
		The Comptroller of the Currency
		Mid-Western District
		2345 Grand Avenue, Suite 700
		Kansas City, Missouri 64108
		Federal Reserve Bank of Kansas City
		Federal Reserve P.O. Station
		Kansas City, Missouri 64198
		Supervising Examiner
		Federal Deposit Insurance Corporation
		720 Olive Street, Suite 2909
		St. Louis, Missouri 63101
(b)		The Trustee is authorized to exercise corporate trust powers.
Item 2.		Affiliations with obligor.
		The Obligor is not affiliated with the Trustee.
Item 3.		Voting securities of the Trustee.
		NOT APPLICABLE.
Item 4.		Trusteeships under other indentures.
		NOT APPLICABLE
Item 5.		Interlocking directorates and similar relationships with the obligor or underwriters.
		NOT APPLICABLE
Item 6.		Voting securities of the trustee owned by the obligor or its officials.
		NOT APPLICABLE
Item 7.		Voting securities of the trustee owned by underwriters or their officials.
		NOT APPLICABLE
Item 8.		Securities of the obligor owned or held by the trustee.
		NOT APPLICABLE
Item 9.		Securities of the underwriters owned or held by the trustee.
		NOT APPLICABLE

---

Item 10.		Ownership or holdings by the trustee of voting securities of certain affiliates or security holders of the obligor.
		NOT APPLICABLE
Item 11.		Ownership or holdings by the trustee of any securities of a person owning 50 percent or more of the voting securities of the obligor.
		NOT APPLICABLE
Item 12.		Indebtedness of the Obligor to the Trustee.
		NOT APPLICABLE
Item 13.		Defaults of the Obligor.
		NOT APPLICABLE
Item 14.		Affiliations with the Underwriters.
		NOT APPLICABLE
Item 15.		Foreign Trustee.
		NOT APPLICABLE
Item 16.		List of Exhibits
		Listed below are all exhibits as a part of this Statement of eligibility and qualification.
1.		Articles of Association of the Trustee, as now in effect (Exhibit 1 to Form T-1 filed with Registration Statement No. 333-74008).
2.		Certificate of Authority from the Comptroller of the Currency evidencing a change of the corporate title of the Association. (Exhibit 2 to Form T-1 filed with Registration Statement No. 333-74008).
3.		Certificate from the Comptroller of the Currency evidencing authority to exercise corporate trust powers and a letter evidencing a change of the corporate title of the Association. (Exhibit 3 to Form T-1 filed with Registration Statement No. 333-74008).
4.		Bylaws, as amended of the Trustee (Exhibit 4 to Form T-1 filed with Registration Statement No. 333-74008).
5.		N/A
6.		Consent of the Trustee required by Section 321(b) of the Act (Exhibit 6 to Registration Statement No. 333-74008).
7.		Report of Condition of the Trustee as of 12/31/13. See Attached Exhibit 1 to this Form T-1.

---

SIGNATURE

Pursuant to the requirements of the Trust Indenture Act of 1939, the Trustee, UMB Bank, National Association, a national bank organized and existing under the laws of the United States of America, has duly caused this statement of eligibility to be signed on its behalf by the undersigned, thereunto duly authorized, all in the city of Kansas City, and State of Missouri, on the 7th day of April, 2014.

 

		UMB BANK, NATIONAL ASSOCIATION
		BY:		/s/ Doug Hare
				Doug Hare, Sr. Vice President

Date: April 7, 2014

---

Exhibit 1

Schedule RC    15

Consolidated Report of Condition for Insured Banks

and Savings Associations for December 31, 2013

All schedules are to be reported in thousands of dollars. Unless otherwise indicated, report the amount outstanding as of the last business day of the quarter.

Schedule RC—Balance Sheet

 

Dollar Amounts in Thousands

Bil     Mil     Thou

Assets

1.

Cash and balances due from depository institutions (from Schedule RC-A):

a.

Noninterest-bearing balances and currency and coin (1)

RCON0081

519,406

1.a.

b.

Interest-bearing balances (2)

RCON0071

2,093,270

1.b.

2.

Securities:

a.

Held-to-maturity securities (from Schedule RC-B, column A)

RCON1754

209,770

2.a.

b.

Available-for-sale securities (from Schedule RC-B, column D)

RCON1773

6,762,411

2.b.

3.

Federal funds sold and securities purchased under agreements to resell:

a.

Federal funds sold

RCONB987

11,826

3.a.

b.

Securities purchased under agreements to resell (3)

RCONB989

75,192

3.b.

4.

Loans and lease financing receivables (from Schedule RC-C):

a.

Loans and leases held for sale

RCON5369

1,357

4.a.

b.

Loans and leases, net of unearned income

RCONB528

6,520,222

4.b.

c.

LESS: Allowance for loan and lease losses

RCON3123

74,751

4.c.

d.

Loans and leases, net of unearned income and allowance (item 4.b minus 4.c)

RCONB529

6,445,471

4.d.

5.

Trading assets (from Schedule RC-D)

RCON3545

3,988

5.

6.

Premises and fixed assets (including capitalized leases)

RCON2145

217,480

6.

7.

Other real estate owned (from Schedule RC-M)

RCON2150

1,288

7.

8.

Investments in unconsolidated subsidiaries and associated companies

RCON2130

0

8.

9.

Direct and indirect investments in real estate ventures

RCON3656

0

9.

10.

Intangible assets:

a.

Goodwill

RCON3163

90,011

10.a.

b.

Other intangible assets (from Schedule RC-M)

RCON0426

11,704

10.b.

11.

Other assets (from Schedule RC-F)

RCON2160

199,332

11.

12.

Total assets (sum of items 1 through 11)

RCON2170

16,642,506

12.

 

(1)	Includes cash items in process of collection and unposted debits.

(2)	Includes time certificates of deposit not held for trading.

(3)	Includes all securities resale agreements, regardless of maturity.

