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<SEC-DOCUMENT>0000950123-11-010740.txt : 20110209
<SEC-HEADER>0000950123-11-010740.hdr.sgml : 20110209
<ACCEPTANCE-DATETIME>20110209082644
ACCESSION NUMBER:		0000950123-11-010740
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20110208
ITEM INFORMATION:		Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110209
DATE AS OF CHANGE:		20110209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSTEEL INDUSTRIES INC
		CENTRAL INDEX KEY:			0000764401
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				560674867
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09929
		FILM NUMBER:		11584558

	BUSINESS ADDRESS:	
		STREET 1:		1373 BOGGS DR
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030
		BUSINESS PHONE:		9107862141

	MAIL ADDRESS:	
		STREET 1:		1373 BOGGS DRIVE
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EXPOSAIC INDUSTRIES INC
		DATE OF NAME CHANGE:	19880511
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g26049e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#G26049toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): February&nbsp;8, 2011</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>Commission File Number 1-9929</B></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Insteel Industries, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>56-0674867</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>1373 Boggs Drive, Mount Airy, North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>27030</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
Registrant&#146;s telephone number, including area code: (<B>336) 786-2141</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</TD>
</TR>
</TABLE>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<!-- TOC -->
<A name="G26049toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#G26049000">Item&nbsp;5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</A></TD></TR>
<TR><TD colspan="9"><A HREF="#G26049001">Item&nbsp;5.07. Submission of Matters to a Vote of Security Holders</A></TD></TR>
<TR><TD colspan="9"><A HREF="#G26049002">Item&nbsp;8.01. Other Events</A></TD></TR>
<TR><TD colspan="9"><A HREF="#G26049003">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#G26049004">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#G26049005">EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="g26049exv3w2.htm">EX-3.2</A></TD></TR>
<TR><TD colspan="9"><A HREF="g26049exv99w1.htm">EX-99.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#G26049toc">Table of Contents</A></H5><P>


<!-- link1 "Item&nbsp;5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year" -->
<DIV align="left"><A NAME="G26049000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2011, the Board of Directors (the &#147;Board&#148;) of Insteel Industries, Inc. (the
&#147;Company&#148;) approved an amendment to the Company&#146;s Bylaws (the &#147;Bylaws&#148;), effective immediately (the
&#147;Amendment&#148;). The Amendment revised the first sentence of Article&nbsp;3, Section&nbsp;2 of the Bylaws to
read as follows: &#147;The number of directors constituting the board of directors shall be not less
than six nor more than ten, the precise number to be determined from time to time by resolution of
the board of directors.&#148; The Bylaws previously provided for a Board constituted of not less than
seven nor more than twelve directors as fixed by a shareholder or Board resolution or, in the
absence of such a resolution, the number of directors elected at the prior Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A complete copy of the Bylaws, as amended, is included as Exhibit&nbsp;3.2 to this Current Report
on Form 8-K and incorporated herein by reference.
</DIV>
<!-- link1 "Item&nbsp;5.07. Submission of Matters to a Vote of Security Holders" -->
<DIV align="left"><A NAME="G26049001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5.07. Submission of Matters to a Vote of Security Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company held its 2011 Annual Meeting of Shareholders (the &#147;Annual Meeting&#148;) on February&nbsp;8,
2011. Set forth below is a brief description of each item submitted to a vote of the shareholders
at the Annual Meeting and the final voting results for each item. A more complete description of
each item is set forth in the Company&#146;s proxy statement for the Annual Meeting.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;Number One &#151; Election of Directors</U></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the two nominees named in the proxy statement for the Annual Meeting were elected by
the shareholders to the Board for three-year terms based on the following vote:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Broker</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Nominee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes Withheld</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Non-Votes</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Gary L. Pechota
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>12,328,367</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1,742,753</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>2,322,216</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">W. Allen Rogers II
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>12,388,964</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1,682,156</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>2,322,216</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;Number Two &#151; Advisory Vote on the Compensation of the Company&#146;s Executive Officers</U></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation of the Company&#146;s executive officers was approved, on an advisory basis, by
the shareholders based on the following vote:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Broker</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Abstentions</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Non-Votes</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>11,340,800</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>2,730,321</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>2,322,216</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;Number Three &#151; Advisory Vote on the Frequency of the Advisory Vote on the Compensation of
the Company&#146;s Executive Officers</U></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shareholders recommended, on an advisory basis, that the advisory vote on the compensation
of the Company&#146;s executive officers should be held on an annual basis based on the following vote:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Broker</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>1 Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>2 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>3 Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Abstentions</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Non-votes</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>8,440,739</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1,393,978</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>4,158,451</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>2,400,167</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Item&nbsp;Number Four &#151; Ratification of the Appointment of Grant Thornton LLP</U></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The appointment of Grant Thornton LLP as the Company&#146;s independent registered public
accounting firm for the Company&#146;s fiscal year 2011 was ratified by the shareholders based on the
following vote:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes For</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Votes Against</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Abstentions</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>15,834,615</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>558,720</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#G26049toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "Item&nbsp;8.01. Other Events" -->
<DIV align="left"><A NAME="G26049002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8.01. Other Events</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;8, 2011, the Company issued a press release announcing that the Board had declared
a quarterly cash dividend of $0.03 per share payable on April&nbsp;8, 2011 to shareholders of record as
of March&nbsp;25, 2011. A copy of this release is furnished as Exhibit&nbsp;99.1 to this Current Report on
Form 8-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Company intends to pay regular quarterly cash dividends for the foreseeable future,
the declaration and payment of future dividends, if any, are discretionary and will be subject to
determination by the Board each quarter after taking into account various factors, including
general business conditions and the Company&#146;s financial condition, operating results, cash
requirements and expansion plans.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Cautionary Note Regarding Forward-Looking Statements</I></U></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This report contains forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 with respect to the Company&#146;s
intent and ability to pay future dividends. Although the Company believes that its plans,
intentions and expectations reflected in or suggested by such forward-looking statements are
reasonable, such forward-looking statements are subject to a number of risks and uncertainties, and
the Company can provide no assurances that such plans, intentions or expectations will be
implemented or achieved. Many of these risks and uncertainties are discussed in detail in the
Company&#146;s reports and statements that it files with the U.S. Securities and Exchange Commission, in
particular in its Annual Report on Form 10-K for the year ended October&nbsp;2, 2010. You should
carefully review these risks and uncertainties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All forward-looking statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and the Company
does not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
</DIV>
