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HomeMy WebLinkAboutresolution.council.039-94 'It .~ ,\.. ~._- lie RESOLUTION NO.,~ Series of 1994 A RESOLUTION APPROVING THE ORGANIZATION OF THE ASPEN STREET RAILWAY COMPANY. WHEREAS, the City of Aspen, Colorado ("the City") is a duly organized and validly existing political subdivision under the Constitution and laws of the State of Colorado; and WHEREAS, it has been proposed that there be created, pursuant to the Colorado Nonprofit Corporation Act, the Aspen Street Railway Company ("the Corporation") for the purposes of constructing, installing and equipping certain public transportation facilities in or for the benefit of the City; and, WHEREAS, proposed forms of Articles ofIncorporation and Bylaws of the Corporation have been presented to the City Council at this meeting; and, WHEREAS, the Council desires at this time to authorize the organization of the Corporation in accordance with the proposed Articles of Incorporation and Bylaws of the tit t_ . Corporation in substantially the form presented at this meeting, a true and correct copy of which is attached hereto as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ASPEN, COLORADO: 1. Ap1?roval of Prior Action. All actions heretofore taken (not inconsistent with the provisions of this Resolution) by the City Council or by the officers or staff of the City of Aspen toward the creation and establishment of the Corporation and the accomplishment of the transactions herein authorized are hereby ratified, approved and confirmed. 2. Approval of COl:poration. The activities and purposes of the Corporation, as specified in the Articles of Incorporation and Bylaws thereof, are hereby approved by the City of Aspen. 3. City Action. The Mayor, the City Manager, and the City Clerk are hereby authorized to take all action necessary or reasonably required to carry out, give effect to and to consummate the transactions contemplated hereby. 4. Severability. If a provision of this Resolution should be held invalid, the invalidity of such provision shall not affect any of the other provisions of this Resolution. 5. Other Actions by the COl:poration. The appropriate officers of the Corporation and the City, and each of them, are hereby authorized to execute and deliver for and on behalf of the City and the Corporation, respectively, any or all additional certificates, documents, and other papers to perform all other acts they may deem necessary or appropriate in order to implement and carry out the matters authorized in this resolution and any resolution of the Corporation. 6. Immediate effect. This Resolution shall take effect immediately upon its passage. e (e \~-. ~ INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the_ ;g day of Jlay , 1994. JOh~n~~, !~ I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the day hereinabove stated. -- M m::;; ...... - 1 .~ .-: '9 "'t T H U e e;.'. ~ \~ I. ., 8:48 P...02 ,\o\.t...<.\t.\{....~ ARTICLES OF INCORPORATION OF ASPEN STREET RATI..W A Y COMPANY The undersigned adult natural person, acting as lincorporator, hereby establishes a nonprofit corporation pursuant to the Colorado Nonplrofit Corporation Act and adopts the following articles of incorporation: FIRST: ~. The name of the corporation is Aspen Street Railway Company SECOND: Duration. The corporation shall have perpetual existence, THIRD: (a) Purnoses. The corporation is organized and shali be operated exclusively on behalf of and for the benefit and in furtherance of the purposes of the City of Aspen, Colorado, and the inhabitants thereof. All monies realized by the corporation shall be used exclusively for the operation, maintenance and development of property of the corporation, including payment of obligations of the corporation in connection therewith, which property shall be used to provide safe and affordable public transportation. Any such property shall be located within the City of Aspen, Colorado or have a substantial connection therewith. (b) Powers. In furtherance of the foregoing purposes and objectives (but not otheIWise) and subject to the restrictions set forth in section (c) of this article, the corporation shall have and may exercise all of the powers now or hereafter conferred upon nonprofit corporations organized under the laws of Colorado and may do everything necessary or convenient for the accomplishment of any of the corporate purposes, either alone or in connection with other organizations, entities or individuals, and either as principal or agent, subject to such limitations as are or may be prescribed by law. (c) Restrictions On Powers. (1) No part of the net earnings of the corporation shall inure to the benefit of or be distributable to any director or officer of the colrpOration, or any other private person (except that reasonable compensation may be paid for services rendered to or for the benefit of the corporation affecting one or more of its purposes), arid no director or officer of the corporation, or any other individual, shall be entitled to share in any distribution of any of the corporate assets on dissolution of the corporation or otheIWise. (2) No substantial part of the activities of the corporation shall consist of carrying on propaganda or otheIWise attempting to influence legislation. The 05/1'194 CN-58!8 DN-?ll952.\ . -- MA'Y'-.:\.,,~-'94 THU 8:48 P..03 tA. \\W la... .. a 1- corporation shall not participate or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. (3) All property of the corporation shall be owned for the benefit of the City of Aspen, Colorado, Upon dissolution of the ~rporation, all of the corporation's assets remaining after payment of or provision for all of its liabilities shall be paid over or transferred to the City of Aspen, Colorado. (4) The corporation at all times shall be one not organized for profit. ~ These Arti~les o(Incomoration mav not be amen~ without lhe affirmative vote o( four of tJ1e members of.Jb~ Board.Jlf Directors. R~istered Office and Al!:ent. The address of the initial registered Aspen, Colorado . The name of FOURTH: office of the corporation is its initial registered agent at such address is FIFTH: Members. The corporation shall have no members. SIXTH: (a) Board of Directors. The management of the affairs of the corporation shall be vested in a Board of Directors, except as otherwise provided in the Colorado Nonprofit Corporation Act, these articles of incorporation or the bylaws of the corporation. The ftlllBber sf directs", their e1assifie&liefts, if MY, their tefffiS sf sfRee Ilftd HIe 1Bl\ft/ler sf theif' eleeHo/l or appeill tlBellt shall be determifte6 _wing te the b yle.ws 0 f !he earpeffl~e/l fr61B alBa te BlBe ift ferec.11Je Board (If Directors sh~ll have five members. At least i' . Council of the Citv of Asuen and.JlUeast one other mem~ BoaIll..2f Directors s1Jil.J.a..il IV timest be a full time emDlovee of the City of Asoen_ The City Counc~l or