---

Schedule RC    16

Schedule RC—Continued

 

						Dollar Amounts in Thousands														Bil     Mil     Thou
Liabilities
13.		Deposits:
		a.		In domestic offices (sum of totals of columns A and C from Schedule RC-E)											RCON2200						13,803,837			13.a.
				(1) Noninterest-bearing (1)			RCON6631				5,353,054													13.a.(1)
				(2) Interest-bearing			RCON6636				8,450,783													13.a.(2)
		b.		Not applicable
14.		Federal funds purchased and securities sold under agreements to repurchase:
		a.		Federal funds purchased (2)											RCONB993						12,834			14.a.
		b.		Securities sold under agreements to repurchase (3)											RCONB995						1,570,739			14.b.
15.		Trading liabilities (from Schedule RC-D)													RCON3548						0			15.
16.		Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) (from Schedule RC-M)													RCON3190						5,162			16.
17.		Not applicable
18.		Not applicable
19.		Subordinated notes and debentures (4)													RCON3200						0			19.
20.		Other liabilities (from Schedule RC-G)													RCON2930						90,837			20.
21.		Total liabilities (sum of items 13 through 20)													RCON2948						15,483,409			21.
22.		Not applicable																						22.
		Equity Capital
		Bank Equity Capital
23.		Perpetual preferred stock and related surplus													RCON3838						0			23.
24.		Common stock													RCON3230						21,250			24.
25.		Surplus (exclude all surplus related to preferred stock)													RCON3839						518,371			25.
26.																								26.
		a.		Retained earnings											RCON3632						652,116			26.a.
		b.		Accumulated other comprehensive income (5)											RCONB530						(32,640	)		26.b.
		c.		Other equity capital components (6)											RCONA130						0			26.c.
27.																								27.
		a.		Total bank equity capital (sum of items 23 through 26.c)											RCON3210						1,159,097			27.a.
		b.		Noncontrolling (minority) interests in consolidated subsidiaries											RCON3000						0			27.b.
28.		Total equity capital (sum of items 27.a and 27.b)													RCONG105						1,159,097			28.
29.		Total liabilities and equity capital (sum of items 21 and 28)													RCON3300						16,642,506			29.

 

(1)	Includes noninterest-bearing demand, time, and savings deposits.

(2)	Report overnight Federal Home Loan Bank advances in Schedule RC, item 16, “Other borrowed money.”

(3)	Includes all securities repurchase agreements, regardless of maturity.

(4)	Includes limited-life preferred stock and related surplus.

(5)	Includes, but is not limited to, net unrealized holding gains (losses) on available-for-sale securities, accumulated net gains (losses) on cash flow hedges, and accumulated defined benefit pension and other postretirement plan adjustments.

(6)	Includes treasury stock and unearned Employee Stock Ownership Plan shares.

---

Schedule RC    17

Schedule RC—Continued

Memoranda

To be reported with the March Report of Condition.

 

Number

1.

Indicate in the box at the right the number of the statement below that best describes the most comprehensive level of auditing work performed for the bank by independent external auditors as of any date during 2012

RCON6724

N/A

M.1.

 

 

MM/DD

To be reported with the March Report of Condition.

2.

Bank’s fiscal year-end date

RCON8678

N/A

M.2.

Exhibit 99.1

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action to be taken, you should immediately consult your broker, bank manager, lawyer, accountant, investment advisor or other professional advisor.

LETTER OF TRANSMITTAL

Relating to

LSB Industries, Inc.

Offer to Exchange

All Outstanding Unregistered 7.75% Senior Secured Notes due 2019

($425,000,000 aggregate principal amount)

for

7.75% Senior Secured Notes due 2019 ($425,000,000 aggregate principal amount)

which have been registered under the Securities Act of 1933

Pursuant to the Prospectus, dated             , 2014

THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON             , 2014, UNLESS EXTENDED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”). TENDERS MAY BE WITHDRAWN PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.

For Delivery by Hand, Overnight Delivery, Registered or Certified Mail:

UMB Bank, n.a., as Exchange Agent

Attn: Janet Lambert

204 N. Robinson Suite 200

Oklahoma City, Oklahoma 73102

 

By Facsimile:		To Confirm by Telephone:
(405) 516-1276 Corporate Trust Operations		(405) 239-5901 Corporate Trust Operations

For Information, Call:

(405) 239-5901

Corporate Trust Operations

Delivery of this instrument to an address other than as set forth above, or transmission of this instrument via facsimile other than as set forth above, will not constitute a valid delivery.

The undersigned acknowledges that he or she has received the prospectus, dated                     , 2014 (the “Prospectus”), of LSB Industries, Inc., a Delaware corporation (the “Issuer”), and this letter of transmittal (the “Letter of Transmittal”), which together constitute the Issuer’s offer (the “Exchange Offer”) to exchange a principal amount of up to $425,000,000 of their outstanding, unregistered 7.75% Senior Secured Notes due 2019 (the “old notes”) of the Issuer for a like principal amount of the Issuer’s registered 7.75% Senior Secured Notes due 2019 (the “New Notes”). All references to the old notes and the New Notes include references to the related guarantees. Capitalized terms used but not defined herein shall have the same meaning given to them in the Prospectus.

For each old note accepted for exchange, the holder of such old note will receive a New Note having a principal amount equal to that of the surrendered old note. The New Notes will bear interest at a rate of 7.75% per annum from the most recent date to which interest on the old notes has been paid. Interest on the New Notes will be payable semiannually in cash in arrears on February 1 and August 1 of each year, commencing on [•], 2014. The New Notes will mature on August 1, 2019. The terms of the New Notes are identical to the terms of the old notes, except that the New Notes have been registered under the Securities Act and the transfer restrictions and registration rights and related special interest provisions applicable to the old notes do not apply to the New Notes.

If the Issuer has not exchanged all old notes validly tendered in accordance with the terms of the Exchange Offer for New Notes on or prior to the 30th business day after which the registration statement in respect of such New Notes has been declared effective or in certain other circumstances set forth in the Registration Rights Agreement dated, August 7, 2013, by and among the Issuer, the guarantors party thereto, and Wells Fargo Securities, LLC, as representative of the initial purchasers of the old notes (the “Registration Rights Agreement”), the Issuer will be required to pay additional interest as set forth in the Registration Rights Agreement.

The Issuer has agreed that, during the period described in Section 4(3) of the Securities Act of 1933, as amended (the “Securities Act”) and Rule 174 thereunder that is applicable to transactions by brokers or dealers with respect to New Notes (the “Applicable Period”), they will use their commercially reasonable efforts to make the Prospectus, as amended and supplemented, available to broker-dealers for use in connection with resales of New Notes.

Each holder of old notes wishing to participate in the Exchange Offer, except holders of old notes executing their tenders through the Automated Tender Offer Program (“ATOP”) procedures of The Depository Trust Company (“DTC”), should complete, sign and submit this Letter of Transmittal to the Exchange Agent, UMB Bank, n.a., on or prior to the Expiration Date.

This Letter of Transmittal may be used to participate in the Exchange Offer if certificates representing old notes are to be physically delivered to the Exchange Agent or if old notes are to be tendered by effecting a book-entry transfer into the Exchange Agent’s account at DTC and instructions are not being transmitted through ATOP, for which the Exchange Offer is eligible. Unless you intend to tender your old notes through ATOP, you should complete, execute, and deliver this Letter of Transmittal, along with any physical certificates for the old notes specified herein, to indicate the action you desire to take with respect to the Exchange Offer.

