Exhibit 3.3
BYLAWSOF
CABINETGROW,INC.
| TABLE OF CONTENTS |
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| ARTICLE 1 | CORPORATE OFFICES | 1 |
| Section 1.1 | PRINCIPAL OFFICE | 1 |
| Section 1.2 | OTHER OFFICES | 1 |
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| ARTICLE 2 | MEETINGS OF SHAREHOLDERS | 1 |
| Section 2.1 | PLACE OF MEETINGS | 1 |
| Section 2.2 | ANNUAL MEETINGS | 1 |
| Section 2.3 | SPECIAL MEETINGS | 1 |
| Section 2.4 | NOTICE OF SHAREHOLDERS MEETING | 2 |
| Section 2.5 | MANNER OF GIVING NOTICE; AFFIDAVIT OF NOTICE | 2 |
| Section 2.6 | QUORUM | 3 |
| Section 2.7 | ADJOURNED MEETING; NOTICE | 3 |
| Section 2.8 | VOTING | 3 |
| Section 2.9 | VALIDATION OF MEETINGS; WAIVER OF NOTICE; CONSENT | 4 |
| Section 2.10 | SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING | 5 |
| Section 2.11 | RECORD DATE FOR SHAREHOLDER NOTICE; VOTING; GIVEN CONSENTS | 5 |
| Section 2.12 | PROXIES | 6 |
| Section 2.13 | INSPECTORS OF ELECTION | 6 |
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| ARTICLE 3 | DIRECTORS | 7 |
| Section 3.1 | POWERS | 7 |
| Section 3.2 | NUMBER AND QUALIFICATION OF DIRECTORS | 7 |
| Section 3.3 | ELECTION AND TERM OF OFFICE OF DIRECTORS | 7 |
| Section 3.4 | REMOVAL | 8 |
| Section 3.5 | RESIGNATION AND VACANCIES | 8 |
| Section 3.6 | PLACE OF MEETINGS; MEETINGS BY TELEPHONE | 8 |
| Section 3.7 | REGULAR MEETINGS | 9 |
| Section 3.8 | SPECIAL MEETINGS; NOTICE | 9 |
| Section 3.9 | QUORUM | 9 |
| Section 3.10 | WAIVER OF NOTICE | 9 |
| Section 3.11 | ADJOURNMENT | 10 |
| Section 3.12 | NOTICE OF ADJOURNMENT | 10 |
| Section 3.13 | BOARD ACTION BY WRITTEN CONSENT WITHOUT A MEETING | 10 |
| Section 3.14 | FEES AND COMPENSATION OF DIRECTORS | 10 |
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| ARTICLE 4 | COMMITTEES | 10 |
| Section 4.1 | COMMITTEES OF DIRECTORS | 10 |
| Section 4.2 | MEETINGS AND ACTIONS OF COMMITTEES | 11 |
| Section 4.3 | BOARD OF ADVISORS | 11 |
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| ARTICLE 5 | OFFICERS | 11 |
| Section 5.1 | OFFICERS | 11 |
| Section 5.2 | APPOINTMENT OF OFFICERS | 12 |
| Section 5.3 | SUBORDINATE OFFICERS | 12 |
| Section 5.4 | REMOVAL OR RESIGNATION OF OFFICERS | 12 |
| Section 5.5 | VACANCY IN OFFICES | 12 |
| Section 5.6 | CHAIRMAN OF THE BOARD | 12 |
| Section 5.7 | PRESIDENT | 12 |
| Section 5.8 | VICE PRESIDENTS | 13 |
| Section 5.9 | SECRETARY | 13 |
| Section 5.10 | CHIEF FINANCIAL OFFICER | 13 |
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| ARTICLE 6 | INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES AND OTHER AGENTS | 13 |
| Section 6.1 | INDEMNIFICATION OF DIRECTORS | 13 |
| Section 6.2 | INDEMNIFICATION OF OTHERS | 14 |
| Section 6.3 | PAYMENT OF EXPENSES IN ADVANCE | 14 |
| Section 6.4 | INDEMNITY NOT EXCLUSIVE | 14 |
| Section 6.5 | INSURANCE | 14 |
| Section 6.6 | CONFLICTS | 14 |
| Section 6.7 | RIGHT TO BRING SUIT | 15 |
| Section 6.8 | INDEMNITY AGREEMENTS | 15 |
| Section 6.9 | AMENDMENT, REPEAL OR MODIFICATION | 15 |
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| ARTICLE 7 | RECORDS AND REPORTS | 15 |
| Section 7.1 | MAINTENANCE AND INSPECTION OF SHARE REGISTER | 15 |
| Section 7.2 | MAINTENANCE AND INSPECTION OF BYLAWS | 16 |
| Section 7.3 | MAINTENANCE AND INSPECTION OF OTHER CORPORATE RECORDS | 16 |
| Section 7.4 | INSPECTION BY DIRECTORS | 17 |
| Section 7.5 | ANNUAL REPORT TO SHAREHOLDERS | 17 |
| Section 7.6 | FINANCIAL STATEMENTS | 17 |
| Section 7.7 | REPRESENTATION OF SHARES OF OTHER CORPORATIONS | 17 |
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| ARTICLE 8 | GENERAL MATTERS | 18 |
| Section 8.1 | RECORD DATE FOR PURPOSE OTHER THAN NOTICE AND VOTING | 18 |
| Section 8.2 | CHECKS; DRAFTS; EVIDENCE OF INDEBTEDNESS | 18 |
| Section 8.3 | CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED | 18 |
| Section 8.4 | CERTIFICATE FOR SHARES | 18 |
| Section 8.5 | LOST CERTIFICATES | 19 |
| Section 8.6 | CONSTRUCTION; DEFINITIONS | 19 |
| Section 8.7 | VISITORS | 19 |
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| ARTICLE 9 | AMENDMENTS | 19 |
| Section 9.1 | AMENDMENT BY SHAREHOLDERS | 19 |
| Section 9.2 | AMENDMENT BY DIRECTORS | 19 |
| Section 9.3 | RECORD OF AMENDMENTS | 19 |
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| ARTICLE 10 | INTERPRETATION | 20 |
BYLAWS OF
CABINETGROW,INC.
ARTICLE 1
CORPORATEOFFICES
Section 1.1PRINCIPAL OFFICE. TheBoard ofDirectorsofCABINETGROW, INC.,aCalifornia corporation(the“Corporation”)shall fixthelocationoftheprincipalexecutiveofficeoftheCorporationatanyplace withinoroutside theStateofCalifornia.Iftheprincipal executiveofficeislocatedoutsideCalifornia, andtheCorporationhas oneormorebusiness offices in California, then the Board ofDirectorsshallfix anddesignate aprincipalbusinessoffice inCalifornia.
Section 1.2OTHER OFFICES.TheBoardof DirectorsmayatanytimeestablishbranchorsubordinateofficesatanyplaceorplaceswheretheCorporationisqualifiedtodo business.
ARTICLE 2
MEETINGS OFSHAREHOLDERS
Section 2.1PLACEOFMEETINGS.Meetingsofshareholdersshallbeheldatany placewithinoroutsidetheStateofCaliforniadesignatedbytheBoardofDirectors.Intheabsenceofanysuchdesignation,meetingsofshareholdersshallbeheldattheprincipalexecutiveofficeoftheCorporationoranyplaceconsentedtoinwritingbyallpersonsentitledtovoteatsuchmeeting,givenbeforeorafterthemeetingandfiledwiththeSecretaryoftheCorporation.
Section 2.2ANNUAL MEETING.An annualmeeting ofshareholders shallbe heldeach year ona date and at atime designated bytheBoard ofDirectors. At thatmeetingDirectorsshallbeelected. Anyotherproperbusiness maybetransactedattheannualmeetingofshareholders.
Section 2.3SPECIAL MEETINGS.Aspecialmeetingoftheshareholdersmaybecalledatanytime,subjecttotheprovisionsofSections2.4and2.5oftheseBylawsbytheBoardofDirectors,orbytheChairmanoftheBoard,orbythePresident,orbyoneormore shareholdersholdingsharesintheaggregateentitledtocastnotlessthantenpercent(10%)ofthevotesatthat meeting.
