Bylaws - Adobe Systems Inc.
ADOBE SYSTEMS INCORPORATED
RESTATED BYLAWS
RESTATED
BY-LAWS
OF
ADOBE SYSTEMS INCORPORATED
DECEMBER 20, 1995
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INDEX
SECTION PAGE
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ARTICLE I
OFFICES
1.1 Principal Executive Office. . . . . . . . . . . . . . . . . . . 1
1.2 Other Offices . . . . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE II
MEETING OF SHAREHOLDERS
2.1 Place of Meetings . . . . . . . . . . . . . . . . . . . . . . . 1
2.2 Annual Meetings . . . . . . . . . . . . . . . . . . . . . . . . 1
2.3 Special Meetings. . . . . . . . . . . . . . . . . . . . . . . . 2
2.4 Notice of Meetings or Reports . . . . . . . . . . . . . . . . . 2
2.5 Adjourned Meetings and Notice Thereof . . . . . . . . . . . . . 3
2.6 Voting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.7 Quorum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.8 Consent of Absentees. . . . . . . . . . . . . . . . . . . . . . 4
2.9 Action Without Meeting. . . . . . . . . . . . . . . . . . . . . 4
2.10 Proxies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.11 Regulation of Conduct of Shareholder Meetings . . . . . . . . . 5
2.12 Advance Notice of Shareholder Proposals and Directors
Nominations . . . . . . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE III
DIRECTORS
3.1 Powers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2 Number of Directors . . . . . . . . . . . . . . . . . . . . . . 7
3.3 Election, Term of Office and Vacancies. . . . . . . . . . . . . 7
3.4 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.5 Removal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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3.6 Organization Meeting. . . . . . . . . . . . . . . . . . . . . . 9
3.7 Other Regular Meetings. . . . . . . . . . . . . . . . . . . . . 9
3.8 Called Meetings . . . . . . . . . . . . . . . . . . . . . . . . 9
3.9 Place of Meetings . . . . . . . . . . . . . . . . . . . . . . . 9
3.10 Telephonic Meetings . . . . . . . . . . . . . . . . . . . . . . 9
3.11 Notice of Special Meetings. . . . . . . . . . . . . . . . . . . 9
3.12 Waiver of Notice. . . . . . . . . . . . . . . . . . . . . . . . 10
3.13 Action Without Meeting. . . . . . . . . . . . . . . . . . . . . 10
3.14 Quorum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.15 Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3.16 Inspection Rights . . . . . . . . . . . . . . . . . . . . . . . 11
3.17 Fees and Compensation . . . . . . . . . . . . . . . . . . . . . 11
ARTICLE IV
EXECUTIVE COMMITTEE AND OTHER COMMITTEES
4.1 Executive Committee . . . . . . . . . . . . . . . . . . . . . . 11
4.2 Other Committees. . . . . . . . . . . . . . . . . . . . . . . . 12
4.3 Minutes and Reports . . . . . . . . . . . . . . . . . . . . . . 12
4.4 Meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.5 Term of Office of Committee Members . . . . . . . . . . . . . . 12
ARTICLE V
OFFICERS
5.1 Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.2 Election. . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.3 Subordinate Officers, etc . . . . . . . . . . . . . . . . . . . 13
5.4 Removal and Resignation . . . . . . . . . . . . . . . . . . . . 13
5.5 Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.6 Chairman of the Board . . . . . . . . . . . . . . . . . . . . . 14
5.7 President . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.8 Vice President. . . . . . . . . . . . . . . . . . . . . . . . . 14
5.9 Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
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5.10 Treasurer and Chief Financial Officer . . . . . . . . . . . . . 15
5.11 Assistant Secretary . . . . . . . . . . . . . . . . . . . . . . 15
5.12 Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . 15
ARTICLE VI
MISCELLANEOUS
6.1 Record Date . . . . . . . . . . . . . . . . . . . . . . . . . . 16
6.2 Inspection of Corporate Records . . . . . . . . . . . . . . . . 16
6.3 Execution of Corporate Instruments. . . . . . . . . . . . . . . 17
6.4 Ratification by Shareholders. . . . . . . . . . . . . . . . . . 17
6.5 Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . 17
6.6 Representation of Shares of Other Corporations. . . . . . . . . 18
6.7 Inspection of By-Laws . . . . . . . . . . . . . . . . . . . . . 18
ARTICLE VII
SHARES OF STOCK
7.1 Form of Certificates. . . . . . . . . . . . . . . . . . . . . . 19
7.2 Transfer of Shares. . . . . . . . . . . . . . . . . . . . . . . 19
7.3 Lost Certificates . . . . . . . . . . . . . . . . . . . . . . . 19
7.4 Employee Stock Purchase Plan. . . . . . . . . . . . . . . . . . 20
ARTICLE VIII
INDEMNIFICATION OF DIRECTORS AND OFFICERS
8.1 Indemnification by Corporation. . . . . . . . . . . . . . . . . 20
8.2 Advancing Expenses. . . . . . . . . . . . . . . . . . . . . . . 20
8.3 Non-Exclusivity of Rights . . . . . . . . . . . . . . . . . . . 20
8.4 Indemnification Contracts . . . . . . . . . . . . . . . . . . . 21
8.5 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8.6 Effect of Amendment . . . . . . . . . . . . . . . . . . . . . . 21
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ARTICLE IX
AMENDMENTS
9.1 Power of Shareholders . . . . . . . . . . . . . . . . . . . . . 21
9.2 Power of Directors. . . . . . . . . . . . . . . . . . . . . . . 22
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BY-LAWS
OF
ADOBE SYSTEMS INCORPORATED
ARTICLE 1
OFFICES
SECTION 1.1 PRINCIPAL EXECUTIVE OFFICE.
