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BYLAWS
OF
INETECOMMERCE.COM, INC.
A CALIFORNIA CORPORATION
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TABLE OF CONTENTS
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ARTICLE I OFFICES...........................................................1
Section 1. PRINCIPAL OFFICE................................................1
Section 2. OTHER OFFICES...................................................1
ARTICLE II DIRECTORS - MANAGEMENT...........................................1
Section 1. POWERS, STANDARD OF CARE........................................1
A. POWERS..................................................................1
B. STANDARD OF CARE; LIABILITY.............................................1
C. EXCEPTION FOR CLOSE CORPORATION.........................................2
Section 2. NUMBER AND QUALIFICATION OF DIRECTORS...........................2
Section 3. ELECTION AND TERM OF OFFICE OF DIRECTORS........................2
Section 4. VACANCIES.......................................................2
Section 5. REMOVAL OF DIRECTORS............................................3
Section 6. PLACE OF MEETINGS...............................................3
Section 7. ANNUAL MEETINGS.................................................3
Section 8. OTHER REGULAR MEETINGS..........................................4
Section 9. SPECIAL MEETINGS/NOTICES........................................4
Section 10. WAIVER OF NOTICE................................................4
Section 11. QUORUMS.........................................................4
Section 12. ADJOURNMENT.....................................................5
Section 13. NOTICE OF ADJOURNMENT...........................................5
Section 14. BOARD OF DIRECTORS PROVIDED BY ARTICLES OR BYLAWS...............5
Section 15. DIRECTORS ACTION BY UNANIMOUS WRITTEN CONSENT...................5
Section 16. COMPENSATION OF DIRECTORS.......................................5
Section 17. COMMITTEES......................................................5
Section 18. MEETINGS AND ACTION OF COMMITTEES...............................5
Section 19. ADVISORY DIRECTORS..............................................6
ARTICLE III OFFICERS........................................................6
Section 1. OFFICERS........................................................6
Section 2. ELECTION OF OFFICERS............................................6
Section 3. SUBORDINATE OFFICERS, ETC.......................................6
Section 4. REMOVAL AND RESIGNATION OF OFFICERS.............................6
Section 5. VACANCIES.......................................................6
Section 6. CHAIRMAN OF THE BOARD...........................................7
Section 7. PRESIDENT AND CHIEF EXECUTIVE OFFICER...........................7
Section 8. VICE PRESIDENT..................................................7
Section 9. SECRETARY.......................................................7
Section 10. CHIEF FINANCIAL OFFICER.........................................8
ARTICLE IV SHAREHOLDERS' MEETINGS...........................................8
Section 1. PLACE OF MEETINGS...............................................8
Section 2. ANNUAL MEETING..................................................8
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Section 3. SPECIAL MEETINGS................................................8
Section 4. NOTICE OF MEETINGS - REPORTS....................................9
Section 5. QUORUM.........................................................10
Section 6. ADJOURNED MEETING AND NOTICE THEREOF...........................10
Section 7. WAIVER OR CONSENT BY ABSENT SHAREHOLDERS.......................10
Section 8. MAINTENANCE AND INSPECTION OF BYLAWS...........................11
Section 9. ANNUAL REPORT TO SHAREHOLDERS..................................11
Section 10. FINANCIAL STATEMENTS...........................................11
Section 11. ANNUAL STATEMENT OF GENERAL INFORMATION........................12
ARTICLE IX AMENDMENTS TO BYLAWS............................................12
Section 1. AMENDMENT BY SHAREHOLDERS......................................12
Section 2. AMENDMENT BY DIRECTORS.........................................12
Section 3. RECORD OF AMENDMENTS...........................................12
ARTICLE X MISCELLANEOUS....................................................13
Section 1. SHAREHOLDERS' AGREEMENTS.......................................13
Section 2. EFFECT OF SHAREHOLDERS' AGREEMENTS.............................13
Section 3. SUBSIDIARY CORPORATIONS........................................13
Section 4. ACCOUNTING YEAR................................................13
Section 5. FORM...........................................................13
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BYLAWS
OF
INETECOMMERCE.COM, INC.
A CALIFORNIA CORPORATION
ARTICLE I
OFFICES
Section 1. PRINCIPAL OFFICE. The principal office for the transaction of
business of the Corporation is hereby fixed and located at 19951 Mariner Avenue,
Torrance, California 90503. The location may be changed by approval of a
majority of the authorized directors, and additional offices may be established
and maintained at such other place or places, either within or outside of
California, as the Board of Directors may from time to time designate.
Section 2. OTHER OFFICES. Branch or subordinate offices may at any time be
established by the Board of Directors at any place or places where the
Corporation is qualified to do business.
ARTICLE II
DIRECTORS - MANAGEMENT
Section 1. POWERS, STANDARD OF CARE.
