Bylaws
of
AmeriNet Group.com, Inc.
ARTICLE I
STOCKHOLDERS
SECTION 1. Annual Meetings
(a) (1) The annual meeting of the stockholders of the Corporation shall
be held at the principal office of the Corporation in the State
of Delaware or at such other place within or without the State of
Delaware as may be determined by the Board of Directors and as
may be designated in the notice of such meeting.
(2) The meeting shall be held on the 15th day of July of each year or
on such other day as the Board of Directors may specify.
(3) If said day is a legal holiday, the meeting shall be held on the
next succeeding business day not a legal holiday.
(b) Business to be transacted at such meeting shall be the election of
Directors to succeed those whose terms are expiring and such other
business as may be properly brought before the meeting.
(c) In the event that the annual meeting, by mistake or otherwise, shall
not be called and held as herein provided, a special meeting may be
called as provided for in Section 2 of this Article I in lieu of and
for the purposes of and with the same effect as the annual meeting.
(d) Subject to compliance with requirements imposed under Section 14 of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
proposals by stockholders for action at an annual meeting must be
submitted to the Corporation's principal executive offices so that
they are received thereat on or BEFORE THE 120TH day prior to the
annual anniversary of the last preceding annual meeting, unless such
proposal relates to the nomination of directors, in which case it must
be submitted to the Corporation's principal executive offices so that
the name, address, telephone number and if available, fax number and
e-mail address of the nominee, together with biographical data
covering the nominees activities during the preceding five years
satisfying the disclosure requirements of Regulation SB are received
thereat on OR BEFORE THE 60TH day prior to the time that the
Corporation first files materials with the Commission pertaining to
such meeting on either Schedule 14A or 14C promulgated under authority
of the Exchange Act.
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SECTION 2. Special Meetings
(a) A special meeting of the stockholders of the Corporation may be called
for any purpose or purposes at any time by the Chairman or President
of the Corporation, by the Board of Directors or by the holders of not
less than 10% of the outstanding capital stock of the Corporation
entitled to vote at such meeting.
(b) (1) At any time, upon the written direction of any person or persons
entitled to call a special meeting of the stockholders, it shall
be the duty of the Secretary to send notice of such meeting
pursuant to Section 4 of this Article I.
(2) It shall be the responsibility of the person or persons directing
the Secretary to send notice of any special meeting of
stockholders to deliver such direction and a proposed form of
notice to the Secretary not less than 15 days prior to the
proposed date of said meeting.
(c) Special meetings of the stockholders of the Corporation shall be held
at such place, within or without the State of Delaware, on such dates,
and at such time as shall be specified in the notice of such special
meeting.
SECTION 3. Adjournment
(a) When the annual meeting is convened, or when any special meeting is
convened, the presiding officer may adjourn it for such period of time
as may be reasonably necessary to reconvene the meeting at another
place and time.
(b) The presiding officer shall have the power to adjourn any meeting of
the stockholders for any proper purpose, including, but not limited
to, lack of a quorum, securing a more adequate meeting place, electing
officials to count and tabulate votes, reviewing any stockholder
proposals or passing upon any challenge which may properly come before
the meetings.
(c) (1) When a meeting is adjourned to another time or place, it shall
not be necessary to give any notice of the adjourned meeting if
the time and place to which the meeting is adjourned are
announced at the meeting at which the adjournment is taken, and
any business may be transacted at the adjourned meeting that
might have been transacted on the original date of the meeting
(2) If, however, after the adjournment the Board fixes a new record
date for the adjourned meeting, a notice of the adjourned meeting
shall be given in compliance with Section 4(a) of this Article I
to each stockholder of record on the new record date entitled to
vote at such meeting.
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SECTION 4. Notice of Meetings; Purpose of Meeting; Waiver
(a) (1) Each stockholder of record entitled to vote at any meeting shall
be given in person, or by first class mail, postage prepaid,
written notice of such meeting which, in the case of a special
meeting, shall set forth the purpose(s) for which the meeting is
called, not less than 20 or more than 60 days before the date of
such meetin
(2) If mailed, such notice is to be sent to the stockholder's address
as it appears on the stock transfer books of the Corporation,
unless the stockholder shall be requested of the Secretary in
writing at least 15 days prior to the distribution of any
required notice that any notice intended for him or her be sent
to some other address, in which case the notice may be sent to
the address so designated.
(3) Notwithstanding any such request by a stockholder, notice sent to
a stockholder's address as it appears on the stock transfer books
of this Corporation as of the record date shall be deemed
properly given.
(4) Any notice of a meeting sent by United States mail shall be
deemed delivered when deposited with proper postage thereon with
the United States Postal Service or in any mail receptacle under
its control.
(b) (1) A stockholder waives notice of any meeting by attendance, either
in person or by proxy, at such meeting or by waiving notice in
writing either before, during or after such meeting.
(2) Attendance at a meeting for the express purpose of objecting that
the meeting was not lawfully called or convened, however, will
not constitute a waiver of notice by a stockholder who states at
the beginning of the meeting, his or her objection that the
meeting is not lawfully called or convened.
(c) A waiver of notice signed by all stockholders entitled to vote at a
meeting of stockholders may also be used for any other proper purpose
including, but not limited to, designating any place within or without
the State of Delaware as the place for holding such a meeting.
(d) Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of stockholders need be specified in any
written waiver of notice.
SECTION 5. Closing of Transfer Books; Record Date; Stockholders' List
(a) In order to determine the holders of record of the capital stock of
the Corporation who are entitled to notice of meetings, to vote a
meeting or adjournment thereof, or to receive payment of any dividend,
or for any other purpose, the Board of Directors may fix a date not
more than 60 days prior to the date set for any of the above-mentioned
activities for such determination of stockholders.
(b) If the stock transfer books shall be closed for the purpose of
determining stockholders entitled to notice of or to vote at a meeting
of stockholders, such books shall be closed for at least 10 days
immediately preceding such meeting.
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(c) In lieu of closing the stock transfer books, the Board of Directors
may fix in advance a date as the date for any such determination of
stockholders, such date in any case to be not more than 60 days prior
to the date on which the particular action, requiring such
determination of stockholders, is to be taken.
(d) If the stock transfer books are not closed and no record date is fixed
for the determination of stockholders entitled to notice or to vote at
a meeting of stockholders, or to receive payment of a dividend, the
date on which notice of the meeting is mailed or the date on which the
resolution of the Board of Directors declaring such dividend is
adopted, as the case may be, shall be the record date for such
determination of stockholders.
(e) When a determination of stockholders entitled to vote at any meeting
of stockholders has been made as provided in this Section, such
determination shall apply to any adjournment thereof, unless the Board
of Directors fixes a new record date under this Section for the
adjourned meeting.
(f) (1) The officer or agent having charge of the stock transfer books of
the Corporation shall make, as of a date at least 10 days before
each meeting of stockholders, a complete list of the stockholders
entitled to vote at such meeting or any adjournment thereof, with
the address of each stockholder and the number and class and
series, if any, of shares held by each stockholder.
(2) Such list shall be kept on file at the registered office of the
Corporation, at the principal place of business of the
Corporation or at the office of the transfer agent or registrar
of the Corporation for a period of 10 days prior to such meeting
and shall be available for inspection by any stockholder at any
time during usual business hours.
(3) Such list shall also be produced and kept open at the time and
place of any meeting of stockholders and shall be subject to
inspection by any stockholder at any time during the meeting.
(g) The original stock transfer books shall be prima facie evidence as to
the stockholders entitled to examine such list or stock transfer books
or to vote any meeting of stockholders.
