UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 9, 2004 (December 9, 2004)
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THE GREAT ATLANTIC & PACIFIC
TEA COMPANY, INC.
(Exact name of registrant as specified in its charter)
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Maryland 1-4141 13-1890974
(State or other jurisdiction of (Commission file number) (I.R.S. Employer
incorporation or organization) Identification No.)
Two Paragon Drive
Montvale, New Jersey 07645
(Address of principal executive offices)
(201) 573-9700
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
------------------------
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
===============================================================================
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.05 Costs Associated with Exit or Disposal Activities
On December 9, 2004, The Great Atlantic & Pacific Tea Company, Inc. (the
"Company") committed to the next step of its reorganization which began, as
announced on November 4, 2004, with the unification of the Company's corporate
and U.S. leadership and operating structure. As a result of this next step, the
Company will reduce overhead costs in its U.S. business by an estimated $50
million during fiscal 2005 and an additional $25 million in fiscal 2006. The
Company expects to incur charges of up to $10 million over the next year,
approximately $4 million of which it expects will be charged against third
quarter earnings. These costs, all of which involve future cash expenditures,
are comprised primarily of employee termination benefits. The Company's press
release related to the aforementioned actions is included herein as Exhibit
99.1.
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in
Fiscal Year
On December 9, 2004, the Company's Board of Directors adopted certain amendments
to the Company's By-Laws (the "By-Laws"). The Board of Directors amended Article
IV, Section 1 and Article IV, Section 16 of the By-laws in order to replace the
position of General Counsel with the position of Chief Legal Officer. In
conjunction therewith, all references in the By-laws to General Counsel were
replaced with Chief Legal Officer. Additionally, the Board of Directors added a
new Article X to the Bylaws, in furtherance of Article VIII of the Corporation's
Certificate of Incorporation, to explicitly provide for the indemnification of
directors, officers and employees of the Company in certain instances. The
amendments took effect upon adoption by the Board of Directors. The foregoing
description of the amendments is qualified in its entirety by reference to the
text of the amended By-laws, which is attached hereto as Exhibit 3.1.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits. The following exhibits are filed herewith:
Exhibit No. Description
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3.1 Bylaws of the Company as amended to December 9, 2004
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99.1 Press Release dated December 9, 2004
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: December 9, 2004
THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
By: /s/ Mitchell P. Goldstein
------------------------------
Name: Mitchell P. Goldstein
Title: Executive Vice President,
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
- ---------- -----------
3.1 Bylaws of the Company as amended to December 9, 2004
99.1 Press release dated December 9, 2004
EXHIBIT 99.1
The Great Atlantic & Pacific Tea Company, Inc.
2 Paragon Drive
Montvale, NJ 07645
Investor Contact: William J. Moss
Vice President, Treasurer
(201) 571-4019
Press Contact: Richard De Santa
Vice President, Corporate Affairs
(201) 571-4495
For Immediate Release
- ---------------------
A&P Reorganization Targets Significant
Cost Reductions and Improved Execution
MONTVALE, NJ - December 9, 2004 - The Great Atlantic & Pacific Tea Company, Inc.
(A&P) today announced the next step of its reorganization, which began with the
unification of its corporate and U.S. leadership and operating structure
announced on November 4.
The initiative reported today, affecting the Company's U.S. business only, will
reduce overhead costs by an estimated $50 million during fiscal 2005 and an
additional $25 million in fiscal 2006. In addition to substantially improving
efficiency, A&P said the reorganization will strengthen senior management
control, focus local banners strictly on operating and customer service
execution, and promote the rollout of its fresh and discount retail strategies.
The Company said it expects to incur cash transition charges of up to $10
million over the next year as changes are implemented. It is expected that
approximately $4 million of that total will be charged against third quarter
earnings, which are scheduled to be reported on January 7.
Christian Haub, Chairman and Chief Executive Officer, said, "Over the past two
years, we have stabilized our U.S. operations and maintained the success of A&P
Canada. We must now accelerate our improvement to reach and surpass breakeven
performance as rapidly as possible, and drive the execution of our promising
fresh market and discount retail strategies throughout our store network. These
difficult but necessary actions, aligned with the unification of our U.S.
management organization, will give us the cost structure and capability to
execute those strategies profitably."