A. POWERS: Subject to the provisions of the California Corporations
Code (hereinafter the "Code"), and subject to any limitations in the Articles of
Incorporation of the Corporation relating to action required to be approved by
the Shareholders, as that term is defined in Section 153 of the Code, or by the
outstanding shares, as that term is defined in Section 152 of the Code, the
business and affairs of the Corporation shall be managed and all corporate
powers shall be exercised by or under the direction of the Board of Directors.
The Board of Directors may delegate the management of the day-to-day operation
of the business of the Corporation to a management company or other persons,
provided that the business and affairs of the Corporation shall be managed, and
all corporate powers shall be exercised, under the ultimate direction of the
Board.
B. STANDARD OF CARE; LIABILITY:
(i) Each Director shall exercise such powers and otherwise
perform such duties, in good faith, in the matters such Director believes to be
in the best interests of the Corporation, and with such care, including
reasonable inquiry, using ordinary prudence, as a person in a like position
would use under similar circumstances.
(ii) In performing the duties of a Director, a Director shall be
entitled to rely on information, opinions, reports, or statements, including
financial statements and other financial data, in which case prepared or
presented by:
(a) One or more officers or employees of the Corporation
whom the Director believes to be reliable and competent in the matters
presented,
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(b) Counsel, independent accountants or other persons as to
which the Director believes to be within such person's professional or expert
competence, or
(c) A Committee of the Board upon which the Director does
not serve, as to matters within its designated authority, which committee the
Director believes to merit confidence, so long as in any such case the Director
acts in good faith, after reasonable inquiry when the need therefor is indicated
by the circumstances and without knowledge that would cause such reliance to be
unwarranted.
C. EXCEPTION FOR CLOSE CORPORATION. Notwithstanding the
provisions of Section 1 of this Article, in the event that the Corporation shall
elect to become a close corporation as defined in Section 158 of the Code, its
Shareholders may enter into a Shareholders' Agreement as defined in Section 186
of the Code. Said Agreement may provide for the exercise of corporate powers and
the management of the business and affairs of the Corporation by the
Shareholders; provided, however, such agreement shall, to the extent and so long
as the discretion or powers of the Board of Directors in its management of
corporate affairs is controlled by such agreement, impose upon each Shareholder
who is a party hereof, liability for managerial acts performed or omitted by
such person pursuant thereto otherwise imposed upon Directors as provided in
Section 300(d) of the Code; and the Directors shall be relieved to that extent
from such liability.
Section 2. NUMBER AND QUALIFICATION OF DIRECTORS. The authorized number of
Directors of the Corporation shall be between one (1) and three (3) until
changed by a duly adopted amendment to the Articles of Incorporation or by an
amendment to this Section 2 of Article II of these Bylaws, adopted by the vote
or written consent of Shareholders entitled to exercise majority voting power as
provided in Section 212 of the Code.
Section 3. ELECTION AND TERM OF OFFICE OF DIRECTORS. Directors shall be
elected at each annual meeting of the Shareholders to hold office until the next
annual meeting. Each Director, including a Director elected to fill a vacancy,
shall hold office until the expiration of the term for which elected and until a
successor has been elected and qualified.
Section 4. VACANCIES.
A. Vacancies on the Board of Directors may be filled by a majority of
the remaining Directors, though less than a quorum, or by a sole remaining
Director, except that a vacancy created by the removal of a Director by the vote
or written consent of the Shareholders, or by a court order, may be filled only
by the vote of a majority of the shares entitled to vote, represented at a duly
held meeting at which a quorum is present, or by the written consent of holders
of the majority of the outstanding shares entitled to vote. Each Director so
elected shall hold office until the next annual meeting of the Shareholders and
until a successor has been elected and qualified.
B. A vacancy or vacancies on the Board of Directors shall be deemed to
exist in the event of the death, resignation or removal of any Director, or if
the Board of Directors by resolution declares vacant the office of a Director
who has been declared of unsound mind by an order of court or
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convicted of a felony.
C. The Shareholders may elect a Director or Directors at any time to
fill any vacancy or vacancies not filled by the Directors, but any such election
by written consent shall require the consent of a majority of the outstanding
shares entitled to vote.
D. Any Director may resign, effective on giving written notice to the
Chairman of the Board, the President, the Secretary, or the Board of Directors,
unless the notice specifies a later time for that resignation to become
effective. If the resignation of a Director is effective at a future time, the
Board of Directors may, prior to the effective date of a Director's resignation,
elect a successor to take office when the resignation becomes effective.
E. No reduction of the authorized number of Directors shall have the
effect of removing any Director before that Director's term of office expires.
Section 5. REMOVAL OF DIRECTORS.
A. The entire Board of Directors, or any individual Director, may be
removed from office as provided by Sections 302, 303 and 304 of the Code. In
such case, the remaining members, if any, of the Board of Directors may elect a
successor Director to fill such vacancy for the remaining unexpired term of the
Director so removed.
