Document:

Articles of Amendment of Genoil

 

Exhibit 4.2

 

 

 

Articles of Amendment of Genoil Inc. dated June 27, 1996

 

 

	 	 	 	 	 	 	 
	Canada Business

Corporations Act	 	
Loi regissant les societes

par actions de regime federal
	 	FORM 4

ARTICLES OF AMENDMENT

(SECTIONS 27 OR 177)
	 	FORMULE 4

CLAUSES MODIFICATRICES

(ARTICLES 27 OU 177)
	

	 	 	 
	1- Name of Corporation — Denomination de la societe	 	
2- Corporation No. — No de la societe
	 	 	 
	GENOIL INC. 
	 	324649-3

	 	 	 
	3- The Articles of the above-named corporation are amended as follows:	 	Les statuts de la societe mentionnee ci-dessus sont modifis de la facon suivante:

	 	1.	 	reducing the authorized capital of the Corporation by canceling the
Class “B”, Class “C”, Class “D”, Class “E” and Class “F” shares which
are authorized but unissued;
	 
	 	2.	 	increasing the authorized capital of the Corporation by creating an
unlimited number of common shares;
	 
	 	3.	 	changing and reclassifying the 100 issued and outstanding Class “A”
shares as 1 common share;
	 
	 	4.	 	declaring that the authorized capital of the Corporation, after
giving effect to the foregoing, shall consist of an unlimited number of
common shares;
	 
	 	5.	 	deleting the restrictions with respect to the issue, transfer or
ownership of shares set out in Section 4 of the Articles of
Incorporation dated April 1, 1996 in their entirety;
	 
	 	6.	 	deleting Schedule 2 of Section 7 of the Articles of Incorporation
dated April 1, 1996 in its entity;

	 	 	 	 	 
	DATE	 	
SIGNATURE
	 	TITLE — TITRE
	 
	 	 	 	 	FOR DEPARTMENTAL USE
ONLY — A L’USAGE DU MINISTERE SEULEMENT

FILED — DEPOSEEBy-law No. 1 of Genoil

 

Exhibit 4.3

 

 

 

 

By-law No. 1 of Genoil Inc. as amended dated October 25, 2001

 

BY-LAW NO. 1

as amended October 25, 2001

     A by-law relating generally to the transaction of the business and affairs of

GENOIL INC.

CONTENTS

	 	 	 	 	 
	Section I	 	
–
	 	Interpretation
	Section II	 	
–
	 	Business of the Corporation
	Section III	 	
–
	 	Borrowing and Securities
	Section IV	 	
–
	 	Directors
	Section V	 	
–
	 	Committees
	Section VI	 	
–
	 	Officers
	Section VII	 	
–
	 	Protection of Directors, Officers and Others
	Section VIII	 	
–
	 	Shares
	Section IX	 	
–
	 	Meetings of Shareholders
	Section X	 	
–
	 	Notices
	Section XI	 	
–
	 	Effective Date

     BE IT ENACTED as a by-law of the Corporation as follows:

SECTION I

INTERPRETATION

	1.1	 	Definitions – In the by-laws of the Corporation, unless the context
otherwise requires:
	 
	 	 	“Act” means the Canada Business Corporations Act and any statute that may
be substituted therefor, as from time to time amended;
	 
	 	 	“appoint” includes “elect” and vice versa;
	 
	 	 	“articles” means the articles attached to the certificate of
incorporation dated April 1, 1996, of the Corporation as from time to
time amended or restated;
	 
	 	 	“board” means the board of directors of the Corporation;
	 
	 	 	“by-laws” means this by-law and all other by-laws of the Corporation from
time to time in force and effect;
	 
	 	 	“meeting of shareholders” means an annual meeting of shareholders and a
special meeting of shareholders; “special meeting of shareholders” means
a special meeting of all shareholders entitled to vote at an annual
meeting of shareholders;
	 
	 	 	“non-business day” means Saturday, Sunday and any other day that is a
holiday as defined in the Interpretation Act (Canada);

 

 

	 	 	“recorded address” means in the case of a shareholder his address as
recorded in the securities register; and in the case of joint
shareholders the address appearing in the securities register in respect
of such joint holding or the first address so appearing if there are more
than one; and in the case of a director, officer, auditor or member of a
committee of the board, his latest address as recorded in the records of
the Corporation; “address” included in all cases a telex number;
	 
	 	 	“signing officer” means, in relation to any instrument, any person
authorized to sign the same on behalf of the Corporation by subsection
2.4 or by a resolution passed pursuant thereto;
	 
	 	 	“unanimous shareholder agreement” means a written agreement among all the
shareholders of the Corporation; or among all such shareholders and a
person who is not a shareholder, that restricts in whole or in part, the
powers of the directors to manage the business and affairs of the
Corporation, as from time to time amended.

