BY-LAWS OF CPLPROPERTY O'VNERS ASSOCIATION, INC.
426298.1 w(10'351001-B6 01114104 TABLE OFCONTENTS Article I. Name, Membership. Applicability, andDefinitions 1 Section 1.Name 1 Section 2.Menlbership 1 Section 3.Definitions 1 Article II. Association: Meetings, Quorum, Voting, Proxies 1 Section 1.PlaceofMeetings 1 Section 2.FirstMeeting andAnnual Meetings 1 Section 3.Special Meetings 1 Section 4.Notice ofMeetings 1 Section 5.Waiver ofNotice 2 Section 6.Adiou111ment ofMeetings 2 Section 7.Voting 2 Section 8.Proxies 2 Section 9.Quorunl 2 Section 10.Voting byMail 2 Article Ill. BoardofDirectors: Number, Powers, Meetings 3 Section 1.Goveming Body;Composition 3 Section 2.Directors Appointed byDeclarant 3 Section 3.Number ofDirectors 3 Section 4.Nomination ofDirectors 3 Section 5.Election andTelmofOffice 3 Section 6.Removal ofDirectors .4 Section 7.\lacancies 4 Section 8.Organization Meetings 5 Section 9.Regular Meetings 5 Section 10.Special Meetings 5 Section 11.'\A/aiver ofNotice 5 Section 12.Quorum ofBoardofDirectors 5 Section 13.Compensation 5 Section 14.Open1v1eetings 6 Section 15.Executive Session 6 Section 16.Action Without aF0l111al Meeting 6 Section 17.Meeting byTelephone 6 Section 18.Powers 6 Section 19.Managenlent Agent 7 Section 20. BOITO\ving 7 Section 21.Fining Procedure 8 Article 1\1. Officers 9 Section 1.Officers 9 Section 2.Election. Te1111ofOffice. andVacancies 9 Section 4.President. 9Ij'f!"':~ 426298.1 tly35JOO1~601/14/04 Section 5.VicePresident 9 Section 6.Secretary 9 Section 7.Treasurer 9 Section 8.Resignation 9 Article V. ConUllittees 10 Section 1.General "..10 Article VI. Miscellaneous 1I) Section 1.FiscalYear 10 Section 2.ParliamentalY Rules 1I) Section 3.Conflicts 10 Section 4.Atllendment 10 Article vn. Indemnification 10
ittees 10 Section 1.General "..10 Article VI. Miscellaneous 1I) Section 1.FiscalYear 10 Section 2.ParliamentalY Rules 1I) Section 3.Conflicts 10 Section 4.Atllendment 10 Article vn. Indemnification 10 Section 1.WhenIndenmification isRequired, Pennitted andProhibited 10 Section 2.Procedme Relating toIndemnification Payments 11 426298.1 ~y351001.s601/14104 BY-LAWS OF CPLPROPERTY O'VNERS ASSOCIATION, INC.
Article I.
Name, Membership, Applicability, andDefinitions Section 1.Name. ThenameoftheAssociation shallbeCPLProperty Owners Association, Inc.(hereinafter sometimes referred toasthe"Association").
Section 2.Membership. TheAssociation shallhavetwo(2)classes ofmembership, Class "A"and"B",asismorefullysetforthinthatDeclaration ofCovenants, Conditions, andRestrictions forCollege Place(thisishereinafter sometimes referred toasthe"Declaration"), thetermsofwhich pertaining tomembership arespecifically incorporated byreference herein.
Section 3.Definitions. ThewordsusedintheseBy-Laws shallhavethesamemeaning asset forthintheDeclaration, unless thecontext shallprohibit.
Article n.
Association: Meetings, Quomm. Voting, Proxies Section l,PlaceofJ\1eetings. Meetings oftheAssociation shallbeheldattheprincipal officeoftheAssociation oratsuchothersuitable placeconvenient tothemembers asmaybe designated bytheBoardofDirectors, eitherintheCommunity orasconvenient thereto aspossible andpractical.
Section 2.FirstMeeting andAlmual Meetings. Anannual orspecial meeting shallbeheld within one(1)yearfromthedatetheDeclaration isrecorded. Annual meetings shallbesetbythe Boardsoastooccurnolaterthanonehundred twenty (120)daysafterthecloseoftheAssociation's fiscalyear,butnotalegalholiday, oraSaturday andSunday. Annual meetings shallbe informational aslongastheDeclarant hastherighttoselectDirectors.
ehundred twenty (120)daysafterthecloseoftheAssociation's fiscalyear,butnotalegalholiday, oraSaturday andSunday. Annual meetings shallbe informational aslongastheDeclarant hastherighttoselectDirectors.