B. No Director may be removed (unless the entire Board is removed)
when the votes cast against removal or not consenting in writing to such removal
would be sufficient to elect such Director if voted cumulatively at an election
at which the same total number of votes were cast (or, if such action is taken
by written consent, all shares entitled to vote, were voted) and the entire
number of Directors authorized at the time of the Directors most recent election
were then being elected; and when by the provisions of the Articles of
Incorporation the holders of the shares of any class or series voting as a class
or series are entitled to elect one or more Directors, any Director so elected
may be removed only by the applicable vote of the holders of the shares of that
class or series.
Section 6. PLACE OF MEETINGS. Regular meetings of the Board of Directors
shall be held at any place within or outside the state that has been designated
from time to time by resolution of the Board. In the absence of such resolution,
regular meetings shall be held at the principal executive office of the
Corporation. Special meetings of the Board shall be held at any place within or
outside the state that has been designated in the notice of the meeting, or, if
not stated in the notice or there is no notice, at the principal executive
office of the Corporation. Any meeting, regular or special, may be held by
conference telephone or similar communication equipment, so long as all
Directors participating in such meeting can hear one another, and all such
Directors shall be deemed to have been present in person at such meeting.
Section 7. ANNUAL MEETINGS. Immediately following each annual meeting of
Shareholders, the Board of Directors shall hold a regular meeting for the
purpose of organization, the election of officers and the transaction of other
business. Notice of this meeting shall not be required. Minutes of any meeting
of the Board, or any committee thereof, shall be maintained as required by
Section 1500 of the Code by the Secretary or other officer designated for that
purpose.
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Section 8. OTHER REGULAR MEETINGS.
A. Other regular meetings of the Board of Directors shall be held
without call at such time as shall from time to time be fixed by the Board of
Directors. Such regular meetings may be held without notice, provided the time
and place of such meetings has been fixed by the Board of Directors, and further
provided the notice of any change in the time of such meeting shall be given to
all the Directors. Notice of a change in the determination of the time shall be
given to each Director in the same manner as notice for such special meetings of
the Board of Directors.
B. If said day falls upon a holiday, such meetings shall be held on
the next succeeding day thereafter.
Section 9. SPECIAL MEETINGS/NOTICES.
A. Special meetings of the Board of Directors for any purpose or
purposes may be called at any time by the Chairman of the Board or the President
or any Vice President or the Secretary or any two Directors.
B. Notice of the time and place for special meetings shall be
delivered personally or by telephone to each Director or sent by first class
mail or telegram, charges prepaid, addressed to each Director at his or her
address as it is shown in the records of the Corporation. In case such notice is
mailed, it shall be deposited in the United States mail at least four days prior
to the time of holding the meeting. In case such notice is delivered personally,
or by telephone or telegram, it shall be delivered personally or be telephone or
to the telegram company at least 48 hours prior to the time of the holding of
the meeting. Any oral notice given personally or by telephone may be
communicated to either the Director or to a person at the office of the Director
who the person giving the notice has reason to believe will promptly communicate
same to the Director. The notice need not specify the purpose of the meeting,
nor the place, if the meeting is to be held at the principal executive office of
the Corporation.
Section 10. WAIVER OF NOTICE.
A. The transactions of any meeting of the Board of Directors, however
called, noticed, or wherever held, shall be as valid as though had at a meeting
duly held after the regular call and notice if a quorum be present and if,
either before or after the meeting, each of the Directors not present signs a
written waiver of notice, a consent to holding the meeting or an approval of the
minutes thereof. Waivers of notice or consent need not specify the purposes of
the meeting. All such waivers, consents and approvals shall be filed with the
corporate records or made part of the minutes of the meeting.
B. Notice of a meeting shall also be deemed given to any Director who
attends the meeting without protesting, prior thereto or at its commencement,
the lack of notice to such Director.
Section 11. QUORUMS. A majority of the authorized number of Directors shall
constitute a quorum for the transaction of business, except to adjourn as
provided in Section 12 of this Article II. Every act or decision done or made by
a majority of the Directors present at a meeting duly held at which a quorum was
present shall be regarded as the act of the Board of Directors, subject to the
provisions of Code Sections 310, 311 and 317(e). A meeting at which a quorum is
initially present may
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continue to transact business notwithstanding the withdrawal of Directors, if
any action taken is approved by at least a majority of the required quorum for
that meeting.
Section 12. ADJOURNMENT. A majority of the directors present, whether or
not constituting a quorum, may adjourn any meeting to another time and place.
Section 13. NOTICE OF ADJOURNMENT. Notice of the time and place of the
holding of an adjourned meeting need not be given, unless the meeting is
adjourned for more than 24 hours, in which case notice of such time and place
shall be given prior to the time of the adjourned meeting to the Directors who
were not present at the time of the adjournment.
Section 14. BOARD OF DIRECTORS PROVIDED BY ARTICLES OR BYLAWS. In the event
only one Director is required by the Bylaws or the Articles of Incorporation,
then any reference herein to notices, waivers, consents, meetings or other
actions by a majority or quorum of the Board of Directors shall be deemed or
referred as such notice, waiver, etc., by the sole Director, who shall have all
rights and duties and shall be entitled to exercise all of the powers and shall
assume all the responsibilities otherwise herein described, as given to the
Board of Directors.
