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8-K - CURRENT REPORT - HireQuest, Inc. | ccni_8k.htm |
Exhibit 3.2
AMENDED AND RESTATED BYLAWS
OF
Command Center, Inc.
(a Washington corporation)
Amended and Restated
As of September 5, 2017
TABLE OF CONTENTS
ARTICLE I Corporate Offices
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1
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ARTICLE II Stock
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1
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2.1 Issuance of Shares
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(a)
Authorized Shares
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1
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(b)
Board Authorization for Issuance
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1
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(c)
Shares Subject to Restrictions
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1
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(d)
When Fully Paid
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1
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(e)
Re-acquisition
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1
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2.2 Fractional Shares or
Scrip
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1
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(a)
Issuance
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1
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(b)
Scrip
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1
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(c)
Rights of Holders
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1
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(d)
Conditions on Issuance
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2
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2.3 Issuance of Rights or Options to
Purchase Shares
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2
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2.4 Preemptive Rights
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2
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2.5 Certificates of
Stock
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2
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2.6 Lost or Destroyed
Certificates
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2
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2.7 Stock Records
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2
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2.8 Record Owners
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3
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2.9 Stock Transfers
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(a)
Method of Transfer
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3
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(b)
Surrender of Old Certificate to Secretary
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3
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(c)
Recording Transfers
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3
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2.10 Restrictions on
Transfer
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3
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i
TABLE
OF CONTENTS
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ARTICLE III SHAREHOLDERS
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3
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3.1 Annual Meeting
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3.2 Special Meetings
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4
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3.3 Adjourned Meetings
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4
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3.4 Meeting Place
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4
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3.5 Chairman of the
Meeting
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4
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3.6 Notice of Shareholders'
Meetings
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4
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(a)
Annual Meetings
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4
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(b)
Special Meetings
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4
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(c)
Meetings Concerning Extraordinary Acts
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5
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(d)
Adjourned Meetings
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5
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3.7 Waiver of Notice
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5
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(a)
Written Waiver
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5
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(b)
Waiver by Attendance
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5
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(c) Waiver of
Objection to Particular Matter
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5
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3.8 Stockholder Proposals
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5
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(a) Timely
Notice
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5
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(b) Stock
holder Nominations
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6
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(c) Other
Stockholder Proposals
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6
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(d) Special
Meetings of Stockholders
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7
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(e) Effect of
Noncompliance
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7
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ii
TABLE OF CONTENTS
3.9 Quorum
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(a)
Action if Quorum Present
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7
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(b)
Share Represented for Entire Meeting
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7
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3.10 Attendance by Communications
Equipment
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7
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3.11 Voting
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8
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(a)
General Rule
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8
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(b)
Voting on Extraordinary Acts
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8
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(c)
Election of Directors
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8
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(d)
Amendments to Quorum Rules
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8
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3.12 Proxies
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8
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(a)
Voting by Proxy
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8
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(b)
Proxy Appointment
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8
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(c)
Term of Appointment
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8
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(d)
Death or Incapacity of Shareholder
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8
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(e)
Corporation's Power to Accept Proxy's Actions
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8
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3.13 Corporation's Acceptance of
Votes
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8
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(a)
Acceptance of Vote
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8
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(b)
Vote Not by Shareholder
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8
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(c)
Rejection of Vote
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9
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3.14 Shareholders' List for
Meeting
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(a)
Shareholders' List
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9
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(b)
List Available for Inspection
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9
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(c)
List at Meeting
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9
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(d)
Right to Copy
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9
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3.15 Fixing the Record
Date
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9
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(a)
Date for Meetings
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9
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(b)
Date for Adjourned Meetings
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10
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(c)
Date for Dividends and Distributions
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10
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(d)
Date for Action without Meeting
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10
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3.16 Action by Shareholders without a
Meeting
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10
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(a)
Action Agreed to by All Shareholders
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10
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(b)
Record Date
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10
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(c)
Withdrawal of Consent
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10
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(d)
Effective Date of Action
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10
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(e)
Action by Consent
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10
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3.17 Ratification
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10
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iii
TABLE
OF CONTENTS
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ARTICLE IV Board of Directors
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11
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4.1 Management
Responsibility
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11
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4.2 Committees
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11
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(a)
Creation
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11
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(b)
Approval of Committees
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11
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(c)
Rules Governing Committees
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11
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(d)
Powers of Committees
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11
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(e)
Limitations on Committee Action
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11
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(f)
Minutes
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(g) No
Relief from Responsibility
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4.3 Duties of Directors
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(a) Due
Care and Loyalty
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(b)
Right to Rely on Experts
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(c)
Failure to Act in Good Faith
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12
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4.4 Number and Qualification of
Directors
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12
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4.5 Election of
Directors
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12
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(a)
Initial Directors; Annual Election
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(b)
Cumulative Voting
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(c)
Election
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12
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4.6 Term of Office
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12
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4.7 Vacancy on Board of
Directors
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12
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4.8 Resignation
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13
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4.9 Removal
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(a)
Special Meeting
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(b)
Voting
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13
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4.10 Meetings
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(a)
Annual Meeting
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(b)
Regular Meetings
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13
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(c)
Special Meetings
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13
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(d)
Adjourned Meetings
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13
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iv
TABLE OF CONTENTS
4.11 Quorum and Voting of
Directors
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13
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(a)
Majority Constitutes a Quorum
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13
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(b)
Action in Absence of a Quorum
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13
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(c)
Dissent by Directors
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14
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4.12 Attendance by Communications
Equipment
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14
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4.13 Action by Directors without a
Meeting
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14
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4.14 Notice of Meeting
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14
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(a)
Regular Meetings
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14
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(b)
Special Meetings
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14
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(c)
Waiver of Notice
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14
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4.15 Chairman of the
Meeting
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4.16 Compensation
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4.17 Liability for Unlawful
Distributions
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(a)
Director's Liability
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(b)
Right to Contribution
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ARTICLE V Conflicting Interest Transactions
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5.1 Definitions
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5.2 Directors' Action
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(a)
Majority Vote
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(b)
Director's Disclosure
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(c)
Quorum
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5.3 Shareholders' Action
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(a)
Majority Vote
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(b)
Quorum
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(c)
Director's Disclosure
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v
TABLE OF CONTENTS
ARTICLE VI Indemnification
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6.1 Indemnification
Definitions
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6.2 Indemnification
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(a)
Right to Indemnity
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(b)
Conduct Concerning Employee Benefit Plans
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(c)
Legal Proceedings
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(d)
Limits on Indemnity
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(e)
Coverage of Reasonable Expenses
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6.3 Advance for Expenses
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(a)
Advances
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(b)
Director's Undertaking
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6.4 Determination and Authorization
of Indemnification
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(a)
Determination of Proper Conduct
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(b)
Board Determination
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(c)
Authorization of Indemnification
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6.5 Shareholder Authorized
Indemnification and
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Advancement
of Expenses
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6.6 Indemnification of Officers,
Employees, and Agents
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20
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6.7 Insurance
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20
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6.8 Report to
Shareholders
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20
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vi
TABLE OF CONTENTS
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ARTICLE VII Officers
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7.1 Officers and Their
Duties
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(a)
Chairman of the Board
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20
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(b)
President
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20
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(c)
Vice Presidents
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(d)
Secretary
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(e)
Treasurer
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(f)
Additional Duties; Other Officers and Agents
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(g)
Authority to Enter Contracts and to Issue Checks and
Drafts
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7.2 Qualifications
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22
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7.3 Standards of Conduct for
Officers
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22
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(a) Due
Care and Loyalty
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22
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(b)
Right to Rely on Experts
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(c)
Failure to Act in Good Faith
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22
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7.4 Bonds
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7.5 Delegation
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7.6 Election and Term of
Office
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7.7 Vacancies
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7.8 Resignation
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7.9 Removal
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7.10 Compensation
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ARTICLE VIII Dividends and Distributions
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8.1 Distributions
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8.2 Measure of Effect of
Distribution
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8.3 Share Dividends
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(a)
Issuance to All Shareholders
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(b)
Issuance to Class of Shareholders
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24
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8.4 Closure of the Stock Transfer
Books
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24
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8.5 Reserves
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24
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vii
TABLE OF CONTENTS
ARTICLE IX Notices
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25
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9.1 Method of Notice
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25
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(a)
General
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25
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(b)
Methods of Communication
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25
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(c)
Effective Date of Notice to Shareholder
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25
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(d)
Notice to the Corporation
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(e)
Effective Date of Notice to Other Parties
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25
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9.2 Oral Notice
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25
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9.3 Waiver of Notice
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25
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ARTICLE X Corporate Records
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25
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10.1 Maintenance of Corporate
Records
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25
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10.2 Shareholder's Right to Inspect
and Copy Records
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26
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(a)
Inspection of Corporate Records
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(b)
Inspection of Accounting and Shareholders' Records
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10.3 Scope of Inspection
Right
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(a)
Shareholder's Agent
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26
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(b)
Copies
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26
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(c)
Charge for Copying
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(d)
Record of Shareholders
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10.4 Annual Report
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27
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ARTICLE XI Financial Matters
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27
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11.1 Books and Records of
Account
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11.2 Balance Sheet and Income
Statement
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(a)
Annual Balance Sheet and Income Statement
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27
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(b)
Copies to Shareholders
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27
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11.3 Deposits
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11.4 Loans
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11.5 Fiscal Year
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27
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viii
TABLE
OF CONTENTS
ARTICLE XII Amendment of Articles and Bylaws
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27
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12.1 Amendment of
Articles
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27
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(a) By
the Board
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28
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(b) By
the Board and Shareholders
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28
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12.2 Amendment of Bylaws by the
Shareholders
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28
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12.3 Amendment of Bylaws by the
Board
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28
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ARTICLE XIII Corporate Seal
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28
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ARTICLE XIV Miscellany
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28
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14.1 Inspector of
Elections
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28
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14.2 Duties of Inspector of
Elections
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29
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14.3 Rules of Order
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29
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(a)
Robert's Rules Govern
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29
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(b)
Chairman of Meeting
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29
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(c)
Adjournment Due to Disorder
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29
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(d)
Removal of Persons Not Shareholders
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29
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(e)
Matters the Proper Subject of Action
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29
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14.4 Number and Gender
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14.5 Severability
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30
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ARTICLE XV Authentication
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ix
ARTICLE I
Corporate Offices
The
corporation shall maintain a registered office in the State of
Washington. The Board may establish other offices in or outside the
State of Washington.
ARTICLE II
Stock
2.1
Issuance of
Shares.
