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Exhibit 3.2
BYLAWS
OF
AMERICAN SHARED HOSPITAL SERVICES
(a California corporation)
Amended and Restated
as of May 21, 1999
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TABLE OF CONTENTS
Page
ARTICLE I - Applicability 1
Section 1. Applicability of By-laws. 1
ARTICLE II - Offices
Section 1. Principal Offices. 1
Section 2. Change in Location or Number of Offices. 1
ARTICLE III - Meetings of Shareholders 1
Section 1. Place of Meetings. 1
Section 2. Annual Meetings. 1
Section 3. Special Meetings. 3
Section 4. Notice of Annual, Special or Adjourned 3
Meetings.
Section 5. Record Date. 6
Section 6. Quorum. 7
Section 7. Adjournment. 7
Section 8. Validation of Action Taken at Defectively 7
Called, Noticed or Held Meetings.
Section 9. Voting for Election of Directors. 7
Section 10. Proxies. 8
Section 11. Inspectors of Election. 9
Section 12. Action by Written Consent. 9
ARTICLE IV - Directors 10
Section 1. Number of Directors. 10
Section 2. Election of Directors. 11
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Section 3. Term of Office. 11
Section 4. Vacancies. 11
Section 5. Removal. 12
Section 6. Resignation. 12
Section 7. Fees and Compensation. 12
ARTICLE V - Committees of the Board of Directors. 13
Section 1. Designation of Committees. 13
Section 2. Powers of Committees. 13
ARTICLE VI - Meetings of the Board of Directors and 13
Committees Thereof.
Section 1. Place of Meetings. 13
Section 2. Organization Meeting. 14
Section 3. Other Regular Meetings. 14
Section 4. Special Meetings. 14
Section 5. Notice of Special Meetings. 14
Section 6. Waivers, Consents and Approvals. 14
Section 7. Quorum; Action at Meetings; Telephone 15
Meetings
Section 8. Adjournment. 15
Section 9. Action Without a Meeting. 15
Section 10. Meetings of and Action by Committees. 15
ARTICLE VII - Officers 15
Section 1. Officers. 15
Section 2. Election of Officers. 16
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Section 3. Subordinate Officers, Etc. 16
Section 4. Removal and Resignation. 16
Section 5. Vacancies. 16
Section 6. Chairman of the Board. 16
Section 7. President. 17
Section 8. Vice President. 17
Section 9. Secretary. 17
Section 10. Chief Financial Officer. 17
ARTICLE VIII - Records and Reports 18
Section 1. Minute Book. 18
Section 2. Share Register. 18
Section 3. Books and Records of Account. 18
Section 4. By-laws. 18
Section 5. Inspection of Records. 19
Section 6. Annual Report to Shareholders. 19
ARTICLE IX - Miscellaneous 19
Section 1. Checks, Drafts, Etc. 19
Section 2. Contracts, Etc. - How Executed. 19
Section 3. Certificates of Stock. 19
Section 4. Lost Certificates. 20
Section 5. Representation of Shares of Other 20
Corporations.
Section 6. Construction and Definitions. 20
Section 7. Mandatory Indemnification of Directors 20
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Section 8. Permissive Indemnification. 21
Section 9. Payment of Expenses in Advance. 21
Section 10. Indemnity Not Exclusive. 21
Section 11. Insurance Indemnification. 22
Section 12. Conflicts. 22
ARTICLE X - Amendments 22
Section 1. Amendments. 22
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BYLAWS
OF
AMERICAN SHARED HOSPITAL SERVICES
(a California corporation)
ARTICLE I
Applicability
Section 1. Applicability of By-laws. These By-laws govern, except as
otherwise provided by statute or its Articles of Incorporation, the management
of the business and the conduct of the affairs of the Corporation.
ARTICLE II
Offices
Section 1. Principal Offices. The Board of Directors shall fix the
location of the principal executive office of the Corporation at any place
within or outside the State of California. If the principal executive office is
located outside this state, and the Corporation has one or more business offices
in this state, the Board of Directors shall designate a principal business
office in the State of California.
Section 2. Change in Location or Number of Offices. The Board of
Directors may change any office from one location to another or eliminate any
office or offices.
ARTICLE III
Meetings of Shareholders
Section 1. Place of Meetings. Meetings of the shareholders shall be held
at any place within or without the State of California designated by the Board
of Directors, or, in the absence of such designation, at the principal executive
office of the Corporation.
Section 2. Annual Meetings. (a) An annual meeting of the shareholders
shall be held within 180 days following the end of the fiscal year of the
Corporation at a date and time designated by the Board of Directors. Directors
shall be elected at each
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annual meeting and any other proper business may be transacted thereat.