<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="G26049003"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>(d)&nbsp;Exhibits</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
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    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended Bylaws of the Company.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated February&nbsp;8, 2011 announcing declaration
of a quarterly cash dividend of $0.03 per share.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#G26049toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="G26049004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SIGNATURES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U>INSTEEL INDUSTRIES, INC.</U><BR>
Registrant<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: February 8, 2011&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/  James F. Petelle
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">James F. Petelle&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"><A NAME="G26049005"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended Bylaws of Insteel Industries, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated February&nbsp;8, 2011 announcing declaration of a
quarterly cash dividend of $0.03 per share.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2
<SEQUENCE>2
<FILENAME>g26049exv3w2.htm
<DESCRIPTION>EX-3.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv3w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;3.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BYLAWS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>OF</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INSTEEL INDUSTRIES, INC.</B>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Effective August&nbsp;21, 1990<br>
As last amended February&nbsp;8, 2011
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS TO BYLAWS<BR>
OF INSTEEL INDUSTRIES, INC.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 1- OFFICES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Principal and Registered Office</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Other Offices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 2- MEETINGS OF SHAREHOLDERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Place of Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Annual Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Substitute Annual Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Special Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Notice of Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Quorum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7. Shareholders&#146; List</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8. Voting of Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9. Inspectors of Election</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10. Action Without Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11. Action to Be Taken at Annual or Special Meetings of Shareholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 3- BOARD OF DIRECTORS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. General Powers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Number, Term and Qualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Removal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Vacancies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 4- MEETINGS OF DIRECTORS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Annual and Regular Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Special Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Notice of Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Quorum</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Manner of Acting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Presumption of Assent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7. Action Without Meeting</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8. Meeting by Communications Device</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 5- COMMITTEES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Election and Powers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Removal; Vacancies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Meetings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Minutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 6- OFFICERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Titles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Election; Appointment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Removal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Vacancies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Chairman and Vice Chairman of the Board of Directors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7. Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8. President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9. Vice Presidents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;10. Secretary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;11. Assistant Secretaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;12. Treasurer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;13. Assistant Treasurers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;14. Controller and Assistant Controllers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;15. Voting Upon Stocks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 7- CAPITAL STOCK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Certificates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Transfer of Shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Transfer Agent and Registrar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Regulations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Fixing Record Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Lost Certificates</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 8- INDEMNIFICATION OP DIRECTORS AND OFFICERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Indemnification Provisions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Settlements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Litigation Expense Advances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Approval of Indemnification Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Suits by Claimant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7. Consideration; Personal Representatives and Other Remedies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8. Scope of Indemnification Rights</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE 9- GENERAL PROVISIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1. Dividends and Other Distributions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2. Seal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3. Waiver of Notice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4. Checks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5. Fiscal Year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6. Amendments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7. Applicability of Antitakeover Statutes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BYLAWS QF</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>INSTEEL INDUSTRIES. INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE 1- OFFICES</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Principal and Registered Office</U>. The principal office of the corporation
shall be located at 1373 Boggs Drive, Mount Airy, North Carolina, which shall also be the
registered office of the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Other Offices</U>. The corporation may have offices at such other places,
either within or without the State of North Carolina, as the board of directors may from time to
time determine.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE 2- MEETINGS OF SHAREHOLDERS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Place of Meeting</U>. Meetings of shareholders shall be held at the principal
office of the corporation, or at such other place, either within or without the State of North
Carolina, as shall be designated in the notice of the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Annual Meeting</U>. The annual meeting of shareholders shall be held at such
time and on such day (except a Saturday, Sunday or legal holiday) during the month of February in
each year as the directors shall from time to time determine for the purpose of electing directors
of the corporation and the transaction of such other business as may be properly brought before the
meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Substitute Annual Meeting</U>. If the annual meeting is not held on the day
designated by these bylaws, a substitute annual meeting may be called in accordance with Section&nbsp;4
of this Article. A meeting so called shall be designated and treated for all purposes as the
annual meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Special Meetings</U>. Special meetings of the shareholders may be called at
any time by the resident or the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Notice of Meetings</U>. At least 10 and no more than 60&nbsp;days prior to any
annual or special meeting of shareholders, the corporation shall notify shareholders of the date,
time and place of the meeting and, in the case of a special or substitute annual meeting or where
otherwise required by law, shall briefly describe the purpose or purposes of the meeting. Only
business within the purpose or purposes described in the notice may be taken at a special meeting.
Unless otherwise required by the articles of incorporation or by law (for example, in the event of
a meeting to consider the adoption of a plan of merger or share exchange, a sale of assets other
than in the ordinary course of business or a voluntary dissolution), the corporation shall be
required to give notice only to shareholders entitled to vote at the meeting. If an annual or
special shareholders&#146; meeting is adjourned to a different date, time or place, notice thereof need
not be given if the new date, time or place is announced at the meeting before adjournment. If a
new record date for the adjourned meeting is fixed pursuant to Article&nbsp;7, Section&nbsp;5 hereof, notice
of the adjourned meeting shall be given to persons who are shareholders as of the new record date.