(a) Authorized
Shares. The corporation may
issue the number of shares of each class or series authorized by
the Articles. Shares that are issued are outstanding shares until
they are reacquired, redeemed, converted, or
cancelled.
(b) Board
Authorization for Issuance. The
Board must authorize any issuance of shares. The Board may issue
shares in exchange for consideration consisting of any tangible or
intangible property or benefit to the corporation, including cash,
promissory notes, services performed, contracts for services to be
performed, or other securities of the corporation. The Board's
authorization must state the maximum number of shares of each class
or series that may be issued and the price for each
share.
(c) Sales Subject to
Restrictions. The corporation
may issue shares which are subject to restrictions on their
transfer, as provided in Section 2.10.
(d) When Fully
Paid. When the corporation has
received the consideration in exchange for which the Board has
authorized the issuance of shares, the shares issued will be fully
paid and nonassessable.
(e) Re-Acquisition.
The corporation may acquire its own shares. Shares so acquired
shall constitute authorized but unissued
shares.
2.2 Fractional Shares or
Scrip.
(a) Issuance.
The corporation may:
(1)
Issue fractions of a share or pay in money the value of fractions
of a share;
(2)
Arrange for disposition of fractional shares by the
shareholders;
(3)
Issue scrip entitling the holder to receive a full share upon
surrendering enough scrip to equal a full share.
(b) Scrip.
Each certificate representing scrip must be conspicuously labeled
"scrip," and must state on its face:
(1)
The name of this corporation;
(2)
That this corporation is organized under the laws of the State of
Washington;
(3)
The name of the person to whom it is issued; and
(4)
The fractional portion and class of shares and the designation of
the series, if any, the certificate represents.
(c)
Rights of Holders. The holder of a fractional share is entitled to
exercise the rights of a shareholder, including the right to vote,
to receive dividends, and to participate in the assets of the
corporation upon liquidation. The holder of scrip is not entitled
to any of these rights unless the scrip so provides.
1
(d)
Conditions on Issuance. The Board may authorize the issuance of
scrip subject to any condition considered desirable,
including:
(1)
That the scrip will become void if not exchanged for full shares
before a specified date; and
(2)
That the shares for which the scrip is exchangeable may be sold and
the proceeds paid to the scripholders.
2.3 Issuance of Rights or
Options to Purchase Shares. The
corporation may issue rights, options, or warrants for the purchase
of shares of the corporation. The Board shall determine the terms
upon which the rights, options, or warrants are issued, their form
and content, and the consideration for which the shares are to be
issued upon exercise of any such right, option, or
warrant.
2.4 Preemptive
Rights. Shareholders of this
corporation will have no preemptive rights to acquire additional
shares issued by the corporation, or any securities convertible
into, or carrying or evidencing any rights or option to purchase,
any such shares.
2.5 Certificates of
Stock. The Secretary shall
issue stock certificates evidencing ownership of shares in the
corporation. Stock certificates shall be issued in their proper
numerical order. Each shareholder shall be entitled to a
certificate which has been signed either manually or in facsimile
by the President or a Vice President, which has been attested to by
the Secretary or an Assistant Secretary, and which has been sealed
with the corporate seal. The Secretary may issue a certificate
bearing the signature of an individual who no longer holds that
office. Such a certificate shall have the same effect as it would
if the person still held office on the date of issue. Every stock
certificate shall state:
(a)
The name of the corporation;
(b)
That the corporation is incorporated in Washington;
(c)
The name of the person to whom the shares represented by the
certificate are issued;
(d)
The number, class, and designation of the series, if any, of the
shares represented by the certificate;
(e)
If there is more than one class, a statement that the corporation
will furnish to any shareholder, upon request and without charge, a
full written statement of the designations, preferences,
limitations, and relative rights of the shares of each class
authorized by the corporation, and the variations in rights,
preferences, and limitations determined for each series;
and
(f)
Either a complete description or a reference to the existence and
general nature of any restrictions on the ownership or transfer of
the shares which the certificate represents.
2.6 Lost or Destroyed
Certificates. The Secretary may
issue a replacement certificate in place of a lost, mutilated, or
destroyed certificate, upon proof that the certificate was lost,
mutilated, or destroyed, if the holder of the certificate gives a
satisfactory bond of indemnity to the corporation. The Secretary
may issue a replacement certificate without requiring any bond when
the Board determines it is proper to do so.
2.7 Stock
Records. The Secretary shall
keep the stock transfer books at the registered office or principal
place of business of the corporation, or at the office of the
corporation's transfer agent or registrar. The Secretary, or the
transfer agent or registrar, shall enter on the stock transfer
books the name and address of each shareholder, together with the
class, number of shares, and date on which the shares were issued
or transferred to the shareholder. Each shareholder shall keep the
shareholder's current address on file with the
Secretary.
2
2.8 Record
Owners. The corporation shall
treat a shareholder of record as the owner of the shares for all
purposes. The corporation shall not be bound to recognize any claim
to or interest in any share on the part of any other person,
whether or not it has notice of such a claim or interest, until
that person’s name has been entered on the transfer books as
the shareholder of record.
2.9 Stock
Transfers.
(a) Method of
Transfer. Subject to any
restrictions placed on the transfer of shares at or prior to the
time such shares are issued, shareholders may transfer their shares
by delivering the certificates to the transferee, accompanied
by:
(1)
An assignment in writing on the back of the certificate, or an
assignment separate from certificate, or a written power of
attorney to sell, assign, and transfer the shares which is signed
by the record holder of the certificate; and
(2)
Any additional documents, instruments, or other evidences necessary
to satisfy the requirements of any transfer restrictions applicable
to the shares by law or by contract.
(b) Surrender of Old
Certificate to Secretary. Upon
receipt of a transferred certificate, a transferee shall surrender
the certificate, along with evidence that the certificate was
transferred to the transferee, to the Secretary, so that the
Secretary may record the transfer on the stock transfer books and
issue a new certificate to the transferee.
(c) Recording
Transfers. Except as otherwise
specifically provided in these Bylaws, the Secretary shall not
record any shares of stock as having been transferred on the books
of the corporation until the outstanding certificates for those
shares have been surrendered to the corporation. The Secretary
shall cancel all certificates surrendered to the corporation for
transfer. The Secretary shall issue no new certificate until the
former certificate representing those shares has been surrendered
and cancelled, except as provided in Section
2.6.
2.10 Restrictions on
Transfer. The Board may
restrict the transfer of the corporation's shares as permitted by
law. The existence of any such restriction shall be noted
conspicuously on the front or back of the certificate. No such
restriction will affect shares issued before the restriction was
adopted, unless the holders of the shares are parties to the
restriction agreement or voted in favor of the
restriction.
ARTICLE III
Shareholders
3.1 Annual
Meeting. The corporation shall
hold a meeting of the shareholders annually on a date and at a time
and place set by the Board. The order of business at the annual
meeting of shareholders shall be as follows:
(a)
Calling the meeting to order;
(b)
Proof of notice of meeting, or filing of waivers of
notice;
(c)
Reading of minutes of the last annual meeting;
(d)
Reports from officers;
(e)
Reports from committees;
3
(f)
Election of directors; and
(g)
Other business.
3.2 Special
Meetings. The corporation shall
hold a special meeting of the shareholders:
(a)
On call of the Board, the Chairman, or the President;
or
(b)
If the holders of at least ten percent (10%) of all the votes
entitled to be cast on any issue proposed to be considered at the
meeting, sign, date, and deliver to the Secretary one or more
written demands for a special meeting which describe the purposes
for the meeting.
Only
issues identified in the notice of a special meeting may be
conducted at that meeting. The Secretary shall issue notice of any
special meeting as provided in Paragraph 3.6(b).
3.3 Adjourned
Meetings. The chairman of the
meeting may adjourn a shareholders' meeting at any time a quorum,
as that term is defined in Section 3.8, is not present. With the
consent of the holders of a majority of the shares represented in
person or by proxy, and entitled to vote at a shareholders’
meeting, the chairman of the meeting may adjourn the meeting for
any reason to a time and place determined by the chairman of the
meeting. The chairman of the meeting may adjourn a meeting at which
directors are to be elected only from day to day until the
directors are elected. The shareholders may conduct any business at
an adjourned meeting which they might have conducted at the
original meeting.
3.4 Meeting
Place. Shareholders' meetings
may be held either at the corporation's registered Washington
office or at any other place designated by the Board and identified
in, the notice of the meeting.
3.5 Chairman of the
Meeting. The Chairman shall
serve as chairman of all shareholders' meetings. In the absence of
the Chairman, the President or any other person appointed by the
Board shall serve as chairman of a shareholders’
meeting.
3.6 Notice of
Shareholders' Meetings.
(a) Annual
Meetings. The corporation shall
notify the shareholders of each annual shareholders' meeting. The
corporation shall deliver notice, as provided in Section 9.1, at
least ten (10), but not more than sixty (60), days before the
meeting date. Notice of an annual meeting need not include a
description of the purposes of the meeting, except as provided
under Paragraph (c) below. The corporation must deliver notice to
all shareholders entitled to vote at the annual meeting, and must
notify certain other shareholders of an annual meeting as provided
in Paragraph (c) below.
(b) Special
Meetings. The corporation shall
notify the shareholders entitled to vote on the actions to be
considered at any special meeting called pursuant to Section 3.2.
The corporation need not notify all shareholders unless required to
do so as provided in Paragraph (c) below. The notice must include a
description of the purposes for which the meeting was called, and
be accompanied by other materials described in Paragraph (c) below.
The corporation must deliver the notice at least ten (10), but not
more than sixty (60), days before the meeting date. If the
corporation fails to issue the notice within ten (10) days after
shareholders holding ten percent (10%) or more of the outstanding
shares entitled to vote on a particular issue have delivered to the
Secretary written demand for a special meeting to consider that
issue in accordance with Paragraph 3.2(b), the shareholders
requesting the meeting may issue the notice on behalf and at the
expense of the corporation.
4
(c) Meetings Concerning
Extraordinary Acts. If a
purpose of a shareholders' meeting is to consider action on an
amendment to the Articles, a planned merger or share exchange, a
proposed sale, lease, or other disposition of all or substantially
all of the property of the corporation other than in the regular
course of business, or the dissolution of the corporation, the
corporation shall notify all shareholders, whether or not entitled
to vote, at least twenty (20), but not more than sixty (60), days
before the date of the meeting. The notice must describe the
proposed action with reasonable clarity and must contain or be
accompanied by a copy of the proposed Amendment, the plan of merger
or exchange, or the agreement of sale or lease, as
applicable.
