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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
May 30, 1997
(Date of earliest event reported)
PS GROUP HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-7141 33-0692068
(State or other jurisdiction (Commission file number) (I.R.S. Employer
of incorporation) Identification No.)
4370 La Jolla Village Drive, Suite 1050
San Diego, California 92122
(Address of principal executive offices and zip code)
(619) 642-2999
(Registrant's telephone number)
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ITEM 5. OTHER EVENTS
At the Annual Meeting of Stockholders of PS Group Holdings, Inc. (the
"Company") held on May 30, 1997 (the "Annual Meeting"), the Company's
stockholders approved and adopted the Board Unclassification Amendments (as
defined and set forth in the Company's Proxy Statement dated April 11, 1997 (the
"Proxy Statement")) to the Company's Restated Certificate of Incorporation (the
"Prior Restated Certificate") and to the Company's Restated By-Laws (the "Prior
Restated By-Laws"). Pursuant to such stockholder approval of the Board
Unclassification Amendments, the Company has filed a new Restated Certificate of
Incorporation (the "Current Restated Certificate") with the Secretary of State
of Delaware giving effect to the Board Unclassification Amendments proposed in
the Proxy Statement. Also pursuant to stockholder approval of the Board
Unclassification Amendments, the Prior Restated By-Laws were amended in the
manner proposed in the Proxy Statement. As a result of these actions, the Board
of Directors of the Company (the "Board") has been unclassified effective with
the 1998 Annual Meeting of Stockholders.
In addition to the foregoing, at a meeting of the Board immediately
following the Annual Meeting, the Board adopted certain additional amendments
(the "Additional Amendments") to the Prior Restated By-Laws to eliminate
provisions that had become redundant in light of the adoption of the Board
Unclassification Amendments, the prior adoption of the Advance Notice Amendments
(as defined in the Proxy Statement and previously filed by the Company as part
of a Current Report on Form 8-K dated March 13, 1997) and the holding of the
Annual Meeting.
The text of the Current Restated Certificate, as filed with the Secretary
of State of Delaware on May 30, 1997, is attached hereto as Exhibit 99.1. The
text of the Restated By-Laws, as amended effective May 30, 1997 (the "Current
Restated Bylaws"), marked to indicate the Additional Amendments, is attached
hereto as Exhibit 99.2. The text of the Restated By-Laws, reflecting the
Additional Amendments without markings, is attached hereto as Exhibit 99.3. The
text of a press release issued May 30, 1997 relating to the Annual Meeting is
attached hereto as Exhibit 99.4.
ITEM 7. (c) EXHIBITS
Exhibit
Number Description
- - ------- -----------
99.1 The Current Restated Certificate
99.2 The Current Restated By-Laws, marked to indicate the Additional
Amendments
99.3 The Current Restated By-Laws
99.4 Press Release dated May 30, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PS GROUP HOLDINGS, INC.
(Registrant)
Date: May 30, 1997
By: /s/ CHARLES E. RICKERSHAUSER, JR.
---------------------------------
Charles E. Rickershauser, Jr.
Chairman of the Board and Chief
Executive Officer
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EXHIBIT INDEX
-------------
The following exhibits are hereby filed as part of this Form 8-K:
<TABLE>
<CAPTION>
Exhibit Page
Number Description Number
- - ------ ----------- ------
<C> <S> <C>
99.1 The Current Restated Certificate
99.2 The Current Restated By-Laws, marked to indicate the Additional Amendments
99.3 The Current Restated By-Laws
99.4 Press Release dated May 30, 1997
</TABLE>
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EXHIBIT 99.1
RESTATED CERTIFICATE OF INCORPORATION
OF
PS GROUP HOLDINGS, INC.
(AS FILED WITH THE DELAWARE SECRETARY OF STATE
ON MAY 30, 1997)
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RESTATED CERTIFICATE OF INCORPORATION
OF
PS GROUP HOLDINGS, INC.
ARTICLE I
The name of this corporation is PS Group Holdings, Inc.
ARTICLE II
The address of this corporation's registered office in the State of Delaware
is Corporation Trust Center, 1209 Orange Street, in the City of Wilmington,
County of New Castle and the name of its registered agent at such address is
The Corporation Trust Company.
ARTICLE III
The purpose of this corporation is to engage in any lawful act or activity
for which corporations may be organized under the General Corporation Law of
Delaware.
ARTICLE IV
(A) The total number of shares of all classes of capital stock which this
corporation shall have the authority to issue is eleven million five hundred
thousand (11,500,000) shares, of which ten million five hundred thousand
(10,500,000) shares shall be of the par value of $1.00 per share and
designated "Common Stock" and one million (1,000,000) shares shall be of the
par value of $1.00 per share and designated "Preferred Stock".
(B) The Board of Directors is expressly authorized at any time, and from
time to time, to provide for the issuance of shares of Preferred Stock in one
or more series, with such voting powers, full or limited, or without voting
powers, and with such designation, preferences and relative, participating,
optional or other special rights, and qualifications, limitations or
restrictions thereof as shall be stated and expressed in the resolution or
resolutions providing for the issue thereof adopted by the Board of Directors,
and as are not stated and expressed in this Certificate of Incorporation, or
any amendment thereto, including (but without limiting the generality of the
foregoing) the following:
(1) The designation of and number of shares constituting such series;
(2) The dividend rate of such series, the conditions and dates upon which
such dividends shall be payable, the preference or relation which such
dividends shall bear to the dividends payable on any other class or classes
or of any other class of capital stock or series thereof and whether such
dividends shall be cumulative or noncumulative;
(3) Whether the shares of such series shall be subject to redemption by
this corporation, and, if made subject to such redemption, the times,
prices and other terms and conditions of such redemption;
(4) The terms and amount of any sinking fund provided for the purchase or
redemption of the shares of such series;
(5) Whether or not the sales of such series shall be convertible into or
exchangeable for shares of any other class or classes or of any other
series of any class or classes of capital stock of this corporation, and if
provision be made for conversion or exchange, the times, prices, rates,
adjustments, and other terms and conditions of such conversion or exchange;
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(6) Whether or not the shares of such series shall have voting rights, in
addition to the voting rights provided by law, and, if so, the terms and
conditions of such voting rights;
(7) The restrictions, if any, on the issue or reissue of any additional
Preferred Stock; and
(8) The rights of the holders of the shares of such series upon the
dissolution of, or upon the distribution of assets of, this corporation.
ARTICLE V
(A) Subject to any rights of the holders of any series of Preferred Stock to
elect additional directors under specified circumstances ("Preferred Stock
Rights"), the number of directors of this corporation shall be fixed and may
be altered from time to time as may be provided in the By-laws. The directors
of this corporation need not be stockholders therein.
(B) Subject to any Preferred Stock Rights, unless the By-laws of this
corporation are amended by the stockholders after the effectiveness of this
provision to provide for the division of the directors into classes, at each
annual meeting all directors shall be elected to hold office until their
respective successors are elected and qualified or until their earlier
resignation or removal. Subject to any Preferred Stock Rights, until such time
as the stockholders of this corporation adopt any such By-law, any director or
the entire Board of Directors may be removed with or without cause, by the
holders of a majority of the shares then entitled to vote at an election of
directors.
(C) Subject to any Preferred Stock Rights, in the event of any increase or
decrease in the authorized number of directors, each director then serving as
such shall nevertheless continue as a director until the expiration of his
current term, or his prior death, retirement, resignation, or removal.
(D) Subject to any Preferred Stock Rights, each director shall serve until
the end of the term to which he was elected and until his successor is elected
and qualified or until his death, retirement, resignation or removal, and any
newly-created directorship or vacancy, whether arising through death,
resignation or removal of a director or otherwise, shall, unless otherwise
provided by law or by act of the Board of Directors, be filled only by a
majority vote of the remaining directors, or by the sole remaining director if
only one such director remains.
ARTICLE VI
All of the powers of this corporation, insofar as the same may be lawfully
vested by this Certificate of Incorporation in the Board of Directors, are
hereby conferred upon the Board of Directors of this corporation. In
furtherance and not in limitation of that power, the Board of Directors shall
have the power to make, adopt, alter, amend and repeal from time to time By-
laws of this corporation, subject to the right of the stockholders entitled to
vote with respect thereto to adopt, alter, amend and repeal By-laws made by
the Board of Directors; provided, however, that By-laws shall not be adopted,
altered, amended or repealed by the stockholders of the corporation except by
the vote of the holders of not less than 66 2/3% of the outstanding shares of
Common Stock.
ARTICLE VII
To the fullest extent permitted by the General Corporation Law of the State
of Delaware as the same exists or may hereafter be amended, a director of the
corporation shall not be liable to the corporation or its stockholders for
monetary damages for breach of fiduciary duty as a director.
Any repeal or modification of this Article shall not result in any liability
for a director with respect to any action or omission occurring prior to such
repeal or modification.
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ARTICLE VIII
Action shall be taken by the stockholders only at annual or special meetings
of stockholders and stockholders may not act by written consent.
ARTICLE IX
(A) Subject to the provisions of any series of Preferred Stock which may at
the time be outstanding, the affirmative vote of the holders of not less than
66 2/3% of the outstanding shares of Common Stock of this corporation, which
shall include the affirmative vote of at least 50% of the outstanding shares
of Common Stock held by stockholders other than a "related person" (as
hereinafter defined), shall be required for the approval or authorization of
any "business combination" (as hereinafter defined) of this corporation with
any related person; provided, however, that such 66 2/3% voting requirement
shall not be applicable if:
(1) The business combination was approved by the Board of Directors of
the corporation either (a) prior to the acquisition by such related person
of the beneficial ownership of 20% or more of the outstanding shares of the
Common Stock of the corporation, or (b) after such acquisition, but only so
long as such related person has sought and obtained the unanimous approval
by the Board of Directors of such acquisition of more than 20% of the
Common Stock prior to such acquisition being consummated; or
(2) The business combination is solely between this corporation and
another corporation, 50% or more of the voting stock of which is owned by
this corporation and none of which is owned by a related person; provided
that each stockholder of this corporation receives the same type of
consideration in such transaction in proportion to his stockholdings; or
(3) All of the following conditions are satisfied:
(a) The cash or fair market value of the property, securities or
other consideration to be received per share by holders of Common Stock
of this corporation in the business combination is not less than the
higher of (i) the highest per share price (including brokerage
commissions, soliciting dealers' fees, dealer-management compensation,
and other expenses, including, but not limited to, costs of newspaper
advertisements, printing expenses and attorneys' fees) paid by such
related person in acquiring any of its holdings of this corporation's
Common Stock or (ii) an amount which bears the same or a greater
percentage relationship to the market price of this corporation's
Common Stock immediately prior to the announcement of such business
combination as the highest per share price determined in (i) above
bears to the market price of this corporation's Common Stock
immediately prior to the commencement of acquisition of this
corporation's Common Stock by such related person, but in no event in
excess of two times the highest per share price determined in (i),
above; and
(b) After becoming a related person and prior to the consummation of
such business combination, (i) such related person shall not have
acquired any newly issued shares of capital stock, directly or
indirectly, from this corporation (except upon conversion of
convertible securities acquired by it prior to becoming a related
person or upon compliance with the provision of this Article IX or as a
result of a pro rata stock dividend or stock split) and (ii) such
related person shall not have received the benefit, directly or
indirectly (except proportionately as a stockholder) of any loans,
advances, guarantees, pledges or other financial assistance or tax
credits provided by this corporation, or made any major changes in this
corporation's business or equity capital structure; and
(c) A proxy statement responsive to the requirements of the
Securities Exchange Act of 1934, whether or not this corporation is
then subject to such requirements, shall be mailed to the public
stockholders of this corporation for the purpose of soliciting
stockholder approval of such business combination and shall contain at
the front thereof, in a prominent place (i) any recommendations as to
the advisability (or inadvisability) of the business combination which
the continuing directors, or any
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outside directors, may choose to state, and (ii) the opinion of a
reputable national investment banking firm as to the fairness (or not)
of the terms of such business combination, from the point of view of
the remaining public stockholders of this corporation (such investment
banking firm to be engaged solely on behalf of the remaining public
stockholders, to be paid a reasonable fee for its services by this
corporation upon receipt of such opinion, to be one of the so-called
major bracket investment banking firms which has not previously been
associated with such related person and, if there are at the time any
such directors, to be selected by a majority of the continuing
directors and outside directors).
(B) For purposes of this Article IX:
(1) The term "business combination" shall mean (a) any merger or
consolidation of this corporation with or into a related person, (b)
any sale, lease, exchange, transfer or other disposition, including
without limitation, a mortgage or any other security device, of all or
any substantial part of the assets of this corporation (including
without limitation any voting securities of a subsidiary) or of a
subsidiary, to a related person, (c) any merger or consolidation of a
related person with or into this corporation or a subsidiary of this
corporation, (d) any sale, lease, exchange, transfer or other
disposition of all or any substantial part of the assets of a related
person to this corporation or a subsidiary of this corporation, (e) the
issuance of any securities of this corporation or a subsidiary of this
corporation to a related person, (f) the acquisition by this
corporation or a subsidiary of this corporation of any securities of a
related person, (g) any reclassification of Common Stock of this
corporation, or any recapitalization involving Common Stock of this
corporation, consummated within five years after a related person
becomes a related person, and (h) any agreement, contract or other
arrangement providing for any of the transactions described in this
definition of business combination;
(2) The term "related person" shall mean and include any individual,
corporation, partnership or other person or entity which, together with
its "affiliates" and "associates" (defined below), "beneficially" owns
(as this term is defined in Rule 13d-3 of the General Rules and
Regulations under the Securities Exchange Act of 1934), in the
aggregate 20% or more of the outstanding shares of the Common Stock of
this corporation, and any "affiliate" or "associate" (as those terms
are defined in Rule 12b-2 under the Securities Exchange Act of 1934) of
any such individual, corporation, partnership or other person or
entity;
(3) The term "substantial part" shall mean more than 10% of the total
assets of the corporation in question, as of the end of its most recent
fiscal year ending prior to the time the determination is being made;
(4) Without limitation, any shares of Common Stock of this
corporation which any related person has the right to acquire pursuant
to any agreement, or upon exercise of conversion rights, warrants or
options, or otherwise, shall be deemed beneficially owned by such
related person;
(5) For the purposes of subparagraph (A)(3) of this Article IX, the
term "other consideration to be received" shall include, without
limitation, Common Stock of this corporation retained by its existing
public stockholders in the event of a business combination with such
related person in which this corporation is the surviving corporation;
and
(6) With respect to any proposed business combination, the term
"continuing director" shall mean a director who was a member of the
Board of Directors of this corporation immediately prior to the time
that any related person involved in the proposed business combination
acquired 20% or more of the outstanding shares of Common Stock of the
corporation, and the term "outside director" shall mean a director who
is not (a) an officer or employee of this corporation or any relative
of an officer or employee, (b) a related person or an officer,
director, employee, associate or affiliate of a related person, or a
relative of any of the foregoing, or (c) a person having a direct or
indirect material business relationship with this corporation.