Section 3.Special Meetings. ThePresident maycallspecial meetings. Inaddition, itshall bethedutyofthePresident tocallaspecial meeting oftheAssociation ifsodirected byresolution of aMajority oftheBoardofDirectors oruponapetition signedbyatleasttwenty-five percent (25%) oftheClass"A"members. Thenoticeofanyspecial meeting shallstatethedate,time,andplaceof suchmeeting andthepurpose thereof. Nobusiness shallbetransacted ataspecial meeting, exceptas statedinthenotice.
Section 4.Notice ofMeetings. ItshallbethedutyoftheSecretary tomailortocausetobe delivered totheOwner ofrecordofeachUnitorLotanoticeofeachannualorspecial meeting ofthe 426298. Jfly35JOOl,s6 OJ!] 4/041 Association stating thepurpose ofthespecial meeting, aswellasthetimeandplacewhereitistobe held.IfanOwner wishes noticetobegivenatanaddress otherthanhisorherUnitorLot,heorshe shallhavedesignated bynotice inwriting totheSecretary suchotheraddress. Themailing or delivery ofanoticeofmeeting inthemanner provided inthisSection shallbeconsidered service of notice. Notices shallbeservednotlessthanten(10)normorethanthirty(30)daysbeforeameeting.
Section 5.Waiver ofNotice. Waiver ofnoticeofameeting ofthemembers shallbedeemed theequivalent ofproper notice. Anymember may,inwriting, waivenoticeofanymeeting ofthe members, eitherbefore oraftersuchmeeting. Attendance atameeting byamember, whether in person orbyproxy, shallbedeemed waiver bysuchmember ofnoticeofthetime,date,andplace thereof, unlesssuchmember specifically objects tolackofproper noticeatthetimethemeeting is calledtoorder.
whether in person orbyproxy, shallbedeemed waiver bysuchmember ofnoticeofthetime,date,andplace thereof, unlesssuchmember specifically objects tolackofproper noticeatthetimethemeeting is calledtoorder.
Section 6.AdjoUl1U11ent ofMeetings. Ifanymeetings oftheAssociation cannot beheld because aquorum isnotpresent, aMajority ofthemembers whoarepresent atsuchmeeting, either inperson orbyproxy, mayadjoum themeeting toatimenotlessthanfive(5)normorethanthirty (30)daysfromthetimetheoriginal meeting wascalled. Atsuchadjourned meeting atwhicha quorum ispresent, anybusiness whichmighthavebeentransacted atthemeeting originally called maybetransacted without further notice.
Section 7.Voting. Thevotingrightsofthemembers shallbeassetforthintheDeclaration, andsuchvotingrightsarespecifically incorporated herein.
Section 8.Proxies. Atallmeetings ofmembers, eachmember mayvoteinperson orby proxy. Allproxies shallbeinwriting, dated,andfiledwiththeSecretary beforetheappointed time ofeachmeeting. Everyproxyshallberevocable andshallautomatically ceaseuponconveyance by themember ofhisorherLotorUnit,oruponreceipt ofnoticebytheSecretary ofthedeathor judicially declared incompetence ofamember, orofwritten revocation, orupontheexpiration of eleven (11)months fromthedateoftheproxy.
Section 9.Quorum. Thepresence, inperson orbyproxy, oftwenty-five percent (25%)of theOwners towhich eligible votesappertain shallconstitute aquorum atallmeetings ofthe Association. Themembers present atadulycalledorheldmeeting atwhichaquorum ispresent maycontinue todobusiness untiladjournment, notwithstanding thewithdrawal ofenough members toleavelessthanaquorum.
Section 10.Voting byMail.TheBoardofDirectors mayauthorize members tovotebymail ontheelection ofdirectors andofficers oronanyothermatterthatmaybevotedonbythemembers.
ugh members toleavelessthanaquorum.
Section 10.Voting byMail.TheBoardofDirectors mayauthorize members tovotebymail ontheelection ofdirectors andofficers oronanyothermatterthatmaybevotedonbythemembers.
426298.1 tly351001-8601f14f042 Article III.
BoardofDirectors: Number, Powers, Meetings A. Composition andSelection.
Section 1.GovernilH~ Body;Composition. TheaffairsoftheAssociation shallbegoverned byaBoardofDirectors. Except asprovided inSection 2ofthisArticle, theDirectors mustresidein theCommunity andshallbemembers orspouses ofsuchmembers; provided, however, noPerson andhisorherspouse orroommate (i.e.notwooccupants ofthesameLotorUnit)mayserveonthe Boardatthesametime.
Section 2.Directors Appointed byDeclarant. TheDirectors shallbeselected bythe Declarant actinginitssolediscretion andshallserveatthepleasure oftheDeclarant, solongasthe Class"B"membership existsassetforthintheDeclaration, unless theDeclarant shallearlier surrender thisrighttoselectDirectors. TheDirectors selected bytheDeclarant neednotbeOwners orresidents intheCommunity. Thenames oftheinitialDirectors selected bytheDeclarant areset forthintheArticles ofIncorporation oftheAssociation.
