As amended through
                                                                   June 15, 2005
 
                                     BYLAWS
                                       OF
                            AMES NATIONAL CORPORATION
                              (an Iowa Corporation)
                   (hereinafter referred to as "Corporation")
 
                                    ARTICLE 1
                                PRINCIPAL OFFICE
                                ----------------
 
     The location of the  principal  office of the  Corporation  in the State of
Iowa will be identified in the  Corporation's  annual report filed with the Iowa
Secretary of State.
 
 
                                    ARTICLE 2
                           REGISTERED OFFICE AND AGENT
                           ---------------------------
 
     The initial registered agent and office of the Corporation are set forth in
the Articles of Incorporation. The registered agent or registered
office, or both, may be changed by resolution of the Board of Directors.
 
 
                                    ARTICLE 3
                            MEETINGS OF SHAREHOLDERS
                            ------------------------
 
     Section 3.1 Annual Meeting.
                 --------------
 
     (a) The annual  meeting of the  shareholders  for the election of directors
and for the  transaction  of such other business as may properly come before the
meeting, shall be held on the last Wednesday in April of each year at such place
as the board of directors shall each year fix, or at such other place,  time and
date as the board of directors shall fix, which date shall be within the earlier
of the  first  six  months  after the end of the  Corporation's  fiscal  year or
fifteen (15) months after the shareholders' last annual meeting.
 
     (b) At the annual meeting of the shareholders,  only such business shall be
conducted as shall have been properly brought before the meeting. To be properly
brought before an annual meeting,  business must be: (A) specified in the notice
of meeting (or any supplement thereto) given by or at the direction of the board
of directors,  (B) otherwise  properly  brought  before the meeting by or at the
direction of the board of directors,  or (C) otherwise  properly  brought before
the meeting by a  shareholder.  For  business to be properly  brought  before an
annual meeting by a shareholder,  the shareholder  must have given timely notice
thereof  in  writing  to the  secretary  of the  Corporation.  To be  timely,  a
shareholder's  notice  must be  delivered  to or be mailed and  received  at the
principal  executive offices of the Corporation not less than one hundred twenty
(120) calendar days in advance of the date specified in the Corporation's  proxy
statement released to shareholders in connection with the previous year's annual
meeting of  shareholders;  provided,  however,  that in the event that no annual
meeting was held in the previous year or the date of the annual meeting has been
changed by more than thirty (30) days from the date  contemplated at the time of
the previous year's proxy statement, notice by the shareholder to be timely must
be so received  not later than the close of business on the later of one hundred
twenty  (120)  calendar  days in  advance  of such  annual  meeting  or ten (10)
calendar days following the date on which public announcement of the date of the
meeting is first made. A  shareholder's  notice to the secretary shall set forth
as to each matter the  shareholder  proposes to bring before the annual meeting:
(i) a brief  description of the business desired to be brought before the annual
meeting and the reasons for conducting such business at the annual meeting, (ii)
the  name  and  address,  as they  appear  on the  Corporation's  books,  of the
shareholder proposing such business, (iii) the class and number of shares of the
Corporation which are beneficially  owned by the shareholder,  (iv) any material
interest of the shareholder in such business, and (v) any other information that
is required to be provided by the  shareholder  pursuant to Regulation 14A under
the  Securities  Exchange  Act of 1934,  as  amended  (the "1934  Act"),  in his
capacity  as  a  proponent  of  a  shareholder  proposal.   Notwithstanding  the
foregoing,  in  order to  include  information  with  respect  to a  shareholder
proposal in the proxy statement and form of proxy for a shareholder's meeting, a
shareholder must provide notice as required by the regulations promulgated under
the 1934 Act.  Notwithstanding  anything  in these  Bylaws to the  contrary,  no
business shall be conducted at any annual meeting except in accordance  with the
procedures  set forth in this  paragraph (b). The chairman of the annual meeting
shall, if the facts warrant,  determine and declare at the meeting that business
was not properly brought before the meeting in accordance with the provisions of
this paragraph  (b), and, if he should so determine,  he shall so declare at the
meeting that any such business not properly brought before the meeting shall not
be transacted.
 
