ARTICLES OF INCORPORATION
OF
CITADEL INVESTMENT SYSTEMS, INC.
KNOW ALL MEN BY THESE PRESENTS that the undersigned Incorporator being a
natural person of the age of eighteen years of age or older and desiring to form
a body corporate under the laws of the State of Colorado does hereby sign,
verify and deliver in duplicate to the Secretary of State of the State of
Colorado these Articles of Incorporation:
ARTICLE I
NAME
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The name of the Corporation is CITADEL INVESTMENT SYSTEMS, INC.
ARTICLE II
PERIOD OF DURATION
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This Corporation shall exist in perpetuity, from and after the date of
filing these Articles of Incorporation with the Secretary of State of Colorado
unless and until dissolved according to the laws of the State of Colorado.
ARTICLE III
PURPOSES
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Section 1. Specific Purposes
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A. To engage in the business of developing computer based real
estate investment programs in digital form.
B. To provide management services to corporations utilizing real
estate computer programs.
Section 2. General Purposes
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A. To own, operate and maintain such real or personal property as
may be necessary to conduct such business and to do all of the things in
connection with the real or personal property which might be done by an
individual.
B. To hire and employ agents and employees, and to enter into
agreements of employment and collective bargaining agreements for the purpose of
advancement and performance of the purpose of this Corporation.
C. To carry on any other business, whether or not related to the
foregoing, including the transaction of all lawful business for which
corporations may be organized pursuant to the Colorado corporation Act, to have
and exercise all powers, privileges and immunities now or hereafter conferred
upon or permitted to corporations by the laws of the State of Colorado, and to
do any and all things herein set forth to the same extent as natural persons
could do insofar as permitted by the laws of the State of Colorado.
D. To do those things that are authorized and permitted by
Colorado Corporations Code.
E. To do all things authorized by law or incidental
thereto.
ARTICLE IV
POWERS
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The powers of the Corporation shall be those powers granted by Article Two
of the Colorado Corporate Code under which this Corporation is formed. In
addition, the Corporation shall have the following specific powers:
Section 1. Officers. The Corporation shall have the power to elect or
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appoint officers and agents of the Corporation and to fix their compensation.
Section 2. Capacity. The Corporation shall have the power to act as an
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agent for any individual, association, partnership, corporation or other legal
entity, and to act as general partner for any limited partnership.
Section 3. Acquisitions. The Corporation shall have the power to receive,
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acquire, hold, exercise rights arising our of ownership or possession thereof,
sell, or otherwise, dispose of, shares or other interests in, or obligations of,
individuals, associations, partnerships, corporations or governments.
Section 4. Earned Surplus. The Corporation shall have the power to
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receive, acquire, hold, pledge, transfer, or otherwise dispose of shares of the
Corporation, but such share may only be purchased, directly or indirectly, out
of earned surplus.
Section 5. Gifts. The Corporation shall have the power to make gifts or
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contributions for the public welfare or for charitable, scientific or
educational purposes.
ARTICLE V
CAPITAL STRUCTURE
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Section 1. Authorized Capital. The aggregate number of shares and the
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amount of the total authorized capital of said Corporation shall consist of
50,000,000 shares of common stock, no par value per share, and 5,000,000 shares
of non-voting preferred stock, no par value per share.
Section 2. Share Status. All common shares will be equal to each other,
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and when issued, shall be fully paid and nonassessable, and the private property
of shareholders shall not be liable for corporate debts. Preferred shares shall
have such preferences as the Directions may assign them prior to issuance. Each
holder of a common share of record shall have one vote for each share of stock
outstanding in his name on the books of the Corporation and shall be entitled to
vote said stock.
Section 3. Consideration for Shares. The common stock of the Corporation
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shall be issued for such consideration as shall be fixed from time to time by
the Board of Director. In the absence of fraud, the judgment of the Directors
as to the value of any property or services received in full or partial payment
for shares shall be conclusive. When shares are issued upon payment of the
consideration fixed by the Board of Directors, such shares shall be taken to be
fully paid stock and shall be nonassessable.
Section 4. Pre-Emptive Rights. Except as may otherwise be provided by the
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Board of Directors, holders of shares of stock of the Corporation shall have no
pre-emptive right to purchase, subscribe for or otherwise acquire shares of
stock of the Corporation, rights, warrants or options to purchase stocks or
securities of any kind convertible into stock of the Corporation.
Section 5. Dividends. Dividends in cash, property or shares of the
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Corporation may be paid, as and when declared by the Board of Directors, out of
funds of the Corporation to the extent and in the manner permitted by law.