Holders of old notes tendering by book-entry transfer to the Exchange Agent’s account at DTC may execute tenders through ATOP, for which the Exchange Offer is eligible. Financial institutions that are DTC participants may execute tenders through ATOP by transmitting acceptance of the Exchange Offer to DTC on or prior to the Expiration Date. DTC will verify acceptance of the Exchange Offer, execute a book-entry transfer of the tendered old notes into the account of the Exchange Agent at DTC and send to the Exchange Agent a “book-entry confirmation,” which shall include an Agent’s Message. An “Agent’s Message” is a message, transmitted by DTC to, and received by, the Exchange Agent and forming part of a book-entry confirmation, which states that DTC has received an express acknowledgement from a DTC participant tendering old notes that the participant has received and agrees to be bound by the terms of this Letter of Transmittal as an

---

undersigned hereof and that the Issuer may enforce such agreement against the participant. Delivery of the Agent’s Message by DTC will satisfy the terms of the Exchange Offer as to execution and delivery of a Letter of Transmittal by the DTC participant identified in the Agent’s Message. Accordingly, holders who tender their old notes through DTC’s ATOP procedures shall be bound by, but need not complete, this Letter of Transmittal.

If you are a beneficial owner that holds old notes through Euroclear or Clearstream and wish to tender your old notes, you must instruct Euroclear or Clearstream, as the case may be, to block the account in respect of the tendered old notes in accordance with the procedures established by Euroclear or Clearstream. You are encouraged to contact Euroclear or Clearstream directly to ascertain their procedures for tendering old notes.

Tendering holders of old notes must tender old notes in an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof. New Notes will be issued in an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof.

Any holder that is a bank, broker, or other custodial entity holding old notes on behalf of more than one beneficial owner may submit to the Exchange Agent a list of the aggregate principal amount of old notes owned by each such beneficial owner, and the Exchange Agent, in determining the aggregate principal amount of New Notes to be issued to such holder, will treat each such beneficial owner as a separate holder.

Holders that anticipate tendering other than through DTC are urged to contact promptly a bank, broker, or other intermediary (that has the capability to hold securities custodially through DTC) to arrange for receipt of New Notes to be delivered pursuant to the Exchange Offer and to obtain the information necessary to provide the required DTC participant with account information in this Letter of Transmittal.

The Issuer reserves the right, in its sole discretion, to amend, at any time, the terms and conditions of the Exchange Offer. The Issuer will give you notice of any amendments if required by applicable law. The term “Expiration Date” shall mean the latest time and date to which the Exchange Offer is extended.

The undersigned has completed the appropriate boxes below and signed this Letter of Transmittal to indicate the action the undersigned desires to take with respect to the Exchange Offer.

 

2

---

TENDER OF OLD NOTES

To effect a valid tender of old notes through the completion, execution, and delivery of this Letter of Transmittal, the undersigned must complete the tables below entitled “Method of Delivery” and “Description of Old Notes Tendered” and sign this Letter of Transmittal where indicated.

New Notes will be delivered in book-entry form through DTC and only to the DTC account of the undersigned or the undersigned’s custodian, as specified in the table below entitled “Method of Delivery”.

We have not provided guaranteed delivery procedures in conjunction with the Exchange Offer or under any of the Prospectus or other materials provided therewith.

Failure to provide the information necessary to effect delivery of New Notes will render such holder’s tender defective, and the Issuer will have the right, which it may waive, to reject such tender without notice.

 

List below the old notes to which this Letter of Transmittal relates. If the space provided below is inadequate, the numbers and principal amount at maturity of old notes should be listed on a separate signed schedule affixed hereto.

 

DESCRIPTION OF OLD NOTES TENDERED
		1				2		3
Name(s) and Address(es) of Registered Holder(s) (Please fill in, if blank)		Certificate Number(s)*				Aggregate Principal Amount of Old Notes Represented		Principal Amount Tendered**
			Total

 

*	Need not be completed if old notes are being tendered by book-entry transfer.

**

Unless otherwise indicated in this column, a holder will be deemed to have tendered ALL of the old notes represented by the old notes indicated in column 2. See Instruction 2. The principal amount of old notes tendered hereby must be in an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof. See Instruction 1.

Note: Signatures must be provided below.

Please read the accompanying instructions carefully.

 

3

---

PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY

Ladies and Gentlemen:

Upon the terms and subject to the conditions of the Exchange Offer, the undersigned hereby tenders to the Issuer the aggregate principal amount of the old notes indicated above. Subject to, and effective upon, the acceptance for exchange of the old notes tendered hereby, the undersigned hereby sells, assigns, and transfers to, or upon the order of, the Issuer all right, title, and interest in and to such old notes as are being tendered hereby. The undersigned hereby irrevocably appoints the Exchange Agent as the undersigned’s true and lawful agent and attorney-in-fact with respect to such tendered old notes, with full power of substitution, among other things, to cause the old notes to be assigned, transferred, and exchanged.

The undersigned hereby represents and warrants that (i) the undersigned has full power and authority to tender, exchange, sell, assign, and transfer the old notes tendered hereby and that the Issuer will acquire good, marketable, and unencumbered title to the old notes, free and clear of all security interests, liens, restrictions, charges and encumbrances or other obligations relating to their sale or transfer and not subject to any adverse claim when the old notes are accepted by the Issuer; (ii) the undersigned is not an “affiliate,” as defined in Rule 405 under the Securities Act, of the Issuer; (iii) any New Notes to be received by the undersigned will be acquired in the ordinary course of the undersigned’s business; (iv) at the time of commencement and consummation of the Exchange Offer it has no arrangement or understanding with any person to participate in a distribution (within the meaning of the Securities Act) of the New Notes it will receive in the Exchange Offer in violation of the provisions of the Securities Act; and (v) if it is not a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the old notes or the New Notes.

In addition, if the undersigned is a broker-dealer, the undersigned represents that the old notes to be exchanged for New Notes were acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a Prospectus in connection with any resale of such New Notes; however, by so acknowledging and by delivering a Prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

The undersigned also acknowledges that this Exchange Offer is being made by the Issuer based upon the Issuer’s understanding of interpretations by the staff of the Securities and Exchange Commission (the “Commission”), as set forth in no-action letters issued to third parties, that the New Notes issued in exchange for the old notes pursuant to the Exchange Offer may be offered for resale, resold, and otherwise transferred by holders thereof, without compliance with the registration and prospectus delivery provisions of the Securities Act, provided that: (i) such holder is not an “affiliate,” as defined in Rule 405 under the Securities Act, of the Issuer; (ii) such New Notes are acquired in the ordinary course of such holder’s business; and (iii) such holder is not engaged in, does not intend to engage in, a distribution of such New Notes and has no arrangement or understanding with any person to participate in a distribution, as defined in the Securities Act, of the New Notes.

However, the Issuer has not sought its own no-action letter and therefore the staff of the Commission has not considered this Exchange Offer in the context of a no-action letter. There can be no assurance that the staff of the Commission would make a similar determination with respect to the Exchange Offer as in other circumstances. If a holder of old notes is an affiliate of the Issuer, acquires the New Notes other than in the ordinary course of such holder’s business or is engaged in or intends to engage in a distribution of the New Notes, or has any arrangement or understanding with respect to the distribution of the New Notes to be acquired pursuant to the Exchange Offer, such holder may not rely on the applicable interpretations of the staff of the Commission and must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any secondary resale transaction.

