LOON LAKE WATERSHED IMPROVEMENT ALLIANCE, INC. BYLAWS

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1 ARTICLE I NAME LOON LAKE WATERSHED IMPROVEMENT ALLIANCE, INC. BYLAWS The name of the organization shall be LOON LAKE WATERSHED IMPROVEMENT ALLIANCE, INC. The organization hereinafter shall, in these Bylaws, be referred to as the Corporation or as LLWIA. ARTICLE II OBJECTIVES AND PURPOSES Section 1 IRC Section 501(c)(3) Purposes This Corporation is organized exclusively for one or more of the purposes as specified in Section 501(c) (3) of the Internal Revenue Code, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under Section 501(c)(3) of the Internal Revenue Code. Section 2 Specific Objectives and Purposes The LLWIA is a non-profit organization dedicated to enhancing, preserving and protecting the quality of Loon Lake (the Lake ), its adjacent water bodies, and its watershed extending to the Chesapeake Bay watershed through the promotion of responsible, effective environmental and educational programs. Our mission is to preserve and protect this regionally unique resource as a pristine legacy for future generations. The purpose for which said LLWIA is formed is the following, to wit: (a) To strive to promote, protect, encourage, and advance interests, activities, and projects that will improve the Lake and its watershed area; (b) To coordinate and promote cooperation between the regional, state and other governmental units and areas in the watershed area, and other private groups on environmental, recreational, beautification, and other programs to improve and preserve the watershed and the surrounding areas; (c) To affiliate with any other town, county, state or national organization for such purposes as may be consistent with the objectives and purposes of the LLWIA; (d) In aid of the foregoing purposes, to receive voluntary contributions and seek other sources of funding and to do all other things lawful, necessary and appropriate to effect the same. ARTICLE III The Board of Directors Section 1 Authority and Responsibilities The general supervision, management, and direction of the LLWIA shall be delegated exclusively to its Board of Directors. The Board and its Directors are understood to act as fiduciaries with regard to the LLWIA, and their duties include, but are not limited to, the duty of care, loyalty, and obedience. The Board of Directors shall develop LLWIA policy, select all standing and special committees. The Board of Directors shall be the authority in the interpretation of these Bylaws. Section 2 Composition Every effort should be made to create a Board that will comprise of members with a diverse set of talents, experience, and competencies that will best fulfill the mission and needs of the LLWIA. The number of Directors of the LLWIA shall be a minimum of seven (7). The Directors shall organize themselves to perform the duties of the following positions: President, Vice-president, Treasurer, Secretary, 1