(b) Only persons who are nominated in accordance with the procedures set
forth in this paragraph (b) shall be eligible for election as directors of the
Corporation. Nominations of persons for election to the Board of Directors may
be made at a meeting of shareholders by the Board of Directors or by any
stockholder of the Corporation entitled to vote in the election of directors at
the meeting who complies with the notice procedures set forth in this paragraph
(b). Any nomination by a stockholder must be made by written notice to the
Secretary delivered or mailed to and received at the principal executive offices
of the Corporation (i) not less than 60 days nor more than 90 days prior to the
meeting, or (ii) if less than 70 days' notice of the meeting or prior public
disclosure of the date of the meeting is given or made to shareholders, not
later than the close of business on the tenth day following the day on which the
notice of the meeting was mailed, or, if earlier, the day on which such public
disclosure was made. A shareholders' notice to the Secretary shall set forth (x)
as to each person whom the stockholder proposes to nominate for election or
re-election as a director: (a) the name, age, business address and residence
address of such person, (2) the principal occupation or employment of such
person, (3) the class and number of shares of stock of the Corporation which are
beneficially owned by such person (for the purposes of the regulations under
Sections 13 and 14 of the Securities Exchange Act of 1934, as amended), and (4)
any other information relating to such person that would be required to be
disclosed in solicitations of proxies for the election of such person as a
director of the Corporation pursuant to Regulation 14A under the Securities and
Exchange Act of 1934, as amended, and such person's written consent to being
named in any proxy statement as a nominee and to serving as a director if
elected; and (y) as to the stockholder giving notice (5) the name and address,
as they appear on the Corporation's records, of such stockholder and (6) the
class and number of shares of stock of the Corporation which are beneficially
owned by such stockholder (determined as provided in clause (x) (3) above). At
the request of the Board of Directors any person nominated by the Board of
Directors for election as a director shall furnish to the Secretary that
information required to be set forth in a stockholder's notice of nomination
which pertains to the nominee. The chairman of the meeting at which a
stockholder nomination is presented shall, if the facts warrant, determine and
declare to the meeting that such nomination was not made in accordance with the
procedures prescribed by this
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paragraph (b), and, in such event, the defective nomination shall be
disregarded.
Section 3. Special Meetings. (a) Special meetings of the shareholders
may be called by the Board of Directors, the Chairman of the Board and the
President, or by the shareholders upon the request of the holders of shares
entitled to cast not less than 10 percent of the votes at such meeting.
(b) Any request for the calling of a special meeting of the shareholders
shall (1) be in writing, (2) specify the date and time thereof, which date shall
be not less than 35 nor more than 60 days after receipt of the request, (3)
specify the general nature of the business to be transacted thereat in
accordance with Section 4(f) below and (4) be given either personally or by
first class mail, postage prepaid, or other means of written communication to
the Chairman of the Board, President, any Vice President or Secretary of the
Corporation. The officer receiving a proper request to call a special meeting of
the shareholders shall cause notice to be given, pursuant to the provisions of
Section 4 of this article, to the shareholders entitled to vote thereat, that a
meeting will be held at the date and time specified by the person or persons
calling the meeting. If notice is not given within 20 days of the receipt of the
request, the shareholders making the request may give notice of such meeting so
long as the notice given complies with the other provisions of this subsection.
(c) No business may be transacted at a special meeting unless the
general nature thereof was stated in the notice of such meeting.
Section 4. Notice of Annual, Special or Adjourned Meetings. (a) Whenever
any meeting of the shareholders is to be held, a written notice of such meeting
shall be given in the manner described in subdivision (d) of this section not
less than 10 nor more than 60 days before the date thereof, to each shareholder
entitled to vote thereat. The notice shall state the place, date and hour of the
meeting and (1) in the case of a special meeting, the general nature of the
business to be transacted or (2) in the case of the annual meeting, those
matters which the Board of Directors, at the time of the giving of the notice,
intends to present for action by the shareholders, in each case in accordance
with Section 4(f) below. The notice of any meeting at which directors are to be
elected shall include the name of any nominee or nominees who,
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at the time of the notice, management intends to present for election.
(b) Any proper matter may be presented at an annual meeting for action.
However, any action to approve (1) a contract or transaction in which a director
has a direct or indirect financial interest under Section 310 of the
Corporations Code of California, (2) an amendment of the articles of
incorporation under Section 902 of that code, (3) a reorganization of the
corporation, under Section 1201 of that code, (4) a voluntary dissolution of the
corporation under Section 1900 of that code, or (5) a distribution in
dissolution other than in accordance with the rights of outstanding preferred
shares under Section 2007 of that code may be taken only if the notice of the
meeting states the general nature of the matter to be approved.
(c) Notice need not be given of an adjourned meeting if the time and
place thereof are announced at the meeting at which the adjournment is taken,
except that if the adjournment is for more than 45 days or if after the
adjournment a new record date is provided for the adjourned meeting, a notice of
the adjourned meeting shall be given to each shareholder of record entitled to
vote at that meeting.
(d) Notice of any meeting of the shareholders shall be given personally,
by first class mail, or by telegraph or other written communication, addressed
to the shareholder at his address appearing on the books of the Corporation or
given by him to the Corporation for the purpose of notice; or if no such address
appears or is given, at the place where the principal executive office of the
Corporation is located or by publication at least once in a newspaper of general
circulation in the county in which the principal executive office is located.
Notice shall be deemed to have been given at the time when delivered personally
to the recipient, deposited in the mail, delivered to a common carrier for
transmission to the recipient or sent by other means of written communication.
An affidavit of the mailing or other means of giving notice may be executed by
the Secretary, assistant secretary or any transfer agent of the Corporation
giving the notice and shall be prima facie evidence of the giving of the notice.
Such affidavits shall be filed and maintained in the minute books of the
Corporation.
(e) If any notice or report addressed to the shareholder at his address
appearing on the books of the Corporation is returned to the Corporation by the
United States Postal Service
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marked to indicate that the United States Postal Service is unable to deliver
the notice or report to the shareholder at such address, all future notices or
reports shall be deemed to have been duly given without further mailing if the
same shall be available for the shareholder upon his written demand at the
principal executive office of the Corporation for a period of one year from the
date of the giving of the notice or report to all other shareholders.