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ARTICLE X
The provisions set forth in this Article X and in Articles V, VI, VIII and
IX herein may not be repealed or amended in any respect, and no article
imposing cumulative voting in the election of directors may be added, unless
such action is approved by the affirmative vote of the holders of not less
than 66 2/3% of the outstanding shares of Common Stock of this corporation,
subject to the provisions of any series of Preferred Stock which may at the
time be outstanding; provided, however, that if there is a related person (as
defined in Article IX), such 66 2/3% vote must include the affirmative vote of
at least 50% of the outstanding shares of Common Stock held by stockholders
other than the related person.
ARTICLE XI
(A) TRANSFER RESTRICTIONS. In order to preserve the net operating loss
carryforwards (including any "net unrealized built-in loss," as defined under
applicable law), capital loss carryforwards, general business credit
carryforwards, alternative minimum tax credit carryforwards and other tax
benefits (collectively, the "Tax Benefits") to which the corporation or any
member of the corporation's "affiliated group" as that term is used in Section
1504 of the Internal Revenue Code of 1986, as amended from time to time, or
any successor statute (collectively, the "Code"), is or becomes entitled prior
to the Expiration Date (as hereinafter defined) pursuant to the Code and the
Treasury Regulations promulgated thereunder, as amended from time to time
("Treasury Regulations") or any applicable state statute, the following
restrictions shall apply until the earlier of (w) immediately following the
conclusion of the corporation's annual meeting of stockholders for the year
2000, unless the Expiration Date is extended as set forth in paragraph (H) of
this Article XI, (x) the day after the fifteenth (15th) anniversary of the
effective time of the merger of PSG Merger Subsidiary, Inc. with and into PS
Group, Inc. (the "Merger"), (y) the repeal of Section 382 of the Code if the
Board of Directors determines that the restrictions in this Article XI are no
longer necessary for the preservation of the Tax Benefits, and (z) the
beginning of a taxable year of the corporation to which the Board of Directors
determines that no Tax Benefits may be carried forward, unless the Board of
Directors shall fix an earlier or (subject to paragraph (H) of this Article
XI) later date in accordance with Section (E) of this Article XI. (The date on
which the restrictions of this Article XI expire hereunder is sometimes
referred to herein as the "Expiration Date.")
(1) Definitions. For purposes of this Article XI:
(a) "Option" shall have the meaning set forth in Treasury Regulation
Section 1.382-4;
(b) a "Permitted Transferee" shall mean any Person if, and only for
so long as, all of the Stock owned (directly or indirectly) by such
Person was Transferred to such Person by a Preexisting 5-Percent
Shareholder in a Transfer with respect to which the consent of the
Board of Directors was obtained pursuant to the penultimate sentence of
subparagraph (A)(3).
(c) a "Person" shall mean any individual, corporation, estate, trust,
association, company, partnership, joint venture, or similar
organization (including the corporation), or any other entity described
in Treasury Regulation Section 1.382-3(a)(1)(i);
(d) a "Preexisting 5-Percent Shareholder" shall mean (i) Berkshire
Hathaway Inc. or any direct or indirect majority-owned subsidiary of
Berkshire Hathaway Inc.; (ii) J.P. Guerin, Fabienne M. Guerin, the John
Patrick Guerin Trust, the Guerin Family Trust and the J. Patrick Guerin
III Trust; (iii) ESL Partners, L.P.; (iv) Donaldson, Lufkin & Jenrette
Securities Corporation, The Equitable Companies Incorporated, AXA, AXA
Assurances I.A.R.D. Mutuelle, AXA Assurances Vie Mutuelle, Alpha
Assurances I.A.R.D. Mutuelle, Alpha Assurances Vie Mutuelle, Uni Europe
Assurance Mutuelle, or any direct or indirect majority-owned subidiary
of the foregoing; (v) any other Person who establishes, on or before
April 30, 1996, to the satisfaction of the Board of Directors of the
corporation that such Person was a "5-percent shareholder" of PS Group,
Inc. within the meaning of Treasury Regulation Section 1.382-
2T(g)(1)(i) or a "first tier entity" of PS Group, Inc. within the
meaning of Treasury Regulation Section 1.382-2T(f)(9) on February 8,
1996; and (vi) any "5-percent
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owner" or "higher tier entity" (within the meaning of Treasury
Regulation Section 1.382-2T(f)(10) and 1.382-2T(f)(14), respectively)
of any Person described in clauses (i) through (v) above;
(e) a "Prohibited Ownership Percentage" shall mean any Stock
ownership that would cause a Person or Public Group to be a "5-percent
shareholder" of the corporation within the meaning of Treasury
Regulation Section 1.382-2T(g)(1)(i) or (ii); for this purpose, whether
a Person or Public Group would be a "5 percent shareholder" shall be
determined (i) without giving effect to the following provisions:
Treasury Regulation Sections 1.382-2T(g)(2), 1.382-2T(g)(3), 1.382-
2T(h)(2)(iii) and 1.382-2T(h)(6)(iii), (ii) by treating every Person or
Public Group which owns Stock, whether directly or by attribution, as
directly owning such Stock notwithstanding any further attribution of
such Stock to other Persons and notwithstanding Treasury Regulation
Section 1.382-2T(h)(2)(i)(A), (iii) by substituting the term "Person"
in place of "individual" in Treasury Regulation Section 1.382-2T(g)(1),
(iv) by taking into account ownership of Stock at any time during the
"testing period" as defined in Treasury Regulation Section 1.382-
2T(d)(1), and (v) by treating each day during the testing period as if
it were a "testing date" as defined in Treasury Regulation Section
1.382-2T(a)(4)(i); in addition, for the purpose of determining whether
any Person or Public Group has a Prohibited Ownership Percentage as of
any date, the definition of Stock set forth in part (e) of this
subparagraph (A)(1) shall be applied in lieu of the definition in
Treasury Regulation Section 1.382-2T(f)(18), except that any Option
shall be treated as Stock only to the extent treating it as Stock would
cause an increase in ownership of Stock by such Person and such Option
would be deemed exercised pursuant to Treasury Regulations effect for
time to time (disregarding whether treating such Option as exercised
would cause an ownership change);
(f) a "Public Group" shall have the meaning contained in Treasury
Regulation Section 1.382-2T(f)(13), excluding any "direct public group"
with respect to the corporation, as that term is used in Treasury
Regulation Section 1.382-2T(j)(2)(ii);
(g) "Stock" refers to all classes of stock of the corporation, all
Options to acquire stock of the corporation and all other interests
that would be treated as stock in the corporation pursuant to Treasury
Regulation Section 1.382-2T(f)(18)(iii), other than (i) stock described
in Section 1504(a)(4) of the Code and (ii) stock that would be
described in such Section 1504(a)(4) but is not so described solely
because it is entitled to vote as a result of dividend arrearages;
(h) "Transfer" shall mean any conveyance, by any means, of legal or
beneficial ownership (direct or indirect) of shares of Stock, whether
such means are direct or indirect, voluntary or involuntary, including,
without limitation, the transfer of any ownership interest in any
entity that owns (directly or indirectly) shares of Stock (and any
reference in this Article XI to a Transfer of Stock shall include any
Transfer of any interest in any such entity and references to the
Persons to whom Stock is Transferred shall include Persons to whom any
interest in any such entity shall have been Transferred); and
(i) "Transferee" means any Person to whom Stock is Transferred.
(2) Prohibited Transfers. From and after the effective time of the
Merger, no Person shall Transfer any Stock to any other Person to the
extent that such Transfer, if effected: (a) would cause the Transferee or
any Person or Public Group to have a Prohibited Ownership Percentage; (b)
would increase the Stock ownership percentage (determined in accordance with
Section 382 of the Code and the Treasury Regulations thereunder) of any
Transferee or any Person or Public Group having a Prohibited Ownership
Percentage; or (c) would create, under Treasury Regulation Section 1.382-
2T(j)(3)(i), a new "public group" as that term is used in Treasury Regulation
Section 1.382-2T(f)(13); provided, however, that (x) part (c) of this
subparagraph (A)(2) shall not prohibit any Transfer of Stock by (but not to)
a Preexisting 5-Percent Shareholder if such Transfer is not prohibited by
part (a) or (b) of this subparagraph (A)(2) and if such Stock was acquired by
such Preexisting 5-Percent Shareholder in exchange for shares of stock of PS
Group, Inc. that were owned by such Preexisting 5-Percent Shareholder on
February 8, 1996, (y) part (c) of this subparagraph (A)(2) shall not prohibit
any Transfer of Stock by (but not to) a Permitted Transferee if such
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Transfer is not prohibited by part (a) or (b) of this subparagraph (A)(2),
and (z) nothing in this Article XI shall prohibit the Transfer of any
interest in any Preexisting 5-Percent Shareholder.
(3) Board of Directors Consent to Certain Transfers. The Board of
Directors may permit any Transfer of Stock that would otherwise be
prohibited pursuant to subparagraph (A)(2) of this Article XI if
information relating to a specific proposed transaction is presented to the
Board of Directors and the Board of Directors determines that, based on the
facts in existence at the time of such determination, such transaction will
not delay, prevent or otherwise jeopardize the corporation's full
utilization of the Tax Benefits. The Board of Directors may impose any
conditions that it deems reasonable and appropriate in connection with such
a Transfer, including without limitation, restrictions on the ability of
any Transferee to Transfer Stock acquired through such Transfer; provided,
however, that any such restrictions shall be consented to by such
Transferee and the certificates representing such Stock shall include an
appropriate legend. Notwithstanding the foregoing, the Board of Directors
shall consent to any proposed Transfer of Stock by (but not to) a
Preexisting 5-Percent Shareholder that is otherwise prohibited by part (a)
of subparagraph (A)(2) (but is not prohibited by part (b) of subparagraph
(A)(2)) without the imposition of any conditions if the Board of Directors
determines that (i) the Percentage Point Change In Ownership immediately
following such Transfer of Stock would not exceed the Percentage Point
Change In Ownership immediately prior to such Transfer, and (ii) the Stock
to be Transferred was acquired by such Preexisting 5-Percent Shareholder in
exchange for shares of stock of PS Group, Inc. that were owned by such
Preexisting 5-Percent Shareholder on February 8, 1996; provided, however,
such consent shall not constitute consent with respect to any subsequent
Transfer or any Transfer of any other Stock. "Percentage Point Change in
Ownership" shall mean, on any date, the aggregate of the increase
(expressed in terms of percentage points) of the total amount of Stock
owned by each of those "5-percent shareholders" of the corporation (within
the meaning of Treasury Regulation Section 1.382-2T(g)(1)) whose percentage
ownership of Stock has increased as of such date over the lowest percentage
of Stock owned by each such 5-percent shareholder at any time during the
three-year period preceding such date, such determination to be made in
accordance with Treasury Regulation Section 1.382-2T(c) as if such date
were a "testing date."
(4) Waiver of Restrictions. Notwithstanding anything herein to the
contrary, the Board of Directors may waive any of the restrictions
contained in subparagraph (A)(2) of this Article XI in any instance in
which the Board of Directors determines that a waiver would be in the best
interests of the corporation, notwithstanding the effect of such waiver on
the Tax Benefits.
(B) PURPORTED TRANSFER IN VIOLATION OF TRANSFER RESTRICTION. Unless the
approval or waiver of the Board of Directors is obtained as provided in
subparagraphs (A)(3) or (A)(4) of this Article XI, any purported Transfer of
Stock in excess of the shares that could be Transferred to the Transferee
without restriction under subparagraph (A)(2) of this Article XI shall not be
effective to Transfer record, legal, beneficial or any other ownership of such
excess shares (the "Prohibited Shares") to the purported acquiror of any form
of such ownership (the "Purported Acquiror"), who shall not be entitled to any
rights as a stockholder of the corporation with respect to the Prohibited
Shares (including, without limitation, the right to vote or to receive
dividends with respect thereto). Any purported record, beneficial, legal or
other owner of Prohibited Shares shall be deemed to be a "Purported Acquiror"
of such Prohibited Shares. If there is more than one Purported Acquiror with
respect to certain Prohibited Shares (for example, if the Purported Acquiror
of record ownership of such Prohibited Shares is not the Purported Acquiror of
beneficial ownership of such Prohibited Shares), then references to "Purported
Acquiror" shall include any or all of such Purported Acquirors, as
appropriate. Subparagraphs (B)(1) and (B)(2) below shall apply only in the
case of violations of the restrictions contained in parts (a) and (b) of
subparagraph (A)(2) of this Article XI.