Section 15. DIRECTORS ACTION BY UNANIMOUS WRITTEN CONSENT. Any action
required or permitted to be taken by the Board of Directors may be taken without
a meeting and with the same force and effect as if taken by a unanimous vote of
Directors, if authorized by a writing signed individually or collectively by all
members of the Board of Directors. Such consent shall be filed with the regular
minutes of the Board of Directors.
Section 16. COMPENSATION OF DIRECTORS. Directors, and members as such,
shall not receive any stated salary for their services, but by resolution of the
Board of Directors, a fixed sum and expense of attendance, if any, may be
allowed for attendance at each regular and special meeting of the Board of
Directors; provided, however, that nothing contained herein shall be construed
to preclude any Director from serving the Corporation in any other capacity as
an officer, employee or otherwise receiving compensation for such services.
Section 17. COMMITTEES. Committees of the Board of Directors may be
appointed by resolution passed by a majority of the whole Board. Committees
shall be composed of two or more members of the Board of Directors. The Board
may designate one or more Directors as alternate members of any committee, who
may replace any absent member at any meeting of the committee. Committees shall
have such powers as those held by the Board of Directors as may be expressly
delegated to it by resolution of the Board of Directors, except those powers
expressly made non-delegable by Section 311 of the Code.
Section 18. MEETINGS AND ACTION OF COMMITTEES. Meetings and action of
committees shall be governed by, and held and taken in accordance with, the
provisions of Article II, Sections 6, 8, 9, 10, 11, 12, 13 and 15, with such
changes in the context of those Sections as are necessary to substitute the
committee and its members for the Board of Directors and its members, except
that the time of the regular meetings of the committees may be determined by
resolution of the Board of Directors as well as the committee, and special
meetings of committees may also be given to all alternate members, who shall
have the right to attend all meetings of the committee. The Board of Directors
may adopt rules for the government of any committee not inconsistent with the
provisions of these Bylaws.
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Section 19. ADVISORY DIRECTORS. The Board of Directors from time to time
may elect one or more persons to be Advisory Directors, who shall not by such
appointment be members of the Board of Directors. Advisory Directors shall be
available from time to time to perform special assignments specified by the
President, to attend meetings of the Board of Directors upon invitation and to
furnish consultation to the Board of Directors. The period during which the
title shall be held may be prescribed by the Board of Directors. If no period is
prescribed, the title shall be held at the pleasure of the Board of Directors.
ARTICLE III
OFFICERS
Section 1. OFFICERS. The principal officers of the Corporation shall be a
President, a Secretary, and a Chief Financial Officer who may also be called
Treasurer. The Corporation may also have, at the discretion of the Board of
Directors, a Chairman of the Board, one or more Vice Presidents, one or more
Assistant Secretaries, one or more Assistant Treasurers, and such other officers
as may be appointed in accordance with the provisions of Section 3 of this
Article III. Any number of offices may be held by the same person.
Section 2. ELECTION OF OFFICERS. The principal officers of the Corporation,
except such officers as may be appointed in accordance with the provisions of
Section 3 or Section 5 of this Article, shall be chosen by the Board of
Directors, and each shall serve at the pleasure of the Board of Directors,
subject to the rights, if any, of an officer under any contract of employment.
Section 3. SUBORDINATE OFFICERS, ETC. The Board of Directors may appoint
such other officers as the business of the Corporation may require, each of whom
shall hold office for such period, have such authority and perform such duties
as are provided in the Bylaws or as the Board of Directors may from time to time
determine.
Section 4. REMOVAL AND RESIGNATION OF OFFICERS.
A. Subject to the rights, if any, of an officer under any contract of
employment, any officer may be removed, either with or without cause, by a
majority of the Directors at that time in office, at any regular or special
meeting of the Board of Directors, or, except in the case of an officer chosen
by the Board of Directors, by any officer upon whom such power of removal may be
conferred by the Board of Directors.
B. Any officer may resign at any time by giving written notice to the
Board of Directors. Any resignation shall take effect on the date of the receipt
of that notice or at any later time specified in that notice; and, unless
otherwise specified in that notice, the acceptance of the resignation shall not
be necessary to make it effective. Any resignation is without prejudice to the
rights, if any, of the Corporation under any contract to which the officer is a
party.
Section 5. VACANCIES. A vacancy in any office because of death,
resignation, removal, disqualification or any other cause shall be filled in the
manner prescribed in the Bylaws for regular appointments to that office.
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Section 6. CHAIRMAN OF THE BOARD.
A. The Chairman of the Board, if such an officer be elected, shall, if
present, preside at the meetings of the Board of Directors and exercise and
perform such other powers and duties as may, from time to time, be assigned by
the Board of Directors or prescribed by the Bylaws. If there is no President,
the Chairman of the Board shall, in addition, be the Chief Executive Officer of
the Corporation and shall have the powers and duties prescribed in Section 7 of
this Article III.
