EXHIBIT 3.2
DA CONSULTING GROUP, INC.
A TEXAS CORPORATION
BYLAWS
ARTICLE 1
OFFICES
Section 1.1. Registered Office. The registered office of the Company
within the State of Texas shall be located at either (i) the principal place of
business of the Company in the State of Texas or (ii) the office of the
corporation or individual acting as the Company's registered agent in Texas.
Section 1.2. The Company may, in addition to its registered office in
the State of Texas, have such other offices and places of business, both within
and without the State of Texas, as the Board of Directors of the Company (the
"Board") may from time to time determine or as the business and affairs of the
Company may require.
ARTICLE 2
SHAREHOLDER MEETINGS
Section 2.1. Annual Meetings. Annual meetings of shareholders
shall be held at a place and time on any weekday which is not a holiday and
which is not more than 120 days after the end of the fiscal year of the Company
as shall be designated by the Board and stated in the notice of the meeting, at
which the shareholders shall elect the directors of the Company and transact
such other business as may properly be brought before the meeting.
Section 2.2. Special Meetings. Special meetings of the
shareholders, for any purpose or purposes, unless otherwise prescribed by law or
by the Articles of Incorporation, (i) may be called by the Chairman of the Board
or the President and (ii) shall be called by the President or Secretary at the
request in writing of a majority of the Board or shareholders owning capital
stock of the Company representing at least fifty percent (50%) of the votes of
all capital stock of the Company entitled to vote thereat. Such request of the
Board or the shareholders shall state the purpose or purposes of the proposed
meeting.
Section 2.3. Notices. Written or printed notice of each
shareholders' meeting stating the place, date and hour of the meeting shall be
given to each shareholder of record entitled to vote thereat by or at the
direction of the President, the Secretary or the officer or person calling such
meeting not less than ten (10) nor more than sixty (60) days before the date
of the meeting. If said notice is for a shareholders' meeting other than an
annual meeting, it shall in addition state the purpose or purposes for which
said meeting is called, and the business transacted at such meeting shall be
limited to the matters so stated in said notice and any matters reasonably
related thereto. If mailed, such notice shall be deemed to be delivered when
deposited in the United States mail addressed to each shareholder at his address
as it appears on the stock transfer books of the Company, with postage thereon
prepaid.
Section 2.4. Quorum. The presence at a shareholders' meeting of
the holders, present in person or represented by proxy, of capital stock of the
Company representing a majority of the votes of all capital stock of the Company
entitled to vote thereat shall constitute a quorum at such meeting for the
transaction of business except as otherwise provided by law, the Articles of
Incorporation or these Bylaws. If a quorum shall not be present or represented
at any meeting of the shareholders, the holders of capital stock of the Company
representing a majority of the votes of all capital stock of the Company
entitled to vote thereat and present in person or represented by proxy shall
have the power to adjourn the meeting from time to time, without notice other
than announcement at the meeting, until a quorum shall be present or
represented. At any such reconvened meeting at which a quorum shall be present
or represented, any business may be transacted which might have been transacted
at the meeting as originally notified. If the adjournment is for more than
thirty (30) days, or if after the adjournment a new record date is fixed for the
reconvened meeting, a notice of said reconvened meeting shall be given to each
shareholder entitled to vote at said meeting. The shareholders present at a
duly convened meeting may continue to transact business until adjournment,
notwithstanding the withdrawal of enough shareholders to leave less than a
quorum.
Section 2.5. Voting of Shares.
2.5.1. Voting Lists. The officer or agent who has charge of the
stock transfer books of the Company shall prepare, at least ten (10) days before
every meeting of shareholders, a complete list of the shareholders entitled to
vote thereat arranged in alphabetical order and showing the address and the
number of shares registered in the name of each shareholder. Such list shall be
open to the examination of any such shareholder, for any purpose germane to the
meeting, during ordinary business hours for a period of at least ten (10) days
prior to the meeting, either at a place within the city where the meeting is to
be held, which place shall be specified in the notice of the meeting, or, if not
so specified, at the place where the meeting is to be held and at the registered
office of the Company. The list shall also be produced and kept at the time and
place of the meeting during the whole time thereof, and may be inspected by any
shareholder who is present. The original stock transfer books shall be prima
facie evidence as to who are the shareholders entitled to examine such list or
transfer books or to vote at any meeting of shareholders. Failure to comply with
the requirements of this Section shall not affect the validity of any action
taken at said meeting.
2.5.2. Votes Per Share. Unless otherwise provided by law or in
the Articles of Incorporation, each shareholder shall be entitled to one vote,
in person or by proxy, on
-2-
each matter submitted to a vote at a meeting of the shareholders, for each share
of capital stock held by such shareholder.
2.5.3. Proxies. Every shareholder entitled to vote at a meeting
or to express consent or dissent without a meeting or a shareholder's duly
authorized attorney-in-fact may authorize another person or persons to act for
him by proxy. Each proxy shall be in writing, executed by the shareholder group,
the proxy or by his duly authorized attorney. No proxy shall be voted on or
after eleven (11) months from its date, unless the proxy provides for a longer
period. Each proxy shall be revocable unless expressly provided therein to be
irrevocable and unless otherwise made irrevocable by law.
2.5.4. Required Vote. When a quorum is present at any meeting,
the vote of the holders of capital stock of the Company representing a majority
of the votes of all capital stock of the Company entitled to vote thereat and
present in person or represented by proxy shall decide any question brought
before such meeting, unless the question is one upon which, by express provision
of law or the Articles of Incorporation or these Bylaws, a different vote is
required, in which case such express provision shall govern and control the
decision of such question.
2.5.5. Consents in Lieu of Meeting. Any action required to be
or which may be taken at any meeting of shareholders may be taken without a
meeting, without prior notice and without a vote, if a consent in writing,
setting forth the action so taken, shall be signed by the holder or holders of
shares having not less than the minimum number of votes that would be necessary
to take such action at a meeting at which the holders of all shares entitled to
vote on the action were present and voted. Such signed consent shall have the
same force and effect as a unanimous vote of shareholders and shall be filed
with the minutes of proceedings of the shareholders.
ARTICLE 3
DIRECTORS
Section 3.1. Purpose. The business and affairs of the Company
shall be managed by or under the direction of the Board, which may exercise all
such powers of the Company and do all such lawful acts and things as are not by
law, the Articles of Incorporation or these Bylaws directed or required to be
exercised or done by the shareholders. Directors need not be shareholders or
residents of the State of Texas.