(f) Only such business shall be conducted at an annual or special
meeting of shareholders as shall have been properly brought before the meeting.
For business to be properly brought before the meeting, it must be: (i)
authorized by the Board of Directors and specified in the notice, or a
supplemental notice, of the meeting, (ii) otherwise brought before the meeting
by or at the direction of the Board of Directors or the chairman of the meeting,
or (iii) otherwise properly brought before the meeting by a shareholder. For
business to be properly brought before an annual or special meeting by a
shareholder, the shareholder must have given written notice thereof to the
Secretary, delivered or mailed to and received at the principal executive
offices of the Corporation (A) in the case of an annual meeting (x) not less
than 60 days nor more than 90 days prior to the meeting, or (y) if less than 70
days' notice of the meeting or prior public disclosure of the date of the
meeting is given or made to shareholders, not later than the close of business
on the tenth day following the day on which the notice of the meeting was mailed
or, if earlier, the day on which such public disclosure was made and (B) in the
case of a special meeting, as required by Section 3(b) above. A shareholder's
notice to the Secretary shall set forth as to each item of business the
shareholder proposes to bring before the meeting (1) a brief description of such
item and the reasons for conducting such business at the meeting, (2) the name
and address, as they appear on the Corporation's records, of shareholder
proposing such business, (3) the class and number of shares of stock of the
Corporation which are beneficially owned by the shareholder (for purposes of the
regulations under Sections 13 and 14 of the Securities Exchange Act of 1934, as
amended), and (4) any material interest of the shareholder in such business. No
business shall be conducted at any annual or special meeting, except in
accordance with the procedures set forth in this paragraph (f). The Chairman of
the meeting at which any business proposed by a shareholder shall, if the facts
warrant, determine and declare to the meeting that such business was not
properly brought before the meeting and shall not be transacted.
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Section 5. Record Date. (a) The Board of Directors may fix a time in the
future as a record date for determination of the shareholders (1) entitled to
notice of any meeting or to vote thereat, (2) entitled to give written consent
to any corporate action without a meeting, (3) entitled to receive payment of
any dividend or other distribution or allotment of any rights or (4) entitled to
exercise any rights in respect of any other lawful action. The record date so
fixed shall be not more than 60 nor less than 10 days prior to the date of any
meeting of the shareholders nor more than 60 days prior to any other action.
(b) In the event no record date is fixed:
(1) The record date for determining the shareholders entitled to
notice of or to vote at a meeting of shareholders shall be at the close of
business on the business day next preceding the day on which notice is given or,
if notice is waived, at the close of business on the business day next preceding
the day on which the meeting is held.
(2) The record date for determining shareholders entitled to give
consent to corporate action in writing without a meeting, when no prior action
by the Board of Directors has been taken, shall be the day on which the first
written consent is given.
(3) The record date for determining shareholders for any other
purpose shall be at the close of business on the day on which the Board of
Directors adopts the resolution relating thereto, or the 60th day prior to the
date of such other action, whichever is later.
(c) Only shareholders of record on the close of business on the record
date are entitled to notice and to vote, to give written consent or to receive a
dividend, distribution or allotment of rights or to exercise the rights, as the
case may be, notwithstanding any transfer of any shares on the books of the
Corporation after the record date.
(d) A determination of shareholders of record entitled to notice of or
to vote at a meeting of shareholders shall apply to any adjournment of the
meeting unless the Board of Directors fixes a new record date for the adjourned
meeting, but the Board shall fix a new record date if the meeting is adjourned
for more than 45 days from the date set for the original meeting.
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Section 6. Quorum. (a) A majority of the shares entitled to vote at a
meeting of the shareholders, represented in person or by proxy, shall constitute
a quorum for the transaction of business thereat.
(b) The shareholders present at a duly called or held meeting at which a
quorum is present may continue to transact business until adjournment
notwithstanding the withdrawal of enough shareholders to leave less than a
quorum, if any action taken (other than adjournment) is approved by at least a
majority of the shares required to constitute a quorum.
Section 7. Adjournment. Any meeting of the shareholders may be adjourned
from time to time whether or not a quorum is present by the vote of a majority
of the shares represented thereat either in person or by proxy. At the adjourned
meeting the Corporation may transact any business which might have been
transacted at the original meeting.
Section 8. Validation of Actions Taken at Defectively Called, Noticed or
Held Meetings. (a) The transactions of any meeting of the shareholders, however
called and noticed, and wherever held, are as valid as though had at a meeting
duly held after regular call and notice, if a quorum is present either in person
or by proxy, and if, either before or after the meeting, each of the persons
entitled to vote thereat, not present in person or by proxy, signs a written
waiver of notice or a consent to the holding of the meeting or an approval of
the minutes thereof. Any written waiver of notice shall comply with subdivision
(f) of Section 601 of the Corporations Code of the State of California. All such
waivers, consents and approvals shall be filed with the corporate records or
made a part of the minutes of the meeting.
(b) Attendance of a person at a meeting shall constitute a waiver of
notice of and presence at such meeting, except (1) when the person objects, at
the beginning of the meeting, to the transaction of any business because the
meeting is not lawfully called or convened and (2) that attendance at a meeting
is not a waiver of any right to object to the consideration of any matter
required by the General Corporation Law of the State of California to be
included in the notice but not so included, if such objection is expressly made
at the meeting.