Section 7. PRESIDENT AND CHIEF EXECUTIVE OFFICER. Subject to such
supervisory powers, if any, as may be given by the Board of Directors to the
Chairman of the Board, if there is such an officer, the President along with the
Chief Executive Officer of the Corporation shall, subject to the control of the
Board of Directors, have general supervision, discretion and control of the
business and officers of the Corporation. The President or the Chief Executive
Officer shall preside at all meetings of the Shareholders and, in the absence of
the Chairman of the Board, or if there be none, at all meetings of the Board of
Directors. The President and Chief Executive Officer, jointly, shall have the
general powers and duties of management usually vested in the office of
President and Chief Executive Officer of a corporation, each shall be ex officio
a member of all the standing committees, including the Executive Committee, if
any, and shall have such other powers and duties as may be prescribed by the
Board of Directors or the Bylaws.
Section 8. VICE PRESIDENT. In the absence or disability of the President or
Chief Executive Officer, the Vice Presidents, if any, in order of their rank as
fixed by the Board of Directors, or if not ranked, the Vice President designated
by the Board of Directors, shall perform all the duties of the President or
Chief Executive Officer, as the case may be, and when so acting, shall have all
the powers of, and be subject to all the restrictions upon, the President or the
Chief Executive Officer. The Vice Presidents shall have such other powers and
perform such other duties as from time to time may be prescribed for them,
respectively, by the Board of Directors or the Bylaws, the President, the Chief
Executive Officer, or the Chairman of the Board.
Section 9. SECRETARY.
A. The Secretary shall keep, or cause to be kept, a book of minutes of
all meetings of the Board of Directors and Shareholders at the principal office
of the Corporation or such other place as the Board of Directors may order. The
minutes shall include the time and place of holding the meeting, whether regular
or special, and if a special meeting, how authorized, the notice thereof given,
and the names of those present at Directors' and committee meetings, the number
of shares present or represented at Shareholders' meetings and the proceedings
thereof.
B. The Secretary shall keep, or cause to be kept, at the principal
office of the Corporation or at the office of the Corporation's transfer agent,
a share register, or duplicate share register, showing the names of the
Shareholders and their addresses; the number and classes or shares held by each;
the number and date of certificates issued for the same; and the number and date
of cancellation of every certificate surrendered for cancellation.
C. The Secretary shall give, or cause to be given, notice of all the
meetings of the Shareholders and of the Board of Directors required by the
Bylaws or by law to be given. The Secretary shall keep the seal of the
Corporation in safe custody, and shall have such other powers and perform
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such other duties as may be prescribed by the Board of Directors or by the
Bylaws.
Section 10. CHIEF FINANCIAL OFFICER.
A. The Chief Financial Officer shall keep and maintain, or cause to be
kept and maintained, in accordance with generally accepted accounting
principles, adequate and correct accounts of the properties and business
transactions of the Corporation, including accounts of its assets, liabilities,
receipts, disbursements, gains, losses, capital, earnings (or surplus) and
shares issued. The books of account shall, at all reasonable times, be open to
inspection by any Director.
B. The Chief Financial Officer shall deposit all monies and other
valuables in the name and to the credit of the Corporation with such
depositaries as may be designated by the Board of Directors. The Chief Financial
Officer shall disburse the funds of the Corporation as may be ordered by the
Board of Directors, shall render to the President and Directors, whenever they
request it, an account of all of the transactions of the Chief Financial Officer
and of the financial condition of the Corporation, and shall have such other
powers and perform such other duties as may be prescribed by the Board of
Directors or the Bylaws.
ARTICLE IV
SHAREHOLDERS' MEETINGS
Section 1. PLACE OF MEETINGS. Meetings of the Shareholders shall be held at
any place within or outside the state of California designated by the Board of
Directors. In the absence of any such designation, Shareholders' meetings shall
be held at the principal executive office of the Corporation.
Section 2. ANNUAL MEETING.
A. The annual meeting of the Shareholders shall be held, each year, as
follows:
Time of Meeting: 3:00 P.M.
Date of Meeting: October 15
B. If this day shall be a legal holiday, then the meeting shall be
held on the next succeeding business day, at the same time. At the annual
meeting, the Shareholders shall elect a Board of Directors, consider reports of
the affairs of the Corporation and transact such other business as may be
properly brought before the meeting.
C. If the above date is inconvenient, the annual meeting of
Shareholders shall be held each year on a date and at a time designated by the
Board of Directors within twenty days of the above date upon proper notice to
all Shareholders.
Section 3. SPECIAL MEETINGS.
A. Special meetings of the Shareholders for any purpose or purposes
whatsoever, may be called at any time by the Board of Directors, the Chairman of
the Board, the President, or by one or more Shareholders holding shares in the
aggregate entitled to cast not less than 10% of the votes at any such meeting.
