Exhibit 3.2
AMENDED AND RESTATED BY-LAWS
OF
REPUBLIC FIRST BANCORP, INC.
A Pennsylvania Corporation
ARTICLE I
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SHAREHOLDERS
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Section 1. Annual Meetings. The annual meeting of the
shareholders of the Corporation shall be held on a date fixed from time to time
by the Board of Directors. An annual meeting may be held at any place in or out
of the Commonwealth of Pennsylvania as may be determined by the Board of
Directors and as shall be designated in the notice of the meeting and at the
time specified by the Board of Directors. Any business of the Corporation may be
transacted at an annual meeting without being specifically designated in the
notice unless otherwise provided by statute, the Corporation's Amended and
Restated Articles of Incorporation (the "Articles of Incorporation") or these
By-Laws, as they may be amended from time to time.
Section 2. Special Meetings. Special meetings of the
shareholders for any purpose or purposes, unless otherwise prescribed by statute
or by the Corporation's Articles of Incorporation, may be held at any place
within the United States, and may be called at any time (a) by the Chairman of
the Board, (b) by the Board of Directors or (c) at the request in writing of
shareholders entitled to cast at least twenty (20%) percent of the votes
entitled to be cast at the meeting upon payment by such shareholders to the
Corporation of the reasonably estimated cost of preparing and mailing a notice
of the meeting (which estimated cost shall be provided to such shareholders by
the Secretary of the Corporation); provided, however, that special meetings of
shareholders of the Corporation which have as their purpose a change in control
of the Corporation, amendment to these By-Laws or an amendment of the
Corporation's Articles of Incorporation may only be called by a majority of the
Board of Directors of the Corporation. Notwithstanding the foregoing, unless
requested by shareholders entitled to cast a majority of the votes entitled to
be cast at the meeting, a special meeting of the shareholders need not be called
at the request of shareholders to consider any matter that is substantially the
same as a matter voted on at any meeting of the shareholders held during the
preceding twelve (12) months. A written request shall state the purpose or
purposes of the proposed meeting.
Section 3. Notice of Meetings. Written or printed notice
stating the time and place of every meeting of the shareholders and, in the case
of a special meeting, the purpose or purposes for which the meeting is called,
shall be given by the Secretary of the Corporation to each shareholder of record
entitled to vote at the meeting, by placing the notice in the mail at least ten
(10) days, but not more than sixty (60) days, prior to the date designated for
the meeting addressed to each shareholder at his address appearing on the books
of the Corporation or supplied by the shareholder to the Corporation for the
purpose of notice. The notice of any meeting of shareholders may be accompanied
by a form of proxy approved by the Board of Directors in favor of the actions or
persons as the Board of Directors may select. Notice of any meeting of
shareholders shall be deemed waived by any shareholder who attends the meeting
in person or by proxy, or who before or after the meeting submits a signed
waiver of notice that is filed with the records of the meeting.
Section 4. Quorum. Except as otherwise provided by statute or
by the Corporation's Articles of Incorporation, the presence at a meeting in
person or by proxy of shareholders of the Corporation entitled to cast at least
a majority of the votes entitled to be cast at such meeting shall constitute a
quorum at a meeting of the shareholders. Except as otherwise provided by statute
or by the Corporation's Articles of Incorporation, all questions to be decided
at any meeting shall be decided by majority vote of the shares so represented in
person or by proxy at the annual meeting and entitled to vote. In the absence of
a quorum, the shareholders present in person or by proxy at the meeting, by
majority vote and without notice other than by announcement at the meeting, may
adjourn the meeting from time to time as provided in Section 5 of this Article I
until a quorum shall be present in person or by proxy. The shareholders present
at any duly organized meeting may continue to do business until adjournment,
notwithstanding the withdrawal of enough shareholders to leave less than a
quorum present and voting at such meeting. The absence from a meeting of
shareholders representing such number of shares making it impossible to meet any
greater quorum requirement imposed by the laws of the Commonwealth of
Pennsylvania or other applicable statute, the Corporation's Articles of
Incorporation or these By-Laws for action upon any given matter shall not
prevent action at the meeting on any other matter or matters that may properly
come before the meeting, so long as there are present, in person or by proxy,
holders of the number of shares of stock of the Corporation required for action
upon the other matter or matters.
REPUBLIC FIRST BANCORP | 86
Section 5. Adjournment. Any meeting of the shareholders may be
adjourned from time to time and for such period as the shareholders present and
entitled to vote shall direct, without notice other than by announcement at the
meeting at which the adjournment is taken. At any adjourned meeting at which a
quorum shall be present, any action may be taken that could have been taken at
the meeting originally called.
Section 6. Organization. At every annual meeting of the
shareholders, the Chairman of the Board, or in his absence or inability to act
or at the request of the Chairman, the President, or in his absence or inability
to act, a Vice President, or in the absence or inability to act of the Chairman
of the Board, the President and all the Vice Presidents, a chairman chosen by
the shareholders, shall act as chairman of the meeting. The Secretary, or in his
absence or inability to act, a person appointed by the chairman of the meeting,
shall act as secretary of the meeting and keep the minutes of the meeting.
Section 7. Order of Business. The order of business at all
meetings of the shareholders shall be as determined by the chairman of the
meeting.
Section 8. Voting. Except as otherwise provided by statute or
the Corporation's Articles of Incorporation, each holder of record of shares of
stock of the Corporation having voting power shall be entitled at each meeting
of the shareholders to one (1) vote for every share of stock standing in his
name on the records of the Corporation as of the record date determined pursuant
to Section 9 of this Article I.