(1) Transfer of Prohibited Shares and Prohibited Distributions to Agent.
Upon demand by the corporation, the Purported Acquiror shall transfer or
cause the transfer of any certificate or other evidence of purported
ownership of the Prohibited Shares within the Purported Acquiror's
possession or control, along with any dividends or other distributions paid
by the corporation with respect to the Prohibited Shares that were received
by the Purported Acquiror (the "Prohibited Distributions"), to an agent
designated by
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<PAGE>
the corporation (the "Agent"). The Agent shall sell in an arms-length
transaction (through the New York Stock Exchange, if possible, but in any
event consistent with applicable law) any Prohibited Shares transferred to
the Agent by the Purported Acquiror. (The proceeds of such sale shall be
referred to as "Sales Proceeds.") If the Purported Acquiror has sold the
Prohibited Shares to an unrelated party in an arms-length transaction after
purportedly acquiring them, the Purported Acquiror shall be deemed to have
sold the Prohibited Shares for the Agent, and in lieu of transferring the
Prohibited Shares and Prohibited Distributions to the Agent shall transfer
to the Agent the Prohibited Distributions and the proceeds of such sale
(the "Resale Proceeds"), except to the extent that the Agent grants written
permission to the Purported Acquiror to retain a portion of the Resale
Proceeds not exceeding the amount that would have been payable by the Agent
to the Purported Acquiror pursuant to subparagraph (B)(2) below if the
Prohibited Shares had been sold by the Agent rather than by the Purported
Acquiror. Any purported Transfer of the Prohibited Shares by the Purported
Acquiror other than a transfer which (a) is described in the preceding
sentences of this subparagraph (B)(1) and (b) does not itself violate the
provisions of this Article XI shall not be effective to transfer any
ownership of the Prohibited Shares.
(2) Allocation of Sale Proceeds, Resale Proceeds and Prohibited
Distributions. The Sale Proceeds or the Resale Proceeds, if applicable,
shall be allocated to the Purported Acquiror up to the following amount:
(a) where applicable, the purported purchase price paid or value of
consideration surrendered by the Purported Acquiror for the Prohibited
Shares, or (b) where the purported Transfer of the Prohibited Shares to the
Purported Acquiror was by gift, inheritance, or any similar purported
Transfer, the fair market value of the Prohibited Shares at the time of
such purported Transfer. Any Resale Proceeds or Sales Proceeds in excess of
the Agent's expenses incurred in performing its duties hereunder and the
amount allocable to the Purported Acquiror pursuant to the preceding
sentence, together with any Prohibited Distributions (such excess amount
and Prohibited Distributions are collectively the "Subject Amounts"), shall
be paid over to an entity designated by the corporation that is described
in Section 501(c)(3) of the Code. In no event shall any such Prohibited
Shares or Subject Amounts inure to the benefit of the corporation or the
Agent, but such amounts may be used to cover expenses incurred by the Agent
in performing its duties hereunder.
(3) Prompt Enforcement Against Purported Acquiror. Within thirty (30)
business days of learning of the purported Transfer of Prohibited Shares to
a Purported Acquiror or a Transfer of Stock which would cause a Person or
Public Group to become a Prohibited Party (as hereinafter defined), the
corporation through its Secretary shall demand that the Purported Acquiror
or the Prohibited Party Group (as hereinafter defined) surrender to the
Agent the certificates representing the Prohibited Shares, or any Resale
Proceeds, and any Prohibited Distributions, and if such surrender is not
made by the Purported Acquiror or Prohibited Party Group within thirty (30)
business days from the date of such demand, the corporation shall institute
legal proceedings to compel such transfer; provided, however, that nothing
in this subparagraph (B)(3) shall preclude the corporation in its
discretion from immediately bringing legal proceedings without a prior
demand, and provided further that failure of the corporation to act within
the time periods set out in this subparagraph (B)(3) shall not constitute a
waiver of any right of the corporation to compel any transfer required by,
or take any action permitted by, this Article XI. Upon a determination by the
Board of Directors that there has been or is threatened a purported Transfer
of Prohibited Shares to a Purported Acquiror or a Transfer of Stock which
would cause a Person or Public Group to become a Prohibited Party or any other
violation of Section (A) of this Article XI, the Board of Directors may
authorize such additional action as it deems advisable to give effect to the
provisions of this Article XI, including, without limitation, refusing to give
effect on the books of the corporation to any such purported Transfer or
instituting proceedings to enjoin any such purported Transfer.
(4) Other Remedies. In the event that the Board of Directors determines
that a Person proposes to take any action in violation of subparagraph
(A)(2) of this Article XI, or in the event that the Board of Directors
determines after the fact that an action has been taken in violation of
subparagraph (A)(2) of this Article XI, the Board of Directors, subject to
subparagraph (B)(5) of this Article XI, may take such action as it deems
advisable to prevent or to refuse to give effect to any purported Transfer
or other action which would result, or has resulted, in such violation,
including, but not limited to, refusing to give effect to such
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<PAGE>
purported Transfer or other action on the books of the corporation or
instituting proceedings to enjoin such purported Transfer or other action.
If any Person shall knowingly violate, or knowingly cause any other Person
under the control of such Person ("Controlled Person") to violate,
subparagraph (A)(2) of this Article XI, then that Person and any Controlled
Person shall be jointly and severally liable for, and shall pay to the
corporation, such amount as will, after taking account of all taxes imposed
with respect to the receipt or accrual of such amount and all costs
incurred by the corporation as a result of such violation, put the
corporation in the same financial position as it would have been in had
such violation not occurred.
(5) No Restriction on Settlement of Exchange Transactions. Nothing
contained in this Article XI shall preclude the settlement of any
transaction involving Stock entered into through the facilities of the New
York Stock Exchange, the Pacific Stock Exchange or any other national
securities exchange. The application of the provisions and remedies
described in this Section (B) of this Article XI shall be deemed not to so
preclude any such settlement.
(6) Modification of Remedies For Certain Indirect Transfers. In the event
of any Transfer of Stock which does not involve a transfer of "securities"
of the corporation within the meaning of the Delaware General Corporation
Law, as amended ("Securities"), but which would cause a Person or Public
Group (the "Prohibited Party") to violate a restriction provided for in
part (a) or (b) of subparagraph (A)(2) of this Article XI, the application
of subparagraphs (B)(1) and (B)(2) shall be modified as described in this
subparagraph (B)(6). In such case, the Prohibited Party and/or any Person
or Public Group whose ownership of the corporation's Securities is
attributed to the Prohibited Party pursuant to Section 382 of the Code and
the Treasury Regulations thereunder (collectively, the "Prohibited Party
Group") shall not be required to dispose of any interest which is not a
Security, but shall be deemed to have disposed of, and shall be required to
dispose of, sufficient Securities (which Securities shall be disposed of in
the inverse order in which they were acquired by members of the Prohibited
Party Group), to cause the Prohibited Party, following such disposition,
not to be in violation of part (a) or (b) of subparagraph (A)(2) of this
Article XI. Such disposition shall be deemed to occur simultaneously with
the Transfer giving rise to the application of this provision, and such
number of Securities which are deemed to be disposed of shall be considered
Prohibited Shares and shall be disposed of through the Agent as provided in
subparagraphs (B)(1) and (B)(2) of this Article XI, except that the maximum
aggregate amount payable to the Prohibited Party Group in connection with
such sale shall be the fair market value of the Prohibited Shares at the
time of the Prohibited Transfer.
(C) OBLIGATION TO PROVIDE INFORMATION. The corporation may require as a
condition to the registration of the Transfer of any Stock that the proposed
Transferee furnish to the corporation all information reasonably requested by
the corporation with respect to all the direct or indirect beneficial or legal
ownership of Stock or Options to acquire Stock by the proposed Transferee and
by Persons controlling, or controlled by or under common control with the
proposed Transferee.
(D) LEGENDS. All certificates issued by the corporation evidencing ownership
of shares of Stock of this corporation that are subject to the restrictions on
Transfer contained in this Article XI shall bear a conspicuous legend
referencing the restrictions set forth in this Article XI.
(E) FURTHER ACTIONS. Subject to subparagraph (B)(5) of this Article XI,
nothing contained in this Article XI shall limit the authority of the Board of
Directors to take such other action to the extent permitted by law as it deems
necessary or advisable to protect the corporation in preserving the Tax
Benefits. Without limiting the generality of the foregoing, in the event of a
change in law (including applicable regulations) making one or more of the
following actions necessary or desirable or in the event that the Board of
Directors believes one or more of such actions is in the best interest of the
corporation, the Board of Directors may (1) accelerate or, subject to
paragraph (H) of this Article XI, extend the Expiration Date, (2) modify the
definitions of any terms set forth in this Article XI or (3) conform any
provisions of Section (A) of this Article XI to the extent necessary to make
such provisions consistent with the Code and Treasury Regulations following
any changes therein; provided that the Board of Directors shall determine in
writing that such acceleration, extension, change or
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<PAGE>
modification is reasonably necessary or desirable to preserve the Tax Benefits
or that the continuation of these restrictions is no longer reasonably
necessary for the preservation of the Tax Benefits, as the case may be, which
determination may be based upon an opinion of legal counsel to the corporation
and which determination shall be filed with the Secretary of the corporation
and mailed by the Secretary to the stockholders of this corporation within ten
(10) days after the date of any such determination. In addition, the Board of
Directors may, to the extent permitted by law, from time to time establish,
modify, amend or rescind By-laws, regulations and procedures of the
corporation not inconsistent with the express provisions of this Article XI
for purposes of determining whether any acquisition of Stock would jeopardize
the corporation's ability to preserve and use the Tax Benefits, and for the
orderly application, administration and implementation of the provisions of
this Article XI. Such procedures and regulations shall be kept on file with
the Secretary of the corporation and with its transfer agent and shall be made
available for inspection by the public and, upon request, shall be mailed to
any holder of Stock. The Board of Directors of the corporation shall have the
exclusive power and authority to administer this Article XI and to exercise
all rights and powers specifically granted to the Board of Directors or the
corporation, or as may be necessary or advisable in the administration of this
Article XI, including without limitation, the right and power to (1) interpret
the provisions of this Article XI, and (2) make all calculations and
determinations deemed necessary or advisable for the administration of this
Article XI. All such actions, calculations, interpretations and determinations
which are done or made by the Board of Directors in good faith shall be final,
conclusive and binding on the corporation, the Agent, and all other parties;
provided, however, the Board of Directors may delegate all or any portion of
its duties and powers under this Article XI to a committee of the Board of
Directors as it deems necessary or advisable.
(F) BENEFITS OF THIS ARTICLE XI. Nothing in this Article XI shall be
construed to give to any Person other than the corporation or the Agent any
legal or equitable right, remedy or claim under this Article XI. This Article
XI shall be for the sole and exclusive benefit of the corporation and the
Agent.
(G) SEVERABILITY. If any provision of this Article XI or the application of
any such provision to any Person or under any circumstance shall be held
invalid, illegal, or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision of this Article XI.
(H) AUTOMATIC EXPIRATION UNLESS STOCKHOLDER APPROVAL OBTAINED.
Notwithstanding anything to the contrary in this Article XI, and subject to
the power of the Board of Directors to accelerate the Expiration Date pursuant
to paragraph (E) of this Article XI, the Expiration Date shall occur
immediately following the conclusion of the corporation's annual meeting of
stockholders for the year 2000, unless the stockholders, by the affirmative
vote of the holders of not less than 50% of the outstanding shares of Common
Stock of the corporation entitled to vote at such annual meeting, pass a
resolution extending the Expiration Date, in which case the Expiration Date
shall be extended as required by the terms of such resolution.
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EXHIBIT 99.2
RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
AS AMENDED EFFECTIVE MAY 30, 1997
NOTE TO EDGAR VERSION: Added language is indicated by underscores and deleted
language is indicated by brackets.
<PAGE>
RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
AS AMENDED EFFECTIVE MAY 30, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
ARTICLE I Offices............................................................ 1
ARTICLE II Meetings of Stockholders........................................... 1
ARTICLE III Directors.......................................................... 4
ARTICLE IV Officers........................................................... 7
ARTICLE V Seal............................................................... 9
ARTICLE VI Form of Stock Certificate.......................................... 9
ARTICLE VII Representation of Shares of Other Corporations..................... 9
ARTICLE VIII Transfers of Stock................................................. 9
ARTICLE IX Lost, Stolen or Destroyed Certificates............................. 9
ARTICLE X Record Date........................................................ 10
ARTICLE XI Registered Stockholders............................................ 10
ARTICLE XII Fiscal Year........................................................ 10
ARTICLE XIII Notices............................................................ 10
ARTICLE XIV Amendments......................................................... 11
ARTICLE XV Indemnification and Insurance...................................... 11
</TABLE>
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RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
A DELAWARE CORPORATION
(HEREINAFTER CALLED THE "CORPORATION")
ARTICLE I
OFFICES
SECTION 1. Registered Office. The registered office of this Corporation
shall be in the City of Wilmington, County of New Castle, State of Delaware,
and the name of the resident agent in charge thereof is The Corporation Trust
Company.
SECTION 2. Other Offices. The Corporation may also have offices at such
other places, either within or without the State of Delaware, as the Board of
Directors (the "Board") may from time to time designate or the business of the
Corporation may require.
ARTICLE II
MEETINGS OF STOCKHOLDERS
SECTION 1. Place of Meetings. Meetings of stockholders shall be held at such
time and place, within or without the State of Delaware, as shall be stated in
the notice of the meeting or in a duly executed waiver of notice thereof.
SECTION 2. Annual Meetings. Annual meetings of stockholders shall be held on
the fourth Tuesday of May, if not a legal holiday, and if a legal holiday,
then on the next secular day following, at 10:00 a.m., or at such other date
and time set by the Board and stated in the notice of the meeting, at which
the stockholders shall elect a Board, and transact such other business as may
properly be brought before the meeting.