It shall be the primary responsibility of the secretary to give the notice, but notice may be
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">given by or at the direction of the president or other person or persons calling the meeting. If mailed,
such notice shall be deemed to be effective when deposited in the United States mail with postage
thereon prepaid, correctly addressed to the shareholder&#146;s address shown in the corporation&#146;s
current record of shareholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Quorum</U>. A majority of the votes entitled to be cast by a voting group on a
matter, represented in person or by proxy at a meeting of shareholders, shall constitute a quorum
for that voting group for any action on that matter, unless quorum requirements are otherwise fixed
by a court of competent jurisdiction acting pursuant to Section&nbsp;55-7-03 of the General Statutes of
North Carolina. Once a share is represented for any purpose at a meeting, it is deemed present for
quorum purposes for the remainder of the meeting and any adjournment thereof, unless a new record
date is or must be set for the adjournment. Action may be taken by a voting group at any meeting
at which a quorum of that voting group is represented, regardless of whether action is taken at
that meeting by any other voting group. In the absence of a quorum at the opening of any meeting
of shareholders, such meeting may be adjourned from time to time by a vote of the majority of the
shares voting on the motion to adjourn.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Shareholders&#146; List</U>. After a record date is fixed for a meeting, the
secretary of the corporation shall prepare an alphabetical list of the names of all its
shareholders who are entitled to notice of the shareholders&#146; meeting. Such list shall be arranged
by voting group (and within each voting group by class or series of shares) and shall show the
address of and number of shares held by each shareholder. The shareholders&#146; list shall be made
available for inspection by any shareholder beginning two business days after notice of the meeting
is given for which the list was prepared and continuing through the meeting, at the corporation&#146;s
principal office or at such other place identified in the meeting notice in the city where the
meeting will be held. The corporation shall make the shareholders&#146; list available at the meeting,
and any shareholder or his agent or attorney is entitled to inspect the list at any time during the
meeting or any adjournment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Voting of Shares</U>. Except as otherwise provided by the articles of
incorporation or by law, each outstanding share of voting capital stock of the corporation shall be
entitled to one vote on each matter submitted to a vote at a meeting of the shareholders. Unless
otherwise provided in the articles of incorporation, cumulative voting for directors shall not be
allowed. Action on a matter by a voting group for which a quorum is present is approved if the
votes cast within the voting group favoring the action exceed the votes cast opposing the action,
unless the vote of a greater number is required by law or by the articles of incorporation. Voting
on all matters shall be by voice vote or by a show of hands, unless the holders of one-tenth of the
shares represented at the meeting shall demand a ballot vote on a particular matter. Absent
special circumstances, the shares of the corporation are not entitled to vote if they are owned,
directly or indirectly, by a second corporation, domestic or foreign, and the corporation owns,
directly or indirectly, a majority of the shares entitled to vote for directors of the second
corporation, except that this provision shall not limit the power of the corporation to vote shares
held by it in a fiduciary capacity.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Inspectors of Election</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Appointment of inspectors of election</U>. In advance of any meeting of shareholders,
the board of directors may appoint any persons, other than nominees for office, as inspectors of
election to act at such meeting or any adjournment thereof. If inspectors of election are not so
appointed, the chairman of any such meeting may, and on the request of any shareholder or his proxy
shall, appoint inspectors of election at the meeting. The number of inspectors shall be either one
or three. If appointed at a meeting on the request of one or more shareholders or proxies, the
majority of shares present shall determine whether one or three inspectors are to be appointed. In
case any person appointed as inspector fails to appear or fails or refuses to act, the vacancy may
be filled by appointment by the board of directors in advance of the meeting, or at the meeting by
the person acting as chairman.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Duties of inspectors</U>. The inspectors of election shall determine the number of
shares outstanding and the voting power of each, the shares represented at the meeting, the
existence of a quorum, the authenticity, validity, and effect of proxies, receive votes, ballots,
or consents, hear and determine all challenges and questions in any way arising in connection with
the right to vote, count and tabulate all votes or consents, determine the result, and do such acts
as may be proper to conduct the election or vote with fairness to all shareholders. The inspectors
of election shall perform their duties impartially, in good faith, to the best of their ability and
as expeditiously as is practical.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Vote of inspectors</U>. If there are three inspectors of election the decision, act,
or certificate of a majority is effective in all respects as the decision, act, or certificate of
all.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Report of inspectors</U>. On request of the chairman of the meeting or of any
shareholder or his proxy the inspectors shall make a report in writing of any challenge or question
or matter determined by them and execute a certificate of any fact found by them. Any report or
certificate made by them is prima facie evidence of the facts stated therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Action Without Meeting</U>. Any action which the share-holders could take at
a meeting may be taken without a meeting if one or more written consents, setting forth the action
taken, shall be signed, before or after such action, by all the shareholders who would be entitled
to vote upon the action at a meeting. The consent shall be delivered to the corporation for
inclusion in the minutes or filing with the corporate records. The corporation must give its
nonvoting shareholders written notice of the proposed action at least 10&nbsp;days before the action is
taken, which notice must contain or be accompanied by the same material that would have been
required by law to be sent to nonvoting shareholders in a notice of meeting at which the proposed
action would have been submitted to the shareholders for action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Action to Be Taken at Annual or Special Meetings of Shareholders</U>.
Business to be conducted at meetings of shareholders shall be limited to (a)&nbsp;business properly
specified in the notice of meeting given as provided in Article&nbsp;2, Section&nbsp;5 hereof; (b)&nbsp;business
otherwise properly brought before the meeting by or at the direction of the board of directors; and
(c)&nbsp;business (which may include nominations for director if in accordance with the procedures
established herein) otherwise properly brought before the meeting by a holder of voting securities
entitled to vote at the meeting in compliance with the procedures set forth in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">this Section&nbsp;11. In addition to any other applicable requirements, including, but not limited to, requirements
established pursuant to Section 14(a) of the Securities Exchange Act of 1934, as amended (the
&#147;Exchange Act&#148;), and the rules and regulations adopted thereunder, no business may be brought
before an annual or special meeting by a holder of voting securities pursuant to (c)&nbsp;above, unless
the shareholder has given timely, accurate and complete notice in writing to the secretary of the
corporation as required by this Section&nbsp;11. In the case of an annual meeting, to be timely, notice
must be delivered to, or mailed to and received by, the secretary of the corporation at the
principal offices of the corporation not less than 90&nbsp;days prior to the anniversary of the mailing
date for the prior year&#146;s annual meeting proxy statement. In the case of a special meeting, to be
timely, notice must be delivered to, or mailed to and received by, the secretary of the corporation