The principal executive office for the transaction of business of the
corporation is hereby fixed and located at 1585 Charleston Road, Mountain View,
County of Santa Clara, State of California. The Board of Directors is hereby
granted full power and authority to change said principal office from one
location to another.
SECTION 1.2 OTHER OFFICES.
Branch or subordinate offices may at any time be established by the
Board of Directors at any place or places where the corporation is qualified to
do business.
ARTICLE II
MEETINGS OF SHAREHOLDERS
SECTION 2.1 PLACE OF MEETINGS.
All meetings of shareholders shall be held either at the principal
executive office or at any other place within or without the State of California
which may be designated either by the Board of Directors or by the written
consent of a majority of the shareholders entitled to vote thereat as determined
pursuant to Section 6.1 of these By-Laws given either before or after the
meeting.
SECTION 2.2 ANNUAL MEETINGS.
The annual meetings of shareholders shall be held on such day and at
such hour as may be fixed by the Board of Directors. At such meeting, Directors
shall be elected, and any other proper business may be transacted.
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SECTION 2.3 SPECIAL MEETINGS.
Special meetings of the shareholders may be called at any time by the
Board of Directors, the Chairman of the Board, the President, or by the holders
of shares entitled to cast not less than ten percent (10%) of the votes at the
meeting. Within five business days after receiving such a written request from
shareholders of the corporation, the Board of Directors shall determine whether
shareholders owning not less than ten percent (10%) of the shares entitled to
cast votes at the meeting support the call of a special meeting and notify the
requesting party of its finding. Notice of such special meeting shall be given
in the same manner as for the annual meeting of shareholders. Notices of any
special meetings shall specify in addition to the place, date and hour of such
meeting, the general nature of the business to be transacted thereat.
SECTION 2.4 NOTICE OF MEETINGS OR REPORTS.
Written notice of each meeting of shareholders shall be given not less
than ten (10) days nor more than sixty (60) days before the date of the meeting
to each shareholder entitled to vote thereat. Such notice shall be given either
personally or by mail or other means of written communication, addressed or
delivered to each shareholder entitled to vote at such meeting at the address of
such shareholder appearing on the books of the corporation or given by him to
the corporation for the purpose of such notice. If no such address appears or
is given, notice shall be given either personally or by mail or other means of
written communication addressed to the shareholder at the place where the
principal executive office of the corporation is located, or by publication at
least once in a newspaper of general circulation in the county in which said
office is located. The notice shall be deemed to have been given at the time
when delivered personally or deposited in the mail or sent by other means of
written communication.
The same procedure for the giving of notice shall apply to the giving
of any report to shareholders.
All such notices shall state the place, the date and the hour of such
meeting, and shall state such matters, if any, as may be expressly required by
the California Corporations Code.
Upon request by any person or persons entitled to call a special
meeting, the Chairman of the Board, President, Vice President or Secretary shall
within twenty (20) days after receipt of the request cause notice to be given to
the shareholders entitled to vote that a special meeting will be held at a time
requested by the person or persons calling the meeting, but not less than
thirty-five (35) nor more than sixty (60) days after receipt of the request.
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All other notices shall be sent by the Secretary or an Assistant
Secretary, or if there be no such officer, or in the case of his neglect or
refusal to act, by any other officer, or by persons calling the meeting.
SECTION 2.5 ADJOURNED MEETINGS AND NOTICE THEREOF.
Any shareholders' meeting, annual or special, whether or not a quorum
is present, may be adjourned from time to time by the vote of a majority of the
shares, represented either in person or by proxy, but in the absence of a
quorum, no other business may be transacted at such meeting, except as provided
in Section 2.7 of these By-Laws.
When a shareholders' meeting is adjourned to another time or place,
notice of the adjourned meeting need not be given if the time and place thereof
are announced at the meeting at which the adjournment is taken; except that if
the adjournment is for more than forty-five (45) days or if after the
adjournment a new record date is fixed for the adjourned meeting, notice of the
adjourned meeting shall be given to each shareholder of record entitled to vote
thereat.
At the adjourned meeting, the corporation may transact any business
which might have been transacted at the original meeting.
SECTION 2.6 VOTING.
Except as provided below or as otherwise provided by the Articles of
Incorporation or By-Laws, a shareholder shall be entitled to one vote for each
share held of record on the record date fixed for the determination of the
shareholders entitled to vote at a meeting or, if no such date is fixed, the
date determined in accordance with law. Upon the demand of any shareholder made
at a meeting before the voting begins, the election of directors shall be by
ballot. No shareholder will be permitted to cumulate votes at any election of
directors.
Any holder of shares entitled to vote on any matter may vote part of
the shares in favor of the proposal and refrain from voting the remaining shares
or vote them against the proposal, other than elections to office, but, if the
shareholder fails to specify the number of shares such shareholder is voting
affirmatively, it shall be conclusively presumed that the shareholder's
approving vote is with respect to all shares said shareholder is entitled to
vote.
SECTION 2.7 QUORUM.
A majority of the shares entitled to vote, represented in person or by
proxy, shall constitute a quorum at any meeting of shareholders. If a quorum is
present, the affirmative vote of a majority of the shares represented at the
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meeting and entitled to vote on any matter shall be the act of the shareholders,
unless otherwise required by the Articles of Incorporation.
