BYLAWS
 
                                       OF
 
                        PENNFED FINANCIAL SERVICES, INC.
 
 
 
                                    ARTICLE I
 
                                  STOCKHOLDERS
 
Section 1. Annual Meeting.
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     The Corporation  shall hold an annual meeting of its  stockholders to elect
directors to succeed those whose terms expire and to transact any other business
within its  powers,  at such  place,  on such date,  and at such time during the
31-day period  beginning on the second  Wednesday in October of each year as the
Board of Directors shall fix. Except as provided  otherwise by the Corporation's
Charter or by law, any business may be considered at an annual  meeting  without
the purpose of the meeting having been specified in the notice.  Failure to hold
an annual meeting does not invalidate the Corporation's  existence or affect any
otherwise valid corporate act.
 
Section 2. Special Meetings.
           -----------------
 
     Special  meetings of  stockholders  of the Corporation may be called by the
President  or by the Board of Directors  pursuant to a  resolution  adopted by a
majority of the total number of directors  which the  Corporation  would have if
there  were no  vacancies  on the Board of  Directors  (hereinafter  the  "Whole
Board").  Special meetings of the stockholders  shall be called by the Secretary
at the  request of  stockholders  only on the  written  request of  stockholders
entitled to cast at least a majority of all the votes entitled to be cast at the
meeting. Such written request shall state the purpose or purposes of the meeting
and the matters proposed to be acted upon at the meeting, and shall be delivered
at the  principal  office of the  Corporation  addressed to the President or the
Secretary.  The Secretary shall inform the  stockholders who make the request of
the  reasonably  estimated cost of preparing and mailing a notice of the meeting
and,  upon payment of these costs to the  Corporation,  notify each  stockholder
entitled to notice of the meeting.  The Board of  Directors  shall have the sole
power  to fix (1) the  record  date for  determining  stockholders  entitled  to
request a special  meeting of  stockholders  and the record date for determining
stockholders  entitled to notice of and to vote at the  special  meeting and (2)
the  date,  time and  place  of the  special  meeting  and the  means of  remote
communication, if any, by which stockholders and proxy holders may be considered
present in person and may vote at the special meeting.
 
 
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Section 3. Notice of Meetings; Adjournment.
           --------------------------------
 
     Not less than ten nor more than 90 days before each stockholders'  meeting,
the Secretary shall give notice in writing or by electronic  transmission of the
meeting to each  stockholder  entitled  to vote at the meeting and to each other
stockholder  entitled to notice of the meeting.  The notice shall state the time
and place of the meeting,  the means of remote  communication,  if any, by which
stockholders  and proxy  holders  may be deemed to be  present in person and may
vote at the meeting,  and, if the meeting is a special  meeting or notice of the
purpose is required by statute, the purpose of the meeting. Notice is given to a
stockholder  when it is  personally  delivered to the  stockholder,  left at the
stockholder's  usual place of business,  mailed to the stockholder at his or her
address as it appears on the  records  of the  Corporation,  transmitted  to the
stockholder  by an  electronic  transmission  to any  address  or  number of the
stockholder at which the stockholder receives electronic  transmissions.  If the
Corporation has received a request from a stockholder that notice not be sent by
electronic  transmission,   the  Corporation  may  not  provide  notice  to  the
stockholder   by   electronic   transmission.   Notwithstanding   the  foregoing
provisions,  each person who is entitled to notice waives notice if such person,
before or after the meeting,  delivers a written  waiver or waiver by electronic
transmission which is filed with the records of the stockholders'  meetings,  or
is present at the meeting in person or by proxy.
 
     A meeting of stockholders  convened on the date for which it was called may
be adjourned  from time to time without  further  notice to a date not more than
120 days after the original record date. At any adjourned meeting,  any business
may be transacted which might have been transacted at the original meeting.
 
     As used in these Bylaws, the term "electronic  transmission" shall have the
meaning  given  to such  term by  Section  1-101(k-1)  of the  Maryland  General
Corporation Law (the "MGCL") or any successor provision.
 
Section 4. Quorum.
           -------
 
     At any meeting of the  stockholders,  the holders of at least  one-third of
all of the  shares of the stock  entitled  to vote at the  meeting,  present  in
person or by proxy, shall constitute a quorum for all purposes, unless or except
to the extent  that the  presence  of a larger  number may be  required  by law.
Unless the Charter of the Corporation provides otherwise,  where a separate vote
by a class or classes  is  required,  a majority  of the shares of such class or
classes,  present in person or represented by proxy,  shall  constitute a quorum
entitled to take action with respect to that vote on that matter.
 
     If a quorum shall fail to attend any  meeting,  the chairman of the meeting
or the  holders of a majority  of the shares of stock  entitled  to vote who are
present,  in person or by  proxy,  may,  in  accordance  with  Section 3 of this
Article I, adjourn the meeting to another place, date or time.
 
Section 5. Organization and Conduct of Business.
           -------------------------------------
 
     Such  person  as the  Board of  Directors  may have  designated  or, in the
absence of such a person,  the  President of the  Corporation  or, in his or her
absence, such person as may be chosen by the holders of a majority of the shares
entitled to vote who are present, in person or by proxy, shall
 
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call to  order  any  meeting  of the  stockholders  and act as  chairman  of the
meeting.  In the absence of the Secretary of the  Corporation,  the secretary of
the meeting shall be such person as the chairman  appoints.  The chairman of any
meeting of stockholders  shall determine the order of business and the procedure
at the  meeting,  including  such  regulation  of the  manner of voting  and the
conduct of discussion as seem to him or her in order.
 