Section 3.2. Number. The number of directors constituting the
Board shall never be less than one (1) and shall be determined by resolution of
the Board, except for the number of directors constituting the initial Board,
which number is fixed by the Articles of Incorporation.
-3-
Section 3.3. Election. Directors shall be elected by the shareholders
by plurality vote at each annual meeting of shareholders, except as hereinafter
provided, and each director so elected shall hold office until his successor has
been duly elected and qualified.
Section 3.4. Vacancies and Newly-Created Directorships.
3.4.1. Vacancies. Any vacancy occurring in the Board may be
filled in accordance with subsection 3.4.3 or may be filled by the affirmative
vote of a majority of the remaining directors though less than a quorum of the
Board. A director elected to fill a vacancy shall be elected for the unexpired
term of his predecessor in office.
3.4.2. Newly-Created Directorships. A directorship to be filled
by reason of an increase in the number of directors may be filled in accordance
with subsection 3.4.3 or may be filled by the Board for a term of office
continuing only until the next election of one or more directors by the
shareholders; provided that the Board may not fill more than two such
directorships during the period between any two successive annual meetings of
shareholders.
3.4.3. Election by Shareholders. Any vacancy occurring in the
Board or any directorship to be filled by reason of an increase in the number of
directors may be filled by election at an annual or special meeting of
shareholders called for that purpose.
Section 3.5. Removal. Any director or the entire Board of Directors
may be removed, but only for cause, by the holders of a majority of the shares
then entitled to vote at an election of directors.
Section 3.6. Compensation. Unless otherwise restricted by the
Articles of Incorporation or these Bylaws, the Board shall have the authority to
fix the compensation of directors. The directors may be reimbursed for their
expenses, if any, of attendance at each meeting of the Board and may be paid
either a fixed sum for attendance at each meeting of the Board or a stated
salary as director. No such payment shall preclude any director from serving the
Company in any other capacity and receiving compensation therefor. Members of
committees of the Board may be allowed like compensation for attending committee
meetings.
ARTICLE 4
BOARD MEETINGS
Section 4.1. Annual Meetings. The Board shall meet as soon as
practicable after the adjournment of each annual shareholders' meeting at the
place of such shareholders' meeting. No notice to the directors shall be
necessary to legally convene this meeting, provided a quorum is present.
-4-
Section 4.2 Regular Meetings. Regularly scheduled, periodic
meetings of the Board may be held without notice at such times and places as
shall from time to time be determined by resolution of the Board and
communicated to all directors.
Section 4.3. Special Meetings. Special meetings of the Board (i)
may be called by the Chairman of the Board or President and (ii) shall be called
by the President or Secretary on the written request of two directors or the
sole director, as the case may be. Notice of each special meeting of the Board
shall be given, either personally or as hereinafter provided, to each director
at least (i) twenty-four (24) hours before the meeting if such notice is
delivered personally or by means of telephone, telegram, telex or facsimile
transmission delivery; (ii) two days before the meeting if such notice is
delivered by a recognized express delivery service; and (iii) three days before
the meeting if such notice is delivered through the United States mail. Any and
all business may be transacted at a special meeting which may be transacted at a
regular meeting of the Board. Except as may be otherwise expressly provided by
law, the Articles of Incorporation or these Bylaws, neither the business to be
transacted at, nor the purpose of, any special meeting need be specified in the
notice or waiver of notice of such meeting.
Section 4.4. Quorum, Required Vote. A majority of the directors
shall constitute a quorum for the transaction of business at any meeting of the
Board, and the act of a majority of the directors present at any meeting at
which there is a quorum shall be the act of the Board, except as may be
otherwise specifically provided by law, the Articles of Incorporation or these
Bylaws. If a quorum shall not be present at any meeting, a majority of the
directors present may adjourn the meeting from time to time, without notice
other than announcement at the meeting, until a quorum is present.
Section 4.5. Consent In Lieu of Meeting. Unless otherwise
restricted by the Articles of Incorporation or these Bylaws, any action required
or permitted to be taken at any meeting of the Board or any committee thereof
may be taken without a meeting, if a consent in writing, setting forth the
action so taken, is signed by all the members of the Board or committee, as the
case may be. Such signed consent shall have the same force and effect as a
unanimous vote at a meeting and shall be filed with the minutes of proceedings
of the Board or committee.
ARTICLE 5
COMMITTEES OF DIRECTORS
Section 5.1. Establishment; Standing Committees. The Board may by
resolution establish, name or dissolve one or more committees, each committee to
consist of one or more of the directors. Each committee, to the extent provided
in such resolution, shall have and may exercise all of the authority of the
Board of Directors, except that no such committee shall have the authority of
the Board of Directors in reference to amending the Articles of Incorporation,
approving a merger or consolidation, recommending to the shareholders the sale,
lease or
-5-
exchange of all or substantially all of the property and assets of the
corporation otherwise than in the usual and regular course of business,
recommending to the shareholders a voluntary dissolution of the corporation or a
revocation thereof, amending, altering, or repealing the bylaws of the
corporation or adopting new bylaws for the corporation, filling vacancies in the
Board or any such committee, filling any directorship to be filled by reason of
an increase in the number of directors, electing or removing officers or members
of any such committee, fixing the compensation of any member of such committee
or altering or repealing any resolution of the Board which by its term provides
that it shall not be so amendable or repealable, and, unless such resolution
expressly so provides, no such committee shall have the power or authority to
declare a dividend or to authorize the issuance of shares of the corporation.
Each committee shall keep regular minutes of its meetings and report the same to
the Board when required.
5.1.1. Audit Committee. The Audit Committee shall, from time to
time and to the extent it exists, but no less than two times per year, meet to
review and monitor the financial and cost accounting practices and procedures of
the Company, review the qualifications of the Company's independent auditors,
make recommendations to the Board of Directors regarding the selection of
independent auditors, review the scope, fees and results of any audit, review
non-audit services and related fees provided by the independent auditors, and to
report its findings and recommendations to the Board for final action. The Audit
Committee shall not be empowered to approve any corporate action, of whatever
kind or nature, and the recommendations of the Audit Committee shall not be
binding on the Board, except when, pursuant to the provisions of Section 5.2 of
these Bylaws, such power and authority have been specifically delegated to such
committee by the Board by resolution. In addition to the foregoing, the specific
duties of the Audit Committee shall be determined by the Board by resolution.