The shareholders present at a duly called or held meeting at which a
quorum is present may continue to do business until adjournment, notwithstanding
the withdrawal of enough shareholders to leave less than a quorum, if any action
taken (other than adjournment) is approved by at least a majority of the shares
required to constitute a quorum.
SECTION 2.8 CONSENT OF ABSENTEES.
The transactions of any meeting of shareholders, if not duly called
and noticed, and wherever held, shall be as valid as though had at a meeting
duly held after regular call and notice, if a quorum is present either in person
or by proxy, and if, either before or after the meeting, each of the
shareholders entitled to vote, not present in person or by proxy, signs a
written waiver of notice, or a consent to the holding of such meeting, or an
approval of the minutes thereof. All such waivers, consents, or approvals shall
be filed with the corporate records or made a part of the minutes of the
meeting.
Attendance of a person at a meeting shall constitute a waiver of
notice of such meeting, except when a person objects, at the beginning of the
meeting, to the transaction of any business because the meeting is not lawfully
called or convened; provided, that attendance at a meeting is not a waiver of
any right to object to the consideration of matters required by law or these By-
Laws to be included in the notice but not so included if such objection is
expressly made at the meeting.
SECTION 2.9 ACTION WITHOUT MEETING.
Any action which may be taken at any meeting of shareholders may be
taken without a meeting and without prior notice, if a consent in writing,
setting forth the actions so taken, shall be signed by the holders of
outstanding shares having not less than the minimum number of votes which would
be necessary to authorize or take such action at a meeting at which all shares
entitled to vote thereon were present and voted; provided, that except to fill a
vacancy as provided in Section 3.6 of these By-Laws, Directors may not be
elected by written consent except by unanimous written consent of all shares
entitled to vote for the election of Directors. Within five business days after
receiving such a written request from shareholders of the corporation, the Board
of Directors shall determine whether holders of outstanding share having not
less than the minimum number of votes which would be necessary to authorize or
take such action at a meeting at which all shares entitled to vote thereon were
present and voted have properly consented thereto in writing and notify the
requesting party of its finding.
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Unless the consents of all shareholders entitled to vote have been
solicited in writing, notice of the following actions approved by shareholders
without a meeting by less than unanimous written consent shall be given to those
shareholders entitled to vote who have not consented in writing at least ten
(10) days before the consummation of the action authorized by such approval:
1. Approval of a contract or other transaction between the
corporation and one or more of its Directors, or between the corporation and any
corporation, firm or association in which one or more of its Directors has a
material financial interest.
2. Approval of any indemnification to be made by the
corporation of a person who was or is a party or is threatened to be made a
party to any proceeding by reason of the fact that such person was or is an
agent of the corporation.
3. Approval of the principal terms of a reorganization.
4. Approval of a plan of distribution of the shares,
obligations or securities of any other corporation, or assets other than money,
which is not in accordance with the liquidation rights of the preferred shares
as specified in the Articles of Incorporation or a Certificate of Determination.
Unless the consents of all shareholders entitled to vote have been
solicited in writing, prompt notice of the taking of any corporate action not
listed above which is approved by shareholders without a meeting by less than
unanimous written consent, shall be given to those shareholders entitled to vote
who have not consented in writing.
Such notice shall be given as provided in Section 2.4 of these By-
Laws.
SECTION 2.10 PROXIES.
Every person entitled to vote shares may authorize another person or
persons to act by proxy with respect to such shares. No proxy shall be valid
after the expiration of eleven (11) months from the date thereof unless
otherwise provided in the proxy.
SECTION 2.11 REGULATION OF CONDUCT OF SHAREHOLDERS MEETINGS
At every meeting of the shareholders, the Chairman, if there is such
an officer, or if not, the President of the Corporation, or in his absence any
Vice President designated by the President or the Secretary, or in the absence
of the President or any Vice President or the Secretary a Chairman chosen by the
majority of the voting shares represented in person or by proxy, shall act as
Chairman. The Secretary of the Corporation or a person designated by the
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Chairman shall act as Secretary of the meeting. Unless otherwise approved by
the Chairman, attendance at the Shareholders' Meeting is restricted to
shareholders of record, persons authorized in accordance with Article II of
these By-Laws to act by proxy, and officers of the corporation.
The Chairman shall call the meeting to order, establish the agenda and
conduct the business of the meeting in accordance therewith or, at the
Chairman's discretion, it may be conducted otherwise in accordance with the
wishes of the shareholders in attendance.
The Chairman shall also conduct the meeting in an orderly manner, rule
on the precedence of, and procedure on, motions and other procedural matters,
and exercise discretion with respect to such procedural matters with fairness
and good faith toward all those entitled to take part. The Chairman may impose
reasonable limits on the amount of time taken up at the meeting on discussion in
general or on remarks by any one shareholder. Should any person in attendance
become unruly or obstruct the meeting proceedings, the Chairman shall have the
power to have such person removed from participation. Notwithstanding anything
in the By-Laws to the contrary, no business shall be conducted at a meeting
except in accordance with the procedures set forth in this Section 2.11. The
Chairman of a meeting shall, if the facts warrant, determine and declare to the
meeting that business was not properly brought before the meeting and in
accordance with the provisions of this Section 2.11, and if he should so
determine, he shall so declare to the meeting and any such business not properly
brought before the meeting shall not be transacted.