Section 6. Advance  Notice  Provisions  for Business to be  Transacted at Annual
           ---------------------------------------------------------------------
           Meetings and Elections of Directors.
           -----------------------------------
 
     (a) At any annual meeting of the stockholders,  only such business shall be
conducted as shall have been brought  before the meeting (i) as specified in the
Corporation's notice of the meeting, (ii) by or at the direction of the Board of
Directors  or  (iii)  by  any  stockholder  of  the  Corporation  who  (1)  is a
stockholder  of record on the date of giving  the  notice  provided  for in this
Section  6(a) and on the  record  date  for the  determination  of  stockholders
entitled  to vote at such  annual  meeting,  and (2)  complies  with the  notice
procedures set forth in this Section 6(a).  For business to be properly  brought
before  an annual  meeting  by a  stockholder  pursuant  to clause  (iii) of the
immediately  preceding  sentence,  the stockholder must have given timely notice
thereof in writing to the  Secretary of the  Corporation  and such business must
otherwise be a proper matter for action by stockholders.
 
     To be timely,  a  stockholder's  notice must be  delivered or mailed to and
received by the Secretary at the principal  executive  office of the Corporation
by not  later  than the  close of  business  on the 90th day  prior to the first
anniversary  of the date of the preceding  year's annual meeting and not earlier
than the close of  business on the 120th day prior to the first  anniversary  of
the date of the preceding year's annual meeting; provided,  however, that in the
event the annual  meeting is the first  annual  meeting of  stockholders  of the
Corporation,  notice by the  stockholder to be timely must be so received by not
later than the close of business on the 90th day prior to the first  anniversary
of the date of the last  annual  meeting of  stockholders  of PennFed  Financial
Services,  Inc.  ("PennFed  Delaware")  prior  to its  merger  with and into the
Corporation  (the "Final PennFed  Delaware Annual Meeting") and not earlier than
the close of  business  on the 120th day prior to the first  anniversary  of the
date of the Final PennFed Delaware Annual Meeting;  provided,  further,  that in
the event that the date of the annual  meeting is advanced by more than 20 days,
or  delayed by more than 60 days,  from the  anniversary  date of the  preceding
year's  annual  meeting  (or,  in  the  case  of the  first  annual  meeting  of
stockholders of the Corporation, from the first anniversary of the Final PennFed
Delaware  Annual  Meeting),  notice by the  stockholder  to be timely must be so
received  not  earlier  than the close of business on the 120th day prior to the
date of such  annual  meeting  and not later than the close of  business  on the
later of (A) the 90th day prior to the date of such  annual  meeting  or (B) the
tenth day  following  the  first to occur of (i) the day on which  notice of the
date  of the  annual  meeting  was  mailed  or  (ii)  the  day on  which  public
announcement  of  the  date  of  the  annual  meeting  was  first  made  by  the
Corporation.  No adjournment or postponement of a meeting of stockholders  shall
commence a new period for the giving of notice hereunder.
 
     A  stockholder's  notice to the Secretary  must set forth as to each matter
such  stockholder  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 of such stockholder as they appear on the Corporation's books
 
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<PAGE>
 
and of the beneficial owner, if any, on whose behalf the proposal is made; (iii)
the class or series  and number of shares of  capital  stock of the  Corporation
which  are  owned  beneficially  or of  record  by  such  stockholder  and  such
beneficial  owner;  (iv) a description  of all  arrangements  or  understandings
between such stockholder and any other person or persons (including their names)
in  connection  with the proposal of such business by such  stockholder  and any
material interest of such stockholder in such business; and (v) a representation
that such  stockholder  intends  to  appear in person or by proxy at the  annual
meeting to bring such business before the meeting.
 
     Notwithstanding anything in these Bylaws to the contrary, no business shall
be brought before or conducted at an annual  meeting  except in accordance  with
the  provisions of this Section 6(a).  The officer of the  Corporation  or other
person  presiding  over the  annual  meeting  shall,  if the  facts so  warrant,
determine  and declare to the meeting that  business  was not  properly  brought
before the meeting in accordance  with the  provisions of this Section 6(a) and,
if he or she should so determine,  he or she shall so declare to the meeting and
any such business so determined  to be not properly  brought  before the meeting
shall not be transacted.
 
     At any special  meeting of the  stockholders,  only such business  shall be
conducted  as shall  have  been  brought  before  the  meeting  pursuant  to the
Corporation's notice of the meeting.
 