The undersigned will, upon request, execute and deliver any additional documents deemed by the Issuer to be necessary or desirable to complete the sale, assignment, and transfer of the old notes tendered hereby. All authority conferred or agreed to be conferred in this Letter of Transmittal and every obligation of the undersigned hereunder shall be binding upon the successors, assigns, heirs, executors, administrators, trustees in bankruptcy, and legal representatives of the undersigned and shall not be affected by, and shall survive, the death or incapacity of the undersigned. This tender may be withdrawn only in accordance with the procedures set forth in “The Exchange Offer—Withdrawal of Tenders” section of the Prospectus.

Unless otherwise indicated in the box entitled “Special Issuance Instructions” below, please deliver the New Notes in the name of the undersigned or, in the case of a book-entry delivery of old notes, please credit the account indicated above maintained at DTC. Similarly, unless otherwise indicated under the box entitled “Special Delivery Instructions” below, please send the New Notes to the undersigned at the address shown above in the box entitled “Description of Old Notes Tendered”.

 

4

---

THE UNDERSIGNED, BY COMPLETING THE BOX ENTITLED “DESCRIPTION OF OLD NOTES” ABOVE AND SIGNING THIS LETTER OF TRANSMITTAL, WILL BE DEEMED TO HAVE TENDERED THE OLD NOTES AS SET FORTH IN SUCH BOX ABOVE.

SPECIAL ISSUANCE INSTRUCTIONS

(See Instructions 3 and 4)

To be completed ONLY if certificates for old notes in a principal amount not tendered or not accepted and/or New Notes are to be issued in the name of someone other than the undersigned, or if old notes are to be returned by credit to an account maintained by DTC other than the account designated above.

Issue New Notes and/or old notes to:

Name(s):

 

 

(Please Type or Print)

 

 

(Please Type or Print)

Address:

 

 

(Including Zip Code)

 

 

Taxpayer Identification Number

(Such person(s) must also complete the Substitute

Form W-9, a Form W-8BEN, a Form W-8ECI or

a Form W-8IMY, as applicable)

Credit unaccepted old notes tendered by book-entry transfer to:

 

 

(DTC Account Number)

SPECIAL DELIVERY INSTRUCTIONS

(See Instructions 3 and 4)

To be completed ONLY if certificates for old notes in a principal amount not tendered or not accepted and/or New Notes are to be sent to someone other than the undersigned at an address other than that shown above.

Deliver New Notes and/or old notes to:

Name(s):

 

 

(Please Type or Print)

 

 

(Please Type or Print)

Address:

 

 

(Including Zip Code)

 

 

Taxpayer Identification Number

(Such person(s) must also complete the Substitute

Form W-9, a Form W-8BEN, a Form W-8ECI or

a Form W-8IMY, as applicable)

IMPORTANT: This Letter of Transmittal or a facsimile hereof or an Agent’s Message in lieu hereof (together with the certificates for old notes or a book-entry confirmation and all other required documents) must be received by the Exchange Agent prior to 5:00 p.m. New York City time, on the Expiration Date.

PLEASE READ THIS ENTIRE LETTER OF TRANSMITTAL

CAREFULLY BEFORE COMPLETING ANY BOX ABOVE.

IN ORDER TO VALIDLY TENDER OLD NOTES FOR EXCHANGE, HOLDERS OF OLD

NOTES MUST COMPLETE, EXECUTE, AND DELIVER THIS LETTER OF TRANSMITTAL OR A

PROPERLY TRANSMITTED AGENT’S MESSAGE.

 

5

---

SIGN HERE

(To be Completed By All Tendering Holders of Old Notes Regardless of Whether Old Notes Are Being Physically Delivered Herewith, Other Than Holders Effecting Delivery Through ATOP)

By completing, executing and delivering this Letter of Transmittal, the undersigned hereby tenders to LSB Industries, Inc. the principal amount of the old notes listed in the table on page 3 entitled “Description of Old Notes Tendered”.

 

Signature of Registered Holder(s) or Authorized Signatory (see guarantee requirement below)		Area Code and Telephone Number		Date
Signature of Registered Holder(s) or Authorized Signatory (see guarantee requirement below)		Area Code and Telephone Number		Date
Signature of Registered Holder(s) or Authorized Signatory (see guarantee requirement below)		Area Code and Telephone Number		Date
Signature of Registered Holder(s) or Authorized Signatory (see guarantee requirement below)		Area Code and Telephone Number		Date

If a holder is tendering any old notes, this Letter of Transmittal must be signed by the registered holder(s) as the name(s) appear(s) on the certificate(s) for the old notes or by any person(s) authorized to become registered holder(s) by endorsements and documents transmitted herewith. If signature is by a trustee, executor, administrator, guardian, attorney-in-fact, officer, or other person acting in a fiduciary or representative capacity, please set forth such person’s full title. See Instruction 3.

Name(s):

 

 

 

 

(Please Type or Print)

Capacity (full title):

 

 

Address:

 

 

(Including Zip Code)

SIGNATURE GUARANTEE

(If required—See Instruction 3)

Signature(s) Guaranteed by

an Eligible Institution:

 

 

(Authorized Signature)

 

 

(Title)

 

 

(Name of Firm)

 

 

(Address)

Dated:                         , 2014

 

 

 

6

---

INSTRUCTIONS FORMING PART OF THE TERMS AND CONDITIONS

OF THE EXCHANGE OFFER

1. Delivery of Letter of Transmittal.

This Letter of Transmittal or, in lieu thereof, an Agent’s Message stating that the holder has expressly acknowledged receipt of, and agrees to be bound by and held accountable by, this Letter of Transmittal is to be completed by or received with respect to holders of old notes whether certificates are to be forwarded herewith or tenders are to be made pursuant to the procedures for delivery by book-entry transfer set forth in “The Exchange Offer—Procedures for Tendering” section of the Prospectus. Certificates for all physically tendered old notes (or Book-Entry Confirmation), as well as a properly completed and duly executed Letter of Transmittal (or facsimile thereof) and any other documents required by this Letter of Transmittal (or, in lieu thereof, an Agent’s Message), must be received by the Exchange Agent at the address set forth herein on or prior to the Expiration Date. Old Notes tendered hereby must be an amount equal to $2,000 in principal amount or in any integral multiple of $1,000 in excess thereof.

The method of delivery of this Letter of Transmittal, the old notes, and all other required documents is at the election and risk of the tendering holders. Instead of delivery by mail, it is recommended that holders use an overnight or hand delivery service. In all cases, sufficient time should be allowed to assure delivery to the Exchange Agent before the Expiration Date. No letter of transmittal or old notes should be sent to the Issuer. Holders may request their respective brokers, dealers, commercial banks, trust companies, or nominees to effect the tenders for such holders.