5.1.2. Compensation Committee. The Compensation Committee
shall, from time to time and to the extent it exists, meet to review the various
compensation plans, policies and practices of the Company, and to report its
findings and recommendations to the Board for final action. The Compensation
Committee shall be responsible for the administration of all salary for the
executive officers of the Company, including bonuses, and the administration of
the Company's compensation programs, including the grant of options under the
Company's 1997 Stock Option Plan. The Compensation Committee shall not be
empowered to approve any other corporate action, of whatever kind or nature, and
any recommendations of the Compensation Committee shall not be binding on the
Board, except when, pursuant to the provisions of Section 5.2 of these Bylaws,
such power and authority have been specifically delegated to such committee by
the Board by resolution. In addition to the foregoing, the specific duties of
the Compensation Committee shall be determined by the Board by resolution.
Section 5.2. Available Powers. Any committee established pursuant
to Section 5.1 of these Bylaws, including the Audit Committee and the
Compensation Committee, but only to the extent provided in the resolution of the
Board establishing such committee or otherwise delegating specific power and
authority to such committee and as limited by law, the Articles of Incorporation
and these Bylaws, shall have and may exercise all the powers and authority of
the
-6-
Board in the management of the business and affairs of the Company, and may
authorize the seal of the Company to be affixed to all papers which may require
it.
Section 5.3. Alternate Members. The Board may designate one or more
directors as alternate members of any committee, who may replace any absent or
disqualified member at any meeting of such committee.
Section 5.4. Procedures. Time, place and notice, if any, of
meetings of a committee shall be determined by the members of such committee. At
meetings of a committee, a majority of the number of members designated by the
Board shall constitute a quorum for the transaction of business. The act of a
majority of the members present at any meeting at which a quorum is present
shall be the act of the committee, except as otherwise specifically provided by
law, the Articles of Incorporation or these Bylaws. If a quorum is not present
at a meeting of a committee, the members present may adjourn the meeting from
time to time, without notice other than an announcement at the meeting, until a
quorum is present.
ARTICLE 6
OFFICERS
Section 6.1. Elected Officers. The Board shall elect a President
and Secretary (collectively, the "Required Officers") having the respective
duties enumerated below and may elect such other officers having the titles and
duties set forth below which are not reserved for the Required Officers or such
other titles and duties as the Board may by resolution from time to time
establish:
6.1.1. Chairman of the Board. The Chairman of the Board, or in
his absence, the President, shall preside when present at all meetings of the
shareholders and the Board. The Chairman of the Board shall advise and counsel
the President and other officers and shall exercise such powers and perform such
duties as shall be assigned to or required of him from time to time by the Board
or these Bylaws. The Chairman of the Board may execute bonds, mortgages and
other contracts requiring a seal under the seal of the Company, except where
required by law to be otherwise signed and executed and except where the signing
and execution thereof shall be expressly delegated by the Board to some other
officer or agent of the Company. The Chairman of the Board may delegate all or
any of his powers or duties to the President, if and to the extent deemed by the
Chairman of the Board to be desirable or appropriate.
6.1.2. President. The President shall be the Chief Executive
Officer of the Company, unless the Board of Directors designates the Chairman of
the Board as Chief Executive Officer, and shall have general and active
management of the business and affairs of the Company and shall see that all
orders and resolutions of the Board are carried into effect. The President may
agree upon and execute all leases, contracts, evidences of indebtedness, and
-7-
other obligations in the name of the corporation and may sign all certificates
for shares of capital stock of the corporation; and shall have such other powers
and duties as designated in accordance with these Bylaws and as from time to
time may be assigned to him by the Board of Directors. In the absence of the
Chairman of the Board or in the event of his inability or refusal to act, the
President shall perform the duties and exercise the powers of the Chairman of
the Board.
6.1.3. Chief Operating Officer. The chief operating officer
shall have supervision of the operation of the corporation, subject to the
policies and directions of the Board. He shall provide for the proper operation
of the corporation and oversee the internal interrelationship amongst any and
all departments of the corporation. He shall submit to the chief executive
officer and the board of directors timely reports on the operations of the
corporation.
6.1.4. Chief Financial Officer. The chief financial officer
shall be the chief accounting officer of the corporation and shall arrange for
the keeping of adequate records of all assets, liabilities and transactions of
the corporation. He shall provide for the establishment of internal controls and
see that adequate audits are currently and regularly made. He shall submit to
the chief executive officer and the board timely statements of the accounts of
the corporation and the financial results of the operations thereof.
6.1.5. Vice Presidents. In the absence of the President or in
the event of his inability or refusal to act, the Vice President (or in the
event there be more than one Vice President, the Vice Presidents in the order
designated by the Board, or in the absence of any designation, then in the order
of their election or appointment) shall perform 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 perform such other
duties and have such other powers as the Board may from time to time prescribe.
6.1.6. Secretary. The Secretary shall attend all meetings of
the shareholders, the Board and (as required) committees of the Board and shall
record all the proceedings of such meetings in minute books to be kept for that
purpose. He shall give, or cause to be given, notice of all meetings of the
shareholders and special meetings of the Board and shall perform such other
duties as may be prescribed by the Board or the President. He shall have custody
of the corporate seal of the Company and he, or an Assistant Secretary, shall
have authority to affix the same to any instrument requiring it, and when so
affixed, it may be attested by his signature or by the signature of such
Assistant Secretary. The Board may give general authority to any other officer
to affix the seal of the Company and to attest the affixing thereof by his
signature.
6.1.7. Assistant Secretaries. The Assistant Secretary, or if
there be more than one, the Assistant Secretaries in the order determined by the
Board (or if there be no such determination, then in the order of their election
or appointment) shall, in the absence of the Secretary or in the event of his
inability or refusal to act, perform the duties and exercise the
-8-
powers of the Secretary and shall perform such other duties and have such other
powers as the Board may from time to time prescribe.
6.1.8. Treasurer. The Treasurer shall have the custody of the
corporate funds and securities, shall keep full and accurate accounts of
receipts and disbursements in books belonging to the Company and shall deposit
all moneys and other valuable effects in the name and to the credit of the
Company in such depositories as may be designated by the Board. He shall
disburse the funds of the Company as may be ordered by the Board, taking proper
vouchers for such disbursements, and shall render to the President and the
Board, at its regular meetings, or when the Board so requires, an account of all
his transactions as treasurer and of the financial condition of the Company. He
may, when necessary or proper, endorse on behalf of the corporation for
collection checks, notes and other obligations and shall deposit the same to the
credit of the corporation in such banks or depositories as shall be designated
in the manner prescribed by the Board of Directors, and he may sign all receipts
and vouchers for payments made to the corporation, either along or jointly with
such other officer as is designated by the Board of Directors.