IfaspecialmeetingiscalledbyanypersonorpersonsotherthantheBoardofDirectors,therequestshallbeinwriting,specifyingthetimeofsuchmeetingandthegeneralnatureofthebusiness proposed to be transacted, and shall be delivered personally or sent by registeredmail orbytelegraphicorotherwrittencommunicationtotheChairmanoftheBoard,thePresident,anyVicePresident, ortheSecretaryof theCorporation.Theofficer receivingtherequest shallcausenoticetobegiventotheshareholdersentitledtovote,inaccordancewiththeprovisionsofSections 2.4 and 2.5 of theseBylaws, that ameetingwill be held at thetime requested by the personorpersonscallingthemeeting,solongasthattimeisnotlessthanthirty-five(35)nor morethansixty(60)daysafterthereceiptoftherequest. Ifthenoticeisnotgivenwithintwenty(20) daysafterreceiptoftherequest, thentheperson or personsrequestingthemeetingmaygive thenotice. NothingcontainedinthisparagraphofthisSection 2.3shallbeconstrued aslimiting, fixingoraffectingthetime whenameetingofshareholders called by action of the Board ofDirectors may be held.
Section 2.4NOTICEOF SHAREHOLDERS MEETINGS.AllnoticesofmeetingsofshareholdersshallbesentorotherwisegiveninaccordancewithSection 2.5of theseBylawsnotlessthanten(10)days(orifsentbythird-classmailpursuanttoSection2.5of theseBylaws,notless thanthirty(30)days)normorethansixty(60)daysbeforethedateofthemeeting.Thenoticeshallspecifytheplace,dateandhourofthemeetingand(i)inthecaseofaspecialmeeting,thegeneralnatureofthebusinesstobetransacted,or(ii)inthecaseoftheannualmeeting,thosematterswhichtheBoardofDirectors,atthetimeofthemailing ofnotice,intendstopresentfor actionbytheshareholders, but,subjecttotheprovisionsof applicablelaw,anypropermattermaybepresentedatthemeetingforsuch action.Thenotice ofanymeetingatwhichDirectorsare tobe electedshallincludethe names ofnomineesintended, at thetime of the notice,tobepresentedbythe BoardofDirectorsforelection.
Ifactionisproposedtobetakenatanymeetingforapprovalof(i)acontractortransactioninwhichaDirectorhasadirectorindirectfinancialinterest,pursuanttoSection310oftheCaliforniaCorporationsCode(the“Code”),(ii)anamendmentoftheArticlesofIncorporation,pursuanttoSection902oftheCode,(iii)areorganizationoftheCorporation,pursuanttoSection1201oftheCode,(iv)avoluntarydissolutionofthe Corporation,pursuantto Section1900oftheCode,or(v)adistributionindissolutionotherthaninaccordancewiththe rights of any outstanding preferredshares,pursuanttoSection2007oftheCode,thenthenotice shallalsostatethe general nature of that proposal.
Section 2.5MANNER OF GIVING NOTICE; AFFIDAVITOF NOTICE. Notice ofany meeting ofshareholders shallbegiveneither personallyor byfirst classmail, or,ifthe Corporationhas outstandingsharesheldof recordby500or morepersons(determinedas providedinSection605 oftheCode)on therecorddatefor themeeting ofshareholders,notice may besentbythird-class mail, orothermeans ofwritten communication,charges prepaid,addressedto theshareholderatthe addressof that shareholderappearingon the booksoftheCorporation orgivenbythe shareholdertothe Corporationfor thepurposeofnotice; orifnosuch address appears on the Corporation’s books or is given, at a place where the Corporation’s principal executive office is located or by publication at least once ina newspaper of general circulationin the county inwhich theprincipal executiveoffice islocated. Noticeshall bedeemed to have been given at the time when delivered personally or deposited in the mail or sent by other means of written communication.
If anynotice(orany reportreferencedinArticle7oftheseBylaws) addressedtoashareholderattheaddressofthatshareholderappearingonthebooksoftheCorporationisreturnedtotheCorporationbytheUnitedStatesPostalService markedtoindicatethatthe UnitedStatesPostal Serviceisunableto deliverthenoticeto theshareholderatthat address,allfuturenotices orreportsshallbe deemedtohavebeen dulygivenwithoutfurther mailingifthesame shallbeavailableto theshareholderuponwritten demandoftheshareholder atthe principal executive office of the Corporation for a period of one (1) year from the date of the giving of the notice.
AnaffidavitofmailingofanynoticeorreportinaccordancewiththeprovisionsofthisSection2.5,executedbytheSecretary,AssistantSecretaryoranytransferagentoftheCorporation,shallbeprimafacieevidenceofthegivingofthenoticeorreport,andshallbefiledandmaintained in theminute book of the Corporation.
Section 2.6QUORUM.UnlessotherwiseprovidedintheArticlesofIncorporationof theCorporation,sharesentitledtovoteandholdingamajorityofthevotingpower,representedinpersonorbyproxy,shallconstituteaquorumatameetingofshareholders,butinnoeventshallaquorumconsistoflessthanone-third(1/3)ofthesharesentitledtovoteatthemeeting.Theshareholderspresentatadulycalledorheldmeetingatwhich aquorum ispresentmaycontinue to transact business untiladjournment,notwithstandingthewithdrawalofenough shareholders to leave less than aquorum, if any action taken(other thanadjournment) is approved by shares holding at least amajority of the voting power required to constitute aquorum.
Intheabsenceofaquorum,anymeetingofshareholdersmaybeadjournedfromtimetotimebythevoteofthemajorityofthesharesrepresentedeitherinpersonorbyproxy,butnootherbusinessmaybetransacted,exceptasprovidedinthelastsentenceoftheprecedingparagraph.
Section 2.7ADJOURNED MEETING; NOTICE. Any shareholders’meeting,annualorspecial,whetherornotaquorumispresent,maybeadjournedfromtimetotimebythesharesentitledtovoteandholdingamajorityofthevotingpowerrepresentedinpersonorbyproxy,atthatmeeting.
Whenanymeetingofshareholders,eitherannualorspecial,isadjournedtoanothertimeorplace,noticeneednotbegivenoftheadjournedmeetingifthetimeandplaceareannouncedatameetingatwhichtheadjournmentistaken.However,iftheadjournmentisformorethanforty-five(45)daysfromthedatesetfortheoriginalmeetingorifanewrecorddatefortheadjournedmeetingisfixed,anoticeoftheadjournedmeetingshallbegiventoeachshareholderofrecordentitledtovoteattheadjournedmeetinginaccordancewiththeprovisionsofSections 2.4and2.5oftheseBylaws. At any adjournedmeetingtheCorporationmaytransact anybusinesswhich mighthavebeentransactedattheoriginal meeting.
Section 2.8VOTING. TheshareholdersentitledtovoteatanymeetingofshareholdersshallbedeterminedinaccordancewiththeprovisionsofSection2.11oftheseBylaws,subjecttotheprovisionsofSections702through704oftheCode(relatingtovotingsharesheldbyafiduciary,inthe name ofa corporation, or in joint ownership).
ElectionsforDirectorsandvotingonanyothermatteratashareholdersmeetingneednot bebyballotunlessashareholderdemandselectionbyballotatthemeetingandbeforethevotingbegins.
ExceptasprovidedinthelastparagraphofthisSection2.8,orasmaybeotherwiseprovidedintheArticlesofIncorporation,eachoutstandingshare,regardlessofclass,shallbeentitledtoonevoteoneachmattersubmittedtoavoteoftheshareholders.Anyholderofsharesentitledtovoteonanymattermayvotepartofthesharesinfavoroftheproposalandrefrainfrom voting theremaining shares ormay vote themagainsttheproposal other than elections tooffice, but, if the shareholder failstospecifythenumberofsharessuchshareholderisvotingaffirmatively, it will be conclusivelypresumedthat theshareholder’sapprovingvoteiswith respecttoallshareswhichthe shareholderisentitledto vote.
Theaffirmativevoteofsharesholdingamajorityofthevotingpower,representedandvotingatadulyheldmeetingatwhichaquorumispresent(whichsharesvotingaffirmativelyalsoconstituteatleastamajorityofthevotingpowerrequiredtoconstituteaquorum),shallbethe act of the shareholders, unless the vote of a greaternumber of voting by classes is required bytheCodeorbythe Articles of Incorporation.
AtashareholdersmeetingatwhichDirectorsaretobeelected,ashareholdershallbeentitledtocumulatevoteseither(i)bygivingonecandidateanumberofvotesequaltothenumberofDirectorstobeelectedmultipliedbythenumberofvotestowhichthatshareholder’ssharesarenormallyentitledor(ii)bydistributingtheshareholder’svotesonthesameprincipleamongasmanycandidatesastheshareholderthinksfit,ifthecandidateorcandidates’names havebeenplacedinnominationpriortothevotingandtheshareholderhasgivennoticepriorto the voting of the shareholder’sintention tocumulate theshareholder’s votes. If any oneshareholder has givensuch a notice, then everyshareholderentitled tovotemay cumulatevotesfor candidates innomination.The candidatesreceiving the highest number ofaffirmative votes, up to thenumber of Directors tobe elected,shallbe elected;votesagainstanycandidateand voteswithheldshallhavenolegaleffect.Notwithstandingtheforegoing,atsuchtimeastheCorporationbecomes a listedcorporation (as that termis defined in Section 301.5(d) of the Code), shareholders shall nolonger be entitled tocumulate theirvotesforcandidates inan election ofDirectors.