2 Section 3 Selection, Removal, and Resignation Any person eighteen years of age or older may serve as a Board member. Each Board member shall hold office for a term of three (3) years and until his or her successor is appointed. There is no limitation on the number of terms, consecutive or otherwise, that person may serve. The initial Board shall consist of the initial directors of the LLWIA listed in the Certificate of Incorporation. (a)selection- The ability to fill Board vacancies shall be delegated exclusively to the Board of Directors. Board vacancies shall be filled by majority affirmative vote of the Board. (b) Removal- An officer who fails to perform the duties of the office may be removed from that office by a majority vote of the Board. Section 4 Compensation No Board Member shall receive any compensation from the LLWIA for services performed in his/her official capacity, but Board members shall, upon request, be reimbursed for reasonable expenses incurred in the performance of official duties. Section 5 Liability In the absence of fraud or bad faith, no Board member shall be personally liable for the debts, obligations or liabilities of the LLWIA. The LLWIA shall defend and indemnify any person made, or threatened to be made, a party to any action or proceeding, whether criminal, civil, or investigative in nature, by reason of the fact that he/she, his/her testator or intestate is/was a Board member or Officer of the Board, against judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys fees. The LLWIA shall indemnify such person at any time prior to or after resolution, whether by settlement or by judicial determination, of a threatened or actual proceeding. Notwithstanding the above, the LLWIA may not indemnify a Director or Officer of the Board where the conduct for which indemnification is sought has been found by a court of competent jurisdiction to constitute bad faith, deliberate dishonesty, or to have resulted in personal gain or a criminal conviction. Section 6 Insurance for Corporate Agents Except as may be otherwise provided under provisions of law, the Board of Directors may adopt a resolution authorizing the purchase and maintenance of insurance on behalf of any agent of the LLWIA (including a Board member or other agent of the LLWIA) against liabilities asserted against or incurred by the agent in such capacity or arising out of the agent's status as such, whether or not the LLWIA would have the power to indemnify the agent against such liability under the articles of incorporation, these Bylaws, or provisions of law. Section 7 Board Meetings (a) Conduct of Meetings - Meetings of the Board of Directors shall be presided over by the President, or in his or her absence, the Vice-president, or in the absence of these persons, by a presiding officer chosen by a majority of the Directors present at the meeting. The secretary of the Board shall act as secretary of all meetings of the Board, provided that, in his or her absence, the presiding officer shall appoint another person to act as secretary of the meeting. (b) Regular Meetings The Board of Directors shall meet at least semi-annually. The regular meeting in the last half of the year shall be designated as the Annual Meeting. (d) Special Meetings Special meetings of the Board may be called by the President of the Board in accordance with the provision of notice of meetings provision below. The President must convene a special meeting upon the request of five (5) or more of the Directors. In unusual circumstances telephone conference calls may be substituted for a special meeting pursuant to Section 708 of the Not-for-Profit Corporation Law of the State of New York. (e) Quorum A majority of the Board shall constitute a quorum at Board regular and special meetings. Except as otherwise provided under these Bylaws, or provisions of law, no business shall be considered by the Board at any meeting at which the required quorum is not present. (f) Voting Means - Voting on all matters, including the selection of Board members, may be conducted by mail, electronic mail, facsimile transmission, chat software, video conferencing, or other similar verifiable means. Proxy voting shall not be allowed. (g) Meeting Notices - Notice of Board meetings shall be distributed by mail, electronic mail, or facsimile transmission. 2

3 (h) Waiver of Notice - Unless otherwise provided by law, whenever any notice is required to be given to any Board member of the LLWIA under the provisions of these Bylaws, a waiver thereof in writing, signed by the person or persons entitled to such notice, or by electronic means sufficient to authenticate the sender, date and time, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Section 8 Majority Action as Board Action Every act or decision done or made by a majority of the Directors present at a meeting duly held at which a quorum is present is the act of the Board, unless these Bylaws, or provisions of law require a greater percentage or different voting rules for approval of a matter by the Board. ARTICLE IV Duties Section 1 President The President shall: (a) Preside at regular and special meetings of the Board. (b) Be an ex-officio member of all committees. (c) Assign LLWIA responsibilities to other Board members. (d) Represent or designate a representative to speak officially for the LLWIA at any meeting deemed necessary to attend. (e) Coordinate the activities of the Directors and volunteer committees to fulfill the objectives and purposes as established in these Bylaws. (f) Except as otherwise expressly provided by law, or by these Bylaws, he or she shall, in the name of the LLWIA, execute such deeds, mortgages, bonds, contracts, checks, or other instruments which may from time to time be authorized by the Board. Section 2 Vice-president The Vice-president shall: (a) In the absence of the President, or in the event of his or her inability or refusal to act, the Vicepresident 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 on, the President. The Vice-president shall have other powers and perform such other duties as may be prescribed by law, or by these Bylaws, or as may be prescribed by the Board. (b) Assist the President in administering the LLWIA. (c) Chair any Committee as assigned by the Board. (d) Have the ability to draw and sign checks. (e) In general, perform all duties incident to the position of Vice-president and such other duties as may be required by law, or by these Bylaws, or which may be assigned to him or her from time to time by the Board. Section 3 Treasurer The Treasurer shall: (a) Chair the Finance Committee. (b) Have charge and custody of, and be responsible for, all funds and securities of the LLWIA, and deposit all such funds in the name of the LLWIA in such banks, trust companies, or other depositories as shall be selected by the Board. (c) Receive, and give receipt for, monies due and payable to the LLWIA from any source whatsoever. (d) Disburse, or cause to be disbursed, the funds of the LLWIA as may be directed by the Board, taking proper vouchers for such disbursements. 3

