AMENDMENDED AND RESTATED

 

                            ARTICLES OF INCORPORATION

                                       OF

                          COSTCO WHOLESALE CORPORATION

 

 

                                    ARTICLE I

 

     The name of this corporation is:

 

                          COSTCO WHOLESALE CORPORATION

 

                                   ARTICLE II

 

     2.1 Classes.  The total number of shares of all classes of stock which this

corporation  shall  have  authority  to  issue is one  billion  (1,000,000,000),

consisting of:

 

     (a) Nine hundred  million  (900,000,000)  shares of common  stock,  the par

value of each of which is $0.01 (the "Common Stock").

 

     (b) One hundred million  (100,000,000)  shares of preferred  stock, the par

value of each of which is $0.01 (the "Preferred Stock").

 

     2.2 Preferred Stock.  The  preferences,  limitations and relative rights of

the Preferred  Stock are  undesignated.  The board of directors is authorized to

designate one or more series within the Preferred Stock, and the designation and

number of shares  within  each  series,  and shall  determine  the  preferences,

limitations,  and relative  rights of any shares of Preferred  Stock,  or of any

series of  Preferred  Stock,  before  issuance  of any  shares of that  class or

series. The board of directors is authorized to amend these Articles as provided

in RCW 23B.06.020 to effect the designation of rights of any series of Preferred

Stock.

 

<PAGE>

 

                                   ARTICLE III

 

     3.1 No Preemptive  Rights.  The  shareholders of this  corporation  have no

preemptive rights to acquire additional shares of this corporation.

 

     3.2 No Cumulative  Voting.  The right to cumulate  votes in the election of

directors shall not exist with respect to shares of stock of this corporation.

 

     3.3 Special Meetings of Shareholders.  The shareholders of this corporation

shall  have no right  to call a  special  meeting  of the  shareholders  of this

corporation for any purpose or purposes and special  meetings of shareholders of

this  corporation  may only be called by a majority of the board of directors or

the Chairman,  the  President,  any Executive Vice President or the Secretary of

this  corporation  or  shareholders  owning  aggregate at least 10% of all votes

entitled  to be cast on any issue  proposed  to be  considered  at the  proposed

special meeting.

 

                                   ARTICLE IV

 

     The number of directors which shall constitute the whole board of directors

of this  corporation  shall be fixed by, or in the manner provided in the bylaws

of this corporation, as the same may be amended from time to time.

 

                                    ARTICLE V

 

     The board of directors shall be divided into three classes:  Class I, Class

II, and Class III.  Such classes shall be as nearly equal in number of directors

as  possible.  Each  director  shall serve for a term ending at the third annual

shareholders'  meeting  following the annual  meeting at which such director was

elected.  The  directors,  the class to which they are elected,  and the year in

which their term expires, are as follows:

 

                  Director          Class            Year in Which Term Expires

         ----------------------------------------------------------------------

         James D. Sinegal              I                   2000

         Jeffrey H. Brotman            I                   2000

         Richard A. Galanti            I                   2000

         Hamilton E. James             II                  2001

         Frederick O. Paulsell, Jr.    II                  2001

         Jill A. Ruckelshaus           II                  2001

         Benjamin S. Carson            II                  2001

         Richard M. Libenson           III                 2002

         John W. Meisenbach            III                 2002

         Charles T. Munger             III                 2002

         Richard D. DiCerchio          III                 2002

 

<PAGE>

 

     At each annual election,  the directors chosen to succeed those whose terms

then expire shall be identified as being of the same class as the directors they

succeed,  unless, by reason of any intervening  changes in the authorized number

of directors,  the board of directors shall designate one or more  directorships

whose terms then expire as  directorships  of another class in order more nearly

to achieve equality in the number of directors among the classes. When the board

of directors fills a vacancy resulting from the death, resignation or removal of

a director,  the director chosen to fill that vacancy shall be of the same class

as the director he succeeds.

 

     Notwithstanding any of the foregoing provisions of Article V, in all cases,

including upon any change in the authorized  number of directors,  each director

then continuing to serve as such will nevertheless continue as a director of the

class of which he is a member,  until the  expiration of his current term or his

earlier death,  resignation or removal. Any vacancy to be filled by reason of an

increase in the number of directors  may be filled by the board of directors for

a term of office  continuing  only until the next  election of  directors by the

shareholders.

 

     Notwithstanding  anything contained in this Article V to the contrary,  the

classification  of  directors  as provided  in this  Article V may be altered or

eliminated  only by an amendment to this Article  approved by  two-thirds of the

votes  entitled  to be  cast  by  each  voting  group  entitled  to vote on such

amendment.

 

                                   ARTICLE VI

 

     A  director  of this  corporation  shall  not be  personally  liable to the

corporation or its  shareholders for monetary damages for conduct as a director,

except for  liability of the  director  (i) for acts or  omissions  that involve

intentional  misconduct  by the  director or a knowing  violation  of law by the

director,  (ii) for conduct violating RCW 23B.08.310 of the Washington  Business

Corporation  Act,  or (iii) for any  transaction  from which the  director  will

personally  receive  a benefit  in  money,  property  or  services  to which the

director is not legally entitled.  If the Washington Business Corporation Act is

amended in the future to  authorize  corporate  action  further  eliminating  or

limiting the personal  liability of directors,  then the liability of a director

of this corporation  shall be eliminated or limited to the full extent permitted

by  the  Washington  Business  Corporation  Act,  as  so  amended,  without  any

requirement of further action by the shareholders.