Section 2.9VALIDATION OF MEETINGS; WAIVER OF NOTICE; CONSENT. Thetransactions ofanymeetingofshareholders,eitherannualorspecial,howevercalledandnoticed,andwhereverheld,areasvalidasthoughtheyhadbeentakenatameetingdulyheldafterregularcallandnotice,ifaquorumbepresenteitherinpersonorbyproxy,andif,eitherbeforeorafterthemeeting,eachofthepersonsentitledtovote,notpresentinpersonorbyproxy, signs a writtenwaiverof notice or aconsentto theholdingof themeetingor an approval of theminutes thereof. Neither the business to be transacted at northe purposeof anyannual orspecialmeetingof shareholders need be specifiedin any writtenwaiverof noticeor consent tothe holding of themeeting or approval of theminutes thereof,except that ifaction is taken orproposed tobetakenfor approvalofany ofthosemattersspecifiedinthesecondparagraphofSection 2.4 of these Bylaws, the waiver of noticeorconsent orapprovalshall statethe generalnature of the proposal. All such waivers,consents,and approvals shall be filed with the corporate records ormade a part of theminutes of themeeting.
Attendanceofapersonatameetingshallconstituteawaiverofnoticeofandpresenceatthatmeeting,exceptwhenthepersonobjects,atthebeginningofthemeeting,tothetransactionofanybusinessbecausethemeetingisnotlawfullycalledorconvenedandexceptthatattendanceatameetingisnotawaiverofanyrighttoobjecttotheconsiderationofmattersrequiredbytheCodetobeincludedinthenoticeofsuchmeetingbutnotsoincluded,ifsuchobjectionisexpresslymadeatthemeeting.
Section 2.10SHAREHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING.Any actionwhich maybe takenat any annualor specialmeeting ofshareholders may betaken withouta meeting andwithout prior notice,if aconsent inwriting, settingforth theaction sotaken, shallbe signedby theholders ofoutstanding shareshaving notless thanthe minimumnumber ofvotes thatwould benecessary toauthorize ortake suchaction ata meetingat which all shares entitled to vote thereon were present and voted.
DirectorsmaynotbeelectedbywrittenconsentexceptbyunanimouswrittenconsentofallsharesentitledtovotefortheelectionofDirectors.However,aDirectormaybeelectedatanytimetofillanyvacancyontheBoardofDirectors,providedthatthevacancywasnotcreatedbyremovalof aDirectorandthatithasnotbeenfilledbytheDirectors,bythewritten consentofsharesholdingamajorityofthevotingpowerthatareentitledtovotefortheelectionofDirectors.
Allsuchconsentsshallbemaintainedinthecorporaterecords.Anyshareholdergivingawrittenconsent,ortheshareholder’sproxyholders,oratransfereeoftheshares,orapersonalrepresentativeoftheshareholder,ortheirrespectiveproxyholders,mayrevoketheconsentbyawritingreceivedbytheSecretaryoftheCorporationbeforewrittenconsentsofthenumberofsharesrequiredtoauthorize theproposedactionhavebeenfiledwiththeSecretary.
Iftheconsentsofallshareholdersentitledtovotehavenotbeensolicitedinwriting,theSecretaryshallgivepromptnoticeofanycorporateactionapprovedbytheshareholderswithoutameeting by less thanunanimous written consent tothoseshareholdersentitledtovotewhohavenotconsentedinwriting.SuchnoticeshallbegiveninthemannerspecifiedinSection2.5oftheseBylaws.Inthecaseofapprovalof(i)acontractortransactioninwhichaDirectorhasadirect or indirect financialinterest,pursuanttoSection310oftheCode,(ii)indemnificationof acorporate “agent,” pursuant toSection317oftheCode, (iii) a reorganization of the Corporation,pursuanttoSection1201ofthe Code, and (iv) a distribution indissolutionother than inaccordance withtherights ofoutstanding preferredshares,pursuant to Section 2007 of the Code, the noticeshall begiven atleast ten (10) days before theconsummation of any action authorizedby that approval, unless the consents of allshareholders entitled to vote have beensolicited in writing.
Section 2.11RECORD DATE FOR SHAREHOLDER NOTICE; VOTING; GIVEN CONSENTS. Inorder thatthe Corporationmay determinetheshareholders entitledtonoticeofanymeetingortovoteorentitledtogiveconsenttocorporateactionwithoutameeting,theBoardofDirectors mayfix,inadvance,arecorddate, which shallnot bemorethansixty(60)daysnorlessthanten(10)dayspriortothedateofsuchmeetingnormorethansixty(60)daysbeforeanyotheraction.Shareholdersatthecloseofbusinessontherecorddateareentitledto notice and to vote or to give consents, as thecasemaybe,notwithstanding any transfer of any shareson thebooks oftheCorporationaftertherecorddate,exceptasotherwiseprovidedintheArticles of Incorporation or the Code.
AdeterminationofshareholdersofrecordentitledtonoticeofortovoteatameetingofshareholdersshallapplytoanyadjournmentofthemeetingunlesstheBoardofDirectorsfixesanewrecorddatefortheadjournedmeeting,buttheBoardofDirectorsshallfixanew recorddateifthemeetingisadjournedformorethanforty-five(45)days fromthedatesetfortheoriginalmeeting.
IftheBoardofDirectorsdoesnotsofixarecorddate:
(a) Therecorddatefordeterminingshareholdersentitledtonoticeofortovoteatameetingofshareholdersshallbeatthecloseofbusinessonthebusinessdaynextprecedingthedayonwhichnoticeisgivenor,ifnoticeiswaived,atthecloseofbusinessonthebusinessday next preceding the day on which themeeting is held.
(b) Therecorddatefordeterminingshareholdersentitledtogiveconsenttocorporateactioninwritingwithoutameeting,(i)whennoprioractionbytheBoardofDirectorshasbeentaken,shallbethedayonwhichthefirstwrittenconsentisgiven,or
(ii)whenprioractionbytheBoardofDirectorshasbeentaken,shallbeatthecloseofbusinessonthedayonwhichtheBoardofDirectorsadoptstheresolutionrelating thereto,orthesixtieth(60th)daypriortothedateofsuchotheraction, whicheverislater.
The record date for any other purpose shall beasprovidedinSection 8.1 of these Bylaws.
Section 2.12PROXIES.EverypersonentitledtovoteforDirectors,oronanyothermatter,shallhavetherighttodosoeitherinpersonorbyoneormoreagentsauthorizedbyawrittenproxysignedbythepersonandfiledwiththeSecretaryoftheCorporation.Aproxyshallbedeemedsignediftheshareholder’snameorotherauthorization isplacedontheproxy(whetherbymanualsignature,typewriting,telegraphicorelectronictransmissionorotherwise)bytheshareholderortheshareholder’sattorney-in-fact.Avalidlyexecutedproxywhichdoesnotstatethatitisirrevocableshallcontinueinfullforceandeffectunless(i)thepersonwho executed the proxy revokes itprior to thetime of voting by delivering a writing to theCorporation stating that the proxy is revoked or by executing a subsequent proxy and presenting it to themeetingor byattendanceat suchmeeting and voting in person, or (ii)written notice ofthe death or incapacity of themaker of thatproxy is received by the Corporation before the votepursuant to that proxy is counted; provided,however, that no proxy shall be valid after the expiration of eleven (11)months from the date thereof, unlessotherwiseprovidedintheproxy.Thedatescontainedontheformsofproxypresumptivelydetermine the order of execution, regardless of the postmark dates on the envelopes in which they aremailed. The revocability ofa proxy that states on its face that it isirrevocableshall be governedby theprovisionsof Sections 705(e) and 705(f) of the Code.
Section 2.13INSPECTORS OF ELECTION. In advanceof anymeeting ofshareholders, theBoardofDirectorsmayappointinspectorsofelectiontoactatthemeetingandanyadjournmentthereof.Ifinspectorsofelectionarenotsoappointedordesignatedorifanypersonssoappointedfailtoappearorrefusetoact,thentheChairmanofthemeeting may,and ontherequestofanyshareholderorashareholder’sproxyshall,appointinspectorsofelection(orpersonstoreplacethosewhosofailtoappear)atthemeeting.Thenumberofinspectors shallbeeitherone(1)orthree (3). Ifinspectorsareappointedatameeting ontherequestof one(1) ormoreshareholdersorproxies,sharesholdingamajorityofthevotingpower,represented in person or by proxy, shalldeterminewhether one (1)orthree(3)inspectorsaretobeappointed.