4 (e) Draw and sign checks. (e) Keep and maintain adequate and correct accounts of the LLWIA's properties and business transactions, including accounts of its assets, liabilities, receipts, disbursements, gains, and losses. (f) Keep a book containing the name, address, and contact information of each donor. (g) Exhibit at all reasonable times the books of account and financial records to any Board member, or to his or her agent or attorney, on request. (h) Prepare, or cause to be prepared, the financial statements to be included in any required reports. (i) Render to the Board of Directors, whenever requested, an account of any or all of his or her transactions as Treasurer and of the financial condition of the LLWIA. (j) In conjunction with the Finance Committee to prepare, if requested, by the Board, a proposed annual budget for the next fiscal year and submit it to the Board for approval prior to the Annual Meeting. (k) Prepare and file all appropriate tax returns with New York State and the Internal Revenue Service. (l) In general, perform all duties incident to the position of Treasurer and such other duties as may be required by law, or by these Bylaws, or which may be assigned to him or her from time to time by the Board. Section 4 Secretary The Secretary shall: (a) Certify and keep, at a place designated by the Board, the original, or a copy, of these Bylaws as amended or otherwise altered to date. (b) Keep a book of minutes of all meetings of the Board, and, if applicable, meetings of committees, recording therein the time and place of holding, whether regular or special, how called, how notice thereof was given, the names of those present or represented at the meeting, and the proceedings thereof. (c) Ensure that the minutes of meetings of the LLWIA, any written consents approving action taken without a meeting, and any supporting documents pertaining to meetings, minutes, and consents shall be contemporaneously recorded in the corporate records of this LLWIA. "Contemporaneously" in this context means that the minutes, consents, and supporting documents shall be recorded in the records of this LLWIA by the later of (1) the next meeting of the Board, committee, or other body for which the minutes, consents, or supporting documents are being recorded, or (2) sixty (60) days after the date of the meeting or written consent. (d) See that all notices are duly given in accordance with the provisions of these Bylaws or as required by law. (e) Be custodian of the records and of the seal of the corporation and affix the seal, as authorized by law or the provisions of these Bylaws, to duly executed documents of the LLWIA. (f) Keep a book containing the name, address, and contact information of each Board member. (g) Attend to the correspondence of the LLWIA as directed by the Board. (h) Receive letters of resignation. (i) Exhibit at all reasonable times the Bylaws, the book of volunteers and committees, and the minutes of the proceedings of the Board to any Board member, or to his or her agent or attorney, on request. (j) In general, perform all duties incident to the position of Secretary and such other duties as may be required by law, or by these Bylaws, or which may be assigned to him or her from time to time by the Board. ARTICLE V Execution of Instruments, Deposits, and Funds Section 1 Execution of Instruments The Board, except as otherwise provided in these Bylaws, may by resolution authorize any officer or agent of the LLWIA to enter into any contract or execute and deliver any instrument in the name of and on behalf of the LLWIA, and such authority may be general or confined to specific instances. Unless so authorized, no officer, agent, or employee shall have any power or authority to bind the LLWIA by any contract or engagement or to pledge its credit or to render it liable monetarily for any purpose or in any 4