Except as provided in paragraph B below of this Section 3, notice shall be given
as for the annual meeting.
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B. If a special meeting is called by any person or persons other than
the Board of Directors, the request shall be in writing, specifying the time of
such meeting and the general nature of the business proposed to be transacted,
and shall be delivered personally or sent by registered mail or by telegraphic
or other facsimile transmission to the Chairman of the Board, the President, any
Vice President or the Secretary of the Corporation. The officer receiving such
request shall forthwith cause notice to be given to the Shareholders entitled to
vote, in accordance with the provisions of Sections 4 and 5 of this Article,
indicating that a meeting will be held at the time requested by the person or
persons calling the meeting, not less than 35 nor more than 60 days after the
receipt of the request. If the notice is not given within 20 days after receipt
of the request, the person or persons requesting the meeting may give the notice
in the manner provided in these Bylaws or upon application to the Superior Court
as provided in Code Section 305(c). Nothing contained in this paragraph of this
Section shall be construed as limiting, fixing or affecting the time when a
meeting of Shareholders called by action of the Board of Directors may be held.
Section 4. NOTICE OF MEETINGS - REPORTS.
A. Notice of any Shareholders meetings, annual or special, shall be
given in writing not less than 10 days nor more than 60 days before the date of
the meeting to Shareholders entitled to vote thereat by the Secretary or the
Assistant Secretary, or if there be no such officer, or in the case of said
Secretary or Assistant Secretary's neglect or refusal, by any Director or
Shareholder.
B. Such notices or any reports shall be given personally or by mail or
other means of written communication as provided in Section 601 of the Code and
shall be sent to the Shareholder's address appearing on the books of the
Corporation, or supplied by the Shareholder to the Corporation for the purpose
of notice, and in the absence thereof, as provided in Section 601 of the Code by
posting notice at a place where the principal executive office of the
Corporation is located or by publication at least once in a newspaper of general
circulation in the county in which the principal executive office is located.
C. Notice of any meeting of Shareholders shall specify the place, the
day and the hour of meeting, and (i) in case of a special meeting, the general
nature of the business to be transacted and that no other business may be
transacted, or (ii) in the case of an annual meeting, those matters which the
Board of Directors, at the date of mailing of notice, intends to present for
action by the Shareholders. At any meetings where Directors are elected, notice
shall include the names of the nominees, if any, intended at the date of notice
to be presented for election.
D. Notice shall be deemed given at the time it is delivered personally
or deposited in the mail or sent by other means of written communication. The
officer giving such notice or report shall prepare and file in the minute book
of the Corporation an affidavit or declaration thereof.
E. If action is proposed to be taken at any meeting for approval of
(i) contracts or transactions in which a Director has a direct or indirect
financial interest, pursuant to Code Section 310, (ii) an amendment to the
Articles of Incorporation, pursuant to Section 902 of the Code, (iii) a
reorganization of the Corporation, pursuant to Section 1201 of the Code, (iv)
dissolution of the Corporation, pursuant to Section 1900 of such Code, or (v) a
distribution to preferred Shareholders,
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pursuant to Section 2007 of such Code, the notice shall also state the general
nature of such proposal.
Section 5. QUORUM.
A. The holders of a majority of the shares entitled to vote at a
Shareholders' meeting, present in person, or represented by proxy, shall
constitute a quorum at all meetings of the Shareholders for the transaction of
business except as otherwise provided by the Code or by these Bylaws.
B. The Shareholders present at a duly called or held meeting at which
a quorum is present may continue to transact business until adjournment,
notwithstanding the withdrawal of enough Shareholders to leave less than a
quorum, if any action taken (other than adjournment) is approved by a majority
of the shares required to constitute a quorum.
Section 6. ADJOURNED MEETING AND NOTICE THEREOF.
A. Any Shareholders' meeting, annual or special, whether or not a
quorum is present, may be adjourned from time to time by the vote of the
majority of the shares represented at such meeting, either in person or by
proxy, but in the absence of a quorum, no other business may be transacted at
such meeting.
B. When any meeting of Shareholders, either annual or special, is
adjourned to another time or place, notice need not be given of the adjourned
meeting if the time and place thereof are announced at a meeting at which the
adjournment is taken, unless a new record date for the adjourned meeting is
fixed, or unless the adjournment is for more than 45 days from the date set for
the original meeting, in which case the Board of Directors shall set a new
record date. Notice of any adjourned meeting shall be given to each Shareholder
of record entitled to vote at the adjourned meeting in accordance with the
provisions of Section 4 of this Article. At any adjourned meeting, the
Corporation may transact any business which might have been transacted at the
original meeting.
Section 7. WAIVER OR CONSENT BY ABSENT SHAREHOLDERS.
A. The transactions of any meeting of Shareholders, either annual or
special, however called and noticed, shall be valid as though had at a meeting
duly held after regular call and notice, if a quorum be present either in person
or by proxy, and if, either before or after the meeting, each of the
Shareholders entitled to vote, not present in person or by proxy, sign a written
waiver of notice, or a consent to the holding of such meeting or an approval of
the minutes thereof.