at the principal offices of the corporation not less than 90&nbsp;days prior to the date of the special
meeting; provided, however, that if less than 100&nbsp;days&#146; notice or prior public disclosure of the
meeting is given or made by the corporation, notice will be timely if received not later than the
close of business on the tenth day following the day on which such notice or public disclosure of
the meeting was given or made. Neither the postponement or adjournment of an annual meeting, nor
the prior public disclosure of such postponement or adjournment, shall commence a new time period
for the giving of a shareholder&#146;s notice pursuant to (c)&nbsp;above. For purposes of this Section&nbsp;11,
&#147;prior public disclosure&#148; shall mean disclosure (i)&nbsp;in a press release either transmitted to the
principal securities exchange on which shares of the corporation&#146;s common stock are traded or
reported by a recognized news service or (ii)&nbsp;in a document publicly filed by the corporation with
the Securities and Exchange Commission pursuant to the Exchange Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to any requirements imposed by applicable law (including, but not limited to,
Section 14(a) of the Exchange Act and the rules and regulations adopted thereunder), notice of the
business to be brought before an annual or special meeting pursuant to (c)&nbsp;above shall set forth
the following as to each matter the holder of voting securities proposes to bring before the
meeting: (i)&nbsp;a brief description of the business desired to be brought before the meeting and the
reasons for bringing such business before the meeting; (ii)&nbsp;the name and address, as they appear on
the corporation&#146;s books, of each holder of voting securities proposing such business and each
Shareholder Associated Person (as defined below); (iii)&nbsp;the classes and number of shares or other
securities of the corporation that are owned of record or beneficially by such holder; and by each
Shareholder Associated Person; (iv)&nbsp;any material interest of such holder and each Shareholder
Associated Person in such business other than such person&#146;s interest as a shareholder of the
corporation (including any anticipated benefit to the shareholder or Shareholder Associated Person
therefrom); (v)&nbsp;to the extent known by the shareholder giving the notice, the name and address of
any other shareholder supporting the proposal on the date of such shareholder&#146;s notice; and (vi)
whether and the extent to which any hedging or other transaction or series of transactions has been
entered into by or on behalf of such shareholder or Shareholder Associated Person with respect to
any share of the corporation, or any other agreement, arrangement or understanding (including any
short position or any borrowing or lending of shares of the corporation) has been made, the effect
or intent of which is to mitigate loss to or manage risk of stock price changes for, or to increase
the voting power of, such shareholder or Shareholder Associated Person with respect to any share of
the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nominations for election to the board of directors may be made pursuant to (c)&nbsp;above by a
holder of securities entitled to vote for the election of directors if written notice of
the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">nomination of such person(s) shall have been delivered to the secretary of the corporation in
accordance with the provisions of this Article&nbsp;2, Section&nbsp;11 and such notice shall set forth the
information required herein with respect to matters to be brought by a shareholder, as well as (i)
the name and address of the person(s) to be nominated by the shareholder; (ii)&nbsp;a representation
that the shareholder intends to appear in person or by proxy at the meeting to nominate the
person(s) specified in the notice; (iii)&nbsp;a description of all arrangements or understandings
between the shareholder (and any Shareholder Associated Person) and each nominee and any other
person(s) (naming such person(s)) pursuant to which the nomination(s) are to be made by the
shareholder; (iv)&nbsp;such other information regarding each such nominee as would be required to be
included in a proxy statement filed pursuant to Section 14(a) of the Exchange Act and the rules and
regulations adopted thereunder if the nominee had been nominated by the board of directors or a
committee thereof; and (v)&nbsp;the written consent of each nominee to be nominated and to serve as a
director of the corporation if so elected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If information submitted pursuant to this Article&nbsp;2, Section&nbsp;11, by any shareholder proposing
any proposal for other business at the annual meeting shall be inaccurate to a material extent,
such information may be deemed not to have been provided in accordance with this Article&nbsp;2, Section
11. Upon written request by the secretary of the corporation or the Board of Directors, any
shareholder proposing any proposal for other business at a meeting of the shareholders shall
provide, within five business days of delivery of such request (or such other period as may be
specified in such request), (1)&nbsp;written verification, satisfactory, in the discretion of the Board
of Directors or any authorized officer of the corporation, to demonstrate the accuracy of any
information submitted by the shareholder pursuant to this Article&nbsp;2, Section&nbsp;11, or (2)&nbsp;a written
update of any information previously submitted by the shareholder pursuant to this Article&nbsp;2,
Section&nbsp;11 as of an earlier date. If a shareholder fails to provide such written verification or
written update within such period, the information as to which written verification or a written
update was requested may be deemed not to have been provided in accordance with this Article&nbsp;2,
Section&nbsp;11.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Article&nbsp;2, Section&nbsp;11, &#147;Shareholder Associated Person&#148; of any shareholder
shall mean (i)&nbsp;any person controlling, directly or indirectly, or acting in concert with, such
shareholder, (ii)&nbsp;any beneficial owner of shares of stock of the corporation owned of record or
beneficially by such shareholder, and (iii)&nbsp;any person controlling, controlled by or under common
control with such Shareholder Associated Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in these bylaws to the contrary, no business shall be conducted at an
annual or special meeting except in accordance with the provisions set forth in this Section&nbsp;11. If
the chairman of the meeting determines that any business was not properly submitted, the chairman
shall so declare to the meeting, and to the extent permitted by law, any such business not properly
submitted shall not be transacted at the meeting. All judgments made by the chairman of the meeting
as to submission of proposals shall be final and binding unless determined by a court of competent
jurisdiction to have clearly been made in bad faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>(Article&nbsp;2, Section&nbsp;11 was adopted by the Board of Directors effective April&nbsp;26, 1999. and
amended by the Board of Directors on April&nbsp;21, 2009)</I>
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE 3- BOARD OF DIRECTORS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>General Powers</U>. The business and affairs of the corporation shall be
managed under the direction of the board of directors except as otherwise provided by the articles
of incorporation or by a valid shareholders&#146; agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Number, Term and Qualification</U>. The number of directors constituting the
board of directors shall be not less than six nor more than ten, the precise number to be
determined from time to time by resolution of the board of directors. The directors shall be
divided into three classes, as nearly equal in number as may be, to serve in the first instance for
terms of one, two and three years, respectively, and until their successors shall be elected and
shall qualify, and thereafter the successors in each class of directors shall be elected to serve
for terms of three years and until their successors shall be elected and shall qualify. In the
event of any increase or decrease in the number of directors, the additional or eliminated
directorships shall be so classified or chosen that all classes of directors shall remain or become
equal in number, as nearly as may be. In the event of the death, resignation, retirement, removal
or disqualification of a director during his elected term of office, his successor shall be elected
to serve only until the expiration of the term of his predecessor. Directors need not be residents
of the State of North Carolina or shareholders of the corporation unless the articles of