6.1.9. Assistant Treasurers. The Assistant Treasurer, or if
there shall be more than one, the Assistant Treasurers in the order determined
by the Board (or if there be no such determination, then in the order of their
election or appointment) shall, in the absence of the treasurer or in the event
of his inability or refusal to act, perform the duties and exercise the powers
of the treasurer and shall perform such other duties and have such other powers
as the Board may from time to time prescribe.
6.1.10. Divisional Officers. Each division of the Company, if
any, may have a President, Secretary, Treasurer or Controller and one or more
Vice Presidents, Assistant Secretaries, Assistant Treasurers and other assistant
officers. Any number of such offices may be held by the same person. Such
divisional officers will be appointed by, report to and serve at the pleasure of
the Board and such other officers that the Board may place in authority over
them. The officers of each division shall have such authority with respect to
the business and affairs of that division as may be granted from time to time by
the Board, and in the regular course of business of such division may sign
contracts and other documents in the name of the division where so authorized;
provided that in no case and under no circumstances shall an officer of one
division have authority to bind any other division of the Company except as
necessary in the pursuit of the normal and usual business of the division of
which he is an officer.
Section 6.2. Election. All elected officers shall serve until their
successors are duly elected and qualified or until their earlier death,
disqualification, retirement, resignation or removal from office.
Section 6.3. Appointed Officers. The Board may also appoint or
delegate the power to appoint such other officers, assistant officers and
agents, and may also remove such officers and agents or delegate the power to
remove same, as it shall from time to time deem
-9-
necessary, and the titles and duties of such appointed officers may be as
described in Section 6.1 for elected officers; provided that the officers and
any officer possessing authority over or responsibility for any functions of the
Board shall be elected officers.
Section 6.4. Multiple Officeholders, Shareholder and Director
Officers. Any number of offices may be held by the same person, unless the
Articles of Incorporation or these Bylaws otherwise provide. Officers need not
be shareholders or residents of the State of Texas. Officers, such as the
Chairman of the Board, possessing authority over or responsibility for any
function of the Board must be directors.
Section 6.5. Compensation, Vacancies. The compensation of elected
officers shall be set by the Board. The Board shall also fill any vacancy in an
elected office. The compensation of appointed officers and the filling of
vacancies in appointed offices may be delegated by the Board to the same extent
as permitted by these Bylaws for the initial filling of such offices.
Section 6.6. Additional Powers and Duties. In addition to the
foregoing especially enumerated powers and duties, the several elected and
appointed officers of the Company shall perform such other duties and exercise
such further powers as may be provided by law, the Articles of Incorporation or
these Bylaws or as the Board may from time to time determine or as may be
assigned to them by any competent committee or superior officer.
Section 6.7. Removal. Any officer or agent or member of a committee
elected or appointed by the Board may be removed by the Board whenever in its
judgment the best interest of the Company will be served thereby, but such
removal shall be without prejudice to the contract rights, if any, of the person
so removed. Election or appointment of an officer or agent or member of a
committee shall not of itself create contract rights.
ARTICLE 7
SHARE CERTIFICATES
Section 7.1. Entitlement to Certificates. Every holder of the capital
stock of the Company, unless and to the extent the Board by resolution provides
that any or all classes or series of stock shall be uncertificated, shall be
entitled to have a certificate, in such form as is approved by the Board and
conforms with applicable law, certifying the number of shares owned by him. Each
certificate representing shares shall state upon the face thereof:
(1) that the corporation is organized under the laws of the State of Texas;
(2) the name of the person to whom issued;
-10-
(3) the number and class of shares and the designation of the series, if any,
which such certificate represents; and
(4) the par value of each share represented by such certificate, or a statement
that the shares are without par value.
Section 7.2. Multiple Classes of Stock; Preemptive Rights. In the
event the Company shall be authorized to issue shares of more than one class,
each certificate representing shares issued by the Company (1) shall
conspicuously set forth on the face or back of the certificate a full statement
of (a) all of the designations, preferences, limitations and relative rights of
the shares of each class authorized to be issued and, (b) if the Company is
authorized to issue shares of any preferred or special class in series, the
variations in the relative rights and preferences of the shares of each such
series to the extent they have been fixed and determined and the authority of
the Board to fix and determine the relative rights and preferences of subsequent
series; or (2) shall conspicuously state on the face or back of the certificate
that (a) such a statement is set forth in the Articles of Incorporation on file
in the office of the Secretary of State of the State of Texas and (b) the
Company will furnish a copy of such statement to the record holder of the
certificate without charge on written request to the Company at its principal
place of business or registered office. In the event the Company has by its
Articles of Incorporation limited or denied the preemptive right of shareholders
to acquire unissued or treasury shares of the Company, each certificate
representing shares issued by the Company (1) shall conspicuously set forth on
the face or back of the certificate a full statement of the limitation or denial
of preemptive rights contained in the Articles of Incorporation, or (2) shall
conspicuously state on the face or back of the certificate that (a) such a
statement is set forth in the Articles of Incorporation on file in the office of
the Secretary of State of the State of Texas and (b) the Company will furnish a
copy of such statement to the record holder of the certificate without charge on
request to the Company at its principal place of business or registered office.
Section 7.3. Signatures. Each certificate representing capital stock
of the Company shall be signed by or in the name of the Company by (1) the
Chairman of the Board, the Chief Executive Officer, the President or a Vice
President; and (2) the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary of the Company. The signatures of the officers of the
Company may be facsimiles. In case any officer who has signed or whose facsimile
signature has been placed upon a certificate shall have ceased to hold such
office before such certificate is issued, it may be issued by the Company with
the same effect as if he held such office on the date of issue.
Section 7.4. Issuance and Payment. Subject to any provision of the
Constitution of the State of Texas to the contrary, the Board may authorize
shares to be issued for consideration consisting of any tangible or intangible
benefit to the Company, including, cash, promissory notes, services performed,
contracts for services to be performed, or other securities of the Company.