 

                                   ARTICLE VII

 

     The corporation shall indemnify any individual made a party to a proceeding

because  that  individual  is or was a  director  of the  corporation  and shall

advance or reimburse  the  reasonable  expenses  incurred by such  individual in

advance  of  final  disposition  of  the

 

<PAGE>

 

proceeding,  without  regard  to  the  limitations  in  RCW  23B.08.510  through

23B.08.550 of the Washington  Business  Corporation Act, or any other limitation

which may hereafter be enacted to the extent such  limitation may be disregarded

if authorized by the Articles of Incorporation, to the full extent and under all

circumstances permitted by applicable law.

 

     Any repeal or  modification  of this  Article by the  shareholders  of this

corporation shall not adversely affect any right of any individual who is or was

a  director  of the  corporation  which  existed  at the time of such  repeal or

modification.

 

                                  ARTICLE VIII

 

     Subject to the rights of  holders  of any  series of  Preferred  Stock then

outstanding, any director, or the entire board of directors, may be removed from

office  only for  cause and only by the  affirmative  vote of the  holders  of a

majority of the voting power of all shares of this corporation  entitled to vote

for the  election of  directors.  As used  herein,  "for cause" means either (i)

conviction of a felony by a court of competent  jurisdiction and such conviction

is no longer subject to direct appeal or (ii)  adjudication for gross negligence

or dishonest conduct in the performance of a director's duty to this corporation

by a court of competent  jurisdiction and such adjudication is no longer subject

to direct appeal.  Notwithstanding anything to the contrary, this Article may be

altered or eliminated  only by amendment to this Article  approved by two-thirds

of the votes  entitled to be cast by each voting group  entitled to vote on such

amendment.

 

                                   ARTICLE IX

 

     Amendment of the articles of incorporation, approval of a plan of merger or

share exchange,  authorization of the sale, lease, exchange or other disposition

of all, or substantially  all of the corporation's  property,  otherwise than in

the usual and regular course of business,  and  authorization of the dissolution

of the  corporation,  shall be approved by each  voting  group  entitled to vote

thereon by a simple majority of all the votes entitled to be cast by that voting

group.

 

                                    ARTICLE X

 

     The street address of the registered office of this corporation is:

 

                           999 Lake Drive

                           Issaquah, Washington  98027

 

and the name of its registered agent at that address is:

 

                           Patrick J. Callans

 

<PAGE>

 

EXECUTED this 27th day of August, 1999.

 

 

                            /s/    Joel Benoliel

                            By:    Joel Benoliel

                            Title: Corporate Secretary

 

 

AMENDMENTS TO ARTICLE VIII OF THE ARTICLES OF INCORPORATION

 

Set forth below is the text of Article VIII of our Articles of Incorporation as it would be amended by Proposals 5 (a) and 5 (b). In both cases deletions and additions to the current Article VIII of our Articles of Incorporation are indicated by strikeouts and by underlining, respectively:

 

Proposal 5 (a): Reduce Voting Standard for Removal of Directors

 

Subject to the rights of holders of any series of Preferred Stock then outstanding, any or every director, or the entire board of directors, may be removed from office only for cause and only by the affirmative vote of the holders of a majority of the voting power of all shares of this corporation entitled to vote for the election of directors if the number of votes cast to remove the director exceeds the number of votes cast not to remove the director. As used herein, “for cause” means either (i) conviction of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal or (ii) adjudication for gross negligence or dishonest conduct in the performance of a director’s duty to this corporation by a court of competent jurisdiction and such adjudication is no longer subject to direct appeal. Notwithstanding anything to the contrary, this Article may be  altered or eliminated only by amendment to this Article approved by two-thirds of the votes entitled to be cast by each voting group entitled to vote on such amendment.

 

Proposal 5(b): Reduce Voting Standard for Future Amendment of Article VIII of the Articles of Incorporation.

Subject to the rights of holders of any series of Preferred Stock then outstanding, any director, or the entire board of directors, may be removed from office only for cause and only by the affirmative vote of the holders of a majority of the voting power of all shares of this corporation entitled to vote for the election of directors. As used herein, “for cause” means either (i) conviction of a felony by a court of competent jurisdiction and such conviction is no longer subject to direct appeal or (ii) adjudication for gross negligence or dishonest conduct in the performance of a director’s duty to this corporation by a court of competent jurisdiction and such adjudication is no longer subject to direct appeal. Notwithstanding anything to the contrary, this Article may be altered or eliminated only by amendment to this Article approved by two-thirds of the votes entitled to be cast by each voting group entitled to vote on such amendment.

 

[As Filed: 12-19-2014]

[As Approved: 01-29-2015]