Founded in 1859, A&P, one of the nation's first supermarket chains, is today
among North America's largest. The Company operates 649 stores in 10 states, the
District of Columbia and Ontario, Canada under the following tradenames: A&P,
Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer Jack,
Sav-A-Center, Dominion, The Barn Markets, Food Basics and Ultra Food & Drug.
#####
EXHIBIT 3.1
BY-LAWS OF THE GREAT ATLANTIC & PACIFIC
TEA COMPANY, INC.
As Amended
December 9, 2004
BY LAWS
OF
THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.
ARTICLE I.
OFFICES.
SECTION 1. Principal Office. The principal office of The Great
Atlantic & Pacific Tea Company, Inc. (hereinafter called the
Corporation) in the State of Maryland shall be 1300 Mercantile Bank & Trust
Building, 2 Hopkins Plaza in the City of Baltimore. The name of the resident
agent in charge thereof is United States Corporation Company.
SECTION 2. Other Offices. The Corporation may also have an office or
offices in the Borough of Montvale, in the State of New Jersey, and at such
other place or places either within or without the State of Maryland as the
Board of Directors may from time to time determine, or the business of the
Corporation may require.
ARTICLE II.
MEETING OF STOCKHOLDERS.
SECTION 1. Annual Meetings. The annual meeting of the stockholders for
the election of directors and for the transaction of such other business as may
properly be brought before such meeting shall be held on such date between the
thirtieth day of June and the thirty-first day of July in each year as may be
fixed by the Board of Directors, at such time and place as may be designated by
the Board of Directors in the notice thereof.
SECTION 2. Special Meetings. A special meeting of the stockholders for
any purpose or purposes may be called at any time by the Chief Executive
Officer, the Chairman of the Board, or the President and shall be called by the
Secretary upon written request of three or more members of the Board of
Directors or of the holders of shares entitled to not less than twenty-five per
cent of all the votes entitled to be cast at any such meeting. Such request
shall state the purpose or purposes of such meeting and the matters proposed to
be acted on thereat. No special meeting need be called upon the request of the
holders of shares entitled to cast less than a majority of all votes entitled to
be cast at such meeting, to consider any matter which is substantially the same
as a matter voted upon at any special meeting of the stockholders held during
the preceding twelve months. Each such special meeting shall be held at such
time and place as may be designated in the notice thereof.
SECTION 3. Notice of Meetings. Notice of time and place of each meeting
of the stockholders shall be given to each stockholder entitled to vote at such
meeting at least fifteen and not more than ninety days before the day on which
the meeting is to be held by mailing such notice in a postage prepaid envelope
addressed to him at his post office address as it appears on the records of the
Corporation. The notice of a meeting of the stockholders shall also state
briefly the objects and purposes thereof as required by law. Any stockholder may
at any time, in writing or by telegraph or cable, waive any notice required to
be given him under Article 23 of the Annotated Code of Maryland, the Certificate
of Incorporation, or these By-Laws.
SECTION 4. Quorum. At each meeting of the stockholders, except as
otherwise expressly provided by statute or the Certificate of Incorporation, the
holders of record of a majority of the issued and outstanding shares of stock of
the Corporation entitled to vote at such meeting, present either in person or by
proxy, shall constitute a quorum for the transaction of business. If there be no
such quorum present the holders of a majority of such shares so present or
represented may adjourn the meeting from time to time, without notice other than
announcement at the meeting, until the requisite amount of voting stock shall be
present. At such adjourned meeting at which the requisite amount of voting stock
shall be represented, any business may be transacted which might have been
transacted at the meeting as originally notified.
SECTION 5. Organization. At each meeting of the stockholders, the
Chairman of the Board shall act as Chairman and preside thereat. In his absence,
the following shall act in his stead in the order of precedence stated: The
Chief Executive Officer, the President, the Executive Vice Presidents (if any)
in order of seniority of service with the Corporation, the Vice Presidents in
order of seniority of service with the Corporation, the Treasurer, or the
Assistant Treasurer. The Secretary, or in his absence, the Assistant Secretary
or in the absence of both, such person as the Chairman may designate, shall act
as secretary of such meeting and keep the minutes thereof.