(h) If the requirements of Section 5(f) of this Article I have not been
substantially complied with, then, on the demand of any stockholder in
person or by proxy, the meeting shall be adjourned until such
requirements are complied with.
(i) If no demand pursuant to Section 5(h) of this Article I is made,
failure to comply with the requirements of this Section shall not
affect the validity of any action taken at such meeting.
(j) Section 5(g) of this Article I shall be operative only at such time(s)
as the Corporation shall have 6 or more stockholders.
SECTION 6. Quorum
(a) At any meeting of the stockholders of the Corporation, the presence,
in person or by proxy, of stockholders holding a majority of the
issued and outstanding shares of the capital stock of the Corporation
entitled to vote thereat shall be necessary to constitute a quorum for
the transaction of any business.
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(b) If a quorum is present, the vote of a majority of the shares
represented at such meeting and entitled to vote on the subject matter
shall be the act of the stockholders.
(c) If there shall not be a quorum at any meeting of the stockholders of
the Corporation, then the holders of a majority of the shares of the
capital stock of the Corporation who shall be present at such meeting,
in person or by proxy, may adjourn such meeting from time to time
until holders of a quorum of the shares of the capital stock shall
attend.
(d) At any such adjourned meeting at which a quorum shall be present, any
business may be transacted which might have been transacted at the
meeting as originally scheduled.
SECTION 7. Presiding Officer; Order of Business
(a) (1) Meetings of the stockholders shall be presided over by the
Chairman of the Board, or, if he or she is not present or there
is no Chairman of the Board, by the President or, if he or she is
not present, by the senior Vice President present or, if neither
the Chairman of the Board, the President, nor a Vice President is
present, the meeting shall be presided over by a chairman to be
chosen by a plurality of the stockholders entitled to vote at the
meeting who are present, in person or by proxy.
(2) The presiding officer of any meeting of the stockholders may
delegate his or her duties and obligations as the presiding
officer as he or she sees fit.
(b) The Secretary of the Corporation, or, in his or her absence, an
Assistant Secretary shall act as Secretary of every meeting of
stockholders, but if neither the Secretary nor an Assistant Secretary
is present, the presiding officer of the meeting shall choose any
person present to act as secretary of the meeting.
(c) The order of business shall be as follows:
Call of meeting to order.
Proof of notice of meeting.
Reading minutes of last previous stockholders' meeting or a waiver thereof.
Reports of Officers.
Reports of committees.
Election of Directors.
Regular and miscellaneous business.
Special matters.
Adjournment.
(d) (1) Notwithstanding the provisions of Section 7(c) of this Article I,
the order and topics of business to be transacted at any meeting
shall be determined by the presiding officer of the meeting in
his or her sole discretion.
(2) In no event shall any variation in the order of business or
additions and deletions from the order of business as specified
in Section 7(c) of this Article I invalidate any actions properly
taken at any meeting.
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SECTION 8. Voting
(a) Unless otherwise provided for in the Certificate of Incorporation,
each stockholder shall be entitled, at each meeting and upon each
proposal to be voted upon, to one vote for each share of voting stock
recorded in his name on the books of the Corporation on the record
date fixed as provided for in Section 5 of this Article I.
(b) (1) The presiding officer at any meeting of the stockholders shall
have the power to determine the method and means of voting when
any matter is to be voted upon.
(2) The method and means of voting may include, but shall not be
limited to, vote by ballot, vote by hand or vote by voice.
(3) No method of voting may be adopted, however, which fails to take
account of any stockholder`s right to vote by proxy as provided
for in Section 10 of this Article I.
(4) In no event may any method of voting be adopted which would
prejudice the outcome of the vote.
SECTION 9. Action Without Meeting
(a) (1) Any action required to be taken at any annual or special meeting
of stockholders of the Corporation, or any action which may be
taken at any annual or special meeting of such stockholders, may
be taken without a meeting and without a vote, if a consent in
writing, setting forth the action so taken, shall be signed by
the holders of a majority of the Corporation's outstanding voting
stock; provided that, prior to such action the Corporation shall
have filed with the Commission and delivered to the stockholders
an information statement in the form required by Section 14 of
the Exchange Act, unless the Corporation no longer has a class of
securities registered under Section 12 of the Exchange Act.
(2) Such instrument may be executed in counterparts or as a unitary
document.
(b) In the event that the action to which the stockholders consent is such
as would have required the filing of a certificate under the Delaware
General Corporation Law, the effect of such consent shall be as if
such action had been voted on by stockholders at a meeting thereof,
however, the certificate filed under such other section shall state
that written consent has been given in accordance with the provisions
of Section 9 of this Article I.
(c) If the Corporation no longer has a class of securities registered
under Section 12 of the Exchange Act and stockholder action is taken
by written consent in lieu of meeting without prior notice, signed by
less than all of the Corporation's stockholders, then all non
participating stockholders shall be provided with written notice of
the action taken within 10 days after the effective date of the
written instrument taking such action.
(d) No action by written consent in lieu of meeting shall be valid if it
is in contravention of applicable proxy or informational rules adopted
pursuant to the Exchange Act including, without limitation, the
requirements of Section 14 thereof.
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SECTION 10. Proxies
(a) Every stockholder entitled to vote at a meeting of stockholders or to
express consent or dissent without a meeting, or his or her duly
authorized attorney-in-fact, may authorize another person or persons
to act for him or her by proxy.
(b) (1) Every proxy must be signed by the stockholder or his or her
attorney-in-fact.
(2) No proxy shall be valid after the expiration of 11 months from
the date thereof unless otherwise provided in the proxy.
(3) Every proxy shall be revocable at the pleasure of the stockholder
executing it, except as otherwise provided in this Section 10.
(c) The authority of the holder of a proxy to act shall not be revoked by
the incompetence or death of the stockholder who executed the proxy
unless, before the authority is exercised, written notice of any
adjudication of such incompetence or of such death is received by the
corporate officer responsible for maintaining the list of
stockholders.
(d) Except when other provisions shall have been made by written agreement
between the parties, the record holder of shares held as pledges or
otherwise as security or which belong to another, shall issue to the
pledgor or to such owner of such shares, upon demand therefor and
payment of necessary expenses thereof, a proxy to vote or take other
action thereon.
(e) A proxy which states that it is irrevocable is irrevocable when it is
held by any of the following or a nominee of any of the following: (i)
a pledgee; (ii) a person who has purchased or agreed to purchase the
shares: (iii) a creditor or creditors of the Corporation who extend or
continue to extend credit to the Corporation in consideration of the
proxy, if the proxy states that it was given in consideration of such
extension or continuation of credit, the amount thereof, and the name
of the person extending or continuing credit; (iv) a person who has
contracted to perform services as an officer of the Corporation, if a
proxy is required by the contract of employment, if the proxy states
that it was given in consideration of such contract of employment and
states the name of the employee and the period of employment
contracted for; and (v) a person designated by or under an agreement
as provided in Article XI hereof.
(f) (1) Notwithstanding a provision in a proxy stating that it is
irrevocable, the proxy becomes revocable after the pledge is
redeemed, the debt of the Corporation is paid, the period of
employment provided for in the contract of employment has
terminated, or the agreement under Article XI hereof has
terminated and, in a case provided for in Section 10(e) (iii) or
Section 10(e) (iv) of this Article I, becomes revocable three
years after the date of the proxy or at the end of the period, if
any, specified therein, whichever period is less, unless the
period of irrevocability of the proxy as provided in this Section
10.
(2) This Section 10(f) does not affect the duration of a proxy under
Section 10(b) of this Article I.