Section 3.Number ofDirectors. TheBoardshallconsist ofthree(3)members. Thisnumber maybechanged byresolution oftheBoard; however, neverlessthanthree(3).
Section 4.Nomination ofDirectors. Elected Directors shallbenominated fromthefloorand mayalsobenominated byaNominating Committee, ifsuchacommittee isestablished bytheBoard.
Allcandidates shallhaveareasonable opportunity tocommunicate theirqualifications tothe members andtosolicitvotes.
Section 5.Election andTennofOffice. Notwithstanding anyotherprovision contained herein: (a)Notlaterthanthirty(30)daysaftertheClass"B"membership
ate theirqualifications tothe members andtosolicitvotes.
Section 5.Election andTennofOffice. Notwithstanding anyotherprovision contained herein: (a)Notlaterthanthirty(30)daysaftertheClass"B"membership terminates, ornolaterthanthirty(30)daysaftertheDeclarant surrenders itsrightto selectDirectors, ifsuchsurrender occurs priortothetermination oftheClass"B" membership, theAssociation shallcallaspecial meeting: tobeheldatwhich members shallelectthree(3)Directors forinitialterms,or~uchhigher number of Directors astheseBylaws thencallfor. I (b)Atannual meetings ofthemembership aftersuchspecial meeting, Directors shallbeelected. Alleligible members oftheAssociation shallvoteonall Directors tobeelected, andthecandidate(s) receiving the1110stvotesshallbeelected; provided, however, thoseDirectors serving atthetimeOLthefirstfewannual meetings afterthetermination oftheClass"B"membership shallservetheremainder oftheirinitialterms.
426298.1 ~y351001-SG 01114/043 Theinitialtermofone-third (l/3rd) oftheDirectors shallbeone(1)yearfrom thespecial meeting, theinitialtennofthesecond-third (2/3rd) oftheDirectors shall betwo(2)yearsfromthespecial meeting, andtheinitialtermofthethirdofthe Directors shallbethree(3)yearsfromthespecial meeting, however, eachsuchinitial termshallbeextended toterminate atthenextannual meeting whichoccurs. Atthe expiration oftheinitialtennofofficeofeachrespective member oftheBoard of Directors, asuccessor shallbeelected toserveforatermofthree(3)years. The members oftheBoardofDirectors shallholdofficeuntiltheirrespective successors shallhavebeenelected bytheAssociation. Ifatthetimeafterthespecial meeting, theseBylaws havebeenamended toincrease thenumber ofDirectors, theadditional Directors elected shalleachserveaninitialtermastogiveeffecttothestaggered
heAssociation. Ifatthetimeafterthespecial meeting, theseBylaws havebeenamended toincrease thenumber ofDirectors, theadditional Directors elected shalleachserveaninitialtermastogiveeffecttothestaggered termsreferred toabove.
(c)TheDeclarant, initssolediscretion, maycallmeetings earlier than required herein and/or maypermit Class"A"members toelectalargernumber of Directors atanymeeting thanrequired herein.
(d)IftheClassBmembership haspreviously ceased andisreinstated pursuant to theDeclaration inconnection withanannexation, thentheClassBmember's righttoappoint Directors underSection 2aboveshallbereinstated andthisSection 5provisions relating to election ofDirectors shallbesuspended untilsuchtimeastheClassBmembership ceases again.
Section 6.Removal ofDirectors. Atanyregular orspecial meeting oftheAssociation duly called, anyone ormoreofthemembers oftheBoardofDirectors mayberemoved, withorwithout cause,bytheClassBmember orbyamajority voteoftheClass"A"members andasuccessor may thenandtherebeelected tofillthevacancy thuscreated. ADirector whose removal hasbeen proposed bytheOwners shallbegivenatleastten(10)days'noticeofthecalling ofthemeeting and thepurpose thereof andshallbegivenanopportunity tobeheardatthemeeting. Additionally, any Director notappointed byDeclarant whohasthree(3)consecutive unexcused absences fromBoard meetings orwhoisdelinquent inthepayment ofanassessment formorethantwenty (20)daysmay beremoved byaMajority voteoftheDirectors atameeting, aquorum beingpresent. ThisSection shall110tapplytoDirectors appointed byDeclarant. IftheClassBmembership haspreviously ceased andisreinstated pursuant totheDeclaration inconnection withanannexation, thenthis abilityoftheClassBmember toremove aDirector isalsoreinstated.I
byDeclarant. IftheClassBmembership haspreviously ceased andisreinstated pursuant totheDeclaration inconnection withanannexation, thenthis abilityoftheClassBmember toremove aDirector isalsoreinstated.I Section 7.Vacancies. Vacancies intheBoardofDirectors caused byanyreason, excluding theremoval ofaDirector byvoteoftheAssociation, shallbefilledbyavoteoftheMajority ofthe remaining Directors, eventhough lessthanaquorum, atanymeeting oftheBoardofDirectors. Each Person soselected shallservetheunexpired portion oftheterm, B. Meetings.