Each shareholder entitled to vote at any meeting of
shareholders may authorize another person or persons to act for him by a proxy
signed by the shareholder or his attorney-in-fact. Such proxy shall be
authorized by an instrument in writing, or by a transmission permitted by law,
filed in accordance with the procedure established for the meetings. Any copy,
facsimile, telecommunication or other reliable reproduction of the writing or
transmission created pursuant to this paragraph may be substituted or used in
lieu of the original writing or transmission for any and all purposes for which
the original writing or transmission could be used provided that such copy,
facsimile, telecommunication or other reproduction shall be a complete
reproduction of the entire original writing or transmission. No proxy shall be
valid after the expiration of eleven (11) months from the date thereof, unless
otherwise provided in the proxy. Every proxy shall be revocable at the pleasure
of the shareholder executing it, except in those cases in which the proxy states
that it is irrevocable and in which an irrevocable proxy is permitted by law. A
proxy shall not re revoked by the death or incapacity of the maker unless,
before the authority is exercised or the vote counted, written notice of the
death or incapacity is given to the secretary of the corporation. (R)
Proxies solicited on behalf of management shall be voted as
directed by the shareholders or, in the absence of such direction, as determined
by the Board of Directors.
Section 9. Fixing Record Date of Voting. The Board of
Directors may set a record date for the purpose of determining shareholders
entitled to vote at any meeting of the shareholders or any adjournment thereof
or, (subject to the provisions of Article IV, Section 6 of these By-Laws) for
any other proper purpose. Such record date in any case shall be not more than
ninety (90) nor fewer than ten (10) days before the date of the particular
action to be taken.
All persons who were holders of record of shares as of the record date
of a meeting, and no others, shall be entitled to vote at such meeting and any
adjournment thereof.
Section 10. Inspectors. The Board of Directors may, in advance
of any meeting of shareholders, point one (1) or three (3) inspectors to act at
the meeting or at any adjournment of the meeting. If the inspectors shall not be
so appointed or if any of them shall fail to appear or act, the chairman of the
meeting may appoint inspectors prior to the convening of the meeting. Each
inspector, before entering upon the discharge of his duties, shall take and sign
an oath to execute faithfully the duties of inspector at the meeting with strict
impartiality and according to the best of his ability. Unless otherwise
prescribed by the Board, the inspectors shall: determine the number of shares
outstanding and the voting power of each share; the number of shares represented
at the meeting; the existence of a quorum and the validity and effect of
proxies; receive votes, ballots or consents; hear and determine all challenges
and questions arising in connection with the right to vote; count and tabulate
all votes, ballots or consents; determine the result thereof, and, do those acts
as are proper to conduct the election of vote with fairness to all shareholders.
Upon request of the chairman of the meeting or any shareholder entitled to vote
at the meeting, the inspectors shall make a report in writing of any challenge,
request or matter determined by them and shall execute a certificate of any fact
found by them. Inspectors need not be shareholders of the Corporation.
Section 11. Shareholder Proposals. At all Annual Meetings of
shareholders commencing after the Annual Meeting of Shareholders to be held in
1996, if any, shareholder proposals with respect to an annual meeting shall be
made in compliance with the provisions of Rule 14a-8 of the Securities Exchange
Act of 1934, as amended ("Rule 14a-8"). With respect to a Special Meeting of
shareholders, shareholder proposals must be stated in writing and filed with the
secretary of the Corporation not later than the close of business on the seventh
(7th) day following the day on which notice of
REPUBLIC FIRST BANCORP | 87
such Special Meeting is first given to shareholders. This provision shall not
prevent the consideration and approval or disapproval at the annual meeting of
reports of officers, directors and committees; but, in connection with such
reports, no new business shall be acted upon at such annual meeting unless
stated and filed as herein provided.
Section 12. Action By Unanimous Consent. At all Annual
Meetings of shareholders commencing after the Annual Meeting of Shareholders to
be held in 1996, if any, shareholders of the Corporation shall not be entitled
to take action by means of a unanimous written consent.
ARTICLE II
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BOARD OF DIRECTORS
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Section 1. General Powers. Except as otherwise provided in the
Corporation's Articles of Incorporation, the business and affairs of the
Corporation shall be managed under the direction of the Board of Directors. All
powers of the Corporation may be exercised by or under authority of the Board of
Directors except as conferred on or reserved to the shareholders by law, by the
Corporation's Articles of Incorporation or by these By-Laws.
Section 2. Number and Term. The number of directors shall be
fixed from time to time by resolution of the Board of Directors adopted by a
majority of the directors then in office; provided, however, that the number of
directors shall in no event be fewer than five (5) nor more than twenty-five
(25). The Board of Directors shall be divided into three classes as nearly equal
as possible. The members of each class shall be elected for a term of three
years and until their successors are elected and qualified. One class shall be
elected by ballot annually. Any vacancy created by an increase in directors may
be filled in accordance with Section 6 of this Article II. No reduction in the
number of directors shall have the effect of moving any director from office
prior to the expiration of his term unless the director is specifically removed
pursuant to Section 5 of this Article II at the time of the decrease. A director
need not be a citizen of the United States or a resident of the Commonwealth of
Pennsylvania but must be a shareholder of the Corporation at the commencement of
his term.