(d) Adjourned
Meetings. In general, the
corporation need not provide notice to the shareholders of an
adjourned meeting if the time, date, and place for reconvening the
meeting is announced before the meeting is adjourned. However, if
the chairman of a meeting adjourns a meeting for more than one
hundred twenty (120) days from the date of the original meeting,
the Secretary shall fix a new record date for the adjourned meeting
and shall issue a new notice of the adjourned meeting to each
shareholder of record entitled to notice of or to vote at the
adjourned meeting.
3.7 Waiver of
Notice.
(a) Written
Waiver. A shareholder may waive
any notice before or after the date and time of the meeting that is
the subject of the notice. Except as provided by Paragraphs (b) and
(c), the waiver must be in writing, signed by the shareholder
entitled to the notice, and delivered to the corporation for
inclusion in the minutes or filing with the corporate
records.
(b) Waiver by
Attendance. A shareholder's
attendance at a meeting waives objection to lack of notice or
defective notice of the meeting, unless the shareholder at the
beginning of the meeting objects to holding the meeting or
transacting business at the meeting.
(c) Waiver of Objection to
Particular Matter. A
shareholder waives objection to consideration of a particular
matter at a meeting that is not within the purposes described in
the meeting notice, unless the shareholder objects to considering
the matter when it is presented.
3.8 Stockholder
Proposals.
(a) Timely Notice. For business
(including, but not limited to, director nominations) to be
properly brought before an annual meeting by a holder, the holder
or holders of record intending to propose the business (the
“Proposing
Stockholder”) must have given timely notice thereof
pursuant to this Section 3.8(a) or Section 3.8(c) below, as
applicable, in writing to the secretary of the corporation even if
such matter is already the subject of any notice to the
stockholders or a disclosure made in a press release or in a
document filed by the corporation with the Securities and Exchange
Commission pursuant to the Exchange Act (“Public Disclosure”) from the board
of directors. To be timely, a Proposing Stockholder’s notice
must be delivered to or mailed and received at the principal
executive offices of the corporation: (x) not later than the close
of business on the 60th day, nor earlier than the close of business
on the 90th day in advance of the anniversary of the previous
year’s annual meeting if such meeting is to be held on a day
which is not more than 30 days in advance of the anniversary of the
previous year’s annual meeting or not later than 70 days
after the anniversary of the previous year’s annual meeting;
and (y) with respect to any other annual meeting, the close of
business on the 10th day following the date of Public Disclosure of
the date of such meeting. In no event shall the Public Disclosure
of an adjournment or postponement of an annual meeting commence a
new notice time period (or extend any notice time
period).
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(b)
Stockholder
Nominations. For the nomination of any person or persons for
election to the board of directors, a Proposing Stockholder’s
notice to the secretary of the corporation shall set forth (i) the
name, age, business address and residence address of each nominee
proposed in such notice, (ii) the principal occupation or
employment of each such nominee, (iii) the number of shares of
capital stock of the corporation which are owned of record and
beneficially by each such nominee (if any), (iv) such other
information concerning each such nominee as would be required to be
disclosed in a proxy statement soliciting proxies for the election
of such nominee as a director in an election contest (even if an
election contest is not involved) or that is otherwise required to
be disclosed, under Section 14(a) of the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated
thereunder (the “Exchange
Act”), (v) the consent of the nominee to being named
in the proxy statement as a nominee and to serving as a director if
elected, and (vi) as to the Proposing Stockholder: (A) the name and
address of the Proposing Stockholder as they appear on the
corporation’s books and of the beneficial owner, if any, on
whose behalf the nomination is being made, (B) the class and number
of shares of the corporation which are owned by the Proposing
Stockholder (beneficially and of record) and owned by the
beneficial owner, if any, on whose behalf the nomination is being
made, as of the date of the Proposing Stockholder’s notice,
and a representation that the Proposing Stockholder will notify the
Corporation in writing of the class and number of such shares owned
of record and beneficially as of the record date for the meeting
promptly following the later of the record date or the date notice
of the record date is first publicly disclosed, (C) a description
of any agreement, arrangement or understanding with respect to such
nomination between or among the Proposing Stockholder and any of
its affiliates or associates, and any others (including their
names) acting in concert with any of the foregoing, and a
representation that the Proposing Stockholder will notify the
corporation in writing of any such agreement, arrangement or
understanding in effect as of the record date for the meeting
promptly following the later of the record date or the date notice
of the record date is first publicly disclosed, (D) a description
of any agreement, arrangement or understanding (including any
derivative or short positions, profit interests, options, hedging
transactions, and borrowed or loaned shares) that has been entered
into as of the date of the Proposing Stockholder’s notice by,
or on behalf of, the Proposing Stockholder or any of its affiliates
or associates, the effect or intent of which is to mitigate loss
to, manage risk or benefit of share price changes for, or increase
or decrease the voting power of the Proposing Stockholder or any of
its affiliates or associates with respect to shares of stock of the
corporation, and a representation that the Proposing Stockholder
will notify the Corporation in writing of any such agreement,
arrangement or understanding in effect as of the record date for
the meeting promptly following the later of the record date or the
date notice of the record date is first publicly disclosed, (E) a
representation that the Proposing Stockholder is a holder of record
of shares of the corporation entitled to vote at the meeting and
intends to appear in person or by proxy at the meeting to nominate
the person or persons specified in the notice, and (F) a
representation whether the Proposing Stockholder intends to deliver
a proxy statement and/or form of proxy to holders of at least the
percentage of the corporation’s outstanding capital stock
required to approve the nomination and/or otherwise to solicit
proxies from stockholders in support of the nomination. The
Corporation may require any proposed nominee to furnish such other
information as it may reasonably require to determine the
eligibility of such proposed nominee to serve as an independent
director of the Corporation or that could be material to a
reasonable stockholder's understanding of the independence, or lack
thereof, of such nominee.
(c)
Other Stockholder
Proposals. For all business other than director nominations,
a Proposing Stockholder’s notice to the secretary of the
corporation shall set forth as to each matter the Proposing
Stockholder proposes to bring before the annual meeting: (i) a
brief description of the business desired to be brought before the
annual meeting and the reasons for conducting such business at the
annual meeting, including the text of the proposal (including the
text of any resolutions proposed for consideration and in the event
that such business involves a proposal to amend these Bylaws, the
language of the proposed amendment), (ii) any other information
relating to such stockholder and beneficial owner, if any, on whose
behalf the proposal is being made, required to be disclosed in a
proxy statement or other filings required to be made in connection
with solicitations of proxies for the proposal and pursuant to and
in accordance with Section 14(a) of the Exchange Act and the rules
and regulations promulgated thereunder and (iii) the information
required by Section 3.8(b)(vi) above.
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(d)
Special Meetings of
Stockholders. Only such business shall be conducted at a
special meeting of stockholders as shall have been brought before
the meeting pursuant to the Corporation’s notice of meeting.
Nominations of persons for election to the board of directors may
be made at a special meeting of stockholders at which directors are
to be elected pursuant to the Corporation’s notice of meeting
(x) by or at the direction of the board of directors or any
committee thereof (or stockholders pursuant to Section 3.8 hereof)
or (y) provided that the board of directors (or stockholders
pursuant to Section 3.2(b) hereof) has determined that directors
shall be elected at such meeting, by any stockholder of the
Corporation who is a stockholder of record at the time the notice
provided for in this Section 3.8 is delivered to the secretary of
the Corporation, who is entitled to vote at the meeting and upon
such election and who complies with the notice procedures set forth
in this Section 3.8. In the event the Corporation calls a special
meeting of stockholders for the purpose of electing one or more
directors to the board of directors, any such stockholder entitled
to vote in such election of directors may nominate a person or
persons (as the case may be) for election to such position(s) as
specified in the Corporation’s notice of meeting, if the
stockholder's notice required by this Section 3.8 shall be
delivered to the secretary at the principal executive offices of
the Corporation not later than the close of business on the 60th
day prior to such special meeting and not earlier than the close of
business on the later of the 90th day prior to such special meeting
or the tenth (10th) day following the date of Public Disclosure of
the date of the special meeting and of the nominees proposed by the
board of directors to be elected at such meeting. In no event shall
the Public Disclosure of an adjournment or postponement of a
special meeting commence a new time period (or extend any notice
time period).
(e)
Effect of
Noncompliance. Notwithstanding anything in these Bylaws to
the contrary: (i) no nominations shall be made or business shall be
conducted at any annual meeting except in accordance with the
procedures set forth in this Section 3.8, and (ii) unless otherwise
required by law, if a Proposing Stockholder intending to propose
business or make nominations at an annual meeting pursuant to this
Section 3.8 does not provide the information required under this
Section 3.8 to the corporation promptly following the later of the
record date or the date notice of the record date is first publicly
disclosed, or the Proposing Stockholder (or a qualified
representative of the Proposing Stockholder) does not appear at the
meeting to present the proposed business or nominations, such
business or nominations shall not be considered, notwithstanding
that proxies in respect of such business or nominations may have
been received by the corporation. The requirements of this Section
3.8 shall apply to any business or nominations to be brought before
a meeting of shareholders by a stockholder whether such business or
nominations are to be included in the corporation’s proxy
statement pursuant to Rule 14a-8 of the Exchange Act or presented
to stockholders by means of an independently financed proxy
solicitation.
3.9 Quorum.
(a) Action if Quorum
Present. Shares entitled to
vote as a separate voting group may take action on a matter at a
meeting only if a quorum of those shares is present. In general, a
majority of the votes entitled to be cast on the matter by the
voting group constitutes a quorum of that voting group for that
matter.
(b) Share Represented for
Entire Meeting. Once a share is
represented for any purpose at a meeting other than solely to
object to holding the meeting or to transacting business at the
meeting, the share is deemed present for purposes of establishing a
quorum for the remainder of the meeting and for any adjournment of
that meeting unless a new record date is set for the adjourned
meeting in accordance with Paragraph 3.14(b).
3.10 Attendance by
Communications Equipment.
Shareholders may participate in a shareholders' meeting by any
means of communication which enables all persons participating in
the meeting to hear each other simultaneously during the meeting. A
shareholder who participates by means of communications equipment
is deemed to be present in person at the
meeting.
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3.11 Voting.
(a) General
Rule. In general, if a quorum
is present, a matter may be approved by a voting group if the votes
cast within the voting group favoring the action exceed the votes
cast within the voting group opposing the
action.
(b) Voting on
Extraordinary Acts. The
majority of shareholders entitled to vote, as well as the majority
of holders within a voting group entitled to vote, on an amendment
to the Articles, a plan of merger or share exchange, a sale of
assets other than in the regular course of business, or a proposal
to dissolve the corporation must vote in favor of the proposed
action for the corporation to take the action, unless a different
vote is required by law or the Articles or these bylaws, in which
case such express provision shall govern and control such
vote.