SECTION 2.12 ADVANCE NOTICE OF SHAREHOLDER PROPOSALS AND DIRECTORS
NOMINATIONS
At an annual or special meeting of the shareholders, only such
business shall be conducted as shall have been properly brought before the
meeting. To be properly brought before a meeting, business must be (a)
specified in the notice of meeting (or any supplement thereto) given by or at
the direction of the Board of Directors, (b) properly brought before the meeting
by or at the direction of the Board of Directors, (c) properly brought before an
annual meeting by a shareholder, or (d) properly brought before a special
meeting by a shareholder, but if, and only if, the notice of a special meeting
provides for business to be brought before the meeting by shareholders. For
business to be properly brought before a meeting by a shareholder, the
shareholder must have given timely notice thereof in writing to the Secretary of
the Corporation. To be timely, a shareholder proposal to be presented at an
annual meeting shall be received at the Corporation's principal executive
offices not less than 120 calendar days in advance of the date that the
Corporation's (or the Corporation's predecessor's) proxy statement was released
to shareholders in connection with the previous year's annual meeting of
shareholders, except that if no annual meeting was held in the previous year or
the date of the annual meeting has been
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changed by more than 30 calendar days from the date contemplated at the time of
the previous year's proxy statement, or in the event of a special meeting,
notice by the shareholder to be timely must be received not later than the close
of business on the tenth day following the day on which such notice of the date
of the meeting was mailed or such public disclosure was made. A shareholder's
notice to the Secretary shall set forth as to each matter the shareholder
proposes to bring before the annual or special meeting (a) a brief description
of the business desired to be brought before the annual or special meeting and
the reasons for conducting such business at the annual or special meeting, (b)
the name and address, as they appear on the Corporation's books, of the
shareholder proposing such business, (c) the class and number of shares of the
Corporation which are beneficially owned by the shareholder, and (d) any
material interest of the shareholder in such business.
ARTICLE III
DIRECTORS
SECTION 3.1 POWERS.
Subject to the limitations stated in the Articles of Incorporation,
these By-Laws, and the California Corporations Code as to actions which shall be
approved by the shareholders or by the affirmative vote of a majority of the
outstanding shares entitled to vote, and subject to the duties of Directors as
prescribed by the California Corporations Code, all corporate powers shall be
exercised by, or under the direction of, and the business and affairs of the
corporation shall be managed by, the Board of Directors.
SECTION 3.2 NUMBER OF DIRECTORS.
The authorized number of Directors of the corporation shall not be
less than five (5) nor more than eight (8) and the exact number of Directors
authorized shall be eight (8). The exact number of Directors may be fixed
within the limits specified in this Section 3.2 by a By-Law duly adopted by the
shareholders or by resolution of the Board of Directors. The minimum or maximum
number of Directors provided in this Section 3.2 may be changed or a definite
number fixed without provision for an indefinite number, by a By-Law duly
adopted by the affirmative vote of a majority of the outstanding shares entitled
to vote.
SECTION 3.3 ELECTION, TERM OF OFFICE AND VACANCIES.
The directors shall be divided into two classes, designated Class I
and Class II, as nearly equal in number as reasonably possible, with any overage
allocated in the discretion of the Board of Directors. The initial term of
office of
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the Class I directors will expire at the 1992 annual meeting of shareholders and
the initial term of office of the Class II directors will expire at the 1993
annual meeting of shareholders. At the 1992 annual meeting of shareholders and
at each annual meeting of shareholders thereafter, directors shall be elected,
to succeed directors of the class whose term expires, for a term of office to
expire at the second succeeding annual meeting after their election. All
directors, including directors elected to fill vacancies, shall hold office
until the expiration of the term for which elected and until their successors
are elected and qualified, except in the case of death, resignation or removal
of any director. The Board of Directors may declare vacant the office of a
director who has been declared to be of unsound mind by court order or convicted
of a felony. Vacancies on the Board of Directors not caused by removal may be
filled by a majority of the directors then in office, regardless of whether they
constitute a quorum, or by the sole remaining director. The shareholders may
elect a director at any time to fill any vacancy not filled, or which cannot be
filled, by the Board of Directors.
SECTION 3.4 RESIGNATION.
Any Director may resign effective upon giving written notice to the
Chairman of the Board, the President, the Secretary or the Board of Directors of
the corporation, unless the notice specifies a later time for the effectiveness
of such resignation. If the resignation is effective at a future time, a
successor may be elected to take office when the resignation becomes effective.
SECTION 3.5 REMOVAL.
Except as described below, any or all of the directors may be removed
without cause if such removal is approved by the affirmative vote of the
majority of the outstanding shares entitled to vote. No director may be removed
if the votes cast against removal, or not consenting in writing to removal,
would be sufficient to elect a director if voted cumulatively at an election at
which (i) the same total number of votes were cast (or, if removal is sought
through action by written consent, all shares entitled to vote were voted) and
(ii) either the number of directors elected at the most recent annual meeting of
shareholders, or if greater, the number of directors for whom removal is being
sought, were then being elected.
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SECTION 3.6 ORGANIZATION MEETING.
Immediately after each annual meeting of shareholders, the Board of
Directors shall hold a regular meeting for the purpose of organization, the
election of officers and the transaction of other business. No notice of such
meeting need be given.
SECTION 3.7 OTHER REGULAR MEETINGS.
The Board of Directors may provide by resolution the time and place
for the holding of regular meetings of the Board; provided, however, that if the
date so designated falls upon a legal holiday, then the meeting shall be held at
the same time and place on the next succeeding day which is not a legal holiday.
No notice of such regular meetings of the Board need be given.
SECTION 3.8 CALLING MEETINGS.
Meetings of the Board of Directors for any purpose or purposes shall
be held whenever called by the Chairman of the Board, the President or the
Secretary or any two Directors of the corporation.