tlm. Citv Mana~er R( lhe Citv of Asuen s~e riltht to aDl>oin\ t~e two a~ members of J~ ~irectoTS. ~cation. if any a oUlir~tors. their terms qf..2!fice and tfte manner ~Iection or aooointment sh~lI otherwise be determined 8l'rnl1lin& to 't\12. bv laws of thsl corooration from time to time ill force. (b) Liabilitv of Directors. No director shall be personally liable to the corporation for monetary damages for any breach of fiduciary duty as a director, except that the foregoing shall not eliminate or limit such director's liability to the corporation for monetary damages for the following: (I) any breach of su.ch director's duty of loyalty to :the corporation, (2) any of such director's acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (3) acts specified in C.R.S, Section 7-24- Ill, as it now exists or hereafter may be amended (regarding a director's assent to or 05/11/\14 eN-Sill DN.70l1S2,1 MA'Y'.:-:-.19-94 THU 8:49 P_04 (A - ~ ~. e participation in the making of any loan by the corporntion to any director or officer of the corporation), or (4) any transaction from which such director derived an improper personal benefit. If the Colorado Nonprofit Corporntion Act hereafter is amended to authorize the further elimination or limitation of the liability of directors, then the liability of a director of the cotporntion, in addition to the limitation on personal liability provided herein, shall be further eliminated or limited to the fullest extent permitted by the Colorado Nonprofit Corporation Act. Any repeal or modification of this Article SIXTH (b) shall be prospective only and shall not adversely affect any right or protection of a director of the corporation existing at the time of such repeal or modification. (c) Initial Board. Three directors shall constitute the initial Board of Directors. Their names and addresses are as follows: ~ Address SEVENTH: Bylaws. The initial bylaws of the corporation shall be as adopted by the Board of Directors. The Board of Directors shall have power to alter, amend or repeal the bylaws from time to time in force and adopt new bylaws, ~option or amendment of b~laws 2Ube cqrooration ~twJ. reouire the affirmative vote of four mem~ers of the Bnard..szLDirectors. The bylaws of the cotporntion may contain any provisions for the regulation or management of the affairs of the corporation that are not inconsistent with law or these articles of incorporation, as these articles may from time to time be amended, However, no bylaw at any time in effect, and no amendment to these articles, shall have the effect of giving any director or officer of the corporntion any proprietary interest in the corporation's property or a.~sets, whether duringi the term of the corporntion's existence or as an incident to its dissolution. 05118194 ''1'1-5818 DN.709S3.1 ~ ~ Y - 1 q,,,7.":"3 4 T H U 8:58 P..85 (- '. e ~ ., EIGHTH: Incornorator. The name and address of the incorporator is: Thomas J, Mancuso, Esq. 410 17th Street, Suite 2200 Denver, Colorado 80202 Dated: Thomas J.' Mancuso - Incorporator 05118/94 CN-Sin DIl-109$2.\ M Ai Y - 1 ,~,,;-:;:; ":3 4 T H U ~e' t{S< ~ ~ ., 4. .., 8:5121 ACKNOWLBDGMENT ST A TB OF COLORADO ) ) s. CITY AND COUNTY OF DENVER ) Acknowledged before me this _ day of Mancuso as incorporator. Witness my hand and official seal. My commission expires P..12I6 1994, by Thomas], (SEAL) Notary Public OSIII/!l4 CN..ma DN-?09S2.1 MAY-19-94 THU (A ~. 1@.1t.. ~1 \\l. '''''' lIe,.. "'. \,. OJIIlM CN-SHIH DN.709S3.1 9:19 P.:26 BYLAWS OF ASPEN STREET RAILWAY COMPANY MAY-19-94 THU 9:86 P..1l36 ~. \,. ~~ - e'. ~\ \';. TABLE OF CONTENTS Page ARTICLE 1. OFFICES ........."............ I Section 1.1 Business Offices .. . . . . . , . . . . . . . , . . . . . . . . . .. 1 Section 1.2 Reristered Office ....................................... 1 ARTICLE n. MEMBERS .......................................,.......2 Section 2.1 No Members ........,............. , . . . . .. 2 ARTICLE m. BOARD OF DIRECTORS .....,................,............,. 3 Section 3.1 General Powers ...,..........,............ 3 Section 3.2 Number. Election. Tenure and Oualificati.wl.s . . . . . . . .. 3 Section 3.3 Vacancies....,........".,...,.......... 3 Section 3.4 Rel!:ular Meetings ............,.,........... 4 Section 3.5 Soecial Meetings . . . . . . . . . . , . . . . . , . . . . . . , . .. 4 Section 3.6 Notice......,................,.......,. 4 Section 3.7 Presumntion of Assent ...,...............,.., 4 Section 3.8 Quorum and Voting .. .. .. .. .. I . . . . .. .. I I .. I .. . .. . .. . . .. 4 Section 3.9 Compensation.................,........,.. 5 Section 3.10 Executive and Other Committ~ . , . , . . . . . . . . . . . .. 5 ~IIIIM CN.5818 DN-709SU MAY-19-94 THU 9:136 P..137 ~... \., Section 3,11 Mretinl!s by Telephone .. . , . . . . . . . .. . , . . . .. . . . . ." 5 Section 3.12 Action Without a Mretini ..."...."."......"..".. 5 ARTICLE IV. OFFICERS AND AGENTS . . , . , . . , . . . . . , , , . , . . , , . " . . , . , , . , , , , ." 6 Section 4.1 Number and Oualifications , . " , . . . .. " .. .. . . " , . . . , "" 6 Section 4.2 Election and Term of Office. , , , . . . " . , . . . . . . , . "" 6 Section 4,3 Compensation..,.........,,,...........,,,.,,,.,,,, 6 Section 4.4 Removal.,...."..,..."...",......."......". 6 Section 4.5 Vacancies".....,.""..."........"."",.."" 6 Section 4.6 Authoritv and Duties of Officers ...""....""."."". 6 Section 4,7 Sure(y Bonds " . , , . , . . , . . " . . . . . . . , . . . . , . , "" 8 _ ARTICLE V. IND~CATlON . . .. . , . . . . . . . , . . . . , . . . . . . " . .. . . . . .. . . . . . . , .. 9 Section 5.1 Definitions...."....,,,,,,...,,.....,,,,..,,.. 9 Section 5.2 Rig:ht to Indemnification . . . , , . . , . , " . . . . . . . . . " , , . . , . 10 Section 5.3 Prior Authorization Required " . , . , . . . . . . . , . , , . . . . . . ." II Section 5.4 Success on Merits or Otherwise ." . , . . , , . , . . . , . , . . . , , . II Section 5.5 Advancement of Expenses .""."."..."".",,,...'''.,. 11 Section 5.6 Pa,ylJlent Procedures ...".",.".."......'".""...... II Section 5.7 Insurance.".""..""....."".."".".....""..""."". 12 Section 5.8 Rie:ht to Imoose Conditions to Indemnification" . , . .. . . , . .. , .. 12 <It 05/11194 CN-S818 DN-709".1 MAY-19-94 THU 9:B7 P..08 ~ '. - (It Section 5.9 Other Ril!hts and Remedies . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 5.10 Ap:plicability: Effect .."....,............,........ 13 Section 5.11 Indemnification of AlZents . . . . . . . , , . . . , . . . . . . . . . . . , . 13 Section 5.12 Savinl!s Clause: Limitation ...........,............. 13 ARTICLE VI. MISCELLANEOUS .....,......................,..........., IS Section 6.1 Account Books. Minutes. Etc . . . . . . . . . . . . . . . . . ., IS Section 6.2 fiscal Year .................." . . . . . . . . . . 15 Section 6.3 Conveyances and Encumbrances ................, 15 Section 6.4 Desil!nated Contributions. . . . . . . . . . . . . . . . . . . . .. 