See “The Exchange Offer” section of the Prospectus.

2. Partial Tenders (not applicable to holders of old notes who tender by book-entry transfer); Withdrawals.

If less than all of the old notes evidenced by a submitted certificate are to be tendered, the tendering holder(s) should fill in the aggregate principal amount of old notes to be tendered in the box above entitled “Description of Old Notes Tendered—Principal Amount Tendered.” A newly reissued certificate for the old notes submitted but not tendered will be sent to such holder as soon as practicable after the Expiration Date. All of the old notes delivered to the Exchange Agent will be deemed to have been tendered unless otherwise clearly indicated.

If not yet accepted, a tender pursuant to the Exchange Offer may be withdrawn at any time prior to the Expiration Date. To be effective with respect to the tender of old notes, a written or facsimile transmission notice of withdrawal must: (i) be received by the Exchange Agent prior to the Expiration Date; (ii) specify the name of the person who deposited the old notes to be withdrawn; (iii) identify the old notes to be withdrawn (including the certificate number(s), if any, and principal amount of such old notes); (iv) be signed by the depositor in the same manner as the original signature on this Letter of Transmittal by which such old notes were tendered (including any required signature guarantees) or be accompanied by documents of transfer sufficient to have the trustee register the transfer of such old notes into the name of the person withdrawing the tender; and (v) specify the name in which any such old notes are to be registered, if different from that of the depositor. The Exchange Agent will return the properly withdrawn old notes promptly following receipt of notice of withdrawal. If old notes have been tendered pursuant to the procedure for book-entry transfer, any notice of withdrawal must specify the name and number of the account at DTC to be credited with the withdrawn old notes or otherwise comply with DTC’s procedures. All questions as to the validity of notices of withdrawal, including time of receipt, will be determined by the Issuer, and such determination will be final and binding on all parties.

3. Signatures on this Letter of Transmittal, Bond Powers, and Endorsements; Guarantee of Signatures.

If this Letter of Transmittal is signed by the registered holder(s) of old notes tendered hereby, the signature must correspond exactly with the name as written on the face of the certificates without alteration, enlargement, or any change whatsoever.

If any tendered old notes are owned of record by two or more joint owners, all such owners must sign this Letter of Transmittal.

If any tendered old notes are registered in different names on several certificates, it will be necessary to complete, sign, and submit as many separate copies of this Letter of Transmittal as there are different registrations of certificates.

When this Letter of Transmittal is signed by the registered holder(s) (which term, for the purposes described herein, shall include DTC as the owner of the old notes) of the old notes specified herein and tendered hereby, no endorsements of certificates or separate bond powers are required. If, however, the New Notes are to be issued to a person other than the registered holder(s), then endorsements of any certificates transmitted hereby or separate bond powers are required. Signatures on such certificates must be guaranteed by an Eligible Institution (as defined below).

If this Letter of Transmittal is signed by a person other than the registered holder(s) of any old notes specified therein, such certificate(s) must be endorsed by such registered holder(s) or accompanied by separate written instruments of transfer or endorsed in blank by such registered holder(s) in form satisfactory to the Issuer and duly executed by the registered holder, in either case signed exactly as such registered holder’s or holders’ name(s) appear(s) on the old notes.

If this Letter of Transmittal or any certificates of old notes or separate written instruments of transfer or exchange are signed or endorsed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations, or others acting in a fiduciary or representative capacity, such persons should so indicate when signing and, unless waived by the Issuer, evidence satisfactory to the Issuer of their authority to so act must be submitted with this Letter of Transmittal.

Signature on a Letter of Transmittal or a notice of withdrawal, as the case may be, must be guaranteed by an Eligible Institution unless the old notes tendered pursuant thereto are tendered (i) by a registered holder who has not completed the box entitled “Special Issuance Instructions” or “Special Delivery Instructions” on the Letter of Transmittal or (ii) for the account of an Eligible Institution. In the event that signatures on a Letter of Transmittal or a notice of withdrawal, as the case may be, are required to be guaranteed, such guarantee must be by a financial institution (including most banks, savings and loan associations, and brokerage houses) that is a participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program, or the Stock Exchanges Medallion Program (each such entity, an “Eligible Institution”).

4. Special Issuance and Delivery Instructions.

Tendering Holders of old notes should indicate in the applicable box the name and address to which substitute certificates representing old notes for any old notes not exchanged and/or New Notes are to be issued or sent or, in the case of a book-entry delivery of old notes, the appropriate DTC participant name and number, if different from the name or address or the DTC participant name and number, as the case may be, of the person signing this Letter of Transmittal. In the case of issuance in a different name, the employer identification or social security number of the person named also must be indicated. Holders tendering old notes by book-entry transfer may request that old notes not exchanged and/or New Notes be credited to such account maintained at DTC as such note holder may designate hereon. If no such instructions are given, such old notes not exchanged and/or New Notes will be returned to the name and address or the account maintained at DTC, as the case may be, of the person signing this Letter of Transmittal.

 

7

---

5. Tax Identification Number and Backup Withholding.

An exchange of old notes for New Notes pursuant to the Exchange Offer will not be treated as a taxable exchange or other taxable event for U.S. Federal income tax purposes. In particular, no backup withholding or information reporting is required in connection with such an exchange. However, U.S. Federal income tax law generally requires that payments of principal and interest on a note to a holder be subject to backup withholding unless such holder provides the payor with such holder’s correct Taxpayer Identification Number (“TIN”) on the Substitute Form W-9 below or otherwise establishes a basis for exemption. If such holder is an individual, the TIN is his or her social security number. If the payor is not provided with the current TIN or an adequate basis for an exemption, such tendering holder may be subject to a $50 penalty imposed by the Internal Revenue Service. In addition, such holder may be subject to backup withholding in an amount that is currently 28% of all reportable payments of principal and interest.

Certain holders (including, among others, all corporations and certain foreign individuals) are not subject to these backup withholding and reporting requirements. Such holders should nevertheless complete the attached Substitute Form W-9 below, and check the box marked “Exempt” in Part 2, to avoid possible erroneous backup withholding. If the tendering holder of old notes is a nonresident alien or foreign entity not subject to backup withholding, such holder must give the Issuer a completed Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding), or other appropriate Form W-8. These forms may be obtained from the Exchange Agent or from the Internal Revenue Service’s website, www.irs.gov . See the enclosed Guidelines for Certification of TIN on Substitute Form W-9 (the “W-9 Guidelines”) for additional instructions.