Save as aforesaid, words and expressions defined in the Act have the same
meanings when used herein; and words importing the singular number include the
plural and vice versa; words importing gender include the masculine, feminine
and neuter genders; and words importing persons include individuals, bodies
corporate, partnerships, trusts and unincorporated organizations.

SECTION II

BUSINESS OF THE CORPORATION

2.1     Registered Office – Until changed in accordance with the Act, the
registered office of the Corporation will be located at the place indicated in
its articles at the address determined from time to time by the board.

2.2     Corporate Seal – Unless the Corporation adopts one by resolution of the
board, the Corporation shall have no corporate seal.

2.3     Financial Year – Until changed by the board, the financial year of the
Corporation shall end on the last day of December in each year.

2.4     Execution of Instruments – Deeds, transfers, assignments, contracts,
obligations, certificates and other instruments may be signed on behalf of the
Corporation by the chairman of the board, president, managing director,
director, secretary or as the directors may otherwise authorize, from time to
time, by resolution. Any such authorization may be general or confined to
specific instances. In addition, the board may from time to time direct the
manner in which the person or persons by whom any particular instrument or
class of instruments may or shall be signed. Any signing officer may affix the
corporate seal to any instrument requiring the same.

2.5     Declarations – The president, any vice-president, treasurer, secretary,
secretary-treasurer, general manger, chairman of the board, managing-director,
or any other officer or person nominated for the purpose by the president or
any vice-president are, and any one of them is, authorized and empowered to
appear and make answer for, on behalf and in the name of the Corporation to all
writs, orders and interrogatories upon articulated facts issued out of any
court and to declare for, on behalf and in the name of the Corporation any
answer to writs of

2

 

attachment by way of garnishment in which the Corporation is garnishee and to
make all affidavits and sworn declarations in connection therewith or in
connection with any and all judicial proceedings to which the Corporation is a
party and to make demands of abandonment or petitions for winding-up or
bankruptcy orders upon any debtor of the Corporation and to attend and vote at
all meetings of creditors of the Corporation’s debtors and grant proxies in
connection therewith, and may generally do all such things in respect thereof
as they deem to be in the best interests of the Corporation.

2.6     Banking Arrangements – The banking business of the Corporation including,
without limitation, the borrowing of money and the giving of security therefor,
shall be transacted with such banks, trust companies or other bodies corporate
or organizations as may from time to time be designated by or under the
authority of the board. Such banking business or any part thereof shall be
transacted under such agreements, instructions and delegations or power as the
board may from time to time prescribe or authorize.

2.7     Voting Rights in Other Bodies Corporate – The signing officers of the
Corporation may execute and deliver proxies and arrange for the issuance of
voting certificates or other evidence of the right to exercise the voting
rights attaching to any securities held by the Corporation. Such instruments,
certificates or other evidence shall be in favour of such person or persons as
may be determined by the officers executing such proxies or arranging for the
issuance of voting certificates or such other evidence of the right to exercise
such voting rights. In addition, the board may, from time to time, direct the
manner in which and the person or persons by whom any particular voting rights
or class of voting rights may or shall be exercised.

SECTION III

BORROWING AND SECURITIES

3.1     Borrowing Power – The Board of Directors has the borrowing powers provided
by the Law.

SECTION IV

DIRECTORS

4.1     Number of Directors and Quorum – Until changed in accordance with the Act,
the board shall consist of not fewer than one (1) and not more than nine (9)
directors. The directors may, from time to time, fix by resolution the quorum
for meetings of the board of directors and, until otherwise decided by
resolution of the board, and under reserve of any unanimous shareholders
agreement, a quorum for all meetings of the board shall consist of a majority
of the number of directors then in office.

4.2     Qualification – No person shall be qualified for election as a director if
he is less than eighteen (18) years of age; if he is of unsound mind and has
been so found by a court in Canada or elsewhere; if he is not an individual; or
if he has the status of a bankrupt. A director need not be a shareholder. A
majority of the directors shall be resident Canadians.

4.3     Election, Number and Term – The election of directors shall take place at
the first meeting of shareholders and at each annual meeting of shareholders
and all the directors then in office shall retire but, if qualified, shall be
eligible for re-election. The number of directors to be elected at any such
meeting shall be the number of directors then in office unless the directors or

3

 

the shareholders otherwise determine. The election shall be by resolution. If
an election of directors is not held at the proper time, the incumbent
directors shall continue in office until their successors are elected.