15 Section 6.5 Conflicts of Interest . . . . . . , . . . . . . . . . . . . . . . . . . IS Section 6.6 Loans to Directors and Officers Prohibited ,.....,... IS Section 6.7 References to Internal Revenue Code .......,...... 16 Section 6.8 Amendments............................. 16 Section 6.9 Severability....,......................... 16 oS11I194 ~'W.S81B DN.10llS).!. MAY-19-94 THU 9:1137 P.89 _I...... " .. - ~'._' % , \~,< BYLAWS OF ASPEN STREET RAILWAY COMPANY ARTICLE'I. OFFICES Section 1: 1 Business Offices. The principal office of the corporation shall be located in Aspen, Colorado. The corporation may have such other offices, either within or outside Colorado, as the board of directors may designate or as the affairs of the corporation may require from time to time. Section 1.2 Rel!istered Office. The registered office of the oorporation required by the Colorado Nonprofit Corporation Act to be maintained in Colorado may be, but need not be, the same as the principal office if in Colorado, and the address of the registCJl'ed office may be changed from time to time by the board of directors or by the officers of the corporation. 05/11/94 CI'/.5i18 DN.70951.1 MAY-19-94 THU ,. '. -,~, \- ~ te 05/1\/94 CN-lRIR DN.7Il!ISU 9:1138 ARTICLE II. MEMBERS Section 2.1 No Members. The corporation shall have no rnernbcrs. P _ 1 e MAY-19-94 THU 9:138 P _ 1 1 (ltl <j. '" (It. " ~\ . " " ,- ~. ARTICLE m. BOARD OF nmECTORS Section 3.1 General Powers. The business and affairs of the corporation shall be managed by its board of directors, except as otherwise provided in the Colorado Nonprofit Corporation Act, the articles of incorporation or these bylaws. Section 3.2 Number. Election. Tenure and Qualifications. The number of directors of the corporation shall be (rem three te se"'eII, Il3 aetermille6 BY the beitf6 ef E1ifeel6l's frem lime 16 time. AllY aelioll af lfie !lew af E1ireel6l'S te illerea3e or deere8se tile RI:IRlber of direeters, "Nhelher eltpressly !ly resehnieR ar BY iRlflliee.liell t1uoogli lfie eleeti.ell of a4ditiellal. direetefS, &hal.l eeRstitule aR &lRellemeRt ae these ByllW.'5 effeeullg sttell ifteRlll!le er deer6llSell1 ~ed in tbe articwt incomoration. As ol"Qvid~ jn the a~es q.( iJ)coroo[iltion. at Jw1 one member of~irectors s~. at all times. be a current mc;m.ber of the citv council lUJJIe Citv of Asoen, COuo. and at least one other member of the boar~irectors sllal1 il.iU times. ~~me emDlovee otlhe City of Asnen. Colao. the City Council or't~~ ~anae:er of the City of Asnen shall have the rieht to aODOlnt tbe two above dcscri~~ ::~~~_o:v t~~e b~~~~ f!o~~:t:\heD~:O~~~e~re :r:ra~~~ ~~h1::na.n ;.~~~~:tr~ accordance wittuhe l!-rti~les of incorooration) shall be elected or reelected by the board of directors at each annual meeting, and each _director shall hold office until the next annuai meeting of the board of directors and thereafter until ~ director's successor shall have been elected and qualified, or until ~ director's earlier death, resignation or removal. Directors must be at least eighteen years old but need not be residents of Colorado. No person shall be elected a director of the corporation such person has reached the age of 18 years. Any director may be removed at any time, with or without cause, by a vote of three-fourths of the other directors then in office. Section 3.3 Vacancies. Any dircctor may resign at amy time by giving written notice to the president or to the secretary of the corporation. Such resignation shall take effect at the time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Any vacancy occurring in the board of directors 2f.the c;orooration (pt~er than anv director anoointed,by th~ ptv Council or the City Mana~er of t~e City of Asoen. Colorado. in accordance wilh the articles of incoroorationl may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum. A director elected to fill a vacancy shall be elected for the unexpired term of such director's predecessor in office. AllY direetel'Ship te be filled B)' feMell of aft iftcrease jll'lIle IlIlMer af E1ireeters 31talll3e EtlleEI by the afRrmative _Ie of a maj8fi~ af the E1ireeters tReA in aniee, ItIId a direel6r 5a ehasen shall held affies uRtil lfie nellt eleetion of E1ireetar-s ItIIEI thereafter IIRIiI !he direeter's &lIeee5sar shall R&'.'e ~eeR eleeted ilftEl E1l1aliHeEI, er IInlil~e 05/11/94 eN.S811 DN.1lP,l5J.\ 9:1139 P.. 1:2 MAY-19-94 THU tit E1ireetor's earlier death. fe9igRatioll OF remeval.. tit - Section 3.4 Rel!ular Meetings. A regular annual meeting of the board of directors shall be held during the month of _ at the time and place, either within or outside Colorado, dctermined by the board, for thc purpose of electing directors and officers and for the transaction of such other business as may come before the meeting. The board of directors may provide by resolution the time and place, either within or outside Colorado, for the holding of additional regular meetings. Section 3.S Snecial Meetinl!s. Special meetings of the board of directors may be called by or at the request of the president or any two directors. The person or persons authorized to call special meetings of the board of directors may fi" any place as the place, either within or outside Colorado, for holding any special meeting of the board called by them. Section 3.6 Notice. Notice of each meeting of the board of directors stating the place, day and hour of the meeting shall be given to each director at the director's business address at least five days prior thereto by the mailing of written notice by first class, cenified or registered mail, or at least two days prior thereto by personal delivery of written notice or by telephonic, telegraphic, telex or facsimile notice (and the method of notice need not be the same as to each director). If mailed, such notice shall be deemed to be given when dcposited in the United States mail, with postage thereon prepaid. If telegraphed, such notice shall be deemed to be given when the telegram is delivered to the telegraph company. If transmitted by telex or facsimile, such notice shall be deemed to be given when the transmission is completed. Any director may waive notice of any meeting before, at or after such meeting. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the e"press purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any meeting of the board of directors need be specified in the notice or waiver of notice of such meeting unless otherwise required by statute. Section 3.7 PresumDtion of Assen\. A director of the corporation who is present at a meeting of the board of directors at which action on any corporate mattcr is taken shall be presumed to have assented to the action taken unless such director's dissent shall be entered in the minutes of the meeting or unless the director shall file a written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action, Section 3.8 Quorum and Votinl!. A majority of the directors shall constitute a quorum for the transaction of business at any meeting of the board of directors, and the vote of a majority of the directors present in person at a meeting at which a quorum is prcscnt shall 05/11194 eN.SUR DN-70!lSl.1 MAY-19-94 THU "3 : 1113 P. 1:3 -- ~ .. e. , '.