B. The waiver of notice or consent need not specify either the
business to be transacted or the purpose of any regular or special meeting of
Shareholders, except that if action is taken or proposed to be taken for
approval of any of those matters specified in Section E of Section 4 of this
Article, the waiver of notice or consent shall state the general nature of such
proposal. All such waivers, consents or approvals shall be filed with the
corporate records or made a part of the minutes of the meeting.
C. Attendance of a person at a meeting shall also constitute a waiver
of notice of such meeting, except when the person objects, at the beginning of
the meeting, to the transaction of any
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business because the meeting is not lawfully called or convened, and except that
attendance at a meeting is not a waiver of any right to object to the
consideration of matters not included in the notice. A Shareholder or
Shareholders of the Corporation holding at least 5% in the aggregate of the
outstanding voting shares of the Corporation may (i) inspect, and copy the
records of Shareholders' names and addresses and shareholdings during usual
business hours upon five days prior written demand upon the Corporation, and/or
(ii) obtain from the transfer agent by paying such transfer agent's usual
charges for such a list, a list of the Shareholders' names and addresses who are
entitled to vote for the election of Directors, and their shareholdings, as of
the most recent record date for which such list has been compiled or as of a
date specified by the Shareholders subsequent to the day of demand. Such list
shall be made available by the transfer agent on or before the later of five
days after the demand is received or the date specified therein as the date as
of which the list is to be compiled. The record of Shareholders shall also be
open to inspection upon the written demand of any Shareholder or holder of a
voting trust certificate, at any time during usual business hours, for a purpose
reasonably related to such holder's interest as a Shareholder or as a holder of
a voting trust certificate. Any inspection and copying under this Section may be
made in person or by an agent or attorney of such Shareholder or holder of a
voting trust certificate making such demand.
Section 8. MAINTENANCE AND INSPECTION OF BYLAWS. The Corporation shall keep
at its principal executive office, or if not in this state, at its principal
business office in this state, the original or a copy of the Bylaws amended to
date, which shall be open to inspection by the Shareholders at all reasonable
times during office hours. If the principal executive office of the Corporation
is outside the state and the Corporation has no principal business office in
this state, the Secretary shall, upon written request of any Shareholder,
furnish to such Shareholder a copy of the Bylaws as amended to date.
Section 9. ANNUAL REPORT TO SHAREHOLDERS.
A. Provided the Corporation has 100 Shareholders or less, the Annual
Report to Shareholders referred to in Section 1501 of the General Corporation
Law is expressly dispensed with, but nothing herein shall be interpreted as
prohibiting the Board of Directors from issuing annual or other period reports
to Shareholders of the Corporation as they deem appropriate.
B. Should the Corporation have 100 or more Shareholders, an Annual
Report to Shareholders must be furnished not later than 120 days after the end
of each fiscal period. The Annual Report to Shareholders shall be sent at least
15 days before the annual meeting of the Shareholders to be held during the next
fiscal year and in the manner specified in Section 4 of Article IV of these
Bylaws for giving notice to Shareholders of the Corporation. The Annual Report
to Shareholders shall contain a Balance Sheet as of the end of the fiscal year
and an Income Statement and Statement of Changes in Financial Position for the
fiscal year, accompanied by any report of independent accountants or, if there
is no such report, the certificate of an authorized officer of the Corporation
that the statements were prepared without audit from the books and records of
the Corporation.
Section 10. FINANCIAL STATEMENTS.
A. A copy of any annual financial statement and any Income Statement
of the Corporation for each quarterly period of each fiscal year, and any
accompanying Balance Sheet of the Corporation as of the end of each such period,
that has been prepared by the Corporation shall be kept on file at the principal
executive office of the Corporation for 12 months from the date of its
execution,
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and each such statement shall be exhibited at all reasonable times to any
Shareholder demanding an examination of such statement or a copy shall be made
for any such Shareholder.
B. If a Shareholder or Shareholders holding at least 5% of the
outstanding shares of any class of stock of the Corporation make a written
request to the Corporation for an Income Statement of the Corporation for the
three month, six month or nine month period of the then current fiscal year
ended more than 30 days prior to the date of the request, and a Balance Sheet of
the Corporation at the end of such period, the Chief Financial Officer shall
cause such statement to be prepared, if not already prepared, and shall deliver
personally or mail such statement or statements to the person making the request
within 30 days after the receipt of such request. If the Corporation has not
sent to the Shareholders its Annual Report for the last fiscal year, this report
shall likewise be delivered or mailed to such Shareholder or Shareholders within
30 days after such request.
C. The Corporation also shall, upon the written request of any
Shareholder, mail to the Shareholder a copy of the last annual, semi-annual or
quarterly Income Statement which it has prepared and a Balance Sheet as of the
end of such period. This quarterly Income Statement and Balance Sheet referred
to in this Section shall be accompanied by the report thereon, if any, of any
independent accountants engaged by the Corporation or the certificate of
authorized officer of the Corporation such that financial statements were
prepared without audit from the books and records of the Corporation.