(c) Election of
Directors. Directors shall be
elected in accordance with the provisions of Section
4.5.
(d) Amendments to Quorum
Rules. An amendment to the
Articles adding, changing, or deleting either:
(1)
A quorum for a voting group greater or lesser than specified in
Paragraph 3.8(a); or
(2)
A voting requirement for a voting group greater than specified in
Paragraph (a) above must meet the same quorum requirement and be
adopted by the same vote and voting groups required to take action
under the quorum and voting requirements then in
effect.
3.12 Proxies.
(a) Voting by
Proxy. A shareholder may vote
the shareholder's shares in person or by proxy.
(b) Proxy
Appointment. A shareholder may
appoint a proxy to vote or otherwise act for the shareholder by
signing an appointment form, either personally or by the
shareholder's agent.
(c) Term of
Appointment. An appointment of
a proxy is effective when received by the Secretary. An appointment
is valid for eleven (11) months unless it is revoked earlier or the
appointment form expressly provides for a longer
period.
(d) Death or Incapacity of
Shareholder. The death or
incapacity of the shareholder appointing a proxy does not affect
the right of the corporation to accept the proxy's authority,
unless the Secretary is given notice of the death or incapacity
before the proxy exercises the proxy's authority under the
appointment.
(e) Corporation's Power to
Accept Proxy's Actions. The
corporation is entitled to accept a proxy's vote or other action as
that of the shareholder, subject to the provisions of Section 3.12
and to any express limitation on the proxy's authority appearing on
the face of the appointment form.
3.13 Corporation's
Acceptance of Votes.
(a) Acceptance of
Vote. If the name signed on a
vote, consent, waiver, or proxy appointment corresponds to the name
of a shareholder, the corporation may accept the vote, consent,
waiver, or proxy appointment as the shareholder’s
act.
(b) Vote Not by
Shareholder. If the name signed
on a vote, consent, waiver, or proxy appointment does not
correspond to the name of its shareholder, the corporation may
accept the vote, consent, waiver, or proxy appointment as the
shareholder's act if:
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(1)
The shareholder is an entity and the name signed purports to be
that of an officer, partner, or agent of the entity;
(2)
The name signed purports to be that of an administrator, executor,
guardian, or conservator representing the shareholder and evidence
of fiduciary status acceptable to the corporation has been
presented with respect to the vote, consent, waiver, or proxy
appointment;
(3)
The name signed purports to be that of a receiver or trustee in
bankruptcy of the shareholder, and evidence of this status
acceptable to the corporation has been presented with respect to
the vote, consent, waiver, or proxy appointment;
(4)
The name signed purports to be that of a pledgee, beneficial owner,
or attorney-in-fact of the shareholder and evidence acceptable to
the corporation of the signatory's authority to sign for the
shareholder has been presented with respect to the vote, consent,
waiver, or proxy appointment; or
(5)
Two or more persons are the shareholder as co-tenants or
fiduciaries, the name signed purports to be the name of at least
one of the co-owners, and the person signing appears to be acting
on behalf of all the co-owners.
(c) Rejection of
Vote. The corporation may
reject a vote, consent, waiver, or proxy appointment if the
Secretary has reasonable basis for doubt about the validity of the
signature or about the signatory's authority to sign for the
shareholder.
3.14 Shareholders' List for
Meeting.
(a) Shareholders'
List. After the corporation
fixes a record date for a meeting, the Secretary shall prepare an
alphabetical list of the names of all shareholders as of the record
date who are entitled to notice of a shareholders’ meeting.
The list must be arranged by voting group (and within each voting
group by class or series of shares), show the most recent address
on file of each shareholder, and identify the number of shares held
by each shareholder.
(b) List Available for
Inspection. The Secretary shall
make the shareholders' list available for inspection by any
shareholder, beginning ten (10) days prior to the meeting and
continuing through the meeting. The list will be available at the
corporation's principal office or at a place (identified in the
meeting notice) in the city where the meeting will be held. A
shareholder, or the shareholder's agent, may inspect the list
during regular business hours and at the shareholder's expense
during the period it is available for
inspection.
(c) List at
Meeting. The Secretary shall
make the shareholders' list available at the meeting. Any
shareholder or shareholder's agent may inspect the list at any time
during the meeting or any adjourned meeting.
(d) Right to
Copy. A shareholder may copy
the list as provided in Sections 10.2 and 10.3.
3.15 Fixing the Record
Date.
(a) Date for
Meetings. The Board shall fix a
record date in order to determine which shareholders are entitled
to notice of a shareholders' meeting or to vote at the meeting. If
the Board fails to fix a record date for a meeting, then the day
before the first notice of the meeting is delivered to the
shareholders shall be the record date. If the Secretary does not
issue notice of a meeting because all shareholders entitled to
notice have waived notice, then the record date shall be the date
on which the Secretary received the last waiver of
notice.
9
(b) Date for Adjourned
Meetings. Once the Secretary
has determined which shareholders are entitled to notice of or to
vote at a shareholders’ meeting, the determination is
effective for any adjournment of the meeting unless the Board fixes
a new record date. The Board must fix a new record date if the
meeting is adjourned for more than one hundred twenty (120) days
after the date fixed for the original meeting.
(c) Date for Dividends and
Distributions. If the Board
fails to fix a record date for determining which shareholders are
entitled to receive a share dividend or a distribution which does
not involve a purchase, redemption, or other acquisition of the
corporation's shares, the record date shall be the date the Board
authorizes that dividend or distribution.
(d) Date for Action
without Meeting. The record
date for determining which shareholders may vote to take action
without a meeting is the date the first shareholder signs the
consent describing the action to be taken.
3.16 Action by Shareholders
without a Meeting.
(a) Action Agreed to by
All Shareholders. Any action
required or permitted to be taken at a shareholders' meeting may be
taken without a meeting or vote if either:
(1)
the action (a "Unanimous Consent") is taken by all the shareholders
entitled to vote on the action; or
(2)
so long as this corporation is not a public company, the action is
taken by the shareholders holding of record, or otherwise entitled
to vote, in the aggregate not less than the minimum number of votes
that would be necessary to authorize or take such action at a
meeting at which all of the shares entitled to vote on the action
were present and voted (a "Majority Consent").
To
the extent that prior notice is required by law, any advance notice
required by statute to be given to nonconsenting shareholders shall
be made at least one business day prior to the effectiveness of the
action, or such longer period as required by law. The form of this
notice shall be sufficient to appraise the nonconsenting
shareholder of the nature of the action to be effected, in a manner
approved by the directors of this corporation or by the committee
or officers to whom the board has delegated that responsibility.
The consents must be delivered to the corporation for inclusion in
the minutes or filing with the corporate records.
(b) Record
Date. The record date for
determining shareholders entitled to take action without a meeting
shall be as specified in Section 3.14.
(c) Withdrawal of
Consent. A shareholder may
withdraw consent only by delivering a written notice of withdrawal
to the Secretary prior to the time that all consents are in
possession of the corporation.
(d) Effective Date of
Action. Action taken by the
shareholders without a meeting shall be effective when all consents
are in possession of the corporation, unless the consents specify a
later effective date.
(e) Action by
Consent. An action taken by
consent has the effect of a meeting vote and may be described as
such in any document.
3.17 Ratification.
Any action taken by the corporation, the directors, or the officers
which is subsequently authorized, approved, or ratified by vote of
the number of shares that would have been sufficient to approve the
action in the first instance, shall be valid and binding as though
ratified by every shareholder of the
corporation.
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ARTICLE IV
Board of Directors
4.1 Management
Responsibility. The corporation
shall have a Board of Directors, which shall be responsible for the
exercise of all corporate powers. The Board shall manage the
business, affairs, and property of the
corporation.
4.2 Committees.
(a) Creation.
The Board may create one or more Committees of directors. Each
Committee must have two or more members.
(b) Approval of
Committees. The number of
directors required to take action under Section 4.11 must approve
the creation of a Committee.
(c) Rules Governing
Committees. The rules governing
meetings, action without meetings, notice and waiver of notice, and
quorum and voting requirements of the Board, under Sections 4.10
through 4.15, apply to Committees.
(d) Powers of
Committees. Subject to the
limitations stated in Paragraph (e) below, the Board shall specify
the extent to which each Committee may exercise the authority of
the Board.
(e) Limitations on
Committee Action. A Committee
may not:
(1)
Authorize or approve a distribution except according to a general
formula or method prescribed by the Board;
(2)
Approve or propose to shareholders action which must be approved by
the shareholders;
(3)
Fill vacancies on the Board or on any Committee;
(4)
Amend the Articles;
(5)
Adopt, amend, or repeal these Bylaws;
(6)
Approve a plan of merger not requiring shareholder approval;
or
(7)
Authorize or approve the issuance or sale of shares or contract for
the sale of shares, or determine the designation and relative
rights, preferences, and limitations of a class or series of
shares.
(f) Minutes.
All Committees shall keep regular minutes of their meetings, which
shall be included in the corporate minute books at the registered
office of the corporation.
(g) No Relief from
Responsibility. Neither the
Board nor any director may be relieved of any responsibility
imposed by law, the Articles, or these Bylaws by designating a
Committee and delegating the Board's or the director’s
responsibilities to the Committee.
4.3 Duties of
Directors.
(a) Due Care and
Loyalty. Each person, who is a
director, shall perform the duties of a director, including any
duties the director may have as a member of any
Committee:
(1)
In good faith;
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(2)
In a manner the director reasonably believes to be in the best
interests of the corporation; and
(3)
With the care an ordinarily prudent person in a like position would
use under similar circumstances.
(b) Right to Rely on
Experts. In performing
corporate duties, a director may rely on information, opinions,
reports, or statements, including financial statements or other
financial data prepared or presented by:
(1)
One or more officers or employees of the corporation whom the
director reasonably believes to be reliable and competent in the
matters presented;
(2)
Legal counsel, public accountants, or other persons concerning
matters which the director reasonably believes to be within their
professional or expert competence; or
(3)
A Committee, the deliberations of which the director reasonably
believes merits confidence, concerning matters within the
Committee’s designated authority.
(c) Failure to Act in Good
Faith. A director fails to act
in good faith if the director relies on information provided by the
above persons even though the director has knowledge concerning a
particular matter that would make reliance on the information
unwarranted.
4.4 Number and
Qualification of Directors. The
Board shall consist of no fewer than one (1) and no more than nine
(9) directors. The corporation shall have one (1) director until
that number is changed in accordance with these Bylaws. If the
shareholders elect a greater or lesser number of directors than is
specified in this section, then election of that number shall
automatically amend these Bylaws to increase the number of
directors to the number elected. No director need be a shareholder
of the corporation. The Board or the Shareholders may fix the
number of directors and may, at any time, increase the size of the
Board to the maximum allowed by these Bylaws.