                                       1
<PAGE>
 
     (c) Only persons who are nominated in accordance  with the  procedures  set
forth in this  paragraph  (c)  shall be  eligible  for  election  as  directors.
Nominations of persons for election to the board of directors of the Corporation
may be made at a meeting of  shareholders by or at the direction of the board of
directors  or by any  shareholder  of the  Corporation  entitled  to vote in the
election of directors at the meeting who complies with the notice procedures set
forth in this  paragraph (c). Such  nominations,  other than those made by or at
the direction of the board of directors, shall be made pursuant to timely notice
in writing to the secretary of the Corporation in accordance with the provisions
of paragraph (b) of this Section 3.1. Such shareholder's  notice shall set forth
(i) as to each person,  if any,  whom the  shareholder  proposes to nominate for
election or re-election as a director:  (A) the name, age,  business address and
residence address of such person, (B) the principal  occupation or employment of
such  person,  (C) the class and number of shares of the  Corporation  which are
beneficially  owned by such person,  (D) a description  of all  arrangements  or
understandings  between the shareholder and each nominee and any other person or
persons (naming such person or persons) pursuant to which the nominations are to
be made by the shareholder, and (E)any other information relating to such person
that is required to be disclosed in  solicitations  of proxies for  elections of
directors,  or is otherwise  required,  in each case pursuant to Regulation  14A
under the 1934 Act (including  without  limitation such person's written consent
to being named in the proxy statement,  if any, as a nominee and to serving as a
director  if  elected);  and  (ii) as to such  shareholder  giving  notice,  the
information  required to be provided  pursuant to paragraph  (b) of this Section
3.1.  At the  request  of the board of  directors,  any  person  nominated  by a
shareholder  for election as a director  shall  furnish to the  secretary of the
Corporation  that  information  required  to be set  forth in the  shareholder's
notice of nomination which pertains to the nominee.  No person shall be eligible
for  election as a director of the  Corporation  unless  nominated  by or at the
direction  of the  board  of  directors  or  nominated  in  accordance  with the
procedures  set forth in this  paragraph (c). The chairman of the meeting shall,
if the facts warrant, determine and declare at the meeting that a nomination was
not made in accordance with the procedures prescribed by these Bylaws, and if he
should so  determine,  he shall so declare  at the  meeting,  and the  defective
nomination  shall  be  disregarded.  The  name  of  any  person  nominated  by a
shareholder  for election as a director in compliance  with this Section  3.1(c)
shall be submitted to the Corporation's  nominating  committee for evaluation in
accordance with the nominating  committee charter,  provided that the nominating
committee  shall be entitled to exercise its discretion in determining  whether,
on the  basis of such  evaluation,  to  recommend  the  person  to the  board of
directors as a nominee for election as a director.
 
     Section 3.2 Special Meetings.
                 ----------------
 
     Special meetings of the shareholders,  for any purpose or purposes,  unless
otherwise  prescribed  by law (which for  purposes of these bylaws shall mean as
required from time to time by the Iowa Business  Corporation Act or the articles
of  incorporation  of the  Corporation),  may be called by the  Chairman  of the
Board, President or the board of directors,  and shall be called by the board of
directors upon the written demand, signed, dated and delivered to the Secretary,
of the holders of at least ten  percent of all the votes  entitled to be cast on
any issue  proposed to be considered at the meeting.  Such written  demand shall
state the purpose or purposes for which such meeting is to be called.  The time,
date and  place of any  special  meeting  shall be  determined  by the  board of
directors, by the Chairman of the Board, or by the President.
 
                                       2
<PAGE>
 
     Section 3.3 Notices and Reports to Shareholders.
                 -----------------------------------
 
     (a) Notice of the place, date and time of all meetings of shareholders and,
in the case of a special meeting,  the purpose or purposes for which the meeting
is  called,  shall be  communicated  not fewer  than ten (10) days nor more than
sixty (60) days before the date of the meeting to each  shareholder  entitled to
vote at such meeting. The board of directors may establish a record date for the
determination of shareholders  entitled to notice, as provided in section 3.5 of
these bylaws. Notice of adjourned meetings need only be given if required by law
or section 3.7 of these bylaws.
 
     (b) In the event (i) of the issuance,  or the authorization for issuance of
shares for  promissory  notes or promises to render  services in the future,  or
(ii) of any indemnification of or advancement of expenses to a director required
by law to be reported to shareholders,  the Corporation shall report the same to
the shareholders  with or before the notice of the next  shareholders'  meeting,
including,  in the case of  issuance  of  shares,  the  number of shares and the
consideration received.
 
     (c) In the event corporate  action is taken without a meeting in accordance
with section 3.12 of these bylaws by less than unanimous written consent, prompt
notice  of the  taking  of  such  corporate  action  shall  be  given  to  those
shareholders who have not consented in writing.
 
     (d) If notice of proposed  corporate  action is required by law to be given
to shareholders not entitled to vote and the action is to be taken by consent of
the voting  shareholders,  the Corporation  shall give all shareholders  written
notice of the proposed action at least ten (10) days before the action is taken.
The notice must contain or be  accompanied  by the same material that would have
been  required to be sent to  shareholders  not  entitled to vote in a notice of
meeting  at  which  the  proposed  action  would  have  been  submitted  to  the
shareholders for action.
 
     Section 3.4 Waiver of Notice.
                 ----------------
 
     (a) Any shareholder may waive any notice required by law or these bylaws if
in writing and signed by any shareholder entitled to such notice, whether before
or after  the  date  and time  stated  in such  notice.  Such a waiver  shall be
equivalent to notice to such shareholder in due time as required by law or these
bylaws.  Any such waiver shall be delivered to the  Corporation for inclusion in
the minutes or filing with the corporate records.
 
     (b) A shareholder's  attendance at a meeting, in person or by proxy, waives
(i) objection to lack of notice or defective notice of such meeting,  unless the
shareholder  at the beginning of the meeting or promptly upon the  shareholder's
arrival  objects to holding the meeting or transacting  business at the meeting,
and (ii) objection to consideration  of a particular  matter at the meeting that
is not within the purpose or purposes  described in the meeting  notice,  unless
the shareholder objects to considering the matter when it is presented.
 
                                       3
<PAGE>
 
     Section 3.5 Record Date.
                 -----------
 
     The board of directors  may fix, in advance,  a date as the record date for
any determination of shareholders for any purpose, such date in every case to be
not more than seventy (70) days prior to the date on which the particular action
or meeting requiring such  determination of shareholders is to be taken or held.
If no record date is so fixed for the  determination of shareholders,  the close
of  business  on the day  before  the  date  on  which  the  first  notice  of a
shareholders'  meeting is  communicated to shareholders or the date on which the
board of directors authorizes a share dividend or a distribution (other than one
involving a repurchase or reacquisition of shares), as the case may be, shall be
the record date for such determination of shareholders.  When a determination of
shareholders  entitled to vote at any meeting of  shareholders  has been made as
provided in this  section,  such  determination  shall apply to any  adjournment
thereof, unless the board of directors selects a new record date or unless a new
record date is required by law.
 