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(g) A proxy may be revoked, notwithstanding a provision making it
irrevocable, by a purchaser of shares without knowledge of the
existence of the provisions unless the existence of the proxy and its
irrevocability is noted conspicuously on the face or back of the
certificate representing such shares.
(h) (1) If a proxy for the same shares confers authority upon two or more
persons and does not otherwise provide, a majority of such
persons present at the meeting, or if only one is present then
that one, may exercise all the powers conferred by the proxy.
(2) If the proxy holders present at the meeting are equally divided
as to the right and manner of voting in any particular case, the
voting of such shares shall be prorated.
(i) If a proxy expressly so provides, any proxy holder may appoint in
writing a substitute to act in his or her place.
(j) Notwithstanding anything in the Bylaws to the contrary, no proxy shall
be valid if it was obtained in violation of any applicable
requirements of Section 14 of the Exchange Act or the Rules and
Regulations promulgated thereunder.
SECTION 11. Voting of Shares by Stockholders
(a) (1) Shares standing in the name of another corporation, domestic or
foreign, may be voted by the officer, agent, or proxy designated
by the bylaws of the corporate stockholder; or, in the absence of
any applicable bylaw, by such person as the Board of Directors of
the corporate stockholder may designate
(2) Proof of such designation may be made by presentation of a
certified copy of the bylaws or other instrument of the corporate
stockholder.
(3) In the absence of any such designation, or in case of conflicting
designation by the corporate stockholder, the chairman of the
board, president, any vice president, secretary and treasurer of
the corporate stockholder, in that order, shall be presumed to
possess authority to vote such shares.
(b) (1) Shares held by an administrator, executor, guardian or
conservator may be voted by him or her, either in person or by
proxy, without a transfer of such shares into his or her name.
(2) Shares standing in the name of a trustee may be voted as shares
held by him or her without a transfer of such shares into his
name.
(c) (1) Shares standing in the name of a receiver may be voted by such
receiver.
(2) Shares held by or under the control of a receiver but not
standing in the name of such receiver, may be voted by such
receiver without the transfer thereof into his name if authority
to do so is contained in an appropriate order of the court by
which such receiver was appointed.
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(d) A stockholder whose shares are pledged shall be entitled to vote such
shares until the shares have been transferred into the name of the
pledgee.
(e) Shares of the capital stock of the Corporation belonging to the
Corporation or held by it in a fiduciary capacity shall not be voted,
directly or indirectly, at any meeting, and shall not be counted in
determining the total number of outstanding shares.
ARTICLE II
DIRECTORS
SECTION 1. Board of Directors; Exercise of Corporate Powers
(a) (1) All corporate powers shall be exercised by or under the authority
of, and the business and affairs of the Corporation shall be
managed under the direction of, the Board of Directors except as
may be otherwise provided in the Certificate of Incorporation or
in a stockholders' agreement.
(2) If any such provision is made in the Certificate of Incorporation
or in a stockholders' agreement, the powers and duties conferred
or imposed upon the Board of Directors shall be exercised or
performed to such extent and by such person or persons as shall
be provided in the Certificate of Incorporation or stockholders'
agreement.
(b) Directors need not be residents of this state or stockholders of the
Corporation unless the Certificate of Incorporation so requires.
(c) The Board of Directors shall have authority to fix the compensation of
Directors unless otherwise provided in the Certificate of
Incorporation.
(d) A Director shall perform his or her duties as a Director, including
his or her duties as a member of any committee of the Board upon which
he may serve, in good faith, in a manner he or she reasonably believes
to be in the best interests of the Corporation, and with such care as
an ordinarily prudent person in a like position would use under
similar circumstances.
(e) In performing his or her duties, a Director shall be entitled to rely
on information, opinions, reports or statements, including without
limitation, financial statements and other financial data, in each
case prepared or presented by: (i) one or more officers or employees
of the Corporation whom the Director reasonably believes to be
reliable and competent in the matters presented; (ii) legal counsel,
public accountants or other persons as to matters which the Director
reasonably believes to be within such persons' professional or expert
competence; or (iii) a committee of the Board upon which he or she
does not serve, duly designated in accordance with a provision of the
Certificate of Incorporation or these Bylaws, as to matters within its
designated authority, which committee the Director reasonably believes
to merit confidence.
(f) A Director shall not be considered to be acting in good faith if he or
she has knowledge concerning the matter in question that would cause
such reliance described in Section 1(e) of this Article II to be
unwarranted.
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(g) A person who performs his or her duties in compliance with Section 1
of this Article II shall have no liability by reason of being or
having been a Director of the Corporation.
(h) A Director of the Corporation who is present at a meeting of the Board
of Directors at which action on any corporate matter is taken shall be
presumed to have assented to the action taken unless he or she votes
against such action or abstains from voting in respect thereto because
of an asserted conflict of interest.
SECTION 2. Number; Election; Classification of Directors; Vacancies
(a) (1) The Board of Directors of this Corporation shall consist of not
less than one Director.
(2) The Board shall have authority, from time to time, to increase
the number of Directors or to decrease it to not less than one
member, provided that no decrease in the number of Directors
shall deprive a serving Director of the right to serve throughout
the term of his or her election.
(b) Each person named in the Certificate of Incorporation as a member of
the initial Board of Directors shall serve until his or her successor
shall have been elected and qualified or until his or her earlier
resignation, removal from office, or death.
(c) (1) At the first annual meeting of stockholders and at each annual
meeting thereafter, the stockholders shall elect Directors to
hold office until the next succeeding annual meeting, except in
case of the classification of Directors as permitted by the
Delaware General Corporation Law.
(2) Each Director shall hold office for the term for which he or she
is elected and until his or her successor shall have been elected
and qualified or until his or her earlier resignation, removal
from office, or death.
(d) (1) The stockholders, by amendment to these Bylaws, may provide that
the Directors be divided into not more than four classes, as
nearly equal in number as possible, whose terms of office shall
respectively expire at different times, but no such term shall
continue longer than four years, and at least one fourth of the
Directors shall be elected annually.
(2) If Directors are classified and the number of Directors is
thereafter changed, any increase or decrease in Directorship
shall be so apportioned among the classes as to make all classes
as nearly equal in number as possible.
(e) (1) Any vacancy occurring in the Board of Directors, including any
vacancy created by reason of an increase in the number of
Directors, may be filled only by the Board of Directors.
(2) A Director elected to fill a vacancy shall hold office only until
the next election of Directors by the stockholders.
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SECTION 3. Removal of Directors
(a) At a meeting of stockholders called expressly for that purpose, any
Director or the entire Board of Directors may be removed, with or
without cause, by the vote of the holders of 60% of the shares then
entitled to vote at an election of Directors; provided that at least
one Director remains in office or one Director is elected as a
replacement Director concurrently with such removal.
(b) In the event that the number of Directors is reduced below that number
mandated in the Certificate of Incorporation as a result of the
removal of one or more Directors by the stockholders, then the
remaining Directors or the contemporaneously elected replacement
Director will promptly elect replacement Directors, to serve until the
next meeting of the Corporation's stockholders, and until their
replacements have been elected, qualified and assume their office.
SECTION 4. Director Quorum and Voting
(a) A majority of the Directors fixed in the manner provided in these
Bylaws shall constitute a quorum for the transaction of business.
(b) A majority of the members of an Executive Committee or other committee
shall constitute a quorum for the transaction of business at any
meeting of such Executive Committee or other committee.
(c) The act of a majority of the Directors present at a Board meeting at
which a quorum is present shall be the act of the Board of Directors.
(d) The act of a majority of the members of an Executive Committee present
at an Executive Committee meeting at which a quorum is present shall
be the act of the Executive Committee.