SECTION 3.9 PLACE OF MEETINGS.
Meetings of the Board of Directors shall be held at any place within
or without the State of California which may be designated in the notice of the
meeting, or, if not stated in the notice or there is no notice, designated by
resolution of the Board. In the absence of such designation, meetings of the
Board of Directors shall be held at the principal executive office of the
corporation.
SECTION 3.10 TELEPHONIC MEETINGS.
Members of the Board may participate in a regular or special meeting
through use of conference telephone or similar communications equipment, so long
as all members participating in such meeting can hear one another.
Participation in a meeting pursuant to this Section 3.10 constitutes presence in
person at such meeting.
SECTION 3.11 NOTICE OF SPECIAL MEETINGS.
Written notice of the time and place of special meetings of the Board
of Directors shall be delivered personally to each Director, or sent to each
Director by mail, telephone, telegraph or electronic transmission. In case such
notice is sent by mail, it shall be deposited in the United States mail at
least four (4) days prior to the time of the holding of the meeting. In case
such notice is delivered personally, or by telephone, telegraph or
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electronic transmission, it shall be so delivered at least twenty-four (24)
hours prior to the time of the holding of the meeting. Such notice may be given
by the Secretary of the corporation or by the persons who called said meeting.
Such notice need not specify the purpose of the meeting, and notice shall not be
necessary if appropriate waivers, consents and/or approvals are filed in
accordance with Sections 3.12 of these By-Laws.
SECTION 3.12 WAIVER OF NOTICE.
Notice of a meeting need not be given to any Director who signs a
waiver of notice, whether before or after the meeting, or who attends the
meeting without protesting, prior thereto or at its commencement, the lack of
notice to such Director.
The transactions of any meeting of the Board of Directors, however
called and noticed or wherever held, shall be as valid as though had at a
meeting duly held after regular call and notice if a quorum is present and if,
either before or after the meeting, each of the Directors not present signs a
written waiver of notice, a consent to holding the meeting or an approval of the
minutes thereof. All such waivers, consents and approvals shall be filed with
the corporate records or made a part of the minutes of the meeting.
SECTION 3.13 ACTION WITHOUT MEETING.
Any action required or permitted to be taken by the Board of Directors
may be taken without a meeting, if all members of the Board shall individually
or collectively consent in writing to such action. Such written consent or
consents shall be filed with the minutes of the proceedings of the Board. Such
action by written consent shall have the same force and effect as a unanimous
vote of such Directors.
SECTION 3.14 QUORUM.
A majority of the authorized number of Directors shall constitute a
quorum for the transaction of business. Every act or decision done or made by a
majority of the Directors present at a meeting duly held at which a quorum is
present shall be the act of the Board of Directors, unless the Articles of
Incorporation, or the California Corporations Code, specifically requires a
greater number. In the absence of a quorum at any meeting of the Board of
Directors, a majority of the Directors present may adjourn the meeting as
provided in Section 3.15 of these By-Laws. A meeting at which a quorum is
initially present may continue to transact business, notwithstanding the
withdrawal of enough Directors to leave less than a quorum, if any action taken
is approved by at least a majority of the required quorum for such meeting.
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SECTION 3.15 ADJOURNMENT.
Any meeting of the Board of Directors, whether or not a quorum is
present, may be adjourned to another time and place by the vote of a majority of
the Directors present. Notice of the time and place of the adjourned meeting
need not be given to absent Directors if said time and place are fixed at the
meeting adjourned.
SECTION 3.16 INSPECTION RIGHTS.
Every Director shall have the absolute right at any time to inspect,
copy and make extra copies of, in person or by agent or attorney, all books,
records and documents of every kind and to inspect the physical properties of
the corporation.
SECTION 3.17 FEES AND COMPENSATION.
Directors shall not receive any stated salary for their services as
Directors; however, by resolution of the Board, non-employee Directors may
receive a fixed annual retainer for their services as Directors, as well as a
fixed fee, with or without expenses of attendance, for attendance at each Board
meeting, and each Board Committee meeting. Nothing herein contained shall be
construed to preclude any Director from serving the corporation in any other
capacity as an officer, agent, employee, or otherwise, and receiving
compensation therefor.
ARTICLE IV
EXECUTIVE COMMITTEE AND OTHER COMMITTEES
SECTION 4.1 EXECUTIVE COMMITTEE.
The Board of Directors may, by resolution adopted by a majority of the
authorized number of Directors, appoint an executive committee, consisting of
two or more Directors. The Board may designate one or more Directors as an
alternate member of such committee, who may replace any absent member of any
meeting of the committee. The executive committee, subject to any limitations
imposed by the California Corporations Code, or by resolution adopted by the
affirmative vote of a majority of the authorized number of Directors, or imposed
by the Articles of Incorporation or by these By-Laws, shall have and may
exercise all of the powers of the Board of Directors.
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SECTION 4.2 OTHER COMMITTEES.
The Board of Directors may, by resolution adopted by a majority of the
authorized number of Directors, designate such other committees, each consisting
of two or more Directors, as it may from time to time deem advisable to perform
such general or special duties as may from time to time be delegated to any such
committee by the Board of Directors, subject to the limitations contained in the
California Corporations Code, or imposed by the Articles of Incorporation or by
these By-Laws. The Board may designate one or more Directors as alternate
members of any committee, who may replace any absent member at any meeting of
the committee.
SECTION 4.3 MINUTES AND REPORTS.
Each committee shall keep regular minutes of its proceedings, which
shall be filed with the Secretary. All action by any committee shall be
reported to the Board of Directors at the next meeting thereof, and, insofar as
rights of third parties shall not be affected thereby, shall be subject to
revision and alteration by the Board of Directors.