4.5 Election of
Directors.
(a) Initial Directors;
Annual Elections. The terms of
the initial directors will expire at the first annual meeting of
shareholders. The shareholders shall elect successor directors at
the first annual meeting of shareholders, and at each annual
meeting thereafter.
(b) Cumulative
Voting. Cumulative voting for
the election of directors is prohibited.
(c) Election.
In any election of directors, the shareholders shall elect by
plurality vote the numbers of directors equal
to the number of directors of the class whose term expires at such
meeting (or, if fewer, the number of directors properly nominated
and qualified for election).
4.6 Term of
Office. Each director shall
hold office for a one-year term until the next succeeding annual
meeting, and thereafter until the director’s successor is
elected and qualified. If a director dies, resigns, or is removed,
the director's replacement shall serve throughout the remaining
portion of the director's term, and thereafter until the director's
successor is elected and qualified.
4.7 Vacancy on Board of
Directors. In case of a vacancy
in the Board of Directors because of a director's resignation,
removal or other departure from the board, or because of an
increase in the number of directors, the remaining directors, by
majority vote, may elect a successor to hold office for the
unexpired term of the director whose position is vacant, and until
the election and qualification of a successor.
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4.8 Resignation.
A director may resign at any time by delivering written notice to
the Chairman, the President, the Secretary, or each member of the
Board. A resignation shall take effect when notice is delivered,
unless the notice specifies a later effective date. The corporation
need not accept a resignation for the resignation to be effective.
A resignation shall not affect the rights of the corporation under
any contract with the resigning director.
4.9 Removal.
(a) Special
Meeting. The shareholders may
remove one or more directors, with or without cause, only at a
special meeting of shareholders called expressly for that purpose.
The notice of the meeting must state that the purpose of the
meeting is to remove one or more directors.
(b) Voting.
The shareholders may remove a director by affirmative vote of the
holders of a majority of the shares entitled to vote on the
election of that director. A director may not be removed if votes
sufficient to elect the director are voted against the director's
removal.
4.10 Meetings.
(a) Annual
Meeting. The first meeting of
each newly elected Board shall be known as the annual Board
meeting. The Board shall hold the annual Board meeting, without
notice, immediately after the annual shareholders’ meeting or
after any special shareholders' meeting at which new directors are
elected. The Board shall hold the annual Board meeting at the same
place as the annual shareholders' meeting unless the Board
specifies another place by resolution.
(b) Regular
Meetings. The Board may hold
regular meetings at a place and on a day and hour fixed by
resolution of the Board.
(c) Special
Meetings. The Chairman or any
two directors may call a special meeting of the Board. The Board
shall hold the special meeting at the place and on the day and hour
specified by the persons calling the meeting.
(d) Adjourned
Meetings. A majority of the
directors present may vote to adjourn any meeting to another time
and place even if the number of directors present or voting does
not constitute a quorum. If the meeting is adjourned for more than
forty-eight (48) hours, the Secretary shall give notice of the time
and place of the adjourned meeting to the directors who were not
present at the time the meeting was adjourned.
4.11 Quorum and Voting of
Directors.
(a) Majority Constitutes a
Quorum. A majority of the
directors shall constitute a quorum for the transaction of business
at a meeting, except as provided in Section 4.7 and in Paragraph
(b) below. The appropriate percentage of the directors present at a
meeting at which a quorum is present may take any actions which the
directors are authorized to take on behalf of the
corporation.
(b) Action in Absence of a
Quorum. The Board may continue
to transact business at a meeting at which a quorum was initially
present. In order to take any action at a meeting at which a quorum
is no longer present, the action must be approved by a sufficient
percentage of the number of directors required to establish a
quorum.
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(c) Dissent by
Directors. A director may
abstain or dissent from any action taken. However, a director may
not dissent or abstain if the director voted in favor of the action
taken. A director who is present at a meeting when action is taken
is deemed to have assented to the action taken
unless:
(1)
The director objects at the beginning of the meeting to holding the
meeting or to transacting business at the meeting;
(2)
The director's dissent or abstention from the action taken is
entered in the minutes of the meeting; or
(3)
The director delivers written notice of the director’s
dissent or abstention to the chairman of the meeting before the
Board adjourns the meeting or to the corporation within a
reasonable time after the Board adjourns the meeting.
4.12 Attendance by
Communications Equipment. The
directors may participate in a meeting by means of any
communications equipment which enables all persons participating in
the meeting to hear each other simultaneously during the meeting. A
director who participates by means of communications equipment is
deemed to be present in person at the meeting.
4.13 Action by Directors
without a Meeting. The Board
may take any lawful action without a meeting if each director
delivers a signed consent to the corporation which describes the
action to be taken. An action approved by consent shall have the
same effect as an action approved by unanimous vote at a meeting
duly held upon proper notice, and may be described as such in any
document. All consents shall be inserted into the minute books as
if they were the minutes of a Board meeting. An action taken by
consent by the Board shall be effective when the last director
signs the consent, unless the consent specifies a later effective
date.
4.14 Notice of
Meeting.
(a) Regular
Meetings. The Secretary may,
but need not, issue notice pursuant to Article IX of any regular
Board meeting if the time and place of the regular meeting has been
fixed by resolution of the Board and a copy of the resolution has
been mailed or delivered to each director at least two (2) days
preceding the day of the first meeting held under that
schedule.
(b) Special
Meetings. The Secretary, or the
person calling a special Board meeting, shall issue notice pursuant
to Article IX of the date, time, and place of the meeting at least
two (2) days preceding the day on which the meeting is to be held.
Any Board meeting shall be properly called if each director either
has received valid notice of the meeting, is present without
objecting, or waives notice of the meeting pursuant to Paragraph
(c) below. The notice of any regular or special meeting of the
Board need not specify the purpose of the meeting or the actions
proposed for the meeting unless these Bylaws so
require.
(c) Waiver of
Notice. A director may waive
notice before or after the date and time stated in the notice. A
waiver shall be equivalent to receipt of notice. A director may
waive notice by submitting a written waiver, signed by the director
entitled to the notice, to the corporation for inclusion in the
minutes or filing with the corporate records. A director may also,
by attending or participating in a meeting, waive any required
notice of the meeting unless the director, at the beginning of the
meeting objects to holding the meeting or transacting business at
the meeting and does not thereafter vote for or assent to action
taken at the meeting.
4.15 Chairman of the
Meeting. The Chairman shall
serve as the chairman of the meeting of all Board meetings. In the
absence of the Chairman, the President or any other person
appointed by the Board shall serve as the chairman of the meeting
of a Board meeting.
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4.16 Compensation.
The Board shall fix the amount or salary to be paid to each
director for service as a director or for attendance at each
meeting of the Board. Salary or payment for service as a director
shall not preclude a director from serving the corporation in any
other capacity or from receiving compensation for service in that
other capacity.
4.17 Liability for Unlawful
Distributions.
(a) Director's
Liability. A director who votes
for or assents to an unlawful distribution made in violation of
Section 8.1 is personally liable to the corporation for the amount
of the distribution that exceeds what could have been distributed
without violating Section 8.1, if the director fails to perform the
director's duties in compliance with Section
4.3.
(b) Right to
Contribution. A director held
liable for an unlawful distribution is entitled to
contribution:
(1)
From every other director who could be held liable for the unlawful
distribution; and
(2)
From each shareholder for the amount the shareholder accepted
knowing the distribution was unlawful.
ARTICLE V
Conflicting Interest Transactions
5.1 Definitions.
For purposes of this Article:
(a) "Conflicting
interest" means the interest a
director has respecting a transaction effected or proposed to be
effected by the corporation or any other entity in which the
corporation has a controlling interest if:
(1)
The director knows at the time the corporation takes action that
the director or a related person is a party to the transaction or
has a significant beneficial financial interest in or so closely
linked to the transaction that a reasonable person would expect the
interest to influence the director's judgment, if the director were
called upon to vote on the transaction; or
(2)
The transaction is brought before the Board for action, and the
director knows at the time the Board reviews the transaction that
any of the following persons is either a party to the transaction
or has a significant beneficial financial interest in or so closely
linked to the transaction that a reasonable person would expect the
interest to influence the director's judgment if the director were
called upon to vote on the transaction:
(A)
An entity of which the director is a director, general partner,
agent, or employee;
(B)
An entity that controls, is controlled by, or is under common
control with one or more of the entities specified in (A);
or
(C)
An individual who is a general partner, principal, or employer of
the director.
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(b) "Director's conflicting
interest transaction" means a
transaction effected or proposed to be effected by the corporation
or any other entity in which the corporation has a controlling
interest respecting which a director of the corporation has a
conflicting interest.
(c) "Qualified
director" means any director
who does not have either:
(1)
A conflicting interest respecting the transaction; or
(2)
A familial, financial, professional, or employment relationship
with a second director who does have a conflicting interest
respecting the transaction, which relationship would, in the
circumstances, reasonably be expected to exert an influence on the
first director's judgment when voting on the
transaction.
(d) "Qualified
shares" means any shares
entitled to vote with respect to the director's conflicting
interest transaction except shares that, to the knowledge, before
the vote, of the Secretary, are beneficially owned, or the voting
of which is controlled, by a director who has a conflicting
interest respecting the transaction or by a related person of the
director, or both.
(e) "Related
person" of a director
means:
(1)
A child, grandchild, sibling, parent, or spouse of, or an
individual occupying the same household as, the director, or a
trust or estate of which any of the above individuals is a
substantial beneficiary; or
(2)
A trust, estate, incompetent, conservatee, or minor of which the
director is a fiduciary.
(f) "Required
disclosure" means disclosure by
the director who has a conflicting interest of:
(1)
The existence and nature of the director's conflicting interest;
and
(2)
All facts known to the director respecting the subject matter of
the transaction that an ordinarily prudent person would reasonably
believe to be material to a judgment about whether or not to
proceed with the transaction.
5.2 Directors'
Action.
(a) Majority
Vote. Director's action
respecting a director’s conflicting interest transaction is
effective, if the transaction received the affirmative vote of a
majority of (but no fewer than two) qualified directors who voted
on the transaction after either required disclosure to them or
compliance with Paragraph (b) below.
(b) Director's
Disclosure. If a director has a
conflicting interest respecting a transaction, but neither the
director nor a related person of the director is a party to the
transaction, and if the director has a duty under law or
professional canon, or a duty of confidentiality to another person,
which would prevent that director from making the disclosure
described in Paragraph 5.1(f), then disclosure is sufficient if the
director:
(1)
Discloses to the directors voting on the transaction the existence
and nature of the director's conflicting interest and informs them
of the character and limitations imposed by that duty before their
vote on the transaction; and
(2)
Plays no part, directly or indirectly in their deliberations or
vote.