~. be the act of the board of directors, If less than a quorum is present at a meeting, a majority of the directors present may adjourn the meeting from time to time without further notice other than an announcement at the meeting, until a quorum shall be present. No director may vote or act by proxy at any meeting of directors. Section 3.9 Comoensation. Directors shall not receive compensation for their services as such, although the reasonable expenses of directors of attelldaOce at board meetings may be paid or reimbursed by the corporation. Directors shall not be disqualified to receive reasonable compensation for services rendered to or for the benefit of the corporation in any other capacity. . Section 3.10 Executive and Other Committees. By one or more resolutions adopted by a majority of the directors then in office, the board of directors may designate from among its members an executive committee and one or more other committees, each of which, to the extcnt provided in the resolution establishing such committee, shall have and may exercise all of the authority of thc board of directors, except as prohibited by statute. The delegation of authority to any committee shall not operate to relieve the board of directors or any member of the board from any responsibility imposed by law. Rules governing procedures for meetings of any committee of the board shall be as established by the board of directors, or in the absence thereof, by the committee itself. Section 3,11 Meetings by Telenhone. Members of the board of directors or any committee thereof may participate in a meeting of the board or l:ornmitlee by means of conference telephone or similar communications equipment by which all persons participating in the meeting can hear each other at the same time. Such participation shall constitute presence in person at the meeting. Section 3.12 Action Without a Meeting. Any action required or permitted to be taken at a meeting of the directors or any committee thereof may be taken without a meeting if a consent in writing, setting forth the action so taken, shaU be signed by all of the directors or committee members entitled to vote with respect to the subject matter thereof. Such consent (which may be signed in counterparts) shall have the same force and effect as a unanimous vote of the directors or committee members. 05111/94 CN.5RIR DN.70951.1 MAY-19-94 THU 9 : 1 1 P _ 14- lilt'. @ IV': '~ >lft \~ '. ~. ~ . ~., ARTICLE IV. OFFICERS AND AGENTS Section 4.1 Number and Oualifications, The elected officers of the corporation shall be a president, one or more vice-presidents, a secretary and a llreasurer. The board of directors may also appoint such other officers, assistant officers and agents, including an executive director, a controller, assistant secretaries and assistant treasurers, as it may consider necessary. One person may hold more than one office at a time, except that no person may simultaneously hold the offices of president and secretary. Officers need not be directors of the corporation. All officers must he at least eighteen years old. Section 4.2 Election and Term of Office. The elected officers of the corporation shall be elected by the board of directors at each regular annual meeting. If the election of officers shall not be held at such meeting, such election shall be held as soon as convenient thereafter. Each officer shall hold office until the officer's successor shall have been duly elected and shall have qualified, or until the officer's earlier death, resignation or removal. Section 4,3 Comoensation. The compensation of the officers, if any, shall be as fixed from time to time by the board of directors, and no officer shall be prevented from receiving a salary by reason of the fact that such officer is also a director of the corporation. Section 4.4 Removal. Any officer or agent may be removed by the board of directors whenever in its judgment the best interests of the corporation will be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. Election or appointment of an officer or agent shall not in itself create contract rights. Section 4.5 Vacancies. Any officer may resign at any time, subject to any rights or obligations under any existing contracts between the officer and the corporation, by giving written notice to the president or to the board of directors. An officer's resignation shall take effect at the time specified in such notice, and unless otherwillC specified therein, the acceptance of such resignation shall not be necessary to make it effective. A vacancy in any office, however occurring, may be filled by the board of directors for the unexpired portion of the term, Section 4.6 Authority and Duties of Officers. The officers of the corporation shall have the authority and shall exercise the powers and perform the duties specified below and as may be additionally specified by the president, the board of directors or these bylaws, except that in any event each officer shall exercise such powers and perform such duties as may be required by law. 05111/94 CN.,l&U DN-7<l9Sl.1 _I ..... MAY-19-94 THU 9 : 1 1 P _ 15 e" I \\\, "i{.... (a, ., .'., ~ "'"'-c (a) President. The president shall, subject to the direction and supervision of the board of directors, (i) be the chief executive officer of the corporation and have general and active control of its affairs and business and general supervision of its officers, agents and employees; (ii) preside at all meetings of the board of directors; (iii) see that ail orders and resolutions of the board of directors are carried into effect; and (iv) perform all other duties incident to the office of president and as from time to time may be assigned to the president by the board of directors. (b) Vice-Presidents. The vice-president or vice-presidents shall assist the president and shall perform such duties as rnay'be assigned to them by the president or by the board of directors. The vice-president (or if there is more than one, then the vice-president designated by the board of directors, or if there be no such designation, then the vice-presidents in order of their election) shall, at the request of the president, or in the president's absence or inability or rcfusalto act, perform the duties of the president and when so acting shall have all the powers of and be subject to aU the restrictions on the president. (c) Secretary. Thc secretary shall (i) keep the minutes of the proceedings of the board of directors and any committees of the board; (ii) see that all notices are duly given in accordance with the provisions of these bylaws or as required by law; (iii) be custodian of the corporate