Nominations of persons for election to the Board and the proposal of
business to be transacted by the stockholders may be made at an annual meeting
of stockholders (a) pursuant to the Corporation's notice with respect to such
meeting, (b) by or at the direction of the Board or (c) by any stockholder of
record of the Corporation who was a stockholder of record at the time of the
giving of the notice provided for in the following paragraph, who is entitled
to vote at the meeting and who has complied with the notice procedures set
forth in this section.
For nominations or other business to be properly brought before an annual
meeting by a stockholder pursuant to clause (c) of the foregoing paragraph,
the stockholder must have given timely notice thereof in writing to the
Secretary of the Corporation, such business must be a proper matter for
stockholder action under the General Corporation Law of the State of Delaware
and, if the stockholder, or the beneficial owner on whose behalf any such
proposal or nomination is made, solicits or participates in the solicitation
of proxies in support of such proposal or nominees, the stockholder must have
timely indicated its, or such beneficial owner's, intention to do so as
provided in subclause (c) (iii) of this paragraph. To be timely, a
stockholder's notice shall be delivered to the Secretary at the principal
executive offices of the Corporation not less than 90 days prior to the first
anniversary of the preceding year's annual meeting of stockholders; provided,
however, that if the date of the annual meeting is advanced more than 30 days
prior to, or delayed by more than 60 days after, such anniversary date, notice
by the stockholder to be timely must be so delivered not later than the close
of business on the later of the 90th day prior to such annual meeting or the
10th day following the day on which public announcement of the date of such
meeting is first made. Such stockholder's notice shall set forth: (i) (a) as
to
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<PAGE>
each person whom the stockholder proposes to nominate for election or
reelection as a director, all information relating to such person as would be
required to be disclosed in solicitations of proxies for the election of such
nominees as directors pursuant to Regulation 14A under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and such person's written
consent to serving as a director if elected; (b) as to any other business that
the stockholder proposes to bring before the meeting, a brief description of
such business, the reasons for conducting such business at the meeting and any
material interest in such business of such stockholder and the beneficial
owner, if any, on whose behalf the proposal is made; and (c) as to the
stockholder giving the notice and the beneficial owner, if any, on whose
behalf the nomination or proposal is made, (i) the name and address of such
stockholder, as they appear on the Corporation's books, and of such beneficial
owner, (ii) the class and number of shares of the Corporation which are owned
beneficially and of record by such stockholder and such beneficial owner, and
(iii) whether either such stockholder or beneficial owner intends to solicit
or participate in the solicitation of proxies in favor of such proposal or
nominee(s).
Notwithstanding anything in the second sentence of the second paragraph of
this Section 2 to the contrary, in the event that the number of directors to
be elected to the Board is increased and there is no public announcement
naming all of the nominees for director or specifying the size of the
increased Board made by the Corporation at least 100 days prior to the first
anniversary of the preceding year's annual meeting, a stockholder's notice
required by this By-law shall also be considered timely, but only with respect
to nominees for any new positions created by such increase, if it shall be
delivered to the Secretary at the principal executive offices of the
Corporation not later than the close of business on the 10th day following the
day on which such public announcement is first made by the Corporation.
Only persons nominated in accordance with the procedures set forth in this
section shall be eligible to serve as directors and only such business shall
be conducted at an annual meeting of stockholders as shall have been brought
before the meeting in accordance with the procedures set forth in this
section. The chair of the meeting shall have the power and the duty to
determine whether a nomination or any business proposed to be brought before
the meeting has been made in accordance with the procedures set forth in these
By-laws and, if any proposed nomination or business is not in compliance with
these By-laws to declare that such defective proposed business or nomination
shall not be presented for stockholder action at the meeting and shall be
disregarded.
For purposes of this Section 2, "public announcement" shall mean disclosure
in a press release reported by the Dow Jones News Service, Associated Press or
a comparable national news service or in a document publicly filed by the
Corporation with the Securities and Exchange Commission pursuant to Section
13, 14 or 15(d) of the Exchange Act.
Notwithstanding the foregoing provisions of this By-law, a stockholder shall
also comply with all applicable requirements of the Exchange Act and the rules
and regulations thereunder with respect to matters set forth in this By-law.
Nothing in this Section 2 shall be deemed to affect any rights of stockholders
to request inclusion of proposals in the Corporation's proxy statement
pursuant to Rule 14a-8 under the Exchange Act.
[The provisions of the second through the seventh paragraphs of this Section
2 shall apply to any annual meeting of stockholders following the 1997 annual
meeting.]
SECTION 3. Special Meetings. Special meetings of stockholders, for any
purpose or purposes, unless otherwise prescribed by applicable law or by the
Certificate of Incorporation, may be called by the Chairman of the Board (or,
if the Board does not appoint a Chairman of the Board, the Chief Executive
Officer) and shall be called by the Chairman of the Board (or, if the Board
does not appoint a Chairman of the Board, the Chief Executive Officer) or
Secretary at the request in writing of a majority of the Board, or if, and
only if, the special meeting is to be called for the purpose of removing a
member of the Board (a "Director") for cause, at the request in writing of
stockholders owning a majority in amount of the entire capital stock of the
Corporation issued and outstanding and entitled to vote. Such request shall
state the purpose or purposes of the proposed meeting and the business
transacted at any such special meeting of stockholders shall be limited to the
purposes set forth in the notice. Stockholders may not request the call of a
special meeting for any purpose other than as provided herein.
2
<PAGE>
Only such business shall be conducted at a special meeting of stockholders
as shall have been brought before the meeting pursuant to the Corporation's
notice of meeting. Nominations of persons for election to the Board may be
made at a special meeting of stockholders at which directors are to be
selected pursuant to the Corporation's notice of meeting (a) by or at the
direction of the Board or (b) by any stockholder of record of the Corporation
who is a stockholder of record at the time of giving of notice provided for in
this paragraph, who shall be entitled to vote at the meeting and who complies
with the notice procedures set forth in this Section 3. Nominations by
stockholders of persons for election to the Board may be made at such a
special meeting of stockholders if the notice that such stockholder would be
required to give, in the case of a nomination proposed to be made at an annual
meeting of stockholders, by the third paragraph of Article II, Section 2 of
these By-laws shall be delivered to the Secretary at the principal executive
offices of the Corporation not later than the close of business on the later
of the 90th day prior to such special meeting or the 10th day following the
day on which public announcement is first made of the date of the special
meeting and of the nominee(s) proposed by the Board to be elected at such
meeting.
SECTION 4. Stockholder Lists. The officer who has charge of the stock ledger
of the Corporation shall prepare and make, at least ten days before every
meeting of stockholders, a complete list of stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each
stockholder.
Such list shall be open to the examination of any stockholder, for any
purpose germane to the meeting, during ordinary business hours, for a period
of at least ten 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 at the place of the meeting, and the list shall also be
available at the meeting during the whole time thereof, and may be inspected
by any stockholder who is present.
SECTION 5. Notice of Meetings. Written notice of each meeting of
stockholders, whether annual or special, stating the place, date and hour of
the meeting shall be given to each stockholder entitled to vote at such
meeting not less than ten nor more than sixty days before the date of the
meeting.
SECTION 6. Quorum and Adjournment. The holders of a majority of the stock
issued and outstanding and entitled to vote thereat, present in person or
represented by proxy, shall constitute a quorum for holding all meetings of
stockholders, except as otherwise provided by applicable law or by the
Certificate of Incorporation. If it shall appear that such quorum is not
present or represented at any meeting of stockholders, the Chairman of the
meeting shall have 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 such adjourned 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 noticed. The Chairman of the meeting
may determine that a quorum is present based upon any reasonable evidence of
the presence in person or by proxy of stockholders holding a majority of the
outstanding votes, including without limitation, evidence from any record of
stockholders who have signed a register indicating their presence at the
meeting.
SECTION 7. Voting. In all matters, the vote of the holders of a majority of
the capital stock having voting power 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 applicable law or of the
Certificate of Incorporation, a different vote is required in which case such
express provision shall govern and control the decision of such question.
SECTION 8. Proxies. Each stockholder entitled to vote at a meeting of
stockholders may authorize in writing or by any other means as is provided in
Section 212 of the Delaware General Corporation Law another person or persons
to act for him by proxy, but no proxy shall be voted or acted upon after
eleven months from its date, unless the person executing the proxy specifies
therein the period of time for which it is to continue in force.
SECTION 9. Judges of Election. The Board may appoint a Judge or Judges of
Election for any meeting of stockholders. Such Judges shall decide upon the
qualification of the voters and report the number of shares
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<PAGE>
represented at the meeting and entitled to vote, shall conduct the voting and
accept the votes, and when the voting is completed shall ascertain and report
the number of shares voted respectively for and against each position upon
which a vote is taken by ballot. The Judges need not be stockholders, and any
officer of the Corporation may be a Judge on any position other than a vote
for or against a proposal in which he shall have a material interest.
[SECTION 10. Notice of Stockholder Business at the 1997 Annual Meeting. This
Section 10 shall apply to the 1997 annual meeting of the stockholders of the
Corporation; notice of stockholder business at all subsequent annual meetings
shall be governed by Section 2 of Article II of these By-laws (and not this
Section 10) and notice of stockholder business at all special meetings shall
be governed by Section 3 of Article II of these By-laws. At an annual meeting
of the stockholders, only such business shall be conducted as shall have been
brought before the meeting (a) by or at the direction of the Board or (b) by
any stockholder of the Corporation who complies with the notice procedures set
forth in this Section 10. For business to be properly brought before an annual
meeting by a stockholder, the stockholder must have given timely notice
thereof in writing to the Secretary of the Corporation. To be timely, a
stockholder's notice must be delivered to or mailed and received at the
principal executive offices of the Corporation, not less than 30 days nor more
than 60 days prior to the meeting; provided, however, that in the event that
less than 40 days' notice or prior public disclosure of the date of the
meeting is given or made to stockholders, notice by the stockholder to be
timely must be received not later than the close of business on the 10th day
following the day on which such notice of the date of the annual meeting was
mailed or such public disclosure was made. A stockholder's notice to the
Secretary shall set forth as to each matter the stockholder proposes to bring
before the annual meeting (a) a brief description of the business desired to
be brought before the annual meeting and the reasons for conducting such
business at the annual meeting, (b) the name and address, as they appear on
the Corporation's books, of the stockholder proposing such business, (c) the
class and number of shares of the Corporation which are beneficially owned by
the stockholder and (d) any material interest of the stockholder in such
business. Notwithstanding anything in the By-laws to the contrary, no business
shall be conducted at an annual meeting except in accordance with the
procedures set forth in this Section 10. The Chairman of an annual meeting
shall, if the facts warrant, determine and declare to the meeting that
business was not properly brought before the meeting in accordance with the
provisions of this Section 10, 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.]
ARTICLE III
DIRECTORS
SECTION 1. Powers. The Board shall have the power to manage or direct the
management of the property, business and affairs of the Corporation, and
except as expressly limited by law, to exercise all of its corporate powers.
The Board may establish procedures and rules, or may authorize the Chairman of
any meeting of stockholders to establish procedures and rules, for the fair
and orderly conduct of any stockholders meeting, including without limitation,
registration of the stockholders attending the meeting, adoption of an agenda,
establishing the order of business at the meeting, recessing and adjourning
the meeting for the purposes of tabulating any votes and receiving the result
thereof, the timing of the opening and closing of the polls, and the physical
layout of the facilities for the meeting.
SECTION 2. Number. The Board shall consist of one or more members in such
number as shall be determined from time to time by resolution of the Board.
Until otherwise determined by such resolution, the Board shall consist of five
members. Directors need not be stockholders, and each Director shall serve
until his successor is elected and qualified or until his death, retirement,
resignation or removal.
SECTION 3. Nominations. Nominations of candidates for election as Directors
of the Corporation may be made (a) by the Board or (b) by any stockholder
--- ---
[entitled to vote at a meeting at which one or more Directors are to be elected
(an "Election Meeting")] who complies with the provisions of Article II,
-----------------------------------------------
Section 2 of these By-Laws or Article II, Section 3 of these By-Laws, as
- - ------------------------------------------------------------------------
applicable.
- - ----------
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[Nominations made by the Board shall be made at a meeting of the Board or by
written consent of Directors in lieu of a meeting, not less than thirty days
prior to the date of an Election Meeting. At the request of the Secretary of
the Corporation, each proposed nominee shall provide the Corporation with such
information concerning himself as is required, under the rules of the
Securities and Exchange Commission, to be included in the Corporation's proxy
statement soliciting proxies for his election as a Director.]
[Not less than thirty days prior to the date of an Election Meeting any
stockholder who intends to make a nomination at the Election Meeting shall
deliver a notice to the Secretary of the Corporation setting forth (i) the
name, age, business address, and residence address of each nominee proposed in
such notice, (ii) the principal occupation or employment of each such nominee,
(iii) the number of shares of capital stock of the Corporation which are
beneficially owned by each such nominee and (iv) such other information
concerning each such nominee as would be required, under the rules of the
Securities and Exchange Commission, in a proxy statement soliciting proxies
for the election of such nominees. Such notice shall include a signed consent
to serve as a Director of the Corporation, if elected, of each such nominee.]
[In the event that a person is validly designated as a nominee and shall
thereafter become unable or unwilling to stand for election to the Board, the
Board or the stockholder who proposed such nominee, as the case may be, may
designate a substitute nominee.]
[If the chairman of the Election Meeting determines that a nomination was not
made in accordance with the foregoing procedures, such nomination shall be
void.]