Section 3. Standard of Care; Justifiable Reliance. A director
shall stand in a fiduciary relation to the corporation and shall perform his or
her duties as a director, including duties as a member of any committee of the
board upon which the director may serve, in good faith, in a manner the director
reasonably believes to be in the best interests of the corporation and with such
care, including reasonable inquiry, skill and diligence, as a person of ordinary
prudence would use under similar circumstances. In performing his or her duties,
a director shall be entitled to rely in good faith on information, opinions,
reports or statements, including financial statements and other financial data,
in each case prepared or presented by any of the following:
(a) One or more officers or employees of the
corporation whom the director reasonably believes to be reliable and
competent in the matters presented.
(b) Counsel, public accountants or other persons as
to matters, which the director reasonably believes to be within the
professional or expert competence of such person.
(c) A committee of the board upon which the directors
does not serve, duly designated in accordance with law, as to matters
within its designated authority, which committee the director
reasonably believes to merit confidence.
A director shall not be considered to be acting in good faith if the director
has knowledge concerning the matter in question that would cause his or her
reliance to be unwarranted.
Section 4. Nomination by Shareholders. At all Annual Meetings
of shareholders commencing after the Annual Meeting of Shareholders to be held
in 1996, if any, any stockholder who desires to propose nominees to the Board of
Directors must provide for the receipt of a written notice of the intention to
nominate a person or persons for election as directors by the Secretary of the
Corporation: (i) with respect to an election to be held at any annual meeting of
shareholders in accordance with the provision of Rule 14a-8, and (ii) with
respect to an election to be held at a special meeting of shareholders for the
election of directors, the close of business on the seventh (7th) day following
the day on which notice of such meetings is first given to shareholders.
The notice is required to contain: (i) the name and address of the
shareholder who intends to make the nomination and of the person or persons to
be nominated; (ii) a representation that the shareholder is a holder of record
of stock entitled to vote at the meeting and intends to appear in person or by
proxy at the meeting to nominate the person or persons specified in the notice;
(iii) a description of all arrangements or understandings between the
shareholder and each nominee and any other person or persons (naming such person
or persons) pursuant to which the nomination or nominations are to be made by
REPUBLIC FIRST BANCORP | 88
the shareholder; (iv) such other information regarding each nominee proposed by
such shareholder as would have been required to be included in a proxy statement
filed pursuant to the proxy rules of the Securities and Exchange Commission had
each nominee been nominated or intended to be nominated, by the Board of
Directors of the Corporation; and (v) the consent of each nominee to serve as a
director of the Company if so elected. The chairman of any meeting of
shareholders to elect directors and the Board of Directors may refuse to
recognize the nomination of any person not made in compliance with the
foregoing.
Section 5. Resignation. A director of the Corporation may
resign at any time by giving written notice of his resignation to the Board of
Directors or the Chairman of the Board or the Secretary of the Corporation. Any
resignation shall take effect at the time specified in it or, should the time
when it is to become effective not be specified in it, upon its formal
acceptance by the Board of Directors. Other than as provided herein, acceptance
of a resignation shall not be necessary to make it effective unless the
resignation states otherwise. When one or more directors resign from the board
effective at a future date, the directors then in office, including those who
have so resigned, shall have power by the applicable vote to fill the vacancies,
the vote thereon to take effect when the resignations become effective.
Section 6. Removal of Directors. Subject to the rights of the
holders of any class separately entitled to elect one or more directors, any
director, or the entire Board of Directors, may be removed from office for cause
by the affirmative vote of the holders of at least 75% of the combined voting
power of all classes of capital stock entitled to vote in the election of
directors.
The Board of Directors may declare vacant the office of a
director who has been judicially declared of unsound mind or who has been
convicted of an offense punishable by imprisonment for a term of more than one
year or if, within sixty (60) days after notice of his or her selection, the
director does not accept the office either in writing or by attending a meeting
of the Board of Directors.
Section 7. Vacancies. Any vacancies in the Board of Directors,
whether arising from death, resignation, removal or any other cause except an
increase in the number of directors, shall be filled by a vote of the majority
of the Board of Directors then in office even though that majority is less than
a quorum. A majority of the entire Board may fill a vacancy that results from an
increase in the number of directors. In the event that at any time a vacancy
exists in any office of a director that may not be filled by the remaining
directors, a special meeting of the shareholders shall be held as promptly as
possible and in any event within sixty (60) days, for the purpose of filling the
vacancy or vacancies. Any director elected or appointed to fill a vacancy shall
hold office for the balance of the term then remaining and until a successor has
been chosen and qualifies or until his earlier resignation or removal.
Section 8. Place of Meetings. Meetings of the Board may be
held at any place that the Board of Directors may from time to time determine or
that is specified in the notice of the meeting.
Section 9. Regular Meetings. Regular meetings of the Board of
Directors may be held without notice at the time and place determined by the
Board of Directors.
Section 10. Special Meetings. Special meetings of the Board of
Directors may be called by a majority of the Board or by the Chairman of the
Board.
Section 11. Organizational Meeting. The organizational meeting
of each newly elected Board of Directors shall be held as soon as practicable
after the meeting of shareholders at which the directors were elected. No notice
of such annual meeting shall be necessary if held immediately after the
adjournment, and at the site, of the meeting of shareholders. If not so held,
notice shall be given as hereinafter provided for special meeting of the Board
of Directors.
Section 12. Chairman of the Board. The Chairman of the Board
shall preside at all meetings of the shareholders and of the Board of Directors,
unless otherwise provided herein. Subject to the control of the Board of
Directors, the Chairman of the Board shall have general charge of the business
and affairs of the Corporation. In the absence or inability of the Chairman of
the Board to act, a majority of the Board of Directors shall designate the
person or persons to preside at meetings of Shareholders and the Board of
Directors.