     Section 3.6 Shareholders' List.
                 ------------------
 
     After fixing a record date for a meeting,  the  Secretary  shall prepare an
alphabetical list of the names of all shareholders who are entitled to notice of
a  shareholders'  meeting.  The list must be arranged by voting group and within
each  voting  group by class or series of  shares,  and show the  address of and
number  of  shares  held by each  shareholder.  The  shareholders'  list must be
available  for  inspection  by any  shareholder  beginning two (2) business days
after  notice  of the  meeting  is given for  which  the list was  prepared  and
continuing  through the meeting,  at the Corporation's  principal office or at a
place  identified  in the meeting  notice in the city where the meeting  will be
held.  A  shareholder,  or a  shareholder's  agent or  attorney,  is entitled on
written demand to inspect and,  subject to the  requirements of law, to copy the
list,  during  regular  business hours and at the person's  expense,  during the
period  it  is  available  for  inspection.   The  Corporation  shall  make  the
shareholders'  list  available  at  the  meeting,  and  any  shareholder,  or  a
shareholder's  agent or  attorney,  is  entitled to inspect the list at any time
during the meeting or any adjournment.
 
     Section 3.7 Quorum.
                 ------
 
     (a) At any meeting of the shareholders, a majority of the votes entitled to
be cast on the  matter by a voting  group  constitutes  a quorum of that  voting
group for action on that matter, unless the representation of a different number
is  required  by law,  and in that  case,  the  representation  of the number so
required  shall  constitute  a quorum.  If a quorum  shall  fail to  attend  any
meeting,  the  chairperson of the meeting or a majority of the votes present may
adjourn the meeting to another place, date or time.
 
     (b) When a meeting is adjourned to another place, date or time, notice need
not be given of the  adjourned  meeting if the place,  date and time thereof are
announced at the meeting at which the adjournment is taken;  provided,  however,
that if the date of any adjourned  meeting is more than one hundred twenty (120)
days after the date for which the meeting was  originally  noticed,  or if a new
record date is fixed for the adjourned  meeting,  notice of the place,  date and
time of the adjourned meeting shall be given in conformity with these bylaws. At
any  adjourned  meeting,  any business may be  transacted  which might have been
transacted at the original meeting.
 
                                       4
<PAGE>
 
     (c) 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 for any
adjournment  thereof  unless  a new  record  date is or  must  be set  for  that
adjourned meeting.
 
 
     Section 3.8 Organization.
                 ------------
 
     (a) The  Chairman  of the Board,  or in the  absence of the  Chairman,  the
President,  or in the President's absence, such person as the board of directors
may have designated,  or, in the absence of such a person,  such person as shall
be  designated by the holders of a majority of the votes present at the meeting,
shall call meetings of the shareholders to order and shall act as chairperson of
such meetings.
 
     (b) The Secretary of the Corporation shall act as secretary at all meetings
of the  shareholders,  but in the absence of the Secretary at any meeting of the
shareholders,  the chairperson may appoint any person to act as secretary of the
meeting.
 
     Section 3.9 Voting of Shares.
                 ----------------
 
     (a)  Every  shareholder  entitled  to vote may vote in  person or by proxy.
Except as provided in subsection (c) or unless  otherwise  provided by law, each
outstanding  share,  regardless of class,  shall be entitled to one vote on each
matter  submitted  to a vote at a  meeting  of  shareholders.  Unless  otherwise
provided by law,  directors shall be elected by a plurality of the votes cast by
the shares  entitled  to vote in the  election at a meeting at which a quorum is
present.  Shareholders  do not  have the  right  to  cumulate  their  votes  for
directors unless the articles of incorporation so provide.
 
     (b) The  shareholders  having the right to vote shares at any meeting shall
be only  those of record on the stock  books of the  Corporation,  on the record
date fixed by law or pursuant to the provisions of section 3.5 of these bylaws.
 
     (c)  Absent  special  circumstances,  the shares of the  Corporation  held,
directly or indirectly,  by another  corporation,  are not entitled to vote if a
majority of the shares  entitled to vote for the  election of  directors of such
other  corporation is held by the Corporation.  The foregoing does not limit the
power  of the  Corporation  to vote  any  shares  held by the  Corporation  in a
fiduciary capacity.
 
     (d) Voting by  shareholders  on any question or in any election may be viva
voce unless the chairperson of the meeting shall order or any shareholder  shall
demand  that  voting be by ballot.  On a vote by ballot,  each  ballot  shall be
signed by the  shareholder  voting,  or in the  shareholder's  name by proxy, if
there be such  proxy,  and  shall  state  the  number  of  shares  voted by such
shareholder.
 
     (e) If a quorum  exists,  action on a matter,  other than the  election  of
directors,  by a voting  group is  approved  if the votes cast within the voting
group  favoring the action exceed the votes cast  opposing the action,  unless a
greater number is required by law.
 