426298.1 tly351001-S6 01/14/044 Section 8.Organization Meetings. Thefirstmeeting ofthemembers oftheBoard of Directors eachyearshallbeheldwithin ten(10)daysfollowing eachannual meeting ofthe membership atsuchtimeandplaceasshallbefixedbytheBoard.
Section 9.Regular Meetings. Regular meetings oftheBoardofDirectors maybeheldat suchtimeandplaceasshallbedetermined fromtimetotimebyaMajority oftheDirectors, butat leastfour(4)suchmeetings shallbeheldduring eachfiscalyearwithatleastone(1)perquarter.
Notice oftheregular schedule shallconstitute sufficient noticeofsuchmeetings.
Section 10.Special Meetings. Special meetings oftheBoardofDirectors shallbeheldwhen requested bythePresident, VicePresident orbyanytwo(2)Directors. Thenoticeshallspecify the timeandplaceofthemeeting andthenature ofanyspecial business tobeconsidered. Thenotice shallbegiventoeachDirector byoneofthefollowing methods: (a)bypersonal delivery; (b)written noticebyfirstclassmail,postage prepaid; (c)bytelephone communication, eitherdirectly tothe Director ortoaPerson attheDirector's homeorofficewhowould reasonably beexpected to communicate suchnoticepromptly totheDirector; (d)bytelegram, charges prepaid; (e)byfaxas
cation, eitherdirectly tothe Director ortoaPerson attheDirector's homeorofficewhowould reasonably beexpected to communicate suchnoticepromptly totheDirector; (d)bytelegram, charges prepaid; (e)byfaxas longasconfirmation ofthefaxtransmission isreceived or(f)byemail. Allsuchnotices shallbe givenorsenttotheDirector's address ortelephone number asshown ontherecords ofthe Association. Notices sentbyfirstclassmailshallbedeposited intoaUnited Statesmailbox atleast four(4)daysbeforethetimesetforthemeeting. Notices givenbypersonal delivery, telephone, or telegraph company shallbegivenatleastforty-eight (48)hoursbeforethetimesetforthemeeting.
Section 11.Waiver ofNotice. Thetransactions ofanymeeting oftheBoardofDirectors, however calledandnoticed orwherever held,shallbeasvalidasthough takenatameeting dulyheld afterregular callandnotice, if(a)aquorum ispresent, and(b)eitherbefore orafterthemeeting, eachoftheDirectors notpresent signsawritten waiver ofnotice, aconsent toholding themeeting, oranapproval oftheminutes. Thewaiver ofnoticeorconsent neednotspecify thepurpose ofthe meeting. Notice ofameeting shallalsobedeemed giventoanyDirector whoattends themeeting without protesting before oratitscommencement aboutthelackofadequate notice.
Section 12.Quorum ofBoardofDirectors. Atallmeetings oftheBoardofDirectors, a Majority oftheDirectors shallconstitute aquorum forthetransaction ofbusiness, andthevotesofa Majority oftheDirectors present atameeting atwhichaquorum ispresent shallconstitute the decision oftheBoardofDirectors. Ameeting atwhichaquorum isinitially present maycontinue to transact business, notwithstanding thewithdrawal ofDirectors, ifanyactiontakenisapproved byat leastaMajority oftherequired quorum forthatmeeting. Ifanymeeting cannot beheldbecause a
ent maycontinue to transact business, notwithstanding thewithdrawal ofDirectors, ifanyactiontakenisapproved byat leastaMajority oftherequired quorum forthatmeeting. Ifanymeeting cannot beheldbecause a quorum isnotpresent, aMajority oftheDirectors whoarepresent atsuchmeeting mayadjourn the meeting toatimenotlessthanfive(5)normorethanthirty(30)daysfromthetimethattheoriginal meeting wascalled. Atsuchadjourned meeting atwhichaquorum ispresent, anybusiness which mighthavebeentransacted atthemeeting originally calledmaybetransacted without further notice.
Section 13.Compensation. NoDirector shallreceive anycompensation fromthe Association foractingassuchunlessapproved byaMajority oftheClass"A"members.
426298.1 ~y351001-S601/14/045 Section 14.OpenMeetings. Allmeetings oftheBoardshallbeopentoallmembers, but members otherthanDirectors maynot participate inanydiscussion ordeliberation unlessexpressly soauthorized bytheBoard.
Section 15.Executive Session. TheBoardmayadjourn ameeting andreconvene in executive session todiscuss andvoteuponpersonnel matters, litigation inwhichtheAssociation is ormaybecome involved, contract negotiations, andorders ofbusiness ofasimilar nature. The natureofanyandallbusiness tobeconsidered inexecutive session shallfirstbeannounced inopen seSSIOn.