Section 9. Voting for Election of Directors. (a) Except as provided in
subdivision (c) of this section, the affirmative
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vote of the majority of the shares represented and voting at a duly held meeting
at which a quorum is present (which shares voting affirmatively also constitute
at least a majority of the required quorum) shall be the act of the
shareholders, unless the vote of a greater number is required by law or the
Articles of Incorporation.
(b) Every shareholder complying with subdivision (c) of this section and
entitled to vote at any election of directors may cumulate his votes and give
one candidate a number of votes equal to the number of directors to be elected,
multiplied by the number of votes to which his shares are normally entitled, or
distribute his votes on the same principle among as many candidates as he thinks
fit.
(c) No shareholder shall be entitled to cumulate his votes (i.e., cast
for any candidate a number of votes greater than the number of votes which such
shareholder normally is entitled to cast) unless the candidate's or candidates'
names for which he desires to cumulate his votes have been placed in nomination
prior to the voting and the shareholder has given notice at the meeting prior to
the voting of his intention to cumulate his votes. If any one shareholder has
given such notice, all shareholders may cumulate their votes for candidates in
nomination.
(d) Elections for directors may be by voice vote or by ballot unless any
shareholder entitled to vote demands election by ballot at the meeting prior to
the voting, in which case the vote shall be by ballot.
(e) In any election of directors, the candidates receiving the highest
number of affirmative votes of the shares entitled to be voted for them, up to
the number of directors to be elected by such shares, are elected as directors.
Section 10. Proxies. (a) Every person entitled to vote shares may
authorize another person or persons to act with respect to such shares by a
written proxy signed by him or his attorney-in-fact and filed with the Secretary
of the Corporation. A proxy shall be deemed signed if the shareholder's name is
placed on the proxy (whether by manual signature, typewriting, telegraphic
transmission or otherwise) by him or his attorney-in-fact.
(b) Any validly executed proxy, except a proxy which is irrevocable
pursuant to subdivision (c) of this section, shall
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continue in full force and effect until the expiration of the term specified
therein or upon its earlier revocation by the person executing it prior to the
vote pursuant thereto (1) by a writing delivered to the Corporation stating that
it is revoked, (2) by written notice of death of the person executing the proxy,
delivered to the Corporation, (3) by a subsequent proxy executed by the person
executing the prior proxy and presented to the meeting or (4) as to any meeting
by attendance at such meeting and voting in person by the person executing the
proxy. No proxy shall be valid after the expiration of 11 months from the date
thereof unless otherwise provided in the proxy. The date contained on the form
of proxy shall be deemed to be the date of its execution.
(c) A proxy which states that it is irrevocable is irrevocable for the
period specified therein subject to the provisions of subdivisions (e) and (f)
of Section 705 of the Corporations Code of the State of California.
Section 11. Inspectors of Election. (a) In advance of any meeting of the
shareholders, the Board of Directors may appoint either one or three persons
(other than nominees for the office of director) as inspectors of election to
act at such meeting or any adjournments thereof. If inspectors of election are
not so appointed, or if any person so appointed fails to appear or refuses to
act, the chairman of any such meeting may, and on the request of any shareholder
or his proxy shall, appoint inspectors of election (or persons to replace those
who so fail or refuse to act) at the meeting. If appointed at a meeting on the
request of one or more shareholders or the proxies thereof, the majority of
shares represented in person or by proxy shall determine whether one or three
inspectors are to be appointed.
(b) The duties of inspectors of election and the manner of performance
thereof shall be as prescribed in subdivisions (b) and (c) of Section 707 of the
Corporations Code of the State of California.
Section 12. Action by Written Consent. (a) Subject to subdivisions (b)
and (c) of this section, any action which may be taken at any annual or special
meeting of the shareholders may be taken without a meeting, without a vote and
without prior notice, if a consent in writing, setting forth the action so
taken, is signed by the holders of outstanding shares having not less than the
minimum number of votes which would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted. All
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such consents shall be filed with the Secretary of the Corporation and
maintained with the corporate records.
(b) Except for the election of a director by written consent to fill a
vacancy (other than a vacancy created by removal), directors may be elected by
written consent only by the unanimous written consent of all shares entitled to
vote for the election of directors. In the case of an election of a director by
written consent to fill a vacancy (other than a vacancy created by removal), any
such election requires the consent of a majority of the outstanding shares
entitled to vote for the election of directors.
(c) Unless the consents of all shareholders entitled to vote have been
solicited in writing, the secretary shall give prompt notice of the corporate
action approved by the shareholders without a meeting. This notice shall be
given in the manner specified in subdivision (d) of Section 4 of this Article
III. In the case of approval of (1) contracts or transactions in which a
director has a direct or indirect financial interest under Section 310 of the
Corporations Code of California, (2) indemnification of agents of the
corporation, under Section 317 of that code, (3) a reorganization of the
corporation, under Section 1201 of that code, or (4) a distribution in
dissolution other than in accordance with the rights of outstanding preferred
shares, under Section 2007 of that code, notice of such approval shall be given
at least ten (10) days before the consummation of any action authorized by that
approval.
(d) Any shareholder giving a written consent, or his proxyholders, or a
transferee of the shares or a personal representative of the shareholder or
their respective proxyholders, may revoke the consent by a writing received by
the Corporation prior to the time that written consents of the number of shares
required to authorize the proposed action have been filed with the Secretary of
the Corporation, but may not do so thereafter. Such revocation is effective upon
its receipt by the Secretary of the Corporation.