(c) Quorum.
A majority (but no fewer than two) of the qualified directors
constitutes a quorum for purposes of action that comply with this
Article. Directors' action that otherwise complies with this
Article is not affected by the presence or vote of a director who
is not a qualified director.
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5.3 Shareholders'
Action.
(a) Majority
Vote. Shareholders' action
respecting a director’s conflicting interest transaction is
effective if a majority of the votes entitled to be cast by the
holders of all qualified shares were cast in favor of the
transaction after:
(1)
Notice to shareholders describing the director's conflicting
interest;
(2)
Provision of the information referred to in Paragraph (c) below;
and
(3)
Required disclosure to the shareholders who voted on the
transaction.
(b) Quorum.
A majority of the votes entitled to be cast by the holders of all
qualified shares constitutes a quorum for purposes of action that
complies with this section. Subject to the provisions of Paragraph
(c), shareholders' action that otherwise complies with this section
is not affected by the presence or voting of shares that are not
qualified shares.
(c) Director's
Disclosure. A director, who has
a conflicting interest respecting the transaction shall, before the
shareholders' vote, inform the Secretary of the number, and the
identity of persons holding or controlling the vote of all shares
that the director knows are beneficially owned or the voting of
which is controlled by the director or by a related person of the
director.
ARTICLE VI
Indemnification
6.1 Indemnification
Definitions. For purposes of
this Article:
(a) "Corporation"
includes any domestic or foreign predecessor entity of a
corporation in a merger or other transaction in which the
predecessor’s existence ceased upon consummation of the
transaction.
(b) "Director"
means an individual who is or was a director of the corporation or
an individual who, while a director of the corporation, is or was
serving at the corporation's request as a director, officer,
partner, trustee, employee, or agent of another foreign or domestic
corporation, partnership, joint venture, trust, employee benefit
plan, or other enterprise. A director is considered to be serving
an employee benefit plan at the corporation's request if the
director's duties to the corporation also impose duties on, or
otherwise involve services by, the director to the plan or to
participants in or beneficiaries of the plan. "Director" includes,
unless the context requires otherwise, the estate or personal
representative of a director.
(c) "Expenses"
include counsel fees.
(d) "Liability"
means the obligation to pay a judgment, settlement, penalty, fine
(including an excise tax assessed with respect to an employee
benefit plan), or reasonable expenses incurred with respect to a
proceeding.
(e) "Official
capacity"
means:
(1)
When used with respect to a director, the office of director in the
corporation; and
(2)
When used with respect to an individual other than a director, as
contemplated in Section 6.6, the office in the corporation held by
the officer or the employment or agency relationship undertaken by
the employee or agent on behalf of the corporation. “Official
capacity" does not include service for any other foreign or
domestic corporation or any partnership, joint venture, trust,
employee benefit plan, or other enterprise.
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(f) "Party"
includes an individual who was, is, or is threatened to be made a
named defendant or respondent in a proceeding.
(g) "Proceeding"
means any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or
investigative, and whether formal or informal.
6.2 Indemnification.
(a) Right to
Indemnity. Except as provided
in Paragraph (d), the corporation shall indemnity an individual
made a party to a proceeding because the individual is or was a
director against liability incurred in the proceeding
if:
(1)
The individual acted in good faith; and
(2)
The individual reasonably believed:
(A)
In the case of conduct in the individual's official capacity with
the corporation, that the individual's conduct was in its best
interests; and
(B)
In all other cases, that the individual's conduct was at least not
opposed to its best interests; and
(3)
In the case of any criminal proceeding, the individual had no
reasonable cause to believe the individual's conduct was
unlawful.
(b) Conduct Concerning
Employee Benefit Plans. A
director's conduct with respect to an employee benefit plan for a
purpose the director reasonably believed to be in the interests of
the participants in and beneficiaries of the plan is conduct that
satisfies the requirement of subparagraph
(a)(2)(B).
(c) Legal
Proceedings. The termination of
a proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contenders or its equivalent is not, of itself,
determinative that the director did not meet the standard of
conduct described in this section.
(d) Limits on
Indemnity. The corporation
shall not indemnity a director under this
section:
(1)
In connection with a proceeding by or in the right of the
corporation in which the director is adjudged liable to the
corporation; or
(2)
In connection with any other proceeding charging improper personal
benefit to the director, whether or not involving action in the
director's official capacity, in which the director was adjudged
liable on the basis that personal benefit was improperly received
by the director.
(e) Coverage of Reasonable
Expenses. Indemnification
provided under this section in connection with a proceeding by, or
in the right of the corporation, is limited to reasonable expenses
incurred in connection with the proceeding.
6.3 Advances for
Expenses.
(a) Advances.
The corporation shall pay for or reimburse the reasonable expenses
incurred by a director who is a party to a proceeding in advance of
final disposition of the proceeding if:
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(1)
The director furnishes the corporation a written affirmation of the
director's good faith belief that the director has met the standard
of conduct described in Section 4.3; and
(2)
The director furnishes the corporation a written undertaking,
executed personally, or on the director's behalf, to repay the
advance if it is ultimately determined that the director did not
meet the standard of conduct.
(b) Director's
Undertaking. The undertaking
required by subparagraph (a)(2) must be an unlimited general
obligation of the director, but need not be secured and may be
accepted without reference to financial ability to make repayment
if the Board determines that the risk the advance will not be
repaid is reasonable under the circumstances. The provisions of
Section 5.2 will apply in making any such
determination.
6.4 Determination and
Authorization of Indemnification.
(a) Determination of
Proper Conduct. The corporation
shall not indemnity a director under Section 6.2 unless authorized
in the specific case after a determination has been made that
indemnification of the director is permissible in the circumstances
because the director has met the standard of conduct set forth in
Section 6.2.
(b) Board
Determination. The
determination shall be made:
(1)
By the Board by majority vote of a quorum consisting of directors
not at the time parties to the proceeding;
(2)
If a quorum cannot be obtained under subparagraph (1), by majority
vote of a Committee duly designated by the Board (in which
designation directors who are parties may participate), consisting
solely of two or more directors not at the time parties to the
proceeding;
(3)
By special legal counsel:
(A)
Selected by the Board or its Committee in the manner prescribed in
subparagraph (1) or (2); or
(B)
If a quorum of the Board cannot be obtained under Subparagraph (1)
and a Committee cannot be designated under Subparagraph (2),
selected by majority vote of the full Board (in which selection
directors who are parties may participate); or
(4)
By the shareholders, but shares owned by or voted under the control
of directors who are at the time parties to the proceeding may not
be voted on the determination.
(c) Authorization of
Indemnification. Authorization
of indemnification and evaluation as to reasonableness of expenses
shall be made in the same manner as the determination that
indemnification is permissible, except that if the determination is
made by special legal counsel, authorization of indemnification and
evaluation as to reasonableness of expenses shall be made by those
entitled under subparagraph (b)(3) to select
counsel.
6.5 Shareholder Authorized
Indemnification and Advancement of Expenses. If authorized by the Articles of Incorporation,
any Bylaw adopted or ratified by the shareholders, or any
resolution adopted or ratified, before or after the event, by the
shareholders, the corporation shall have power to make or agree to
indemnity a director made a party to a proceeding, or obligate
itself to advance or reimburse expenses incurred in a proceeding,
without regard to the limitations in Sections 6.2, 6.3 and 6.4;
provided that no such indemnity shall indemnity any director from
or on account of.
19
(a)
Acts or omissions of the director finally adjudged to be
intentional misconduct or a knowing violation of law;
(b)
Conduct of the director finally adjudged to be in violation of
Section 4.17; or
(c)
Any transaction with respect to which it is finally adjudged that
such director personally received a benefit in money, property, or
services to which the director was not legally
entitled.
6.6 Indemnification of
Officers, Employees, and Agents. The corporation shall indemnity and advance
expenses under Sections 6.2 through 6.5 to an officer, employee, or
agent of the corporation who is not a director to the same extent
as to a director.
6.7 Insurance.
The corporation may purchase and maintain insurance on behalf of an
individual who is or was a director, officer, employee, or agent of
the corporation, or who, while a director, officer, employee, or
agent of the corporation, is or was serving at the request of the
corporation as a director, officer, partner, trustee, employee, or
agent of another foreign or domestic corporation, partnership,
joint venture, trust, employee benefit plan, or other enterprise,
against liability asserted against or incurred by the individual in
that capacity or arising from the individual's status as a
director, officer, employee, or agent, whether or not the
corporation would have power to indemnity the individual against
the same liability under Section 6.2.
6.8 Report to
Shareholders. If the
corporation indemnifies or advances expenses to a director under
Section 6.2, 6.3, or 6.5 in connection with a proceeding by or in
the right of the corporation, the corporation shall report the
indemnification or advance in writing to the shareholders, with or
before, the notice of the next shareholders'
meeting.
ARTICLE VII
Officers
7.1 Officers and Their
Duties. The following officers
shall be elected annually and shall have the duties enumerated
below:
(a) Chairman of the
Board. The Chairman shall be a
director and shall perform the duties assigned to the Chairman by
the Board. The Chairman shall preside at all meetings of the
shareholders and at all meetings of the Board. The Chairman may
sign deeds, mortgages, bonds, contracts, or other instruments,
unless these powers have been expressly delegated by the Board to
some other officer or agent of the corporation or are otherwise
required by law to be signed or executed by some other officer or
in some other manner. If the President dies or becomes unable to
act, the Chairman shall perform the duties of the President, except
as may be limited by resolution of the Board.
(b) President.
(1)
The President shall be the chief executive officer of the
corporation unless some other officer is so designated by the
Board. The President shall supervise and control the assets,
business, and affairs of the corporation. If no Chairman has been
elected, the President shall be a director. The President may sign
certificates for shares of the corporation, deeds, mortgages,
bonds, contracts, or other instruments, unless these powers have
been expressly delegated by the Board to some other officer or
agent of the corporation. The President shall vote shares in other
corporations which are owned by the corporation, unless the Board
prescribes otherwise. The President shall perform all duties
incident to the office of president and any other duties which the
Board may prescribe.
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(2)
The President may appoint one or more Assistant Secretaries and
Assistant Treasurers, as the President deems
necessary.
(c) Vice
Presidents. The Board may
designate one or more Vice Presidents or other officers and
assistant officers as the Board determines is necessary or
advisable, or the Board may delegate that power to the President.