records and of the seal of the corporation; and (Iv) in gcneral, perform all duties incident to thc office of secretary and such other duties as from time to time may be assigned to the secretary by the president or by the board of directors. Assistant secretaries, if any, shall have the same duties and powers, subject to supervision by the secretary. (d) Treasurer. The treasurer shall (i) be the principal financial officer of the corporation and have the care and custody of all its funds, securities, evidences of indebtedness and other personal property and deposit the same in aC(;Qrdance with the instructions of the board of directors; (ii) receive and give receipts and acceptances for moneys paid in on aC(;Qunt of the corporation, and payout of the funds on.hand all bills, payrolls and other just debts of the corporation of whatever nature upon maturity; (iii) unless there is a controller, be the principal accounting officer of the corporation and as such prescribe and maintain the methods and systems of accounting to be followed, keep complete books and records of account, prepare and file all local, state and federal tax returns and related documents, prescribe and maintain an adequate system of internal audit, and prepare and furnish to the president and the board of directors statements of account showing the financial position of the corporation and the results of its operations; (iv) upon request of the board, make such rcports to it as. may be required at any time; and (v) perform all other duties incident to the office of treasurer and such other duties as from time to time may be assigned to the treasurer by the president orthc board of. directors, Assistant treasurers, if any, shall have the sarnc powers and duties, subject to supervision by the treasurer. 05/11/94 CN-S8IR DN.7095U MAY-19-94 THU 9:12 P. 16 ~, .. \It' \', ~.. . Section 4.1 SurelY Bonds. The board of directors may require any officer or agent of the corporation to execute to the corporation a bond in such sums and with such sureties as shall be satisfactory to the board, conditioned upon the faithful performance of such person's duties and for the restoration to the corporation of all books, papers, vouchers, money and other property of whatever kind in such person's possession or under such person's control belonging to the corporation. 0;S11I19O eN-5I18 DI'I-709S3.1 MAY-19-94 THU "3 : 1:3 P.. 17 ~ ~. (I e, \~\ ". . <. ARTICLE V. INDEMNIFICA nON Section 5.1 Definitions. For purposes of this Article V, the following terms shall have the meanings set forth below: (a) "Corooration" means the corporation and, in addition to the rcsulting or surviving corporation, any domestic or foreign predecessor entity of the corporation in a merger, consolidation or other transaction in which the predecessor's eltistence ceased upon consummation of the transaction. (b) "Expenses. means the actual and reasonable expenses, including attorneys' fees, incurred by a party in connection with a proceeding. . (c) "Liability" means the obligation to pay a judgment, settlement, penalty, fine (including an excise tax assessed with respect to a private foundation or an employee benefit plan) or expense incurred with respect to a proceediJ~g. (d) "Official capacity" when used with respect to a director of the corporation means the office of director in the corporation, and when used with respect to a person in a capacity other than as a director (even if such person is also a director) means the office in the corporation held by the officer or the employment relationship undertaken by the employee on behalf of the corporation in the performance of his or her duties in his or her capacity as such officer or employee, "Official capacity" does not include service for any other foreign or domestic COrporation or for any partnership, joint venture, trust, other enterprise or employee benefit plan when acting directly on behalf of such other corporation, partnership, joint venture, trust, enterprise or plan as a director, officer, employee, fiduciary or agent thereof. (e) "~" means Lil,any person who was, is, or is threatened to be made, a named defendant or respondent in a proceeding by reason of the fact that such person is or was a director, officer or employee of the corporation or an offi~jll or emDlovee wi\h the ~v of Asoen, and !iU,any person who, while a director, officer or employee of the corporation or an ofjicial or emDlovee with the City of Asoen, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary 01' agent of any other foreign or domestic corporation or of any partnership, joint venture, trust, other enterprise or employee benefit plan..J.l1Sl (Iii) the Citv of Asoen. A party shall be oonsidered to be serving an employee benefit plan at the corporation's request if such party's duties to the corporation also impose duties on or otherwise involve services by such party to tile plan or to participants in or beneficiaries of the plan, OSIlI/94 0<.5818 DN-109S1.1 MAY-19-94 THU 9 : 1::; P _ 18 fit (t) "Prnrp"tlimz" means any threatened, pending or completed action, suit or proceeding, or any appeal therein, whether civil, criminal, administrative, arbitrative or investigative (including an action by the corporation) and whether formal or informal. Section 5.2 Ril!ht to Indemnification. (a) Standards of Conduct. Except as provided in Section 5.2(d) below, the corporation shall indemnify any party to a proceeding against liability incurred in or as a result of the proceeding if (i) such party conducted himself or herself in good faith, (ii) such party reasonably believed (A) in the case of a direcior acting in his or her official capacity, that his or her conduct was in the corporation's best interests, or (B) in all other cases, that such party's conduct was at least not opposed to the corporation's best interests, and (iii) in the case of any criminal proceeding, such party had no reasonable cause to believe his or her conduct was unlawful. For purposes of determining the applicable standard of conduct under this Section 5.2, any patty acting in his or her official capacity who is also a director of the corporation shall be held to the standard of conduct set forth in Section 5.2(a)(ii)(A), even if such party is sued solely in a capacity other than as such director. e (b) Employee Benefit Plans. A party's conduct with respect to an employee benefit plan for a purpose such party reasonably believed to be in the interests of the panicipants in or beneficiaries of the plan is .conduct that satisfies the requirements of Section 5.2(a)(ii)(B). A party's conduct withrespect.to an employee benefit plan for a purpose that such party did not reasonably believe to be in the interests of the participants in or beneficiaries of the plan shall be deemed not to satisfy the requirements of Section 5, 2(a)(i). (c) Settlement. The termination of any proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, is