ARTICLE IV
Directors
Section 1. Number of Directors. (a) The authorized number of directors
shall depend upon the number of shareholders. If there is only one shareholder,
then there will only be one
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director. Whenever there is more than one shareholder, then there will be no
less than five nor more than nine directors. The exact number of directors shall
be fixed from time to time, within the limits specified in this subdivision, by
an amendment of subdivision (b) of this section adopted by the Board of
Directors.
(b) The exact number of directors shall be one (1) until changed as
provided in subdivision (a) of this section. Notwithstanding the preceding
sentence, at all times while there is one (1) shareholder of the corporation,
said shareholder may, without amending these By-laws, determine that there shall
be five (5) directors. Said shareholder may elect the aforementioned five (5)
directors by noticing a meeting of the shareholders of the corporation.
(c) The maximum or minimum authorized number of directors may only be
changed by an amendment of this section approved by the vote or written consent
of a majority of the shareholders; provided, however, that an amendment reducing
the minimum number to a number less than 5 shall not be adopted if the votes
cast against its adoption at a meeting (or the shares not consenting in the case
of action by written consent) exceed 16-2/3% of such outstanding shares; and
provided, further, that in no case shall the stated maximum authorized number of
directors exceed two times the stated minimum number of authorized directors
minus one.
Section 2. Election of Directors. Directors shall be elected at each
annual meeting of the shareholders.
Section 3. Term of Office. Each director, including a director elected
to fill a vacancy, shall hold office until the expiration of the term for which
he is elected and until a successor has been elected, and qualified.
Section 4. Vacancies. (a) A vacancy in the Board of Directors exists
whenever any authorized position of director is not then filled by a duly
elected director, whether caused by death, resignation, removal, change in the
authorized number of directors or otherwise.
(b) Except for a vacancy created by the removal of a director, vacancies
on the Board of Directors may be filled by a majority of the directors then in
office, whether or not less than a quorum, or by a sole remaining director. A
vacancy created by the removal of a director shall be filled only by a
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person elected by a majority of the shareholders entitled to vote at a duly held
meeting at which there is a quorum present or by the unanimous written consent
of the holders of the outstanding shares entitled to vote at such a meeting.
(c) The shareholders may elect a director at anytime to fill any vacancy
not filled by the directors. Any such nomination shall comply with the
requirements of Article III, Section 2(b) of these By-laws.
Section 5. Removal. (a) The Board of Directors may declare vacant the
office of a director who has been declared of unsound mind by an order of court
or convicted of a felony.
(b) Any or all of the directors may be removed without cause if such
removal is approved by a majority of the outstanding shares entitled to vote;
provided, however that no director may be removed (unless the entire Board of
Directors is removed) if whenever the votes cast against his removal, or not
consenting in writing to such removal, would be sufficient to elect such
director if voted cumulatively at an election at which the same total number of
votes were cast (or, if such action is taken by written consent, all shares
entitled to vote were voted) and the entire number of directors authorized at
the time of his most recent election were then being elected.
(c) Any reduction of the authorized number of directors does not remove
any director prior to the expiration of his term of office.
Section 6. Resignation. Any director may resign effective upon giving
written notice to the Chairman of the Board, the President, the Secretary or the
Board of Directors of the Corporation, unless the notice specifies a later time
for the effectiveness of such resignation. If the resignation is effective at a
future time, a successor may be elected to take office when the resignation
becomes effective.
Section 7. Fees and Compensation. Directors may be paid for their
services in such capacity a sum in such amounts, at such times and upon such
conditions as may be determined from time to time by resolution of the Board of
Directors and may be reimbursed for their expenses, if any, for attendance at
each meeting of the Board. No such payments shall preclude any director from
serving the Corporation in any other capacity and receiving compensation in any
manner therefor.
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ARTICLE V
Committees of the Board of Directors
Section 1. Designation of Committees. The Board of Directors may, by
resolution adopted by a majority of the authorized number of directors,
designate (1) one or more committees, each consisting of two or more directors
and (2) one or more directors as alternate members of any committee, who may
replace any absent member at any meeting thereof. Any member or alternate member
of a committee shall serve at the pleasure of the Board.
Section 2. Powers of Committees. Any committee, to the extent provided
in the resolution of the Board of Directors designating such committee, shall
have all the authority of the Board, except with respect to:
(a) The approval of any action for which the General Corporation Law of
the State of California also requires any action by the shareholders;
(b) The filling of vacancies on the Board or in any committee thereof;
(c) The fixing of compensation of the directors for serving on the Board
or on any committee thereof;
(d) The amendment or repeal of these By-laws or the adoption of new
By-laws;
(e) The amendment or repeal of any resolution of the Board which by its
express terms is not so amendable or repealable;
(f) A distribution to the shareholders of the Corporation, except at a
rate or in a periodic amount or within a price range determined by the Board of
Directors; or
(g) The designation of other committees of the Board or the appointment
of members or alternate members thereof.
ARTICLE VI
Meetings of the Board of Directors and Committees Thereof
Section 1. Place and Meetings. Regular meetings of the Board of
Directors shall be held at any place within or without the State of California
which has been designated from time to time by the Board or, in the absence of
such designation, at the
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principal executive office of the Corporation. Special meetings of the Board
shall be held either at any place within or without the State of California
which has been designated in the notice of meeting or, if not stated in the
notice or if there is no notice, at the principal executive office of the
Corporation.
Section 2. Organization Meeting. Immediately following each annual
meeting of the shareholders the Board of Directors shall hold a regular meeting
for the purpose of organization and the transaction of other business. Notice of
any such meeting is not required.