Theinspectorsofelectionshalldeterminethenumberofsharesoutstandingandthevotingpowerofeach,thesharesrepresentedatthemeeting,theexistenceofaquorum,andtheauthenticity,validity,andeffectofproxies,receivevotes,ballotsorconsents,hearanddetermineallchallengesandquestionsinanywayarisinginconnectionwiththerightto vote,countandtabulateallvotesorconsents,determinewhenthepollsshallclose,determinetheresultanddoany other acts thatmay be propertoconducttheelectionorvote with fairness to all shareholders.
ARTICLE 3DIRECTORS
Section 3.1POWERS.SubjecttotheprovisionsoftheCode,anylimitationsintheArticlesofIncorporation,andtheseBylaws,relatingtoactionrequiredtobeapprovedbytheshareholdersorbytheoutstandingshares,thebusinessandaffairsoftheCorporationshallbemanagedandallcorporatepowersshallbeexercisedbyorunderthedirectionoftheBoardofDirectors.TheBoardofDirectorsmaydelegatethemanagementoftheday-to-dayoperationofthebusinessoftheCorporationtoamanagementcompanyorotherpersonprovidedthatthebusiness and affairs of the Corporation shallbemanaged and allcorporatepowersshallbeexercised under the ultimatedirection of the Board of Directors.
Section 3.2NUMBERANDQUALIFICATIONOFDIRECTORS.
(a) TheexactnumberofauthorizedDirectorsistwo(2);provided,however,thatifandwhentheCorporationhasthree(3)ormoreshareholders,theexactnumberofauthorized Directors shallbethree(3).
(b) TheauthorizednumberofDirectorsmayonlybechangedbyadulyadoptedamendmenttothisBylawadoptedbythevoteorwrittenconsentofholdersofamajority oftheoutstanding sharesentitled tovote; provided, however, that anamendmentreducingthenumberofDirectorstoanumberlessthanfive(5)cannotbeadoptedifthevotescastagainstitsadoptionatameeting,orthesharesnotconsentingin thecaseofanactionbywrittenconsent,areequaltomorethansixteenandtwo-thirdspercent(16- 2/3%) of the outstanding shares entitledtovote.
Section 3.3ELECTION ANDTERM OFOFFICE OF DIRECTORS.At eachannualmeetingof shareholders, Directorsshall beelected tohold officeuntilthenextannualmeeting.EachDirector,includingaDirectorelectedtofillavacancy,shallholdofficeuntil theexpirationofthetermforwhichelectedanduntilasuccessorhasbeenelectedandqualified,exceptinthecaseofthedeath,resignation,or removalofsuchaDirector.
Section 3.4REMOVAL. TheentireBoardofDirectorsoranyindividualDirectormayberemovedfromofficewithoutcausebytheaffirmativevoteofsharesholdingamajorityofthevotingpowerthatareentitledtovoteonsuchremoval;provided,however,thatunlesstheentireBoardisremoved,noindividualDirectormayberemovedwhenthevotescastagainstsuchDirector’sremoval,ornotconsentinginwritingtosuchremoval,wouldbesufficientto elect thatDirector if votedcumulatively at an election at whichthesame totalnumber of votes cast were cast (or, if such action is taken by writtenconsent, all sharesentitled to vote were voted) and the entirenumber of Directorsauthorized at thesametime of such Director’smostrecent election were then being elected.
Section 3.5RESIGNATION AND VACANCIES. AnyDirectormayresigneffectiveupongivingoralorwrittennoticetotheChairmanoftheBoard,thePresident,theSecretary,ortheBoardofDirectors,unlessthenoticespecifiesalatertime fortheeffectivenessofsuchresignation.IftheresignationofaDirectoriseffectiveatafuturetime,theBoardofDirectorsmayelecta successortotakeoffice when the resignationbecomes effective.
VacanciesontheBoardofDirectorsmaybefilledbyamajorityoftheremainingDirectors,orifthenumberofDirectorstheninofficeislessthanaquorumby(i)unanimouswrittenconsentoftheDirectorstheninoffice,(ii)theaffirmativevoteofamajorityofDirectorstheninofficeatameetingheldpursuanttonoticeorwaiverofnotice,or(iii)asoleremainingDirector;however, avacancycreatedbytheremovalofaDirectorbythevoteorwrittenconsentoftheshareholdersorbycourtordermaybefilledonlybytheaffirmativevoteofsharesholdingamajority of the voting power represented and voting at a duly heldmeeting at which a quorum ispresent(whichshares votingaffirmativelyalsoconstitute atleast amajority of the voting powerrequired toconstitute aquorum), or by theunanimouswritten consentof allshares entitled to vote thereon.EachDirectorsoelectedshallholdoffice until the next annualmeetingoftheshareholdersanduntilasuccessorhasbeenelectedandqualified,oruntilhisorherdeath, resignationor removal.
AvacancyorvacanciesintheBoardofDirectorsshallbedeemedtoexist(i)intheeventofthedeath,resignationorremovalofanyDirector,(ii)iftheBoardofDirectorsresolutiondeclaresvacanttheofficeofaDirectorwhohasbeendeclaredofunsoundmindbyanorderofcourtorconvictedofafelony,(iii)iftheauthorizednumberofDirectorsisincreased,or(iv)iftheshareholdersfail,atanymeetingofshareholdersatwhichanyDirectororDirectorsare elected, to elect the fullnumber of Directorstobeelectedatthat meeting.
TheshareholdersmayelectaDirectororDirectorsatanytimetofillanyvacancyorvacanciesnotfilledbytheDirectors,butanysuchelectionbywrittenconsent,otherthantofillavacancycreatedbyremoval,shallrequiretheconsentofsharesholdingamajorityofthevotingpowerthatareentitledtovotethereon.ADirectormaynotbeelectedbywrittenconsent tofillavacancycreatedbyremoval exceptbyunanimous consentofallsharesentitledtovoteforthe election ofDirectors.
Section 3.6PLACE OF MEETINGS; MEETINGS BY TELEPHONE. Regularmeetings oftheBoardofDirectorsmaybeheld atanyplacewithinoroutsidetheStateof Californiathathasbeendesignatedfrom timetotimebyresolutionoftheBoardofDirectors. In theabsenceofsuchadesignation,regularmeetingsshallbeheldattheprincipalexecutiveoffice oftheCorporation.SpecialmeetingsoftheBoardofDirectorsmaybeheldatanyplacewithinor outside the State of California that has been designated in the notice of themeetinggiven pursuant to Section 3.8 of these Bylaws or, if not stated in the noticeorifthereis nonotice,at the principal executive office of the Corporation.
MembersoftheBoardofDirectorsmayparticipateinameetingthroughtheuseofaconferencetelephoneorsimilarcommunicationsequipmentpursuanttotherequirementsofCodeSection307(a)(6).Participationinameetingpursuanttothisparagraphconstitutespresenceinpersonatsuch meeting.
Section 3.7REGULAR MEETINGS. RegularmeetingsoftheBoardofDirectorsmaybeheldwithoutnoticeifthetimeandplaceofsuchmeetingsarefixedbytheBoardofDirectors.
Section 3.8SPECIAL MEETINGS; NOTICE. Subject tothe provisionsof thefollowing paragraph,specialmeetingsoftheBoard ofDirectorsforany purposeorpurposesmaybecalledatanytimebytheChairmanoftheBoard,thePresident,anyVicePresident,theSecretaryoranytwo(2) Directors.
NoticeofthetimeandplaceofspecialmeetingsshallbedeliveredpersonallyorbytelephonetoeachDirectororsentbyfirstclassmail,telegram,chargesprepaid,orbytelecopier,electronicmailorbyotherelectronicmeans,addressedtoeachDirectorattheDirector’saddressasitisshownontherecordsoftheCorporation.Ifthenoticeismailed,itshallbedepositedintheUnitedStatesmailatleastfour(4)daysbeforethetimeoftheholdingofthemeeting.Ifthenoticeisdeliveredpersonallyorbytelephone,including avoicemessaging system or other systemortechnologydesignedtorecordandcommunicatemessages,orbytelegram,facsimile, electronicmailorotherelectronicmeans,itshallbedeliveredatleastforty-eight(48)hours before thetime of the holding of themeeting.AnoralnoticegivenpersonallyorbytelephonemaybecommunicatedeithertotheDirectorortotheperson attheofficeoftheDirectorwhothe persongivingthenoticehasreason tobelievewillpromptlycommunicateittotheDirector.Thenoticeneednotspecify the purpose of themeeting.