SECTION 6. Voting. Except as otherwise provided in the Certificate of
Incorporation, each stockholder shall at each meeting of the stockholders be
entitled to one vote in person or by proxy for each share of stock of the
Corporation entitled to be voted thereat held by him and registered in his name
on the books of the Corporation, on such date as may be fixed pursuant to
Section 4 of Article VI as the record date for the determination of stockholders
entitled to notice of and to vote at such meeting. At all meetings of the
stockholders all matters to be voted upon, except those the manner of deciding
which is otherwise expressly regulated by statute or the Certificate of
Incorporation, shall be decided by the vote of a majority in interest of the
stockholders present in person or by proxy and entitled to vote on such matters.
Except in the case of votes for the election of directors and for other matters
expressly so regulated by statute, the vote at any meeting of the stockholders
on any question need not be by ballot, unless demanded by a stockholder present
in person or by proxy and entitled to vote on such matters.
SECTION 7. List of Stockholders. It shall be the duty of the Secretary
who shall have charge of the stock ledger of the Corporation, either directly or
through a transfer agent appointed by the Board of Directors, to prepare and
make a complete list of the stockholders entitled to vote at any meeting. Such
list shall be kept at the place of election during the meeting.
SECTION 8. Inspectors of Election. Before, or at each meeting of the
stockholders, the Chairman of such meeting shall appoint two Inspectors of
Election to act thereat. Each Inspector of Election so appointed shall first
subscribe an oath or affirmation faithfully to execute the duties of an
Inspector of Election at such meeting with strict impartiality and according to
the best of his ability. Such Inspectors of Election shall take charge of the
ballots at such meeting and after the balloting thereat on any question shall
count the ballots cast thereon and shall make a report in writing to the
Secretary of such meeting of the results thereof.
ARTICLE III.
BOARD OF DIRECTORS.
SECTION 1. General Powers. The property, business and affairs of the
Corporation shall be managed by the Board of Directors.
SECTION 2. Number, Qualification and Term of Office. The number of
directors shall be determined by the vote of a majority of the entire Board of
Directors, but such number shall not be decreased to less than three. Any
decrease in the number of directors shall not affect the tenure in office of any
director. Each director shall hold office until the annual meeting of the
stockholders next following his election and until his successor shall have been
elected and qualified or until his death, resignation or removal.
SECTION 3. Resignation and Removal of Directors. Any director may
resign at any time by giving notice to the Chief Executive Officer, the Chairman
of the Board, the President or the Secretary, in writing. Any such resignation
shall take effect at the time specified therein, or, if no time is so specified,
upon its receipt. The acceptance of such resignation shall not be necessary to
make it effective. At any meeting of stockholders, duly called and at which a
quorum is present, the stockholders may, by the affirmative vote of the holders
of a majority of the votes entitled to be cast thereon, remove any director or
directors from office and may elect a successor or successors to fill any
resulting vacancies for the unexpired terms of removed directors.
SECTION 4. Vacancies. Any vacancy in the Board of Directors may be
filled by vote of the majority of the remaining directors, except that a vacancy
occurring by reason of an increase in the number of directors may be filled by
vote of a majority of the entire Board, and each director so chosen shall hold
office until the next annual meeting of stockholders and until his successor
shall have been elected and shall qualify.
SECTION 5. Meetings. As soon as practical after each annual meeting of
stockholders for the election of directors, the Board of Directors shall meet
for the purpose of organizing, for the election of officers, and for the
transaction of such other business as may come before the meeting. In addition
to such meeting of the Board of Directors, regular meetings of the Board of
Directors for the purpose of transacting such business as may properly come
before the meeting shall be held at such times as shall be designated by the
Board of Directors. All meetings of the Board of Directors shall be held at such
places as the Board may designate.
SECTION 6. Special Meetings; Notice. Special meetings of the Board of
Directors shall be held whenever called by the Chief Executive Officer, the
Chairman of the Board, or by the President, or by the Secretary on the written
request of three directors. Notice of such meeting shall be mailed to each
director addressed to him at his residence or usual place of business at least
five days before the day on which the meeting is to be held. which notice shall
designate the time and place of such meeting. Any director may at any time, in
writing or by telegraph or cable, waive any notice required to be given him
under Article 23 of the Annotated Code of Maryland, the Certificate of
Incorporation, or these By-Laws.