incorporation so provide. This Section&nbsp;2, although adopted by a vote of the corporation&#146;s
shareholders, may be amended or repealed by the corporation&#146;s Board of Directors without a
shareholder vote.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Removal</U>. Directors may be removed from office with or without cause
(unless the articles of incorporation provide that directors may be removed only for cause)
provided the notice of the shareholders&#146; meeting at which such action is to be taken states that a
purpose of the meeting is removal of the director and the number of votes cast to remove the
director exceeds the number of votes cast not to remove him.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Vacancies</U>. Except as otherwise provided in the articles of incorporation,
a vacancy occurring in the board of directors, including, without limitation, a vacancy resulting
from an increase in the number of directors or from the failure by the shareholders to elect the
full authorized number of directors, may be filled by a majority of the remaining directors or by
the sole director remaining in office. The shareholders may elect a director at any time to fill a
vacancy not filled by the directors. A director elected to fill a vacancy shall be elected for the
unexpired term of his predecessor in office.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Compensation</U>. The directors shall not receive compensation for their
services as such, except that by resolution of the board of directors, the directors may be paid
fees, which may include but are not restricted to fees for attendance at meetings of the board or
of a committee, and they may be reimbursed for expenses of attendance. Any director may serve the
corporation in any other capacity and receive compensation therefor.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>ARTICLE 4- MEETINGS OF DIRECTORS</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Annual and Regular Meetings</U>. The annual meeting of the board of directors
shall be held immediately following the annual meeting of the shareholders. The board of directors
may by resolution provide for the holding of regular meetings of the board on specified
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">dates and at specified times. Notice of regular meetings held at the principal office of the corporation and
at the usual scheduled time shall not be required. If any date for which a regular meeting is
scheduled shall be a legal holiday, the meeting shall be held on a date designated in the notice of
the meeting, if any, during either the same week in which the regularly scheduled date falls or
during the preceding or following week. Regular meetings of the board shall be held at the
principal office of the corporation or at such other place as may be designated in the notice of
the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Special Meetings</U>. Special meetings of the board of directors may be called
by or at the request of the chairman of the board, the president or any two directors. Such
meetings may be held at the time and place designated in the notice of the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Notice of Meetings</U>. Unless the articles of incorporation provide
otherwise, the annual and regular meetings of the board of directors may be held without notice of
the date, time, place or purpose of the meeting. The secretary or other person or persons calling
a special meeting shall give notice by any usual means of communication to be sent at least two
days before the meeting if notice is sent by means of telephone, telecopy or personal delivery and
at least five days before the meeting if notice is sent by mail. A director&#146;s attendance at, or
participation in, a meeting for which notice is required shall constitute a waiver of notice,
unless the director at the beginning of the meeting (or promptly upon arrival) objects to holding
the meeting or transacting business at the meeting and does not thereafter vote for or assent to
action taken at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Quorum</U>. Except as otherwise provided in the articles of incorporation, a
majority of the directors in office shall constitute a quorum for the transaction of business at a
meeting of the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Manner of Acting</U>. Except as otherwise provided in the articles of
incorporation, the act of the majority of the directors present at a meeting at which a quorum is
present shall be the act of the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Presumption of Assent</U>. A director of the corporation who is present at a
meeting of the board of directors at which action on any corporate matter is taken is deemed to
have assented to the action taken unless he objects at the beginning of the meeting (or promptly
upon arrival) to holding, or transacting business at, the meeting, or unless his dissent or
abstention is entered in the minutes of the meeting or unless he shall file written notice of his
dissent or abstention to such action with the presiding officer of the meeting before its
adjournment or with the corporation immediately after adjournment of the meeting. The right of
dissent or abstention shall not apply to a director who voted in favor of such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Action Without Meeting</U>. Unless otherwise provided in the articles of
incorporation, action required or permitted to be taken at a meeting of the board of directors may
be taken without a meeting if the action is taken by all members of the board. The action must be
evidenced by one or more written consents signed by each director before or after such action,
describing the action taken, and included in the minutes or filed with the corporate records.
Action taken without a meeting is effective when the last director signs the consent, unless the
consent specifies a different effective date.
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Meeting by Communications Device</U>. Unless otherwise provided in the
articles of incorporation, the board of directors may permit any or all directors to participate in
a regular or special meeting by, or conduct the meeting through the use of, any means of
communication by which all directors participating may simultaneously hear each other during the
meeting. A director participating in a meeting by this means is deemed to be present in person at
the meeting.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE
5- COMMITTEES</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Election and Powers</U>. Unless otherwise provided by the articles of
incorporation, a majority of the board of directors may create one or more committees and appoint
two or more directors to serve at the pleasure of the board on each such committee. To the extent
specified by the board of directors or in the articles of incorporation, each committee shall have
and may exercise the powers of the board in the management of the business and affairs of the
corporation, except that no committee shall have authority to do the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Authorize distributions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Approve or propose to shareholders action required to be approved by shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Fill vacancies on the board of directors or on any of its committees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Amend the articles of incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Adopt, amend or repeal the bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Approve a plan of merger not requiring shareholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Authorize or approve the reacquisition of shares, except according to a formula or method
prescribed by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Authorize or approve the issuance, sale or contract for sale of shares, or determine the
designation and relative rights, preferences and limitations of a class or series of shares, except
that the board of directors may authorize the executive committee (or a senior executive officer of
the corporation) to do so within limits specifically prescribed by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Removal; Vacancies</U>. Any member of a committee may be removed at any time
with or without cause, and vacancies in the membership of a committee by means of death,
resignation, disqualification or removal shall be filled by a majority of the whole board of
directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Meetings</U>. The provisions of Article&nbsp;4 governing meetings of the board of
directors, action without meeting, notice, waiver of notice and quorum and voting requirements
shall apply to the committees of the board and its members.