not of itself determinative that the party did not meet the applicable standard of conduct set forth in Section S.2(a). (d) Indemnification Prohibited. Except as hereinafter set forth in. this Section S.2(d), the corporation may not indemnify a party under this Section 5.2 either (i) in connection with a proceeding by the corporation in which the party is or has been adjudged liable for gross negligence or willful misconduct in the performance of the party's duty to the corporation, or (ii) in connection with any proceeding charging improper personal benefit to the party, whether or not involving action in the party's official capacity, in which the party was adjudged liable on the basis that personal benefit was improperly received by the party (even if the corporation was not thereby damaged). Notwithstanding the foregoing, the corporation shall indemnify any such party if and to the extent required by the court conducting the proceeding, or any other court of competent jurisdiction to which the party has applied, if it is determined by such court, upon application by the party, that despite the adjudication of liability in the circumstances in clauses (i) and (ii) of this Section S.2(d) or whether or not the party met the - 05/11/94 CN.S8IR DN.70951.1 MAY-19-94 THU '5' : 14 P. 1 '5' fA, ~\- (~, -. ~."" 10. \~ applicable standard of conduct set forth in Section 5.2(a), and il1l view of all relevant circumstances, the party is fairly and reasonably entitled to indemnification for such expenses as the court deems proper in accordance with the Colorado Nonprofit Corporation Code. (e) Claims bv COQ)Oration. Indemnification permitted under this Section 5.2 in connection with a proceeding by tile corporation shall be limited to expenses incurred in coMection with the proceeding. (f) Combined prn<'.....tlimzs. If any claim made by the corporation against a party is joined with any other claim against'such party In a single proceeding, the claim by tile corporation (and all e~penses related thereto) shall nevertheless be deemed the subject of a separate and distinct proceeding for purposes of this Article. Section 5.3 Prior Authorization Reauired. Any indemnification under Section 5.2 (unless ordered by a court) shall be made by the corporation only if authorized in the specific case after a determination has been made that the party is eligible for indemnification . in the circumstances because the party has met the applicable standard of conduct set forth in Section 5.2(a) and after an evaluation has been made as to the reasonableness of the expenses. Any such determination, evaluation and authorization shall be made by the board of directors by a majority vote of a quorum of such board, which quorum shall consist of directors not parties to the subject proceeding, or by such other. person or body as permitted by law. Section 5.4 Success on Merits or Otherwise. Notwithstanding any other proVision of this Article V, the corporation shall indemnify a party to the extent such party has been successful, on the merits or otherwise, including without limitation, dismissal without prejudice or settlement without admission of Iiabilily, in defense of any proceeding to which the party was a party against expenses incurred by such party in connection therewith, Section S,S Advancement of Exoenses. The corporation shall pay for or reimburse the expenses, or a portion thereof, incurred by a party in advance of the final disposition of the proceeding if; (a) the party furnishes tile corporation a written affirmation of such party's good-faith belief that he or she has met the standard of conduct described in Section 5.2(a)(i); (b) the party furnishes the corporation a written undertaking, executed personally or on behalf of such party, to repay the.advance if it is ultimately determined that the party did not meet such standard of conduct; and (c) authorization of payment ,and a determination tIlat the facts then known to those making the determination would not preclude indemnification under this Article have been made in the manner provided in Section 5.3. The undertaking required by clause (b) must be an unlimited general obligation of the party, but need not be secured and may be accepted without reference to financial abilily to make repayment. Section 5.6 Pavment Prnr.....ures. The corporation shall promptly act upon any request for indemnification, which request must be in writing and accompanied by the order of 05111/94 CN'.5SI8 DN.7095l.1 MAY-19-94 THU ~e ~ \. - 9: 15 P.:28 court or other reasonably satisfactory evidence documenting disposition of the proceeding in the case of indemnification under Section 5.4 and by the written affirmation and undertaking to repay as required by Section S.S in the case of indemnification under such Section. The right to indemnification and advances granted by this Article shall be enforceable in any court of competent jurisdiction if the corporation denies the claim, in whole or in part, or if no disposition of such claim is made within ninety days after written request for indemnification is made. A party's expenses incurred in connection with successfully ,establishing such party's right to indemnification, in whole or in part, in any such proceeding shall iUso be paid by the corporation. Section S. 7 Insurance. By action of the board of directors, notwithstanding any interest of the directors in such action, the corporation may purchase and maintain insurance in such amounts as the board of directors deems appropriate to protect itself and any person who is or was a director, officer, employee, fiduciary or agent of the corporation, Of who, white a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of any other foreign or domestic corporation or of any partnership, joint venture, trust, other enterprise or employee benefit plan against any liability asserted against or incurred by such person in any such capacity or arising out of such person's status as such, whether or not the corporation would have the power to indemnify such person against such liability under applicable provisions of law or this Article. Any such insurance may be procured from any insurance company designated by the board of directors, whether such insurance company is formed under the laws of Colorado or any other jurisdiction, including any insurance company in which the corporation has an equity or any other interest, through stock ownership or otherwise. The corporation may create a trust fund, grant a security interest or use other means (including, without limitation, a letter of credit) to ensure the payment of such sums as may become necessary to effect indemnification as provided herein. In addition to tIWorel!oinl!. the corooration. at a.1lt.imes after the initial commencement of any D~ysical construction or oneration or te~tinS! of any facilities. s~tain and maintain comnrehensive 2eneralliaWlitv insurance. ,havinl! coveOll!e ill t~e alJlQ4pt of at least one million d,Qllar~. and~~rs' cornoensation in~uf\nce. SuclJ..J2sllicies sh..all be noncance\i2le wijhQut Drior written nouce t9 the Citv of Astle". The clIVor Astle" sbil1..be an additional named insur~es of insurance i!1SJ eviqence o~ covera2'e. in a tom acceDtable to the City A sh~1.