Section 16.Action Without aFOlmal Meeting. Anyactiontobetakenatameeting ofthe Directors oranyaction thatmaybetakenatameeting oftheDirectors maybetakenwithout a meeting ifaconsent inwriting, setting forththeaction sotaken, shallbesigned byallofthe Directors. Suchconsent maybeexecuted bymultiple counterpart, faxsignatures oremail.
Section 17.Meeting byTelephone. TheBoardofDirectors mayholdameeting bytelephone conference-call procedures inwhichallpersons participating inthemeeting canheareachother.
erpart, faxsignatures oremail.
Section 17.Meeting byTelephone. TheBoardofDirectors mayholdameeting bytelephone conference-call procedures inwhichallpersons participating inthemeeting canheareachother.
Thenoticeofameeting bytelephone conference muststatethefactthatthemeeting willbeheldby telephone aswellasallothermatters required tobeincluded inthenotice. Participation ofaperson inaconference-call meeting constitutes presence ofthatperson atthemeeting.
C. Powers andDuties.
Section 18.Powers. TheBoardofDirectors shallberesponsible fortheaffairs ofthe Association andshallhaveallofthepowers anddutiesnecessary fortheadministration ofthe Association's affairs and,asprovided bylaw,maydoallactsandthings asarenotbythe Declaration, Articles, ortheseBv-Laws directed tobedoneand,exercised exclusively bythe- , members. Inaddition totheduties imposed bytheseBy-Laws orbyanyresolution ofthe Association thatmayhereafter beadopted, theBoardofDirectors shallhavethepower toandbe responsible forthefollowing, inwayofexplanation, butnotlimitation: (a)preparation andadoption ofanannual budget inwhichthereshallbe established thecontribution ofeachOwner tothecommon expenses, whichannual budget shalltakeintoaccount thedifferent assessments against theLotsandthe Units; (b)making assessments todefraythecommon expenses, establishing the meansandmethods ofcollecting suchassessments, andestablishing theperiodofthe installment payments oftheannual assessment; (c)providing fortheoperation, care,upkeep, andmaintenance ofallareas whicharethemaintenance responsibility oftheAssociation; 426298.1 ily351001-S6 01/14/046 (d)designating, hiring, anddismissing thepersonnel necessary forthe operation oftheAssociation and,whereappropriate, providing forthecompensation
lity oftheAssociation; 426298.1 ily351001-S6 01/14/046 (d)designating, hiring, anddismissing thepersonnel necessary forthe operation oftheAssociation and,whereappropriate, providing forthecompensation ofsuchpersonnel andforthepurchase ofequipment, supplies, andmaterial tobe usedbysuchpersonnel intheperformance oftheirduties; (e)collecting theassessments, depositing theproceeds thereof inabank depository which itshallapprove, andusingtheproceeds toadminister the Association; (.0 making andamending userestrictions andrulesandregulations; (g)opening ofbankaccounts onbehalfoftheAssociation anddesignating thesignatories required; (h)enforcing bylegalmeans theprovisions oftheDeclaration, theseByLaws, andtherulesandregulations adopted byit,andbringing anyproceedings which maybeinstituted onbehalf oforagainst theOwners concerning the Association; (i)obtaining andcarrying insurance against casualties andliabilities, as provided intheDeclaration, andpaying thepremium costthereof; (j) paying thecostofallservices rendered totheAssociation orits members whicharenotdirectly chargeable toOwners; (k)keeping bookswithdetailed accounts ofthereceipts andexpenditures affecting theAssociation anditsadministration, andspecifying themaintenance and repairexpenses andanyotherexpenses incurred; and (1)contracting withanyPerson fortheperformance ofvarious dutiesand functions. TheBoard shallhavethepower toenterintocommon management agreements withtrusts,condominiums, orotherassociations: Anyandallfunctions oftheAssociation shallbefullytransferable bytheBoard, inwholeorinpart,toany otherentity.
Section 19.Management Agent. TheBoardofDirectors mayemploy fortheAssociation a professional management agentoragentsatacompensation established bytheBoardofDirectors to
holeorinpart,toany otherentity.
Section 19.Management Agent. TheBoardofDirectors mayemploy fortheAssociation a professional management agentoragentsatacompensation established bytheBoardofDirectors to perform suchdutiesandservices astheBoardofDirectors shallauthorize. TheDeclarant oran affiliate oftheDeclarant maybeemployed asmanaging agentorManager. Thetermofany management agreement shallnotexceed one(1)yearandshallbesubject totermination byeither partywithout causeandwithout penalty, uponninety(90)days'written notice.