4.4     Removal of Directors – Subject to the provisions of the Act and to the
provisions of any unanimous shareholders agreement, the shareholders may by
ordinary resolution passed at a special meeting remove any director from office
and the vacancy created by such removal may be filled at the same meeting,
failing which it may be filled by the directors.

4.5     Vacation of Office – A director ceases to hold office when: he dies; he is
removed from office by the shareholders; he ceases to be qualified for election
as a director; or his written resignation is sent or delivered to the
Corporation, or if a time is specified in such resignation, at the time so
specified, whichever is later.

4.6     Vacancies – Subject to the Act, a quorum of the board may fill a vacancy in
the board, except a vacancy resulting from an increase in the minimum number of
directors or from a failure of the shareholders to elect the minimum number of
directors. In the absence of a quorum of the board, or if the vacancy has
arisen from a failure of the shareholders to elect the minimum number of
directors, the board shall forthwith call a special meeting of shareholders to
fill the vacancy. If the board fails to call such meeting or if there are no
such directors then in office, any shareholder may call the meeting.

4.7     Action by the Board – Subject to any unanimous shareholder agreement, the
board shall manage the business and affairs of the Corporation. Subject to
subsection 4.8, the powers of the board may be exercised by resolution passed
at a meeting at which a quorum is present or by resolution in writing signed by
all the directors entitled to vote on that resolution at a meeting of the
board. Where there is a vacancy in the board, the remaining directors may
exercise all the powers of the board so long as a quorum remains in office.

4.8     Meetings by Telephone – If all directors consent, a director may
participate in a meeting of the board or of a committee of the board by means
of such telephone or other communication facilities as permit all persons
participating in the meeting to hear each other, and a director participating
in such a meeting by such means is deemed to be present at the meeting. Any
such consent shall be effective whether given before or after the meeting to
which it relates and may be given with respect to all meetings of the board and
of committees of the board held while a director holds office.

4.9     Place of Meetings – Meetings of the board may be held at any place in or
outside Canada unless the directors decide otherwise by unanimous resolution.

4.10     Calling of Meetings – Meetings of the board shall be held from time to
time and at such place as the board, the chairman of the board, the managing
director, the president or any two directors may determine.

4.11     Notice of Meeting – Notice of the time and place and each meeting of the
board shall be given in the manner provided in subsection 10.1 to each director
not less than forty-eight (48) hours before the time when the meeting is to be
held. A notice of a meeting of directors need not specify the purpose of, or
the business to be transacted at the meeting except where the Act requires such
purpose of business to be specified, including any proposal to:

4

 

	 	(a)	 	submit to the shareholders any question or matter requiring
approval of the shareholders;
	 
	 	(b)	 	fill a vacancy among the directors or in the office of
auditor;
	 
	 	(c)	 	issue securities;
	 
	 	(d)	 	declare dividends;
	 
	 	(e)	 	purchase, redeem or otherwise acquire shares of the
Corporation;
	 
	 	(f)	 	pay a commission for the sale of shares;
	 
	 	(g)	 	approve a management proxy circular;
	 
	 	(h)	 	approve a take-over bid circular or directors’ circular;
	 
	 	(i)	 	approve any annual financial statements; or
	 
	 	(j)	 	adopt, amend or repeal by-laws.

     A director may in any manner waive notice of or otherwise consent to a
meeting of the board and attendance of a director at a meeting of directors is
a waiver of notice of the meeting, except where a director attends a meeting
for the express purpose of objecting to the transaction of any business on the
grounds that the meeting is not lawfully called.

4.12     First Meeting of New Board – Provided a quorum of directors is present,
each newly elected board may without notice hold its first meeting immediately
following the meeting of shareholders at which such board is elected.

4.13     Adjourned Meeting – Notice of an adjourned meeting of the board is not
required if the time and place of the adjourned meeting is announced at the
original meeting.

4.14     Regular Meetings – The board may appoint a day or days in any month or
months for regular meetings of the board at a place and hour to be named. A
copy of any resolution of the board fixing the place and time of such regular
meetings shall be sent to each director forthwith after being passed, but no
other notice shall be required for any such regular meeting except where the
Act requires the purpose thereof or the business to be transacted thereat to be
specified.

4.15     Chairman – The chairman of any meeting of the board shall be the first
mentioned of such of the following officers as have been appointed and who is a
director and is present at the meeting: chairman of the board, managing
director, president, or a vice-president who is a director. If no such officer
is present, the directors present shall choose one from amongst them to be
chairman.

4.16     Votes to Govern – At all meetings of the board every question shall be
decided by a majority of the votes cast on the question. In the event of a tie
the chairman of the meeting shall not be entitled to a second or casting vote.