Section 3.9QUORUM. AmajorityoftheauthorizednumberofDirectorsshallconstituteaquorumforthetransactionofbusiness,excepttoadjournasprovidedinSection3.11oftheseBylaws.EveryactordecisiondoneormadebyamajorityoftheDirectorspresentatameetingdulyheldatwhichaquorumispresentistheactoftheBoardofDirectors, subject to theprovisionsofSection310oftheCode(astotheapprovalofcontractsortransactionsinwhichaDirectorhasadirectorindirectmaterialfinancialinterest),Section311oftheCode(astotheappointment ofcommittees),Section 317(e) of the Code (as to theindemnification ofDirectors), theArticlesofIncorporation,and other applicable law.
AmeetingatwhichaquorumisinitiallypresentmaycontinuetotransactbusinessnotwithstandingthewithdrawalofDirectors,ifanyactiontakenisapprovedbyatleastamajority of the required quorumfor suchmeeting.
Section 3.10WAIVER OF NOTICE.NoticeofameetingneednotbegiventoanyDirectorwhosignsawaiverofnoticeoraconsenttoholdingthemeetingoranapprovaloftheminutesthereof,whetherbeforeorafterthemeeting,orwhoattendsthemeetingwithoutprotesting,prior theretooratitscommencement,thelackofnoticetosuchDirector.Allsuchwaivers,consents,andapprovalshallbefiledwiththecorporaterecordsorbemadeapartoftheminutesofthemeeting. Awaiverofnoticeneednotspecify thepurposeofany regularor specialmeeting of the Board of Directors.
Section 3.11ADJOURNMENT.AmajorityoftheDirectorspresent,whetherornotaquorumispresent, mayadjournany meetingtoanother timeandplace.
Section 3.12NOTICE OF ADJOURNMENT. If themeetingisadjournedforovertwenty-four(24)hours,noticeofanyadjournmenttoanothertimeandplaceshallbegivenpriortothetimeoftheadjournedmeetingtotheDirectorswhowere notpresentatthetimeoftheadjournment.
Section 3.13BOARD ACTION BY WRITTEN CONSENT WITHOUT A MEETING. Any actionrequired orpermitted tobe taken bytheBoard of Directorsmay betaken without ameeting, if all members ofthe Boardof Directorsindividually or collectively consentinwritingto suchaction.Suchwritten consentorconsentsshall befiledwiththe minutesoftheproceedings oftheBoardof Directors.Suchactionby writtenconsentshallhave thesame forceand effect as a unanimous vote of the Board of Directors.
Section 3.14FEES AND COMPENSATION OF DIRECTORS. Directorsandmembersofcommittees mayreceivesuchcompensation,if any, fortheir servicesand suchreimbursementofexpensesasmaybefixedordeterminedbyresolutionoftheBoardofDirectors.ThisSection3.14shallnotbeconstruedtoprecludeanyDirector fromserving theCorporationinanyother capacityasanofficer,agent, employee, or otherwise,andreceivingcompensation for thoseservices.
ARTICLE 4
COMMITTEES
Section 4.1COMMITTEESOF DIRECTORS. TheBoardofDirectorsmay,byresolutionadoptedbyamajorityoftheauthorizednumberofDirectors,designateoneormorecommittees,eachconsistingoftwo(2)ormoreDirectors,to serveatthepleasureof theBoardofDirectors.TheBoardofDirectorsmaydesignateoneormoreDirectorsasalternatemembersofanycommittee,whomayreplace anyabsentmemberatanymeetingof thecommittee. Theappointmentofmembersoralternatemembersofacommitteerequiresthevoteofamajorityof theauthorizednumberoftheDirectors. Anysuchcommitteeshallhaveauthoritytoactinthemannerand to the extent provided in theresolution of the Board of Directors andmay have all theauthority of the Board ofDirectors,except withrespect to:
(a) Theapprovalofanyactionwhich,undertheCode,alsorequiresshareholders’ approval orapproval of the outstanding shares.
(b) Thefilling ofvacanciesontheBoardof Directorsoronany committee.
(c) ThefixingofcompensationoftheDirectorsforservingontheBoardofDirectorsoronany committee.
(d) The amendment or repeal of these Bylaws or the adoption of new Bylaws.
(e) TheamendmentorrepealofanyresolutionoftheBoardofDirectorswhichbyitsexpress termsisnotsoamendableor repealable.
(f) AdistributiontotheshareholdersoftheCorporation,exceptatarate,inaperiodicamountorwithinapricerangesetforthintheArticlesofIncorporationor determined by the Board of Directors.
(g) TheappointmentofanyothercommitteeoftheBoardofDirectorsorthemembers thereof.
Section 4.2MEETINGS AND ACTIONOFCOMMITTEES.Meetings andactionsofcommitteesshallbegovernedby,andheldandtakeninaccordancewith,theprovisionsofSections3.6(placeofmeetings),3.7(regularmeetings),3.8(special meetingsand notice),3.9(quorum),3.10(waiverofnotice),3.11(adjournment), 3.12(notice ofadjournment),and3.13(actionwithout meeting)oftheseBylaws,withsuchchangesinthecontext ofthoseBylawsasarenecessarytosubstitutethecommitteeanditsmembersfortheBoardofDirectorsanditsmembers; provided, however, that thetimeof regularmeetings ofcommitteesmay bedeterminedeitherbyresolution ofthe Board ofDirectorsor byresolutionof thecommittee,that specialmeetingsofthecommitteesmayalsobecalledbyresolutionoftheBoardofDirectors, and that notice of specialmeetings ofcommittees shall also begiven to all alternatemembers, who shallhave theright to attendall meetingsofthe committee.TheBoardof Directors may adopt rules for thegovernment of anycommitteenotinconsistent with theprovisionsof these Bylaws.
Section 4.3BOARD OF ADVISORS. The Board of Directorsmay, byresolutionadoptedbyamajorityoftheauthorizednumberofDirectors,designateoneormoreboardofadvisors,eachconsistingofone(1)ormorepersons, tobeelectedby andtoserveat thepleasureoftheBoardofDirectors.Anyboardofadvisorsandanymember thereto,shallactonlytoadvise andconsultwiththe DirectorsandofficersoftheCorporation onmattersasmay be requested by the Board of Directors. Any board of advisors established by the Board ofDirectors shallmeet only at the times andplacesdesignated, or otherwise authorized, by the BoardofDirectors. Noboardofadvisorsnorany memberthereto shallhaveanyauthority toacton behalf of or bind the Corporationinanyway.
ARTICLE 5OFFICERS
Section 5.1OFFICERS. Theofficers oftheCorporationshallbeaPresident,aSecretary,andaChiefFinancialOfficer.TheCorporationmayalsohave,atthe discretionoftheBoard of Directors, aChairmanof the Board, oneormore Vice Presidents, one ormoreAssistantSecretaries,oneormoreAssistant Treasurers,andsuchother officersasmaybe appointedin accordancewiththe provisionsofSection5.3 oftheseBylaws.Any numberofofficesmay beheld by the same person.
Section 5.2APPOINTMENTOFOFFICERS.TheofficersoftheCorporation,exceptsuchofficersasmaybeappointedinaccordancewiththeprovisionsofSection5.3oftheseBylaws,shallbechosenbytheBoardandserveatthepleasureoftheBoardofDirectors,subjecttotherights,ifany,ofanofficerunder any contract ofemployment.
Section 5.3SUBORDINATEOFFICERS.TheBoardofDirectorsmayappoint,ormayempowertheChairmanoftheBoardorthePresidenttoappoint,suchotherofficersasthebusinessoftheCorporationmayrequire,eachofwhomshallholdofficeforsuchperiod,havesuchauthority,andperformsuchdutiesasareprovidedintheseBylawsorasthe Boardof Directors may fromtime totimedetermine.
Section 5.4REMOVAL OR RESIGNATION OF OFFICERS.Subjecttotherights,ifany,ofanofficerunderanycontractofemployment,allofficersserveatthepleasureoftheBoardofDirectorsandanyofficermayberemoved,eitherwithorwithoutcause,bytheBoardofDirectorsatanyregularorspecialmeetingoftheBoardofDirectorsor,exceptincaseofanofficerchosenbytheBoardofDirectors,byanyofficeruponwhomsuchpowerofremoval maybe conferred by the Board of Directors.