</DIV>

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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Minutes</U>. Each committee shall keep minutes of its proceedings and shall
report thereon to the board of directors at or before the next meeting of the board.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE
6- OFFICERS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Titles</U>. The officers of the corporation shall be a president, a vice
president, a secretary and a treasurer and may include a chairman and vice chairman of the board of
directors, a chief executive officer, an executive vice president, one or more additional vice
presidents, a controller, one or more assistant secretaries, one or more assistant treasurers, one
or more assistant controllers, and such other officers as shall be deemed necessary. The officers
shall have the authority and perform the duties as set forth herein or as from time to time may be
prescribed by the board of directors or by the president (to the extent that the president is
authorized by the board of directors to prescribe the authority and duties of officers). Any two
or more offices may be held by the same individual, but no officer may act in more than one
capacity where action of two or more officers is required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Election; Appointment</U>. The officers of the corporation shall be elected
from time to time by the board of directors or appointed from time to time by the president (to the
extent that the president is authorized by the board to appoint officers).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Removal</U>. Any officer may be removed by the board at any time with or
without cause whenever in its judgment the best interests of the corporation will be served, but
removal shall not itself affect the officer&#146;s contract rights, if any, with the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Vacancies</U>. Vacancies among the officers may be filled and new offices may
be created and filled by the board of directors, or by the president (to the extent authorized by
the board).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Compensation</U>. The compensation of the officers shall be fixed by the board
of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Chairman and Vice Chairman of the Board of Directors</U>. The chairman of the
board of directors, if such officer is elected, shall preside at meetings of the board of directors
and shareholders and shall have such other authority and perform such other duties as the board of
directors shall designate. The vice chairman, if elected, shall preside at meetings of the board
and shareholders in the absence of the chairman and shall have such other authority and perform
such other duties as the board of directors shall designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Chief Executive Officer</U>. The chief executive officer shall be the
principal executive officer of the corporation and, subject to the control of the board of
directors, shall, in general, supervise and control all of the business and affairs of the
corporation. He shall have such other authority and perform such other duties as the board of
directors shall designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>President</U>. The president shall be the principal operating officer of the
corporation and shall be in general charge of the affairs of the corporation in the ordinary course
of its business. Subject to the direction of the chief executive officer, the president may
perform such acts, not inconsistent with applicable law or the provisions of these bylaws, as may
be performed by the president of a corporation and may sign and execute all authorized notes,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">bonds, contracts and other obligations in the name of the corporation. The president shall
have such other powers and perform such other duties as the board of directors shall designate or
as may be provided by applicable law or elsewhere in these bylaws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. <U>Vice Presidents</U>. In the absence or inability to act of both the chief
executive officer and the president, the executive vice president, if such officer is elected or
appointed, shall exercise the powers of the president during that officer&#146;s absence or inability to
act. In default of the chief executive officer and both the president and the executive vice
president, any other vice president may exercise the powers of the president. Any action taken by
a vice president in the performance of the duties of the president shall be presumptive evidence of
the absence or inability to act of the president at the time the action was taken. The vice
presidents shall have such other powers and perform such other duties as may be assigned by the
board of directors or by the president (to the extent that the president is authorized by the board
of directors to prescribe the authority and duties of other officers).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. <U>Secretary</U>. The secretary shall keep accurate records of the acts and
proceedings of all meetings of shareholders and of the board of directors and shall give all
notices required by law and by these bylaws. The secretary shall have general charge of the
corporate books and records and shall have the responsibility and authority to maintain and
authenticate such books and records. The secretary shall have general charge of the corporate seal
and shall affix the corporate seal to any lawfully executed instrument requiring it. The secretary
shall have general charge of the stock transfer books of the corporation and shall keep at the
principal office of the corporation a record of shareholders, showing the name and address of each
shareholder and the number and class of the shares held by each. The secretary shall sign such
instruments as may require the signature of the secretary, and in general shall perform the duties
incident to the office of secretary and such other duties as may be assigned from time to time by
the board of directors or the president (to the extent that the president is authorized by the
board of directors to prescribe the authority and duties of other officers).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. <U>Assistant Secretaries</U>. Each assistant secretary, if such officer is
elected, shall have such powers and perform such duties as may be assigned by the board of
directors or the president (if authorized by the board of directors to prescribe the authority and
duties of other officers), and the assistant secretaries shall exercise the powers of the secretary
during that officer&#146;s absence or inability to act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. <U>Treasurer</U>. The treasurer shall have custody of all funds and securities
belonging to the corporation and shall receive, deposit or disburse the same under the direction of
the board of directors. The treasurer shall keep full and accurate accounts of the finances of the
corporation, which may be consolidated or combined statements of the corporation and one or more of
its subsidiaries as appropriate, that include a balance sheet as of the end of the fiscal year, an
income statement for that year, and a statement of cash flows for the year unless that information
appears elsewhere in the financial statements. If financial statements are prepared for the
corporation on the basis of generally accepted accounting principles, the annual financial
statements must also be prepared on that basis. The corporation shall mail the annual financial
statements, or a written notice of their availability, to each shareholder within 120&nbsp;days of the
close of each fiscal year. The treasurer shall in general perform all duties incident to the
office and such other duties as may be assigned from time to time by the board of directors or the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">president (to the extent that the president is authorized by the board of directors to
prescribe the authority and duties of other officers).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. <U>Assistant Treasurers</U>. Each assistant treasurer, if such officer is
elected, shall have such powers and perform such duties as may be assigned by the board of
directors or the president (to the extent that the president is authorized by the board of
directors to prescribe the authority and duties of other officers), and the assistant treasurers
shall exercise the powers of the treasurer during that officer&#146;s absence or inability to act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;14. <U>Controller and Assistant Controllers</U>. The controller, if such officer is
elected, shall have charge of the accounting affairs of the corporation and shall have such other
powers and perform such other duties as the board of directors or the president (to the extent that
the president is authorized by the board of directors to prescribe the authority and duties of
other officers) shall designate. Each assistant controller shall have such powers and perform such
duties as may be assigned by the board of directors or the president (to the extent that the
president is authorized by the board of directors to prescribe the authority and duties of other
officers), and the assistant controllers shall exercise the powers of the controller during that
officer&#146;s absence or inability to act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;15. <U>Voting Upon Stocks</U>. Unless otherwise ordered by the board of directors,
the president shall have full power and authority in behalf of the corporation to attend, act and
vote at meetings of the shareholders of any corporation in which this corporation may hold stock,
and at such meetings shall possess and may exercise any and all rights and powers incident to the
ownership of such stock and which, as the owner, the corporation might have possessed and exercised
if present. The board of directors may by resolution from time to time confer such power and
authority upon any other person or persons.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE
7- CAPITAL STOCK</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Certificates</U>. Shares of the capital stock of the corporation may be
certificated or without certificate. The name and address of the persons to whom shares of capital
stock of the corporation are issued, with the number of shares and date of issue, shall be entered
on the stock transfer records of the corporation. Certificates for shares of the capital stock of
the corporation shall be in such form not inconsistent with the articles of incorporation of the
corporation as shall be approved by the board of directors. Each certificate shall be signed
(either manually or by facsimile) by (a)&nbsp;the president or any vice president and by the secretary,