Section 11. ANNUAL STATEMENT OF GENERAL INFORMATION. The Corporation shall,
in a timely manner, in each year, file with the Secretary of State of
California, on the prescribed form, the statement setting forth the authorized
number of Directors, the names and complete business or residence addresses of
all incumbent Directors, the names and complete business or residence addresses
of the Chief Executive Officer, Secretary and Chief Financial Officer, the
street address of its principal executive office or principal business office in
this state and the general type of business constituting the principal business
activity of the Corporation, together with a designation of the agent of the
Corporation for the purpose of the service of process, all in compliance with
Code Section 1502.
ARTICLE IX
AMENDMENTS TO BYLAWS
Section 1. AMENDMENT BY SHAREHOLDERS. New Bylaws may be adopted or these
Bylaws may be amended or repealed by the vote or written consent of holders of a
majority of the outstanding shares entitled to vote; provided, however, that if
the Articles of Incorporation of the Corporation set forth the number of
authorized Directors of the Corporation, the authorized number of Directors may
be changed only by amendment to the Articles of Incorporation.
Section 2. AMENDMENT BY DIRECTORS. Subject to the rights of the
Shareholders to adopt, amend or repeal the Bylaws, as provided in Section 1 of
this Article IX, and the limitations of Sections 204(a)(5) of the Code, the
Board of Directors may adopt, amend or repeal any of these Bylaws other than an
amendment to the Bylaws changing the authorized number of Directors.
Section 3. RECORD OF AMENDMENTS. Whenever an amendment or new Bylaw is
adopted, it shall be copies in the corporate book of Bylaws with the original
Bylaws, in the appropriate place. If any Bylaw is repealed, the fact of repeal
with the date of the meeting at which the repeal was enacted
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or written assent was filed shall be stated in the corporate book of Bylaws.
ARTICLE X
MISCELLANEOUS
Section 1. SHAREHOLDERS' AGREEMENTS. Notwithstanding anything contained in
this Article X to the contrary, in the event the Corporation elects to become a
close corporation, an agreement between two or more Shareholders thereof, if in
writing and signed by the parties thereto, may provide that in exercising any
voting rights, the shares held by them shall be voted as provided therein or in
Section 705 of the Code, and may otherwise modify the provisions contained in
Article IV, herein as to Shareholders' meetings and actions.
Section 2. EFFECT OF SHAREHOLDERS' AGREEMENTS. Any Shareholders' Agreement
authorized by Section 300(b) of the Code, shall only be effective to modify the
terms of these Bylaws if the Corporation elects to become a close corporation
with the appropriate filing of an amendment to its Articles of Incorporation as
required by Section 202 of the Code and shall terminate when the Corporation
ceases to be a close corporation. Such an agreement cannot waive or alter the
following Sections of the Code: Section 158 (defining close corporations),
Section 202 (requirements of Articles of Incorporation), Sections 500 and 501
(relative to distributions), Section 111 (merger), Section 1201(e)
(reorganization), or Chapter 15 (Records and Reports), Chapter 16 (rights of
inspection), Chapter 18 (Involuntary dissolution) or Chapter 22 (crimes and
penalties). Any other provisions of the Code or these Bylaws may be altered or
waived thereby, but to the extent they are not so altered or waived, these
Bylaws shall be applicable.
Section 3. SUBSIDIARY CORPORATIONS. Shares of the Corporation owned by a
subsidiary shall not be entitled to vote on any matter. For the purpose of this
Section, a subsidiary of the Corporation as defined in Section 189(b) of the
Code is defined as another corporation of which shares thereof possessing more
than 25% of the voting power are owned directly or indirectly through one or
more other corporations of which the Corporation owns, directly or indirectly,
more than 50% of the voting power.
Section 4. ACCOUNTING YEAR. The accounting year of the Corporation shall be
fixed by resolution of the Board of Directors.
Section 5. FORM. The corporate seal shall be circular in form, and shall
have inscribed thereon the name of the Corporation, the date of its
incorporation, and the word "California" to indicate the Corporation was
incorporated pursuant to the laws of the State of California.
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CERTIFICATE OF SECRETARY
I, the undersigned, certify that:
1 I am the duly elected and acting secretary of INETECOMMERCE.COM, INC.,
a California corporation; and
2 The foregoing Bylaws, consisting of 14 pages, not including this
certificate, are the Bylaws of this Corporation as adopted by the Board of
Directors in accordance with Sections 211 and 307(b) of the California
Corporations Code, and that such Bylaws have not been amended and are in full
force and effect.
IN WITNESS WHEREOF, I have subscribed my name and affixed the seal of
this Corporation on May 28, 1999.
/s/ Noreen Khan
------------------------
Noreen Khan, Secretary
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