Section 3. Other Regular Meetings. Other regular meetings of the Board
of Directors shall be held without call at such time as shall be designated from
time to time by the Board. Notice of any such meeting is not required.
Section 4. Special Meetings. Special meetings of the Board of Directors
may be called at any time for any purpose or purposes by the Chairman of the
Board or the President or any vice president or the Secretary or any two
directors. Notice shall be given of any special meeting of the Board.
Section 5. Notice of Special Meetings. Notice of the time and place of
special meetings of the Board of Directors shall be delivered personally or by
telephone to each director or sent to each director by first-class mail or
telegraph, charges prepaid, addressed to each director at that director's
address as shown on the records of the Corporation. Such notice shall be given
four days prior to the holding of the special meeting if sent by mail or 48
hours prior to the holding thereof if delivered personally or given by telephone
or telegraph. The notice or report shall be deemed to have been given at the
time when delivered personally to the recipient or deposited in the mail or sent
by other means of written communication. Notice of any special meeting of the
Board or Directors need not specify the purpose thereof.
Section 6. Waivers, Consents and Approvals. Notice of any meeting of the
Board of Directors need not be given to any director who signs a waiver of
notice or a consent to holding the meeting or an approval of the minutes
thereof, whether before or after the meeting, or who attends the meeting without
protesting, prior thereto or at its commencement, the lack of notice to him. All
such waivers, consents and approvals shall be filed with the corporate records
or made a part of the minutes of the meeting.
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Section 7. Quorum; Action at Meetings; Telephone Meetings. (a) A
majority of the authorized number of directors shall constitute a quorum for the
transaction of business. Every act or decision done or made by a majority of the
directors present is the act of the Board of Directors, unless action by a
greater proportion of the directors is required by law or the Articles of
Incorporation.
(b) A meeting at which a quorum is initially present may continue to
transact business notwithstanding the withdrawal of directors, if any action
taken is approved by at least a majority of the required quorum for such
meeting.
(c) Members of the Board of Directors may participate in a meeting
through use of conference telephone or similar communications equipment so long
as all members participating in such meeting can hear one another.
Section 8. Adjournment. A majority of the directors present, whether or
not a quorum is present, may adjourn any meeting to another time and place. If
the meeting is adjourned for more than 24 hours, notice of any adjournment to
another time or place shall be given prior to the time of the adjourned meeting
to the directors who were not present at the time of the adjournment.
Section 9. Action Without a Meeting. Any action required or permitted to
be taken by the Board of Directors may be taken without a meeting, if all
members of the Board individually or collectively consent in writing to such
action. Such written consent or consents shall be filed with the minutes of the
proceedings of the Board. Such action by written consent shall have the same
force and effect as a unanimous vote of such directors.
Section 10. Meetings of and Action by Committees. The provisions of this
Article apply to committees of the Board of Directors and action by such
committees with such changes in the language of those provisions as are
necessary to substitute the committee and its members for the Board and its
members.
ARTICLE VII
Officers
Section 1. Officers. The Corporation shall have as officers, a
President, a Secretary and a Chief Financial Officer. The Treasurer is the chief
financial officer of the
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Corporation unless the Board of Directors has by resolution designated a vice
president or other officer to be the chief financial officer. The Corporation
may also have, at the discretion of the Board, a Chairman of the Board, one or
more vice presidents, one or more assistant secretaries, one or more assistant
treasurers and such other officers as may be appointed in accordance with the
provisions of Section 3 of this Article. One person may hold two or more
offices.
Section 2. Election of Officers. The officers of the Corporation, except
such officers as may be appointed in accordance with the provisions of Section 3
or Section 5 of this Article, shall be chosen by the Board of Directors.
Section 3. Subordinate Officers, Etc. The Board of Directors may appoint
by resolution, and may empower the Chairman of the Board, if there be such an
officer, or the President, to appoint such other officers as the business of the
Corporation may require, each of whom shall hold office for such period, have
such authority and perform such duties as are determined from time to time by
resolution of the Board or, in the absence of any such determination, as are
provided in these By-laws. Any appointment of an officer shall be evidenced by a
written instrument filed with the Secretary of the Corporation and maintained
with the corporate records.
Section 4. Removal and Resignation. (a) Subject to the rights, if any,
of an officer under any contract of employment, any officer may be removed,
either with or without cause, by the Board of Directors or, except in case of
any officer chosen by the Board, by any officer upon whom such power of removal
may be conferred by resolution of the Board.
(b) Subject to the rights, if any, of the Corporation under any contract
of employment, any officer may resign at any time effective upon giving written
notice to the Chairman of the Board, President, any vice president or Secretary
of the Corporation, unless the notice specifies a later time for the
effectiveness of such resignation.
Section 5. Vacancies. A vacancy in any office because of death,
resignation, removal, disqualification or any other cause shall be filled in the
manner prescribed in these By-laws for regular appointments to such office.
Section 6. Chairman of the Board. If there is a Chairman of the Board,
he shall, if present, preside at all meetings of the Board of Directors,
exercise and perform such other powers
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and duties as may be from time to time assigned to him by resolution of the
Board or prescribed by these By-laws and, if there is no President, the Chairman
of the Board shall be the chief executive officer of the Corporation and have
the power and duties set forth in Section 7 of this Article.