                                       5
<PAGE>
 
     Section 3.10 Voting by Proxy or Representative.
                  ---------------------------------
 
     (a) At all meetings of the shareholders, a shareholder entitled to vote may
vote in person or by proxy  appointed  in writing,  which  appointment  shall be
effective  when  received by the  secretary  of the meeting or other  officer or
agent  authorized  to tabulate  votes.  An  appointment  of a proxy is valid for
eleven  months  from  the date of its  execution,  unless  a  longer  period  is
expressly provided in the appointment form.
 
     (b)  Shares  held by an  administrator,  executor,  guardian,  conservator,
receiver,  trustee,  pledgee, or another corporation may be voted as provided by
law.
 
     Section 3.11 Inspectors.
                  ----------
 
     The board of directors in advance of any meeting of  shareholders  may (but
shall not be  obligated  to) appoint  inspectors  to act at such  meeting or any
adjournment  thereof. If inspectors are not so appointed,  the officer or person
acting  as  chairperson  of any such  meeting  may,  and on the  request  of any
shareholder or the shareholder's proxy, shall make such appointment. In case any
person  appointed as  inspector  shall fail to appear or act, the vacancy may be
filled by appointment  made by the board of directors in advance of the meeting,
or at the meeting by the officer or person acting as chairperson. The inspectors
shall register proxies,  determine the number of shares outstanding,  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,
assents or consents,  hear and determine all challenges and questions in any way
arising in connection with the vote,  count and tabulate all votes,  assents and
consents,  determine  and  announce  the result,  and do such acts as may appear
proper to conduct the election or vote with  fairness to all  shareholders.  The
maximum number of such  inspectors  appointed  shall be three,  and no inspector
whether  appointed by the board of directors or by the officer or person  acting
as chairperson need be a shareholder.
 
         Section 3.12 Action Without Meeting.
                      ----------------------
 
     Except as otherwise set forth in this section 3.12, any action  required or
permitted  by law to be  taken at a  meeting  of the  shareholders  may be taken
without a meeting or vote if one or more  consents in writing  setting forth the
action  taken  shall be signed and dated by the  holders of  outstanding  shares
having not less than ninety  percent (90%) of the votes entitled to be cast at a
meeting at which all shares  entitled  to vote on the action  were  present  and
voted,  and are  delivered to the  Corporation  for  inclusion in the minutes or
filing with the Corporation's records. Written consents from a sufficient number
of  shareholders  must be obtained  within  sixty (60) days from the date of the
earliest  dated  consent for such  consents to be  effective  to take  corporate
action.  Provided,  however, a director shall not be removed by written consents
unless  written  consents are obtained  from the holders of all the  outstanding
shares of the  Corporation.  If not otherwise fixed by law or in accordance with
these  bylaws,  the record date for  determining  shareholders  entitled to take
action without a meeting is the date the first  shareholder signs such a written
consent.
 
                                       6
<PAGE>
         Section 3.13 Conduct of Business.
                      -------------------
 
     The chairperson of any meeting of shareholders shall determine the order of
business and procedure at the meeting,  including such  regulation of the manner
of voting and the conduct of business as seem to him or her to be in order.
 
                                    ARTICLE 4
                               BOARD OF DIRECTORS
                               ------------------
 
     Section 4.1 Qualifications and General Powers.
                 ---------------------------------
 
     No director is  required to be an officer or employee or a  shareholder  of
the  Corporation or a resident of the State of Iowa. The business and affairs of
the Corporation  shall be managed under the direction of the board of directors.
The board of directors may  authorize any officer or officers,  agent or agents,
to enter into any contract or to execute and deliver any  instrument in the name
and on behalf of the Corporation,  and such authority may be general or confined
to specific instances.
 
     Section 4.2 Number of Directors; Tenure.
                 ---------------------------
 
     The number of  directors  of the  Corporation  shall be no fewer than 5 nor
more than 25, the exact number within such range to be  determined  from time to
time by resolution of the board of directors.  The board of directors  shall not
be  authorized  to change the range or to change to a fixed  number of directors
without the approval of the shareholders.  Each director shall hold office until
his or her successor shall have been elected and qualifies,  or until his or her
death, resignation or removal.
 
     Section 4.3 Quorum and Manner of Acting.
                 ---------------------------
 
     A quorum of the board of directors  consists of a majority of the number of
directors  prescribed in  accordance  with section 4.2. If at any meeting of the
board there be less than a quorum present,  a majority of the directors  present
may  adjourn  the  meeting  from time to time until a quorum  shall be  present.
Notice of any adjourned meeting need not be given. At all meetings of directors,
a quorum being present,  the act of the majority of the directors present at the
meeting shall be the act of the board of directors.
 
      Section 4.4 Resignation.
                  -----------
 
     Any  director  of the  Corporation  may  resign  at any time by  delivering
written  notice to the  Chairman of the Board,  the board of  directors,  or the
Corporation.  A resignation is effective when the notice is delivered unless the
notice specifies a later effective date.
 
     Section 4.5 Removal.
                 -------
 
     A director shall be subject to removal, with or without cause, at a meeting
of the shareholders called for that purpose in the manner prescribed by law.
 
                                       7
<PAGE>
     Section 4.6 Vacancies.
                 ---------
 
     Any vacancy occurring in the board of directors through death, resignation,
removal or any other cause,  including  an increase in the number of  directors,
may be filled by the shareholders or by the board of directors. If the directors
remaining in office  constitute fewer than a quorum of the board,  they may fill
the vacancy by the affirmative vote of a majority of the remaining directors.
 