-.be nrovide4J.gJJ1e City W Asnen. Section 5.8 Ril!ht to Imoose Conditions to Indemnification. The corporation shall have the right to impose, as conditions to any indemnification provided or permitted in this Article, such reasonable requirements and conditions as may appear appropriate to the board of directors in each specific case and circumstances, including but not limited to anyone or more of the foltowing: (a) that any counsel representing the party to be indemnified in connection with the defense or settlement of any proceeding shalt be counsel mutually agreeable to the party and to the corporation; (b) that the corporation shall have the right, at its option, to assume and 05111/94 CN-Slla DN-7Il!IS3.1 MAY-19-94 THU i~. 1M ~:" '(~,. 41._ ~\ -'G.l..... I. ~. 9:16 P. 21 control the defense or settlement of any claim or proceeding made, initiated or threatened against the party to be indemnified; and (c) that the corporation shaH be subrogated, to the extent of any payments made by way of indemnification, to all of the indemnified party's right of r~very, and that the party to be indemilified shall execute all writings and do everything necessary to assure such rights of subrogation to the corporation. . . . . . . an I indemnitjcation o~ ~rsons sbilLbe uncond~tiona11 Section 5.9 Other Rights and Remedies. Except as limited by law,the indemnification provided by this Article shall be in" addition to any ot1l1er rights which a party may have or hereafter acquire under any law, provision of the articles of incorporation, any other or further provision of these bylaws, vote of the board of directors, agreement, or otherwise. Section 5.10 Applicability: Effect. The indemnification provided in this Article shall be applicable to acts or omissions that occurred prior to the adoption of this Article, shall continue as to any party entitled to indemnification under this Article who has ceased to be a director, officer or employee of the corporation or, at the request of the corporation, was serving as and has since ceased to be a director, officer, partner, trustee, employee, fiduciary or agent of any other domestic or foreign corporation, or of any partnership, joint venture, trust, other enterprise or employee benefit plan, and shall inure to the benefit of the estate and personal representatives of each such person. The repeal or amendment of this Article or of any Section or provision hereof that would have the effect of limiting, qualifying or restricting any ofthe powers or rights of indemnification provided or permitted in this Article shall not, solely by reason of such repeal or amendment, eliminate, restrict or otherwise affect the right or power of the corporation to indemnify any person, or affect any right of indemnification of such person, with respect to any acts or omissions that occurred prior to such repeal or amendment. All rights to indemnification under this Article shall be deemed to be provided by a contract between the corporation and each party covered hereby. Section 5,11 Indemnification of A2ents, The corporation shall have the right, but shall not be obligated, to indemnify any agent of the corporation not otherwise covered by this Article to the fullest extent permissible by the laws of Colorado. Unless otherwise provided in any separate indemnification arrangement, any such indemnification shall be made only as authorized in the specific case in the manner provided in Section 5.3. Section 5.12 Savings Clause: Limitation. If this Article or any Section or provision hereof shall be invalidated by any court on any ground, then the corporation shall nevertheless indemnify each party otherwise entitled to indemnification hereunder to the fullest extent permitted by law or any applicable provision of this Article that shall not have been invalidated. Notwithstanding any other provision of these bylaws, the corporation shall neither indemnify any person nor purchase any insurance in any manner or to any extent that would 05/11/94 CN..5811 DN-70951.1 - - MAY-19'-94 THU ~a ~. -.," ~.. "~ - ! ~.' "'~.... 9' : 1"7 P.22 jeopardize or be inconsistent with the qualification of the corporation as an organization described in section 501(c)(3) of the Internal Revenue Code, or that would result in the imposition of any liability under section 4941 of the Internal Revenue Code. 05/11/94 eN.SlII DN-7Il!I53.1 MAY-19-94 THU (a ., liie" \].. '" Ie,.. -,> ''Q'I 9:17 P_23 ARTICLE VI. MISCELLANEOUS Section 6,1 Account Books. Minutes. Etc. The corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its board of directors and committees. All books and records of the corporation may be inspected by any director, or that director's authorized agent or attorney, for any proper purpose at any reasonable time. Section 6.2 Fiscal Year. The fiscal year of the lcorporation shall be as established by the board of directors. Section 6.3 Conveyan<;es and Encumbrances. Property of the corporation may be assigned, conveyed or encumbered by such officers of the corporation as may be authorized to do so by the board of directQrs, and such authorized persons shall have power to execute and deliver any and all instruments of assignment, conveyance and encumbrance; however, the saie, exchange, lease or other disposition of all or substantially all of the propeny and assets of the corporation shall be authorized only in the manner prescribed by applicable statute. Section 6.4 Desilmated ContributioO~. The corporation may accept any designated contribution, grant, bequest or devise consistent with its general tax-exempt purposes, as set forth in the articles of incorporation. As so limited, donor-designated contributions will be accepted for special funds, purposes or uses, and such designations generally will be honored. However, the corporation shall reserve all right, title and interest in and to and control of such contributions, as well as full discretion as to the ultimate expenditure lOr distribution thereof in connection with any such special fund, purpose or use. Further, the corporation shall acquire and retain sufficient control over all donated funds (including designated contributions) to assure that such funds will be used to carry out the corporation's tax-exempt purposes. Section 6.5 Conflicts of Interest. If any person who fts a director or officer of the corporation is aware that the corporation is about to enter into any business transaction directly or indirectly with such person, any member of that person's family, or any entity in which that person has any legal, equitable or fiduciary interest or position, including