Section 6. Distribution in Liquidation. Upon any liquidation, dissolution
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or winding up of the Corporation, and after paying or adequately providing for
the payment of all its obligations, the remainder of the assets of the
Corporation shall be distributed, either in cash or in kind, pro rata to the
holders of the common stock, subject to preferences, if any, granted to holders
of the preferred shares. The Board of Directors may, from time to time,
distribute to the shareholders in partial liquidation from stated capital of the
Corporation, in cash or property, without the vote of the shareholders, in the
manner permitted and upon compliance with limitations imposed by law.
ARTICLE VI
VOTING BY SHAREHOLDERS
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Section 1. Voting Rights; Cumulative Voting. Each outstanding share of
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common stock is entitled to one vote and each fractional share of common stock
is entitled to a corresponding fractional vote on each matter submitted to a
vote of the shareholders. Cumulative voting shall not be allowed in the
election of Directors of the Corporation and every shareholder entitled to vote
at such election shall have the right to vote the number of shares owned by him
for as many persons as there are Directors to be elected, and for whose election
he has a right to vote. Preferred shares have no voting rights unless granted
by amendment to this Article of Incorporation.
Section 2. Majority Vote. When, with respect to any action to be taken by
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the Shareholders of the Corporation, the Colorado Corporation Code requires the
vote or concurrence of the holders of two-thirds of the outstanding shares
entitled to vote thereon, or of any class or series, any and every such action
shall be taken, notwithstanding such requirements of the Colorado Corporations
Code, by the vote or concurrence of the holders of a majority of the outstanding
shares entitled to vote thereon, or of any class or series.
ARTICLE VII
REGISTERED AND INITIAL PRINCIPAL OFFICE AND REGISTERED AGENT
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The registered office and initial principal office of the Corporation is
located at 1291 South Lincoln Street, Denver, Colorado 80210, and the name of
the registered agent of the Corporation at such address is Edward H. Hawkins.
ARTICLE VIII
INCORPORATOR
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The name and address of the Incorporator is Edward H. Hawkins, 1291 South
Lincoln Street, Denver, Colorado 80210.
ARTICLE IX
BOARD OF DIRECTORS
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Section 1. The corporate powers shall be exercised by a majority of the
Board of Directors. The number of individuals to serve on the Board of
Directors shall be set forth in the Bylaws of the Corporation; provided,
however, that the initial Board of Directors shall consist of one person
below-named to manage the affairs of the Corporation until such time as he
resigns or his successor is elected by a majority vote of the Shareholders:
Name of Director Address
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Edward H. Hawkins 1291 South Lincoln Street,
Denver, Colorado 80210
Section 2. If in the interval between the annual meetings of shareholders
of the Corporation, the Board of Directors of the Corporation deems it desirable
that the number of Directors be increased, additional Directors may be elected
by a unanimous vote of the Board of Directors of the Corporation then in office,
or as otherwise set forth in the Bylaws of the Corporation.
Section 3. The number of Directors comprising the whole Board of Directors
may be increased or decreased from time to time within such foregoing limit as
set forth in the Bylaws of the Corporation.
ARTICLE X
POWERS OF THE BOARD OF DIRECTORS
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In furtherance and not in limitation of the powers conferred by the State
of Colorado, the Board of Directors is expressly authorized and empowered:
Section 1. Bylaws. To make, alter, amend and repeal the Bylaws, subject
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to the power of the shareholders to alter or repeal the Bylaws made by the Board
of Directors.
Section 2. Books and Records. Subject to applicable provisions of the
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Bylaws then in effect, to determined, from time to time, whether and to what
extent, and at what times and places, and under what conditions and regulations,
the accounts and books of the Corporation or any of them, shall be open to
shareholder inspection. No shareholder shall any right to inspect any of the
accounts, books or documents of the Corporation, except as permitted by law,
unless and until authorized to do so by the resolution of the Board of Directors
or of the shareholders of the Corporation.
Section 3. Power to Borrow. To authorize and issue, without shareholder
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consent, obligations of the Corporation, secured and unsecured, under such terms
and conditions as the Board, in its sole discretion, may determine, and to
pledge, or mortgage, as security therefor, any real or personal property of the
Corporation, including after-acquired property.
Section 4. Dividends. To determine whether any and, if so, what part, of
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the earned surplus of the Corporation shall be paid in dividends to the
shareholders, and to direct and determine other use and disposition of any such
earned surplus.
Section 5. Profits. To fix, from time to time, the amount of the profits
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of the Corporation to be reserved as working capital or for any other lawful
purposes.