SECTION 4.4 MEETINGS.
Except as otherwise provided in these By-Laws or by resolution of the
Board of Directors, each committee shall adopt its own rules governing the time
and place of holding and the method of calling its meetings and the conduct of
its proceedings and shall meet as provided by such rules, and it shall also meet
at the call of any member of the committee. Unless otherwise provided by such
rules or by resolution of the Board of Directors, committee meetings shall be
governed by Sections 3.11, 3.12 and 3.13 of these By-Laws.
SECTION 4.5 TERM OF OFFICE OF COMMITTEE MEMBERS.
The term of office of any committee member shall be as provided in the
resolution of the Board of Directors designating him but shall not exceed his
term as a Director. Any member of a committee may be removed at any time by
resolution adopted by Directors holding a majority of the directorships, either
present at a meeting of the Board or by written approval thereof.
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ARTICLE V
OFFICERS
SECTION 5.1 OFFICERS.
The officers of the corporation shall be a President, a Vice
President, a Secretary, and a Treasurer, who shall be the Chief Financial
Officer of the corporation. The corporation may also have, at the discretion of
the Board of Directors, a Chairman of the Board, one or more additional Vice
Presidents, one or more Assistant Treasurers, and such other officers as may be
appointed in accordance with the provisions of Section 5.3. One person may hold
two or more offices.
SECTION 5.2 ELECTION.
The officers of the corporation, except such officers as may be
appointed in accordance with the provisions of Sections 5.3 and 5.5, shall be
chosen annually by the Board of Directors and each shall hold his office until
he shall resign or shall be removed or otherwise disqualified to serve, or his
successor shall be elected and qualified.
SECTION 5.3 SUBORDINATE OFFICERS, ETC.
The Board of Directors may appoint such other officers as the business
of the corporation may require, each of whom shall hold office for such period,
have such authority and perform such duties as are provided in these
By-Laws or as the Board of Directors may from time to time determine.
SECTION 5.4 REMOVAL AND RESIGNATION.
Any officer may be removed, either with or without cause, by a
majority of the Directors at the time in office, at any regular or special
meeting of the Board, or, except in case of an officer upon whom such power of
removal may be conferred by the Board of Directors.
Any officer may resign at any time by giving written notice to the
corporation. Any such resignation shall take effect at the date of the receipt
of such notice or at any later time specified therein; and, unless otherwise
specified therein, the acceptance of such resignation shall not be necessary to
make it effective.
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SECTION 5.5 VACANCIES.
A vacancy in the office because of death, resignation, removal,
disqualification or any other cause shall be filled in the manner prescribed in
these By-Laws for regular appointments to such office.
SECTION 5.6 CHAIRMAN OF THE BOARD.
The Chairman of the Board, if there shall be such an officer, shall,
if present, preside at all meetings of the Board of Directors, and exercise and
perform such other powers and duties as may be from time to time assigned to him
by the Board of Directors as prescribed by these By-Laws.
SECTION 5.7 PRESIDENT.
Subject to such supervisory powers, if any, as may be given by the
Board of Directors to the Chairman of the Board, if there be such an officer,
the President shall be the general manager and chief executive officer of the
corporation and shall, subject to the control of the Board of Directors, have
general supervision, direction, and control of the business and officers of the
corporation. He shall preside at all meetings of the shareholders. He shall be
ex officio a member of all the standing committees, including the executive
committee, if any, and shall have the general powers and duties of management
usually vested in the office of president of a corporation, and shall have other
powers and duties as may be prescribed by the Board of Directors or by these
By-Laws.
SECTION 5.8 VICE PRESIDENT.
In the absence or disability of the President, the Vice Presidents in
order of their rank as fixed by the Board of Directors, or if not ranked, the
Vice President designated by the Board of Directors, 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 have
such other powers and perform such other duties as from time to time may be
prescribed for them respectively by the Board of Directors or these By-Laws.
SECTION 5.9 SECRETARY.
The Secretary shall keep, or cause to be kept, a book of minutes in
written form of the proceedings of the Board of Directors, committees of the
Board, and shareholders. Such minutes shall include all waivers of notice,
consents to the holding of meetings, or approvals of the minutes of meetings
executed pursuant to these By-Laws or the California Corporations Code. The
Secretary shall keep, or cause to be kept at the principal executive office or
at the office of the corporation's transfer agent or registrar, a record of its
shareholders,
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giving the name and addresses of all shareholders and the number and class of
shares held by each.
The Secretary shall give or cause to be given, notice of all meetings
of the shareholders and of the Board of Directors required by these By-Laws or
by law to be given, and shall keep the seal of the corporation in safe custody,
and shall have such other powers and perform such other duties as may be
prescribed by the Board of Directors or these By-Laws.
SECTION 5.10 TREASURER AND CHIEF FINANCIAL OFFICER.
The Treasurer and Chief Financial Officer shall keep and maintain, or
cause to be kept and maintained, adequate and correct books and records of
account in written form or any other form capable of being converted into
written form.
The Treasurer and Chief Financial Officer shall deposit all monies and
other valuables in the name and to the credit of the corporation with such
depositories as may be designated by the Board of Directors. He shall disburse
all funds of the corporation as may be ordered by the Board of Directors, shall
render to the President and Directors, whenever they request it, an account of
all of his transactions as Treasurer and Chief Financial Officer and of the
financial condition of the corporation, and shall have such other powers and
perform such other duties as may be prescribed by the Board of Directors or by
these By-Laws.