SECTION 7. Organization. At each meeting of the Board of Directors, the
Chairman and the Secretary shall be those persons who would have acted in such
offices, respectively, at a meeting of the stockholders, as provided for in
Section 5 of Article II of these By-Laws.
SECTION 8. Quorum and Manner of Acting. One-half of the whole Board of
Directors shall constitute a quorum for the transaction of business at any
meeting, and the act of a majority of the directors present at any meeting at
which a quorum is present shall be the act of the Board of Directors.
SECTION 9. Compensation. All directors may be allowed a fixed sum for
attendance at each meeting of the Board of Directors as may be fixed by
resolution of the Board and reimbursement for expenses incurred in connection
with the performance of their duties. Directors who are not employees of the
Corporation or of any of its subsidiaries may also be paid such annual
compensation as may be fixed by resolution of the Board. Members of the
Executive Committee or of other committees or boards designated by the Board of
Directors may be allowed a fixed sum and expenses incurred for attending
meetings of such committees or boards and, if they are not employees of the
Corporation or of any of its subsidiaries, may also be paid such annual
compensation as may be fixed by resolution of the Board of Directors. Nothing
herein contained shall be construed to preclude any director from serving the
Corporation in any other capacity and receiving compensation therefore.
SECTION 10. Committees of Board of Directors.
(A) The Executive Committee.
There shall be an Executive Committee, composed of not less than five
nor more than seven directors. During the intervals between the meetings of the
Board of Directors, the Executive Committee shall have all the powers of the
Board and may exercise such powers when the exercise thereof prior to the next
regular meeting of the Board of Directors is deemed by the Committee to be
necessary in the management and direction of the business and affairs of the
Corporation.
The Executive Committee shall be elected by a majority of the Board of
Directors at each Annual Meeting of the Board. A majority of the members of the
Executive Committee shall be composed of directors who are not employees of the
Company or any of its subsidiaries and alternates for such members, who shall
themselves be directors who are not employees of the Company or any of its
subsidiaries, shall also be elected. In the absence from a meeting of the
Executive Committee of any non-employee member or members thereof, available
alternates shall serve in the order their respective names shall appear in the
resolution electing them, and shall act and vote in the stead of any such absent
non-employee member or members.
The Executive Committee shall keep minutes of its meetings and a copy
of such minutes (or a summary thereof) shall be forwarded promptly to each
director, and all action by the Executive Committee shall be reported to the
Board of Directors at its next meeting.
(B) Other Committees.
The Board of Directors may by resolution designate other committees or
boards composed of three or more of its members, which resolution shall set
forth the powers of such committees or boards. All action by such other
committees or boards shall be reported to the Board of Directors at its next
meeting.
(C) General.
A majority of the members of each committee or board shall constitute a
quorum, but in the absence of a quorum the remaining members present may
designate one or more other directors to act at such meetings in the place of
absent members, subject to the provisions of Subsection A of this Section 10.
Each committee or board may fix its rules of procedure, determine its
manner of acting and fix the time and place of its meetings and specify what
notice thereof, if any, shall be given, unless the Board of Directors shall
otherwise by a resolution provide.
The Board of Directors shall have the power to change the membership of
any committee or board (including the Executive committee) at any time, to fill
vacancies therein, to discharge any such committee or board, and to remove any
member thereof, either with or without cause, at any time.
SECTION 11. Any action required or permitted to be taken at any meeting
of the Board of Directors or any committee thereof may be taken without a
meeting, if written consent to such action is signed by all members of the Board
or of such committee, as the case may be, and such written consent is filed with
the minutes of proceedings of the Board or Committee.
The Board of Directors or any committee designated thereby may
participate in a meeting of the Board or such committee, as the case may be, by
means of a conference telephone or similar communications equipment by means of
which all persons participating in the meeting can hear each other at the same
time.
ARTICLE IV.
OFFICERS.