(e) The act of a majority of the members of any other committee present at
a committee meeting at which a quorum is present shall be the act of
the committee.
(f) Directors may, if not contrary to applicable law, vote either in
person or by proxy, provided that the proxy holder must be either
another Director, an officer or a stockholder of the Corporation;
however, any Director who elects to vote by proxy more than three
times during any single fiscal year shall, unless otherwise determined
by the Board of Directors, be automatically removed as a Director.
SECTION 5. Director Conflicts of Interest
(a) No contract or other transaction between this Corporation and one or
more of its Directors or any other corporation, firm, association or
entity in which one or more of its Directors are Directors or officers
or are financially interested shall be either void or voidable because
of such relationship or interest or because such Director or Directors
are present at the meeting of the Board of Directors or a committee
thereof which authorizes, approves or ratifies such contract or
transaction or because their votes are counted for such purpose, if:
(i) The fact of such relationship or interest is disclosed or
known to the Board of Directors or committee which authorizes,
approves or ratifies the contract or transaction by a vote or
consent sufficient for the purpose without counting the votes
or consents of such interested Directors; or
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(ii) The fact of such relationship or interest is disclosed or
known to the stockholders entitled to vote and they authorize,
approve or ratify such contract or transaction by vote or
written consent; or
(iii) The contract or transaction is fair and reasonable as to the
Corporation at the time it is authorized by the Board, a
committee, or the stockholders.
(b) Interested Directors, whether or not voting, may be counted in
determining the presence of a quorum at a meeting of the Board of
Directors or a committee thereof which authorizes, approves or
ratifies such contract or transaction.
SECTION 6. Executive and Other Committees; Designation; Authority
(a) The Board of Directors, by resolution adopted by the full Board of
Directors, may designate from among its Directors an Executive
Committee and one or more other committees each of which, to the
extent provided in such resolution or in the Certificate of
Incorporation or these Bylaws, shall have and may exercise all the
authority of the Board of Directors, except that no such committee
shall have the authority to : (i) approve or recommend to stockholders
actions or proposals required by the Delaware General Corporation Law
to be approved by stockholders; (ii) designate candidates for the
office of Director for purposes of proxy solicitation or otherwise;
(iii) fill vacancies on the Board of Directors or any committee
thereof; (iv) amend these Bylaws; (v) authorize or approve the
re-acquisition of shares unless pursuant to a general formula or
method specified by the Board of Directors; or (vi) authorize or
approve the issuance or sale of, or any contract to issue or sell,
shares or designate the terms of a series of a class of shares, unless
the Board of Directors, having acted regarding general authorization
for the issuance or sale of shares, or any contract therefor, and, in
the case of a series, the designation thereof has specified a general
formula or method by resolution or by adoption of a stock option or
other plan, authorized a committee to fix the terms upon which such
shares may be issued or sold, including, without limitation, the
price, the rate or manner of payment of dividends, provisions for
redemption, sinking fund, conversion, and voting or preferential
rights, and provisions for other features of a class of shares, or a
series of a class of shares, with full power in such committee to
adopt any final resolution setting forth all the terms of a series for
filing with the Department of State under the Delaware General
Corporation Law.
(b) The Board, by resolution adopted in accordance with Section 6(a) of
this Article II, may designate one or more Directors as alternate
members of any such committee, who may act in the place and stead of
any absent member or members at any meeting of such committee.
(c) Neither the designation of any such committee, the delegation thereto
of authority, nor action by such committee pursuant to such authority
shall alone constitute compliance by a member of the Board of
Directors, not a member of the committee in question, with his
responsibility to act in good faith, in manner he reasonably believes
to be in the best interests of the Corporation, and with such care as
an ordinarily prudent person in a like position would use under
similar circumstances.
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(d) The Board of Directors shall at every organizational meeting thereof
designate the following committees comprised in each case of a
majority of independent Directors:
(1)An audit committee;
(2)A compensation committee; and
(3)A regulatory compliance committee.
SECTION 7. Place, Time, Notice and Call of Directors' Meeting.
(a) Meetings of the Board of Directors, regular or special, may be held
either within or without the State of Delaware.
(b) (i) A regular meeting of the Board of Directors of the Corporation
shall be held for the election of officers of the Corporation and
for the transaction of such other business as may come before
such meeting as promptly as practicable after the annual meeting
of the stockholders of this Corporation without the necessity of
notice other than this Bylaw.
(ii) Other regular meetings of the Board of Directors of the
Corporation may be held at such places as the Board of Directors
of the Corporation may from time to time resolve without notice
other than such resolution.
(iii) Special meetings of the Board of Directors may be held at any
time upon call of the Chairman of the Board of Directors or a
majority of the Directors of the Corporation, at such time and at
such place as shall be specified in the call thereof.
(iv) (A) Notice of any special meeting of the Board of Directors must
be given at least two days prior thereto, if by written
notice delivered personally; or at least five days prior
thereto, if mailed; or at least two days prior thereto, if
by telegram; or at least two days prior thereto, if by
telephone or E-mail, receipt confirmed.
(B) If such notice is given by mail, such notice shall be deemed
to have been delivered when deposited with the United States
Postal Service addressed to the business address of such
Director with postage thereon prepaid.
(C) If notice be given by telegram, such notice shall be deemed
delivered when the telegram is delivered to the telegraph
company.
(D) If notice is given by telephone (including facsimile
transmission), such notice shall be deemed delivered when
the call is completed.
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(E) If notice is given by E-mail, such notice shall be deemed
delivered when confirmation of receipt is obtained.
(c) (1) Notice of a meeting of the Board of Directors need not be
given to any Director who signs a waiver of notice either
before or after the meeting.
(2) Attendance of a Director at a meeting shall constitute a
waiver of notice of such meeting and waiver of any and all
objections to the place of the meeting, the time of the
meeting, or the manner in which it has been called or
convened, except when a Director states, at the beginning of
the meeting, any objection to the transaction of business
because the meeting is not lawfully called or convened.
(d) Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the Board of Directors need be
specified in the notice or waiver of notice of such meeting.
(e) (1) A majority of the Directors present, whether or not a quorum
exists, may adjourn any meeting of the Board of Directors to
another time and place.
(2) Notice of any such adjourned meeting shall be given to the
Directors who were not present at the time of the
adjournment and, unless the time and place of the adjourned
meeting are announced at the time of the adjournment, to the
other Directors.
(f) (1) Members of the Board of Directors may participate in a
meeting of such Board by means of a conference telephone or
similar communications equipment by means of which all
persons participating in the meeting can communicate with
each other at the same time.
(2) Participation by such means shall constitute presence in
person at a meeting.
SECTION 8. Action by Directors Without a Meeting
(a) (1) Any action required by the Delaware General Corporation Law
to be taken at a meeting of the Directors of the
Corporation, or any action which may be taken at a meeting
of the Directors or a committee thereof, may be taken
without a meeting if a consent in writing, setting forth the
action so to be taken, signed by all of the Directors, or
all of the members of the committee, as the case may be, and
is filed in the minutes of the proceedings of the Board or
of the committee.
(2) Such consent shall have the same effect as a unanimous vote.
(b) If not contrary to applicable law, Directors may take action as
the Board of Directors or committees thereof through a written
consent to action signed by a number of Directors sufficient to
have carried a vote of the Board of Directors or committee
thereof with all members present and voting; provided, that all
Directors not joining in such written instrument shall be deemed
for all purposes to have cast dissenting votes, and that all
Directors not parties to such instrument shall receive written
notice of all action taken through such instrument within three
days after such instrument shall have been subscribed by the
requisite number of Directors required for such action.