     (b) Only  persons  who are  nominated  in  accordance  with  the  following
procedures  shall be eligible  for  election as  directors  of the  Corporation.
Nominations of persons for election to the Board of Directors of the Corporation
may be made at a meeting of  stockholders  at which  directors are to be elected
only  (i) by or at the  direction  of the  Board  of  Directors  or  (ii) by any
stockholder of the Corporation who (1) is a stockholder of record on the date of
giving the notice  provided  for in this Section 6(b) and on the record date for
the  determination  of  stockholders  entitled to vote at such meeting,  and (2)
complies  with the  notice  procedures  set  forth in this  Section  6(b).  Such
nominations,  other  than  those  made by or at the  direction  of the  Board of
Directors,  shall be made by timely  notice in writing to the  Secretary  of the
Corporation.  To be timely, a stockholder's  notice shall be delivered or mailed
to and  received by the  Secretary  at the  principal  executive  offices of the
Corporation not less than 90 days or more than 120 days prior to the date of the
meeting; provided, however, that in the event that less than 100 days' notice or
public announcement of the date of the meeting is given or made to stockholders,
notice by the  stockholder  to be timely must be so received  not later than the
close of business on the tenth day following the day on which such notice of the
date of the meeting was mailed or the day on which  public  announcement  of the
date of the meeting  was first made by the  Corporation,  whichever  shall first
occur.  A  stockholder's  notice must be in writing and set forth (a) as to each
person whom the stockholder proposes to nominate for election as a director, all
information  relating  to  such  person  that is  required  to be  disclosed  in
connection  with  solicitations  of proxies  for  election of  directors,  or is
otherwise required, in each case pursuant to Regulation 14A under the Securities
Exchange Act of 1934, as amended (the "Exchange  Act"), or any successor rule or
regulation;  and (b) as to the stockholder  giving the notice:  (i) the name and
address of such stockholder as they appear on the Corporation's books and of the
beneficial owner, if any, on whose behalf the nomination is made; (ii) the class
or series  and number of shares of capital  stock of the  Corporation  which are
owned  beneficially or of record by such stockholder and such beneficial  owner;
(iii)  a  description  of  all  arrangements  or  understandings   between  such
stockholder and each proposed nominee and any other person or persons (including
their  names)  pursuant  to  which  the  nomination(s)  are to be  made  by such
stockholder; (iv) a representation that
 
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<PAGE>
 
such  stockholder  intends  to appear in  person or by proxy at the  meeting  to
nominate the persons named in its notice; and (v) any other information relating
to such  stockholder that would be required to be disclosed in a proxy statement
or other filings required to be made in connection with solicitations of proxies
for election of directors  pursuant to Regulation  14A under the Exchange Act or
any successor rule or  regulation.  Such notice must be accompanied by a written
consent  of each  proposed  nominee  to be named as a nominee  and to serve as a
director if elected.  No person  shall be eligible for election as a director of
the  Corporation  unless  nominated in  accordance  with the  provisions of this
Section 6(b). The officer of the  Corporation  or other person  presiding at the
meeting shall, if the facts so warrant, determine that a nomination was not made
in accordance with such provisions and, if he or she should so determine,  he or
she shall so  declare  to the  meeting  and the  defective  nomination  shall be
disregarded.
 
     (c) For  purposes of  subsections  (a) and (b) of this  Section 6, the term
"public announcement" shall mean disclosure (i) in a press release reported by a
nationally  recognized  news  service,  (ii) in a  document  publicly  filed  or
furnished by the Corporation with the U.S. Securities and Exchange Commission or
(iii) on a website maintained by the Corporation.
 
Section 7. Proxies and Voting.
           ------------------
 
     Unless the  Charter  of the  Corporation  provides  for a greater or lesser
number of votes per share or limits or denies voting  rights,  each  outstanding
share of stock,  regardless  of class,  is  entitled  to one vote on each matter
submitted  to a vote at a  meeting  of  stockholders;  however,  a share  is not
entitled to be voted if any installment  payable on it is overdue and unpaid. In
all elections for directors, directors shall be determined by a plurality of the
votes  cast,  and except as  otherwise  required  by law or as  provided  in the
Charter of the Corporation,  all other matters voted on by stockholders shall be
determined by a majority of the votes cast on the matter.
 
     A stockholder may vote the stock the  stockholder  owns of record either in
person or by proxy. A stockholder may sign a writing  authorizing another person
to  act as  proxy.  Signing  may  be  accomplished  by  the  stockholder  or the
stockholder's  authorized agent signing the writing or causing the stockholder's
signature  to be  affixed  to the  writing by any  reasonable  means,  including
facsimile signature.  A stockholder may authorize another person to act as proxy
by transmitting,  or authorizing the  transmission of, an authorization  for the
person to act as the proxy to the  person  authorized  to act as proxy or to any
other  person  authorized  to receive the proxy  authorization  on behalf of the
person  authorized to act as the proxy,  including a proxy  solicitation firm or
proxy support service  organization.  The  authorization may be transmitted by a
telegram,  cablegram,  datagram,  electronic  mail or any  other  electronic  or
telephonic means. Unless a proxy provides  otherwise,  it is not valid more than
11 months  after its date. A proxy is  revocable  by a  stockholder  at any time
without  condition  or  qualification   unless  the  proxy  states  that  it  is
irrevocable  and the  proxy is  coupled  with an  interest.  A proxy may be made
irrevocable  for as long as it is coupled  with an interest.  The interest  with
which a proxy may be coupled includes an interest in the stock to be voted under
the proxy or  another  general  interest  in the  Corporation  or its  assets or
liabilities.
 
 
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<PAGE>
 
Section 8. Consent of Stockholders in Lieu of Meeting.
           ------------------------------------------
 
     Except as  provided  in the  following  sentence,  any action  required  or
permitted  to be taken at a  meeting  of  stockholders  may be taken  without  a
meeting if a unanimous  consent  which sets forth the action is given in writing
or by electronic transmission by each stockholder entitled to vote on the matter
and is filed in paper or  electronic  format  with the  records  of  stockholder
meetings.  Unless the Charter of the Corporation requires otherwise, the holders
of any class of the  Corporation's  stock other than common  stock,  entitled to
vote  generally in the election of directors,  may take action or consent to any
action by delivering a consent in writing or by electronic  transmission  of the
stockholders  entitled  to cast not less than the  minimum  number of votes that
would  be  necessary  to  authorize  or take  the  action  at a  meeting  of the
stockholders  if the  Corporation  gives  notice of the  action so taken to each
stockholder not later than ten days after the effective time of the action.
 