Section 13. Notice of Special Meetings. Notice of each special
meeting of the Board of Directors shall be given by the Secretary as hereinafter
provided. Each notice shall state the time and place of the meeting and shall be
delivered to each director, either personally, by courier or by telephone or
other standard form of telecommunication, at least twenty-four (24) hours before
the time at which the meeting is to be held, or by first-class mail, postage
prepaid, addressed to the director at his residence or usual place of business,
and mailed at least two (2) days before the day on which the meeting is to be
held.
REPUBLIC FIRST BANCORP | 89
Section 14. Waiver of Notice of Meetings. Notice of any
special meeting need not be given to any director who shall, either before or
after the meeting, sign a written waiver or notice that is filed with the
records of the meeting or who shall attend the meeting.
Section 15. Quorum and Voting. A majority of the members or
the entire Board of Directors shall be present in person at any meeting of the
Board so as to constitute a quorum for the transaction of business at the
meeting, and except as otherwise expressly required by statute, the
Corporation's Articles of Incorporation, these By-Laws, or any applicable
statute, the act of a majority of the directors present at any meeting at which
a quorum is present shall be the act of the Board. In the absence of a quorum at
any meeting of the Board, a majority of the directors present may adjourn the
meeting to another time and place until a quorum shall be present. Notice of the
time and place of any adjourned meeting shall be given to the directors who were
not present at the time of the adjournment and, unless the time and place were
announced at the meeting at which the adjournment was taken, to the other
directors. At any adjourned meeting at which a quorum is present, any business
may be transacted that might have been transacted at the meeting as originally
called.
Section 16. Organization. The Board of Directors shall
designate a Chairman of the Board, who shall preside at each meeting of the
Board. In the absence or inability of the Chairman of the Board to act, or at
the Chairman's request, the President, or, in his absence or inability to act,
another director chosen by a majority of the directors present, shall act as
chairman of the meeting and preside at the meeting. The Secretary (or, in his
absence or inability to act, any person appointed by the chairman) shall act as
secretary of the meeting and keep the minutes of the meeting.
Section 17. Committees. The Board of Directors may designate
one (1) or more committees of the Board of Directors including, but not limited
to, an Executive Committee, Audit Committee, Compensation Committee and
Nominating Committee, each consisting of two (2) or more directors. To the
extent provided in the resolution creating such committees, and permitted by
law, the committee or committees shall have and may exercise the powers of the
Board of Directors in the management and conduct of the business and affairs of
the Corporation and may authorize the seal of the Corporation to be affixed to
all papers that may require it. Any committee or committees shall have the name
or names determined from time to time by resolution adopted by the Board of
Directors. Each committee shall keep regular minutes of its meetings and provide
those minutes to the Board of Directors when required. The members of a
committee present at any meeting, whether or not they constitute a quorum, may
appoint a director to act in the place of the absent member.
Section 18. Written Consent of Directors in Lieu of Meeting.
Any action required or permitted to be taken at any meeting of the Board of
Directors or of any committee of the Board may be taken without a meeting if all
members of the Board or committee, as the case may be, consent thereto in
writing, and the writing or writings are filed with the minutes of the
proceedings of the Board or committee.
Section 19. Telephone Conference. Members of the Board of
Directors or any committee of the Board may participate in any Board or
committee meeting by means of a conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other at the same time. Participation by such means shall constitute
presence in person at the meeting.
Section 20. Compensation. Each director shall be entitled to
receive compensation, if any, as may from time to time be fixed by the Board of
Directors, including a fee for each meeting of the Board or any committee
thereof, regular or special, he attends. Directors may also be reimbursed by the
Corporation for all reasonable expenses incurred in traveling to and from the
place of a Board or committee meeting. Directors who are also officers of the
Corporation and/or any of its subsidiaries shall not receive compensation in
consideration of their services as a director.
ARTICLE III
OFFICERS, AGENTS AND EMPLOYEES
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Section 1. Number and Qualifications. The officers of the
Corporation shall be a Chief Executive Officer or Officers, a President, a
Secretary and a Treasurer, each of whom shall be elected by the Board of
Directors. The Board of Directors may elect or appoint one (1) or more Vice
Presidents and may also appoint any other officers, offices, agents and
employees as it deems necessary or proper. Any two (2) or more offices may be
held by the same person, except the offices of President and Vice President,
but, unless otherwise authorized by the Board of Directors or an executive
committee thereof, no officer shall execute, acknowledge or verify any
instrument in more than one (1) capacity. Officers shall be elected by the Board
of Directors each year at its organizational meeting held after the annual
meeting of shareholders and until his successor shall have been duly elected and
shall have qualified, or until his death, or until he shall have resigned or
have been removed, as provided in these By-Laws. The Board of Directors may from
time to time elect, or delegate to the Chairman of the Board or the President
the power to appoint, such officers (including, but not limited to, one or more
Assistant Vice Presidents, one or more Assistant Treasurers and one or more
Assistant Secretaries) and such agents
REPUBLIC FIRST BANCORP | 90
as may be necessary or desirable for the business of the Corporation. Such other
officers and agents shall have such duties and shall hold their offices for such
terms as may be prescribed by the Board or by the appointing authority.