AnyofficermayresignatanytimebygivingwrittennoticetotheCorporation.Anyresignationshalltakeeffectatthedateofthereceiptofthatnoticeoratanylatertimespecifiedinthatnotice;and,unlessotherwisespecifiedinthatnotice,theacceptanceoftheresignationshallnotbenecessarytomakeiteffective.Anyresignationiswithoutprejudicetotherights,ifany,oftheCorporationunderany contractto whichtheofficerisaparty.
Section 5.5VACANCY IN OFFICES. A vacancyinanyofficebecauseofdeath, resignation,removal,disqualificationoranyothercauseshallbefilledinthemannerprescribedbytheseBylawsforregular appointmentstothatoffice.
Section 5.6CHAIRMAN OF THE BOARD.TheChairmanoftheBoard,ifsuchanofficerbeelected,shall,ifpresent,presideatmeetingsoftheBoardofDirectorsandexerciseand performsuchotherpowers anddutiesasmayfromtimetotimebeassignedbytheBoardofDirectorsorasmaybeprescribedbytheseBylaws.IfthereisnoPresident,thentheChairmanoftheBoardshallalsobethechiefexecutiveofficerof theCorporationandshall havethe powersanddutiesprescribedinSection5.7oftheseBylaws.
Section 5.7PRESIDENT. Subjecttosuchsupervisorypowers,ifany,asmaybegivenbytheBoardofDirectorstotheChairmanoftheBoard,iftherebesuchanofficer,thePresidentshallbethechief executiveofficeroftheCorporationandshall,subjecttothecontroloftheBoardofDirectors,havegeneralsupervision,direction, and controlofthebusinessandtheofficersoftheCorporation. ThePresidentshall presideoverallmeetingsoftheshareholdersand,intheabsenceornonexistenceofaChairmanoftheBoard,atallmeetingsof theBoardofDirectors. ThePresidentshallhavethegeneral powersanddutiesofmanagementusuallyvestedintheoffice ofPresidentofacorporation, andshallhavesuchother powers and duties asmay beprescribedbytheBoardof Directorsorthese Bylaws.
Section 5.8VICEPRESIDENTS.IntheabsenceordisabilityofthePresident,theVicePresidents,ifany,inorderoftheirrankasfixedbytheBoardofDirectorsor,ifnotranked,aVicePresidentdesignatedbytheBoardofDirectors,shallperformallthedutiesofthePresidentandwhensoactingshallhaveallthepowersof,andbesubjecttoalltherestrictionsupon,thePresident.TheVice Presidentsshallhavesuchotherpowersandperformsuchother dutiesasfromtimetotimemaybeprescribedforthemrespectivelybytheBoardofDirectors,theseBylaws, thePresident or theChairman of the Board.
Section 5.9SECRETARY. TheSecretaryshallkeep orcausetobekept,atthe principalexecutiveofficeoftheCorporationorsuchotherplaceastheBoardofDirectorsmaydirect,abookofminutesofallmeetingsandactionsofDirectors,committeesofDirectorsandshareholders.Theminutesshallshowthetimeandplaceofeachmeeting,whetherregularorspecial(and,ifspecial,howauthorizedandthenoticegiven),thenamesofthosepresentatDirectors’meetingsorcommitteemeetings,thenumberofsharespresentorrepresentedat shareholders’ meetings,andtheproceedingsthereof.
TheSecretaryshallkeep,orcausetobekept,attheprincipalexecutiveofficeoftheCorporationorattheofficeoftheCorporation’stransferagentorregistrar,asdeterminedbyresolutionoftheBoardofDirectors,ashareregister,oraduplicateshareregister,showingthenamesofallshareholdersandtheiraddresses,thenumberandclassesofsharesheldbyeach,thenumberanddatesofcertificatesevidencingsuchshares,andthenumberanddateofcancellationofeverycertificate surrendered for cancellation.
TheSecretaryshallgive,orcausetobegiven,noticeofallmeetingsofshareholdersandoftheBoardofDirectorsrequiredtobegivenbylaworbytheseBylaws.TheSecretaryshallkeepthesealoftheCorporation,ifonebeadopted,insafecustodyandshallhavesuchotherpowersandperform othersuchdutiesasmaybeprescribed bytheBoardofDirectorsorbytheseBylaws.
Section 5.10CHIEFFINANCIALOFFICER.TheChiefFinancialOfficershallkeepandmaintain,orcausetobekeptandmaintained,adequateandcorrectbooksandrecordsofaccountsofthepropertiesandbusinesstransactionsoftheCorporation,includingaccountsofitsassets,liabilities,receipts,disbursements,gains,losses,capital,retainedearnings,andshares.The books of accountshall at all reasonabletimes be open to inspection byanyDirector.
ARTICLE 6
INDEMNIFICATIONOFDIRECTORS,
OFFICERS,EMPLOYEESANDOTHERAGENTS
Section 6.1INDEMNIFICATION OF DIRECTORS. The Corporationshall, tothe maximumextent andinthemanner permittedbytheCode,indemnifyeachofitsDirectorsagainstexpenses(asdefinedinSection 317(a)of theCode),judgments,fines,settlements,andotheramountsactuallyandreasonablyincurredinconnectionwithanyproceeding(asdefinedinSection317(a) oftheCode),arisingbyreasonofthefactthatsuchpersonisorwasaDirectoroftheCorporation. ForpurposesofthisArticle6,a“Director”oftheCorporationincludes anyperson (i)who is or was a Director of theCorporation, (ii)who is or wasserving at the request of the Corporation as a Director of another foreign ordomestic corporation, partnership,limitedliability company, joint venture,trustor otherenterprise,or (iii) who was a Director of acorporation which was a predecessor corporation ofthe Corporationorofanother enterpriseat therequestofsuch predecessorcorporation.
Section 6.2INDEMNIFICATION OF OTHERS. The Corporationshall havethepower,totheextentandinthemannerpermittedbytheCode,toindemnifyeachofitsemployees,officers,andagents(otherthanDirectors)againstexpenses(asdefinedinSection317(a)oftheCode),judgments,fines,settlementsandotheramountsactuallyand reasonablyincurredinconnectionwithanyproceeding(asdefinedinSection317(a)oftheCode),arisingbyreasonofthefactthatsuchpersonisorwasanemployee,officer,oragentoftheCorporation.ForpurposesofthisArticle6,an“employee”or“officer”or“agent” oftheCorporation(other thanaDirector)includesanyperson(i) whoisorwas anemployee,officer,oragentoftheCorporation,(ii)whoisorwasservingattherequestoftheCorporationasanemployee,officer, or agent of another foreign ordomesticcorporation,partnership,limitedliabilitycompany,joint venture, trust or otherenterprise,or(iii)whowasanemployee,officer,oragentofacorporationwhich was apredecessor corporation of theCorporationor of another enterprise at the request of such predecessor corporation.
Section 6.3PAYMENTOFEXPENSESINADVANCE.Expensesandattorneys’feesincurredindefendinganycivilorcriminalactionorproceedingforwhichindemnificationisrequiredpursuanttoSection6.1,orifotherwiseauthorizedbytheBoardofDirectors,shallbepaidbytheCorporationinadvanceofthefinaldispositionofsuchactionorproceedingupon receiptofanundertakingbyoronbehalfoftheindemnifiedpartytorepaysuchanamountifitshallultimatelybedeterminedthattheindemnifiedpartyisnotentitledtobeindemnifiedasauthorized in this Article 6.
Section 6.4INDEMNITYNOTEXCLUSIVE.TheindemnificationprovidedbythisArticle6shallnotbedeemedexclusiveofanyotherrightstowhichthoseseekingindemnificationmaybeentitledunderanyBylaw,agreement,voteofshareholdersorDirectorsorotherwise,bothastoactioninanofficialcapacityandastoactioninanothercapacitywhileholdingsuchoffice.Therights toindemnityhereundershallcontinueastoapersonwhohasceased tobe a Director, officer, employee oragent andshall inure to the benefit of the heirs, executors, andadministratorsoftheperson.
Section 6.5INSURANCE. TheCorporationshallhavethepowertopurchaseandmaintaininsuranceonbehalfofanypersonwhoisorwasaDirector,officer,employeeoragentoftheCorporationagainstanyliabilityassertedagainstorincurredbysuchpersoninsuchcapacityorarisingoutofthatperson’sstatusassuch,whetherornottheCorporationwouldhavethe power toindemnify that personagainstsuch liabilityunder theprovisions ofthisArticle 6.