without limitation as a director, officer, shareholder, partner, beneficiary or trustee, such person shall (a) immediately inform those charged with approving the transaction on behalf of the corporation of such person's interest or position, (b) aid the persons charged with making the decision by disclosing any material facts within such person's knowledge that bear on the advisability of such transaction from the standpoint of the Corporation, and (c) not be entitled to vote on the decision to enter into such transaction. Section 6.6 Loans to Directors and Officers Prohibited. No loans shall be 05/11/94 CN-5RIR DN.?095l.l MAY-19-94 THU 9 : 18 P.24 ift.... '\\ ,.,", ~e ~... . made by the corporation to any of its directors or officers. Any director or officer who assents to or participates in the making of any such loan shall be liable to. the corporntion for the amount of such loan until it is repaid. Section 6.7 References to Internal Revenue Code. All references in these bylaws to provisions of the Internal Revenue Code are to the provisions of the Internal Revenue Code of 1986, as amended, and to the corresponding provisions of any subsequent federal tax laws. Section 6.8 Amendments. The power to alter, amend or repeal these bylaws and adopt new bylaws shall be vested in the board of directors, Section 6.9 Severability. The invalidity of any provision of these bylaws shall not affect the other provisions hereof, and in such event these bylaws shall be construed in all respects as if such invalid provision were omitted. (END) 05/11/94 CN-S8IR DN.709S3.l - (e f& ,., ( , .. .. .. .. .. .. .. 111I .. .. .. .. .. . .. .. .. .. .. .. .. .. .. _ .. .. .. .. _ .. .. 11I1 BIll 11III 1\11:... - ..... 548 Race Street Aspen, Mayor and Council Members City of Aspen 131 S. Galena St. Aspen, Co. 81611 Colorado 81611 May 9. 303 925-6431 1994 Re: Resolution establishing a 6320 Corporation for the purpose(s) of creating a street railway system within the city limits. Dear Mayor and Council Members, Attached for your and staffs review are L.he following joc-ument,g with a brief description of their purpose. ResolutioIl # api,roving the organization or the ASF'8~ o~ree~ Railway Corroratic:ll: This document is your formal 3E'prc1val of the establishmerlt ,)f the organization whose purpose will be to crea t~e capital improvements necessary to begin a street railway transportation system and to obtain the necessary approvals as appropriat,e. Articl~?::-; on the Board operate. OI Incorporation: This document spells out who will be of directors and the basic criteria under which they Bylaws: This is the document that establishes how the newly created board shall function. Organizational Consent of the Directors: is the first document that the newly appointed Directors of the Aspen Street Railway Corp. will enact establishing the basic operating and organizational criteria under which the Corporation will act. The ad-hoc committee has recommended the following people be appointed as Directors of the Corporation. Mr. Jon Busch; 543 Race Street, Aspen, Co. 81611 Mr. William Dinsmoor, 201 E. Main St. 1 Aspen, Co. Mr. Roger Hunt. 501 W. Hallam. Aspen, Co. Mr. William Efting, 131 S. Galena, Aspen 00. An Aspen City Council Person 925-6431 925-6446 925-4414 920-5212 We will be at the Council meeting in order to answer that you may have about any of the docum any questions Si -. ~. ~ ~. ~, 'II' ( ORGANIZATIONAL CONSENT OF DIRECTORS OF ASPEN STREET RAILWAY COMPANY Pursuant to Section 7-23-110 of the Colorado Revised Statutes, the undersigned, being all of the directors of Aspen Street Railway Company (the "corporation"), hereby unanimously consent to, vote in favor of and adopt the following resolutions: I RESOLVED that the certificate of incorporation of the corporation issued by the Colorado Secretary of State be placed in the minute book, together with the articles of incorporation attached thereto. II RESOLVED that the bylaws attached to this consent of directors are adopted as the bylaws of the corporation, and that a copy of such bylaws be placed in the corporation's minute book. III RESOLVED that the seal of this corporation be circular in form and contain the name of the corporation, the year of its organization and the words "Seal" and "Colorado," and that an impression of said seal be made on the margin of this page. IV RESOLVED that the officers of the corporation, if they deem such action appropriate, are authorized to apply to the Internal Revenue Service for recognition of the corporation as a tax exempt organization and to execute and deliver all such applications, certificates, powers of attorney and other instruments and perform all such 05/02/94 CN-99999 DN-70955.1 ." 'w I"., ~. 0i< '. ~I'\ " ~, '\'''' ~- --- other acts as any of them may deem necessary or appropriate to obtain such recognition. v RESOLVED that the is designated a depository of the corporation, that the customary forms of resolution of said bank conferring banking authority upon certain of the corporation's officers are hereby adopted and that a copy of such resolutions be placed in the corporation's minute book. VI RESOLVED that the fiscal year of the corporation shall commence on January 1 and end on December 31 of each year. VII RESOLVED that for the purpose of authorizing the corporation to conduct its affairs in any state, territory or dependency of the United States or any foreign country in which it is necessary or expedient, in the judgment of the officers of the corporation, for the corporation to cQnduct affairs, the appropriate officers of the corporation are authorized to appoint and substitute all necessary agents or attorneys for service of process, to designate and change the location of all necessary statutory offices and to make and file all necessary certificates, reports, powers of attorney and other instruments as may be required by the laws of such state, territory, dependency or country to authorize the corporation to conduct affairs therein, and whenever it is expedient, in the judgment of the officers of the corporation, for the corporation to cease conducting affairs therein and withdraw therefrom, to revoke any appointment of agent or attorney for service of process, and to file such certificates, reports, revocations of appointment and surrenders of authority as may be necessary to terminate the authority of the corporation to conduct affairs in such state, territory, dependency or country. VIII RESOLVED that all actions taken on behalf of the corporation prior to the date of this consent of directors by any of the persons elected herein as officers are approved and ratified in all respects. 05/02/94 CN.99999 DN-70955.! '~.~, ., ...~'., .. (. IX RESOLVED that the following individuals are elected officiers of the corporation as indicated below: President Vice President Vice President Secretary Treasurer EXECUTED this _ day of ,19_0 05102/94 CN.99999 DN-70955.1