Section 20.Bon·owing. TheBoardofDirectors shallhavethepowertobOlTOW money for thepurpose ofrepairorrestoration oftheCommon Property andfacilities without theapproval ofthe 426298.1 tly351001.,'36 01/14/047 members oftheAssociation; provided, however, theBoardshallobtainmembership approval inthe samemanner asforspecial assessments, intheeventthattheproposed bon-owing isforthepurpose ofmodifying, improving, oradding amenities, andthetotalamount ofsuchborrowing exceeds or would exceed TenThousand Dollars ($10,000.00) outstanding debtatanyone timepereachone hundred (l00)UnitsorLotsintheAssociation atanygiventime.
Section 21.Fining Procedure. TheBoardshallnotimpose afine(alatecharge shallnot constitute afine)unlessanduntilthefollowing procedure isfollowed: (a)Demand. Written demand toceaseanddesistfromanalleged violation shallbeserved uponthealleged violator specifying: (i) thealleged violation; (ii) theactionrequired toabatetheviolation; and (iii) atimeperiod, notlessthanten(l0)days,during whichtheviolation maybeabated without further sanction, ifsuch violation isacontinuing one,orastatement thatanyfurther violation ofthesamerulemayresultintheimposition ofafine,iftheviolation isnotcontinuing. TheBoardoritsdesignee maydemand immediate
nction, ifsuch violation isacontinuing one,orastatement thatanyfurther violation ofthesamerulemayresultintheimposition ofafine,iftheviolation isnotcontinuing. TheBoardoritsdesignee maydemand immediate abatement insuchcircumstances which, intheBoard's determination, poseadanger tosafetyorproperty, (b) Notice. Within twelve(12)months ofsuchdemand, iftheviolation continues pasttheperiod allowed inthedemand forabatement without penalty, orif thesameruleissubsequently violated, theBoardmay,uponnotice, impose afine.
Thenoticeshallstate: (i) thenatureofthealleged violation; (ii) thatthealleged violator may,within ten(10)days fromthedateofthenotice, request ahearing regarding thefine; (iii) thatanystatements, evidence, andwitnesses maybe produced bythealleged violator atthehearing; and (iv) thatallrightstohavethefinereconsidered are waived ifahearing isnotrequested withinten(10)daysofthedateof thenotice.
(c) Hearing. Ifahearing isrequested, itshallbeheldbeforetheBoard inexecutive session, andthealleged violator shallbegivenareasonable opportunity 426298.1 ~y351001",'i601l14/048 tobeheard. Theminutes ofthemeeting shallcontain awritten statement ofthe results ofthehearing.
Article IV.
Officers Section 1.Officers. Theofficers oftheAssociation shallbeaPresident, VicePresident, Secretary, andTreasurer. Anytwoormoreoffices maybeheldbythesamePerson, excepting the offices ofPresident andSecretary. ThePresident andTreasurer shallbeelected fromamong the members oftheBoardofDirectors.
Section 2.Election, Tel11lofOffice, andVacancies. Theofficers oftheAssociation shallbe elected annually bytheBoard ofDirectors atthefirstmeeting oftheBoardofDirectors following eachannual meeting ofthemembers. Avacancy inanyofficearising because ofdeath,resignation,
eAssociation shallbe elected annually bytheBoard ofDirectors atthefirstmeeting oftheBoardofDirectors following eachannual meeting ofthemembers. Avacancy inanyofficearising because ofdeath,resignation, removal, orotherwise, maybefilledbytheBoardofDirectors fortheunexpired portion oftheterm.
Section 3.Removal. Allyofficermayberemoved bytheBoardofDirectors whenever, inits judgment, thebestinterests oftheAssociation willbeserved thereby.
Section 4.President. ThePresident shallbethechiefexecutive officer oftheAssociation andshallpreside atallmeetings oftheAssociation andoftheBoardofDirectors. ThePresident shallhaveallthegeneral powers anddutieswhichareincident totheofficeofthepresident ofa corporation organized undertheTexasNon-Profit Corporation Act.
Section 5.VicePresident. TheVicePresident shallactinthePresident's absence andshall haveallpowers, duties, andresponsibilities provided forthePresident whensoacting.
Section 6.Secretary. TheSecretary shallkeeptheminutes ofallmeetings oftheAssociation andoftheBoardofDirectors andshallhavecharge ofsuchbooksandpapers astheBoard of Directors maydirectandshall,ingeneral, perf01111orcausetobeperformed alldutiesincident tothe officeofthesecretary ofacorporation organized inaccordance withTexaslaw.
Section 7.Treasurer. TheTreasurer shallhavetheresponsibility fortheAssociation's funds andsecurities andshallberesponsible forkeeping fullandaccurate financial records andbooksof account showing allreceipts anddisbursements, forpreparing allrequired financial statements and taxreturns, andforthedeposit ofallmonies andothervaluable effects inthenameofthe Association insuchdepositories asmayfromtimetotimebedesignated bytheBoardofDirectors.
