WILLIAM DONALD SCHAEFER, Governor                            Ch. 686

(ii) 1. Contracts or business relationships that are in existence on or
before April 1, 1993 that would constitute a beneficial interest of, or a compensation
arrangement with, a board member under subparagraph (i) of this paragraph may remain
in existence until the end of that board member's existing term.

2.        If a board member is reappointed to a subsequent term, a
contract or business relationship exempted under subparagraph (ii)1 of this paragraph
may not be continued.

3.        A contract or business relationship exempted under
subparagraph (ii) 1 of this paragraph may not be amended or altered while the board
member described under that paragraph remains on the board.

(iii) Nothing in this section may be construed to prohibit a hospital
officer, director, or administrator, or a health care practitioner licensed under the Health
Occupations Article from serving on the board.

(iv) For the purposes of this paragraph, "compensation" does not
include compensation of less than $500 in any calendar year.]

(4) A NONPROFIT HEALTH SERVICE PLAN INCORPORATED IN THIS
STATE UNDER THIS SUBTITLE SHALL BE SUBJECT TO THE PROVISIONS OF § 2-419 OF
THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

(4) (I) SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH, A CONTRACT
OR OTHER TRANSACTION BETWEEN A NONPROFIT HEALTH SERVICE PLAN AND ANY
OF ITS BOARD MEMBERS, OR BETWEEN A NONPROFIT HEALTH SERVICE PLAN AND
ANY OTHER CORPORATION, FIRM, OR ENTITY IN WHICH ANY BOARD MEMBER IS A
DIRECTOR OR HAS A MATERIAL FINANCIAL INTEREST, IS NOT VOID OR VOIDABLE
SOLELY BECAUSE OF:

1. THE COMMON DIRECTORSHIP OR THE FINANCIAL
INTEREST OF THE BOARD MEMBER;

2. THE PRESENCE OF THE BOARD MEMBER AT THE
MEETING OF THE BOARD DURING WHICH THE CONTRACT OR TRANSACTION IS
AUTHORIZED, APPROVED, OR RATIFIED; OR

3. THE COUNTING OF THE VOTE OF THE BOARD MEMBER
FOR THE AUTHORIZATION, APPROVAL, OR RATIFICATION OF THE CONTRACT OR
TRANSACTION.

(II) A CONTRACT OR TRANSACTION IS NOT VOID OR VOIDABLE
UNDER THE PROVISION OF THIS PARAGRAPH IF;

1. THE FACT OF THE COMMON DIRECTORSHIP OR
FINANCIAL INTEREST OF THE BOARD MEMBER IS DISCLOSED OR KNOWN TO THE
BOARD;

2. THE BOARD AUTHORIZES, APPROVES, OR RATIFIES THE
CONTRACT OR TRANSACTION BY THE AFFIRMATIVE VOTE OF A MAJORITY OF

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