[The provisions of the third through fifth paragraphs of this Section 3 shall
apply to any nominations by stockholders for election as a Director of the
Corporation at the 1997 annual meeting of stockholders; nominations by
stockholders for election as a Director of the Corporation at all subsequent
annual meetings shall be governed by Section 2 of Article II of these By-laws
(and not this Section 3) and nominations by stockholders for election as a
Director of the Corporation at all special meetings shall be governed by
Section 3 of Article II of these By-laws (and not this Section 3).]
SECTION 4. Vacancies and Newly Created Directorships. Subject to any rights
of holders of any Series of Preferred Stock of the Corporation, each director
shall serve until the end of the term to which he was elected and until his
successor is elected and qualified or until his death, retirement, resignation
or removal, and any newly-created directorship or vacancy, whether arising
through death, resignation or removal of director or otherwise, shall, unless
otherwise provided by law or by act of the Board of Directors, be filled only
by a majority vote of the remaining directors, or by the sole remaining
director if only one such director remains.
SECTION 5. Initial Meeting. The Board shall meet as soon as practicable
after the annual election of Directors and notice of such first meeting shall
not be required.
SECTION 6. Regular Meeting. Regular meetings of the Board shall be held
without call or notice at such time and place as shall from time to time be
fixed by standing resolution of the Board.
SECTION 7. Special Meetings. Special meetings of the Board may be called at
any time, and for any purpose permitted by law, by the Chairman of the Board,
the Chief Executive Officer or by the Secretary on the request (whether
written or oral) of any two members of the Board, which meetings shall be held
at the time and place designated by the person or persons calling the meeting.
Notice of the time and place of any such meetings shall be given to the
Directors by the Secretary, or in case of his absence, refusal or inability to
act, by any other officer. Any such notice may be given by mail, by private
express courier service, by telegraph, by telecopier, by telephone, by
personal service, or by any thereof as to different Directors.
Notice to a Director by mail or by private express courier service shall be
deemed to have been given if addressed to such Director at the address shown
upon the records of the Corporation for such Director (or as may have been
given to the Corporation by such Director for purposes of notice) and
deposited in a United States Post Office or delivered to such private express
courier service, as the case may be, at least forty-eight hours
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before the time of the meeting. Any other written notice shall be deemed to
have been given at the time it is personally delivered to the recipient or is
delivered to a common carrier for transmission, or actually transmitted to the
recipient by the person giving the notice by electronic means. Oral notice
shall be deemed to have been given at the time it is communicated, in person
or by telephone or wireless, to the recipient or to a person at the office or
home of the recipient who may reasonably be expected to communicate the notice
to the recipient.
A notice need not specify the purpose of any special meeting of the Board.
Whenever any Director has been absent from any meeting of the Board for which
notice has not been dispensed with, an entry in the minutes of such meeting to
the effect that notice has been duly given shall be conclusive and
incontrovertible evidence that due notice of such meeting was given to such
Director.
SECTION 8. Quorum. At all meetings of the Board a majority of the whole
Board shall be necessary and sufficient to constitute a quorum for the
transaction of business, 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 applicable law or by the
Certificate of Incorporation or by these By-laws. Any meeting of the Board may
be adjourned to meet again at a stated day and hour. Even though no quorum is
present, as required in this Section, a majority of the Directors present at
any meeting of the Board, either regular or special, may adjourn from time to
time until a quorum be had, but no later than the time fixed for the next
regular meeting of the Board. Notice of any adjourned meeting need not be
given.
SECTION 9. Fees and Compensation. Each Director and each member of a
committee of the Board shall receive such fees and reimbursement of expenses
incurred on behalf of the Corporation or in attending meetings as the Board
may from time to time determine.
SECTION 10. Meetings by Telephonic Communication. Members of the Board or
any committee thereof may participate in a regular or special meeting of such
Board or committee by means of conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other, if the standing resolutions fixing the time and place of a regular
meeting or if the notice of the time and place of any regular or special
meeting provides for such participation. Participation in a meeting pursuant
to this Section shall constitute presence in person at such meeting.
SECTION 11. Qualification of Directors. No person can be elected a Director
of this Corporation (whether by vote of the stockholders or the Directors) if,
were he or she to be elected a Director, less than a majority of the total
number of Directors would be Outside Directors. If such a person is nominated
for Director, no votes cast for his or her election shall be counted and, for
this purpose, the announcement of the results of any election of Directors,
shall be delayed pending the determination by the Board referred to below. An
Outside Director is a person who is not: (a) an officer or employee of the
Corporation or any relative of an officer or employee; (b) a Related Person
(as that term is defined in Article X of the Corporation's Certificate of
Incorporation) or an officer, director, employee, associate or affiliate of a
Related Person, or a relative of any of the foregoing; or (c) a person having
a direct or indirect material business relationship with the Corporation. The
Board shall be empowered to determine in its sole and absolute discretion
whether a person is or is not an Outside Director within the meaning of the
foregoing.
SECTION 12. Committees. The Board may, by resolution passed by a majority of
the whole Board, designate one or more committees, each committee to consist
of one or more of the Directors of the Corporation. 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 the committee. In the
absence or disqualification of a member of a committee and if the Board has
not designated one or more alternates (or if such a designation has been made,
in the absence or disqualification of such alternate(s)), the member or
members thereof present at any meeting and not disqualified from voting,
whether or not he or they constitute a quorum, may unanimously appoint another
member of the Board to act at the meeting in the place of any such absent or
disqualified member or alternate. Any such committee, to the extent provided
in the resolution of the Board shall have and may exercise all the powers and
authority of the Board in the management of the business and affairs of the
Corporation, and may
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authorize the seal of the Corporation to be affixed to all papers which may
require it; but no such committee shall have the power or authority in
reference to amending the Certificate of Incorporation, adopting an agreement
of merger or consolidation, recommending to the stockholders the sale, lease
or exchange of all or substantially all of the Corporation's property and
assets, recommending to the stockholders a dissolution of the Corporation or a
revocation of a dissolution, or amending the By-laws of the Corporation; and,
unless the resolution expressly so provides, no such committee shall have the
power or authority to declare a dividend or to authorize the issuance of
stock.
SECTION 13. Action Without Meetings. Unless otherwise restricted by
applicable law or by the Certificate of Incorporation or by these By-laws, any
action required or permitted to be taken at any meeting of the Board or of any
committee thereof may be taken without meeting if all members of the Board or
of such committee consent thereto in writing as the case may be, and the
writing or writings are filed with the minutes of proceedings of the Board or
committee. Action shall be taken by the stockholders only at annual or special
meetings of stockholders and stockholders may not act by written consent.
ARTICLE IV
OFFICERS
SECTION 1. Appointment and Salaries. The Board shall appoint the executive
officers who shall include a Chief Executive Officer, one or more Vice
Presidents (one or more of whom may be designated as Executive Vice Presidents
or as Senior Vice Presidents), a Secretary, a Controller, and a Treasurer. The
Board may also appoint a Chairman of the Board and a President and the Board
or the Chief Executive Officer may appoint such other officers (including
Assistant Vice Presidents, Assistant Secretaries, Assistant Treasurers and
Assistant Controllers) as the Board or they may deem necessary or desirable.
The Board shall fix the salaries of all officers appointed by it. Unless
prohibited by applicable law or by the Certificate of Incorporation or by
these By-laws, one person may be elected or appointed to serve in more than
one official capacity.
SECTION 2. Removal and Resignation. Any officer may be removed, either with
or without cause, by the Board or, in the case of an officer not appointed by
the Board by the Chief Executive Officer (or if the Board does not appoint a
Chief Executive Officer, the President). Any officer may resign at any time by
giving notice to the Board or to the Chief Executive Officer (or if the Board
does not appoint a Chief Executive Officer, the President), or to the
Secretary of the Corporation. Any such resignation shall take effect at the
date of receipt of such notice or at any later time specified therein; and,
unless otherwise specified in such notice, the acceptance of the resignation
shall not be necessary to make it effective.
SECTION 3. The Chairman of the Board; Vice Chairman. The Board may, at its
election, appoint a Chairman of the Board. If such an officer be elected, he
shall, if present, preside at all meetings of the stockholders and of the
Board and shall have such other powers and duties as may from time to time be
assigned to him by the Board. The Board may, at its election, also appoint a
Vice Chairman of the Board to preside at all meetings of the stockholders and
of the Board in the absence of the Chairman of the Board and to have such
other powers and duties as may from time to time be assigned to him by the
Board.
SECTION 4. The Chief Executive Officer. Subject to such powers, if any, as
may be given by the Board to the Chairman of the Board, if there is such an
officer, the Chief Executive Officer shall be the chief executive officer of
the Corporation with the powers of general manager, and he shall have
supervision over and may exercise general executive powers concerning all of
the operations and business of the Corporation, with the authority from time
to time to delegate to other officers such executive and other powers and
duties as he may deem advisable. If there be no Chairman of the Board or if he
is absent, the Chief Executive Officer shall preside at all meetings of the
stockholders and of the Board, unless the Board appoints another person who
need not be a stockholder, officer or Director of the Corporation, to preside
at a meeting of stockholders.
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SECTION 5. The Vice President. In the absence of the Chief Executive Officer
(or, if the Board does not appoint a Chief Executive Officer, the President)
or in the event of his inability or refusal to act, the Vice President (or if
there be more than one Vice President, the Vice Presidents in the order of
their rank or, if of equal rank, then in the order designated by the Board or
the Chief Executive Officer (or, if the Board does not appoint a Chief
Executive Officer, the President) or, in the absence of any designation, then
in the order of their appointment) shall perform the duties of the Chief
Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) and when so acting, shall have all the powers of and
be subject to all the restrictions upon the Chief Executive Officer (or, if
the Board does not appoint a Chief Executive Officer, the President). The rank
of Vice Presidents in descending order shall be Executive Vice President,
Senior Vice President, Vice President, and Assistant Vice President. The Vice
President shall perform such other duties and have such other powers as the
Board may from time to time prescribe.
SECTION 6. The Secretary. The Secretary shall attend all meetings of the
Board and all meetings of the stockholders and record all the proceedings of
the meetings of the Corporation and of the Board in a book to be kept for that
purpose and shall perform like duties for the committees when required. He
shall give, or cause to be given, notice of all meetings of stockholders and
special meetings of the Board. He shall have custody of the corporate seal of
the Corporation 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
Corporation and to attest the affixing by his signature. The Secretary shall
perform such other duties and have such other powers as the Board or the Chief
Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) may from time to time prescribe.
SECTION 7. The Treasurer and the Controller. The Treasurer and the
Controller shall each have custody of the corporate funds and securities and
shall keep full and accurate accounts of receipts and disbursements in books
belonging to the Corporation and shall deposit all monies and other valuable
effects in the name and to the credit of the Corporation in such depositories
as may be designated by the Board. Either the Treasurer or the Controller may
disburse the funds of the Corporation as may be ordered by the Board or the
Chief Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President), taking proper vouchers for such disbursements, and
shall render to the Board and Chief Executive Officer (or, if the Board does
not appoint a Chief Executive Officer, the President) an account of
transactions and of the financial condition of the Corporation. The Treasurer
and the Controller each shall perform such other duties and have such other
powers as the Board or the Chief Executive Officer (or, if the Board does not
appoint a Chief Executive Officer, the President) may from time to time
prescribe.
SECTION 8. Assistant Officers. An Assistant Officer shall, in the absence of
the officer to whom he is an assistant or in the event of such officers
inability or refusal to act (or, if there be more than one such assistant
officer, the assistant officers in the order designated by the Board or the
Chief Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) or, in the absence of any designation then in the
order of their appointment), perform the duties and exercise the powers of
such officer. An Assistant Officer shall perform such other duties and have
such other powers as the Board or the Chief Executive Officer (or, if the
Board does not appoint a Chief Executive Officer, the President) may from time
to time prescribe.
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ARTICLE V
SEAL
It shall not be necessary to the validity of any instrument executed by any
authorized officer or officers of the Corporation, that the execution of such
instrument be evidenced by the corporate seal, and all documents, instruments,
contracts, and writings of all kinds signed on behalf of the Corporation by
any authorized officer or officers thereof shall be as effectual and binding
on the Corporation without the corporate seal, as if the execution of the same
had been evidenced by affixing the corporate seal thereto.
ARTICLE VI
FORM OF STOCK CERTIFICATE
Every holder of stock in the Corporation shall be entitled to have a
certificate signed by, or in the name of, the Corporation by the Chief
Executive Officer or a Vice President, and by the Treasurer or an Assistant
Treasurer, or the Secretary or an Assistant Secretary of the Corporation,
certifying the number of shares owned by him in the Corporation. Any or all of
the signatures on the certificate may be a facsimile. In case any officer,
transfer agent, or registrar who has signed or whose facsimile signature has
been placed upon a certificate shall have ceased to be such officer, transfer
agent or registrar before such certificate is issued, it may be issued by the
Corporation with the same effect as if he were such officer, transfer agent or
registrar at the date of the issue.
ARTICLE VII
REPRESENTATION OF SHARES OF OTHER CORPORATIONS
The Chief Executive Officer or any other officer or officers authorized by
the Board or the Chief Executive Officer are each 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 the Corporation. The authority herein granted may be exercised either
by any such officer in person or by any other person authorized so to do by
proxy or power of attorney duly executed by said officer.
ARTICLE VIII
TRANSFERS OF STOCK
Subject to any provisions relating to restrictions on transfer of the
Corporation's shares contained in, or adopted pursuant to, these By-laws or
the Certificate of Incorporation, upon surrender to the Corporation or a
transfer agent of the Corporation of a certificate for shares duly endorsed or
accompanied by proper evidence of succession, assignment, or authority to
transfer, it shall be the duty of the Corporation to issue a new certificate
to the person entitled thereto, cancel the old certificate, and record the
transaction upon its books.