Section 8.Resignation. Anyofficer mayresignatanytimebygivingwritten noticetothe
hervaluable effects inthenameofthe Association insuchdepositories asmayfromtimetotimebedesignated bytheBoardofDirectors.
Section 8.Resignation. Anyofficer mayresignatanytimebygivingwritten noticetothe BoardofDirectors, thePresident, ortheSecretary, Suchresignation shalltakeeffectonthedateof thereceipt ofsuchnotice oratanylatertimespecified therein, andunless otherwise specified therein, theacceptance ofsuchresignation shallnotbenecessary tomakeiteffective.
Article V.
426298.] ily35]00]-S6 0]/]4/049 Committees Section 1.General. Committees toperf01111suchtasksandtoserveforsuchperiods asmay bedesignated bytheBoardarehereby authorized. Eachcommittee shallbecomposed andshall operate inaccordance withthetermsoftheresolution oftheBoardofDirectors designating the committee orwithrulesadopted bytheBoardofDirectors.
Article VI.
Miscellaneous Section 1.FiscalYear.ThefiscalyearoftheAssociation shallbedetermined byresolution oftheBoard. Intheabsence ofsucharesolution, thefiscalyearshallbethecalendar year.
Section 2.Parliamentary Rules. Robelis RulesofOrder(current edition) shallgovem the conduct ofallAssociation proceedings, whennotinconflict withTexas law,theArticles of Incorporation, theDeclaration, theseBy-Laws, orarulingmadebythePerson presiding overthe proceeding.
Section 3.Conflicts. Ifthereareconflicts orinconsistencies between theprovisions ofTexas law,theArticles ofIncorporation, theDeclaration, andtheseBy-Laws, theprovisions ofTexaslaw, theDeclaration, theArticles ofIncorporation, andtheBy-Laws (inthatorder)shallprevail.
Section 4.AIllendment. Theprovisions oftheDeclaration applicable toamendment ofthat instrument shallapplytoanyamendment totheseBy-Laws. Inaddition, theseBylaws maybe amended bytheBoardofDirectors.
Article VII.
hlden111ificatiol1
ovisions oftheDeclaration applicable toamendment ofthat instrument shallapplytoanyamendment totheseBy-Laws. Inaddition, theseBylaws maybe amended bytheBoardofDirectors.
Article VII.
hlden111ificatiol1 Section 1.WhenIndemnification isRequired, Pen11itted andProhibited.
(a) TheAssociation shallindemnify adirector, officer, committee member, employee, oragentoftheAssociation whowas,is,ormaybenamed defendant orrespondent inanyproceeding asaresultofhisorheractions or omissions withinthescopeofhisorherofficial capacity intheAssociation. Forthe purposes ofthisarticle, anagentincludes onewhoisorwasserving attherequest of theAssociation asadirector, officer, partner, venturer, proprietor, trustee, partnership, jointventure, soleproprietorship, trust,employee benefit plan,orother enterprise. However, theAssociation shallindemnify aperson onlyifheorsheacted ingoodfaithandreasonably believed thattheconduct wasintheAssociation's best interests. Inacaseofacriminal proceeding, theperson maybeindenmified onlyif heorshehadnoreasonable causetobelieve thattheconduct wasunlawful. The Association shallnotindemnify aperson whoisfoundliabletotheAssociation oris foundliabletoanother onthebasisofimproperly receiving apersonal benefit. A 426298.1 II,'351001--"\6 01/14/04 10 person isconclusively considered tohavebeenfoundliableinrelation toanyclaim, issue,ormatter iftheperson hasbeenadjudged liablebyacourtofcompetent jurisdiction andallappeals havebeenexhausted.
(b) Thetermination ofaproceeding byjudgment, order,settlement, conviction oronapleaofnolocontendere oritsequivalent doesnotnecessarily preclude indemnification bythecorporation.
(c) TheAssociation shallpayor reimburse expenses incurred bya director, officer, member, committee member, employee, oragentoftheAssociation
esnotnecessarily preclude indemnification bythecorporation.
(c) TheAssociation shallpayor reimburse expenses incurred bya director, officer, member, committee member, employee, oragentoftheAssociation inconnection withtheperson's appearance asawitness orotherparticipation ina proceeding involving oraffecting theAssociation whentheperson isnotanamed defendant orrespondent intheproceeding.
(d) Inaddition tothesituations otherwise described inthisparagraph, theAssociation mayindemnify adirector, officer, member, committee member, employee, oragentoftheAssociation totheextentpermitted bylaw.However, the Association shallnotindemnify anyperson inanysituation inwhichindemnification isprohibited bythetenusofSection 1(a)above.
(e) Before thefinaldisposition ofaproceeding, theAssociation may payindemnification expenses permitted bythebylaws andauthorized bythe Association. However, theAssociation shallnotpayindemnification expenses toa person before thefinaldisposition ofaproceeding if:theperson isanamed defendant orrespondent inaproceeding brought bytheAssociation oroneormore members ortheperson isalleged tohaveimproperly received apersonal benefit or committed otherwilfulorintentional misconduct.