     Section 4.7 Compensation of Directors.
                 -------------------------
 
     The directors may be reimbursed for any expenses paid by them on account of
attendance  at any regular or special  meeting of the board of directors and the
board may fix the  compensation  of directors from time to time by resolution of
the board.
 
     Section 4.8 Place of Meetings, etc.
                 ----------------------
 
     The board of directors may hold its meetings at such place or places within
or without the State of Iowa, as the board may from time to time determine.
 
     Section 4.9 Annual Meeting.
                 --------------
 
     The board of directors shall meet the second  Wednesday of May of each year
at  such a  place  and  time  as  the  Board  shall  fix,  for  the  purpose  of
organization,  the election of officers and the  transaction of other  business.
Notice of such meeting need not be given.  Such meeting may be held at any other
time or place as shall be specified in a notice  given as  hereinafter  provided
for  special  meetings of the board of  directors  or in a consent and waiver of
notice thereof  signed by all the  directors,  at which meeting the same matters
shall be acted upon as is above provided.
 
     Section 4.10 Regular  Meetings.
                  ----------------
 
     Regular  meetings of the board of directors shall be held at such place and
at such times as the board of directors  shall by  resolution  fix and determine
from time to time.  No notice shall be required for any such regular  meeting of
the board.
 
     Section 4.11  Special Meetings; Notice.
                   ------------------------
 
     (a)  Special  meetings  of the board of  directors  shall be held  whenever
called by direction of the Chairman of the Board,  the  President,  or one-third
(1/3) of the directors at the time being in office.
 
     (b) Notice of each such meeting shall be  communicated  to each director at
least two (2) days  before  the date on which the  meeting  is to be held.  Each
notice  shall  state the date,  time and place of the  meeting and maybe made by
telephone,  letter, or in person. Unless otherwise stated in the notice thereof,
any and all business may be transacted at a special  meeting.  At any meeting at
which every director shall be present, even without any notice, any business may
be transacted.
 
                                       8
<PAGE>
 
     Section 4.12 Waiver of Notice.
                  ----------------
 
     A  director  may waive any  notice  required  by law or these  bylaws if in
writing and signed by a director  entitled  to such  notice,  whether  before or
after the date and time stated in such notice. Such a waiver shall be equivalent
to notice in due time as required by these  bylaws.  Attendance of a director at
or  participation  in a  meeting  shall  constitute  a waiver  of notice of such
meeting,  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.
 
     Section 4.13 Director's Assent Presumed.
                  --------------------------
 
     A director of the  Corporation  who is present at a meeting of its board of
directors at which action on any corporate  matter is taken shall be presumed to
have assented to the action taken unless the director's dissent shall be entered
in the  minutes  of the  meeting  or unless  the  director  shall file a written
dissent to such action with the person  acting as the  secretary  of the meeting
before the  adjournment  thereof or shall  forward such dissent by registered or
certified  mail  to the  Secretary  of the  Corporation  immediately  after  the
adjournment of the meeting.  Such right to dissent shall not apply to a director
who voted in favor of such action.
 
     Section 4.14  Order of Business.
                   -----------------
 
     (a) At meetings of the board of directors,  business shall be transacted in
such  order as,  from time to time,  the board of  directors  may  determine  by
resolution.
 
     (b) At all meetings of the board,  the Chairman of the Board,  or in his or
her absence,  the President,  or in the President's absence the most senior Vice
President present,  or otherwise the person designated by the vote of a majority
of the directors present shall preside.
 
     Section 4.15 Action Without Meeting.
                  ----------------------
 
     Any action  required or  permitted by law to be taken at any meeting of the
board of directors  may be taken without a meeting if the action is taken by all
members  of the board and if one or more  consents  in  writing  describing  the
action so taken shall be signed by each  director then in office and included in
the minutes or filed with the  corporate  records  reflecting  the action taken.
Action taken under this section is effective  when the last  director  signs the
consent, unless the consent specifies a different effective date.
 
                                       9
<PAGE>
     Section 4.16 Committees.
                  ----------
 
     (a) The board of directors,  by resolution  adopted by the affirmative vote
of a majority of the number of directors  then in office,  may  establish one or
more  committees,  each  committee  to  consist  of two  (2) or  more  directors
appointed by the board of directors.  Any such committee shall serve at the will
of the board of directors.  Each such committee shall have the powers and duties
delegated to it by the board of directors.  The board of directors may elect one
or more of its members as alternate  members of any such  committee who may take
the place of any absent member or members at any meeting of such committee, upon
request  by the  President  or the  chairperson  of such  committee.  Each  such
committee shall fix its own rules governing the conduct of its activities as the
board of directors may request.
 
     (b) A committee of the board shall not: (i) authorize  distributions by the
Corporation;  (ii) approve or propose to shareholders of the Corporation  action
that the law requires be approved by  shareholders;  (iii) fill vacancies on the
board of directors of the  Corporation or on any of its  committees;  (iv) amend
the articles of  incorporation of the  Corporation;  (v) adopt,  amend or repeal
bylaws  of  the  Corporation;  (vi)  approve  a plan  of  merger  not  requiring
shareholder approval;  (vii) authorize or approve reacquisition of shares by the
Corporation,  except according to a formula or method prescribed by the board of
directors;  or (viii)  authorize or approve the issuance or 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  a  committee  or a senior  executive  officer  of the
Corporation  to do so  within  limits  specifically  prescribed  by the board of
directors.
 