5

 

4.17     Conflict of Interest – A director or officer who is a party to, or who is
a director of officer of or has a material interest in any person who is a
party to, a material contract or proposed material contract with the
Corporation, shall disclose the nature and extent of his interest at the time
and in the manner provided by the Act.

4.18     Remuneration and Expenses – Subject to any unanimous shareholder
agreement, the directors shall be paid such remuneration for their services as
the board may from time to time determine. The directors shall also be
entitled to be reimbursed for traveling and other expenses properly incurred by
them in attending meetings of the board or any committee thereof. Nothing
herein contained shall preclude any director from serving the Corporation in
any other capacity and receiving remuneration therefor.

4.19     Only One Director – Where the Corporation has only one (1) director, that
director shall constitute the board and a meeting.

SECTION V

COMMITTEES

5.1     Committee of Directors – The board may appoint a committee of directors,
however designated, and delegate to such committee any of the powers of the
board except those which, under the Act, a committee of directors has no
authority to exercise. A majority of the members of such committee shall be
resident Canadians.

5.2     Transaction of Business – Subject to the provisions of subsection 4.8, the
powers of a committee of directors may be exercised by a meeting at which a
quorum is present or by resolution in writing signed by all the members of such
committee who would have been entitled to vote on that resolution at a meeting
of the committee. Meetings of such committee may be held at any place in or
outside Canada.

SECTION VI

OFFICERS

6.1     Appointment – Subject to any unanimous shareholder agreement, the board
may, from time to time, appoint a president, one or more vice-presidents (to
which title may be added words indicating seniority or function), a secretary,
a treasurer and such other officers as the board may determine, including one
or more assistants to any of the officers so appointed. The board may specify
the duties of and, in accordance with this by-law and subject to the provisions
of the Act, delegate to such officers powers to manage the business and affairs
of the Corporation. Subject to subsections 6.2 and 6.3, an officer may but
need not be a director and one person may hold more than one office.

6.2     Chairman of the Board – The board may, from time to time, also appoint a
chairman of the board who shall be a director. If appointed, the board may
assign to him any of the powers and duties that are by any provisions of this
by-law assigned to the managing director or to the president; and he shall,
subject to the provisions of the Act, have such other powers and duties as the
board may specify. During the absence or disability of the chairman of the
board, his duties shall be performed and his powers exercised by the managing
director, if any, or by the president.

6

 

6.3     Managing Director – The board may, from time to time, appoint a managing
director who shall be a resident Canadian and a director. If appointed, he
shall be the chief executive officer and, subject to the authority of the
board, shall have general supervision of the business and affairs of the
Corporation and he shall, subject to the provisions of the Act, have such other
powers and duties as the board may specify. During the absence or disability
of the president, or if no president has been appointed, the managing director
shall have the powers and duties of that office.

6.4     President – If appointed, the president shall be the chief operating
officer and, subject to the authority of the board, shall have general
supervision of the business of the Corporation; and he shall have such other
powers and duties as the board may specify. During the absence or disability
of the managing director, or if no managing director has been appointed, the
president shall also have the powers and duties of that office.

6.5     Vice-President – A vice-president shall have such powers and duties as the
board or the chief executive officer may specify.

6.6     Secretary – The secretary shall attend and be the secretary of all meetings
of the board, shareholders and committees of the board and shall enter or cause
to be entered in records kept for that purpose minutes of all proceedings
thereat; he shall give or cause to be given, as and when instructed, all
notices to shareholders, directors, officers, auditors and members of
committees of the board; he shall be the custodian of the stamp or mechanical
device generally used for affixing the corporate seal of the Corporation and of
all books, papers, records, documents and instruments belonging to the
Corporation, except when some other officer of agent has been appointed for
that purpose; and he shall have such other powers and duties as the board or
the chief executive officer may specify.

6.7     Treasurer – The treasurer shall keep proper accounting records in
compliance with the Act and shall be responsible for the deposit of money, the
safekeeping of securities and the disbursement of the funds of the Corporation;
he shall render to the board whenever required an account of all his
transactions as treasurer and of the financial position of the Corporation; and
he shall have such other powers and duties as the board or the chief executive
officer may specify.

6.8     Powers and Duties of Other Officers – The powers and duties of all other
officers shall be such as the terms of their engagement call for or as the
board or the chief executive officer may specify. Any of the powers and duties
of an officer to whom an assistant has been appointed may be exercised and
performed by such assistant, unless the board or the chief executive officer
otherwise directs.

6.9     Variation of Powers and Duties – The board may, from time to time and
subject to the provisions of the Act, vary, add to or limit the powers and
duties of any officer.

6.10     Term of Office – The board, in its discretion, but subject to the
provisions of any unanimous shareholders agreement may remove any officer of
the Corporation, without prejudice to such officer’s rights under any
employment contract. Otherwise each officer appointed by the board shall hold
office until his successor is appointed.