(f) IftheAssociation mayindemnify aperso~ underthebylaws, the person maybeindemnified against judgments, penalties, including exciseandsimilar taxes,fines,settlements, andreasonable expenses (including attomey's fees)actually incurred inconnection withtheproceeding. However, iftheproceeding wasbrought byoronbehalf oftheAssociation, theindemnification islimited toreasonable expenses actually incurred bytheperson inconnection withtheproceeding.
Section 2.Procedure Relating toIndemnification Payments.
(a) Before theAssociation maypayanyindemnification expenses
toreasonable expenses actually incurred bytheperson inconnection withtheproceeding.
Section 2.Procedure Relating toIndemnification Payments.
(a) Before theAssociation maypayanyindemnification expenses (including attomey's fees),theAssociation shallspecifically determine that indemnification ispermissible, authorize indemnification, anddetermine that expenses tobereimbursed arereasonable, exceptasprovided inSection 2(c)below.
TheAssociation maymakethesedeterminations anddecisions byanyone ofthe following procedures: 426298.1 lly351001-3601114/0411 (i) Majority voteofaquorum consisting ofdirectors who,atthetimeofthevote,arenotnamed defendants orrespondents intheproceeding.
(ii) Ifsuchaquorum cannot beobtained, byamajority voteofacommittee oftheBoardofDirectors, designated toactinthe matterbyamajority voteofalldirectors, consisting solelyoftwoor moredirectors whoatthetimeofthevotearenotnamed defendants orrespondents intheproceeding.
(iii) Determination byspecial legalcounsel selected by theBoard ofDirectors byvoteasprovided inSection 2(a)(i) or 2(a)(ii)orifsuchaquorum cannot beobtained andsuchacommittee cannot beestablished, byamajority voteofalldirectors.
(iv) Majority voteofmembers atameeting atwhicha quorum ispresent, excluding directors whoarenamed defendants or respondents intheproceeding.
(b) TheAssociation shallauthorize indemnification anddetermine that expenses tobereimbursed arereasonable inthesamemanner thatitdetermines whether indemnification ispermissible. Ifthedetermination thatindemnification is permissible ismadebyspecial legalcounsel, authorization ofindemnification and determination ofreasonableness ofexpenses shallbemadeinthemanner specified bySection 2(a)(iii) above, goveming theselection ofspecial legalcounsel. A
legalcounsel, authorization ofindemnification and determination ofreasonableness ofexpenses shallbemadeinthemanner specified bySection 2(a)(iii) above, goveming theselection ofspecial legalcounsel. A provision contained inthearticles ofincorporation, thebylaws, oraresolution of members ortheBoard ofDirectors thatrequires theindemnification permitted by Section 1,above, constitutes sufficient authorization ofindemnification eventhough theprovision maynothavebeenadopted orauthorized inthesamemanner asthe determination thatindemnification ispermissible.
(c) TheAssociation shallpayindemnification expenses before final disposition ofaproceeding onlyaftertheAssociation determines thatthefactsthen known wouldnotpreclude indemnification andtheAssociation receives awritten affirmation andundertaking fromtheperson tobeindemnified. Thedetermination thatthefactsthenknown tothosemaking thedetermination would notpreclude indemnification andauthorization ofpayment shallbemadeinthesamemanner asa determination thatindemnification ispermissible underSection 2(a)above. The person's written affirmation shallstatethatheorshehasmetthestandard ofconduct necessary forindemnification underthebylaws. Thewritten undertaking shall provide forrepayment oftheamount paidorreimbursed bytheAssociation ifitis ultimately determined thattheperson has110tmettherequirements for indemnification. Theundertaking shallbeanunlimited general obligation ofthe 426298.1 ily351001-S6 01/14/0412 person, butitneednotbesecured anditmaybeaccepted without reference to financial abilitytomakerepayment.
(d) Anyindemnification oradvance ofexpenses shallbereported in writing tothemembers oftheAssociation. Thereportshallbemadewithorbefore thenoticeorwaiver ofnoticeofthenextmembership meeting, orwithorbefore the
ndemnification oradvance ofexpenses shallbereported in writing tothemembers oftheAssociation. Thereportshallbemadewithorbefore thenoticeorwaiver ofnoticeofthenextmembership meeting, orwithorbefore the nextsubmission tomembers ofaconsent toactionwithout ameeting. Inanycase, thereportshallbesentwithinthe12-111onth periodimmediately following thedateof theindemnification oradvance.
Secretary ofAssociation Effective Date: ,2004 JUL-92004 4fa74~'COUNTY CLERK HARRIS COUNTY, TEXAs 426298.1 ~y35100H601114/0413