The Vice Presidents shall have the powers and perform the duties
accorded to them by the Board, the Articles, the Bylaws, or
delegated to them by the Chairman or the President. If no Chairman
has been elected, in the absence or disability of the President,
the Vice President, designated by the Board, shall perform the
duties of the President. When so acting, the designated Vice
President shall have all the powers of, and be subject to the same
restrictions as is the President. However, a Vice President may not
preside as the chairman of a Board meeting unless that Vice
President is also a director.
(d) Secretary.
(1)
The Secretary shall:
(A)
Prepare the minutes of meetings of the directors and of the
shareholders, keep the minutes in one or more books provided for
that purpose, and be responsible for authenticating the records of
the corporation;
(B)
Ensure that all notices are given in accordance with the provisions
of Sections 3.6, 4.14 and Article IX of these Bylaws and as
required by law;
(C)
Serve as custodian of the corporate records and the corporate seal,
and ensure that the seal is affixed to all documents requiring the
corporation's seal, provided that the document has been duly
authorized for execution;
(D)
Keep a register of the address of each shareholder, director, and
officer;
(E)
Sign certificates representing the authorized shares of the
corporation;
(F)
Maintain the stock transfer books of the corporation pursuant to
the provisions of Section 2.7;
(G)
Appoint a registrar or transfer agent to oversee the stock transfer
books;
(H)
When required by law or resolution of the Board, sign the
corporation's deeds, mortgages, bonds, contracts, or other
instruments; and
(I)
Perform all other duties incident to the office of Secretary or
assigned by the President or the Board.
(2)
In the absence of the Secretary, an Assistant Secretary may perform
the duties of the Secretary.
(e) Treasurer.
(1)
The Treasurer shall:
(A)
Take custody of and account for all funds and securities held by
the corporation;
21
(B)
Receive and give receipts for sums due to the corporation, and
deposit those sums in the name of the corporation in banks, trust
companies, or other depositories which the Board may select in
accordance with the provisions of these Bylaws; and
(C)
Perform all other duties incident to the office of treasurer or
assigned to the Treasurer by the President or the
Board.
(2)
In the absence of the Treasurer, an Assistant Treasurer may perform
the duties of the Treasurer.
(f) Additional Duties;
Other Officers and Agents. The
Board may assign any officer any additional title that the Board
deems appropriate. The Board may delegate to any officer or agent
the power to appoint assistant officers or agents and to prescribe
the terms of office, authorities, and duties of such assistant
officers or agents.
(g) Authority to Enter
Contracts and to Issue Checks and Drafts. The Board may authorize any officer or agent of
the corporation to enter into contracts or to execute and deliver
instruments in the name of and on behalf of the corporation. The
Board may grant either general or limited authority to its officers
and agents to make contracts or execute instruments. The Board
shall authorize certain officers or agents of the corporation to
sign the corporation's checks, drafts, or other orders for the
payment of money, notes, or other evidences of indebtedness issued
in the name of the corporation.
7.2 Qualifications.
None of the officers is required to be a director, except as
specified in Section 7.1. The same person may hold two or more
corporate offices, except that one person may not hold the offices
of President and Secretary at the same time.
7.3 Standards of Conduct
for Officers.
(a) Due Care and
Loyalty. An officer with
discretionary authority shall discharge the officer's duties under
that authority:
(1)
In good faith;
(2)
With the care an ordinarily prudent person in a like position would
exercise under similar circumstances; and
(3)
In a manner the officer reasonably believes to be in the best
interests of the corporation.
(b) Right to Rely on
Experts. In performing the
officer's duties, the officer may rely on information, opinions,
reports, or statements, including financial statements and other
financial data prepared or presented by:
(1)
One or more officers or employees of the corporation whom the
officer reasonably believes to be reliable and competent in the
matters presented; or
(2)
Legal counsel, public accountants, or other persons concerning
matters the officer reasonably believes to be within their
professional or expert competence.
(c) Failure to Act in Good
Faith. An officer fails to act
in good faith if the officer relies on information provided by the
above persons, even though the officer has knowledge that makes
reliance on the information unwarranted.
22
7.4 Bonds.
The Board may require any officer to post a bond to ensure that the
officer faithfully performs the duties of the office, and that in
case of the death, resignation, retirement or removal of the
officer, the officer returns all books, papers, vouchers, money and
other property in the officer’s possession or under the
officer's control which belongs to the corporation. The bond shall
be in the amount and with any sureties required by the
Board.
7.5 Delegation.
The Board may delegate the powers and duties of an officer who is
absent or unable to act to any officer, director, or other
person.
7.6 Election and Term of
Office. The Board shall elect
the officers at the annual Board meeting. If the Board fails to
elect the officers at that meeting, it shall convene a meeting to
elect the officers as soon thereafter as possible. Each officer
shall hold office for a one-year term until the next succeeding
annual Board meeting, or until the officer's successor is elected
and qualified, unless the officer dies, resigns, or is
removed.
7.7 Vacancies.
The Board may fill a vacancy in any office created because of the
death, resignation, removal, or disqualification of an officer,
because of the creation of a new office, or for any other
cause.
7.8 Resignation.
An officer may resign at any time by delivering written notice to
the Chairman, the President, any Vice President, the Secretary, or
to each member of the Board. An officer's resignation shall take
effect at the time specified in the notice or, if the time is not
specified, when the notice is delivered. The corporation need not
accept a resignation for the resignation to be effective. A
resignation shall not affect the rights of the corporation under
any contract with the resigning officer.
7.9 Removal.
The Board may remove an officer or agent of the corporation, with
or without cause, if the Board finds that the best interests of the
corporation would be served by removing that officer or agent. The
corporation’s action to remove the officer or agent shall not
affect the officer's contract rights against the corporation. Any
officer or assistant officer, if appointed by another officer, may
be removed by any officer authorized to appoint officers or
assistant officers.
7.10 Compensation.
The Board shall set the compensation for the officers and the other
agents and employees of the corporation. The Board may delegate the
authority to set the compensation of the officers, agents, and
employees to the President. No officer may be prevented from
receiving compensation as an officer solely because the officer is
also a director of the corporation.
ARTICLE VIII
Dividends and Distributions
8.1 Distributions.
The Board may authorize and the corporation may make distributions
of cash or other property in the form of a dividend or the
purchase, redemption, or other acquisition of the corporation's
shares, unless after making the distribution:
(a)
The corporation would be unable to pay its debts as they become due
in the usual course of business; or
(b)
The corporation's total assets would be less than the sum of its
total liabilities plus the amount needed, if the corporation were
dissolved at the time of distribution, to satisfy the preferential
rights of shareholders whose preferential rights are superior to
the shareholders who receive the distribution.
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8.2 Measure of Effect of
Distribution. For purposes of
determining whether a distribution may be authorized by the Board
of Directors and paid by the corporation under Section 8.1, the
effect of distribution shall be measured as
follows:
(a)
In the case of a distribution of indebtedness which requires the
corporation to make principal and interest payments only if those
payments would qualify as an allowable distribution under Section
8.1, each payment of principal and interest must qualify as a
separate distribution, the effect of which shall be measured on the
date the payment is actually made.
(b)
In the case of a distribution made through the purchase,
redemption, or other acquisition of the corporation's shares, the
effect of the distribution shall be measured as of the earlier
of:
(1)
The date on which any money or other property is transferred to the
shareholders;
(2)
The date on which any debt is incurred by the corporation;
or
(3)
The date on which the shareholder ceases to be a shareholder with
respect to the acquired shares.
(c)
In the case of a distribution of indebtedness, other than that
described in Paragraph (a) above, the effect of the distribution
shall be measured as of the date the indebtedness is
distributed.
(d)
In any other case, the effect of the distribution shall be measured
either:
(1)
As of the date on which the distribution is authorized, if the
corporation paid the distribution within one hundred twenty (120)
days after the date of authorization; or
(2)
As of the date of payment, if such date occurs more than one
hundred twenty (120) days after the date of
authorization.
8.3 Share
Dividends.
(a) Issuance to All
Shareholders. The corporation
may issue a share dividend by issuing shares pro rata and without
consideration to all shareholders or to the shareholders of one or
more classes or series.
(b) Issuance to Class of
Shareholders. Shares of one
class or series may not be issued as a share dividend in respect of
shares of another class or series unless:
(1)
The Articles so authorize;
(2)
A majority of the votes entitled to be cast by the class or series
to be issued approve the issue; or
(3)
There are no outstanding shares of the class or series to be
issued.
8.4 Closure of the Stock
Transfer Books. The Board may
close the stock transfer books for a period of not more than
seventy (70) days for the purpose of making a
distribution.
8.5 Reserves.
The corporation may, before making any distribution, set aside
certain amounts to serve as a reserve fund to meet contingencies,
or for any other purpose. Any funds not distributed by the
corporation at the end of any fiscal year shall be deemed to have
been thus set aside as a reserve until the Board otherwise disposes
of the funds.
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ARTICLE IX
Notices
9.1 Method of
Notice.
(a) General.
In general, notices called for under these Bylaws shall be given in
writing.
(b) Methods of
Communication. Notice may be
communicated in person; by telephone, telegraph, teletype, or other
form of wire or wireless communication; or by mail or private
carrier. If these forms of personal notice are impracticable,
notice may be communicated by a newspaper of general circulation in
the area where published; or by radio, television, or other form of
public broadcast communication.
(c) Effective Date of
Notice to Shareholder. Written
notice to a shareholder, if in a comprehensible form, is effective
when mailed, if mailed with first-class postage prepaid and
correctly addressed to the shareholder’s address shown in the
corporation's current record of shareholders. The Secretary may
send notices to a shareholder by delivering or mailing the notice
to the shareholder's most recent address on file. Any notice sent
to that address shall be deemed sufficient if the shareholder fails
to furnish a current address to the Secretary.
(d) Notice to the
Corporation. Written notice to
the corporation may be addressed to its registered agent at its
registered office or to the corporation at the address of its
principal office as shown in the most recent annual
report.
(e) Effective Date of
Notice to Other Parties. Except
as provided above, written notice to other parties shall be
effective at the earliest of:
(1)
The time of receipt;
(2)
The date shown on the return receipt if sent by registered mail;
or
(3)
Five (5) days after the notice was deposited in the U. S. first
class mail, postage prepaid.
9.2 Oral
Notice. The persons convening
any meeting of the Board or a Committee may give oral notice of the
meeting, which may be communicated in person or by telephone, wire,
or wireless communication. Oral notice is effective when
communicated if the notice is communicated in a comprehensible
manner. Oral notice may be communicated either to the director or
to a person who the person giving the notice has reason to believe
will promptly communicate the notice to the
director.