6.11     Terms of Employment and Remuneration – The terms of employment and the
remuneration of officers appointed by the board shall be settled by it from
time to time.

7

 

6.12     Conflict of Interest – An officer shall disclose his interest in any
material contract or proposed material contract with the Corporation in
accordance with subsection 4.18.

6.13     Agents and Attorneys – The board shall have the power from time to time to
appoint agents or attorneys for the Corporation in or outside Canada with such
powers of management or otherwise including the power to sub-delegate as may be
thought fit.

6.14     Fidelity Bonds – The board may require such officers, employees and agents
of the Corporation as the board deems advisable to furnish bonds for the
faithful discharge of their powers and duties, in such form and with such
surety as the board may from time to time determine.

SECTION VII

PROTECTION OF DIRECTORS, OFFICERS AND OTHERS

7.1     Limitation of Liability – No director or officer shall be liable for the
acts, receipts, neglects or defaults, of any other director or officer or
employee, or for joining in any receipt or other act for conformity, or for any
loss, damage or expense happening to the Corporation through the insufficiency
or deficiency of title to any property acquired for or on behalf of the
Corporation, or for the insufficiency or deficiency of any security in or upon
which any of the moneys of the Corporation shall be invested, or for any loss
or damage arising from the bankruptcy, insolvency or tortious acts of any
person with whom any of the moneys, securities or effects of the Corporation
shall be deposited, or for any loss occasioned by any error of judgment or
oversight on his part, or for any other loss, damage or misfortune whatever
which shall happen in the execution of the duties of his office of in relation
thereto, unless the same are occasioned by his own willful neglect or default;
provided that nothing herein shall relieve any director or officer from the
duty to act in accordance with the Act and the regulations thereunder or from
liability for any breach thereof.

7.2     Indemnity – Subject to the limitations contained in the Act, the
Corporation shall indemnify a director or officer, a former director or
officer, or a person who acts or acted at the Corporation’s request as a
director or officer of a body corporate of which the Corporation is or was a
shareholder or creditor (or a person who undertakes or has undertaken any
liability on behalf of the Corporation or any such body corporate) and his
heirs and legal representatives, against all costs, charges and expenses,
including an amount paid to settle an action or satisfy a judgment, reasonably
incurred by him in respect of any civil, criminal or administrative action or
proceeding to which he is made a party by reason of being or having been a
director or officer of the Corporation or such body corporate, if

	 	(a)	 	he acted honestly and in good faith with a view to the best
interests of the Corporation; and
	 
	 	(b)	 	in the case of a criminal or administrative action or
proceeding that is enforced by a monetary penalty, he had reasonable
grounds for believing that his conduct was lawful.

8

 

SECTION VIII

SHARES

8.1     Allotment – The board may, from time to time, allot or grant options to
purchase the whole or any part of the authorized and unissued shares of the
Corporation at such times and to such persons and for such consideration as the
board shall determine, provided that no share shall be issued until it is fully
paid as prescribed by the Act.

8.2     Commissions – The board may from time to time authorize the Corporation to
pay a commission to any person in consideration of his purchasing or agreeing
to purchase shares of the Corporation, whether from the Corporation or from any
person, or procuring or agreeing to procure purchases for any such shares.

8.3     Registration of Transfer – Subject to the provisions of the Act, no
transfer of shares shall be registered in a securities register except upon
presentation of the certificate representing such shares with a transfer
endorsed thereon or delivery therewith duly executed by the registered holder
or by his attorney or successor duly appointed, together with such reasonable
assurance or evidence of signature, identification and authority to transfer as
the board may from time to time prescribe, upon payment of all applicable taxes
and any fees prescribed by the board, upon compliance with such restrictions on
transfer as are authorized by the articles and the by-laws.

8.4     Lien for Indebtedness – If the articles provide that the Corporation shall
have a lien on shares registered in the name of a shareholder indebted to the
Corporation, such lien may be enforced, subject to any other provision of the
articles and to any unanimous shareholder agreement, by the sale of the shares
thereby affected of by any other action, suit, remedy or proceeding authorized
or permitted by law or by equity and, pending such enforcement, may refuse to
register a transfer of the whole or any part of such shares.