To prevent backup withholding on reportable payments of principal and interest, each tendering holder of old notes must provide its correct TIN by completing the Substitute Form W-9 set forth below, certifying that the TIN provided is correct (or that such holder is awaiting a TIN) and that (i) the holder is exempt from backup withholding, (ii) the holder has not been notified by the Internal Revenue Service that such holder is subject to a backup withholding as a result of a failure to report all interest or dividends or (iii) the Internal Revenue Service has notified the holder that such holder is no longer subject to backup withholding. If the old notes are in more than one name or are not in the name of the actual owner, such holder should consult the W-9 Guidelines for information on which TIN to report. If such holder does not have a TIN, such holder should consult the W-9 Guidelines for instructions on applying for a TIN and check the box in Part 1 of the Substitute Form W-9 marked “Applied For” in lieu of providing its TIN. Note: checking the box marked “Applied For” on the form means that such holder has already applied for a TIN or that such holder intends to apply for one in the near future. If a holder checks the box in Part 1 of the Substitute Form W-9 marked “Applied For” on that form, backup withholding at a rate currently of 28% will nevertheless apply to all reportable payments made by such holder. If such a holder furnishes its TIN to the Issuer within 60 calendar days of the Issuer’s receipt of the Substitute Form W-9, however, any amounts so withheld shall be refunded to such holder.

If backup withholding applies, the payor will withhold the appropriate percentage (currently 28%) from payments to the payee. Backup withholding is not an additional Federal income tax. Rather, the Federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in overpayment of taxes, a refund may be obtained from the Internal Revenue Service.

6. Transfer Taxes.

Holders who tender their old notes for exchange will not be obligated to pay any transfer taxes in connection therewith. If, however, New Notes are to be delivered to, or are to be issued in the name of, any person other than the registered holder of the old notes tendered hereby, or if tendered old notes are registered in the name of any person other than the person signing this Letter of Transmittal, or if a transfer tax is imposed for any reason other than the exchange of old notes in connection with the Exchange Offer, the amount of any such transfer taxes (whether imposed on the registered holder or any other persons) will be payable by the tendering holder. If satisfactory evidence of payment of such taxes or exemption therefrom is not submitted herewith, the amount of such transfer taxes will be billed directly to such tendering holder.

Except as provided in this Instruction 6, it will not be necessary for transfer tax stamps to be affixed to the old notes specified in this Letter of Transmittal.

7. Waiver of Conditions.

The Issuer reserves the right to waive satisfaction of any or all conditions enumerated in the Prospectus at any time and from time to time prior to the Expiration Date.

8. No Conditional Tenders.

No alternative, conditional, irregular, or contingent tenders will be accepted. All tendering holders of old notes, by execution of this Letter of Transmittal or, in lieu hereof, an Agent’s Message, shall waive any right to receive notice of the acceptance of their old notes for exchange.

None of the Issuer, the Exchange Agent, or any other person is obligated to give notice of any defect or irregularity with respect to any tender of old notes nor shall any of them incur any liability for failure to give any such notice.

9. Mutilated, Lost, Stolen, or Destroyed old notes.

Any holder whose old notes have been mutilated, lost, stolen, or destroyed should contact the Exchange Agent at the address indicated above for further instructions.

10. Requests for Assistance or Additional Copies.

Questions relating to the procedure for tendering, as well as requests for additional copies of the Prospectus and this Letter of Transmittal, may be directed to the Exchange Agent, at the address and telephone number indicated above.

 

8

---

TO BE COMPLETED BY ALL TENDERING HOLDERS (See Instruction 5)

SUBSTITUTE FORM W-9

REQUEST FOR TAXPAYER IDENTIFICATION NUMBER AND CERTIFICATION

PAYOR’S NAME: LSB INDUSTRIES, INC.

PAYEE INFORMATION

(Please print or type)

Individual or business name (if joint account list first and circle the name of person or entity whose number you furnish in Part 1 below):

 

Check appropriate box:		¨   ¨   ¨   ¨   ¨   ¨		Individual/Sole proprietor   C Corporation   S Corporation   Partnership   Trust/Estate   Limited Liability Company: Enter the tax classification (C = C corporation, S = S corporation, P = Partnership)
		¨		Other

 

 

ADDRESS (NUMBER, STREET, AND APT. OR SUITE NO.)

 

 

CITY, STATE, AND ZIP CODE

PART 1: TAXPAYER IDENTIFICATION NUMBER (“TIN”)

Enter your TIN below. For individuals, this is your social security number. For other entities, it is your employer identification number. Refer to the chart on page 1 of the Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9 (the “W-9 Guidelines”) for further clarification. If you do not have a TIN, see instructions on how to obtain a TIN on page 2 of the W-9 Guidelines, check the appropriate box below indicating that you have applied for a TIN and, in addition to the Part 3 Certification, sign the attached Certification of Awaiting Taxpayer Identification Number.

Social Security Number:         -         -             

Employer Identification number:         -             

¨ Applied For

 

 

9

---

 

NOTE:		FAILURE TO COMPLETE AND RETURN THIS SUBSTITUTE FORM W-9 MAY RESULT IN BACKUP WITHHOLDING OF 28% OF ANY PAYMENT MADE TO YOU PURSUANT TO THE EXCHANGE OFFER. PLEASE REVIEW THE ENCLOSED “GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION NUMBER ON SUBSTITUTE FORM W-9” FOR ADDITIONAL DETAILS.

YOU MUST COMPLETE THE FOLLOWING CERTIFICATION IF YOU CHECKED THE BOX “APPLIED FOR” IN PART 1 OF SUBSTITUTE FORM W-9.

 

10

---

 

NOTE:		FAILURE TO COMPLETE AND RETURN THIS FORM MAY RESULT IN BACKUP WITHHOLDING AT THE APPLICABLE WITHHOLDING RATE (WHICH IS CURRENTLY 28%) ON ANY REPORTABLE PAYMENTS MADE TO YOU.

 

11

---

GUIDELINES FOR CERTIFICATION OF TAXPAYER IDENTIFICATION

NUMBER ON SUBSTITUTE FORM W-9

GUIDELINES FOR DETERMINING THE PROPER IDENTIFICATION NUMBER TO GIVE THE PAYOR—Social Security numbers have nine digits separated by two hyphens: i.e., 000-00-0000. Employer Identification numbers have nine digits separated by only one hyphen: i.e., 00-0000000. The table below will help determine the number to give the payor.