Section 2. Resignations. Any officer of the Corporation may
resign at any time by giving written notice of his resignation to the Board of
Directors, the Chairman of the Board, the President or the Secretary. Any
resignation shall take effect at the time specified therein or, if the time when
it shall become effective is not specified therein, immediately upon its formal
acceptance by the Board of Directors. Other than as specifically provided
herein, the acceptance of a resignation shall not be necessary to make it
effective unless otherwise stated in the resignation.
Section 3. Removal of Officer, Agent or Employee. Any officer,
agent or employee of the Corporation may be removed by the Board of Directors
with or without cause at any time, and the Board may delegate the power of
removal as to agents and employees not elected or appointed by the Board of
Directors. Removal shall be without prejudice to the person's contract rights,
if any, but the appointment of any person as an officer, agent or employee of
the Corporation shall not of itself create contract rights.
Section 4. Vacancies. A vacancy in any office, whether arising
from death, resignation, removal or any other cause, may be filled for the
unexpired portion of the term of the office that shall be vacant, in the manner
prescribed in these By-Laws, for the regular election or appointment to the
office.
Section 5. Compensation. The compensation of the officers of
the Corporation shall be fixed by the Board of Directors or a designated
committee thereof, but this power may be delegated to any officer with respect
to other officers under his control.
Section 6. Bonds or Other Security. If required by the Board,
any officer, agent or employee of the Corporation shall give a bond or other
security for the faithful performance of his duties, in an amount and with any
surety or sureties as the Board may require.
Section 7. President. The President shall have the powers and
perform the duties that the Board or the Chairman of the Board may from time to
time prescribe.
Section 8. Vice President. Each Vice President shall have the
powers and perform the duties that the Board of Directors, the Chairman of the
Board or the President may from time to time prescribe.
Section 9. Treasurer. Unless otherwise designated by the Board
of Directors or an executive committee thereof, the Treasurer shall be the Chief
Financial Officer and Chief Accounting Officer of the Corporation. Subject to
the provisions of any contract that may be entered into with any custodian
pursuant to authority granted by the Board of Directors, the Treasurer shall
have charge of all receipts and disbursements of the Corporation and shall have
or provide for the custody of the Corporation's funds and securities; he shall
have full authority to receive and give receipts for all money due and payable
to the Corporation, and to endorse checks, drafts, and warrants, in its name and
on its behalf and to give full discharge for the same; he shall deposit all
funds of the Corporation, except those that may be required for current use, in
such banks or other places of deposit as the Board of Directors may from time to
time designate; and, in general, he shall perform all duties incident to the
office of Treasurer and such other duties as may from time to time be assigned
to him by the Board of Directors, the Chairman of the Board or the President.
Section 10. Secretary. The Secretary shall:
(a) keep or cause to be kept in one or more books provided for
the purpose, the minutes of all meetings of the Board of Directors, the
committees of the Board and the shareholders;
(b) see that all notices are duly given in accordance with the
provisions of these By-Laws and as required by law;
(c) be custodian of the records and the seal of the
corporation and affix and attest the seal to all stock certificates of the
Corporation (unless the seal of the Corporation on such certificates shall be a
facsimile, as hereinafter provided) and affix and attest the seal to all other
documents to be executed on behalf of the Corporation under its seal;
(d) see that the books, reports, statements, certificates and
other documents and records required by law to be kept and filed are properly
kept and filed; and
(e) in general, perform all the duties incident to the office
of Secretary and such other duties as from time to time may be assigned to him
by the Board of Directors, the Chairman of the Board or the President.
REPUBLIC FIRST BANCORP | 91
Section 11. Delegation of Duties. In case of the absence of
any officer of the Corporation, or for any other reason that the Board of
Directors may deem sufficient, the Board of Directors may provisionally confer
the powers or duties, or any of them, of such officer upon any other officer or
upon any director.
ARTICLE IV
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STOCK
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Section 1. Stock Certificates. Each holder of stock of the
Corporation shall be entitled, upon specific written request to such person as
may be designated by the Corporation, to have a certificate or certificates, in
a form approved by the Board, representing the number of shares of stock of the
Corporation owned by him; provided, however, that certificates for fractional
shares will not be delivered in any case. The certificates representing shares
of stock shall be signed by or in the name of the Corporation by the Chairman of
the Board, the President or a Vice President and by the Secretary, an Assistant
Secretary, the Treasurer or an Assistant Treasurer and sealed with the seal of
the Corporation. Any or all of the signatures or the seal on the certificate may
be facsimiles. 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 the certificate is
issued, it may be issued by the Corporation with the same effect as if the
officer, transfer agent or registrar was still in office at the date of issue.
Section 2. Books of Account and Record of Shareholders. There
shall be kept at the principal executive office of the Corporation correct and
complete books and records of account of all the business and transactions of
the Corporation. There shall be made available, upon the request of any
shareholder, in accordance with Pennsylvania law, a record containing the number
of shares of stock issued during a specified period not to exceed twelve (12)
months and the consideration received by the Corporation for each such share.
Section 3. Transfers of Shares. Transfers of shares of stock
of the Corporation shall be made on the stock records of the Corporation only by
the registered holder of the shares, or by his attorney thereunto authorized by
power of attorney duly executed and filed with the Secretary or with a transfer
agent or transfer clerk, and on surrender of the certificate or certificates, if
issued, for the shares properly endorsed or accompanied by a duly executed stock
transfer power and the payment of all taxes thereon. Except as otherwise
provided by law, the Corporation shall be entitled to recognize the exclusive
right of a person in whose name any share or shares stand on the record of
shareholders as the owner of the share or shares for all purposes, including,
with limitation, the rights to receive dividends or other distributions and to
vote as the owner, and the Corporation shall not be bound to recognize any
equitable or legal claim to or interest in any such share or shares on the part
of any other person.