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SECTION 9. Compensation
(a) The Directors and members of the Executive and any other committee of
the Board of Directors shall be entitled to such reasonable
compensation for their services and on such basis as shall be fixed
from time to time by resolution of the Board of Directors.
(b) The Board of Directors and members of any committee of that Board of
Directors shall be entitled to reimbursement for any reasonable
expenses incurred in attending any Board or committee meeting.
(c) Any Director receiving compensation under this Section shall not be
prevented from serving the Corporation in any other capacity and shall
not be prohibited from receiving reasonable compensation for such
other services.
SECTION 10. Resignation
(a) Unless he is the sole serving Director, any Director of the
Corporation may resign at any time by providing the Board of Directors
with written notice indicating the Director's intention to resign and
the effective date thereof.
(b) A sole serving Director of the Corporation must, at least concurrently
with his or her resignation, elect one or more successor Director(s)
at least one of whom must assume his or her office concurrently with
the subject resignation, and the resignation shall be effected by
providing the successor Director(s) with written notice indicating the
Director's intention to resign and the effective date thereof.
ARTICLE III
OFFICERS
SECTION 1. Election; Number; Terms of Office
(a) (1) The officers of the Corporation shall consist of a Chairman of
the Board of Directors whose title may be designated as
"Chairman," a Chief Executive officer, a President, a Chief
Operating Officer, a Chief Financial Officer, one or more
Vice-Presidents, a Secretary and a Treasurer, each of whom shall
be elected by the Board of Directors at such time and in such
manner as may be prescribed by these Bylaws.
(2) Such other officers and assistant officers and agents as may be
deemed necessary may be elected or appointed by the Board of
Directors.
(3) The officers of the Corporation shall be hereinafter collectively
referred to as the "Officers."
(b) All Officers and agents, as between themselves and the Corporation,
shall have such authority and perform such duties in the management of
the Corporation as are provided in these Bylaws, or as may be
determined by resolution of the Board of Directors not inconsistent
with these Bylaws.
(c) Any two or more offices may be held by the same person, except for the
offices of President and Secretary.
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(d) A failure to elect a Chairman of the Board, Chief Executive Officer,
President, Chief Operating Officer, Chief Financial Officer, a Vice
President, a Secretary or a Treasurer shall not affect the existence
of the Corporation.
SECTION 2. Removal
(a) An Officer of the Corporation shall hold office until the election and
qualification of his successor; however, any Officer of the
Corporation may be removed from office by the Board of Directors
whenever in its judgment the best interests of the Corporation will be
served thereby.
(b) Such removal shall be without prejudice to the contract rights, if
any, of the person so removed.
(c) Election or appointment of an officer shall not of itself create any
contract right to employment or compensation or create an employer -
employee relationship.
SECTION 3. Vacancies
Any vacancy in any office from any cause may be filled for the
unexpired portion of the term of such office by the Board of Directors.
SECTION 4. Powers and duties
(a) (1) The Chairman of the Board of Directors shall preside over
meetings of the Board of Directors and the stockholders.
(2) Unless a separate Chief Executive Officer is elected, the
Chairman shall exercise the powers hereafter granted to that
office.
(3) Unless a Chairman of the Board is specifically elected, the
President shall be deemed to be the Chairman of the Board.
(b) (1) The Chief Executive Officer shall be the principal Officer of the
Corporation to whom all other Officers shall be subordinate.
(2) In the event no Chief Executive Officer is separately elected,
such office shall be assumed by the Chairman of the Board, and if
no such office has been filled, by the President.
(3) Except where by law the signature of the President is required or
unless the Board of Directors shall rule otherwise, the Chief
Executive Officer shall possess the same power as the President
to sign all certificates, contracts and other instruments of the
Corporation which may be authorized by the Board of Directors.
(c) (1) The Chief Operating Officer of the Corporation shall be
responsible for management of the day to day affairs of the
Corporation, subject to compliance with the directions of the
Board of Directors and of the Chief Executive Officer.
(2) He shall be responsible for the general day-to-day supervision of
the business and affairs of the Corporation.
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(3) He shall sign or countersign all certificates, contracts or other
instruments of the Corporation, as authorized by the Board of
Directors or as assigned by the Chief Executive Officer.
(4) He may, but need not, be a member of the Board of Directors.
(5) Unless otherwise provided by specific resolution of the Board of
Directors, the President shall be the Chief Operating Officer of
the Corporation.
(d) (1) In the absence of a separately elected or available Chief
Executive Officer or Chairman of the Board, the President shall
be the Chief Executive Officer of the Corporation and shall
preside at all meetings of the stockholders and the Board of
Directors.
(2) The Board of Directors will at all times retain the power to
expressly delegate the duties of the President to any other
Officer of the Corporation.
(e) (1) The Chief Financial Officer shall be responsible for coordinating
all financial aspects of the Corporation's operations, including
strategic financial planning, supervision of the Corporation's
Treasurer, Comptroller and outside auditors.
(2) In the event an Audit Committee of the Board of Directors is
designated and serving, he shall be responsible for keeping such
committee fully and timely informed of all matters under its
jurisdiction.
(3) The Chief Financial Officer shall, unless otherwise specifically
provided by the Board of Directors, serve as the Corporation's
principal compliance officer and shall be responsible for
overseeing preparation and filing of all reports of the
Corporation's activities required to be filed, either
periodically or on a special basis with the United States
Internal Revenue Service, the Securities and Exchange Commission
and with other federal, state or local governmental agencies.
(f) (1) The Vice President(s), if any, in the order designated by the
Board of Directors, shall exercise the functions of the President
in the event of the absence, disability, death, or refusal to act
of the President.
(2) During the time that any Vice President is properly exercising
the functions of the President, such Vice President shall have
all the powers of and be subject to all restrictions upon the
President.
(3) Each Vice President shall have such other duties as are assigned
to him from time to time by the Board of Directors or by the
President of the Corporation and shall be subject to such
specializing designations (e.g., "senior," executive," etc.) as
the Board of Directors may select.
(g) (1) The Secretary of the Corporation shall keep the minutes of
the meetings of the stockholders of the Corporation, and,
unless provided otherwise by the Chairman at any meeting of
the Board of Directors, the Secretary shall keep the minutes
of the meetings of the Board of Directors of the
Corporation.
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(2) The Secretary shall be the custodian of the minute books of
the Corporation and such other books and records of the
Corporation as the Board of Directors of the Corporation may
direct.
(3) The Secretary of the Corporation shall have the general
responsibility for maintaining the stock transfer books of
the Corporation, or of supervising the maintenance of the
stock transfer books of the Corporation by the transfer
agent, if any, of the Corporation.
(4) The Secretary shall be the custodian of the corporate seal
of the Corporation and shall affix the corporate seal of the
Corporation on contracts and other instruments as the Board
of Directors may direct.
(5) The Secretary shall perform such other duties as are
assigned from time by the Board of Directors, the Chief
Executive Officer, the Chairman, the Chief Operating Officer
or the President of the Corporation.
(h) (1) The Treasurer of the Corporation shall be directly subordinate to
the Chief Financial Officer.
(2) In the absence of a Chief Financial Officer, such office shall be
filled by the Treasurer.
(3) Unless otherwise specified by the Board of Directors, the
Treasurer shall have custody of all funds and securities owned by
the Corporation.
(4) The Treasurer shall cause to be entered regularly in the proper
books of account of the Corporation full and accurate accounts of
the receipts and disbursements of the Corporation.
(5) The Treasurer of the Corporation shall render a statement of the
cash, financial and other accounts of the Corporation whenever he
is directed to render such a statement by the Board of Directors
or by the President of the Corporation.