8.5     Share Certificates – Every holder of one or more shares of the Corporation
shall be entitled, at his option, to a share certificate, or to a
non-transferable written acknowledgement of his right to obtain a share
certificate, stating the number and class or series of shares held by him as
shown on the securities register. Share certificates and acknowledgements of a
shareholder’s right to a share certificate, respectively, shall be in such form
as the board shall from time to time approve. Any share certificate shall be
signed in accordance with subsection 2.4 and need not be under the corporate
seal; unless the board otherwise determines that certificates representing
shares in respect of which a transfer agent and/or registrar has been appointed
shall not be valid unless countersigned by or on behalf of such transfer agent
and/or registrar. The signature of one of the signing officers or, in the case
of share certificates which are not valid unless countersigned by or on behalf
of a transfer agent and/or registrar, the signatures of both signing officers,
may be printed or mechanically reproduced in facsimile upon share certificates
and every such facsimile signature shall for all purposes be deemed to be the
signature of the officer whose signature it reproduces and shall be binding
upon the Corporation.

8.6     Replacement of Share Certificates – The board or any officer or agent
designated by the board may in its or his discretion direct the issue of a new
share certificate in lieu of and upon cancellation of a share certificate that
has been mutilated or in substitution for a share certificate claimed to have
been lost, destroyed or wrongfully taken, upon payment of such fee, not

9

 

exceeding three dollars, upon providing for the indemnification and
reimbursement of expenses and upon proof of loss of said share certificate as
the board may from time to time prescribe, whether generally or in any
particular case.

8.7     Joint Shareholders – If two or more persons are registered as joint holders
of any share, the Corporation shall be not be bound to issues more than one
certificate in respect thereof, and delivery of such certificate to one of such
persons shall be sufficient delivery to all of them. Any one of such persons
may give effectual receipts for the certificates issued in respect thereof or
for any dividend, bonus, return of capital or other money payable or warrant
issuable in respect of such share.

8.8     Deceased Shareholders – In the event of the death of a holder, or of one of
the joint holders, of any share, the Corporation shall not be required to make
any entry in the securities registrar in respect thereof or to make payment of
any dividends thereon except upon production of all such documents as may be
required by law and upon compliance with the reasonable requirements of the
Corporation and its transfer agents.

SECTION IX

MEETINGS OF SHAREHOLDERS

9.1     Annual Meetings – The annual meeting of shareholders shall be held at such
time in each year and, subject to subsection 9.3, at such place as the board,
the chairman of the board, the managing director or the president may from time
to time determine, for the purpose of considering the financial statements and
reports required by the Act to be placed before the annual meeting, electing
directors, appointing auditors and for the transaction of such other business
as may properly be brought before the meeting.

9.2     Special Meetings – The board, the chairman of the board, the managing
director or the president shall have power to call a special meeting of
shareholders at any time. The president or the secretary of the Corporation
shall, upon receipt of a request signed by the registered holders of at least
ten percent (10%) of the issued voting shares of the Corporation, call a
special general meeting of the shareholders of the Corporation by way of
written notice given in accordance with subsection 10.1 accompanied by an
agenda specifying the date, time, place and purpose of the meeting, to be
addressed to each shareholder having the right to vote at such meeting.

9.3     Place of Meetings – Meetings of shareholders shall be held at the
registered office of the Corporation or elsewhere in the municipality in which
the registered office is situate or, if the board shall so determine, at some
other place in Canada or, if all the shareholders entitled to vote at the
meeting so agree, at some place outside Canada.

9.4     Notice of Meetings – Notice of the time and place of each meeting of
shareholders shall be given in the manner provided in subsection 10.1 not less
than twenty-one (21) nor more than fifty (50) days before the date of the
meeting to each director, to the auditor and to each shareholder who at the
close of business on the record date for notice, if any, is entered in the
securities registrar as the holder of one or more shares carrying the right to
vote at the meeting. Notice of a meeting of shareholders called for any
purpose other than consideration of the financial statements and auditor’s
report, election of directors and re-appointment of the incumbent auditor shall
state the nature of such business in sufficient detail to permit the

10

 

shareholder to form a reasoned judgment thereon and shall state the text of any
special resolution to be submitted to the meeting. A shareholder and any other
person entitled to attend a meeting of shareholders may in any manner waive
notice of or otherwise consent to a meeting of shareholders, and attendance of
any such person at a meeting for the express purpose of objecting to the
transaction of any business on the grounds that the meeting is not lawfully
called.

9.5     Meetings without Notice – A meeting of shareholders may be held without
notice at any such time and place permitted by the Act (a) if all the
shareholders entitled to vote thereat are present in person or represented by
proxy of if those not present or represented by proxy waive notice of or
otherwise consent to such meeting being held, and (b) if the auditors and the
directors are present or waive notice of or otherwise consent to such meeting
being held. At such a meeting any business may be transacted which the
Corporation at a meeting of shareholders may transact. If the meeting is held
at a place outside Canada, shareholders not present or represented by proxy,
but who have waived notice of or otherwise consented to such meeting, shall
also be deemed to have consented to the meeting being held at such place.