Section 4. Regulations. The Board of Directors may make any
additional rules and regulations, not consistent with these By-Laws, as it may
deem expedient concerning the issue, transfer and registration of certificates
for shares of stock of the Corporation. The Board may appoint, or authorize any
officer or officers to appoint, one or more transfer agents or one or more
transfer clerks and one or more registrars and may require all certificates for
shares of stock to bear the signature or signatures of any of them.
Section 5. Lost, Destroyed or Mutilated Certificates. The
holder of any Certificate representing shares of stock of the Corporation shall
immediately notify the Corporation of its loss, destruction or mutilation and
the Corporation may issue a new certificate of stock in the place of any
certificate issued by it that has been alleged to have been lost or destroyed or
that shall have been mutilated. The Board may, in its discretion, require the
owner (or his legal representative) of a lost, destroyed or mutilated
certificate to give to the Corporation a bond in a sum, limited or unlimited,
and in a form and with any surety or sureties, as the Board in its absolute
discretion shall determine, to indemnify the Corporation against any claim that
may be made against it on account of the alleged loss or destruction of any such
certificate, or issuance of a new certificate. Anything herein to the contrary
notwithstanding, the Board of Directors, in its absolute discretion, may refuse
to issue any such new certificate, except pursuant to legal proceedings under
the laws of the Commonwealth of Pennsylvania.
Section 6. Fixing of Record Date for Dividends, Distributions,
etc. The Board may set, in advance, a date for the payment of any dividend or
the making of any distribution or the allotment of rights to subscribe for
securities of the Corporation, or for the delivery of evidences of rights or
evidences of interests arising out of any change, conversion or exchange of
common stock or other securities, as the record date for the determination of
the shareholders entitled to receive any such dividend, distribution, allotment,
rights or interests, and in such case only the shareholders of record at the
time so set shall be entitled to receive such dividend, distribution, allotment,
rights or interests. Such record date shall not be more than ninety (90) days or
fewer than ten (10) days before the date of the particular action to be taken.
REPUBLIC FIRST BANCORP | 92
Section 7. Information to Shareholders and Others. Any
shareholder of the Corporation or his agent may inspect, during the
Corporation's usual business hours, the Corporation's By-Laws, minutes of the
proceedings of its shareholders, annual statements of its affairs and voting
trust agreements on file at its principal office.
ARTICLE V
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INDEMNIFICATION AND INSURANCE
-----------------------------
Section 1. Scope of Indemnification. The corporation shall
indemnify an indemnified representative against any liability incurred in
connection with any proceeding in which the indemnified representative may be
involved as a party or otherwise by reason of the act that such person is or was
serving in an indemnified capacity, including, without limitation, liabilities
resulting from any actual or alleged breach or neglect of duty, error,
misstatement or misleading statement, negligence, gross negligence or act giving
rise to strict or products liability, except:
(1) where such indemnification is expressly prohibited by
applicable law;
(2) where the conduct of the indemnified representative has
been finally determined pursuant to Section 6 or otherwise:
(i) to constitute willful misconduct or recklessness
within the meaning of 15 Pa.C.S. 513(b) and 1746(b) or any superseding provision
of law sufficient in the circumstances to bar indemnification against
liabilities arising from the conduct; or
(ii) to be based upon or attributable to the receipt
by the indemnified representative from the corporation of a personal benefit to
which the indemnified representative is not legally entitled; or
(iii) to the extent such indemnification has been
finally determined in a final adjudication pursuant to Section 6 to be otherwise
unlawful.
(3) with respect to expenses or the payment of profits arising
from the purchase or sale of securities of the corporation in violation of
Section 16(b) of the Securities Exchange Act of 1934;
(4) expenses or liabilities of any type whatsoever (including,
but not limited to, judgments, fines and amounts paid in settlement) which have
been paid directly to, or for the benefit of, such person by directors'
liability insurance whose premiums are paid for by the corporation or by an
individual or entity other than such director or officer;
(5) amounts paid in settlement of any proceeding without the
written consent of the corporation or;
The Board of Directors of the corporation is hereby authorized, at any time by
resolution, to add to the above list of exceptions from the right of
indemnification, but any such additional exception shall not apply with respect
to any event, act or omission which has occurred prior to the date that the
Board of Directors in fact adopts such resolution. Any such additional exception
may, at any time after its adoption, be amended, supplemented, waived or
terminated by further resolution of the Board of Directors of the corporation.
If an indemnified representative is entitled to
indemnification in respect of a portion, but not all, of any liabilities to
which such person may be subject, the corporation shall indemnify such
indemnified representative to the maximum extent for such portion of the
liabilities.
The termination of a proceeding by judgment, order, settlement
or conviction or upon a plea of nolo contendere or its equivalent shall not of
itself create a presumption that the indemnified representative is not entitled
to indemnification.