9.3 Waiver of
Notice. A shareholder or
director may waive notice of any meeting by submitting a written
signed waiver of notice either before or after the time for holding
the meeting, or by attending the meeting in person or by proxy
without objecting to a lack of notice.
ARTICLE X
Corporate Records
10.1 Maintenance of
Corporate Records. The
corporation shall keep the corporation's minute books and all other
official records of all meetings at its registered office or
principal place of business. The corporation shall keep all minutes
and records in written form, or in a form which may be easily
converted to written form. The corporation shall maintain in its
records the following items:
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(a)
The Articles or restated Articles and all amendments to the
Articles;
(b)
The current Bylaws or restated Bylaws and all amendments to the
Bylaws;
(c)
The minutes of all shareholders', Board and Committee meetings and
records of all actions taken by the shareholders, the Board, or a
Committee without a meeting;
(d)
All financial statements for the past three (3) years;
(e)
All written communications made to the shareholders within the last
three (3) years;
(f)
A register of names and business addresses of each shareholder,
director and officer;
(g)
The last three (3) annual reports; and
(h)
The stock transfer books of the corporation, as described in
Section 2.7.
10.2 Shareholder's Right to
Inspect and Copy Records.
(a) Inspection of
Corporate Records. A
shareholder may inspect and copy, during regular business hours at
the corporation's principal office, any of the records of the
corporation described in Section 10.1 if the shareholder gives the
corporation written notice of the shareholder's demand at least (5)
five business days before the date on which the shareholder wishes
to inspect and copy the records.
(b) Inspection of
Accounting and Shareholders' Records. A shareholder may also inspect and copy the
accounting records of the corporation and the record of
shareholders during regular business hours at a reasonable location
specified by the corporation, if the shareholder gives the
corporation written notice of the shareholder's demand at least
five (5) business days before the date on which the shareholder
wishes to inspect and copy the records and:
(1)
The shareholder's demand is made in good faith and for a proper
purpose;
(2)
The shareholder describes with reasonable particularity the
shareholder's purpose and the records the shareholder desires to
inspect; and
(3)
The records are directly connected with the shareholder’s
purpose.
10.3 Scope of Inspection
Right.
(a) Shareholder's
Agent. A shareholder's agent or
attorney has the same inspection and copying rights as the
shareholder.
(b) Copies.
A shareholder may obtain copies of the corporation’s records
made by photographic, xerographic, or other reasonable means,
including copies in electronic or other nonwritten form if the
shareholder so requests.
(c) Charge for
Copying. The corporation may
charge the shareholder for the reasonable costs of labor and
materials used to produce copies of any records provided to the
shareholder. The charges may not exceed the estimated cost of
producing or reproducing the records.
(d) Record of
Shareholders. The corporation
may comply with a shareholder's demand to inspect the record of
shareholders by providing the shareholder with a list of
shareholders that was compiled no earlier than the date of the
shareholder's demand.
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10.4 Annual
Report. The corporation shall
prepare and file an annual report on the required form with the
Secretary of State of Washington. The corporation shall ensure that
the information in the annual report is current as of the date the
corporation executes the annual report.
ARTICLE XI
Financial Matters
11.1 Books and Records of
Account. The corporation shall
maintain correct and complete books, financial statements, and
records of account. The corporation shall keep its books and
records of account and prepare its financial statements in
accordance with generally accepted accounting principles, which
shall be applied on a consistent basis from period to period. The
books, records of account, and financial statements shall be in
written form or in any other form capable of being converted into
written form within a reasonable time.
11.2 Balance Sheet and
Income Statement.
(a) Annual Balance Sheet
and Income Statement. The
corporation shall prepare annually (1) a balance statement showing
in reasonable detail the financial condition of the corporation as
of the close of its fiscal year and (2) an income statement showing
the results of the corporation's operations during its fiscal year.
The corporation shall prepare these statements not later than four
(4) months after the close of each fiscal year, and in any case
before the annual shareholders' meeting. These statements shall be
prepared in accordance with generally accepted accounting
principles which shall be applied on a consistent basis from period
to period. The President, or the person who prepared the financial
statements, shall prepare a certificate to accompany the annual
financial reports attesting to the fact that the preparer used
generally accepted accounting principles in preparing the financial
statements, and describing any respects in which the statements
were prepared on a basis of accounting which was not consistent
with statements prepared for the preceding
year.
(b) Copies to
Shareholders. The corporation
shall mail promptly, upon written request, a copy of the most
recent balance sheet and income statement to any shareholder. The
corporation shall also furnish, upon written request, a statement
of the sources and applications of the corporation's funds and a
statement of any changes in the shareholders' equity for the most
recent fiscal year, if such statements have been prepared for other
purposes.
11.3 Deposits.
The officers shall cause all funds of the corporation not otherwise
employed to be deposited to the credit of the corporation in such
banks, trust companies, or other depositories as the Treasurer may
select.
11.4 Loans.
The corporation may not borrow money or issue evidences of
indebtedness unless the Board authorizes the action. The
corporation shall make no loans which are secured by its own
shares, except for indebtedness representing the unpaid purchase
price of the corporation's shares.
11.5 Fiscal
Year. The corporation shall use
a calendar year fiscal year unless the Board expressly determines
otherwise.
ARTICLE XII
Amendment of Articles and Bylaws
12.1 Amendment of
Articles.
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(a) By the
Board. The Board may, by
majority vote and without shareholder action, amend the
Articles:
(1)
To delete the names and addresses of the initial directors, the
initial registered agent, and the registered office of the
corporation;
(2)
To change the corporate name;
(3)
To change the number of authorized shares to effectuate a stock
split or stock dividend to be paid in the corporation's shares if,
at the time of the amendment, the corporation has only one class of
shares outstanding; or
(4)
To make any other changes expressly permitted by law to be made
without shareholder action.
(b)
By the Board and
Shareholders. The Board may submit to the shareholders for
approval one or more proposed amendments to the Articles. Following
notice to all shareholders of a shareholders' meeting in accordance
with the provisions of Paragraph 3.6(c) and Article IX, the
shareholders may adopt the proposed amendment if a majority of the
votes in each voting group entitled to vote on each amendment
approve. In the alternative, action may be taken by shareholders
without a meeting in accordance with the provisions of Paragraph
3.15.
12.2 Amendment of Bylaws by
the Shareholders. The
shareholders may amend, alter, or repeal the Bylaws at any meeting
of the shareholders, or by unanimous written consent. The
shareholders may amend the Bylaws at a special shareholders'
meeting only if a copy of the proposed amendments accompanies the
notice of the meeting.
12.3 Amendment of Bylaws by
the Board. The Board may amend,
alter, or repeal the Bylaws by vote of a majority of the Board at
any meeting of the Board, or by unanimous written consent of the
Board. The Bylaws may be amended at a special meeting of the Board
only if notice of the proposed amendment was contained in the
notice of the meeting. The shareholders may repeal, by majority
vote, any amendment to or alteration of the Bylaws adopted by the
Board.
ARTICLE XIII
Corporate Seal
The Board of Directors may adopt a corporate seal in a form and
with an inscription to be determined by the Board. The seal shall
be in the form of a circle and shall contain the name of the
corporation and the year of incorporation. The application of, or
failure to apply the seal to any document or instrument, shall not
affect the validity of the document or instrument.
ARTICLE XIV
Miscellany
14.1 Inspector of
Elections. Before any annual
meeting of shareholders, the Board may appoint an inspector of
elections. If the Board does not appoint an inspector of elections,
then the chairman of the meeting may appoint an inspector of
elections to act at the meeting. If the person appointed as
inspector of elections fails to act, the chairman of the meeting
may appoint a person to act in the place of the appointed inspector
of elections. The chairman of the meeting hall appoint an inspector
of elections if requested to do so by any shareholder or
shareholder's proxy.
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14.2 Duties of Inspector of
Elections. The inspector of
elections shall:
(a)
Determine the number of shares outstanding and the voting power of
each, the number of shares represented at the meeting, whether a
quorum is present, and, with the advice of legal counsel to the
corporation, the authenticity, validity, and effect of
proxies;
(b)
Receive votes, ballots, or consents;
(c)
Hear and determine all challenges and questions in any way arising
in connection with the right to vote;
(d)
Count and tabulate all votes or consents;
(e)
Determine the result of any vote; and
(f)
Do any other acts that may be necessary to conduct the election or
vote with fairness to all shareholders.
14.3 Rules of
Order.
(a) Robert's Rules
Govern. The rules contained in
the most recent edition of Robert's Rules of Order, Revised, shall
govern all meetings of shareholders and directors where those rules
do not conflict with the Articles or the
Bylaws.
(b) Chairman of
Meeting. The chairman of the
meeting shall have absolute authority over matters of procedure.
There shall be no appeal from a procedural ruling by the chairman
of the meeting. The chairman of the meeting may dispense with the
rules of parliamentary procedure for any meeting or any part of a
meeting. The chairman shall clearly state the rules under which any
meeting or part of a meeting will be conducted.
(c) Adjournment Due to
Disorder. If disorder should
arise which prevents continuation of the legitimate business of any
meeting, the chairman of the meeting may adjourn the meeting. Any
meeting so adjourned may be reconvened in accordance with Sections
3.3 and 4.10 of these Bylaws.
(d) Removal of Persons Not
Shareholders. The chairman may
require anyone who is not a bona fide shareholder of record or the
proxy of a shareholder of record to leave any shareholders'
meeting.
(e) Matters the Proper
Subject of Action. The
shareholders may consider and vote on a resolution or motion at a
shareholders' meeting only if:
(1)
The resolution or motion was proposed by a shareholder or the duly
authorized proxy of a shareholder; and
(2)
The resolution or motion was seconded by an individual who is a
shareholder or the duly authorized proxy of a shareholder other
than the person who proposed the resolution or motion.
14.4 Number and
Gender. When required by the
context:
(a)
The word "it" will include the plural and the word "its" will
include the singular;
(b)
The masculine will include the feminine gender and the neuter, and
vice versa; and
(c)
The word "person" will include corporation, firm, partnership or
any other form of association.
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14.5 Severability.
If any provision of these Bylaws or any application of any
provision is found to be unenforceable, the remainder of the Bylaws
shall be unaffected. If the provision is found to be unenforceable
when applied to particular persons or circumstances, the
application of the provision to other persons or circumstances
shall be unaffected.
ARTICLE XV
Authentication
The foregoing Bylaws, as amended, were approved and duly adopted by
the Board on the 5th day of September, 2017. The Secretary was
empowered to authenticate these Bylaws by his signature
below.
/s/ Brendan Simaytis
Secretary
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