Shares may not be issued until the full amount of the consideration, fixed as
provided by law, has been paid. When such consideration shall have been paid to
the Company or to a corporation of which all the outstanding shares of each
class are owned by the Company,
-11-
the shares shall be deemed to have been issued and the subscriber or shareholder
entitled to receive such issue shall be a shareholder with respect to such
shares, and the shares shall be considered fully paid and non-assessable. In the
absence of fraud in the transaction, the judgment of the Board or the
shareholders, as the case may be, as to the value of the consideration received
for shares shall be conclusive.
Section 7.5. Lost Certificates. The Board may direct a new
certificate or certificates to be issued in place of any certificate or
certificates theretofore issued by the Company alleged to have been lost, stolen
or destroyed upon the making of an affidavit of that fact by the person claiming
the certificate of stock to be lost, stolen or destroyed. When authorizing such
issue of a new certificate or certificates, the Board may, in its discretion and
as a condition precedent to the issuance thereof, require the owner of such
lost, stolen or destroyed certificate or certificates, or his legal
representative, to advertise the same in such manner as it shall require and/or
to give the Company a bond in such sum as it may direct as indemnity against any
claim that may be made against the Company with respect to the certificate
alleged to have been lost, stolen or destroyed.
Section 7.6. Transfer of Stock. Upon surrender to the Company or its
transfer agent, if any, of a certificate for shares duly endorsed or accompanied
by proper evidence of succession, assignation or authority to transfer and of
the payment of all taxes applicable to the transfer of said shares, the Company
shall be obligated to issue a new certificate to the person entitled thereto,
cancel the old certificate and record the transaction upon its books; provided,
however, that the Company shall not be so obligated unless such transfer was
made in compliance with applicable state and federal securities laws.
Section 7.7. Registered Shareholders. The Company shall be entitled
to recognize the exclusive right of a person registered on its books as the
owner of shares to receive dividends, vote and be held liable for calls and
assessments and shall not be bound to recognize any equitable or other claim to
or interest in such share or shares on the part of any person other than such
registered owner, whether or not it shall have express or other notice thereof,
except as otherwise provided by law.
ARTICLE 8
INDEMNIFICATION
Section 8.1. Definitions. For purposes of this Article VIII:
(1) "Corporation" includes any domestic or foreign predecessor entity of the
Company in a merger, consolidation, or other transaction in which the
liabilities of the predecessor are transferred to the Company by operation
of law and in any other transaction in which the
-12-
Company assumes the liabilities of the predecessor but does not
specifically exclude liabilities that are the subject matter of this
article;
(2) "Director" means any person who is or was a director of the Company and any
person who, while a director of the Company, is or was serving at the
request of the Company as a director, officer, partner, venturer,
proprietor, trustee, employee, agent, or similar functionary of another
foreign or domestic corporation, partnership, joint venture, sole
proprietorship, trust, employee benefit plan or other enterprise;
(3) "Expenses" include, without limitation, court costs and attorneys' fees;
(4) "Official capacity" means
(i) when used with respect to a Director, the office of Director of the
Company, but does not include service for any other foreign or domestic
corporation or any partnership, joint venture, sole proprietorship, trust,
employee benefit plan, or other enterprise;
(ii) when used with respect to a person other than a Director, the
elective or appointive office in the Company held by the officer or the
employment or agency relationship undertaken by the employee or agent on behalf
of the Company, but does not include service for any other foreign or domestic
corporation or any partnership, joint venture, sole proprietorship, trust,
employee benefit plan, or other enterprise; and
(5) "Proceeding" means any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, arbitrative, or
investigative, any appeal in such an action, suit, or proceeding, and any
inquiry or investigation that could lead to such an action, suit, or
proceeding.
Section 8.2. Mandatory Indemnification. The Company shall indemnify a
person who was, is, or is threatened to be made a named defendant or respondent
in a proceeding because the person is or was a Director only if it is determined
in accordance with Section 8.6 of this Article 8 that the person:
(a) conducted himself in good faith;
(b) reasonably believed:
(i) in the case of conduct in his official
capacity as a Director of the Company, that his conduct was in the Company's
best interests; and
(ii) in all other cases, that his conduct was at
least not opposed to the Company's best interests; and
-13-
(c) in the case of any criminal proceeding, had no
reasonable cause to believe his conduct was unlawful.
In the event it is determined in accordance with Section 8.6 of this Article 8
that a person has met the applicable standard of conduct as to some matters but
not as to others, amounts to be indemnified may be reasonably prorated.
Section 8.3. Prohibited Indemnification. Except to the extent
permitted by Section 8.5 of this Article 8, a Director may not be indemnified
under Section 8.2 of this Article 8 in respect of a proceeding:
(a) in which the person is found liable on the basis
that personal benefit was improperly received by him, whether or not the benefit
resulted from an action taken in the person's official capacity; or
(b) in which the person is found liable to the Company.
Section 8.4. Termination of Proceedings. The termination of a
proceeding by judgment, order, settlement, or conviction, or on a plea of nolo
contendere or its equivalent is not of itself determinative that the person did
not meet the requirements set forth in Section 8.2 of this Article 8. A person
shall be deemed to have been found liable in respect of any claim, issue or
matter only after the person shall have been so adjudged by a court of competent
jurisdiction after exhaustion of all appeals therefrom.
Section 8.5. Judgments, Expenses, etc. A person may be indemnified
under Section 8.2 of this Article 8 against judgments, penalties (including
excise and similar taxes), fines, settlements, and reasonable expenses actually
incurred by the person in connection with the proceeding; but if the person is
found liable to the Company or is found liable on the basis that personal
benefit was improperly received by the person, the indemnification (1) is
limited to reasonable expenses actually incurred by the person in connection
with the proceeding and (2) shall not be made in respect of any proceeding in
which the person shall have been found liable for willful or intentional
misconduct in the performance of his duty to the Company.
Section 8.6. Determination of Indemnification. A determination of
indemnification under Section 8.2 of this Article 8 must be made:
(a) by a majority vote of a quorum consisting of
directors who at the time of the vote are not named defendants or respondents in
the proceeding;
(b) if such a quorum cannot be obtained, by a majority
vote of a committee of the Board, designated to act in the matter by a majority
vote of all directors, consisting solely of two or more directors who at the
time of the vote are not named defendants or respondents in the proceeding;
-14-
(c) by special legal counsel selected by the Board or a
committee thereof by vote as set forth in subsection (1) or (2) of this Section
8.6, or, if such a quorum cannot be obtained and such a committee cannot be
established, by a majority vote of all Directors; or
(d) by the shareholders of the Company in a vote that
excludes the shares held by Directors who are named defendants or respondents in
the proceeding.