Section 7. President. Subject to such supervisory powers, if any, as may
be given by these By-laws or the Board of Directors to the Chairman of the
Board, if there be such an officer, the President shall be the chief executive
officer and general manager of the Corporation and shall, subject to the control
of the Board, have general supervision, direction and control of the business
and affairs of the Corporation. He shall preside at all meetings of the
shareholders and, in the absence of the Chairman of the Board, or if there be
none, at all meetings of the Board. He shall have the general powers and duties
of management usually vested in the office of president of a corporation, and
shall have such other powers and duties as may be prescribed from time to time
by resolution of the Board.
Section 8. Vice President. In the absence or disability of the
President, the vice presidents in order of their rank as fixed by the Board of
Directors, or, if not ranked, the Vice President designated by the Board, shall
perform all the duties of the President, and when so acting shall have all the
powers of, and be subject to all the restrictions upon, the President. The vice
presidents shall have such other powers and perform such other duties as from
time to time may be prescribed for them respectively by the Board or as the
President may from time to time delegate.
Section 9. Secretary. (a) The Secretary shall keep or cause to be kept
(1) the minute book, (2) the share register and (3) the seal, if any, of the
Corporation.
(b) The Secretary, an assistant secretary, or, if they are absent or
unable to act, any other officer shall give, or cause to be given, notice of all
meetings of the shareholders and of the Board of Directors required by these
By-laws or by law to be given, and shall have such other powers and perform such
other duties as may be prescribed from time to time by the Board of Directors or
any committee of the Board of Directors.
Section 10. Chief Financial Officer. (a) The Chief Financial Officer
shall keep, or cause to be kept, the books and records of account of the
Corporation.
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(b) The Chief Financial Officer shall deposit all monies and other
valuables in the name and to the credit of the Corporation with such
depositories as may be designated from time to time by resolution of the Board
of Directors. He shall disburse the funds of the Corporation as may be ordered
by the Board of Directors, shall render to the President and the Board, whenever
they request it, an account of all of his transactions as Chief Financial
Officer and of the financial condition of the Corporation, and shall have such
other powers and perform such other duties as may be prescribed from time to
time by the Board or as the President may from time to time delegate.
ARTICLE VIII
Records and Reports
Section 1. Minute Book. The Corporation shall keep or cause to be kept
in written form at its principal executive office or such other place as the
Board of Directors may order, a minute book which shall contain a record of all
actions by its shareholders, Board or committees of the Board including the
time, date and place of each meeting; whether a meeting is regular or special
and, if special, how called; the manner of giving notice of each meeting and a
copy thereof; the names of those present at each meeting of the Board or
committees thereof; the number of shares present or represented at each meeting
of the shareholders; the proceedings of all meetings; any written waivers of
notice, consents to the holding of a meeting or approvals of the minutes
thereof; and written consents for action without a meeting.
Section 2. Share Register. The Corporation shall keep or cause to be
kept at its principal executive office or, if so provided by resolution of the
Board of Directors, at the Corporation's transfer agent or registrar, a share
register, or a duplicate share register, which shall contain the names of the
shareholders and their addresses, the number and classes of shares held by each,
the number and date of certificates issued for the same and the number and date
of cancellation of every certificate surrendered for cancellation.
Section 3. Books and Records of Account. The Corporation shall keep or
cause to be kept at its principal executive office or such other place as the
Board of Directors may order, adequate and correct books and records of account.
Section 4. By-laws. The Corporation shall keep at its principal
executive office or, in the absence of such office in
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the State of California, at its principal business office in the state, the
original or a copy of the By-laws as amended to date.
Section 5. Inspection of Records. The shareholders and directors of the
Corporation shall have all of the rights to inspect the books and records of the
Corporation that are specified in Section 213 and 1600 through 1602 of the
Corporations Code of the State of California.
Section 6. Annual Report to Shareholders. The Board of Directors shall
cause an annual report to be sent to the shareholders not later than 120 days
after the close of the fiscal year of the Corporation. Such report shall comply
with the provisions of Section 1501 of the Corporations Code of the State of
California and shall be sent in the manner specified in Section 4 (d) of Article
III at least 15 days prior to the annual meeting of shareholders to be held
during the next fiscal year.
ARITCLE IX
Miscellaneous
Section 1. Checks, Drafts, Etc. All checks, drafts or other orders for
payment of money, notes or other evidences of indebtedness, and any assignment
or endorsement thereof, issued in the name of or payable to the Corporation,
shall be signed or endorsed by such person or persons and in such manner as,
from time to time, shall be determined by resolution of the Board of Directors.
Section 2. Contracts, Etc. - How Executed. The Board of Directors,
except as otherwise provided in these By-laws, may authorize any officer or
officers, agent or agents, to enter into any contract or execute any instrument
in the name of and on behalf of the Corporation, and such authority may be
general or confined to specific instances; and, unless so authorized or ratified
by the Board, no officer, employee or other agent shall have any power or
authority to bind the Corporation by any contract or engagement or to pledge its
credit or to render it liable for any purpose or to any amount.
Section 3. Certificates of Stock. A certificate or certificates for
shares of the capital stock of the Corporation shall be issued to each
shareholder when the shares are fully paid or the Board of Directors may
authorize the issuance of certificates for shares as partly paid provided that
these certificates shall conspicuously state the amount of the
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consideration to be paid for them and the amount already paid. All certificates
shall be signed in the name of the Corporation by the Chairman of the Board or
the President or a vice president and by the Chief Financial Officer or an
assistant treasurer or the Secretary or an assistant secretary, certifying the
number of shares and the class or series thereof owned by the shareholder. Any
or all of the signatures on a certificate may be by facsimile signature. In case
any officer, transfer agent or registrar who has signed or whose facsimile
signature has been placed upon a certificate shall have ceased to be such
officer, transfer agent or registrar before such certificate is issued, it may
be issued by the Corporation with the same effect as if such person were an
officer, transfer agent or registrar at the date of issue.