(6) The Treasurer shall at all reasonable times make available the
Corporation's books and financial accounts to any Director of the
Corporation during normal business hours.
(7) The Treasurer shall perform all other acts incident to the Office
of Treasurer of the Corporation, and he shall have such other
duties as are assigned to him from time to time by the Board of
Directors, the Chief Executive Officer, the Chairman, the Chief
Operating Officer or the President of the Corporation.
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(i) (1) The Corporation's Board of Directors shall designate a person
licensed to practice law in one of the states comprising the
United States as the Corporation's General Counsel and Chief
Legal Officer;
(2) The Corporation's General Counsel and Chief Legal Officer shall
coordinate the Corporation's legal affairs under the directions
of the Board of Directors and in coordination with the Chief
Executive Officer, to whom he or she shall report;
(3) The Board of Directors may appoint such subordinate legal
officers and assign them such functions as it may deem
appropriate.
(j) Other subordinate or assistant Officers appointed by the Board of
Directors or by the Chief Executive Officer, the Chairman, the Chief
Operating Officer or the President, if such authority is delegated to
them by the Board of Directors, shall exercise such powers and perform
such duties as may be delegated to them by the Board of Directors, the
Chief Executive Officer, the Chief Operating Officer or by the
President, as the case may be.
(k) In case of the absence or disability of any Officer of the Corporation
and of any person authorized to act in his place during such period of
absence or disability, the Board of Directors may from time to time
delegate the powers and duties of such Officer or any Director or any
other person whom it may select.
SECTION 5. Salaries
(a) The salaries of all Officers of the Corporation shall, except as
otherwise determined or required by an agreement entered into among
all the stockholders of the Corporation, be fixed by the Board of
Directors.
(b) No Officer shall be ineligible to receive such salary by reason of the
fact that he is also a Director of the Corporation and receiving
compensation therefor.
ARTICLE IV
LOANS TO EMPLOYEES AND OFFICERS;
GUARANTEE OF OBLIGATIONS OF EMPLOYEES AND OFFICERS
(a) This Corporation may lend money to, guarantee any obligation of, or
otherwise assist any Officer or other employee of the Corporation or
of a subsidiary, including any Officer or employee who is a Director
of the Corporation or of a subsidiary, whenever, in the judgment of
the Directors, such loan, guarantee or assistance may reasonably be
expected to benefit the Corporation.
(b) The loan, guarantee or other assistance may be with or without
interest, and may be unsecured, or secured in such manner as the Board
of Directors shall approve including, without limitation, a pledge of
shares of stock of the Corporation.
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(c) Nothing in this Article shall be deemed to deny, limit or restrict the
powers of guarantee or warranty of this Corporation at common law or
under any statute.
ARTICLE V
STOCK CERTIFICATES; VOTING TRUSTS; TRANSFERS
SECTION 1. Certificates Representing Shares
(a) (1) Every holder of shares of this Corporation shall be entitled to
one or more certificates, representing all shares to which he is
entitled and such certificates shall be signed by the Chairman,
Chief Executive Officer, Chief Operating Officer, the President
or a Vice President and the Secretary or an Assistant Secretary
of the Corporation and may be sealed with the seal of the
Corporation or a facsimile thereof.
(2) The signatures of the Chairman, the Chief Executive Officer, the
Chief Operating Officer, the President or Vice President and the
Secretary or Assistant Secretary may be facsimiles if the
certificate is manually signed on behalf of a transfer agent or a
registrar other than the Corporation itself or an employee of the
Corporation.
(3) In case any Officer who signed or whose facsimile signature has
been placed upon such certificate shall have ceased to be such
Officer before such certificate is issued, it may be issued by
the Corporation with the same effect as if it were executed by
the appropriate Officer at the date of its issuance.
(b) Every certificate representing shares issued by this Corporation
shall, if shares are divided into one or more classes or series with
differing rights, state that the Corporation will furnish to any
stockholder upon request and without charge a full statement of: (i)
the designations, preferences, limitations, and relative rights of the
shares of each class or series authorized to be issued, and (ii) the
variations in the relative rights and preferences between the shares
of each such series, if the Corporation is authorized to issue any
preferred or special class in series and so far as the same have been
fixed and determined, and the authority of the Board of Directors to
fix and determine, the relative rights and preferences of subsequent
series.
(c) Every certificate representing shares which are restricted as to sale,
disposition or other transfer (including restrictions based on federal
or state securities and other laws) shall state that such shares are
restricted as to transfer and shall set forth or fairly summarize upon
the certificate, or shall state that the Corporation will furnish to
any stockholder upon request and without charge a full statement of,
such restrictions.
(d) Each certificate representing shares shall state upon the face
thereof:
(i) the name of the Corporation;
(ii) that the Corporation is organized under the laws of the State of
Delaware;
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(iii) the name of the person or persons to whom issued;
(iv) the number and class of shares, and the designation of the
series, if any, which such certificate represents; and
(v) the par value of each share represented by such certificate, or a
statement that the shares are without par value.
(e) No certificate shall be issued for any shares until they are fully
paid for and in the event that a certificate is erroneously issued or
compensation paid is subsequently discovered to be other than as
represented (e.g., dishonored checks, securities of a corporation
acquired in a reorganization where the representations and warranties
provided prove to be materially false, etc.), then the Board of
Directors shall promulgate a certified resolution detailing the nature
of the misrepresented consideration, and shall submit such certified
resolution to the person responsible for recording and effecting
transactions in the Corporation's securities; whereupon such
securities will be restricted from transfer and treated as no longer
outstanding for all purposes unless the Corporation becomes subject to
a judgment of a court of competent jurisdiction providing otherwise.
SECTION 2. Transfer Books
(a) The Corporation shall keep at its registered office or principal place
of business or in the office of its transfer agent or registrar, a
book (or books where more than one kind, class, or series of stock is
outstanding) to be known as the Stock Book, containing the names,
alphabetically arranged, addresses and Social Security numbers of
every stockholder and the number of shares each kind, class or series
of stock held of record.
(b) Where the Stock Book is kept in the office of the transfer agent, the
Corporation shall keep at its principal office copies of the stock
lists prepared from said Stock Book and sent to it from time to time
(but not less frequently than every month) by said transfer agent.
(c) The Stock Book or stock lists shall show the current status of the
ownership of shares of the Corporation provided that, if the transfer
agent of the Corporation be located elsewhere, a reasonable time shall
be allowed for transit or mail.
SECTION 3. Transfer of Shares
(a) The name(s) and address(es) of the person(s) to whom shares of stock
of this Corporation are issued, shall be entered on the Stock Transfer
Books of the Corporation, with the number of shares and date of issue.
(b) (1) Transfer of shares of the Corporation shall be made on the Stock
Transfer Books of the Corporation by the Secretary or the
transfer agent, subject to compliance with any restrictions
specified on such certificate, only when the holder of record
thereof or the legal representative of such holder of record or
the attorney-in-fact of such holder of record, authorized by
power of attorney duly executed and filed with the Secretary or
transfer agent of the Corporation, shall surrender the
Certificate representing such shares for cancellation.
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(2) Lost, destroyed or stolen Stock Certificates shall be replaced
pursuant to Section 5 of this Article V.
(c) The person or persons in whose names shares stand on the books of the
Corporation shall be deemed by the Corporation to be the owner of such
shares for all purposes, except as otherwise provided pursuant to
Sections 10 and 11 of Article I, or Section 4 of Article V.
(d) Shares of the Corporation's capital stock shall be freely transferable
without required Board of Directors' consent, unless such shares are
subject to transfer restrictions under Securities and Exchange
Commission Rule 144 or a consent requirement has been imposed pursuant
to a binding written contract subscribed to by the holder or his or
her predecessor in interest.