ARTICLE IX
LOST, STOLEN OR DESTROYED CERTIFICATES
The Board may direct a new certificate or certificates to be issued in place
of any certificate or certificates theretofore issued by the Corporation
alleged to have been lost, stolen or destroyed, upon the making of an
affidavit of the 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 give the
Corporation a bond in such sum as it may direct as indemnity against any claim
that may be made against the Corporation with respect to the certificate
alleged to have been lost, stolen or destroyed.
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ARTICLE X
RECORD DATE
The Board may fix in advance a date, which shall not be more than sixty days
nor less than ten days preceding the date of any meeting of stockholders, or
the date for the payment of any dividend, or the date for the allotment of
rights, or the date when any change or conversion or exchange of capital stock
shall go into effect, as a record date for the determination of stockholders
entitled to notice of, and to vote at, any such meeting and any adjournment
thereof, or entitled to receive payment of any such dividend, or to any such
allotment of rights, or to exercise the rights in respect of any such change,
conversion or exchange of capital stock, and in such case such stockholders,
and only such stockholders as shall be stockholders of record on the date so
fixed shall be entitled to such notice of, and to vote at, such meeting and
any adjournment thereof, or to receive payment of such dividend, or to receive
such allotment of rights, or to exercise such rights, as the case may be, not
withstanding any transfer of any stock on the books of the Corporation after
any such record date fixed as aforesaid.
ARTICLE XI
REGISTERED STOCKHOLDERS
The Corporation shall be entitled to treat the holder of record of any share
or shares of stock as the holder in fact thereof and, accordingly, shall not
be bound to recognize any equitable or other claim to or interest in such
share on the part of any other person, whether or not it shall have express or
other notice thereof, save as expressly provided by applicable law.
ARTICLE XII
FISCAL YEAR
The fiscal year of the Corporation shall be fixed by resolution of the
Board.
ARTICLE XIII
NOTICES
SECTION 1. Manner of Notice. Whenever under the provisions of the statutes
or of the Certificate of Incorporation or of these By-laws notice is required
to be given to any Director, committee member, officer or stockholder, it
shall not be construed to mean personal notice, but such notice may be given,
in the case of stockholders, in writing, by mail, by depositing the same in
the post office or letterbox, in a postpaid sealed wrapper, addressed to such
stockholder, at such address as appears on the books of the Corporation, or,
in default of other address, to such stockholder at the General Post Office in
the City of Wilmington, Delaware, and, in the case of Directors, committee
members and officers, by telephone, or by mail or by telegram to the last
business address known to the Secretary of the Corporation, and such notice
shall be deemed to be given at the time when the same shall be thus mailed or
telegraphed or telephoned.
SECTION 2. Waiver of Notice. Whenever any notice is required to be given
under the provisions of the statutes or of the Certificate of Incorporation or
of these By-laws, a waiver thereof in writing, signed by the person or persons
entitled to said notice, whether before or after the time stated therein,
shall be deemed equivalent thereto.
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ARTICLE XIV
AMENDMENTS
The Board shall have the power to make, adopt, alter, amend and repeal from
time to time By-laws of this Corporation, subject to the right of the
stockholders entitled to vote with respect thereto to adopt, alter, amend, and
repeal By-laws made by the Board; provided, however, that By-laws shall not be
adopted, altered, amended or repealed by the stockholders of the Corporation,
except by the vote of the holders of not less than sixty-six and two-thirds
percent (66-2/3%) of the outstanding shares of Common Stock.
ARTICLE XV
INDEMNIFICATION AND INSURANCE
SECTION 1. Right to Indemnification. Each person who was or is a party or is
threatened to be made a party to or is involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she, or a
person of whom he or she is the legal representative, is or was a Director or
officer of the Corporation or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another corporation
or of a partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, whether the basis of such
proceeding is alleged action or inaction in an official capacity or in any
other capacity while serving as a director, officer, employee or agent, shall
be indemnified and held harmless by the Corporation to the fullest extent
permitted by the laws of Delaware, as the same exist or may hereafter be
amended, against all costs, charges, expenses, liabilities and losses
(including attorneys' fees, judgements, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered
by such person in connection therewith, and such indemnification shall
continue as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of his or her heirs, executors and
administrators; provided, however, that, except as provided in Section 2
hereof, the Corporation shall indemnify any such person seeking
indemnification in connection with a proceeding (or part thereof) initiated by
such person only if such proceeding (or part thereof) was authorized by the
Board. The right to indemnification conferred in this Article shall be a
contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final
disposition; provided, however, that, if the Delaware General Corporation Law
requires, the payment of such expenses incurred by a director or officer in
his or her capacity as a director or officer (and not in any other capacity in
which service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding shall be made only upon delivery to
the Corporation of an undertaking, by or on behalf of such director or
officer, to repay all amounts so advanced if it shall ultimately be determined
that such director or officer is not entitled to be indemnified under this
Section or otherwise. The Corporation may, by action of its Board, provide
indemnification to employees and agents of the Corporation with the same scope
and effect as the foregoing indemnification of directors and officers.
SECTION 2. Right of Claimant to Bring Suit. If a claim under Section 1 of
this Article is not paid in full by the Corporation within thirty days after a
written claim has been received by the Corporation, the claimant may at any
time thereafter bring suit against the Corporation to recover the unpaid
amount of the claim and, if successful in whole or in part, the claimant shall
be entitled to be paid also the expense of prosecuting such claim. It shall be
a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in defending any proceeding in advance of its final
disposition where the required undertaking, if any is required, has been
tendered to the Corporation) that the claimant has failed to meet a standard
of conduct which makes it permissible under Delaware law for the Corporation
to indemnify the claimant for the amount claimed. Neither the failure of the
Corporation (including its Board, independent legal counsel, or its
stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is permissible in the
circumstances because he or she has met such standard of conduct, nor an
actual determination by the Corporation (including its Board, independent
legal counsel, or its stockholders) that the claimant has not
11
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met such standard of conduct, shall be a defense to the action or create a
presumption that the claimant has failed to meet such standard of conduct.
SECTION 3. Non-Exclusivity of Rights. The right to indemnification and the
payment of expenses incurred in defending a proceeding in advance of its final
disposition conferred in this Article shall not be exclusive of any other
right which any person may have or hereafter acquire under any statute,
provision of the Certificate of Incorporation, bylaw, agreement, vote of
stockholders or disinterested directors or otherwise.
SECTION 4. Insurance. The Corporation may maintain insurance, at its
expense, to protect itself and any director, officer, employee or agent of the
Corporation or another corporation, partnership, joint venture, trust or other
enterprise against any expense, liability, loss, whether or not the
Corporation would have the power to indemnify such person against such
expense, liability or loss under Delaware law.
SECTION 5. Expenses as a Witness. To the extent that any director, officer,
employee or agent of the Corporation is by reason of such position, or a
position with another entity at the request of the Corporation, a witness in
any action, suit or proceeding, he shall be indemnified against all costs and
expenses actually and reasonably incurred by him or her or on his or her
behalf in connection therewith.
SECTION 6. Indemnity Agreements. The Corporation may enter into agreements
with any director, officer, employee or agent of the Corporation providing for
indemnification to the full extent permitted by Delaware law.
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EXHIBIT 99.3
RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
AS AMENDED EFFECTIVE MAY 30, 1997
<PAGE>
RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
AS AMENDED EFFECTIVE MAY 30, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
ARTICLE I Offices............................................................ 1
ARTICLE II Meetings of Stockholders........................................... 1
ARTICLE III Directors.......................................................... 4
ARTICLE IV Officers........................................................... 6
ARTICLE V Seal............................................................... 8
ARTICLE VI Form of Stock Certificate.......................................... 8
ARTICLE VII Representation of Shares of Other Corporations..................... 8
ARTICLE VIII Transfers of Stock................................................. 8
ARTICLE IX Lost, Stolen or Destroyed Certificates............................. 8
ARTICLE X Record Date........................................................ 9
ARTICLE XI Registered Stockholders............................................ 9
ARTICLE XII Fiscal Year........................................................ 9
ARTICLE XIII Notices............................................................ 9
ARTICLE XIV Amendments......................................................... 10
ARTICLE XV Indemnification and Insurance...................................... 10
</TABLE>
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RESTATED BY-LAWS
OF
PS GROUP HOLDINGS, INC.
A DELAWARE CORPORATION
(HEREINAFTER CALLED THE "CORPORATION")
ARTICLE I
OFFICES
SECTION 1. Registered Office. The registered office of this Corporation
shall be in the City of Wilmington, County of New Castle, State of Delaware,
and the name of the resident agent in charge thereof is The Corporation Trust
Company.
SECTION 2. Other Offices. The Corporation may also have offices at such
other places, either within or without the State of Delaware, as the Board of
Directors (the "Board") may from time to time designate or the business of the
Corporation may require.
ARTICLE II
MEETINGS OF STOCKHOLDERS
SECTION 1. Place of Meetings. Meetings of stockholders shall be held at such
time and place, within or without the State of Delaware, as shall be stated in
the notice of the meeting or in a duly executed waiver of notice thereof.
SECTION 2. Annual Meetings. Annual meetings of stockholders shall be held on
the fourth Tuesday of May, if not a legal holiday, and if a legal holiday,
then on the next secular day following, at 10:00 a.m., or at such other date
and time set by the Board and stated in the notice of the meeting, at which
the stockholders shall elect a Board, and transact such other business as may
properly be brought before the meeting.
Nominations of persons for election to the Board and the proposal of
business to be transacted by the stockholders may be made at an annual meeting
of stockholders (a) pursuant to the Corporation's notice with respect to such
meeting, (b) by or at the direction of the Board or (c) by any stockholder of
record of the Corporation who was a stockholder of record at the time of the
giving of the notice provided for in the following paragraph, who is entitled
to vote at the meeting and who has complied with the notice procedures set
forth in this section.
For nominations or other business to be properly brought before an annual
meeting by a stockholder pursuant to clause (c) of the foregoing paragraph,
the stockholder must have given timely notice thereof in writing to the
Secretary of the Corporation, such business must be a proper matter for
stockholder action under the General Corporation Law of the State of Delaware
and, if the stockholder, or the beneficial owner on whose behalf any such
proposal or nomination is made, solicits or participates in the solicitation
of proxies in support of such proposal or nominees, the stockholder must have
timely indicated its, or such beneficial owner's, intention to do so as
provided in subclause (c) (iii) of this paragraph. To be timely, a
stockholder's notice shall be delivered to the Secretary at the principal
executive offices of the Corporation not less than 90 days prior to the first
anniversary of the preceding year's annual meeting of stockholders; provided,
however, that if the date of the annual meeting is advanced more than 30 days
prior to, or delayed by more than 60 days after, such anniversary date, notice
by the stockholder to be timely must be so delivered not later than the close
of business on the later of the 90th day prior to such annual meeting or the
10th day following the day on which public announcement of the date of such
meeting is first made. Such stockholder's notice shall set forth: (i) (a) as
to
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each person whom the stockholder proposes to nominate for election or
reelection as a director, all information relating to such person as would be
required to be disclosed in solicitations of proxies for the election of such
nominees as directors pursuant to Regulation 14A under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), and such person's written
consent to serving as a director if elected; (b) as to any other business that
the stockholder proposes to bring before the meeting, a brief description of
such business, the reasons for conducting such business at the meeting and any
material interest in such business of such stockholder and the beneficial
owner, if any, on whose behalf the proposal is made; and (c) as to the
stockholder giving the notice and the beneficial owner, if any, on whose
behalf the nomination or proposal is made, (i) the name and address of such
stockholder, as they appear on the Corporation's books, and of such beneficial
owner, (ii) the class and number of shares of the Corporation which are owned
beneficially and of record by such stockholder and such beneficial owner, and
(iii) whether either such stockholder or beneficial owner intends to solicit
or participate in the solicitation of proxies in favor of such proposal or
nominee(s).
Notwithstanding anything in the second sentence of the second paragraph of
this Section 2 to the contrary, in the event that the number of directors to
be elected to the Board is increased and there is no public announcement
naming all of the nominees for director or specifying the size of the
increased Board made by the Corporation at least 100 days prior to the first
anniversary of the preceding year's annual meeting, a stockholder's notice
required by this By-law shall also be considered timely, but only with respect
to nominees for any new positions created by such increase, if it shall be
delivered to the Secretary at the principal executive offices of the
Corporation not later than the close of business on the 10th day following the
day on which such public announcement is first made by the Corporation.
Only persons nominated in accordance with the procedures set forth in this
section shall be eligible to serve as directors and only such business shall
be conducted at an annual meeting of stockholders as shall have been brought
before the meeting in accordance with the procedures set forth in this
section. The chair of the meeting shall have the power and the duty to
determine whether a nomination or any business proposed to be brought before
the meeting has been made in accordance with the procedures set forth in these
By-laws and, if any proposed nomination or business is not in compliance with
these By-laws to declare that such defective proposed business or nomination
shall not be presented for stockholder action at the meeting and shall be
disregarded.
For purposes of this Section 2, "public announcement" shall mean disclosure
in a press release reported by the Dow Jones News Service, Associated Press or
a comparable national news service or in a document publicly filed by the
Corporation with the Securities and Exchange Commission pursuant to Section
13, 14 or 15(d) of the Exchange Act.
Notwithstanding the foregoing provisions of this By-law, a stockholder shall
also comply with all applicable requirements of the Exchange Act and the rules
and regulations thereunder with respect to matters set forth in this By-law.
Nothing in this Section 2 shall be deemed to affect any rights of stockholders
to request inclusion of proposals in the Corporation's proxy statement
pursuant to Rule 14a-8 under the Exchange Act.