Section 8.7. Determination of Reasonableness of Expenses.
Determination as to reasonableness of expenses must be made in the same manner
as the determination that indemnification is permissible, except that if the
determination that indemnification is permissible is made by special legal
counsel, determination as to reasonableness of expenses must be made in the
manner specified by subsection (c) of Section 8.6 of this Article 8 for the
selection of special legal counsel.
Section 8.8. Indemnification Against Reasonable Expenses. The
Company shall indemnify a Director against reasonable expenses incurred by him
in connection with a proceeding in which he is a named defendant or respondent
because he is or was a Director if he has been wholly successful, on the merits
or otherwise, in the defense of the proceeding.
Section 8.9. Payments in Advance of Disposition. Reasonable expenses
incurred by a Director who was, is, or is threatened to be made a named
defendant or respondent in a proceeding shall be paid or reimbursed by the
Company, in advance of the final disposition of the proceeding and without any
of the determinations specified in Sections 8.6 and 8.7 of this Article 8, after
the Company receives a written affirmation by the Director of his good faith
belief that he has met the standard of conduct necessary for indemnification
under this Article 8 and a written undertaking by or on behalf of the Director
to repay the amount paid or reimbursed if it is ultimately determined that he
has not met those requirements.
Section 8.10. Written Undertaking. The written undertaking required by
Section 8.9 of this Article 8 must be an unlimited general obligation of the
Director but need not be secured. It may be accepted without reference to
financial ability to make repayment.
Section 8.11. Consistency with Articles of Incorporation. Any
provision for the Company to indemnify or to advance expenses to a Director who
was, is, or is threatened to be made a named defendant or respondent in a
proceeding, whether contained in the Articles of Incorporation, these Bylaws, a
resolution of shareholders or Directors, an agreement, or otherwise, except in
accordance with Section 8.16 of this Article 8, is valid only to the extent it
is consistent with this Article 8 as limited by the Articles of Incorporation,
if such a limitation exists.
-15-
Section 8.12. Other Expenses. Notwithstanding any other provision
of this Article 8, the Company may pay or reimburse expenses incurred by a
Director in connection with his appearance as a witness or other participation
in a proceeding at a time when he is not a named defendant or respondent in the
proceeding.
Section 8.13. Officers, Employees and Agents. An officer, employee
or agent of the Company shall be indemnified as, and to the same extent,
provided by Section 8.8 of this Article 8 for a Director and is entitled to seek
indemnification under such Section to the same extent as a Director. The
Company shall advance expenses to an officer and may advance expenses to an
employee or agent of the Company to the same extent that it shall advance
expenses to Directors under this Article 8.
Section 8.14. Other Capacities. A corporation may indemnify and
advance expenses to persons who are not or were not officers, employees, or
agents of the Company, but who are or were serving at the request of the Company
as a director, officer, partner, venturer, proprietor, trustee, employee, agent,
or similar functionary of another foreign or domestic corporation, partnership,
joint venture, sole proprietorship, trust, employee benefit plan or other
enterprise to the same extent that it shall indemnify and advance expenses to
Directors under this Article 8.
Section 8.15. Further Indemnification. The Company may indemnify
and advance expenses to an officer, employee, agent, or person identified in
Section 8.14 of this Article 8 and who is not a Director to such further extent,
consistent with law, as may be provided by the Articles of Incorporation, these
Bylaws, general or specific action of the Board, or contract or as permitted or
required by common law.
Section 8.16. Continuation of Indemnification. The indemnification
and advance payment provided by this Article 8 shall continue as to a person who
has ceased to hold his position as a director, officer, employee or agent, or
other person described in Article 8, Section 8.14, and shall inure to his heirs,
executors and administrators.
Section 8.17. Insurance. The Company may purchase and maintain
insurance or another arrangement on behalf of any person who is or was a
Director, officer, employee, or agent of the Company or who is or was serving at
the request of the Company as a director, officer, partner, venturer,
proprietor, trustee, employee, agent, or similar functionary of another foreign
or domestic corporation, partnership, joint venture, sole proprietorship, trust,
employee benefit plan, or other enterprise, against any liability asserted
against him and incurred by him in such a capacity or arising out of his status
as such a person, whether or not the Company would have the power to indemnify
him against that liability under this Article 8. If the insurance or other
arrangement is with a person or entity that is not regularly engaged in the
business of providing insurance coverage, the insurance or arrangement may
provide for payment of a liability with respect to which the Company would not
have the power to indemnify the person only if including coverage for the
additional liability has been approved by the shareholders of
-16-
the Company. Without limiting the power of the Company to procure or maintain
any kind of insurance or other arrangement, the Company may, for the benefit of
persons indemnified by the Company, (1) create a trust fund; (2) establish any
form of self-insurance; (3) secure its indemnity obligation by grant of a
security interest or other lien on the assets of the Company; or (4) establish a
letter of credit, guaranty, or surety arrangement. The insurance or other
arrangement may be procured, maintained, or established within the Company or
with any insurer or other person deemed appropriate by the Board regardless of
whether all or part of the stock or other securities of the insurer or other
person are owned in whole or part by the Company. In the absence of fraud, the
judgment of the Board as to the terms and conditions of the insurance or other
arrangement and the identity of the insurer or other person participating in an
arrangement shall be conclusive and the insurance or arrangement shall not be
voidable and shall not subject the Directors approving the insurance or
arrangement to liability, on any ground, regardless of whether Directors
participating in the approval are beneficiaries of the insurance or arrangement.
Section 8.18. Report To Shareholders. Any indemnification of or
advance of expenses to a Director in accordance with this Article 8 shall be
reported in writing to the shareholders with or before the notice or waiver of
notice of the next shareholders' meeting or with or before the next submission
to shareholders of a consent to action without a meeting pursuant to Section A,
Article 9.10, of the Texas Business Corporation Act and, in any case, within the
12-month period immediately following the date of the indemnification or
advance.
Section 8.19. Employee Benefit Plans. For purposes of this Article
8, the Company is deemed to have requested a Director to serve in capacity in
connection with an employee benefit plan whenever the performance by him of his
duties to the Company also imposes duties on or otherwise involves services by
him to the plan or participants or beneficiaries of the plan. Excise taxes
assessed on a Director with respect to an employee benefit plan pursuant to
applicable law are deemed fines. Action taken or omitted by him with respect to
an employee benefit plan in the performance of his duties for a purpose
reasonably believed by him to be in the interest of the participants and
beneficiaries of the plan is deemed to be for a purpose which is not opposed to
the best interests of the Company.