5 amount. Section 2 Checks and Notes Except as otherwise specifically determined by resolution of the Board of Directors, or as otherwise required by law, checks, drafts, promissory notes, orders for the payment of money, and other evidence of indebtedness of the LLWIA shall be signed by the Treasurer. Section 3 Deposits All funds of the LLWIA shall be deposited from time to time to the credit of the LLWIA in such banks, trust companies, or other depositories as the Board may select. Section 4 Gifts The Board may accept on behalf of the LLWIA any contribution, gift, bequest, or devise for the nonprofit purposes of this LLWIA. ARTICLE VI Corporate Records, Reports, and Seal Section 1 Execution of Instruments At a place designated by the Board, the LLWIA shall keep: (a) Minutes of all meetings of the Board and committees indicating the time and place of holding such meetings, whether regular or special, how called, the notice given, and the names of those present and the proceedings thereof; (b) Adequate and correct books and records of account, including accounts of its properties and business transactions and accounts of its assets, liabilities, receipts, disbursements, gains, and losses; (c) A copy of the corporation's articles of incorporation and Bylaws as amended to date. Section 2 Directors' Inspection Rights Every Board Member shall have the absolute right at any reasonable time to inspect and copy all books, records, and documents of every kind and to inspect the physical properties of the LLWIA, and shall have such other rights to inspect the books, records, and properties of this LLWIA as may be required under other provisions of these Bylaws, and provisions of law. Section 3 Right to Copy and Make Extracts Any inspection under the provisions of this article may be made in person or by agent or attorney and the right to inspection shall include the right to copy and make extracts. Section 4 Periodic Report The Board shall cause any annual or periodic report required under law to be prepared and delivered to an office of this state to be so prepared and delivered within the time limits set by law. ARTICLE VII IRC 501(c)(3) Tax Exemption Provisions Section 1 Limitations on Activities No substantial part of the activities of this LLWIA shall be the carrying on of propaganda, or otherwise attempting to influence legislation (except as otherwise provided by Section 501(h) of the Internal Revenue Code), and this LLWIA shall not participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of, or in opposition to, any candidate for public office. Notwithstanding any other provisions of these Bylaws, this LLWIA shall not carry on any activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501(c)(3) of 5

6 the Internal Revenue Code, or (b) by a corporation, contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code. Section 2 Prohibition Against Private Inurement No part of the net earnings of this LLWIA shall inure to the benefit of, or be distributable to, its directors or Directors, officers, or other private persons, except that the LLWIA shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes of LLWIA. Section 3 Distribution of Assets Upon the dissolution of this LLWIA, its assets remaining after payment, or provision for payment, of all debts and liabilities of this LLWIA, shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code or shall be distributed to the federal government, or to a state or local government, for a public purpose. Such distribution shall be made in accordance with all applicable provisions of the laws of this state. Section 4 Private Foundation Requirements and Restrictions In any taxable year in which this corporation is a private foundation as described in Section 509(a) of the Internal Revenue Code, the corporation 1) shall distribute its income for said period at such time and manner as not to subject it to tax under Section 4942 of the Internal Revenue Code; 2) shall not engage in any act of self-dealing as defined in Section 4941(d) of the Internal Revenue Code; 3) shall not retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code; 4) shall not make any investments in such manner as to subject the corporation to tax under Section 4944 of the Internal Revenue Code; and 5) shall not make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code. ARTICLE VIII Conflict of Interest and Compensation Policies Section 1 Purpose of Conflict of Interest Policy The purpose of this conflict of interest policy is to protect this tax-exempt corporation's interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of a Board member of the LLWIA or any "disqualified person" as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section of the IRS Regulations and which might result in a possible "excess benefit transaction" as defined in Section 4958(c)(1)(A) of the Internal Revenue Code and as amplified by Section of the IRS Regulations. This policy is intended to supplement but not replace any applicable state and federal laws governing conflict of interest applicable to nonprofit and charitable organizations. Section 2 Definitions (a)interested Person Any Director, principal officer, member of a committee with governing Board delegated powers, or any other person who is a "disqualified person" as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section of the IRS Regulations, who has a direct or indirect financial interest, as defined below, is an interested person. (b) Financial Interest - A person has a financial interest if the person has, directly or indirectly, through business, investment, or family: (1) An ownership or investment interest in any entity with which the LLWIA has a transaction or arrangement; (2) A compensation arrangement with the LLWIA or with any entity or individual with which the LLWIA has 6