Section 6.6CONFLICTS.NoindemnificationoradvanceshallbemadeunderthisArticle6,exceptwheresuchindemnificationoradvanceismandatedbylawortheorder,judgment or decree of any court ofcompetentjurisdiction,inanycircumstancewhereitappears:
(a) ThatitwouldbeinconsistentwiththeprovisionsoftheArticlesofIncorporation,theseBylaws,aresolutionoftheshareholdersoranagreementineffectat thetimeoftheaccrualoftheallegedcauseoftheactionassertedinthe proceedinginwhichtheexpenseswereincurredorotheramountswerepaid,whichprohibitsorotherwise limits indemnification;or
(b) Thatitwouldbeinconsistentwithanyconditionexpresslyimposedbyacourtinapprovinga settlement.
Section 6.7RIGHT TO BRING SUIT.Ifaclaim underthisArticle6isnotpaidinfullbytheCorporationwithinninety(90)daysafterawrittenclaimhasbeenreceivedbythe Corporation(eitherbecausetheclaimisdeniedorbecausenodeterminationismade),theclaimantmayatanytimethereafterbringsuitagainsttheCorporationtorecovertheunpaidamountoftheclaimand,if successful inwholeorinpart,theclaimantshallalsobeentitledtobepaid the expenses of prosecuting suchclaim. The Corporation shall be entitled to raise as adefensetoanysuchactionthattheclaimant hasnotmetthestandardsofconductthatmakeitpermissible under the Code for the Corporation toindemnify theclaimantfor theclaim. Neither the failure of the Corporation (including its Board of Directors, independent legal counsel, or its shareholders)tohavemadeadeterminationpriortothecommencementofsuchactionthatindemnification of theclaimantispermissible in thecircumstances because he or she hasmet the applicable standard of conduct, if any, nor an actualdetermination by the Corporation (includingthe BoardofDirectors,independent legalcounsel,or itsshareholders) thattheclaimanthas notmet the applicable standard of conduct, shall be a defense to such action or create apresumptionforthepurposesofsuchactionthatthe claimanthasnot metthe applicable standard of conduct.
Section 6.8INDEMNITY AGREEMENTS.TheBoardofDirectorsisauthorizedtoenterintoacontractwithanyDirector,officer,employeeoragentofthe Corporation,oranyperson whoisorwas servingattherequestoftheCorporationasaDirector,officer, employeeoragentofanothercorporation,partnership,limited liabilitycompany,jointventure, trust orotherenterprise,includingemployeebenefitplans,oranypersonwhowasaDirector,officer,employeeoragentofacorporationwhichwasapredecessorcorporationoftheCorporationorof another enterprise at the request of such predecessor corporation, providing for indemnification rightsequivalentto or, ifthe Board ofDirectorssodetermines and to the extentpermittedby applicablelaw,greaterthan,those provided for in this Article 6.
Section 6.9AMENDMENT, REPEAL OR MODIFICATION.Anyamendment,repeal ormodificationofany provisionofthis Article6shall notadverselyaffectany rightorprotectionofaDirector,employee,officeroragentoftheCorporationexistingatthetimeofsuchamendment, repeal ormodification.
ARTICLE7
RECORDS ANDREPORTS
Section 7.1MAINTENANCE AND INSPECTION OF SHARE REGISTER. TheCorporation shallkeepeitheratitsprincipal executiveofficeorat theofficeofits transferagentorregistrar(ifeitherbeappointed),asdeterminedbyresolution oftheBoardof Directors,arecordofitsshareholderslistingthenamesandaddressesofallshareholdersandthenumberandclass of shares heldby each shareholder.
AshareholderorshareholdersoftheCorporationholdingatleastfivepercent(5%)inthe aggregateoftheoutstandingvotingsharesoftheCorporationorwhoholdatleastonepercent(1%)ofsuchvotingsharesandhavefiledaSchedule14AwiththeUnitedStatesSecuritiesandExchangeCommissionrelatingtotheelectionofDirectors,shallhaveanabsoluterighttodoeitherorbothofthefollowing(i)inspectandcopytherecordofshareholders’names,addresses,andshareholdingsduringusualbusinesshoursuponfive(5)days’priorwrittendemandupontheCorporation,or(ii)obtainfromthetransferagentoftheCorporation,uponwrittendemandand uponthetenderofsuchtransferagent’susualchargesforsuchlist(theamountofwhichcharges shall be stated to the shareholder by thetransfer agent upon request), a list of the shareholders’namesandaddresseswhoareentitledtovotefortheelectionoftheDirectors,andtheirshareholdings, as of themost recent record date for which it has beencompiled or as of the datespecifiedbytheshareholdersubsequenttothedateofdemand.Thelistshallbemadeavailableon or before the later of five (5) business daysafterthedemand isreceived or the datespecified thereinasthedateasofwhich thelist is tobecompiled.
TherecordofshareholdersshallalsobeopentoinspectionorcopyingbyanyshareholderorholderofavotingtrustcertificateatanytimeduringusualbusinesshoursuponwrittendemandontheCorporation,forapurposereasonablyrelatedtotheholder’sinterestsasashareholderorholderofavoting trust certificate.
AnyinspectionandcopyingunderthisSection7.1maybemadeinpersonorbyanagentor attorney of the shareholder or holderofavotingtrustcertificate makingthe demand.
Section 7.2MAINTENANCEANDINSPECTIONOFBYLAWS.TheCorporationshallkeepatitsprincipalexecutiveofficeor,ifitsprincipalexecutiveofficeisnotintheStateofCalifornia,atitsprincipalbusinessofficeinCalifornia,theoriginaloracopyoftheseBylawsasamendedtodate,whichshallbeopentoinspectionbytheshareholdersatallreasonabletimesduringbusinesshours.IftheprincipalexecutiveofficeisoutsidetheStateofCaliforniaandthe Corporation has no principal business office in such state, then it shall, upon the written requestof any shareholder, furnish to such shareholder a copy of these Bylaws asamended to date.
Section 7.3MAINTENANCE AND INSPECTION OF OTHER CORPORATE RECORDS. The accounting books andrecords andthe minutes ofproceedings ofthe shareholdersand theBoard ofDirectors, andcommittees ofthe Boardof Directorsshall bekept atsuch placeor placesas aredesignated bythe Boardof Directorsor, inabsence ofsuch designation, atthe principal executive officeof theCorporation. Theminutes shall be keptin written form or in any other formcapable of being converted into written form.
TheminutesandaccountingbooksandrecordsshallbeopentoinspectionuponthewrittendemandontheCorporationofanyshareholderor holderofavotingtrustcertificate atanyreasonabletime duringusualbusinesshours,forapurposereasonablyrelated tosuchholder’sinterestsasashareholder orasaholderofavotingtrustcertificate.Suchinspectionby a shareholder or a holder of a voting trustcertificatemaybemade in person or by an agent orattorneyandtheright ofinspectionincludes the righttocopyand makeextracts.Suchrights of inspectionsshallextendtotherecords of each subsidiarycorporation of the Corporation.
Section 7.4INSPECTION BY DIRECTORS. EveryDirectorshallhave theabsoluterightatanyreasonabletimetoinspectandcopyallbooks,records,anddocumentsofeverykindandtoinspectthephysicalpropertiesoftheCorporationandeachofitssubsidiarycorporations,domesticorforeign.SuchinspectionbyaDirector maybemadeinpersonorbyanagentorattorney and the right of inspection includestherighttocopyandmakeextracts.
Section 7.5ANNUALREPORTTOSHAREHOLDERS.SolongastheCorporationhaslessthanonehundred(100)holdersofrecordofitsshares,theannualreporttoshareholders referredtoinSection1501oftheCodeisexpresslydispensedwith,butnothinghereinshallbeinterpretedasprohibitingtheBoardofDirectorsfromissuingannualorotherperiodicreportsto theshareholdersoftheCorporationastheyconsiderappropriate.
Section 7.6FINANCIALSTATEMENTS.Ifnoannualreportforthefiscalyearhas beensenttoshareholders,thentheCorporationshall,uponthewrittenrequestofanyshareholdermademorethanonehundredtwenty(120)daysafterthecloseofsuchfiscalyear,deliverormailtothepersonmakingtherequest,withinthirty(30)daysthereafter,acopyofabalancesheetasoftheendofsuchfiscalyearandanincomestatementandstatementofchangesinfinancial positionforsuchfiscalyear.
Ashareholderorshareholdersholdingatleastfivepercent(5%)oftheoutstandingsharesofanyclassoftheCorporationmaymakeawrittenrequesttotheCorporationforanincomestatementoftheCorporationforthethree-month,six-monthornine-monthperiodofthecurrentfiscalyearendedmorethanthirty (30)dayspriortothedateoftherequest andabalancesheetoftheCorporationasoftheendofthatperiod.Thestatementsshallbedeliveredormailedtothepersonmakingtherequestwithinthirty(30)daysthereafter.Acopyofthestatementsshallbe kept on file in the principaloffice of the Corporation for twelve (12) months and it shall be exhibited at allreasonabletimes to anyshareholderdemanding anexamination of thestatements oracopyshallbemailedtotheshareholder.IftheCorporationhasnotsenttotheshareholders itsannualreportforthelastfiscalyear,thestatementsreferredtointhefirstparagraphofthis Section7.6shalllikewisebedeliveredormailedtotheshareholderorshareholderswithinthirty
(30)daysaftertherequest.