Section 4. Lost Certificates. Except as provided in this section, no new
certificate for shares shall be issued in lieu of an old certificate unless the
latter is surrendered to the Corporation and canceled at the same time. The
Board of Directors may in case any share certificate or certificate for any
other security is lost, stolen or destroyed, authorize the issuance of a new
certificate in lieu thereof, upon such terms and conditions as the Board may
require, including provision for indemnification of the Corporation secured by a
bond or other adequate security sufficient to protect the Corporation against
any claim that may be made against it, including any expense or liability, on
account of the alleged loss, theft or destruction of such certificate or the
issuance of such new certificate.
Section 5. Representation of Shares of Other Corporations. Any person
designated by resolution of the Board of Directors or, in the absence of such
designation, the Chairman of the Board, the President or any vice president or
the Secretary, or any other person authorized by any of the foregoing, is
authorized to vote on behalf of the Corporation any and all shares of any other
corporation or corporations, foreign or domestic, owned by the Corporation.
Section 6. Construction and Definitions. Unless the context otherwise
requires, the general provisions, rules of construction and definitions
contained in the Corporations Code of the State of California shall govern the
construction of these By-laws.
Section 7. Mandatory Indemnification of Directors. The Corporation
shall, to the maximum extent and in the manner permitted by the California
Corporations Code ("Code"), indemnify each of its directors against expenses (as
defined in Section 317(a) of the Code), judgments, fines, settlements, and other
amounts actually and reasonably incurred in connection with any proceeding (as
defined in
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Section 317 (a) of the Code), arising by reason of the fact that such person is
or was an agent of the Corporation. For purposes of this Article IX, a
"director" of the Corporation includes any person (i) who is or was a director
of the Corporation, (ii) who is or was serving at the request of the Corporation
as a director of another Corporation, partnership, joint venture, trust or other
enterprise, or (iii) who was a director of a corporation which was a predecessor
corporation of the Corporation or of another enterprise at the request of such
predecessor corporation.
Section 8. Permissive Indemnification. The Corporation shall have the
power, to the extent and in the manner permitted by the Code, to indemnify each
of its officers, employees and agents against expenses (as defined in Section
317(a) of the Code), judgments, fines, settlements, and other amounts actually
and reasonable incurred in connection with any proceeding (as defined in Section
317(a) of the Code), arising by reason of the fact that such person is or was an
agent of the Corporation. For purposes of this Article IX, an "employee" or
"agent" of the Corporation (other than a director, includes any person (i) who
is or was an employee or agent of the Corporation, (ii) who is or was serving at
the request of the Corporation as an employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or (iii) who was an
employee or agent of the Corporation which was a predecessor corporation of the
Corporation or of another enterprise at the request of such predecessor
corporation.
Section 9. Payment of Expenses in Advance. Expenses incurred in
defending any civil or criminal action or proceeding for which indemnification
is required pursuant to Section 7 or for which indemnification is permitted
pursuant to Section 8 following authorization thereof by the Board of Directors,
in the case of directors shall and in the case of other agents of the
corporation entitled to indemnification may, be paid by the corporation in
advance of the final disposition of such action or proceeding upon receipt of an
undertaking by or on behalf of the indemnified party to repay such amount if it
shall ultimately be determined that the indemnified party is not entitled to be
indemnified as authorized in this Article IX.
Section 10. Indemnity Not Exclusive. The indemnification provided by
this Article IX shall not be deemed exclusive of any other rights to which those
seeking indemnification may be entitled under any bylaw, agreement, vote of
shareholders or
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disinterested directors or otherwise, both as to action in an official capacity
and as to action in another capacity while holding such office, to the extent
that such additional rights to indemnification are authorized in the Articles of
Incorporation.
Section 11. Insurance Indemnification. The Corporation shall have the
power to purchase and maintain insurance on behalf of any person who is or was
an agent of the Corporation against any liability asserted against or incurred
by such person in such capacity or arising out of such person's status as such,
whether or not the Corporation would have the power to indemnify him against
such liability under the provisions of this Article IX.
Section 12. Conflicts. No indemnification or advance shall be made under
this Article IX, except where such indemnification or advance is mandated by law
or the order, judgment or decree of any court of competent jurisdiction, in any
circumstance where it appears:
(1) That it would be inconsistent with a provision of the Articles of
Incorporation, these By-laws, a resolution of the shareholders or an agreement
in effect at the time of the accrual of the alleged cause of the action asserted
in the proceeding in which the expenses were incurred or other amounts were
paid, which prohibits or otherwise limits indemnification; or
(2) That it would be inconsistent with any condition expressly imposed
by a court in approving a settlement.
ARTICLE X
Amendments
Section 1. Amendments. New By-laws may be adopted or these By-laws may
be amended or repealed by the affirmative vote or written consent of a majority
of the outstanding shares entitled to vote. Subject to the next preceding
sentence, By-laws (other than a bylaw or amendment thereof specifying or
changing a fixed number of directors or the maximum or minimum number, or
changing from fixed to a variable board or vice versa) may be adopted, amended
or repealed by the Board of Directors.
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