7 a transaction or arrangement; or (3) A potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the LLWIA is negotiating a transaction or arrangement. Compensation includes direct and indirect remuneration as well as gifts or favors that are not insubstantial. A financial interest is not necessarily a conflict of interest. Under Section 3, paragraph B, a person who has a financial interest may have a conflict of interest only if the appropriate governing Board or committee decides that a conflict of interest exists. Section 3 Conflict of Interest Avoidance Procedures (a)duty to Disclose - In connection with any actual or possible conflict of interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the Board and members of committees with governing Board delegated powers considering the proposed transaction or arrangement. (b) Determining Whether a Conflict of Interest Exists- After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he/she shall leave the governing Board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or committee members shall decide if a conflict of interest exists. (c) Procedures for Addressing the Conflict of Interest- An interested person may make a presentation at the governing Board or committee meeting but, after the presentation, he/she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest. The chairperson of the governing Board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the governing Board or committee shall determine whether the LLWIA can obtain, with reasonable efforts, a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the governing Board or committee shall determine by a majority vote of the disinterested Board members whether the transaction or arrangement is in the LLWIA's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, it shall make its decision as to whether to enter into the transaction or arrangement. (d)violations of the Conflicts of Interest Policy- If the governing Board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing Board or committee determines the member has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action. Section 4 Records of Board and Board Committee Proceedings The minutes of meetings of the governing Board and all committees with Board delegated powers shall contain: (a) The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the governing Board's or committee's decision as to whether a conflict of interest in fact existed. (b) The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings. 7

8 Section 5 Compensation Approval Policies A voting member of the governing Board who receives compensation, directly or indirectly, from the LLWIA for services is precluded from voting on matters pertaining to that member's compensation. A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the LLWIA for services is precluded from voting on matters pertaining to that member's compensation. No voting member of the governing Board or any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the LLWIA, either individually or collectively, is prohibited from providing information to any committee regarding compensation. When approving compensation for Board Members, officers and employees, contractors, and any other compensation contract or arrangement, in addition to complying with the conflict of interest requirements and policies contained in the preceding and following sections of this article as well as the preceding paragraphs of this section of this article, the Board or a duly constituted compensation committee of the Board shall also comply with the following additional requirements and procedures: (a) The terms of compensation shall be approved by the Board or compensation committee prior to the first payment of compensation; (b) All members of the Board or compensation committee who approve compensation arrangements must not have a conflict of interest with respect to the compensation arrangement as specified in IRS Regulation Section (c)(iii), which generally requires that each Board member or committee member approving a compensation arrangement between this organization and a "disqualified person" (as defined in Section 4958(f)(1) of the Internal Revenue Code and as amplified by Section of the IRS Regulations): (1) Is not the person who is the subject of the compensation arrangement, or a family member of such person; (2) Is not in an employment relationship subject to the direction or control of the person who is the subject of the compensation arrangement; (3) Does not receive compensation or other payments subject to approval by the person who is the subject of the compensation arrangement; (4) Has no material financial interest affected by the compensation arrangement; and (5) Does not approve a transaction providing economic benefits to the person who is the subject of the compensation arrangement, who in turn has approved or will approve a transaction providing benefits to the Board or committee member. (c) The Board or compensation committee shall obtain and rely upon appropriate data as to comparability prior to approving the terms of compensation. Appropriate data may include the following: (1) Compensation levels paid by similarly situated organizations, both taxable and tax-exempt, for functionally comparable positions. "Similarly situated" organizations are those of a similar size, purpose, and with similar resources; (2) The availability of similar services in the geographic area of this organization; (3) Current compensation surveys compiled by independent firms; (4) Actual written offers from similar institutions competing for the services of the person who is the subject of the compensation arrangement; As allowed by IRS Regulation , if this organization has average annual gross receipts (including contributions) for its three prior tax years of less than $1 million, the Board or compensation committee will have obtained and relied upon appropriate data as to comparability if it obtains and relies upon data on compensation paid by three comparable organizations in the same or similar communities for similar services. (d) The terms of compensation and the basis for approving them shall be recorded in written minutes of the meeting of the Board or compensation committee that approved the compensation. Such documentation shall include: (1) The terms of the compensation arrangement and the date it was approved; (2) The members of the Board or compensation committee who were present during debate on the transaction, those who voted on it, and the votes cast by each Board or committee member; (3) The comparability data obtained and relied upon and how the data was obtained; (4) If the Board or compensation committee determines that reasonable compensation for a specific position in this organization or for providing services under any other compensation arrangement with this organization is higher or lower than the range of comparability data obtained, the Board or committee 8