9.6     Chairman, Secretary and Scrutineers – The chairman of any meeting of
shareholders shall be the first mentioned of such of the following officers as
have been appointed and who is present at the meeting: president, managing
director, chairman of the board, or a vice-president who is a shareholder. If
no such officer is present within fifteen (15) minutes from the time fixed for
holding the meeting, the persons present and entitled to vote shall choose one
from amongst them to be chairman. If the secretary of the Corporation is
absent, the chairman shall appoint some person, who need not be a shareholder,
to act as secretary of the meeting. If desired, one or more scrutineers, who
need not be shareholders, may be appointed by a resolution or by the chairman
with the consent of those present at the meeting.

9.7     Persons Entitled to be Present – The only persons entitled to be present at
a meeting of shareholders shall be those entitled to vote thereat, the
directors and auditors of the Corporation and others who, although not entitled
to vote, are entitled to or required under any provision of the Act or the
articles or by-laws to be present at the meeting. Any other person may be
admitted only on the invitation of the chairman of the meeting or with the
consent of those present at the meeting.

9.8     Quorum – A quorum for the transaction of business at any meeting of
shareholders shall be composed of those persons who are shareholders entitled
to vote thereat or a duly appointed proxyholder for an absent shareholder so
entitled, and together holding or representing by proxy more than ten percent
(10%) of the outstanding shares of the Corporation entitled to vote at the
meeting. If a quorum is present at the opening of any meeting of shareholders,
the shareholders present or represented by proxy may proceed with the business
of the meeting notwithstanding that a quorum is not present throughout the
meeting. If quorum is not present at the opening of any meeting of
shareholders, the shareholders present or represented by proxy may adjourn the
meeting to a fixed time and place but may not transact any other business.

9.9     Right to Vote – Every person shall be entitled to vote at the meeting who
at the time is entered in the securities register as the holder of one or more
shares carrying the right to vote at such meeting.

11

 

9.10     Proxies – Every shareholder entitled to vote at a meeting of shareholders
may appoint a proxyholder, or one or more alternative proxyholders, who need
not be shareholders, to attend and act at the meeting in the manner and to the
extent authorized and with the authority conferred by the proxy. A proxy shall
be in writing executed by the shareholder or his attorney and shall conform
with the requirements of the Act.

9.11     Time for Deposit of Proxies – The board may specify in a notice calling a
meeting of shareholders a time, preceding the time of such meeting by not more
than forty-eight (48) hours excluding non-business days, before which time
proxies to be used at such meeting must be deposited. A proxy shall be acted
upon only if, prior to the time so specified, it shall have been deposited with
the Corporation or an agent thereof specified in such notice or, if no such
time is specified in such notice, unless it has been received by the secretary
of the Corporation or by the chairman of the meeting or any adjournment thereof
prior to the time of voting.

9.12     Joint Shareholders – If two or more persons hold shares jointly, any one
of them present in person or represented by proxy at a meeting of shareholders
may, in the absence of the other or others, vote the shares; but if two or more
of those persons are present, in person or by proxy vote, they shall vote as
one on the shares jointly held by them.

9.13     Votes to Govern – At any meeting of shareholders every question shall,
unless otherwise required by the articles or by-laws or by-law, be determined
by the majority of the votes cast on the question. In the event of a tie,
either upon a show of hands or upon a poll, the chairman of the meeting shall
not be entitled to a second or casting vote.

9.14     Show of Hands – Subject to the provisions of the Act, any question at a
meeting of shareholders shall be decided by a show of hands unless a ballot
thereon is required or demanded as hereinafter provided. Upon a show of hands
every person who is present and entitled to vote shall have one vote. Whenever
a vote by show of hands shall have been taken upon a question, unless a ballot
thereon is so required or demanded, a declaration by the chairman of the
meeting that the vote upon the question has been carried or carried by a
particular majority or not carried and an entry to that effect in the minutes
of the meeting shall be prima facie evidence of the fact without proof of the
number or proportion of the votes recorded in favour of or against any
resolution or other proceeding in respect of the said question, and the result
of the vote so taken shall be the decision of the shareholders upon the said
question.

9.15     Ballots – On any question proposed for consideration at a meeting of
shareholders, and whether or not a show of hands has been taken thereon, any
shareholder or proxyholder entitled to vote at the meeting may require or
demand a ballot. A ballot so required or demand shall be taken in such manner
as the chairman shall direct. A requirement or demand for a ballot may be
withdrawn at any time prior to the taking of the ballot. If a ballot is taken
each person present shall be entitled, in respect of the shares which he is
entitled to vote, to that number of votes provided by the Act or the articles,
and the result of the ballot so taken shall be the decision of the shareholders
upon the said question.