SECTION 3. Special Meetings. Special meetings of stockholders, for any
purpose or purposes, unless otherwise prescribed by applicable law or by the
Certificate of Incorporation, may be called by the Chairman of the Board (or,
if the Board does not appoint a Chairman of the Board, the Chief Executive
Officer) and shall be called by the Chairman of the Board (or, if the Board
does not appoint a Chairman of the Board, the Chief Executive Officer) or
Secretary at the request in writing of a majority of the Board, or if, and
only if, the special meeting is to be called for the purpose of removing a
member of the Board (a "Director") for cause, at the request in writing of
stockholders owning a majority in amount of the entire capital stock of the
Corporation issued and outstanding and entitled to vote. Such request shall
state the purpose or purposes of the proposed meeting and the business
transacted at any such special meeting of stockholders shall be limited to the
purposes set forth in the notice. Stockholders may not request the call of a
special meeting for any purpose other than as provided herein.
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Only such business shall be conducted at a special meeting of stockholders
as shall have been brought before the meeting pursuant to the Corporation's
notice of meeting. Nominations of persons for election to the Board may be
made at a special meeting of stockholders at which directors are to be
selected pursuant to the Corporation's notice of meeting (a) by or at the
direction of the Board or (b) by any stockholder of record of the Corporation
who is a stockholder of record at the time of giving of notice provided for in
this paragraph, who shall be entitled to vote at the meeting and who complies
with the notice procedures set forth in this Section 3. Nominations by
stockholders of persons for election to the Board may be made at such a
special meeting of stockholders if the notice that such stockholder would be
required to give, in the case of a nomination proposed to be made at an annual
meeting of stockholders, by the third paragraph of Article II, Section 2 of
these By-laws shall be delivered to the Secretary at the principal executive
offices of the Corporation not later than the close of business on the later
of the 90th day prior to such special meeting or the 10th day following the
day on which public announcement is first made of the date of the special
meeting and of the nominee(s) proposed by the Board to be elected at such
meeting.
SECTION 4. Stockholder Lists. The officer who has charge of the stock ledger
of the Corporation shall prepare and make, at least ten days before every
meeting of stockholders, a complete list of stockholders entitled to vote at
the meeting, arranged in alphabetical order, and showing the address of each
stockholder and the number of shares registered in the name of each
stockholder.
Such list shall be open to the examination of any stockholder, for any
purpose germane to the meeting, during ordinary business hours, for a period
of at least ten 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 at the place of the meeting, and the list shall also be
available at the meeting during the whole time thereof, and may be inspected
by any stockholder who is present.
SECTION 5. Notice of Meetings. Written notice of each meeting of
stockholders, whether annual or special, stating the place, date and hour of
the meeting shall be given to each stockholder entitled to vote at such
meeting not less than ten nor more than sixty days before the date of the
meeting.
SECTION 6. Quorum and Adjournment. The holders of a majority of the stock
issued and outstanding and entitled to vote thereat, present in person or
represented by proxy, shall constitute a quorum for holding all meetings of
stockholders, except as otherwise provided by applicable law or by the
Certificate of Incorporation. If it shall appear that such quorum is not
present or represented at any meeting of stockholders, the Chairman of the
meeting shall have 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 such adjourned 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 noticed. The Chairman of the meeting
may determine that a quorum is present based upon any reasonable evidence of
the presence in person or by proxy of stockholders holding a majority of the
outstanding votes, including without limitation, evidence from any record of
stockholders who have signed a register indicating their presence at the
meeting.
SECTION 7. Voting. In all matters, the vote of the holders of a majority of
the capital stock having voting power 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 applicable law or of the
Certificate of Incorporation, a different vote is required in which case such
express provision shall govern and control the decision of such question.
SECTION 8. Proxies. Each stockholder entitled to vote at a meeting of
stockholders may authorize in writing or by any other means as is provided in
Section 212 of the Delaware General Corporation Law another person or persons
to act for him by proxy, but no proxy shall be voted or acted upon after
eleven months from its date, unless the person executing the proxy specifies
therein the period of time for which it is to continue in force.
SECTION 9. Judges of Election. The Board may appoint a Judge or Judges of
Election for any meeting of stockholders. Such Judges shall decide upon the
qualification of the voters and report the number of shares
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represented at the meeting and entitled to vote, shall conduct the voting and
accept the votes, and when the voting is completed shall ascertain and report
the number of shares voted respectively for and against each position upon
which a vote is taken by ballot. The Judges need not be stockholders, and any
officer of the Corporation may be a Judge on any position other than a vote
for or against a proposal in which he shall have a material interest.
ARTICLE III
DIRECTORS
SECTION 1. Powers. The Board shall have the power to manage or direct the
management of the property, business and affairs of the Corporation, and
except as expressly limited by law, to exercise all of its corporate powers.
The Board may establish procedures and rules, or may authorize the Chairman of
any meeting of stockholders to establish procedures and rules, for the fair
and orderly conduct of any stockholders meeting, including without limitation,
registration of the stockholders attending the meeting, adoption of an agenda,
establishing the order of business at the meeting, recessing and adjourning
the meeting for the purposes of tabulating any votes and receiving the result
thereof, the timing of the opening and closing of the polls, and the physical
layout of the facilities for the meeting.
SECTION 2. Number. The Board shall consist of one or more members in such
number as shall be determined from time to time by resolution of the Board.
Until otherwise determined by such resolution, the Board shall consist of five
members. Directors need not be stockholders, and each Director shall serve
until his successor is elected and qualified or until his death, retirement,
resignation or removal.
SECTION 3. Nominations. Nominations of candidates for election as Directors
of the Corporation may be made (a) by the Board or (b) by any stockholder who
complies with the provisions of Article II, Section 2 of these By-Laws or
Article II, Section 3 of these By-Laws, as applicable.
SECTION 4. Vacancies and Newly Created Directorships. Subject to any rights
of holders of any Series of Preferred Stock of the Corporation, each director
shall serve until the end of the term to which he was elected and until his
successor is elected and qualified or until his death, retirement, resignation
or removal, and any newly-created directorship or vacancy, whether arising
through death, resignation or removal of director or otherwise, shall, unless
otherwise provided by law or by act of the Board of Directors, be filled only
by a majority vote of the remaining directors, or by the sole remaining
director if only one such director remains.
SECTION 5. Initial Meeting. The Board shall meet as soon as practicable
after the annual election of Directors and notice of such first meeting shall
not be required.
SECTION 6. Regular Meeting. Regular meetings of the Board shall be held
without call or notice at such time and place as shall from time to time be
fixed by standing resolution of the Board.
SECTION 7. Special Meetings. Special meetings of the Board may be called at
any time, and for any purpose permitted by law, by the Chairman of the Board,
the Chief Executive Officer or by the Secretary on the request (whether
written or oral) of any two members of the Board, which meetings shall be held
at the time and place designated by the person or persons calling the meeting.
Notice of the time and place of any such meetings shall be given to the
Directors by the Secretary, or in case of his absence, refusal or inability to
act, by any other officer. Any such notice may be given by mail, by private
express courier service, by telegraph, by telecopier, by telephone, by
personal service, or by any thereof as to different Directors.
Notice to a Director by mail or by private express courier service shall be
deemed to have been given if addressed to such Director at the address shown
upon the records of the Corporation for such Director (or as may have been
given to the Corporation by such Director for purposes of notice) and
deposited in a United States Post Office or delivered to such private express
courier service, as the case may be, at least forty-eight hours
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before the time of the meeting. Any other written notice shall be deemed to
have been given at the time it is personally delivered to the recipient or is
delivered to a common carrier for transmission, or actually transmitted to the
recipient by the person giving the notice by electronic means. Oral notice
shall be deemed to have been given at the time it is communicated, in person
or by telephone or wireless, to the recipient or to a person at the office or
home of the recipient who may reasonably be expected to communicate the notice
to the recipient.
A notice need not specify the purpose of any special meeting of the Board.
Whenever any Director has been absent from any meeting of the Board for which
notice has not been dispensed with, an entry in the minutes of such meeting to
the effect that notice has been duly given shall be conclusive and
incontrovertible evidence that due notice of such meeting was given to such
Director.
SECTION 8. Quorum. At all meetings of the Board a majority of the whole
Board shall be necessary and sufficient to constitute a quorum for the
transaction of business, 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 applicable law or by the
Certificate of Incorporation or by these By-laws. Any meeting of the Board may
be adjourned to meet again at a stated day and hour. Even though no quorum is
present, as required in this Section, a majority of the Directors present at
any meeting of the Board, either regular or special, may adjourn from time to
time until a quorum be had, but no later than the time fixed for the next
regular meeting of the Board. Notice of any adjourned meeting need not be
given.
SECTION 9. Fees and Compensation. Each Director and each member of a
committee of the Board shall receive such fees and reimbursement of expenses
incurred on behalf of the Corporation or in attending meetings as the Board
may from time to time determine.
SECTION 10. Meetings by Telephonic Communication. Members of the Board or
any committee thereof may participate in a regular or special meeting of such
Board or committee by means of conference telephone or similar communications
equipment by means of which all persons participating in the meeting can hear
each other, if the standing resolutions fixing the time and place of a regular
meeting or if the notice of the time and place of any regular or special
meeting provides for such participation. Participation in a meeting pursuant
to this Section shall constitute presence in person at such meeting.
SECTION 11. Qualification of Directors. No person can be elected a Director
of this Corporation (whether by vote of the stockholders or the Directors) if,
were he or she to be elected a Director, less than a majority of the total
number of Directors would be Outside Directors. If such a person is nominated
for Director, no votes cast for his or her election shall be counted and, for
this purpose, the announcement of the results of any election of Directors,
shall be delayed pending the determination by the Board referred to below. An
Outside Director is a person who is not: (a) an officer or employee of the
Corporation or any relative of an officer or employee; (b) a Related Person
(as that term is defined in Article X of the Corporation's Certificate of
Incorporation) or an officer, director, employee, associate or affiliate of a
Related Person, or a relative of any of the foregoing; or (c) a person having
a direct or indirect material business relationship with the Corporation. The
Board shall be empowered to determine in its sole and absolute discretion
whether a person is or is not an Outside Director within the meaning of the
foregoing.
SECTION 12. Committees. The Board may, by resolution passed by a majority of
the whole Board, designate one or more committees, each committee to consist
of one or more of the Directors of the Corporation. 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 the committee. In the
absence or disqualification of a member of a committee and if the Board has
not designated one or more alternates (or if such a designation has been made,
in the absence or disqualification of such alternate(s)), the member or
members thereof present at any meeting and not disqualified from voting,
whether or not he or they constitute a quorum, may unanimously appoint another
member of the Board to act at the meeting in the place of any such absent or
disqualified member or alternate. Any such committee, to the extent provided
in the resolution of the Board shall have and may exercise all the powers and
authority of the Board in the management of the business and affairs of the
Corporation, and may
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authorize the seal of the Corporation to be affixed to all papers which may
require it; but no such committee shall have the power or authority in
reference to amending the Certificate of Incorporation, adopting an agreement
of merger or consolidation, recommending to the stockholders the sale, lease
or exchange of all or substantially all of the Corporation's property and
assets, recommending to the stockholders a dissolution of the Corporation or a
revocation of a dissolution, or amending the By-laws of the Corporation; and,
unless the resolution expressly so provides, no such committee shall have the
power or authority to declare a dividend or to authorize the issuance of
stock.
SECTION 13. Action Without Meetings. Unless otherwise restricted by
applicable law or by the Certificate of Incorporation or by these By-laws, any
action required or permitted to be taken at any meeting of the Board or of any
committee thereof may be taken without meeting if all members of the Board or
of such committee consent thereto in writing as the case may be, and the
writing or writings are filed with the minutes of proceedings of the Board or
committee. Action shall be taken by the stockholders only at annual or special
meetings of stockholders and stockholders may not act by written consent.
ARTICLE IV
OFFICERS
SECTION 1. Appointment and Salaries. The Board shall appoint the executive
officers who shall include a Chief Executive Officer, one or more Vice
Presidents (one or more of whom may be designated as Executive Vice Presidents
or as Senior Vice Presidents), a Secretary, a Controller, and a Treasurer. The
Board may also appoint a Chairman of the Board and a President and the Board
or the Chief Executive Officer may appoint such other officers (including
Assistant Vice Presidents, Assistant Secretaries, Assistant Treasurers and
Assistant Controllers) as the Board or they may deem necessary or desirable.
The Board shall fix the salaries of all officers appointed by it. Unless
prohibited by applicable law or by the Certificate of Incorporation or by
these By-laws, one person may be elected or appointed to serve in more than
one official capacity.
SECTION 2. Removal and Resignation. Any officer may be removed, either with
or without cause, by the Board or, in the case of an officer not appointed by
the Board by the Chief Executive Officer (or if the Board does not appoint a
Chief Executive Officer, the President). Any officer may resign at any time by
giving notice to the Board or to the Chief Executive Officer (or if the Board
does not appoint a Chief Executive Officer, the President), or to the
Secretary of the Corporation. Any such resignation shall take effect at the
date of receipt of such notice or at any later time specified therein; and,
unless otherwise specified in such notice, the acceptance of the resignation
shall not be necessary to make it effective.
SECTION 3. The Chairman of the Board; Vice Chairman. The Board may, at its
election, appoint a Chairman of the Board. If such an officer be elected, he
shall, if present, preside at all meetings of the stockholders and of the
Board and shall have such other powers and duties as may from time to time be
assigned to him by the Board. The Board may, at its election, also appoint a
Vice Chairman of the Board to preside at all meetings of the stockholders and
of the Board in the absence of the Chairman of the Board and to have such
other powers and duties as may from time to time be assigned to him by the
Board.
SECTION 4. The Chief Executive Officer. Subject to such powers, if any, as
may be given by the Board to the Chairman of the Board, if there is such an
officer, the Chief Executive Officer shall be the chief executive officer of
the Corporation with the powers of general manager, and he shall have
supervision over and may exercise general executive powers concerning all of
the operations and business of the Corporation, with the authority from time
to time to delegate to other officers such executive and other powers and
duties as he may deem advisable. If there be no Chairman of the Board or if he
is absent, the Chief Executive Officer shall preside at all meetings of the
stockholders and of the Board, unless the Board appoints another person who
need not be a stockholder, officer or Director of the Corporation, to preside
at a meeting of stockholders.