9 shall record in the minutes of the meeting the basis for its determination; (5) If the Board or committee makes adjustments to comparability data due to geographic area or other specific conditions, these adjustments and the reasons for them shall be recorded in the minutes of the Board or committee meeting; (6) Any actions taken with respect to determining if a Board or committee member had a conflict of interest with respect to the compensation arrangement, and if so, actions taken to make sure the member with the conflict of interest did not affect or participate in the approval of the transaction (for example, a notation in the records that after a finding of conflict of interest by a member, the member with the conflict of interest was asked to, and did, leave the meeting prior to a discussion of the compensation arrangement and a taking of the votes to approve the arrangement); (7) The minutes of Board or committee meetings at which compensation arrangements are approved must be prepared before the later of the date of the next Board or committee meeting or 60 days after the final actions of the Board or committee are taken with respect to the approval of the compensation arrangements. The minutes must be reviewed and approved by the Board and committee as reasonable, accurate, and complete within a reasonable period thereafter, normally prior to or at the next Board or committee meeting following final action on the arrangement by the Board or committee. Section 6 Annual Statements Each Director and member of a committee with governing Board delegated powers shall annually sign a statement that affirms such person: (a) Has received a copy of the conflicts of interest policy; (b) Has read and understands the policy; (c) Has agreed to comply with the policy; and (d) Understands that LLWIA is a charitable corporation and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. Section 7 Periodic Reviews To ensure the LLWIA operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted by a committee of the Board. The periodic reviews shall, at a minimum, include the following subjects: (a) Whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's-length bargaining. (b) Whether partnerships, joint ventures, and arrangements with management organizations conform to the LLWIA's written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes, and do not result in inurement, impermissible private benefit, or in an excess benefit transaction. Section 8 Use of Outside Experts When conducting the periodic reviews as provided for in Section 7, the LLWIA may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the governing Board of its responsibility for ensuring that periodic reviews are conducted. ARTICLE IX VOLUNTEERS 9

10 Section 1 Terms of Participation Upon the submission of a registration form, any individual eighteen years of age or older may register as a volunteer of the LLWIA and participate on any of its Volunteer Committees. There are no dues or minimum donation required to volunteer. A volunteer receives no compensation from the LLWIA and is not, as such, personally liable for the debts, liabilities, or obligations of the LLWIA. The LLWIA shall keep a book containing the name, address, and contact information of each registered volunteer, along with the name of each committee on which he or she is a participant. Any volunteer whose action or behavior within the LLWIA is deemed a detriment to or a misrepresentation of the LLWIA, as determined by the Board, is subject to removal from any and all committees. Individual volunteers are encouraged to make recommendations to the Board, but have no voting rights in regard to motions, resolutions, or other actions taken by the LLWIA or its Board of Directors. ARTICLE X VOLUNTEER COMMITTEES Section 1 Standing Committees The Board may shall appoint volunteers to be committee chairs for Volunteer Committees. Committee chairs and volunteers agree to work to achieve the objectives and purposes of the LLWIA. Each committee chair shall report on deliberations and progress made by the committee at the regular meetings of the Board. Each committee chair must maintain a complete file on all committee activities and prepare a final report to a designated Board of Directors member. This report should include, but is not limited to, committee activities, accomplishments, projects not completed, proposed budget requirements for the ensuing fiscal year, and recommendations. The final report should be submitted to the Board one month prior to the Annual Meeting and presented at the Annual Meeting or at such other intervals as may be determined by the President or the Board. Section 2 Watershed Committee The Watershed Committee shall report to the Vice-president. It shall be the responsibility of the Watershed Committee to: (a) Evaluate any public or private proposed development, program, and policy that may impact the watershed and make recommendations respecting such programs or policies. (b) Develop, implement, and administer stewardship and watershed-friendly projects that will improve the water quality and ecology of Loon Lake and its watershed. (c) Develop, implement, and administer programs that will lead to the elimination and/or control of pollution and within the watershed that will adversely affect lake or river ecology. (d) Coordinate and cooperate in the development and promotion of the above programs and related educational programs and campaigns. Section 3 Finance Committee The Finance Committee shall report to the Treasurer. It shall be the responsibility of the Finance Committee to: (a) In conjunction with the Treasurer, prepare a proposed annual budget for the next fiscal year and submit it to the Board for approval prior to the Annual Meeting. (b) Assure that all appropriate tax returns are filed with New York State and the Internal Revenue Service. (c) In cooperation with the Outreach Committee, prepare and execute strategies to receive voluntary contributions and seek other sources of funding from donors. (d) Review the annual report as prepared by the Treasurer and present an analysis at the first scheduled 10