SECTION 1. The officers of the Corporation shall be a Chief Executive
Officer, a Chairman of the Board, a President, a Chief Financial Officer, one or
more Vice Presidents, a Secretary, a Treasurer, a Chief Legal Officer and a
Controller. The Board may also elect one or more Vice Chairmen, one or more
Executive Vice Presidents, and one or more Assistant Secretaries and Assistant
Treasurers. The same person may hold more than one office, except that the same
person shall not hold simultaneously the offices of President and Vice President
or Chief Executive Officer and Chief Financial Officer.
SECTION 2. Election and Term of Office. The officers shall be elected
annually by the Board of Directors. Each officer shall hold office until the
next annual election of officers and until his successor shall have been elected
and qualified.
SECTION 3. Resignations and Removal. Any officer may at any time resign
in the same manner as provided for a director in Section 3 of Article III. Any
officer may be removed, either with or without cause, at any time, by the vote
of a majority of the whole Board of Directors.
SECTION 4. Vacancies. A vacancy in any office because of death,
resignation, removal or any other cause may be filled for the unexpired portion
of the term at any meeting of the Board of Directors.
SECTION 5. The Chief Executive Officer. The Chief Executive Officer
shall have general and active supervision over the business and affairs of the
Company, its officers employees and agents, subject to the control of the Board
of Directors, and shall be an ex-officio member of all committees of the Board
of Directors, with the exception of the Compensation Policy Committee and the
Audit Review Committee.
SECTION 6. The Chairman of the Board. The Chairman of the Board shall
act as Chairman and preside at all meetings of the stockholders and the Board of
Directors, and in general shall perform such duties as are incident to the
office of Chairman of the Board.
SECTION 7. [Intentionally Deleted]
SECTION 8. The President. The President shall in general perform such
duties as are incident to the office of President, subject to the control of the
Board of Directors, the Chief Executive Officer, or the Chairman of the Board.
SECTION 9. Chief Financial Officer. The Chief Financial Officer shall
have charge of the financial affairs of the Corporation and shall have such
duties as may from time to time be assigned to him by the Board of Directors,
the Chief Executive Officer, the Chairman of the Board, or the President.
SECTION 10. Executive Vice Presidents. The Executive Vice Presidents
shall have such powers and perform such duties as may from time to time be
assigned to them by the Board of Directors, the Chief Executive Officer, the
Chairman of the Board, or the President.
SECTION 11. The Vice Presidents. The Vice Presidents shall have such
powers and perform such duties as may from time to time be assigned to them by
the Board of Directors, the Chief Executive Officer, the Chairman of the Board,
or the President.
SECTION 12. The Secretary. The Secretary shall record or cause to be
recorded all the proceedings of the meetings of the stockholders of the
Corporation and the Board of Directors in a book or books to be kept for that
purpose; shall see that all notices are duly given in accordance with the
provisions of these By-Laws or as required by statute or the Certificate of
Incorporation; shall have custody of the books and other records (other than the
accounting records) and of the seal of the Corporation and shall see that the
books, records and other documents required by law (including the stock ledger
and the records of the issue, transfer and registration of certificates for
shares of stock) are properly kept and filed; shall see that the seal of the
Corporation is affixed to all documents the execution of which on behalf of the
Corporation under its seal is duly authorized and shall attest such seal; and in
general shall perform all duties incident to the office of Secretary and such
other duties as from time to time may be assigned to him by the Board of
Directors, the Chief Executive Officer, the Chairman of the Board, or the
President.
SECTION 13. Assistant Secretaries. At the request of the Secretary, or
in the case of his absence or inability to act, the Assistant Secretary shall
perform the duties of the Secretary, and, when so acting, shall have all the
powers of, and be subject to all the restrictions upon, the Secretary.
SECTION 14. The Treasurer. The Treasurer shall have such duties as may
from time to time be assigned to him by the Board of Directors, the Chief
Executive Officer, the Chairman of the Board, the President, or the Chief
Financial Officer. He shall have the authority to enter into and execute on the
Company's behalf all banking arrangements.
SECTION 15. Assistant Treasurers. At the request of the Treasurer, or
in case of his absence or inability to act, the Assistant Treasurer shall
perform the duties of the Treasurer, and when so acting, shall have all the
powers of, and be subject to all the restrictions upon, the Treasurer.