 

For this type of account:		Give NAME and SOCIAL SECURITY number (SSN) of:
1.      Individual		The individual
2.      Two or more individuals (joint account)		The actual owner of the account or, if combined funds, the first individual on the account. (1)
3.      Custodian account of a minor (Uniform Gift to Minors Act)		The minor(2)
4.      (a) The usual revocable savings trust (grantor is also trustee)		The grantor-trustee(1)
(b) So-called trust account that is not a legal or valid trust        under state law		The actual owner(1)
5.      Sole proprietorship or disregarded entity owned by an  individual		The owner(3)
6.      Grantor trust filing under Optional Form 1099 Filing Method  1 (see Regulation section 1.671-4(b)(2)(i)(A))		The Grantor*
7.      Disregarded entity not owned by an individual		The owner

 

For this type of account:		Give NAME and EMPLOYER IDENTIFICATION number (EIN) of:
8.      A valid trust, estate, or pension trust		The legal entity (Do not furnish the identifying number of the personal representative or trustee unless the legal entity itself is not designated in the account title.)(4)
9.      Corporation or LLC electing corporate status under Form  8832 or Form 2553		The corporation
10.    Association, club, religious, charitable, educational, or other  tax-exempt organization		The organization
11.    Partnership or multi-member LLC		The partnership or the LLC
12.    A broker or registered nominee		The broker or nominee
13.    Account with the Department of Agriculture in the name of a  public entity (such as State or local government, school  district, or prison) that receives agricultural program  payments		The public entity
14.    Grantor trust filing under the Form 1041 Filing Method or the  Optional Form 1099 Filing Method 2 (see Regulation section  1.671-4(b)(2)(i)(B))		The trust

 

(1)	List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished.

(2)	Circle the minor’s name and furnish the minor’s SSN.

(3)	You must show your individual name, but you may also enter your business or “DBA” name. You may use either your SSN or EIN (if you have one).

(4)	List first and circle the name of the legal trust, estate, or pension trust.

 

*	NOTE: Grantor also must provide a Form W-9 to trustee of trust.

NOTE: If no name is circled when there is more than one name, the number will be considered to be that of the first name listed.

 

12

---

Section references are to the Internal Revenue Code.

Obtaining a Number. If you do not have a taxpayer identification number or you do not know your number, obtain Form SS-5, Application for a Social Security Card, from the local office of the Social Security Administration, or Form SS-4, Application for Employer Identification Number, from the Internal Revenue Service (the “IRS”) and apply for a number.

Payees Exempt from Backup Withholding. The following is a list of payees exempt from backup withholding and for which no information reporting is required. For interest and dividends, all listed payees are exempt except for those listed in item (9). For broker transactions, payees listed in (1) through (13) are exempt. A person registered under the Investment Advisers Act of 1940 who regularly acts as a broker is also exempt. Payments subject to reporting under sections 6041 and 6041A are generally exempt from backup withholding only if made to payees described in items (1) through (7), except that the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding or information reporting: medical and health care payments, attorneys’ fees and payments for services paid by a federal executive agency. Only payees described in items (2) through (6) are exempt from backup withholding for barter exchange transactions and patronage dividends.

 

(1)

A corporation.

 

(2)

An organization exempt from tax under section 501(a), or an individual retirement plan (“IRA”), or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2).

 

(3)

The United States or any of its agencies or instrumentalities.

 

(4)

A State, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities.

 

(5)

A foreign government or any of its political subdivisions, agencies, or instrumentalities.

 

(6)

An international organization or any of its agencies or instrumentalities.

 

(7)

A foreign central bank of issue.

 

(8)

A dealer in securities or commodities required to register in the United States, the District of Columbia, or a possession of the United States.

 

(9)

A futures commission merchant registered with the Commodity Futures Trading Commission.

 

(10)

A real estate investment trust.

 

(11)

An entity registered at all times during the tax year under the Investment Company Act of 1940.

 

(12)

A common trust fund operated by a bank under section 584(a).

 

(13)

A financial institution.

 

(14)

A middleman known in the investment community as a nominee or custodian.

 

(15)

A trust exempt from tax under section 664 or described in section 4947.

Exempt payees should file substitute Form W-9 to avoid possible erroneous backup withholding.

Interest Payments. Payments of interest generally not subject to backup withholding include the following:

 

•

Payments of interest on obligations issued by individuals. NOTE: You may be subject to backup withholding if this interest is $600 or more and is paid in the course of the payor’s trade or business and you have not provided your correct taxpayer identification number to the payor.

 

•

Payments described in section 6049(b)(5) to nonresident aliens.

 

•

Payments on tax-free covenant bonds under section 1451.

 

•

Payments made by certain foreign organizations.

Payments that are not subject to information reporting are also not subject to backup withholding. For details see sections 6041, 6041A, 6042, 6044, 6045, 6049, 6050A and 6050N, and the regulations under such sections.

Privacy Act Notice. Section 6109 requires you to give your correct taxpayer identification number to persons who must file information returns with the IRS to report interest, dividends, and certain other income paid to you, mortgage interest you paid, the acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA or Archer MSA or HSA. The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return. The IRS may also provide this information to the Department of Justice for civil and criminal litigation, and to cities, states, and the District of Columbia to carry out their tax laws. The IRS also may disclose this information to other countries under a tax treaty, or to federal and state agencies to enforce federal non tax criminal laws and to combat terrorism. You must provide your taxpayer identification number whether or not you are required to file a tax return. Payors must generally withhold 28% of taxable interest, dividend, and certain other payments to a payee who does not furnish a taxpayer identification number to a payor. Certain penalties may also apply.

Penalties.

 

(1)

Penalty for Failure to Furnish Taxpayer Identification Number. If you fail to furnish your taxpayer identification number to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.

 

(2)

Civil Penalty for False Information with Respect to Withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.

 

(3)

Criminal Penalty for Falsifying Information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.

FOR ADDITIONAL INFORMATION CONTACT YOUR TAX CONSULTANT OR THE INTERNAL REVENUE SERVICE.

 

13

Exhibit 99.2

LSB Industries, Inc.

Offer to Exchange up to $425,000,000 Principal Amount of 7.75% Senior Secured Notes due 2019 for a Like Principal Amount of 7.75% Senior Secured Notes due 2019 which have been registered under the Securities Act of 1933 (the “Exchange Offer”).

Pursuant to the Prospectus, dated                     , 2014

To Our Clients:

Enclosed for your consideration is a prospectus, dated             , 2014 (the “Prospectus”) and the related letter of transmittal (the “Letter of Transmittal”), relating to the offer of LSB Industries, Inc., a Delaware corporation (the “Issuer”), to exchange up to $425,000,000 principal amount of their outstanding, unregistered 7.75% Senior Secured Notes due 2019 (the “old notes”) for a like principal amount of registered 7.75% Senior Secured Notes due 2019 (the “New Notes”), upon the terms and subject to the conditions set forth in the Prospectus and Letter of Transmittal. The old notes and the New Notes are sometimes referred to in this letter together as the “Notes” and all references to the Notes include references to the related guarantees. Capitalized terms not defined herein shall have the meanings ascribed to them in the Prospectus.

The Exchange Offer is intended to satisfy certain obligations of the Issuer contained in the Registration Rights Agreement, dated as of August 7, 2013, relating to the old notes, by and among the Issuer, the guarantors party thereto, and Wells Fargo Securities, LLC, as representative of the initial purchasers of the old notes. As set forth in the Prospectus, the terms of the New Notes are identical to the terms of the old notes, except that the New Notes are registered under the Securities Act and the transfer restrictions and registration rights and related additional interest provisions applicable to the old notes do not apply to the New Notes.