11 meeting of the Board after the beginning of the fiscal year. Section 4 Outreach Committee The Outreach Committee shall report to the Outreach Secretary. It shall be the responsibility of the Outreach Committee to: (a) Develop, implement, and administer the LLWIA's volunteer programs. (b) Publicize the volunteer programs to create better understanding and promote greater participation. (c) Develop and implement a plan to recruit volunteers. (d) Submit a report on the status of the volunteer programs to the Board. (e) Develop detailed action plans and strategies to promote participation by volunteers. (f) Develop, implement, and administer the LLWIA's educational programs and campaigns. (g) Publicize the educational programs to create better understanding and promote greater participation. (h) In cooperation with the Finance Committee, prepare and execute strategies to receive voluntary contributions and seek other sources of funding from donors. Section 5 Grants Committee The Grants Committee shall report to the Board. It shall be the responsibility of the Grants Committee to: (a) Assist the Board in preparing and executing strategies to apply for grants, and seek other sources of funding. (b) Research grant-making organizations and analyze them to identify likely funding sources for specific projects and programs. (c) Manage the process of supplying progress reports when required by a grant-making organization that has funded a project or program. (d) Coordinate with the Outreach and Watershed Committees to understanding of the goals, purposes, and programs of the LLWIA to identify projects and programs for which grants will be sought and to recommend the seeking of grants. (e) Coordinate the work of consultant grant writers that may be employed by the LLWIA. Section 6 Special Committees The Board shall establish committees and appoint committee chairs of such special committees as necessary to carry on the work of the LLWIA. Special Committees shall comply with the requirements in Section 1 of this Article. Special Committees shall be formed and dissolved by approval of at least a majority of the Board. ARTICLE XI VOLUNTEER COMMITTEE MEETINGS Section 1 Committee Meetings (a) Conduct of Meetings Volunteer Committee meetings shall be presided over by the committee chair appointed by the Board, or in his or her absence, by a presiding officer chosen by a majority of the Board. (b) Regular Committee Meetings Committees shall meet from time-to-time as their missions may require and shall meet at the call of the committee chair or at the request of 1/3 or more of its members on at least ten days notice. Committee members may attend in person or by telephone conference. (c) Meeting Notices - Notice of meetings shall be distributed by mail, electronic mail, facsimile 11

12 transmission, or sent to local papers, and posted where possible within the community. Section 2 Special Committee Meetings Special meetings of committees may be called by the majority of the Board of Directors. All volunteers shall be notified of the special meeting by mail or electronic notification. ARTICLE XII MISCELLANEOUS Section 1 Amendments These Bylaws may be altered, amended or repealed and new Bylaws may be adopted by a majority of the entire Board at any regular meeting or special meeting, provided that at least ten days written notice is given of intention to alter, amend or repeal or to adopt new Bylaws at such meeting. Section 2 Construction and Terms If there is any conflict between the provisions of these Bylaws and the articles of incorporation of the LLWIA, the provisions of the articles of incorporation shall govern. Should any of the provisions or portions of these Bylaws be held unenforceable or invalid for any reason, the remaining provisions and portions of these Bylaws shall be unaffected by such holding. All references in these Bylaws to the articles of incorporation shall be to the articles of incorporation, articles of organization, certificate of incorporation, organizational charter, corporate charter, or other founding document of this LLWIA filed with an office of this state and used to establish the legal existence of this LLWIA. All references in these Bylaws to a section or sections of the Internal Revenue Code shall be to such sections of the Internal Revenue Code of 1986 as amended from time to time, or to corresponding provisions of any future federal tax code. Section 3 Fiscal Year, Audit, and Review The fiscal year of the LLWIA shall be August 1 to July 31 of each year. Section 4 Delivery of Notices Whenever any notice is required by the Bylaws, it shall be deemed to be sufficient if mailed via first class mail to the last known address of the intended recipient or to the last known address of the person. Such notice may be waived in writing by the intended recipient

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