(e) (1) All transactions in securities subject to any restrictions
imposed under Securities and Exchange Commission Rule 144
("restricted securities" and "Rule 144," respectively) shall, as
a condition to transfer, require the following documentation, to
be reviewed and approved by legal counsel to the Corporation:
(A) An affidavit from the holder (the "Holder") providing
details concerning acquisition of the subject shares;
providing evidence of the date when consideration for the
shares was paid in full; detailing all transactions in the
Corporation's securities during the immediately preceding 90
days; affirming a present intent to dispose of the subject
securities; affirming that a Form 144 has been filed with
the Securities and Exchange Commission covering the proposed
transaction (and providing a copy thereof); affirming
compliance with any reporting obligations under Sections
13(d), 13(g) or 16(b) of the Exchange Act and providing such
other facts or representations as legal counsel to the
Corporation may reasonably require;
(B) A written confirmation by the Corporation's transfer agent
based on records available thereto of all transactions in
the Corporation's securities by the Holder and anyone with
whom the holder is required to aggregate sales or securities
holdings for purposes of Rule 144, as well as confirmation
of the percentage of outstanding securities of the
Corporation held of record by the Holder and anyone with
whom the holder is required to aggregate sales or securities
holdings for purposes of Rule 144;
(C) Except as provided below, a written confirmation from the
broker through whom the Holder is effecting the proposed
transaction verifying that the transaction will be effected
in full compliance with Rule 144; and
(D) A legal opinion from counsel to the Holder (who may not also
be the counsel to the Corporation) specifically addressing
all aspects of Rule 144 and detailing the manner in which
they are being complied with or the reasons that they are
not applicable.
(2) Transactions in restricted securities that are not being effected
in reliance on Rule 144 shall require, as a condition to
transfer, the following documentation, to be reviewed and
approved by legal counsel to the Corporation:
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(A) An affidavit from the holder (the "Holder") providing
details concerning acquisition of the subject shares;
providing evidence of the date when consideration for the
shares was paid in full; the identity and qualifications of
the person to whom the securities are being transferred; the
manner in which such person has been provided with required
information concerning the Corporation; affirming compliance
with any reporting obligations under Sections 13(d), 13(g)
or 16(b) of the Exchange Act and providing such other facts
or representations as legal counsel to the Corporation may
reasonably require;
(B) A legal opinion from counsel to the Holder (who may not also
be the counsel to the Corporation) addressed to the
Corporation in a manner creating enforceable privity between
such legal counsel and the Corporation, specifically
addressing all aspects of the exemptions relied on to effect
the proposed transaction without registration under
applicable federal and state securities laws and
regulations, and detailing the manner in which they are
being complied with or the reasons that they are not
applicable.
(3) No transactions in the Corporation's restricted securities
failing to materially comply with the foregoing requirements will
be honored, nor will any holding period required under Rule 144
be deemed to commence until all such requirements are materially
complied with (material compliance to be determined in the sole
discretion of the Corporation's Board of Directors).
SECTION 4. Voting Trusts
(a) (1) Any number of stockholders of the Corporation may create a voting
trust for the purpose of conferring upon a trustee or trustees
the right to vote or otherwise represent their shares, for a
period not to exceed ten years, by: (i) entering into a written
voting trust agreement specifying the terms and conditions of the
voting trust; (ii) depositing a counterpart of the agreement with
the Corporation at its registered office; and (iii) transferring
their shares to such trustee or trustees for the purposes of this
Agreement.
(2) Prior to the recording of the agreement, the stockholder
concerned shall render the stock certificate(s) described therein
to the Corporate Secretary who shall note on each certificate:
"This Certificate is subject to the provisions of a voting trust
agreement dated ..........., recorded in Minute Book
............, of the Corporation.
(b) (1) Upon the transfer of such shares, voting trust certificates shall
be issued by the trustee or trustees to the stockholders who
transfer their shares in trust.
(2) Such trustee or trustees shall keep a record of the holders of
voting trust certificates evidencing a beneficial interest in the
voting trust, giving the names and addresses of all such holders
and the number and class or the shares in respect of which the
voting trust certificates held by each are issued, and shall
deposit a copy of such record with the Corporation at its
registered office.
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(c) The counterpart of the voting trust agreement and the copy of such
record so deposited with the Corporation shall be subject to the same
right of examination by a stockholder of the Corporation, in person or
by agent or attorney, as are the books and records of the Corporation,
and such counterpart and such copy of such record shall be subject to
examination by any holder of record of voting trust certificates
either in person or by agent or attorney, at any reasonable time for
any proper purpose.
(d) (1) At any time before the expiration of a voting trust agreement as
originally fixed or as extended one or more times under this
Section 4(d), one or more holders of voting trust certificates
may, by agreement in writing, extend the duration of such voting
trust agreement, nominating the same or substitute trustees, for
an additional period not exceeding 10 years.
(2) Such extension agreement shall not affect the rights or
obligations or persons not parties to the agreement, and such
persons shall be entitled to remove their shares from the trust
and promptly to have their stock certificates reissued upon the
expiration of the original term of the voting trust agreement.
(3) The extension agreement shall in every respect comply with and be
subject to all the provisions of this Section 4, applicable to
the original voting trust agreement except that the 10 year
maximum period of duration shall commence on the date of adoption
of the extension agreement.
(e) The trustees under the terms of the agreements entered into under the
provisions of this Section 4, shall not acquire the legal title to the
shares but shall be vested only with the legal right and title to the
voting power which is incident to the ownership of the shares.
(f) Notwithstanding generally applicable prohibitions against a
corporation's voting of treasury stock, if the Corporation is the
trustee under a voting trust, it shall have full authority to vote
such shares in accordance with the terms of the voting trust
agreement, even if such agreement vests absolute and unfettered voting
discretion in the trustee and notwithstanding that the voting trust
was created at the prompting or direction of the Corporation, its
officers or Directors.
SECTION 5. Lost, Destroyed, or Stolen Certificates
No Certificate representing shares of stock in the Corporation shall be
issued in place of any Certificate alleged to have been lost, destroyed, or
stolen except on production of evidence, satisfactory to the Board of Directors,
of such loss, destruction or theft, and, if the Board of Directors so requires,
upon the furnishing of an indemnity bond in such amount (but not to exceed twice
the fair market value of the shares represented by the Certificate) and with
such terms and with such surety as the Board of Directors may, in its
discretion, require.
ARTICLE VI
BOOKS AND RECORDS
(a) The Corporation shall keep correct and complete books and records of
account and shall keep minutes of the proceedings of its stockholders,
Board of Directors and committees of Directors.
(b) Any books, records and minutes may be in written form or in any other form
capable of being converted into written form within a reasonable time.
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(c) Any person who shall have been a holder of record of shares, or the holder
of record of voting trust certificates for, at least five percent of the
outstanding shares of any class or series of the Corporation, upon written
demand stating the purpose thereof, shall; subject to the qualifications
contained in subsection (d) hereof, have the right to examine, in person or
by agent or attorney, at any reasonable time or times, for any purpose, its
relevant books and records of account, minutes and records of stockholders
and to make extracts therefrom.
(d) (1) No stockholder who within two years has sold or offered for sale any
list of stockholders or of holders of voting trust certificates for
shares of this Corporation or any other corporation; has aided or
abetted any person in procuring any list of stockholders or of holders
of voting trust certificates for any such purpose; or has improperly
used any information secured through any prior examination of the
books and records of account, minutes, or record of stockholders or of
holders of voting trust certificates for shares of the Corporation of
any other corporation; shall be entitled to examine the documents and
records of the Corporation as provided in Section (c) of this Article
VI.