assistant secretary, treasurer or assistant treasurer or (b)&nbsp;any two officers designated by the
board of directors. Each certificate may be sealed with the seal of the corporation or a facsimile
thereof. Within a reasonable time after the issuance or transfer of shares without certificates,
the corporation shall send, or cause to be sent, to the shareholder a written statement including
the information required by law to be set forth on certificates for shares of capital stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Transfer of Shares</U>. Transfer of certificated shares shall be made on the
stock transfer records of the corporation, and transfers shall be made only upon surrender of the
certificate for the shares sought to be transferred by the recordholder or by a duly authorized
agent, transferee or legal representative. All certificates surrendered for transfer or reissue
shall be cancelled before new certificates for the shares or shares without certificate shall be
issued.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Shares without certificate shall be transferable on the stock transfer records of the
corporation upon proper instruction from the holder of such shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Transfer Agent and Registrar</U>. The board of directors may appoint one or
more transfer agents and one or more registrars of transfers and may require all stock certificates
to be signed or countersigned by the transfer agent and registered by the registrar of transfers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Regulations</U>. The board of directors may make rules and regulations as it
deems expedient concerning the issue, transfer and registration of shares of capital stock of the
corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Fixing Record Date</U>. For the purpose of determining shareholders entitled
to notice of or to vote at any meeting of shareholders, or entitled to receive payment of any
dividend, or in order to make a determination of shareholders for any other purpose, the board of
directors may fix in advance a date as the record date for the determination of shareholders. The
record date shall be not more than 70&nbsp;days before the meeting or action requiring a determination
of shareholders. A determination of shareholders entitled to notice of or to vote at a
shareholders&#146; meeting shall be effective for any adjournment of the meeting unless the board of
directors fixes a new record date, which it shall do if the meeting is adjourned to a date more
than 120&nbsp;days after the date fixed for the original meeting. If no record date is fixed for the
determination of shareholders, the record date shall be the day the notice of the meeting is mailed
or the day the action requiring a determination of shareholders is taken. If no record date is
fixed for action without a meeting, the record date for determining shareholders entitled to take
action without a meeting shall be the date the first shareholder signs consent to the action taken.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Lost Certificates</U>. The board of directors must authorize the issuance of a
new certificate or share without certificate in place of a certificate claimed to have been lost,
destroyed or wrongfully taken, upon receipt of (a)&nbsp;an affidavit from the person explaining the
loss, destruction or wrongful taking, and (b)&nbsp;a bond from the claimant in a sum as the corporation
may reasonably direct to indemnify the corporation against loss from any claim with respect to the
certificate claimed to have been lost, destroyed or wrongfully taken. The board of directors may,
in its discretion, waive the affidavit and bond and authorize the issuance of a new certificate or
share without certificate in place of a certificate claimed to have been lost, destroyed or
wrongfully taken.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE
8- INDEMNIFICATION OP DIRECTORS AND OFFICERS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Indemnification Provisions</U>. Any person who at any time serves or has
served as a director or officer of the corporation or of any wholly owned subsidiary of the
corporation, or in such capacity at the request of the corporation for any other foreign or
domestic corporation, partnership, joint venture, trust or other enterprise, or as a trustee or
administrator under any employee benefit plan of the corporation or of any wholly owned subsidiary
thereof (a &#147;Claimant&#148;), shall have the right to be indemnified and held harmless by the corporation
to the fullest extent from time to time permitted by law against all liabilities and litigation
expenses (as hereinafter defined) in the event a claim shall be made or threatened against that
person in, or that person is made or threatened to be made a party to, any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or investigative, and
whether or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">not brought by or on behalf of the corporation, including all appeals therefrom (a
&#147;proceeding&#148;), arising out of that person&#146;s status as such or that person&#146;s activities in any such
capacity; provided, that such indemnification shall not be effective with respect to (a)&nbsp;that
portion of any liabilities or litigation expenses with respect to which the Claimant is entitled to
receive payment under any insurance policy or (b)&nbsp;any liabilities or litigation expenses incurred
on account of any of the Claimant&#146;s activities which were at the time taken known or believed by
the Claimant to be clearly in conflict with the best interests of the corporation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Definitions</U>. As used in this Article, (a) &#147;liabilities&#148; shall include,
without limitation, (1)&nbsp;payments in satisfaction of any judgment, money decree, excise tax, fine or
penalty for which Claimant had become liable in any proceeding and (2)&nbsp;payments in settlement of
any such proceeding subject, however, to Section&nbsp;3 of this Article&nbsp;8; (b) &#147;litigation expenses&#148;
shall include, without limitation, (1)&nbsp;reasonable costs and expenses and attorneys&#146; fees and
expenses actually incurred by the Claimant in connection with any proceeding and (2)&nbsp;reasonable
costs and expenses and attorneys&#146; fees and expenses in connection with the enforcement of rights to
the indemnification granted hereby or by applicable law, if such enforcement is successful in whole
or in part; and (c) &#147;disinterested directors&#148; shall mean directors who are not party to the
proceeding in question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Settlements</U>. The corporation shall not be liable to indemnify the Claimant
for any amounts paid in settlement of any proceeding effected without the corporation&#146;s written
consent. The corporation will not unreasonably withhold its consent to any proposed settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Litigation Expense Advances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as provided in subsection (b)&nbsp;below, any litigation expenses shall be advanced to
any Claimant within 30&nbsp;days of receipt by the secretary of the corporation of a demand therefor,
together with an undertaking by or on behalf of the Claimant to repay to the corporation such
amount unless it is ultimately determined that Claimant is entitled to be indemnified by the
corporation against such expenses. The secretary shall promptly forward notice of the demand and
undertaking immediately to all directors of the corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Within 10&nbsp;days after mailing of notice to the directors pursuant to subsection (a)&nbsp;above,
any disinterested director may, if desired, call a meeting of all disinterested directors to review
the reasonableness of the expenses so requested. No advance shall be made if a majority of the
disinterested directors affirmatively determines that the item of expense is unreasonable in
amount; but if the disinterested directors determine that a portion, of the expense item is
reasonable, the corporation shall advance such portion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Approval of Indemnification Payments</U>. Except as provided in Section&nbsp;4 of
this Article, the board of directors of the corporation shall take all such action as may be
necessary and appropriate to authorize the corporation to pay the indemnification required by
Section&nbsp;1 of this Article, including, without limitation, making a good faith evaluation of the
manner in which the Claimant acted and of the reasonable amount of indemnity due the Claimant. In
taking any such action, any Claimant who is a director of the corporation shall not be entitled to
vote on any matter concerning such Claimant&#146;s right to indemnification.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Suits by Claimant</U>. No Claimant shall be entitled to bring suit against the
corporation to enforce his rights under this Article until sixty days after a written claim has
been received by the corporation, together with any undertaking to repay as required by Section&nbsp;4
of this Article. It shall be a defense to any such action that the Claimant&#146;s liabilities or
litigation expenses were incurred on account of activities described in clause (b)&nbsp;of Section&nbsp;1,
but the burden of proving this defense shall be on the corporation. Neither the failure of the
corporation to have made a determination prior to the commencement of the action to the effect that
indemnification of the Claimant is proper in the circumstances, nor an actual determination by the
corporation that the Claimant had not met the standard of conduct described in clause (b)&nbsp;of
Section&nbsp;1, shall be a defense to the action or create a presumption that the Claimant has not met
the applicable standard of conduct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Consideration; Personal Representatives and Other Remedies</U>. Any person who
during such time as this Article or corresponding provisions of predecessor bylaws is or has been
in effect serves or has served in any of the aforesaid capacities for or on behalf of the
corporation shall be deemed to be doing so or to have done so in reliance upon, and as
consideration for, the right of indemnification provided herein or therein. The right of
indemnification provided herein or therein shall inure to the benefit of the legal representatives
of any person who qualifies or would qualify as a Claimant hereunder, and the right shall not be
exclusive of any other rights to which the person or legal representative may be entitled apart
from this Article.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <U>Scope of Indemnification Rights</U>. The rights granted herein shall not be
limited by the provisions of Section&nbsp;55-8-51 of the General Statutes of North Carolina or any
successor statute.