Section 9. Conduct of Voting
           -----------------
 
     The Board of Directors  shall,  in advance of any meeting of  stockholders,
appoint one or more persons as inspectors of election,  to act at the meeting or
any adjournment  thereof and make a written report  thereof,  in accordance with
applicable law. At all meetings of  stockholders,  the proxies and ballots shall
be received,  and all  questions  touching the  qualification  of voters and the
validity of proxies and the acceptance or rejection of votes shall be decided or
determined by the inspector of elections.  All voting, including on the election
of directors but excepting  where  otherwise  required by law, may be by a voice
vote; provided,  however, that upon demand therefor by a stockholder entitled to
vote or his or her proxy or the chairman of the meeting, a written vote shall be
taken.  Every  written vote shall be taken by ballot,  each of which shall state
the name of the stockholder or proxy voting and such other information as may be
required under the procedure  established  for the meeting.  Every vote taken by
ballot shall be counted by an inspector or inspectors  appointed by the chairman
of the meeting. No candidate for election as a director at a meeting shall serve
as an inspector at such meeting.
 
Section 10. Control Share Acquisition Act.
            -----------------------------
 
     Notwithstanding  any other  provision of the Charter of the  Corporation or
these Bylaws,  Title 3, Subtitle 7 of the MGCL (or any successor  statute) shall
not  apply  to  any  acquisition  by  any  person  of  shares  of  stock  of the
Corporation.  This Section 10 may be repealed, in whole or in part, at any time,
whether  before or after an acquisition of Control Shares (as defined in Section
3-701(d) of the MGCL, or any successor provision) and, upon such repeal, may, to
the extent  provided by any  successor  bylaw,  apply to any prior or subsequent
Control Share  Acquisition  (as defined in Section  3-701(d) of the MGCL, or any
successor provision).
 
 
 
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<PAGE>
 
                                   ARTICLE II
 
                               BOARD OF DIRECTORS
 
Section 1. General Powers, Number and Term of Office.
           ------------------------------------------
 
     The  business  and affairs of the  Corporation  shall be managed  under the
direction of the Board of Directors.  The number of directors of the Corporation
shall,  by virtue of the  Corporation's  election  made hereby to be governed by
Section  3-804(b) of the MGCL, be fixed from time to time exclusively by vote of
the Board of Directors;  provided, however, that such number shall never be less
than the minimum  number of  directors  required by the MGCL now or hereafter in
force. The Board of Directors shall annually elect a Chairman of the Board and a
President from among its members and shall designate,  when present,  either the
Chairman of the Board or the President to preside at its meetings.
 
     The  directors,  other than those who may be elected by the  holders of any
series of preferred stock, shall be divided into three classes,  as nearly equal
in number as reasonably possible,  with the term of office of the first class to
expire at the first annual  meeting of  stockholders,  the term of office of the
second class to expire at the annual meeting of stockholders one year thereafter
and the term of office of the third  class to expire at the  annual  meeting  of
stockholders two years  thereafter,  with each director to hold office until his
or her  successor  shall have been duly  elected and  qualified.  At each annual
meeting of  stockholders,  commencing with the first annual  meeting,  directors
elected to succeed  those  directors  whose terms  expire shall be elected for a
term of office to expire at the third succeeding  annual meeting of stockholders
after  their  election,  with  each  director  to hold  office  until his or her
successor shall have been duly elected and qualified.
 
     No  person  70 years  of age or  older  shall  be  eligible  for  election,
re-election,  appointment  or  re-appointment  to the  Board  of  Directors.  No
director who has attained  age 70 shall  continue to serve as a director  beyond
the annual  meeting  of  stockholders  at which his term as a director  expires.
Notwithstanding the foregoing,  the provisions of this paragraph shall not apply
to persons who served as  directors of PennFed  Delaware on July 14,  1994.  Nor
shall the age limitation  imposed by the  provisions of this paragraph  apply to
persons serving as advisory directors or directors emeriti,  in their capacities
as such.
 
Section 2. Vacancies and Newly Created Directorships.
           ------------------------------------------
 
     By virtue of the  Corporation's  election  made  hereby  to be  subject  to
Section 3-804(c) of the MGCL, any vacancies in the Board of Directors  resulting
from an increase in the size of the Board of Directors or the death, resignation
or  removal  of a  director  may be  filled  only by the  affirmative  vote of a
majority of the remaining  directors in office,  even if the remaining directors
do not  constitute a quorum,  and any director  elected to fill a vacancy  shall
hold  office for the  remainder  of the full term of the class of  directors  in
which the vacancy  occurred and until a successor is elected and  qualifies.  No
decrease in the number of directors  constituting  the Board of Directors  shall
shorten the term of any incumbent director.
 
 
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<PAGE>
 
Section 3. Regular Meetings.
           -----------------
 
     Regular  meetings of the Board of Directors  shall be held at such place or
places or by means of remote  communication,  on such date or dates, and at such
time or times as shall  have  been  established  by the Board of  Directors  and
publicized  among all directors.  A notice of each regular  meeting shall not be
required. Any regular meeting of the Board of Directors may adjourn from time to
time to reconvene  at the same or some other place,  and no notice need be given
of any such adjourned meeting other than by announcement.
 
