The Winslow mail., 1925-01-16

tion without the vote or consent of the
holders of at least a majority in amount
Of the outstanding first preferred
stock. No notes or funded debt ma
turing later than one year from the
date Of issue shall be created by the
corporation without the vote or con-
sent of the holders of sixty-six and
two-thirds per cent (66-2 I3G6) in
amount of outstanding first preferred
stock; provided, however, that moth
ing herein shall be construed to pre-
clude the purchase of properties sub
ject to existing liens or the creation
OF purchase money mortgages or pur-
chase money liens on properties here
after acquired. The corporation shall
not create any shares of stock hav-
ing priority over or parity with the
first preferred stock, either as to divi-
dends or assets. nor guarantee obli-
cations, stocks or dividends of any
subsidiary or other corporation, with
out the consent or vote of the hold
ers of seventy-five per cent (7506) in
amount of the outstanding first pre-
ferred stock; nor shall these Articles
of Incorporation be amended so as
to change the specific terms of the
first preferred stock hereby created
without the unanimous vote or con-
sent of the holders of the outstanding
first preferred stock.
(4) The corporation shall annual
ly, beginning with the fiscal year fol-
lowing any issue of first preferred
stock, set aside as sinking fund
for the retirement and cancellation
Nf hn frc4 ,1rnf0rrnd of Tho
surplus profits arising from the busi-
ness of the corporation and remaining
after the payment of dividends on the
first preferred stock, sum sufficient
to retire in one of the methods here
matter provided an amount of first
preferred stock equal to five per cent
(50) of the largest amount of first
preferred stock at any time outstand
ing during the year, provided that in
no event shall the sum so set aside
fall below such sum as may be neces-
sary to retire first preferred stock of
the par value of One Hundred Fifty
Thousand Dollars ($150,OO0). Except
that by reason of the fact that ]. C.
Penney Company, Utah corporation,
has retired Twenty Three Thousand
Seven Hundred Dollars ($23,700) par
value preferred stock in excess of it's
annual requirements under the pro-
visions of the Articles of Incorpora-
tion of said Utah corporation, the
sum SO set aside in the year 1925
shall not fall below such sum as may
be necessary to retire first preferred
stock of this corporation of the par
value of One Hundred and Twenty
Six Thousand Three Hundred Dollars
($126,300) If the sum set aside in
any year shall exceed the annual
amount hereby required the excess
may be deducted from the sum to be
set aside in a succeeding year. All
so set aside as sinking fund
shall be applied as follows:
(a) At the option of the cor
poration to purchase during the
year in the open market at the
best prices obtainable, but not in
excess of One Hundred Five Dol
lars ($105) a share and accumu-
lated dividends to the date of pur-
chase, first preferred stock of the
corporation to such extent as the
sum in the sinking fund shall per-
NIT.
(b) The balance, if any, there
after remaining in the sinking
fund (unless such balance be less
than Five Thousand Dollars ($5,-
000), in which case the said sum
so remaining may be carried over
and added to the sum required to
be set aside in the next succeed
ing year,, shall be applied in such
manner and by such method as
the Board of Directors may de-
termine during the first quarter
of the next succeeding year to the
redemption of first preferred stock
upon sixty (60) days notice by
mail to the holders of record of
the first preferred stock to be re-
deemed, at One Hundred Five Dol
lars ($105) per share and an
amount equal to accumulated divi-
dends to the date of redemption.
Any shares of first preferred stock
purchased by the corporation or call
ed for redemption shall not be re-
issued or resold and shall be can
celled.
Article VI
CLASSIFIED COMMON STOCK =
Cd The classified common stock of
this corporation shall be divided into
classes; each class shall be designat-
ed by a distinct number and by
namc indicating the locality of the
strre, to establish, operate or main
tain which, the consideration receiv-
ed for the issue of such stock shall
be used. In the event of a classi-
fed stock dividend based on the sur
plus of store being converted into
capital for the use of one or more
stores, such capital shall be deemed
the consideration received" for such
issuance of stock within the meaning
of this paragraph.
(2) The holder of each class of
classified common stock shall be en-
titled (subject to the rights of the
holders of first preferred stock and
in preference to the holders of class
A preferred stock, and of all other
stock, whether classified or
to have credited each
war RI thn hook UaIJo Of thpir oh roS