SECTION 5.11 ASSISTANT SECRETARY.
The Assistant Secretary shall have all the powers, and perform all the
duties of, the Secretary in the absence or inability of the Secretary to act.
SECTION 5.12 COMPENSATION.
The compensation of the officers shall be fixed from time to time by
the Board of Directors, and no officer shall be prevented from receiving such
compensation by reason of the fact that he is also a Director of the
corporation.
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ARTICLE VI
MISCELLANEOUS
SECTION 6.1 RECORD DATE.
The Board of Directors may fix, in advance, a time in the future as
the record date for the determination of shareholders entitled to notice of any
meeting or to vote or entitled to receive payment of any dividend or other
distribution or allotment of any rights or entitled to exercise any rights in
respect of any other lawful action. Shareholders on the record date are
entitled to notice and to vote or receive the dividend, distribution or
allotment of rights or to exercise the rights, as the case may be,
notwithstanding any transfer of any shares in the books of the corporation after
the record date, except as otherwise provided by law. Said record date shall
not be more than sixty (60) or less than ten (10) days prior to the date of any
such meeting, nor more than sixty (60) days prior to any other action.
A determination of shareholders of record entitled to notice of or to
vote at a meeting of shareholders shall apply to any adjournment of the meeting
unless the Board fixes a new record date for the adjourned meeting, but the
Board shall fix a new record date if the meeting is adjourned for more than
forty-five (45) days from the date set for the original meeting.
In order that the corporation may determine the shareholders entitled
to consent to corporate action in writing without a meeting, the Board of
Directors 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 of
Directors, 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 of
Directors. Any shareholder of record seeking to have the shareholders authorize
or take corporate action by written consent shall, by written notice to the
Secretary, request the Board of Directors to fix a record date. The Board of
Directors shall promptly, but in no event later than ten (10) days after the
date on which such request is received, adopt a resolution fixing the record
date.
If no record date is fixed by the Board of Directors, the record date
shall be fixed pursuant to the California Corporations Code.
SECTION 6.2 INSPECTION OF CORPORATE RECORDS.
The accounting books and records, and minutes of proceedings of the
shareholders and the Board of Directors and committees of the Board shall be
open to inspection upon written demand made upon the corporation by any
shareholder or the holder of a voting trust certificate, at any reasonable time
during usual business hours, for a purpose reasonably related to his interest as
a
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shareholder, or as the holder of such voting trust certificate. The record of
shareholders shall also be open to inspection by any shareholder or holder of a
voting trust certificate at any time during usual business hours upon written
demand on the corporation, for a purpose reasonably related to such holder's
interest as a shareholder or holder of a voting trust certificate. Such
inspection may be made in person or by an agent or attorney, and shall include
the right to copy and to make extracts.
SECTION 6.3 EXECUTION OF CORPORATE INSTRUMENTS.
The Board of Directors may, in its discretion, determine the method
and designate the statutory officer or officers, or other person or persons, to
execute any corporate instrument or document, or to sign the corporate name
without limitation, except where otherwise provided by law, and such execution
or signature shall be binding upon the corporation. Unless otherwise
specifically determined by the Board of Directors, formal contracts of the
corporation, promissory notes, mortgages, evidences of indebtedness, share
certificates, conveyances or other instruments in writing, and any assignment or
endorsement thereof, executed or entered into between the corporation and any
person, shall be signed by the Chairman of the Board, the President or any Vice
President and the Secretary, any Assistant Secretary, the Treasurer or any
Assistant Treasurer of the corporation.
SECTION 6.4 RATIFICATION BY SHAREHOLDERS.
The Board of Directors may, subject to applicable notice requirements,
in its discretion, submit any contract or act for approval or ratification of
the shareholders at any annual meeting of shareholders, or at any special
meeting of shareholders called for that purpose; and any contract or act which
shall be approved or ratified by the affirmative vote of a majority of the
shares entitled to vote represented at a duly held meeting at which a quorum is
present, or by the written consent of shareholders, shall be as valid and
binding upon the corporation and upon the shareholders thereof as though
approved or ratified by each and every shareholder of the corporation, unless a
greater vote is required by law for such purpose.
SECTION 6.5 ANNUAL REPORT.
For so long as the corporation has less than 100 holders of record
of its shares, the mandatory requirement of an annual report is hereby
expressly waived. The Board of Directors may, in its discretion, cause an
annual report to be sent to the shareholders. Such reports shall contain at
least a balance sheet as of the close of such fiscal year and an income
statement and statement of cash flows for such fiscal year, and shall be
accompanied by any report thereon of independent accountants, or if there is
no such report, the certificate of
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an authorized officer of the corporation that such statements were prepared
without audit in the books and records of the corporation.
A shareholder or shareholders holding at least five percent (5%) of
the outstanding shares of any class of the corporation may make a written
request to the corporation for an income statement and/or a balance sheet of the
corporation for the three-month, six-month or nine-month period of the current
fiscal year ended more that thirty (30) days prior to the date of the request,
and such statement shall be delivered or mailed to the person making the request
within thirty (30) days thereafter. Such statements shall be accompanied by the
report thereon, if any, of any independent accountants engaged by the
corporation or the certificates of an authorized officer of the corporation that
such financial statements were prepared without audit from the books and records
of the corporation.
SECTION 6.6 REPRESENTATIONS OF SHARES OF OTHER CORPORATIONS.