(2) No stockholder who does not act in good faith or for a proper purpose
in making his demand shall be entitled to examine the documents and
records of the Corporation as provided in Section (c) of this Article
VI.
(e) Unless modified by resolution of the stockholders, this Corporation shall
prepare not later than 90 days after the close of each fiscal year, audited
financial statements, including all required schedules, prepared in
accordance with Generally Accepted Accounting Principals ("GAAP")
consistently applied; and shall prepare not later than 45 days after the
close of each fiscal quarter (other than the fourth quarter), quarterly
unaudited financial statements, including all required schedules, prepared
in accordance with Generally Accepted Accounting Principals ("GAAP").
(f) Upon the written request of any stockholder or holder of voting trust
certificates for shares of the Corporation, the Corporation shall mail to
such stockholder or holder of voting trust certificates a copy of its most
recent balance sheet and profit and loss statement.
(g) Such financial statements shall be filed and kept for at least five years
in the registered office of the Corporation in the State of Delaware and
shall be subject to inspection during business hours by any stockholder or
holder of voting trust certificates, in person or by agent.
ARTICLE VII
DIVIDENDS
The Board of Directors of the Corporation may, from time to time, declare,
and the Corporation may pay dividends on its own shares, except when the
Corporation is insolvent or when the payment thereof would render the
Corporation insolvent, subject to the following provisions:
(a) Dividends in cash or property may be declared and paid, except as otherwise
provided in this Article VII, only out of the unreserved and unrestricted
earned surplus of the Corporation or out of capital surplus, however
arising, but each dividend paid out of capital surplus shall be identified
as a distribution of capital surplus, and the amount per share paid from
such capital surplus shall be disclosed to the stockholders receiving the
same concurrently with the distribution.
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(b) If the Corporation shall engage in the business of exploiting natural
resources or other wasting assets and if the Certificate so provides,
dividends may be declared and paid in cash out of depletion or similar
reserves, but each such dividend shall be identified as distribution of
such reserves and the amount per share paid from such reserves shall be
disclosed to the stockholders receiving the same concurrently with the
distribution thereof.
(c) Dividends may be declared and paid in the Corporation's treasury shares.
(d) Dividends may be declared and paid in the Corporation's authorized but
unissued shares, out of any unreserved and unrestricted surplus of the
Corporation, upon the following conditions:
(i) If a dividend is payable in the Corporations' own shares having a par
value, such shares shall be issued at not less than the par value
thereof and there shall be transferred to stated capital at the time
such dividend is paid an amount of surplus equal to the aggregate par
value of the shares to be issued as a dividend.
(ii) If a dividend is payable in the Corporations' own shares without par
value, such shares shall be issued at a stated value fixed by the
Board of Directors by resolution adopted at the time such dividend is
declared, and there shall be transferred to stated capital at the time
such dividend is paid an amount of surplus equal to the aggregate
stated value so fixed and the amount per share so transferred to
stated capital shall be disclosed to the stockholders receiving such
dividend concurrently with the payment thereof.
(e) No dividend payable in shares of any class shall be paid to the holders of
shares of any other class unless the Certificate of Incorporation so
provides or such payment is authorized by the affirmative vote or the
written consent of the holders of at least a majority of the outstanding
shares of the class to which the payment is to be made.
(f) A split or division of the issued shares of any class into a greater number
of shares of the same class without increasing the stated capital of the
Corporation shall not be construed to be a stock dividend within the
meaning of this Article VII.
ARTICLE VIII
SEAL
The Board of Directors shall adopt a Corporate Seal which shall be circular
in form and shall have inscribed thereon the name of the Corporation, the state
of incorporation and the year of incorporation.
ARTICLE IX
INDEMNIFICATION
This Corporation shall indemnify its officers, Directors and authorized
agents for all liabilities incurred directly, indirectly or incidentally to
services performed for the Corporation, to the fullest extent permitted under
Delaware law existing now or hereinafter enacted.
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ARTICLE X
AMENDMENT OF BYLAWS
The Board of Directors shall have the power to amend, alter, or repeal
these Bylaws, and to adopt new Bylaws.
ARTICLE XI
FISCAL YEAR
The fiscal year of this Corporation shall be determined by the Board of
Directors.
ARTICLE XII
MEDICAL REIMBURSEMENT
SECTION 1. Benefits
(a) The Corporation may, subject to approval of the Board of Directors
reimburse all employees for expenses incurred by themselves and their
dependents, as defined in Section 152 of the Internal Revenue Code of 1986,
as amended (the "IRC"), for medical care, as defined in IRC Section 213(e)
or any successor section thereto, subject to the conditions and limitations
hereinafter set forth.
(b) It is the intention of the Corporation that the benefits payable to
employees hereunder will be excluded from their gross income pursuant IRC
Section 105 or any successor section thereto.
SECTION 2. Employees Defined
The term "employees" as used in this medical expense plan is hereby defined
to include all individuals employed by the corporation except the following:
(a) Employees who have not completed three months of service as is provided in
IRC Section 105(h)(3) (b)(i), or any successor section thereto;
(b) Employees who have not attained the age of 25 years;
(c) Employees who are part-time or seasonal as is defined in IRC Section
105(h)(3)(B)(iii) or any successor section thereto;
(d) Employees who are included in a unit of employees covered by an agreement
between employee representatives and one or more employers found to be a
collective bargaining agreement; where accident and health benefits were
the subject of good faith bargaining between such employee representatives
and such employer(s) as is defined in IRC Section 105(h)(3)(B)(iv) or any
successor section thereto;
(e) Employees who are nonresident aliens and who receive no earned income from
the employer which constitutes income from sources within the United States
as is further defined in IRC Section 105(h)(5)(B)(v) or any successor
section thereto.
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SECTION 3. Limitations
(a) The Corporation will reimburse any employee no more than $5,000.00 in any
fiscal year for medical care expenses;
(b) Reimbursement or payment provided under this plan will be made by the
Corporation only in the event and to the extent that such reimbursement or
payment is not provided under any insurance policy(ies), whether owned by
the Corporation or the employee, or under any other health and accident or
wage continuation plan;
(c) In the event that there is such an insurance policy or plan in effect
providing for reimbursement in whole or in part, then to the extent of the
coverage under such policy or plan, the Corporation will be relieved of any
and all liability hereunder.
SECTION 4. Submission of Proof
(a) Any employee applying for reimbursement under this plan will submit to the
Corporation, at least quarterly, all bills for medical care, including
premium notices for accident or health insurance, for verification by the
Corporation prior to payment.
(b) Failure to comply herewith, may at the discretion of the Board of
Directors, terminate such employee's right to said reimbursement.
SECTION 5. Discontinuation
This plan will be subject to termination at any time by vote of the Board
of Directors; provided, however, that medical care expenses incurred prior to
such termination will be reimbursed or paid in accordance with the terms of this
plan.
SECTION 6. Determination
(a) The Chief Executive Officer will determine all questions arising from the
administration and interpretation of the Plan except where reimbursement is
claimed by the Chief Executive Officer.
(b) Where reimbursement is claimed by the Chief Executive Officer determination
will be made by the Board of Directors.
The Undersigned, being the duly elected and acting Secretary of the
Corporation, hereby certifies that the foregoing constitute the validly adopted
and true Bylaws of the Corporation, as of the date set forth below.
Dated: December 14th 1999
/s/ Vanessa H. Lindsey
------------------------
Vanessa H. Lindsey
Secretary
(Corporate Seal)
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