Section 6. Employee's Plans. From time to time to provide and carry out
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and to recall, abolish, revise, amend, alter, or change a plan or plans for the
participation by all or any of the employees, including Directors and Officers
of this Corporation or of any corporation in which or in the welfare of which
the Corporation has any interest, and those actively engaged in the conduct of
this Corporation's business, in the profits of this Corporation or of any branch
of division thereof, as a part of this Corporation's legitimate expenses, and
for the furnishing to such employees and persons, or any of them , at this
Corporation's expense, of medical services, insurance against accident,
sickness, or death, pensions during old age, disability, or unemployment,
education, housing social services, recreation, or other similar aid for their
relief or general welfare, in such manner and upon such terms and condition as
may be determined by the Board of Directors.
Section 7. Warrants and Options. The Corporation, by resolution or
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resolutions of its Board of Directors, shall have power to create and issue,
whether or not in connection with the issue and sale of any shares of any other
securities of the Corporation, warrants, rights, or options entitling the
holders thereof to purchase from the Corporation any shares of any class or
classes of any other securities of the Corporation, such warrants, rights or
options to be evidenced by or in such instrument or instruments as shall be
approved by the Board of Directors. The terms upon which, the time or times
(which may be limited or unlimited in duration), and the price or prices (not
less than the minimum amount prescribed by law, if any) at which any such
warrants, rights or options may be issued and any such shares or other
securities may be purchased from the Corporation upon the exercise of such
warrant, right or option shall be such as shall be fixed and stated in the
resolution or resolutions of the Board of Directors providing for the creations
and issue of such warrants, rights or options. The Board of Directors is hereby
authorized to create and issue any such warrants, rights or options from time to
time for such consideration, and to such persons, firms, or corporations, as the
Board of Directors may determine.
Section 8. Compensation. To provide for the reasonable compensation of
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its own members, and to ix the terms and conditions upon which such compensation
will be paid.
Section 9. Not in Limitation. In addition to the powers and authority
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hereinabove, or by statute expressly conferred upon it, the Board of Directors
may exercise all such powers and do all such acts and things as may be exercised
or done by the Corporation, subject, nevertheless, to the provisions of the laws
of the State of Colorado, of these Articles of Incorporation and of the Bylaws
of the Corporation.
ARTICLE XI
RIGHT OF DIRECTORS OF CONTRACT WITH CORPORATION
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No contract or other transactions between this Corporation and one or more
of its Directors or any other corporation, firm, association, or entity in which
one or more of its Directors are directors or officers or are financially
interested shall be either void or voidable solely because of such relationship
or interest or solely because such directors are present at the meeting of the
Board of Directors or a committee thereof which authorizes, approves or ratifies
such contract or transaction or solely because their votes are counted for such
purposes if:
A. The fact of such relationship of interest is disclosed or known to
the Board of Directors or committee which authorizes, approves, or ratifies the
contract or transaction by a vote or consent sufficient for the purpose without
counting the votes of consents of such interested Directors; or
B. The fact of such relationship or interest is disclosed or known to
the shareholders entitled to vote and they authorize, approve or ratify such
contract or transaction by vote or written consent; or
C. The contact or transaction is fair and reasonable to the Corporation.
ARTICLE XII
CORPORATE OPPORTUNITY
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The officers, Directors and other members of management of the Corporation
shall be subject to the doctrine of "corporate opportunities" only insofar as it
applies to business opportunities in which this Corporation has expressed an
interest as determined from time to time by this Corporation's Board of
Directors as evidenced by resolutions appearing in the Corporation's minutes.
Once such areas of interest are delineated, all such business opportunities
within such areas of interest which come to the attention of the officers,
Directors and other members of management of this Corporation shall be disclosed
promptly to this Corporation and made available to it. The Board of Directors
may reject any business opportunity presented to it and thereafter any officer,
Director or other member of management may avail himself of such opportunity.
Until such time as this Corporation, through its Board of Directors, has
designated an area of interest, the officers, Directors and other members of
management of this Corporation shall be free to engage in such areas of interest
on their own and this doctrine shall not limit the right of any officer,
Director or other member of management of this Corporation to continue a
business existing prior to the time that such area of interest is designated by
the Corporation. This provision shall not be construed to release any employee
of this Corporation (other than an officer, Director, or other member of
management) from any duties, which he may have to this Corporation.