SECTION 16. The Chief Legal Officer. The Chief Legal Officer shall be
the chief legal advisor to the Corporation and shall have such powers and
perform such duties as may from time to time be assigned to him by the Board of
Directors, the Chief Executive Officer, the Chairman of the Board, the President
or the Executive Vice President.
SECTION 17. The Controller. The Controller shall have such powers and
perform such duties as may from time to time be assigned to him by the Board of
Directors, the Chief Executive Officer, the Chairman of the Board, the
President, or the Treasurer.
SECTION 18. Salaries. The salaries of the officers shall be fixed from
time to time by the Board of Directors or by any committee or officer to which
or to whom the Board of Directors shall delegate authority so to do.
ARTICLE V.
NOTES, CHECKS, PROXIES, ETC.
SECTION 1. Loans. Loans may be contracted on behalf of the Corporation
by those officers duly authorized by a resolution of the Board of Directors.
Such authorization will pertain not only to the borrowing of funds but also to
the execution and delivery by such officers of bonds, debentures, promissory
notes, or other evidences of indebtedness of the Corporation relating thereto.
SECTION 2. Checks, Drafts, etc. All checks, drafts or other orders for
the payment of money issued in the name of the Corporation shall be signed by
such officer or officers, or by such agent or agents as may be authorized so to
do from time to time by the Board of Directors, the Chief Executive Officer, the
Chairman of the Board, the President, the Chief Financial Officer, or the
Treasurer.
SECTION 3. Deposits. All funds of the Corporation not otherwise
employed shall be deposited from time to time to the credit of the Corporation
or otherwise as the Board of Directors, the Chief Executive Officer, the
Chairman of the Board, the President, the Chief Financial Officer, or the
Treasurer shall direct in such banks, trust companies or other depositories as
the Board of Directors or such officers may select or as may be selected by any
officer or officers, or agent or agents, to whom power in that respect shall
have been delegated by the Board of Directors.
SECTION 4. Proxies in Respect of Stock or Other Securities of Other
Corporations. Unless otherwise provided by resolution adopted by the Board of
Directors, the Chief Executive Officer, or in his absence, the President may
from time to time appoint on behalf of the Corporation by a proxy in writing an
attorney or attorneys, or an agent or agents, to exercise in the name and on
behalf of the Corporation the powers and rights which the Corporation may have
as the holder of stock or other securities in any other corporation to vote or
consent in respect of such stock or other securities, and the Chief Executive
Officer, or in his absence, the President may instruct the person or persons so
appointed as to the manner of exercising such powers and rights.
ARTICLE VI.
CAPITAL STOCK.
SECTION 1. Certificates of Stock. Each stockholder shall be entitled to
a certificate or certificates which shall represent and certify the number of
shares of stock owned by him in the Corporation. Each certificate shall be
signed by the Chairman of the Board or President and countersigned by the Chief
Financial Officer or the Treasurer and shall be sealed with the corporate seal
which may be a facsimile; provided, however, that where such certificate is
signed by a transfer agent acting on behalf of the Corporation and a registrar,
the signature of any such officer may be by facsimile. In case any officer who
has signed any certificate, or whose facsimile signature has been used thereon,
ceases to be an officer of the Corporation before the certificate is issued, the
certificate may nevertheless be issued by the Corporation with the same effect
as if the officer had not ceased to be such officer as of the date of its issue.
SECTION 2. Transfers of Shares. Each transfer of shares of stock of the
Corporation shall be made only on the books of the Corporation by the registered
holder thereof, or by his attorney thereunto authorized by power of attorney
duly executed and filed with the Secretary of the Corporation, or with a
transfer agent appointed as provided in Section 3 of this Article, upon the
payment of all taxes thereon and the surrender of the certificate or
certificates for such shares properly endorsed. The Corporation shall be
entitled to treat the holder of record of any share or shares of stock as the
owner in fact thereof and accordingly shall not be bound to recognize any
equitable or other claim to or interest in such share on the part of any other
person, whether or not it shall have express or other notice thereof.
SECTION 3. Regulations; Transfer Agents, etc. The Board of Directors
may make such rules and regulations as it may deem expedient, not inconsistent
with these By-Laws, concerning the issue, transfer and registration of
certificates for shares of stock of the Corporation. It may appoint one or more
transfer agents and one or more registrars, and may require all certificates for
shares of stock of the Corporation to bear the signature or signatures of any of
them.