Section 4. Special Meetings.
           ----------------
 
     Special meetings of the Board of Directors may be called by one-third (1/3)
of the directors  then in office  (rounded up to the nearest whole number) or by
the  President  and  shall  be  held  at  such  place  or  by  means  of  remote
communication,  on such  date,  and at such time as they or he or she shall fix.
Notice of the place,  date, and time of each such special meeting shall be given
to each  director  by whom it is not waived by mailing  written  notice not less
than five (5) days  before the  meeting or by  telegraphing  or  telexing  or by
facsimile or electronic  transmission of the same not less than twenty-four (24)
hours before the meeting.  Any director may waive notice of any special meeting,
either before or after such meeting,  by delivering a written waiver or a waiver
by  electronic  transmission  that is filed  with the  records  of the  meeting.
Attendance  of a director  at a special  meeting  shall  constitute  a waiver of
notice of such  meeting,  except where the director  attends the meeting for the
express  purpose  of  objecting,  at  the  beginning  of  the  meeting,  to  the
transaction  of any  business  because  the  meeting is not  lawfully  called or
convened.  Neither  the  business  to be  transacted  at nor the  purpose of any
special  meeting of the Board of  Directors  need be  specified in the notice of
such  meeting.  Any special  meeting of the Board of Directors  may adjourn from
time to time to reconvene at the same or some other place, and no notice need be
given of any such adjourned meeting other than by announcement.
 
Section 5. Quorum.
           -------
 
     At any  meeting of the Board of  Directors,  a majority  of the  authorized
number of directors then  constituting  the Board shall  constitute a quorum for
all purposes.  If a quorum shall fail to attend any meeting, a majority of those
present may adjourn the meeting to another place, date, or time, without further
notice or waiver thereof.
 
Section 6. Participation in Meetings By Conference Telephone.
           --------------------------------------------------
 
     Members  of the  Board  of  Directors,  or of any  committee  thereof,  may
participate  in a meeting of such Board or  committee  by means of a  conference
telephone or other communications  equipment if all persons participating in the
meeting  can  hear  each  other  at the  same  time.  Such  participation  shall
constitute presence in person at such meeting.
 
Section 7. Conduct of Business.
           --------------------
 
     At any meeting of the Board of Directors,  business  shall be transacted in
such  order and  manner as the  Board may from time to time  determine,  and all
matters shall be determined by the
 
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<PAGE>
 
vote of a majority of the  directors  present,  except as otherwise  provided in
these Bylaws, the Corporation's  Charter or required by law. Action may be taken
by the Board of Directors  without a meeting if a unanimous  consent  which sets
forth the  action is given in  writing  or by  electronic  transmission  by each
member of the Board of Directors and filed in paper or electronic  form with the
minutes of proceedings of the Board of Directors.
 
 
 
Section 8. Powers.
           -------
 
     All powers of the Corporation may be exercised by or under the authority of
the Board of Directors except as conferred on or reserved to the stockholders by
law or by the  Corporation's  Charter  or  these  Bylaws.  Consistent  with  the
foregoing,   the  Board  of  Directors  shall  have,  among  other  powers,  the
unqualified power:
 
 
 
 
     (1) To declare dividends from time to time in accordance with law;
 
     (2) To purchase or otherwise acquire any property,  rights or privileges on
such terms as it shall determine;
 
     (3) To authorize the creation,  making and issuance, in such form as it may
determine,  of written obligations of every kind,  negotiable or non-negotiable,
secured or unsecured, and to do all things necessary in connection therewith;
 
     (4) To remove any officer of the  Corporation  with or without  cause,  and
from time to time to devolve the powers and duties of any officer upon any other
person for the time being;
 
     (5) To confer  upon any  officer of the  Corporation  the power to appoint,
remove and suspend subordinate officers, employees and agents;
 
     (6) To adopt from time to time such stock, option, stock purchase, bonus or
other  compensation plans for directors,  officers,  employees and agents of the
Corporation and its subsidiaries as it may determine;
 
     (7) To adopt  from  time to time  such  insurance,  retirement,  and  other
benefit plans for directors,  officers,  employees and agents of the Corporation
and its subsidiaries as it may determine; and
 
     (8) To adopt from time to time  regulations,  not  inconsistent  with these
Bylaws, for the management of the Corporation's business and affairs.
 
 
Section 9.   Compensation of Directors.
             --------------------------
 
     Directors,  as such,  may receive,  pursuant to  resolution of the Board of
Directors,  fixed fees and other  compensation  for their services as directors,
including,  without  limitation,  their services as members of committees of the
Board of Directors.
 
 
                                       D-9
 
 
 
 
 
 
 
 
 
<PAGE>
 
 
 
 
Section 10. Resignation.
            ------------
 
     Any  director  may  resign  at any time by  giving  written  notice of such
resignation to the  President or the  Secretary at the  principal  office of the
Corporation.  Unless otherwise  specified  therein,  such resignation shall take
effect upon receipt thereof.
 
Section 11. Presumption of Assent.
            ----------------------
 
     A director of the  Corporation  who is present at a meeting of the Board of
Director at which action on any  corporate  matter is taken shall be presumed to
have assented to such action  unless such director  announces his dissent at the
meeting  and (a) such  director's  dissent  is  entered  in the  minutes  of the
meeting,  (b) such  director  files his written  dissent to such action with the
secretary of the meeting before the  adjournment  thereof,  or (c) such director
forwards his written dissent within 24 hours after the meeting is adjourned,  by
certified  mail,  return receipt  requested,  bearing a postmark from the United
States Postal  Service,  to the secretary of the meeting or the Secretary of the
Corporation.  Such right to dissent  shall not apply to a director  who voted in
favor of such action or failed to make his dissent known at the meeting.
 