 
                                    ARTICLE 5
                                    OFFICERS
                                    --------
 
     Section 5.1 Executive Officers.
                 ------------------
 
     The executive officers of the Corporation shall be a President, one or more
Vice Presidents (the number thereof to be determined by the board of directors),
a  Secretary,  a Treasurer  and such other  officers as may from time to time be
appointed by the board of directors. One person may hold the offices and perform
the duties of any two or more of said offices.  In its discretion,  the board of
directors  may delegate the powers or duties of any officer to any other officer
or agents,  notwithstanding  any  provision  of these  bylaws,  and the board of
directors  may leave  unfilled  for any such  period as it may fix,  any  office
except  those  of  President,  Treasurer  and  Secretary.  The  officers  of the
Corporation shall be appointed  annually by the board of directors at the annual
meeting  thereof.  Each such officer shall hold office until the next succeeding
annual  meeting of the board of directors and until his or her  successor  shall
have been duly chosen and shall qualify or until his or her death or until he or
she shall resign or shall have been removed.
 
                                       10
<PAGE>
     Section 5.2 Resignation  and Removal.
                 ------------------------
 
     An officer may resign at any time by delivering notice to the Secretary.  A
resignation  is  effective  when the  notice  is  delivered  unless  the  notice
specifies  a later  effective  date.  Any officer may be removed by the board of
directors at any time with or without  cause,  but such removal shall be without
prejudice to the contract rights, if any, of the person so removed.
 
     Section  5.3 Power and Duties of the  President.
                  ----------------------------------
 
     Subject to the control of the board of directors,  the President shall have
general charge of and direct the operations of the  Corporation and shall be the
chief executive  officer of the Corporation.  The President shall keep the board
of directors  fully informed and shall freely  consult with them  concerning the
business of the Corporation in his or her charge. He or she shall have authority
to sign, execute and acknowledge all contracts, checks, deeds, mortgages, bonds,
leases  or other  obligations  on  behalf  of the  Corporation  as may be deemed
necessary  or proper to be executed in the course of the  Corporation's  regular
business,  or which shall be authorized by the board of directors,  and with the
Secretary may sign all  certificates  for the shares of the capital stock of the
Corporation.  The President may sign in the name of the Corporation  reports and
all other documents or instruments  which are necessary or proper to be executed
in the course of the Corporation's  business. He or she shall perform all duties
as from time to time may be assigned by the board of  directors.  The  President
shall,  in the absence of the Chairman of the Board,  preside at all meetings of
the shareholders or the board of directors.
 
     Section 5.4 Power and Duties of the Chairman of the Board.
                 ---------------------------------------------
 
     The Chairman of the Board shall,  when present,  preside at all meetings of
the shareholders and shall preside at all meetings of the board of directors. He
or she shall perform all duties  incident to the office of Chairman of the Board
as  herein  defined,  and all  such  other  duties  as from  time to time may be
assigned by the board of directors.
 
     Section 5.5 Powers and Duties of the Vice President(s).
                 ------------------------------------------
 
     In the absence of the President or in the event of the death,  inability or
refusal to act of the  President,  the Vice  President (or in the event there be
more than one Vice President, the Vice Presidents in the order designated at the
time of their appointment, or in the absence of any designation, the senior Vice
President in length of service) shall perform the duties of the  President,  and
when  so  acting,  shall  have  all  the  powers  of and be  subject  to all the
restrictions upon the President. Any Vice President may sign, with the Secretary
or Assistant  Secretary,  certificates for shares of the Corporation;  and shall
perform  such other  duties and have such  authority as from time to time may be
assigned to such Vice President by the President or by the board of directors.
 
                                       11
<PAGE>
     Section 5.6 Powers and Duties of the  Secretary.
                 -----------------------------------
 
     The  Secretary  shall (a) keep minutes of all meetings of the  shareholders
and of the board of directors;  (b) authenticate  records of the Corporation and
attend to giving and serving all notices of the Corporation as provided by these
bylaws or as required by law; (c) be custodian of the  corporate  seal,  if any,
the stock  certificate  books and such other  books,  records  and papers as the
board of directors may direct;  (d) keep a stock record showing the names of all
persons who are shareholders of the Corporation,  their post office addresses as
furnished  by each such  shareholder,  and the number of shares of each class of
stock  held by them  respectively,  and at  least  ten  (10)  days  before  each
shareholders' meeting,  prepare a complete list of shareholders entitled to vote
at such meeting arranged in alphabetical order; (e) sign with the President or a
Vice President certificates for shares of the Corporation, the issuance of which
shall have been duly authorized; and (f) in general, perform all duties incident
to the office of  Secretary  and such  other  duties as from time to time may be
assigned to the Secretary by the President or the board of directors.
 
     Section 5.7 Powers and Duties of the  Treasurer.
                 -----------------------------------
 
     The Treasurer  shall (a) have custody of and be responsible  for all moneys
and  securities  of the  Corporation,  shall keep full and accurate  records and
accounts in books belonging to the Corporation,  showing the transactions of the
Corporation,  its accounts,  liabilities  and financial  condition and shall see
that all  expenditures  are duly authorized and are evidenced by proper receipts
and vouchers;  (b) deposit in the name of the  Corporation in such depository or
depositories as are approved by the board of directors, all moneys that may come
into the Treasurer's  hands for the  Corporation's  account;  (c) prepare annual
financial  statements  that include a balance  sheet as of the end of the fiscal
year and an income  statement  for that year;  and (d) in general,  perform such
duties as may from time to time be assigned to the Treasurer by the President or
by the board of directors.
 