For purposes of this Article:
(1) "indemnified capacity" means any and all past, present and
future service by an indemnified representative in one or more
capacities as a director, officer, employee, or agent of the
corporation, or at the request of the corporation, as a director,
officer, employee, agent, fiduciary or trustee of another corporation,
partnership, joint venture, trust, employee benefit plan or other
entity or enterprise;
(2) "indemnified representative" means any and all directors
and officers of the corporation and any other person designated as an
indemnified representative by the Board of Directors of the corporation
(which may, but not, include any person serving at the request of the
corporation, as a director, officer, employee, agent,
REPUBLIC FIRST BANCORP | 93
fiduciary or trustee of another corporation, partnership, joint
venture, trust, employee benefit plan or other entity or enterprise):
(3) "liability" means any damage, judgment, amount paid in
settlement, fine, penalty, punitive damages, excise tax assessed with
respect to an employee benefit plan, or cost or expense, of any nature
(including, without limitation, attorneys' fees and disbursements); and
(4) "proceeding" means any threatened, pending or completed
action, suit, appeal or other proceeding of any nature, whether civil,
criminal, administrative or investigative, whether formal or informal,
and whether brought by or in the right of the corporation, a class of
its security holders or otherwise.
(5) "to the fullest extent permitted by applicable law" means
the maximum extent permitted by public policy, common law or statute.
Any person covered by this Article may, to the fullest extent permitted
by applicable law, elect to have the right to indemnification or to
advancement or reimbursement of expenses, interpreted, at such person's
option (i) on the basis of the applicable law on the date this Article
was approved by shareholders, or (ii) on the basis of the applicable
law in effect at the time of the occurrence of event or events giving
rise to the proceeding, or (iii) on the basis of the applicable law in
effect at the time indemnification or advancement or reimbursement of
expenses is sought.
(6) The corporation shall have the right to appoint the
attorney for an indemnified representative provided such appointment is
not unreasonable under the circumstances.
Section 2. Proceedings Initiated By Indemnified
Representatives. Notwithstanding any other provision of this Article, the
corporation shall not indemnify under this Article an indemnified representative
for any liability incurred in a proceeding initiated (which shall not be deemed
to include counterclaims or affirmative defenses) or participated in as an
intervenor or amicus curiae by the person seeking indemnification unless such
initiation of or participation in the proceeding is authorized, either before or
after its commencement, by the affirmative vote of a majority of the directors
in office. This section does not apply to a reimbursement of expenses incurred
in successfully prosecuting or defending an arbitration under Section 6 or
otherwise successfully prosecuting or defending the rights of an indemnified
representative granted by or pursuant to this Article.
Section 3. Advancing Expenses. The corporation shall pay the
expenses (including attorneys' fees and disbursements) incurred in good faith by
an indemnified representative in advance of the final disposition of a
proceeding described in Section 1 or the initiation of or participation in which
is authorized pursuant to Section 2 upon receipt of an undertaking by or on
behalf of the indemnified representative to repay the amount if it is ultimately
determined pursuant to Section 6 that such person is not entitled to be
indemnified by the corporation pursuant to this Article. The financial ability
of an indemnified representative to repay an advance shall not be a prerequisite
to the making of such advance.
Section 4. Securing of Indemnification Obligations. To further
effect, satisfy or secure the indemnification obligations provided herein or
otherwise, the corporation may maintain insurance, obtain a letter of credit,
act as self-insurer, create a reserve, trust, escrow, cash collateral or other
fund or account, enter into indemnification agreements, pledge or grant a
security interest in any assets or properties of the corporation, or use any
other mechanism or arrangement whatsoever in such amounts, at such costs, and
upon such other terms and conditions as the Board of Directors shall deem
appropriate. Absent fraud, the determination of the Board of Directors with
respect to such amounts, costs, terms and conditions shall be conclusive against
all security holders, officers and directors and shall not be subject to void
ability.
Section 5. Payment of Indemnification. An indemnified
representative shall be entitled to indemnification within thirty (30) days
after a written request for indemnification has been delivered to the Secretary
of the corporation.
Section 6. Arbitration. Any dispute related to the right to
indemnification, contribution or advancement of expenses as provided under this
Article, except with respect to indemnification for liabilities arising under
the Securities Act of 1933 that the corporation has undertaken to submit to a
court for adjudication, shall be decided only by arbitration in the metropolitan
area in which the principal executive offices of the corporation are located at
the time, in accordance with the commercial arbitration rules then in effect of
the American Arbitration Association, before a panel of three arbitrators, one
of whom shall be selected by the corporation, the second of whom shall be
selected by the indemnified representative and third of whom shall be selected
by the other two arbitrators. In the absence of the American Arbitration
Association, or if for any reason arbitration under the arbitration rules of the
American Arbitration Association cannot be initiated, or if one of the parties
fails or refuses to select an arbitrator or if the arbitrators selected by the
corporation and the indemnified representative cannot agree on the selection of
the third arbitrator with thirty (30) days after such time as the
REPUBLIC FIRST BANCORP | 94
corporation and the indemnified representative have each been notified of the
selection of the other's arbitrator, the necessary arbitrator or arbitrators
shall be selected by the presiding judge of the court of general jurisdiction in
such metropolitan area.
The party or parties challenging the right of an indemnified representative to
the benefits of this Article shall have the burden of proof.
The corporation shall reimburse an indemnified representative
for the expenses (including attorneys' fees and disbursements) incurred
unsuccessfully prosecuting or defending such arbitration.
Any award entered by the arbitrators shall be final, binding
and nonappealable and judgment may be entered thereon by any party in accordance
with applicable law in any court of competent jurisdiction, except that the
corporation shall be entitled to interpose as a defense in any such judicial
enforcement proceeding any prior final judicial determination adverse to the
indemnified representative under Section 7.01(a)(2) in a proceeding not directly
involving indemnification under this Article. This arbitration provision shall
be specifically enforceable.