Section 8.20. Change in Governing Law. In the event of any amendment
or addition to Article 2.02-1 of the Texas Business Corporation Act or the
addition of any other section to such law which shall limit indemnification
rights thereunder, the Company shall, to the extent permitted by the Texas
Business Corporation Act, indemnify to the fullest extent authorized or
permitted hereunder, any person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (including an action by
or in the right of the Company), by reason of the fact that he is or was a
Director, officer, employee or agent of the Company or is or was serving at the
request of the Company as a director, officer, partner, venturer, proprietor,
trustee, employee, agent, or similar functionary of another foreign or domestic
corporation, partnership, joint venture, sole proprietorship, trust, employee
benefit plan or other enterprise,
-17-
against all judgments, penalties (including excise and similar taxes), fines,
settlements and reasonable expenses (including attorneys' fees and court costs)
actually and reasonably incurred by him in connection with such action, suit or
proceeding.
Section 8.21. Construction. The indemnification provided by this
Article shall be subject to all valid and applicable laws, including, without
limitation, Article 2.02-1 of the Texas Business Corporation Act, and, in the
event this Article or any of the provisions hereof or the indemnification
contemplated hereby are found to be inconsistent with or contrary to any such
valid laws, the latter shall be deemed to control and this Article 8 shall be
regarded as modified accordingly, and, as so modified, to continue in full force
and effect.
Section 8.22. Contract Right. The foregoing indemnification and
advancement of expenses provisions shall be deemed to be a contract between the
corporation and each director and officer who serves in any such capacity at any
time while these provisions, as well as the relevant provisions of the Texas
Business Corporation Act, are in effect, and any repeal or modification thereof
shall not affect any right or obligation then existing with respect to any state
of facts then or previously existing or any action, suit, or proceeding
previously or thereafter brought or threatened based in whole or in part upon
any such state of facts. Such a "contract right" may not be modified
retroactively without consent of such director, officer, employee or agent.
Notwithstanding this provision and subject to applicable provisions of the Texas
Business Corporation Act, the corporation may enter into additional contracts of
indemnity with these persons to provide rights provided in these bylaws, or to
otherwise modify, amend, increase or decrease these rights, as the Board of
Directors may see fit.
`
Section 8.23. Effect of Amendment. No amendment, modification or
repeal of this Article 8 or any provision hereof shall in any manner terminate,
reduce or impair the right of any past, present or future persons to be
indemnified by the corporation, nor the obligation of the corporation to
indemnify any such persons, under and in accordance with the provisions of this
Article as in effect immediately prior to such amendment, modification or
repeal, with respect to claims arising from or relating to matters occurring, in
whole or in part, prior to such amendment, modification or repeal, regardless of
when such claims may arise or be asserted.
ARTICLE 9
INTERESTED DIRECTORS, OFFICERS AND SHAREHOLDERS
Section 9.1. Validity; Disclosure; Approval. No contract or
transaction between the Company and one or more of its directors or officers, or
between the Company and any other corporation, partnership, association, or
other organization in which one or more of its directors or officers are
directors or officers or have a financial interest, shall be void or voidable
solely because the director or officer is present at or participates in the
meeting of the Board or
-18-
committee thereof which authorizes the contract or transaction, or solely
because his or their votes are counted for such purpose, if:
(1) the material facts as to his relationship or interest and as to the
contract or transaction are disclosed or are known to the Board or the
committee, and the Board or committee in good faith authorizes the contract or
transaction by the affirmative vote of a majority of the disinterested
directors, even though the disinterested directors be less than a quorum; or
(2) the material facts as to his relationship or interest and as to the
contract or transaction are disclosed or are known to the shareholders entitled
to vote thereon, and the contract or transaction is specifically approved in
good faith by vote of the shareholders; or
(3) the contract or transaction is fair as to the Company as of the time it
is authorized, approved, or ratified by the Board, a committee thereof, or the
shareholders.
Section 9.2. Quorum. Common or interested directors may be counted in
determining the presence of a quorum at a meeting of the Board or of a committee
which authorizes the contract or transaction.
Section 9.3. Nonexclusive. This Article 9 shall not be construed to
invalidate any contract or transaction which would be valid in the absence of
this Article 9.
ARTICLE 10
MISCELLANEOUS
Section 10.1. Place of Meetings. All shareholders, directors and
committee meetings shall be held at such place or places, within or without the
State of Texas, as shall be designated from time to time by the Board or such
committee and stated in the notices thereof. If no such place is so designated,
said meetings shall be held at the principal business office of the Company.
Section 10.2. Fixing Record Dates.
(a) In order that the Company may determine the
shareholders entitled to notice of or to vote at any meeting of shareholders or
any adjournment thereof, to receive payment of any dividend or other
distribution or allotment of any rights, to exercise any rights in respect of
any change, conversion or exchange of stock or to effect any other lawful
action, or to make a determination of shareholders for any other proper purpose
(other than determining shareholders entitled to consent to action by
shareholders proposed to be taken without a meeting of shareholders), the Board
may fix, in advance, a record date for any such
-19-
determination of shareholders, which shall not be more than sixty (60) nor less
than ten (10) days prior to the date on which the particular action requiring
such determination of shareholders is to be taken. In the absence of any action
by the Board, the date on which a notice of meeting is given, or the date the
Board adopts the resolution declaring a dividend or other distribution or
allotment or approving any change, conversion or exchange, as the case may be,
shall be the record date. A record date validly fixed for any meeting of
shareholders and the determination of shareholders entitled to vote at such
meeting shall be valid for any adjournment of said meeting except where such
determination has been made through the closing of stock transfer books and the
stated period of closing has expired.
(b) In order that the Company may determine the
stockholders entitled to consent to corporate action in writing without a
meeting, the Board may fix a record date, which record date shall not precede
the date upon which the resolution fixing the record date is adopted by the
Board, and which date shall not be more than ten (10) days after the date upon
which the resolution fixing the record date is adopted by the Board. If no
record date has been fixed by the Board, the record date for determining
stockholders entitled to consent to corporate action in writing without a
meeting, when no prior action by the Board is otherwise required, shall be the
first date on which a signed written consent setting forth the action taken or
proposed to be taken is delivered to the Company by delivery to its registered
office in the State of Texas, its principal place of business, or an officer or
agent of the Company having custody of the book in which proceedings of meetings
of stockholders are recorded. Delivery made to the Company's registered office
shall be by hand or by certified or registered mail, return receipt requested.