 
 
                                   ARTICLE III
                                   COMMITTEES
 
 
 
Section 1. Committees of the Board of Directors.
           ------------------------------------
 
     The Board of  Directors  may appoint  from among its  members an  Executive
Committee and other committees composed of one or more directors and delegate to
these  committees any of the powers of the Board of Directors,  except the power
to authorize  dividends on stock (except as provided in Section  2-309(c) of the
MGCL), issue stock other than as provided in the next sentence, recommend to the
stockholders any action which requires stockholder approval, amend these Bylaws,
or approve  any merger or share  exchange  which  does not  require  stockholder
approval.  If the Board of Directors  has given  general  authorization  for the
issuance  of stock  providing  for or  establishing  a method or  procedure  for
determining the maximum number of shares to be issued,  a committee of the Board
of Directors,  in accordance with that general authorization or any stock option
or other plan or program adopted by the Board of Directors, may authorize or fix
the terms of stock subject to classification or  reclassification  and the terms
on which any stock may be issued, including all terms and conditions required or
permitted  to be  established  or  authorized  by the Board of  Directors  under
Sections  2-203 and 2-208 of the MGCL.  Any committee so designated may exercise
the power  and  authority  of the Board of  Directors  if the  resolution  which
designated the committee or a supplemental  resolution of the Board of Directors
shall so provide.
 
 
Section 2.   Conduct of Business.
             -------------------
 
     Each  committee  may  determine  the  procedural   rules  for  meeting  and
conducting  its  business  and  shall  act in  accordance  therewith,  except as
otherwise  provided herein or required by law. Adequate  provision shall be made
for notice to members of all meetings; one-third (1/3) of the
 
 
 
                                      D-10
 
 
<PAGE>
 
members shall  constitute a quorum unless the committee shall consist of one (1)
or two (2) members, in which event one (1) member shall constitute a quorum; and
all matters  shall be  determined  by a majority  vote of the  members  present.
Action may be taken by any  committee  without a meeting if a unanimous  consent
which sets forth the action is given in writing or by electronic transmission by
each  member of the  committee  and filed in paper or  electronic  form with the
minutes of the proceedings of such  committee.  The members of any committee may
conduct any meeting  thereof by  conference  telephone  or other  communications
equipment in accordance with the provisions of Section 6 of Article II.
 
 
 
Section 3.   Nominating Committee.
             ---------------------
 
 
     The Board of  Directors  may appoint a  Nominating  Committee of the Board,
consisting of at least three (3) members.  The Nominating  Committee  shall have
authority (a) to review any  nominations  for election to the Board of Directors
made by a stockholder of the  Corporation  pursuant to Section 6(b) of Article I
of these  Bylaws in order to determine  compliance  with such By- law and (b) to
recommend to the Whole Board  nominees for election to the Board of Directors to
replace those directors whose terms expire at the annual meeting of stockholders
next ensuing.
 
 
                                   ARTICLE IV
                                    OFFICERS
 
 
 
 
Section 1. Generally.
           ----------
 
     (a) The Board of Directors as soon as may be  practicable  after the annual
meeting of stockholders shall choose a President, one or more Vice Presidents, a
Secretary and a Treasurer  and from time to time may choose such other  officers
as it may deem  proper.  Any number of offices  may be held by the same  person,
except  that no  person  may  concurrently  serve  as both  President  and  Vice
President of the Corporation.
 
 
     (b) The term of  office  of all  officers  shall be until  the next  annual
election of officers and until their respective  successors are chosen,  but any
officer  may be removed  from  office at any time by the  affirmative  vote of a
majority of the authorized  number of directors then  constituting  the Board of
Directors.
 
 
     (c) All  officers  chosen by the Board of  Directors  shall  each have such
powers and duties as generally pertain to their respective  offices,  subject to
the specific  provisions of this Article IV. Such officers  shall also have such
powers  and  duties  as from  time to time  may be  conferred  by the  Board  of
Directors or by any committee thereof.
 
 
Section 2.   President.
             ----------
 
     The  President  shall be the chief  executive  officer and,  subject to the
control of the Board of Directors,  shall have general power over the management
and oversight of the administration and operation of the Corporation's  business
and general supervisory power and authority over its policies
 
                                      D-11
 
 
 
 
 
<PAGE>
 
and  affairs.  He shall  see that all  orders  and  resolutions  of the Board of
Directors and of any committee thereof are carried into effect.
 
 
Section 3.   Vice President.
             --------------
 
     The Vice President or Vice Presidents,  if any, shall perform the duties of
the President in his absence or during his  disability to act. In addition,  the
Vice  Presidents  shall  perform  the duties  and  exercise  the powers  usually
incident to their respective  offices and/or such other duties and powers as may
be properly  assigned to them from time to time by the Board of  Directors,  the
Chairman of the Board or the President.
 
 
 
Section 4.   Secretary.
             ---------
 
     The  Secretary or an Assistant  Secretary  shall issue notices of meetings,
shall keep their minutes, shall have charge of the seal and the corporate books,
shall  perform such other  duties and exercise  such other powers as are usually
incident to such  offices  and/or such other  duties and powers as are  properly
assigned  thereto by the Board of  Directors,  the  Chairman of the Board or the
President.
 