     Section 5.8 Assistants.
                 ----------
 
     There  shall  be  such  number  of  Assistant   Secretaries  and  Assistant
Treasurers  as the  board of  directors  may  from  time to time  authorize  and
appoint. The Assistant Secretaries and Assistant Treasurers,  in general,  shall
perform  such  duties  as shall be  assigned  to them by the  Secretary,  or the
Treasurer,  respectively,  or by the  President or the board of  directors.  The
board  of  directors  shall  have the  power to  appoint  any  person  to act as
assistant to any other  officer,  or to perform the duties of any other officer,
whenever for any reason it is impracticable  for such officer to act personally,
and such  assistant  or acting  officer  so  appointed  shall  have the power to
perform  all the duties of the office to which he or she is so  appointed  to be
assistant, or as to which he or she is so appointed to act, except as such power
may be otherwise defined or restricted by the board of directors.
 
 
                                       12
<PAGE>
                                    ARTICLE 6
                       SHARES, THEIR ISSUANCE AND TRANSFER
                       -----------------------------------
 
     Section 6.1 Consideration for Shares.
                 ------------------------
 
     The board of directors may authorize shares to be issued for  consideration
consisting of any tangible or intangible property or benefit to the Corporation,
including cash, promissory notes, services performed,  contracts for services to
be performed,  or other  securities of the  Corporation.  Before the Corporation
issues shares,  the board of directors  must  determine  that the  consideration
received or to be received for shares to be issued is adequate.
 
     Section 6.2 Certificates for Shares.
                 -----------------------
 
     Every  shareholder of the Corporation shall be entitled to a certificate or
certificates,  to be in such form as the  board of  directors  shall  prescribe,
certifying  the  number  and class of shares  of the  Corporation  owned by such
shareholder.
 
     Section 6.3 Execution of Certificates.
                 -------------------------
 
     The  certificates  for shares of stock  shall be  numbered  in the order in
which  they  shall be issued  and shall be  signed  by the  President  or a Vice
President and the Secretary or an Assistant  Secretary of the  Corporation.  The
signatures  of the  President or Vice  President  and the Secretary or Assistant
Secretary or other persons signing for the Corporation upon a certificate may be
facsimiles  if  the  certificate  is  countersigned  by  a  transfer  agent,  or
registered by a registrar,  other than the Corporation  itself or an employee of
the Corporation.  In case any officer or other authorized  person who has signed
or whose  facsimile  signature  has been  placed upon such  certificate  for the
Corporation  shall have ceased to be such  officer or  employee or agent  before
such  certificate is issued,  it may be issued by the Corporation  with the same
effect as if he or she were such officer or employee or agent at the date of its
issue.
 
     Section 6.4 Share Record.
                 ------------
 
     A record shall be kept by the Secretary, or by any other officer,  employee
or agent designated by the board of directors, of the names and addresses of all
shareholders and the number and class of shares held by each represented by such
certificates and the respective  dates thereof and in case of cancellation,  the
respective dates of cancellation.
 
     Section 6.5 Cancellation.
                 ------------
 
     Every  certificate  surrendered to the Corporation for exchange or transfer
shall be cancelled,  and no new certificate or  certificates  shall be issued in
exchange for any existing certificate until such existing certificate shall have
been so cancelled, except in cases provided in section 6.8 of these bylaws.
 
                                       13
<PAGE>
 
 
     Section 6.6 Transfers of Stock.
                 ------------------
 
     Transfers of shares of the capital stock of the  Corporation  shall be made
only on the books of the Corporation by the record holder thereof,  or by his or
her attorney  thereunto  authorized by power of attorney duly executed and filed
with the Secretary of the  Corporation,  and on surrender of the  certificate or
certificates  for such  shares  properly  endorsed  and the payment of all taxes
thereon.  The  person in whose  name  shares of stock  stand on the books of the
Corporation  shall be deemed the owner  thereof for all  purposes as regards the
Corporation;  provided,  however,  that whenever any transfer of shares shall be
made for collateral  security,  and not  absolutely,  such fact, if known to the
Secretary of the Corporation, shall be so expressed in the entry of transfer.
 
     Section 6.7  Regulations.
                  -----------
 
     The board of directors may make such other rules and  regulations as it may
deem expedient,  not inconsistent with law,  concerning the issue,  transfer and
registration of certificates for shares of the stock of the Corporation.
 
     Section 6.8 Lost, Destroyed, or Mutilated Certificates.
                 ------------------------------------------
 
     In the event of the loss, theft or destruction of any certificate of stock,
another may be issued in its place pursuant to such  regulations as the board of
directors may establish  concerning proof of such loss, theft or destruction and
concerning the giving of a satisfactory bond or bonds of indemnity.
 
                                    ARTICLE 7
                      CONTRACTS, LOANS, CHECKS AND DEPOSITS
                      -------------------------------------
 
     Section 7.1 Contracts.
                 ---------
 
     The board of directors  may  authorize  any officer or  officers,  agent or
agents,  to enter into any contract or execute and deliver any instrument in the
name of and on behalf of the  Corporation,  and such authority may be general or
confined to specific instances.
 
     Section 7.2 Loans.
                 -----
 
     No loans shall be contracted on behalf of the  Corporation and no evidences
of indebtedness shall be issued in its name unless authorized by a resolution of
the board of  directors.  Such  authority may be general or confined to specific
instances.
 