SECTION 4. Record Date. The Board of Directors may fix in advance a
date, not exceeding ninety days preceding the date of any meeting of
stockholders, or the date for the payment of any dividend, or the date for the
allotment of rights, or the date when any change or conversion or exchange of
capital stock shall go into effect, or a date for obtaining any consent of
stockholders for any purpose, as a record date for the determination of the
stockholders entitled to notice of, and to vote at, any such meeting and any
adjournment thereof, or entitled to receive payment of any such dividend,
notwithstanding any transfer of any stock on the books of the Corporation after
any such record date fixed as aforesaid.
SECTION 5. Lost, Destroyed and Mutilated Certificates. The holder of
any shares of stock of the Corporation shall immediately notify the Corporation
of any loss, destruction or mutilation of the certificate therefor, and the
Board of Directors may, by resolution, or regulation adopted pursuant to Section
3 of this Article, after the expiration of such period of time as it may
determine to be advisable, cause to be issued to him a new certificate or
certificates for shares of stock, upon the surrender of the mutilated
certificate or, in case of loss or destruction of the certificate, upon
satisfactory proof of such loss or destruction, and the Board of Directors may,
by such resolution or regulation, require the owner of the lost, destroyed or
mutilated certificate, or his legal representatives, to give the Corporation a
bond in such sum and with such surety or sureties as it may direct, to indemnify
the Corporation against any claim that may be made against it on account of the
alleged loss, destruction or mutilation of any such certificate or the issuance
of such new certificate.
SECTION 6. Examination of Books by Stockholders. The Board of Directors
shall, subject to any applicable statutes, have the power to determine whether
and to what extent and at what times and places and under what conditions and
regulations the accounts and books and documents of the Corporation or any of
them, shall be open to the inspection of the stockholders; and no stockholder
shall have any right to inspect any account or book or documents of the
Corporation, except as conferred by any such statute unless and until authorized
so to do by resolution of the Board of Directors.
ARTICLE VII.
SEAL.
The Board of Directors shall provide a corporate seal which shall be in
the form of a circle and shall bear the full name of the Corporation and words
and figures indicating the year and state in which the Corporation was
incorporated and such other words or figures as the Board of Directors may
approve and adopt.
ARTICLE VIII.
FISCAL YEAR.
The fiscal year of the Corporation shall end on the last Saturday in
February of each year.
ARTICLE IX.
AMENDMENTS.
Subject to Article X, Section 5 of the By-Laws, these By-Laws may be
altered, amended or repealed and new By-Laws adopted by the stockholders or by
the Board of Directors by a majority vote at any meeting called for that
purpose, but no amendment adopted by the stockholders shall thereafter be
altered or repealed by the Board of Directors.
ARTICLE X.
INDEMNIFICATION.
SECTION 1. Indemnification of Directors and Officers. In furtherance of
Article VIII of the Corporation's Certificate of Incorporation, the Corporation
shall indemnify its directors and officers, whether serving the Corporation or,
at its request, any other entity, in any capacity, to the maximum extent
required or permitted by Maryland law now or hereafter in force, including the
advance of expenses under the procedures and to the maximum extent permitted by
law.
SECTION 2. Indemnification of Other Employees and Agents. The
Corporation may indemnify other employees and agents to such extent as shall be
authorized by the Board of Directors and be permitted by law.
SECTION 3. Rights Not Exclusive. The foregoing rights of
indemnification shall not be exclusive of any other rights to which those
seeking indemnification may be entitled and shall continue as to a person who
has ceased to be an officer, director, agent or employee, and shall inure to the
benefit of the heirs, executors and administrators of such person.
SECTION 4. General. The Board of Directors may take such action as is
necessary to carry out these indemnification provisions and is expressly
empowered to adopt, approve and amend from time to time such resolutions or
contracts implementing such provisions or such further indemnification
arrangements as may be permitted by law.
SECTION 5. Effect of Amendment or Repeal. No amendment or repeal of
this Article X of the Corporation's By-Laws shall apply to or have any effect on
any right to indemnification provided hereunder with respect to acts or
omissions occurring prior to such amendment or repeal.