Section 5. Treasurer.
           ---------
 
     The  Treasurer  shall  have  charge of all  monies  and  securities  of the
Corporation, other than monies and securities of any division of the Corporation
which has a treasurer or financial  officer appointed by the Board of Directors,
and shall keep regular books of account.  The funds of the Corporation  shall be
deposited in the name of the  Corporation  by the  Treasurer  with such banks or
trust  companies or other  entities as the Board of Directors  from time to time
shall designate. He or she shall sign or countersign such instruments as require
his or her signature,  shall perform all such duties and have all such powers as
are usually  incident to such office  and/or such other duties and powers as are
properly  assigned to him or her by the Board of Directors,  the Chairman of the
Board or the  President,  and may be  required  to give  bond  for the  faithful
performance  of his or her  duties  in such sum and with  such  surety as may be
required by the Board of Directors.
 
 
Section 6.   Assistant Secretaries and Other Officers.
             ----------------------------------------
 
     The Board of Directors may appoint one or more  assistant  secretaries  and
one or  more  assistants  to  the  Treasurer,  or one  appointee  to  both  such
positions,  which  officers shall have such powers and shall perform such duties
as are  provided  in these  Bylaws or as may be assigned to them by the Board of
Directors, the Chairman of the Board or the President.
 
 
Section 7.   Action with Respect to Securities of Other Corporations
             -------------------------------------------------------
 
     Stock of other corporations or associations,  registered in the name of the
Corporation,  may be  voted  by the  President,  a  Vice-President,  or a  proxy
appointed by either of them. The Board of Directors,  however, may by resolution
appoint some other  person to vote such shares,  in which case such person shall
be entitled to vote such shares upon the  production of a certified copy of such
resolution.
 
                                      D-12
 
 
<PAGE>
 
 
                                    ARTICLE V
                                      STOCK
 
 
 
Section 1. Certificates of Stock.
           ---------------------
 
     The  Board  of   Directors   may   determine  to  issue   certificated   or
uncertificated  share of capital stock and other  securities of the Corporation.
For  certificated  stock,  each  stockholder is entitled to  certificates  which
represent  and certify  the shares of stock he or she holds in the  Corporation.
Each stock  certificate  shall include on its face the name of the  Corporation,
the name of the stockholder or other person to whom it is issued,  and the class
of stock and number of shares it  represents.  It shall also include on its face
or back (a) a statement of any restrictions on  transferability  and a statement
of the  designations and any  preferences,  conversion and other rights,  voting
powers, restrictions, limitations as to dividends, qualifications, and terms and
conditions  of redemption  of the stock of each class which the  Corporation  is
authorized to issue,  of the  differences in the relative rights and preferences
between the shares of each series of preferred  stock which the  Corporation  is
authorized  to issue,  to the extent they have been set, and of the authority of
the Board of Directors to set the relative  rights and preferences of subsequent
series of preferred  stock or (b) a statement  which  provides in substance that
the  Corporation  will  furnish  a full  statement  of such  information  to any
stockholder  on request  and  without  charge.  Such  request may be made to the
Secretary  or  to  the  Corporation's  transfer  agent.  Upon  the  issuance  of
uncertificated   shares  of  capital  stock,  the  Corporation  shall  send  the
stockholder a written statement of the same information  required above on stock
certificates.  Each stock  certificate  shall be in such form, not  inconsistent
with law or with the Corporation's Charter, as shall be approved by the Board of
Directors or any officer or officers  designated  for such purpose by resolution
of the  Board of  Directors.  Each  stock  certificate  shall be  signed  by the
Chairman of the Board, the President, or a Vice-President,  and countersigned by
the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer.
Each  certificate may be sealed with the actual corporate seal or a facsimile of
it or in any other form and the  signatures  may be either  manual or  facsimile
signatures.  A certificate  is valid and may be issued whether or not an officer
who signed it is still an officer when it is issued.  A  certificate  may not be
issued until the stock represented by it is fully paid.
 
 
Section 2. Transfers of Stock.
           ------------------
 
     Transfers  of stock  shall be made  only  upon  the  transfer  books of the
Corporation  kept  at  an  office  of  the  Corporation  or by  transfer  agents
designated to transfer  shares of the stock of the  Corporation.  Except where a
certificate is issued in accordance with Section 4 of Article V of these Bylaws,
an  outstanding   certificate  for  the  number  of  shares  involved  shall  be
surrendered for cancellation before a new certificate is issued therefor.
 
Section 3. Record Dates or Closing of Transfer Books.
           ------------------------------------------
 
     The Board of Directors  may, and shall have the power to, set a record date
or direct that the stock  transfer  books be closed for a stated  period for the
purpose  of making  any  proper  determination  with  respect  to  stockholders,
including which stockholders are entitled to notice of a meeting, vote
 
                                      D-13
 
 
 
<PAGE>
 
at a meeting,  receive a dividend,  or be allotted other rights. The record date
may not be prior to the close of  business  on the day the record  date is fixed
nor,  subject to  Section 3 of  Article I, more than 90 days  before the date on
which the action requiring the  determination  will be taken; the transfer books
may not be  closed  for a  period  longer  than 20 days;  and,  in the case of a
meeting of  stockholders,  the record date or the closing of the transfer  books
shall be at least ten days  before  the date of the  meeting.  Any shares of the
Corporation's own stock acquired by the Corporation  between the record date for
determining  stockholders  entitled  to  notice  of or to vote at a  meeting  of
stockholders  and the time of the  meeting  may be voted at the  meeting  by the
holder of record as of the record date and shall be counted in  determining  the
total number of outstanding shares entitled to be voted at the meeting.
 