ARTICLE XIII
INDEMNIFICATION OF OFFICERS, DIRECTORS AND OTHERS
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The Board of Directors of the Corporation shall have the power to:
A. Indemnify any person who was or is a party of is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Corporation), by reason of the fact that he is or was
a director, officer, employee or agent of the Corporation or is or was serving
at the request of the Corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorney's fees), judgments, fines and amounts paid
in settlement actually and reasonable incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonable believed to be in the best interests of the Corporation and, with
respect to any criminal action or proceedings, had no reasonable cause to
believe his conduct was unlawful. The termination of any such action, suit or
proceeding by judgment, order, settlement or conviction or upon a plea or nolo
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contendereor its equivalent shall not of itself create a presumption that the
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person did not act in good faith and in a manner which he reasonably believed to
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be in the best interests of the Corporation and, with respect to any criminal
action or proceeding, had reasonable cause to believe that his conduct was
lawful.
B. Indemnify any person who was or is threatened to be made a party to
any threatened, pending or completed action or suit by or in the right of the
Corporation to procure a judgment in its favor by reason of the fact that he is
or was a director, officer, employee or agent of the Corporation or is or was
serving at the request of the Corporation as a director, officer, employee or
agent of the Corporation, partnership, joint venture, trust of other enterprises
against expenses (including attorney's fees) actually and reasonably incurred by
him in connection with the defense or settlement of such action or suit if he
acted in good faith in a manner he reasonably believed to be in the best
interests of the Corporation; but no indemnification shall be made in the
respect of any claim, issue or matter as to which such person has been adjudged
to be liable for negligence or misconduct in the performance of his duty to the
Corporation unless and only to the extent that the court in which such action or
suit was brought determines upon application that, despite the adjudication of
liability, but in view of all circumstances of the case, such person is fairly
and reasonably entitled to indemnification for such expenses which such court
deems proper.
C. Indemnify a Director, officer, employee or agent of the Corporation
to the extent that such person has been successful on the merits in defense of
any action, suit or proceeding referred to in Subparagraph A or B of this
Article of in defense of any claim, issue or matter therein, against expenses
(including attorney's fees) actually and reasonable incurred by him in
connection therewith.
D. Authorize indemnification under Subparagraph A or B of this Article
(unless ordered by a court) in the specific case upon a determination that
indemnification of the Director, officer, employee or agent is proper in the
circumstances because he has met the applicable standard of conduct set forth in
Subparagraph A or B. Such determination shall be made by the Board of Directors
by a majority vote of a quorum consisting of directors who were not parties to
such action, suite or proceeding, or is such a quorum is not obtainable or even
if obtainable a quorum of disinterested directors so directs, by independent
legal counsel in a written opinion, or by the shareholders.
E. Authorize payment of expenses (including attorney's fees) incurred
in defending a civil or criminal action, suit or proceeding in advance of the
final disposition of such action, suite or proceeding as authorized in
Subparagraph D of this Article upon receipt of any undertaking by or on behalf
of the Director, officer, employee or agent to repay such amount unless it is
ultimately determined that he is entitled to be indemnified by the Corporation
as authorized in this Article.
F. Purchase and maintain insurance on behalf of any person who is or
was a director, officer, employee or agent of the Corporation or who is or was
serving at the request of the Corporation as a Director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise against any liability asserted against him and incurred by him in any
such capacity or arising out of his status as such, whether or not the
Corporation would have the power to indemnify him against such liability under
the provision of this Article.
The indemnification provided by the Article shall not be deemed exclusive
of any other rights to which those indemnified may be entitled under these
Articles of Incorporation, and the Bylaws, agreement, vote of shareholders or
disinterested directors or otherwise, and any procedure provided for by any of
the foregoing, both as to action in his official capacity and as to action in
another capacity while holding such office, and shall continue as to a person
who has ceased to be a Director, officer, employee or agent and shall inure to
the benefit of heirs, executors and administrators of such a person.
ARTICLE XIV
RIGHT TO AMEND
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The right is expressly reserved to amend, alter, change or repeal any
provision or provisions contained in these Articles of Incorporation or any
Article herein by a majority vote of the members of the Board of Directors, and
a majority vote of the shareholders of the Corporation.
IN WITNESS WHEREOF, the undersigned has set his hand and seal the 13th day
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of July, 1995.
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/s/ Edward H. Hawkins
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Edward H. Hawkins, Incorporator
CONSENT OF AGENT
The undersigned hereby consents to the appointment as agent for the above
named Corporation under the Section 105 of the Colorado Business Corporation
Act, until such times as he resigns such position.
/s/ Edward H. Hawkins
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Edward H. Hawkins, Agent
1291 So. Lincoln St.
Denver, CO 80210