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SECTION 5. The Vice President. In the absence of the Chief Executive Officer
(or, if the Board does not appoint a Chief Executive Officer, the President)
or in the event of his inability or refusal to act, the Vice President (or if
there be more than one Vice President, the Vice Presidents in the order of
their rank or, if of equal rank, then in the order designated by the Board or
the Chief Executive Officer (or, if the Board does not appoint a Chief
Executive Officer, the President) or, in the absence of any designation, then
in the order of their appointment) shall perform the duties of the Chief
Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) and when so acting, shall have all the powers of and
be subject to all the restrictions upon the Chief Executive Officer (or, if
the Board does not appoint a Chief Executive Officer, the President). The rank
of Vice Presidents in descending order shall be Executive Vice President,
Senior Vice President, Vice President, and Assistant Vice President. The Vice
President shall perform such other duties and have such other powers as the
Board may from time to time prescribe.
SECTION 6. The Secretary. The Secretary shall attend all meetings of the
Board and all meetings of the stockholders and record all the proceedings of
the meetings of the Corporation and of the Board in a book to be kept for that
purpose and shall perform like duties for the committees when required. He
shall give, or cause to be given, notice of all meetings of stockholders and
special meetings of the Board. He shall have custody of the corporate seal of
the Corporation 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
Corporation and to attest the affixing by his signature. The Secretary shall
perform such other duties and have such other powers as the Board or the Chief
Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) may from time to time prescribe.
SECTION 7. The Treasurer and the Controller. The Treasurer and the
Controller shall each have custody of the corporate funds and securities and
shall keep full and accurate accounts of receipts and disbursements in books
belonging to the Corporation and shall deposit all monies and other valuable
effects in the name and to the credit of the Corporation in such depositories
as may be designated by the Board. Either the Treasurer or the Controller may
disburse the funds of the Corporation as may be ordered by the Board or the
Chief Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President), taking proper vouchers for such disbursements, and
shall render to the Board and Chief Executive Officer (or, if the Board does
not appoint a Chief Executive Officer, the President) an account of
transactions and of the financial condition of the Corporation. The Treasurer
and the Controller each shall perform such other duties and have such other
powers as the Board or the Chief Executive Officer (or, if the Board does not
appoint a Chief Executive Officer, the President) may from time to time
prescribe.
SECTION 8. Assistant Officers. An Assistant Officer shall, in the absence of
the officer to whom he is an assistant or in the event of such officers
inability or refusal to act (or, if there be more than one such assistant
officer, the assistant officers in the order designated by the Board or the
Chief Executive Officer (or, if the Board does not appoint a Chief Executive
Officer, the President) or, in the absence of any designation then in the
order of their appointment), perform the duties and exercise the powers of
such officer. An Assistant Officer shall perform such other duties and have
such other powers as the Board or the Chief Executive Officer (or, if the
Board does not appoint a Chief Executive Officer, the President) may from time
to time prescribe.
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ARTICLE V
SEAL
It shall not be necessary to the validity of any instrument executed by any
authorized officer or officers of the Corporation, that the execution of such
instrument be evidenced by the corporate seal, and all documents, instruments,
contracts, and writings of all kinds signed on behalf of the Corporation by
any authorized officer or officers thereof shall be as effectual and binding
on the Corporation without the corporate seal, as if the execution of the same
had been evidenced by affixing the corporate seal thereto.
ARTICLE VI
FORM OF STOCK CERTIFICATE
Every holder of stock in the Corporation shall be entitled to have a
certificate signed by, or in the name of, the Corporation by the Chief
Executive Officer or a Vice President, and by the Treasurer or an Assistant
Treasurer, or the Secretary or an Assistant Secretary of the Corporation,
certifying the number of shares owned by him in the Corporation. Any or all of
the signatures on the certificate may be a facsimile. In case any officer,
transfer agent, or registrar who has signed or whose facsimile signature has
been placed upon a certificate shall have ceased to be such officer, transfer
agent or registrar before such certificate is issued, it may be issued by the
Corporation with the same effect as if he were such officer, transfer agent or
registrar at the date of the issue.
ARTICLE VII
REPRESENTATION OF SHARES OF OTHER CORPORATIONS
The Chief Executive Officer or any other officer or officers authorized by
the Board or the Chief Executive Officer are each 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 the Corporation. The authority herein granted may be exercised either
by any such officer in person or by any other person authorized so to do by
proxy or power of attorney duly executed by said officer.
ARTICLE VIII
TRANSFERS OF STOCK
Subject to any provisions relating to restrictions on transfer of the
Corporation's shares contained in, or adopted pursuant to, these By-laws or
the Certificate of Incorporation, upon surrender to the Corporation or a
transfer agent of the Corporation of a certificate for shares duly endorsed or
accompanied by proper evidence of succession, assignment, or authority to
transfer, it shall be the duty of the Corporation to issue a new certificate
to the person entitled thereto, cancel the old certificate, and record the
transaction upon its books.
ARTICLE IX
LOST, STOLEN OR DESTROYED CERTIFICATES
The Board may direct a new certificate or certificates to be issued in place
of any certificate or certificates theretofore issued by the Corporation
alleged to have been lost, stolen or destroyed, upon the making of an
affidavit of the 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 give the
Corporation a bond in such sum as it may direct as indemnity against any claim
that may be made against the Corporation with respect to the certificate
alleged to have been lost, stolen or destroyed.
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ARTICLE X
RECORD DATE
The Board may fix in advance a date, which shall not be more than sixty days
nor less than ten days preceding the date of any meeting of stockholders, or
the date for the payment of any dividend, or the date for the allotment of
rights, or the date when any change or conversion or exchange of capital stock
shall go into effect, as a record date for the determination of stockholders
entitled to notice of, and to vote at, any such meeting and any adjournment
thereof, or entitled to receive payment of any such dividend, or to any such
allotment of rights, or to exercise the rights in respect of any such change,
conversion or exchange of capital stock, and in such case such stockholders,
and only such stockholders as shall be stockholders of record on the date so
fixed shall be entitled to such notice of, and to vote at, such meeting and
any adjournment thereof, or to receive payment of such dividend, or to receive
such allotment of rights, or to exercise such rights, as the case may be, not
withstanding any transfer of any stock on the books of the Corporation after
any such record date fixed as aforesaid.
ARTICLE XI
REGISTERED STOCKHOLDERS
The Corporation shall be entitled to treat the holder of record of any share
or shares of stock as the holder in fact thereof and, accordingly, shall not
be bound to recognize any equitable or other claim to or interest in such
share on the part of any other person, whether or not it shall have express or
other notice thereof, save as expressly provided by applicable law.
ARTICLE XII
FISCAL YEAR
The fiscal year of the Corporation shall be fixed by resolution of the
Board.
ARTICLE XIII
NOTICES
SECTION 1. Manner of Notice. Whenever under the provisions of the statutes
or of the Certificate of Incorporation or of these By-laws notice is required
to be given to any Director, committee member, officer or stockholder, it
shall not be construed to mean personal notice, but such notice may be given,
in the case of stockholders, in writing, by mail, by depositing the same in
the post office or letterbox, in a postpaid sealed wrapper, addressed to such
stockholder, at such address as appears on the books of the Corporation, or,
in default of other address, to such stockholder at the General Post Office in
the City of Wilmington, Delaware, and, in the case of Directors, committee
members and officers, by telephone, or by mail or by telegram to the last
business address known to the Secretary of the Corporation, and such notice
shall be deemed to be given at the time when the same shall be thus mailed or
telegraphed or telephoned.
SECTION 2. Waiver of Notice. Whenever any notice is required to be given
under the provisions of the statutes or of the Certificate of Incorporation or
of these By-laws, a waiver thereof in writing, signed by the person or persons
entitled to said notice, whether before or after the time stated therein,
shall be deemed equivalent thereto.
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ARTICLE XIV
AMENDMENTS
The Board shall have the power to make, adopt, alter, amend and repeal from
time to time By-laws of this Corporation, subject to the right of the
stockholders entitled to vote with respect thereto to adopt, alter, amend, and
repeal By-laws made by the Board; provided, however, that By-laws shall not be
adopted, altered, amended or repealed by the stockholders of the Corporation,
except by the vote of the holders of not less than sixty-six and two-thirds
percent (66-2/3%) of the outstanding shares of Common Stock.
ARTICLE XV
INDEMNIFICATION AND INSURANCE
SECTION 1. Right to Indemnification. Each person who was or is a party or is
threatened to be made a party to or is involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he or she, or a
person of whom he or she is the legal representative, is or was a Director or
officer of the Corporation or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another corporation
or of a partnership, joint venture, trust or other enterprise, including
service with respect to employee benefit plans, whether the basis of such
proceeding is alleged action or inaction in an official capacity or in any
other capacity while serving as a director, officer, employee or agent, shall
be indemnified and held harmless by the Corporation to the fullest extent
permitted by the laws of Delaware, as the same exist or may hereafter be
amended, against all costs, charges, expenses, liabilities and losses
(including attorneys' fees, judgements, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered
by such person in connection therewith, and such indemnification shall
continue as to a person who has ceased to be a director, officer, employee or
agent and shall inure to the benefit of his or her heirs, executors and
administrators; provided, however, that, except as provided in Section 2
hereof, the Corporation shall indemnify any such person seeking
indemnification in connection with a proceeding (or part thereof) initiated by
such person only if such proceeding (or part thereof) was authorized by the
Board. The right to indemnification conferred in this Article shall be a
contract right and shall include the right to be paid by the Corporation the
expenses incurred in defending any such proceeding in advance of its final
disposition; provided, however, that, if the Delaware General Corporation Law
requires, the payment of such expenses incurred by a director or officer in
his or her capacity as a director or officer (and not in any other capacity in
which service was or is rendered by such person while a director or officer,
including, without limitation, service to an employee benefit plan) in advance
of the final disposition of a proceeding shall be made only upon delivery to
the Corporation of an undertaking, by or on behalf of such director or
officer, to repay all amounts so advanced if it shall ultimately be determined
that such director or officer is not entitled to be indemnified under this
Section or otherwise. The Corporation may, by action of its Board, provide
indemnification to employees and agents of the Corporation with the same scope
and effect as the foregoing indemnification of directors and officers.
SECTION 2. Right of Claimant to Bring Suit. If a claim under Section 1 of
this Article is not paid in full by the Corporation within thirty days after a
written claim has been received by the Corporation, the claimant may at any
time thereafter bring suit against the Corporation to recover the unpaid
amount of the claim and, if successful in whole or in part, the claimant shall
be entitled to be paid also the expense of prosecuting such claim. It shall be
a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in defending any proceeding in advance of its final
disposition where the required undertaking, if any is required, has been
tendered to the Corporation) that the claimant has failed to meet a standard
of conduct which makes it permissible under Delaware law for the Corporation
to indemnify the claimant for the amount claimed. Neither the failure of the
Corporation (including its Board, independent legal counsel, or its
stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is permissible in the
circumstances because he or she has met such standard of conduct, nor an
actual determination by the Corporation (including its Board, independent
legal counsel, or its stockholders) that the claimant has not
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met such standard of conduct, shall be a defense to the action or create a
presumption that the claimant has failed to meet such standard of conduct.
SECTION 3. Non-Exclusivity of Rights. The right to indemnification and the
payment of expenses incurred in defending a proceeding in advance of its final
disposition conferred in this Article shall not be exclusive of any other
right which any person may have or hereafter acquire under any statute,
provision of the Certificate of Incorporation, bylaw, agreement, vote of
stockholders or disinterested directors or otherwise.
SECTION 4. Insurance. The Corporation may maintain insurance, at its
expense, to protect itself and any director, officer, employee or agent of the
Corporation or another corporation, partnership, joint venture, trust or other
enterprise against any expense, liability, loss, whether or not the
Corporation would have the power to indemnify such person against such
expense, liability or loss under Delaware law.
SECTION 5. Expenses as a Witness. To the extent that any director, officer,
employee or agent of the Corporation is by reason of such position, or a
position with another entity at the request of the Corporation, a witness in
any action, suit or proceeding, he shall be indemnified against all costs and
expenses actually and reasonably incurred by him or her or on his or her
behalf in connection therewith.
SECTION 6. Indemnity Agreements. The Corporation may enter into agreements
with any director, officer, employee or agent of the Corporation providing for
indemnification to the full extent permitted by Delaware law.
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EXHIBIT 99.4
[ON PS GROUP HOLDINGS, INC. NEWS RELEASE LETTERHEAD]
STOCKHOLDERS OF PS GROUP HOLDINGS APPROVE
REPEAL OF CLASSIFIED BOARD, EFFECTIVE 1998
SAN DIEGO, CA, May 30, 1997 -- PS Group Holdings, Inc. (PSG) announced that
its stockholders approved the repeal of the Company's classified Board at
today's Annual Meeting. Accordingly, the entire Board will be required to stand
for re-election annually starting with the 1998 Annual Meeting.
The Company also stated that the three nominees who stood for re-election
to terms expiring in the year 2000 were re-elected at today's Annual Meeting.
The three nominees (J.P. Guerin, Christopher H.B. Mills and Joseph S. Pirinea)
were already serving as members of the Board. The re-elected directors, as well
as all the Company's other directors, have committed to resign immediately
before the vote on the election of directors is taken at the 1998 Annual Meeting
so that all directors nominated by the Board will stand for re-election in 1998
even if their classified terms were otherwise scheduled to expire in a later
year.
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CONTACT: LAWRENCE A. GUSKE, PS GROUP HOLDINGS, INC., (619)642-2982