9.16     Adjournment – If a meeting of shareholders is adjourned for less than
thirty (30) days, it shall not be necessary to give notice of the adjourned
meeting, other than by announcement at the earliest meeting that is adjourned.
If a meeting of shareholders is adjourned by one or more

12

 

adjournments for an aggregate of thirty (30) days or more, notice of the
adjourned meeting shall be given as for an original meeting.

9.17     Resolution in Writing – A resolution in writing signed by all the
shareholders entitled to vote on that resolution at a meeting of shareholders
is as valid as if it had been passed at a meeting of the shareholders unless a
written statement with respect to the subject matter of the resolution is
submitted by a director or the auditors in accordance with the Act.

9.18     Only One Shareholder – Where the Corporation has only one shareholder or
only on holder of any class or series of shares, the shareholder present in
person or by proxy constitutes a meeting.

SECTION X

NOTICES

10.1     Method of Giving Notices – Any notice (which term includes any
communication or document) to be given (which term includes sent, delivered or
served) pursuant to the Act, the regulations thereunder, the articles, the
by-laws or otherwise to a shareholder, director, officer, auditor or member of
a committee of the board shall be sufficiently given if delivered personally to
the person to whom it is to be given or if delivered to his recorded address or
if mailed to him at his recorded address by prepaid ordinary mail or air mail
or if sent to him at his recorded address by any means of prepaid transmitted
or recorded communication. A notice so delivered shall be deemed to have been
given when it is delivered personally or to the recorded address as aforesaid;
a notice so mailed shall be deemed to have been given when deposited in a post
office or public letter box; and a notice so sent by any means of transmitted
or recorded communication shall be deemed to have been given when dispatched or
delivered to the appropriate communication company or agency or its
representative for dispatch. The secretary may change or cause to be changed
the recorded address of any shareholder, director, officer, auditor or member
of a committee of the board in accordance with any information believed by him
to be reliable.

10.2     Notice of Joint Shareholders – If two or more persons are registered as
joint holders of any share, any notice shall be addressed to all of such joint
holders but notice to one of such persons shall be sufficient notice to all of
them.

10.3     Computation of Time – In computing the date when notice must be given
under any provision requiring a specified number of days’ notice of any meeting
or other event, the date of giving the notice shall be excluded and the date of
the meeting or other event shall be included.

10.4     Undelivered Notices – If any notice given to a shareholder pursuant to
subsection 10.1 is returned on three (3) consecutive occasions because he
cannot be found, the Corporation shall not be required to give any further
notices to such shareholder until he informs the Corporation in writing of his
new address.

10.5     Omissions and Errors – The accidental omission to give any notice to any
shareholder, director, officer, auditor or member of a committee of the board
or the non-receipt of any notice by any such person or any error in any notice
not affecting the substance thereof shall not invalidate any action taken at
any meeting held pursuant to such notice or otherwise founded thereon.

13

 

10.6     Persons Entitled by Death or Operation of Law – Every person who, by
operation of law, transfer, death of a shareholder or any other means
whatsoever, shall become entitled to any share, shall be bound by every notice
in respect of such share which shall have been duly given to the shareholder
from whom he derives his title to such share prior to his name and address
being entered on the securities register (whether such notice was given before
or after the happening of the event upon which he became so entitled) and prior
to his furnishing to the Corporation the proof of authority or evidence of his
entitlement prescribed by the Act.

10.7     Waiver of Notice – Any shareholder (or his duly appointed proxyholder),
director, officer, auditor or member of a committee of the board may at any
time waive notice, or waive or abridge the time for any notice, required to be
given to him under any provision of this Act, the regulations thereunder, the
articles, the by-laws or otherwise and such waiver or abridgment shall cure any
default in the giving or in the time of such notice, as the case may be. Any
such waiver or abridgement shall be in writing except a waiver of notice of a
meeting of shareholders or of the board which may be given in any manner.

SECTION XI

EFFECTIVE DATE

11.1     Effective Date – This by-law shall come into force when confirmed by the
shareholders in accordance with the Act.

     ENACTED, as amended, by the board the 25th day of October, 2001.

	 	 	 
	The President,	 	
The Secretary,
	 
	 
	(Signed) Thomas F. Bugg	 	
(Signed) Donald M. Boykiw
	
	 	

	THOMAS F. BUGG	 	
DONALD M. BOYKIW

     CONFIRMED, as amended, by the shareholders in accordance with the Act the
25th day of October, 2001.

	 	 	 
	 	 	
The Secretary,
	 
	 
	 	 	
(Signed) Donald M. Boykiw
	 	 	

	 	 	
DONALD M. BOYKIW

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]