     Section 7.3 Checks, Drafts, etc.
                 -------------------
 
     All checks, drafts or other orders for the payment of money, notes or other
evidences of indebtedness issued in the name of the Corporation, shall be signed
by the  President  or such  other  officer or  officers,  agent or agents of the
Corporation  and in such manner as shall from time to time be  determined by the
President or by resolution of the board of directors.
 
 
                                       14
<PAGE>
 
                                    ARTICLE 8
                            MISCELLANEOUS PROVISIONS
                            ------------------------
 
     Section 8.1 Facsimile Signatures.
                 --------------------
 
     In addition to the  provisions  for use of facsimile  signatures  elsewhere
specifically authorized in these bylaws,  facsimile signatures of any officer or
officers of the  Corporation may be used whenever and as authorized by the board
of directors or a committee thereof.
 
     Section 8.2 Corporate  Seal.
                 ---------------
 
     The Corporation may adopt an official seal.
 
     Section 8.3 Fiscal Year.
                 -----------
 
     The fiscal year of the  Corporation  shall be from the first day of January
through the last day of December.
 
     Section 8.4  Corporate  Records.
                  ------------------
 
     The books and records of the  Corporation  shall be kept  (except  that the
shareholder  list must also be kept at the places  described  in section  3.6 of
these bylaws) at the principal office of the Corporation.
 
     Section 8.5 Voting of Stocks Owned by the Corporation.
                 -----------------------------------------
 
     In the absence of a resolution  of the board of directors to the  contrary,
the  President  and any Vice  President  acting  within  the scope of his or her
authority as provided in these bylaws, are authorized and empowered on behalf of
the  Corporation  to attend and vote,  or to grant  discretionary  proxies to be
used,  at  any  meeting  of  shareholders  of  any  corporation  in  which  this
Corporation holds or owns shares of stock, and in that connection,  on behalf of
this Corporation, to execute a waiver of notice of any such meeting or a written
consent to action without a meeting. The board of directors shall have authority
to designate any officer or person as a proxy or attorney-in-fact to vote shares
of stock in any other  corporation  in which  this  Corporation  may own or hold
shares of stock.
 
     Section 8.6 Shareholders' Right to Information.
                 ----------------------------------
 
     (a) A  shareholder  of the  Corporation  is  entitled  to inspect and copy,
during regular business hours at the Corporation's  principal office, any of the
following records of the Corporation:
 
        (i)  Articles or restated  articles of incorporation  and all amendments
             currently in effect;
 
        (ii) Bylaws or restated bylaws and all amendments currently in effect;
 
                                       15
<PAGE>
        (iii)Resolutions  adopted by the board of directors creating one or more
             classes  or series of shares  and  fixing  their  relative  rights,
             preferences  and  limitations,  if shares issued  pursuant to those
             resolutions are outstanding;
 
        (iv) Minutes of all  shareholders'  meetings  and  records of all action
             taken by  shareholders  without a  meeting,  for the past three (3)
             years;
 
        (v)  All written  communications  to shareholders  generally  within the
             past three years,  including the financial statements furnished for
             the past three (3) years;
 
        (vi) A list of the names and  business  addresses  of the  Corporation's
             current directors and officers; and
 
        (vii)The  Corporation's  most recent annual report delivered to the Iowa
             Secretary of State.  Provided the shareholder  shall have given the
             Corporation  written  notice of the  shareholder's  demand at least
             five business days before the date on which the shareholder  wishes
             to inspect and copy.
 
     (b) If a shareholder makes a demand in good faith and for a proper purpose,
the  shareholder  describes  with  reasonable  particularity  the  shareholder's
purpose  and the  records the  shareholder  desires to  inspect,  and the record
requested is directly connected with the shareholder's stated purpose,  then the
shareholder shall be entitled to inspect and copy, during regular business hours
at a reasonable  location  specified by the  Corporation,  any of the  following
records  of the  Corporation  provided  the  shareholder  gives the  Corporation
written  notice of the  shareholder's  demand at least five business days before
the  date on  which  the  shareholder  wishes  to  inspect  and  copy any of the
following:
 
        (i)  Excerpts  from  minutes of any  meeting of the board of  directors,
             records of any  actions of a  committee  of the board of  directors
             while  acting in place of the board of  directors  on behalf of the
             Corporation,  minutes  of  any  meeting  of the  shareholders,  and
             records  of  action  taken  by the  shareholders  or the  board  of
             directors without a meeting to the extent not subject to inspection
             under paragraph (a) above;
 
        (ii) Accounting records of the Corporation; and
 
        (iii)The record of shareholders of the Corporation.
 
     (c) Upon  written  request  from a  shareholder,  the  Corporation,  at its
expense,  shall furnish to that shareholder the annual  financial  statements of
the  Corporation,  including a balance  sheet and income  statement  and, if the
annual  financial  statements  are reported  upon by a public  accountant,  that
report must accompany them.
 
     (d) The Corporation may impose a reasonable  charge,  covering the costs of
labor and material, for copies of any documents provided to the shareholder. The
charge shall not exceed the estimated cost of production or  reproduction of the
records.
 
                                       16
<PAGE>
                                    ARTICLE 9
                                   AMENDMENTS
                                   ----------
 
     Section 9.1  Amendments to Bylaws.
                  --------------------
 
     These bylaws may be amended or repealed by the board of directors or by the
shareholders;  provided,  however,  that the  shareholders may from time to time
specify  particular  provisions  of the  bylaws  which  shall not be  amended or
repealed by the board of directors.
 
 
                                       17