This material is being forwarded to you as the beneficial owner of the old notes carried by us for your account but not registered in your name. A tender of such old notes may only be made by us as the holder of record and pursuant to your instructions, unless you obtain a properly completed bond power from us or arrange to have the old notes registered in your name.

Accordingly, we request instructions as to whether you wish us to tender on your behalf the old notes held by us for your account, pursuant to the terms and conditions set forth in the enclosed Prospectus and Letter of Transmittal.

Please forward your instructions to us as promptly as possible in order to permit us to tender the old notes on your behalf in accordance with the provisions of the Exchange Offer. The Exchange Offer will expire at 5:00 p.m., New York City time, on , 2014, unless extended (such date and time, as it may be extended, the “Expiration Date”). Tenders may be withdrawn prior to 5:00 p.m., New York City time, on the Expiration Date.

Your attention is directed to the following:

 

1.

The Exchange Offer is for any and all old notes.

 

2.

The Exchange Offer is subject to certain terms and conditions set forth in the Prospectus in the section captioned “The Exchange Offer—Conditions to the Exchange Offer.”

 

3.

The Exchange Offer expires at 5:00 p.m., New York City time, on the Expiration Date, unless extended.

If you wish to have us tender your old notes, please instruct us to do so by completing, executing, and returning to us the instruction form on the back of this letter.

The Letter of Transmittal is furnished to you for information only and may not be used directly by you to tender old notes, unless you obtain a properly completed bond power from us or arrange to have the old notes registered in your name.

 

1

---

INSTRUCTIONS WITH RESPECT TO THE EXCHANGE OFFER

The undersigned acknowledge(s) receipt of this letter and the enclosed materials referred to herein relating to the Exchange Offer made by the Issuer with respect to the old notes.

This will instruct you to tender the old notes held by you for the account of the undersigned, upon and subject to the terms and conditions set forth in the Prospectus and the related Letter of Transmittal.

Please tender the old notes held by you for the account of the undersigned as indicated below:

 

¨ Please tender the old notes held by you for the account of the undersigned as indicated below:
Aggregate Principal Amount of old notes
7.75% Senior Secured Notes due 2019		$
				(must be in an amount equal to $2,000 in principal amount or in integral multiples of $1,000 in excess thereof)
¨ Please do not tender any old notes held by you for the account of the undersigned.
				Signature(s)
				Please print name(s) here
				Dated:
				Address(es)
				Area Code(s) and Telephone Number(s)
				Tax Identification or Social Security No(s).

None of the old notes held by us for your account will be tendered unless we receive written instructions from you to do so. Unless a specific contrary instruction is given in the space provided, your signature(s) hereon shall constitute an instruction to us to tender all the old notes held by us for your account.

 

2

Exhibit 99.3

LSB Industries, Inc.

Offer to Exchange up to $425,000,000 Principal Amount of 7.75% Senior Secured Notes due 2019 for a Like Principal Amount of 7.75% Senior Secured Notes due 2019 which have been registered under the Securities Act of 1933 (the “Exchange Offer”).

Pursuant to the Prospectus, dated                     , 2014

To: Brokers, Dealers, Commercial Banks, Trust Companies, and Other Nominees:

LSB Industries, Inc., a Delaware corporation (the “Issuer”), hereby offers to exchange, upon and subject to the terms and conditions set forth in the prospectus dated             , 2014 (the “Prospectus”) and the related letter of transmittal (the “Letter of Transmittal”), up to $425,000,000 principal amount of their outstanding, unregistered 7.75% Senior Secured Notes due 2019 (the “old notes”) for a like principal amount of registered 7.75% Senior Secured Notes due 2019 (the “New Notes”). The old notes and the New Notes are sometimes referred to in this letter together as the “Notes” and all references to the Notes include references to the related guarantees. Capitalized terms not defined herein shall have the meaning ascribed to them in the Prospectus.

The Exchange Offer is intended to satisfy certain obligations of the Issuer contained in the Registration Rights Agreement, dated as of August 7, 2013, relating to the old notes, by and among the Issuer, the guarantors party thereto, and Wells Fargo Securities, LLC, as representative of the initial purchasers of the old notes. As set forth in the Prospectus, the terms of the New Notes are identical to the terms of the old notes, except that the New Notes are registered under the Securities Act and the transfer restrictions and registration rights and related additional interest provisions applicable to the old notes do not apply to the New Notes.

Please contact your clients for whom you hold old notes regarding the Exchange Offer. For your information and for forwarding to your clients for whom you hold old notes registered in your name or in the name of your nominee, or who hold old notes registered in their own names, the following documents are enclosed:

 

1.

Prospectus dated             , 2014;

 

2.

The Letter of Transmittal for your use and for the information of your clients;

 

3.

Substitute Form W-9 and Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9 (included with the Letter of Transmittal); and

 

4.

A form of letter which may be sent to your clients for whose account you hold old notes registered in your name or the name of your nominee, with space provided for obtaining such clients’ instructions with regard to the Exchange Offer.

Your prompt action is requested. The Exchange Offer will expire at 5:00 p.m., New York City time, on             , 2014, unless extended (such date and time, as it may be extended, the “Expiration Date”). Tenders may be withdrawn prior to 5:00 p.m., New York City time, on the Expiration Date.

The Issuer has not retained any dealer-manager in connection with the Exchange Offer and will not make any payment to brokers, dealers, or others soliciting acceptances of the Exchange Offer.

To participate in the Exchange Offer, a duly executed and properly completed Letter of Transmittal (or facsimile thereof), with any required signature guarantees, and any other documents required by the Letter of Transmittal or an Agent’s Message (as defined in the Letter of Transmittal) stating that the tendering holder has expressly acknowledged receipt of, and agrees to be bound by and held accountable under, the Letter of Transmittal, must be sent to the Exchange Agent and certificates representing the old notes (or confirmation of book-entry transfer of such old notes into the Exchange Agent’s account at The Depository Trust Company) must be delivered to the Exchange Agent, all in accordance with the instructions set forth in the Letter of Transmittal and the Prospectus.

Any inquiries you may have with respect to the Exchange Offer or requests for additional copies of the enclosed materials should be directed to the Exchange Agent at its address and telephone number set forth on the front of the Letter of Transmittal.

Very truly yours,

LSB Industries, Inc.

NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU OR ANY OTHER PERSON AS AN AGENT OF THE ISSUER OR THE EXCHANGE AGENT, OR AUTHORIZE YOU OR ANY OTHER PERSON TO USE ANY DOCUMENT OR MAKE ANY STATEMENTS ON BEHALF OF ANY OF THEM WITH RESPECT TO THE EXCHANGE OFFER, EXCEPT FOR STATEMENTS EXPRESSLY MADE IN THE PROSPECTUS OR THE LETTER OF TRANSMITTAL.