 
Section 4. Lost, Stolen or Destroyed Certificates.
           ---------------------------------------
 
     The Board of Directors of the  Corporation may determine the conditions for
issuing a new stock  certificate  in place of one which is  alleged to have been
lost, stolen, or destroyed, or the Board of Directors may delegate such power to
any officer or officers of the Corporation.  In their  discretion,  the Board of
Directors or such  officer or officers may require the owner of the  certificate
to give a bond, with sufficient surety, to indemnify the Corporation against any
loss or claim arising as a result of the issuance of a new certificate. In their
discretion,  the Board of  Directors  or such  officer or officers may refuse to
issue such new certificate without the order of a court having jurisdiction over
the matter.
 
 
 
Section 5. Stock Ledger.
           ------------
 
     The  Corporation  shall maintain a stock ledger which contains the name and
address  of each  stockholder  and the  number of shares of stock of each  class
which the stockholder  holds.  The stock ledger may be in written form or in any
other form which can be converted within a reasonable time into written form for
visual inspection. The original or a duplicate of the stock ledger shall be kept
at the  offices of a  transfer  agent for the  particular  class of stock or, if
none, at the principal executive office of the Corporation.
 
 
 
Section 6. Regulations.
           -----------
 
     The issue,  transfer,  conversion and registration of certificates of stock
shall be  governed  by such  other  regulations  as the Board of  Directors  may
establish.
 
 
 
                                   ARTICLE VI
                                  MISCELLANEOUS
 
 
Section 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.
 
                                      D-14
 
 
 
 
 
Section 2. Corporate Seal.
           --------------
 
     The Board of Directors may provide a suitable seal, bearing the name of the
Corporation,  which  shall  be in the  charge  of the  Secretary.  The  Board of
Directors may authorize one or more duplicate  seals and provide for the custody
thereof.  If the  Corporation  is  required  to place  its  corporate  seal to a
document,  it is  sufficient  to meet  the  requirement  of any  law,  rule,  or
regulation  relating to a corporate seal to place the word "(seal)"  adjacent to
the  signature  of the person  authorized  to sign the document on behalf of the
Corporation.
 
 
 
Section 3.   Annual Statement of Affairs.
             ----------------------------
 
      The President or chief accounting officer shall prepare annually a full
and correct statement of the affairs of the Corporation, to include a balance
sheet and a financial statement of operations for the preceding fiscal year. The
statement of affairs shall be submitted at the annual meeting of the
stockholders and, within 20 days after the meeting, placed on file at the
Corporation's principal office.
 
Section 4. Books and Records.
           ------------------
 
     The  Corporation  shall keep correct and complete  books and records of its
accounts and transactions and minutes of the proceedings of its stockholders and
Board of Directors and of any committee when exercising any of the powers of the
Board of Directors.  The books and records of the  Corporation may be in written
form or in any other form which can be converted  within a reasonable  time into
written form for visual  inspection.  Minutes  shall be recorded in written form
but may be maintained in the form of a reproduction. The original or a certified
copy of these Bylaws shall be kept at the principal office of the Corporation.
 
 
 
Section 5. Reliance upon Books, Reports and Records.
           -----------------------------------------
 
     Each  director,  each member of any  committee  designated  by the Board of
Directors,  and  each  officer  and  agent  of  the  Corporation  shall,  in the
performance of his or her duties, in addition to any protections  conferred upon
him or her by law, be fully protected in relying in good faith upon the books of
account or other records of the Corporation and upon such information, opinions,
reports or  statements  presented to the  Corporation  by any of its officers or
employees,  or  committees  of the Board of Directors so  designated,  or by any
other person as to matters which such  director,  committee  member,  officer or
agent reasonably believes are within such other person's  professional or expert
competence and who has been selected with reasonable care by or on behalf of the
Corporation.
 
 
Section 6. Fiscal Year.
           ------------
 
     The  fiscal  year of the  Corporation  shall be as  fixed  by the  Board of
Directors.
 
 
                                      D-15
 
 
<PAGE>
 
 
 
 
 
 
Section 7. Time Periods.
           ------------
 
     In applying any  provision of these  Bylaws which  requires  that an act be
done or no be done a  specified  number of days prior to an event or that an act
be done  during  a period  of a  specified  number  of days  prior to an  event,
calendar  days shall be used,  the day of the doing of the act shall be excluded
and the day of the event shall be included.
 
 
 
Section 8. Checks, Drafts, Etc.
           --------------------
 
     In checks,  drafts and  orders  for the  payment of money,  notes and other
evidences of indebtedness,  issued in the name of the Corporation, shall, unless
otherwise  provided by resolution  of the Board of  Directors,  be signed by the
President,  a  Vice-President,  an Assistant  Vice-President,  the  Treasurer or
anAssistant Treasurer.
 
 
Section 9. Mail.
           ----
 
     Any notice or other document which is required by these Bylaws to be mailed
shall be deposited in the United States mail, postage prepaid.
 
 
Section 10. Contracts and Agreements.
            ------------------------
 
     To the  extent  permitted  by  applicable  law,  and  except  as  otherwise
prescribed by the Charter or these Bylaws,  the Board of Directors may authorize
any officer,  employee or agent of the Corporation to enter into any contract or
execute  and  deliver  any  instrument  in the  name  of and  on  behalf  of the
Corporation.  Such authority may be general or confined to specific instances. A
person  who holds more than one  office in the  Corporation  may not act in more
than one capacity to execute,  acknowledge,  or verify an instrument required by
law to be executed, acknowledged, or verified by more than one officer.
 
 
 
 
                                  ARTICLE VIII
                                   AMENDMENTS
 
 
     These Bylaws may be adopted, amended or repealed as provided in the Charter
of the Corporation.