The President and Vice President of this corporation are authorized to
vote, represent and exercise on behalf of the corporation all rights incident to
any and all shares of any other corporation or corporations standing in the name
of this corporation. The authority herein granted to said officers to vote or
represent on behalf of this corporation any and all shares held by this
corporation and any other corporation or corporations may be exercised either by
such officers in person or by any person authorized so to do by proxy or power
of attorney and duly executed by said officers.
SECTION 6.7 INSPECTION OF BY-LAWS.
The corporation shall keep in its principal executive office in this
State the original or a copy of the By-Laws as amended or otherwise altered to
date, which shall be open to inspection by the shareholders at all reasonable
times during office hours.
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ARTICLE VII
SHARES OF STOCK
SECTION 7.1 FORM OF CERTIFICATES.
Certificates for shares of stock of the corporation shall be in such
form and design as the Board of Directors shall determine and shall be signed in
the name of the corporation by the Chairman of the Board, or the President or
Vice President and by the Treasurer or an Assistant Treasurer or the Secretary
or any Assistant Secretary. Each certificate shall state the certificate
number, the date of issuance, the number, class or series and the name of the
record holder of the shares represented thereby, the name of the corporation,
and, if the shares of the corporation are classified or if any class of shares
has two or more series, there shall appear the statement required by the
California Corporations Code.
SECTION 7.2 TRANSFER OF SHARES.
Shares of stock may be transferred in any manner permitted or provided
by law. Before any transfer of stock is entered upon the books of the
corporation, or any new certificate issued therefor, the older certificate,
properly endorsed, shall be surrendered and cancelled, except when a certificate
has been lost, stolen or destroyed.
SECTION 7.3 LOST CERTIFICATES.
The Board of Directors may order a new certificate for shares of stock
to be issued in the place of any certificate alleged to have been lost, stolen
or destroyed, but in every such case, the owner or the legal representative of
the owner of the lost, stolen or destroyed certificates may be required to give
the corporation a bond (or other adequate security) in such form and amount as
the Board may deem sufficient to indemnify it against any claim that may be made
against the corporation (including any expense or liability) on account of the
alleged loss, theft or destruction of any such certificate or issuance of such
new certificate.
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SECTION 7.4 EMPLOYEE STOCK PURCHASE PLAN.
The Board of Directors shall have the authority, in its discretion, to
adopt and carry out an employee stock purchase plan or agreement, containing
such terms and conditions as the Board may prescribe, for the issue and sale of
unissued shares of the corporation, or of its issued shares acquired or to be
acquired, to the employees of the corporation or to the employees of its
subsidiary corporations or to a trustee on their behalf, and for the payment of
such shares in installments or at one time, and for such consideration as may be
fixed by the Board, and may provide for aiding any such employees in paying for
such shares by compensation for services rendered, promissory notes or
otherwise.
ARTICLE VIII
INDEMNIFICATION OF DIRECTORS AND OFFICERS
SECTION 8.1 INDEMNIFICATION BY CORPORATION.
The corporation shall indemnify any Director, officer, employee or
other agent of the corporation against expenses, judgments, fines, settlements
and other amounts actually and reasonably incurred in a proceeding (including a
derivative action on behalf of the corporation) to which that person was or is
threatened to be made a party by reason of the fact that he was or is an agent
of the corporation, to the maximum extent permissible under the California
Corporations Code.
SECTION 8.2 ADVANCING EXPENSES.
The corporation shall advance to each Director or officer the expenses
incurred in defending any proceeding referred to in SECTION 8.1 of these By-Laws
prior to the final disposition of such proceeding as provided in the California
Corporations Code.
SECTION 8.3 NON-EXCLUSIVITY OF RIGHTS.
The rights conferred on any person in SECTIONS 8.1 and 8.2 shall not
be exclusive of any other right which such persons may have or hereafter acquire
under any statute, provision of the Articles of Incorporation, By-Law,
agreement, vote of shareholders or disinterested Directors or otherwise.
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SECTION 8.4 INDEMNIFICATION CONTRACTS.
The Board of Directors is authorized to enter into a contract with any
Director, officer, employee or agent of the corporation, or any person serving
at the request of the corporation as a Director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
including employee benefit plans, providing for indemnification rights
equivalent to or, if the Board of Directors so determines, greater than, those
provided for in this Article VIII.
SECTION 8.5 INSURANCE.
The corporation shall maintain insurance to the extent reasonably
available, at its expense, to protect itself and any such Director, officer,
employee or agent of the corporation or another corporation, partnership, joint
venture, trust or other enterprise against any such expense, liability or loss,
whether or not the corporation would have the power to indemnify such person
against such expense, liability or loss under the California Corporations Code.
SECTION 8.6 EFFECT OF AMENDMENT.
Any amendment, repeal or modification of any provision of this Article
VIII by the shareholders and the Directors of the corporation shall not
adversely affect any right or protection of a Director or officer of the
corporation existing at the time of such amendment, repeal or modification.
ARTICLE IX
AMENDMENTS
SECTION 9.1 POWER OF SHAREHOLDERS.
New By-Laws may be adopted or these By-Laws may be amended or repealed
by the affirmative vote of a majority of the outstanding shares entitled to vote
or by the written consent thereof, except as otherwise provided by law or by the
Articles of Incorporation.
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SECTION 9.2 POWER OF DIRECTORS.
Subject to the right of shareholders as provided in Section 9.1 of
these By-Laws, By-Laws other than a By-Law or amendment thereof specifying or
changing the authorized number of Directors, or the minimum or maximum number of
a variable Board of Directors, or changing from a fixed to a variable Board of
Directors or vice versa, may be adopted, amended or repealed by the approval of
the Board of Directors.
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