Section 7. Contribution. If the indemnification provided for
in this Article or otherwise is unavailable for any reason in respect of any
liability or portion thereof, the corporation shall contribute to the
liabilities to which the indemnified representative may be subject in such
proportion as is appropriate to reflect the intent of this Article or otherwise.
Section 8. Mandatory Indemnification of Directors, Officers,
Etc. To the extent that an authorized representative of the corporation has been
successful on the merits or otherwise in defense of any action or proceeding
referred to in 15 Pa.C.S. 1741 or 1742 or in defense of any claim, issue or
matter therein, such person shall be indemnified against expenses (including
attorneys' fees and disbursements) actually and reasonably incurred by such
person in connection therewith.
Section 9. Optional Indemnification. The corporation may, to
the fullest extent permitted by applicable law, indemnify and advance or
reimburse expenses for, persons in all situations other than that covered by
this Article.
Section 10. Contract Rights; Amendment or Repeal. All rights
under this Article shall be deemed a contract between the corporation and the
indemnified representative pursuant to which the corporation and each
indemnified representative intend to be legally bound. Any repeal, amendment or
modification hereof shall be prospective only and shall not affect any rights or
obligations then existing.
Section 11. Scope of Article. The rights granted by this
Article shall not be deemed exclusive of any other rights to which those seeking
indemnification, contribution or advancement of expenses may be entitled under
any statute, agreement, vote of shareholders or disinterested directors or
otherwise both as to action in an indemnified capacity and as to action in any
other capacity. The indemnification, contribution and advancement of expenses
provided by or granted pursuant to this Article shall continue as to a person
who has ceased to be an indemnified representative in respect of matters arising
prior to such time, and shall inure to the benefit of the heirs, executors,
administrators and personal representatives of such a person.
Section 12. Reliance of Provisions. Each person who shall act
as an indemnified representative of the corporation shall be deemed to be doing
so in reliance upon the rights provided in this Article.
Section 13. Interpretation. The provisions of this Article are
intended to constitute By-Laws authorized by 15 Pa.C.S. 513 and 1746.
ARTICLE VI
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SEAL
-----
The seal of the Corporation shall be circular in form and shall bear the name of
the Corporation, the year of its incorporation, the words "Corporate Seal" and
"Commonwealth of Pennsylvania" and any emblem or device approved by the Board of
Directors. The seal may be used by causing it or a facsimile to be impressed or
affixed or in any other manner reproduced, or by placing the word "(seal)"
adjacent to the signature of the authorized officer of the Corporation.
ARTICLE VII
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FISCAL YEAR
-----------
REPUBLIC FIRST BANCORP | 95
Section 1. Fiscal Year. The Corporation's fiscal year shall be
fixed by the Board of Directors from time to time.
ARTICLE VIII
------------
DIVIDENDS
---------
Dividends upon any class of shares of the capital stock of the
Corporation may be declared as provided by and subject to the restrictions
contained in the laws of the Commonwealth of Pennsylvania and the Articles of
Incorporation of the corporation, as the same or either of them may be amended
from time to time, but only as and when and of the character and to the amount
that the Board of Directors of the Corporation may from time to time deem
advisable and only in the manner contemplated herein.
ARTICLE IX
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EMERGENCY BY-LAW
----------------
In the event of an emergency declared by the President of the
United States or the person performing his functions, the officers and employees
of this Corporation will continue to conduct the affairs of the Corporation
under such guidance from the directors as may be available except as to matters
which by statute require specific approval of the Board and subject to
conformance with any governmental directives during the emergency. The Board
shall have the power, in the absence of disability of any officer, or upon the
refusal of any officer to act, to delegate and prescribe such office's power and
duties to any other officer, or to any director, for the time being. In the
event of a state of disaster of sufficient severity to prevent the conduct and
management of the affairs and business of this Corporation by its directors and
officers as contemplated by these By-Laws, any three or more available members
of the then incumbent Executive Committee shall constitute a quorum of that
committee for the full conduct and management of the affairs and business of the
Corporation in accordance with this emergency By-Law. In the event of the
unavailability, at such time, of a minimum of three members of the then
incumbent Executive Committee, any three available directors shall constitute
the management of the affairs and business of the corporation in accordance with
the foregoing provisions of this section. This section shall be subject to
implementation by resolutions of the Board passed from time to time for that
purpose, and any provision of these By-Laws other than this section and any
resolutions which are contrary to the provisions of this section or to the
provisions of any such implementary resolutions shall be suspended until it
shall be determined by any interim Executive Committee acting under this section
that it shall be to the advantage of this Corporation to resume the conduct and
management of its affairs and business under all of the other provisions of
these By-Laws. During an emergency resulting in any authorized place of business
of this Corporation being unable to function, the business ordinarily conducted
at such location shall be relocated elsewhere in suitable quarters, in addition
to or in lieu of the location heretofore mentioned, as may be designated by the
Board or by the Executive Committee or by such persons as are then, in
accordance with resolutions adopted from time to time by the Board dealing with
the exercise of authority in the time of such emergency, conducting the affairs
of this Corporation. Any temporarily relocated place of business of this
Corporation shall be returned to its legally authorized location as soon as
practicable and such temporary place of business shall then be discontinued.
ARTICLE X
---------
AMENDMENTS
----------
These By-Laws may be amended or repealed by the affirmative
vote of a majority of the Board of Directors at any regular or special meeting
of the Board of Directors, or by the vote of shareholders holding at least
seventy-five (75%) percent of the total aggregate outstanding shares of the
Corporation's capital stock, at an annual or special meeting called for such
purpose.
REPUBLIC FIRST BANCORP | 96