Thequarterlyincomestatementsandbalancesheetsreferredtointhissectionshallbeaccompaniedbythereportthereon,ifany,ofanyindependentaccountantsengagedbytheCorporationorthecertificateofanauthorizedofficeroftheCorporationthatthefinancialstatements were prepared without audit fromthebooksand records of the Corporation.
Section 7.7REPRESENTATION OF SHARES OF OTHER CORPORATIONS. TheChairmanoftheBoard,thePresident,anyVice President,theChiefFinancialOfficer, theSecretaryorAssistantSecretaryoftheCorporation,oranyotherpersonauthorizedbytheBoard ofDirectorsorthePresidentoraVicePresident,isauthorizedtovote,represent,andexerciseonbehalfoftheCorporationallrightsincidenttoanyandallsharesofanyothercorporationor corporations standing in thename of the Corporation. Theauthorityherein grantedmay be exercised either by such person directly or byany otherpersonauthorizedto dosobyproxy orby power of attorney duly executed by such person having the authority.
ARTICLE 8
GENERAL MATTERS
Section 8.1RECORD DATE FOR PURPOSE OTHER THAN NOTICE AND VOTING. For purposesofdeterminingtheshareholdersentitledtoreceivepaymentofanydividendorotherdistributionorallotmentofanyrightsor entitledtoexerciseanyrightsinrespectofanyotherlawfulaction(otherthanwithrespecttonoticeorvotingatashareholdersmeetingoractionbyshareholdersbywrittenconsentwithoutameeting), theBoard ofDirectorsmayfix,inadvance,arecorddate,which shallnotbe more thansixty (60) dayspriortoanysuch action. Only shareholders of record at the close of business on the recorddate are entitled to receive the dividend,distributionorallotmentof rights, or to exercise the rights, as the casemaybe,notwithstandinganytransferofanysharesonthebooksoftheCorporationaftertherecord date,exceptasotherwiseprovidedforinthe Articles of Incorporation or the Code.
IftheBoardofDirectorsdoesnotsofixarecorddate,thentherecorddatefordeterminingshareholdersforanysuchpurposeshallbeatthecloseofbusinessonthedayonwhichtheBoardadoptstheresolutionrelatingtheretoorthesixtieth(60th)daypriortothedate of that action,whichever is later.
Section 8.2CHECKS; DRAFTS; EVIDENCE OF INDEBTEDNESS.From timeto time,the BoardofDirectors shalldeterminebyresolutionwhichpersonorpersonsmaysignorendorseallchecks,drafts,otherordersforpaymentofmoney,notesorotherevidencesofindebtednessthatareissuedinthe name ofor payableto theCorporation, and only thepersonssoauthorizedshallsignorendorsethose instruments.
Section 8.3CORPORATE CONTRACTS AND INSTRUMENTS; HOW EXECUTED. The Boardof Directors,except asotherwise providedin theseBylaws, mayauthorize anyofficer orofficers, oragent oragents, toenter intoany contractor executeany instrumentin thename ofor onbehalf ofthe Corporation;such authoritymay begeneral orconfined tospecific instances. Unlessso authorized orratified bythe Boardof Directorsor withinthe agencypower ofan officer, noofficer, agentor employee shallhave anypower orauthority tobind theCorporation byany contractor engagement orto pledgeits creditor to render it liable for any purpose or for any amount.
Section 8.4CERTIFICATE FOR SHARES. Acertificateorcertificates forsharesoftheCorporation shallbeissuedtoeachshareholderwhenanysuchsharesarefullypaid.TheBoardofDirectorsmayauthorizethe issuanceofcertificatesforsharespartlypaidprovidedthatthese certificatesshall statethe totalamountof the considerationtobe paidfor themandtheamountactually paid. Allcertificates shall be signed in thenameof the Corporation by theChairman of the Board or the ViceChairman of the Board or thePresidentor a VicePresident and by the Chief Financial Officer or an AssistantTreasureror theSecretary or an Assistant Secretary, certifying thenumberof shares andthe class and series of shares owned by the shareholder. Any orallofthe signaturesonthecertificatesmaybeby facsimile.
Incaseanyofficer,transferagentorregistrarhassignedorwhosefacsimilesignaturehasbeenplacedonacertificatehasceasedtobesuchofficer,transferagentorregistrarbeforesuch certificateisissued,itmaybeissuedbytheCorporationwiththesame effectasifthatpersonwereanofficer,transferagentorregistraratthedateofissue.
Section 8.5LOSTCERTIFICATES.ExceptasprovidedinthisSection8.5,nonewcertificateforsharesshallbeissuedtoreplaceapreviouslyissuedcertificateunlessthelaterissurrenderedtotheCorporationoritstransferagentorregistrarandcancelledatthesametime.TheBoardofDirectorsmay,incaseanysharecertificateorcertificateforanyothersecurityislost,stolenordestroyed(asevidencedbyawrittenaffidavitoraffirmationofsuchfact),authorizetheissuanceofreplacementcertificatesonsuchtermsandconditionsastheBoardof Directors may require; the Board of Directorsmay requireindemnification of the CorporationsecuredbyabondorotheradequatesecuritysufficienttoprotecttheCorporationagainstany claim thatmaybemadeagainstit,includinganyexpenseorliability,onaccountoftheallegedloss,theftordestructionof thecertificate or the issuanceofthereplacement certificate.
Section 8.6CONSTRUCTION;DEFINITIONS. Unlessthecontext requiresotherwise,thegeneralprovisions,rulesofconstruction,anddefinitionsintheCodeshallgoverntheconstructionoftheseBylaws.Withoutlimitingthegeneralityoftheprovision,thesingularnumberincludestheplural,thepluralnumberincludesthesingular,andtheterm“person”includes both acorporation and a natural person.
Section 8.7VISITORS.NovisitorsmayattendanymeetingoftheBoardofDirectorswithouttheassentofamajorityoftheDirectorspresent;provided,however,thatarepresentativeoflegalcounselfortheCorporationandarepresentativeoftheindependentcertifiedpublicaccountantfortheCorporation mayattendanysuchmeeting upon the invitation of any Director.
ARTICLE 9AMENDMENTS
Section 9.1AMENDMENT BY SHAREHOLDERS. NewBylaws maybe adoptedortheseBylawsmaybeamendedorrepealedbythevoteorwrittenconsentofholdersofamajorityofoutstandingsharesentitledtovote;provided,however, thatiftheArticlesofIncorporationoftheCorporationsetforththenumberofauthorizedDirectorsoftheCorporation,thentheauthorizednumberofDirectorsmaybechangedonlybyanamendmentoftheArticlesofIncorporation.
Section 9.2AMENDMENT BY DIRECTORS. Subject tothe rightsof theshareholders asprovided bySection 9.1of theseBylaws, Bylaws,other thana Bylawor anamendment ofa Bylawchanging theauthorized numberof Directors(except tofix theauthorized number ofDirectors pursuantto aBylaw providingfor avariable number ofDirectors), may be adopted, amended or repealed by the Board of Directors.
Section 9.3RECORDOFAMENDMENTS. WheneveranyamendmentornewBylawisadopted,itshallbeinserted intheminutebook oftheCorporationwiththeoriginalBylawsalongwiththedulyauthorizedandexecutedresolution(s)orwrittenconsent(s)enactingsuchamendmentor newBylaw.Ifany Bylawisrepealed,thedulyauthorizedandexecuted resolution(s)orwrittenconsent(s)enactingsuchrepealshallbeinsertedintheminutebookofthe Corporation.
ARTICLE10INTERPRETATION
ReferenceintheBylawstoanyprovisionoftheCaliforniaCorporationsCodeshallbedeemed to include allamendments thereto.
CERTIFICATEOFSECRETARY
IHEREBYCERTIFYthatIamthedulyelected,qualifiedandactingSecretaryofCABINETGROW,INC.,aCaliforniacorporation(the“Corporation”),andthattheaboveandforegoingBylawswereadoptedastheBylawsoftheCorporationasofApril28,2014bywrittenconsentofthesoleincorporatorofthisCorporationandwereratifiedbytheBoardofDirectorsof this Corporation by written consent as of April 29, 2014.
INWITNESSWHEREOF, I have executedthisCertificateasofApril29,2014.