If no record date has been fixed by the Board and prior action by the Board is
required, the record date for determining stockholders entitled to consent to
corporate action in writing without a meeting shall be at the close of business
on the day on which the Board adopts the resolution taking such prior action.
Section 10.3. Notice and Waiver of Notice. Whenever any notice is
required to be given under law, the Articles of Incorporation or these Bylaws, a
written waiver of such notice, signed before or after the date of such meeting
by the person or persons entitled to said notice, shall be deemed equivalent to
such required notice. All such waivers shall be filed with the corporate
records. Attendance at a meeting shall constitute a waiver of notice of such
meeting, except where a person attends for the express purpose of objecting to
the transaction of any business on the ground that the meeting is not lawfully
called or convened. Whenever any notice is required to be given under law, the
Articles of Incorporation or these Bylaws, said notice shall be deemed to be
sufficient if given by depositing the same in a post office box in a sealed
prepaid envelope addressed to the person entitled thereto at his post office
address as it appears on the books of the Company and such notice shall be
deemed to have been given on the day of such mailing.
Section 10.4. Attendance via Communications Equipment. Unless
otherwise restricted by law, the Articles of Incorporation or these Bylaws,
members of the Board, members of any committee thereof or the shareholders may
hold a meeting by means of conference
-20-
telephone or other communications equipment by means of which all persons
participating in the meeting can effectively communicate with each other. Such
participation in a meeting shall constitute presence in person at the meeting,
except where a person participates in the meeting for the express purpose of
objecting to the transaction of any business on the ground that the meeting is
not lawfully called or convened.
Section 10.5. Dividends. Dividends on the capital stock of the
Company, paid in cash, property, or securities of the Company, or any
combination thereof, and as may be limited by applicable law and applicable
provisions of the Articles of Incorporation (if any), may be declared by the
Board at any regular or special meeting.
Section 10.6. Reserves. Before payment of any dividend, there may be
set aside out of any funds of the Company available for dividends such sum or
sums as the Board from time to time, in its absolute discretion, thinks proper
as a reserve or reserves to meet contingencies, for equalizing dividends, for
repairing or maintaining any property of the Company, or for such other purpose
as the Board shall determine to be in the best interest of the Company; and the
Board may modify or abolish any such reserve in the manner in which it was
created.
Section 10.7. Reports to Shareholders. The Board shall present at each
annual meeting of shareholders, and at any special meeting of shareholders when
called for by vote of the shareholders, a statement of the business and
condition of the Company.
Section 10.8. Contracts and Negotiable Instruments. Except as
otherwise provided by law or these Bylaws, any contract or other instrument
relative to the business of the Company may be executed and delivered in the
name of the Company and on its behalf by the Chairman of the Board, the
President, its Chief Operating Officer, the Chief Financial Officer or any Vice
President; and the Board may authorize any other officer or agent of the Company
to enter into any contract or execute and deliver any contract in the name and
on behalf of the Company, and such authority may be general or confined to
specific instances as the Board may by resolution determine. All bills, notes,
checks or other instruments for the payment of money shall be signed or
countersigned by such officer, officers, agent or agents and in such manner as
are permitted by these Bylaws and/or as, from time to time, may be prescribed by
resolution (whether general or special) of the Board. Unless authorized so to do
by these Bylaws or by the Board, no officer, agent or employee shall have any
power or authority to bind the Company by any contract or engagement, or to
pledge its credit, or to render it liable pecuniarily for any purpose or to any
amount.
Section 10.9. Fiscal Year. The fiscal year of the Company shall be
fixed by resolution of the Board.
-21-
Section 10.10. Seal. The seal of the Company shall be in such form as
shall from time to time be adopted by the Board. The seal may be used by causing
it or a facsimile thereof to be impressed, affixed or otherwise reproduced.
Section 10.11. Books and Records. The Company shall keep correct and
complete books and records of account and shall keep minutes of the proceedings
of its shareholders, Board and committees and shall keep at its registered
office or principal place of business, or at the office of its transfer agent or
registrar, a record of its shareholders, giving the names and addresses of all
shareholders and the number and class of the shares held by each.
Section 10.12. Resignation. Any director, committee member, officer
or agent may resign by giving written notice to the Chairman of the Board, the
President or the Secretary. The resignation shall take effect at the time
specified therein, or immediately if no time is specified. Unless otherwise
specified therein, the acceptance of such resignation shall not be necessary to
make it effective.
Section 10.13. Surety Bonds. Such officers and agents of the Company
(if any) as the Chairman of the Board, the President or the Board may direct,
from time to time, shall be bonded for the faithful performance of their duties
and for the restoration to the Company, in case of their death, resignation,
retirement, disqualification or removal from office, of all books, papers,
vouchers, money and other property of whatever kind in their possession or under
their control belonging to the Company, in such amounts and by such surety
companies as the Chairman of the Board, the President or the Board may
determine. The premiums on such bonds shall be paid by the Company and the bonds
so furnished shall be in the custody of the Secretary.
Section 10.14. Proxies in Respect of Securities of Other Corporations.
The Chairman of the Board, the President, any Vice President or the Secretary
may from time to time appoint an attorney or attorneys or an agent or agents for
the Company to exercise, in the name and on behalf of the Company, the powers
and rights which the Company may have as the holder of stock or other securities
in any other corporation to vote or consent in respect of such stock or other
securities, and the Chairman of the Board, the President, any Vice President or
the Secretary may instruct the person or persons so appointed as to the manner
of exercising such powers and rights; and the Chairman of the Board, the
President, any Vice President or the Secretary may execute or cause to be
executed, in the name and on behalf of the Company and under its corporate seal
or otherwise, all such written proxies or other instruments as he may deem
necessary or proper in order that the Company may exercise such powers and
rights.
Section 10.15. Amendments. These Bylaws may be altered, amended,
repealed or replaced by the shareholders, or by the Board when such power is
conferred upon the Board by the Articles of Incorporation, at any annual
shareholders meeting or annual or regular meeting of the Board, or at any
special meeting of the shareholders or of the Board if notice of such
alteration, amendment, repeal or replacement is contained in the notice of such
special meeting. If the power to adopt, amend, repeal or replace these Bylaws is
conferred upon the Board by the
-22-
Articles of Incorporation, the power of the shareholders to so adopt, amend,
repeal or replace these Bylaws shall not be divested or limited thereby.
-23-