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>ARTICLE
9- GENERAL PROVISIONS</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Dividends and Other Distributions</U>. The board of directors may from time to
time declare and the corporation may pay dividends or make other distributions with respect to its
outstanding shares in the manner and upon the terms and conditions provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>Seal</U>. The seal of the corporation shall be any form approved from time to
time or at any time by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Waiver of Notice</U>. Whenever notice is required to be given to a
shareholder, director or other person under the provisions of these bylaws, the articles of
incorporation or applicable law, a waiver in writing signed by the person or persons entitled to
the notice, whether before or after the date and time stated in the notice, and delivered to the
corporation shall be equivalent to giving the notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Checks</U>. All checks, drafts or orders for the payment of money shall be
signed by the officer or officers or other individuals that the board of directors may from time to
time designate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Fiscal Year</U>. The fiscal year of the corporation shall be fixed by the
board of directors.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Amendments</U>. Unless otherwise provided in the articles of incorporation or
a bylaw adopted by the shareholders or by law, these bylaws may be amended or repealed by the board
of directors, except that a bylaw adopted, amended or repealed by the shareholders may not be
readopted, amended or repealed by the board of directors if neither the articles of incorporation
nor a bylaw adopted by the shareholders authorizes the board of directors to adopt, amend or repeal
that particular bylaw or the bylaws generally. These bylaws may be amended or repealed by the
shareholders even though the bylaws may also be amended or repealed by the board of directors. A
bylaw that fixes a greater quorum or voting requirement for the board of directors may be amended
or repealed (a)&nbsp;if originally adopted by the shareholders, only by the shareholders, unless such
bylaw as originally adopted by the shareholders provides that such bylaw may be amended or repealed
by the board of directors or (b)&nbsp;if originally adopted by the board of directors, either by the
shareholders or by the board of directors. A bylaw that fixes a greater quorum or voting
requirement may not be adopted by the board of directors by a vote less than a majority of the
directors then in office and may not itself be amended by a quorum or vote of the directors less
than the quorum or vote prescribed in such bylaw or prescribed by the shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>Applicability of Antitakeover Statutes</U>. The provisions of Article&nbsp;9 and
Article&nbsp;9A of the North Carolina Business Corporation Act shall not be applicable to the
corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS IS TO CERTIFY that the above bylaws of Insteel Industries, Inc., were adopted by the
board of directors of the corporation by action taken at a meeting held on August&nbsp;21, 1990, as
amended:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the shareholders of the corporation as to Article&nbsp;3, Section&nbsp;2, on February&nbsp;5,
1991,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the board of directors of the corporation as to Article&nbsp;2, Section&nbsp;11 on April
26, 1999,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the board of directors of the corporation as to Article&nbsp;3, Section&nbsp;2 on October
24, 2005,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the board of directors as to Article&nbsp;7, Sections&nbsp;1, 2 and 6 on September&nbsp;18,
2007, and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the board of directors as to Article&nbsp;2, Section&nbsp;11 on April&nbsp;21, 2009.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By the board of directors as to Article&nbsp;3, section 2 on February&nbsp;8, 2011.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This 8<SUP style="FONT-size: 85%; vertical-align: text-top">th</SUP> day of February, 2011.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 0pt">&#091;Corporate Seal&#093;
</DIV>





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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>g26049exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
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<HEAD>
<TITLE>exv99w1</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g26049g2604900.gif" alt="(INSTEEL INDUSTRIES, INC. LOGO)">
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><FONT style="font-variant: SMALL-CAPS">
		<B>Insteel
Industries, Inc.</B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><U>NEWS
RELEASE</U>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FOR IMMEDIATE RELEASE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contact:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael C. Gazmarian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insteel Industries, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">336-786-2141, Ext. 3020</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B><U>INSTEEL
INDUSTRIES DECLARES QUARTERLY CASH DIVIDEND</U></B>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MOUNT AIRY, N.C., February&nbsp;8, 2011 &#151; Insteel Industries, Inc. (NasdaqGS: IIIN) today announced
that its board of directors declared a quarterly cash dividend of $0.03 per share on the Company&#146;s
common stock payable on April&nbsp;8, 2011 to shareholders of record as of March&nbsp;25, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About Insteel</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Insteel is one of the nation&#146;s largest manufacturers of steel wire reinforcing products for
concrete construction applications. Insteel manufactures and markets prestressed concrete strand
and welded wire reinforcement, including concrete pipe reinforcement, engineered structural mesh
and standard welded wire reinforcement. Insteel&#146;s products are sold primarily to manufacturers of
concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North
Carolina, Insteel currently operates ten manufacturing facilities located in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Cautionary Note Regarding Forward-Looking Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This news release contains forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 with respect to the Company&#146;s
intent and ability to pay future dividends. Although the Company believes that its plans,
intentions and expectations reflected in or suggested by such forward-looking statements are
reasonable, such forward-looking statements are subject to a number of risks and uncertainties, and
the Company can provide no assurances that such plans, intentions or expectations will be
implemented or achieved. Many of these risks and uncertainties are discussed in detail in the
Company&#146;s reports and statements that it files with the U.S. Securities and Exchange Commission, in
particular in its Annual Report on Form 10-K for the year ended October&nbsp;2, 2010. You should
carefully review these risks and uncertainties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All forward-looking statements attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and the Company
does not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
</DIV>



<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">###
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>
 1373 BOGGS DRIVE / MOUNT AIRY, NORTH CAROLINA 27030 / 336-786-2141/
FAX 336-786-2144</B>
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