==============================================================

 

                          AMENDED AND RESTATED BY-LAWS

                                       OF

                                CITI TRENDS, INC.

 

         ==============================================================

 

 

 

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                                TABLE OF CONTENTS

 

                                                                            Page

 

 

I.       OFFICES...............................................................1

II.      STOCKHOLDERS..........................................................1

         Section 2.1 Annual Meetings...........................................1

         Section 2.2 Time and Place of Special Meetings........................1

         Section 2.3 Notice of Meetings........................................2

         Section 2.4 Organization; Procedure...................................3

         Section 2.5 Quorum....................................................3

         Section 2.6 Record Date...............................................4

         Section 2.7 Proxies...................................................4

         Section 2.8 Voting....................................................5

         Section 2.9 Voting by Ballot..........................................5

         Section 2.10 Inspector of Elections...................................5

         Section 2.11 No Stockholder Action by Written Consent.................6

         Section 2.12 List of Stockholders Entitled to Vote....................6

         Section 2.13 Notice of Stockholder Business and Nominations...........6

         Section 2.14 Opening and Closing of Polls.............................9

         Section 2.15 Confidential Voting......................................9

III.     DIRECTORS.............................................................9

         Section 3.1 General Powers............................................9

         Section 3.2 Number and Election of Directors.........................10

         Section 3.3 Classified Board; Election of Directors..................10

         Section 3.4 Additional Directorships.................................10

         Section 3.5 Place of Meetings........................................10

         Section 3.6 Annual and Regular Meetings..............................10

         Section 3.7 Special Meetings.........................................11

         Section 3.8 Executive Session........................................11

         Section 3.9 Quorum...................................................11

         Section 3.10 Adjournment.............................................11

         Section 3.11 Action without Meeting..................................12

         Section 3.12 Regulations; Manner of Acting...........................12

         Section 3.13 Attendance by Telephone.................................12

         Section 3.14 Removal.................................................12

         Section 3.15 Compensation of Directors...............................12

         Section 3.16 Reliance on Accounts and Reports, etc...................12

IV.      BOARD COMMITTEES.....................................................12

         Section 4.1 How Constituted..........................................12

         Section 4.2 Powers...................................................13

         Section 4.3 Proceedings..............................................15

         Section 4.4 Quorum and Manner of Acting..............................15

         Section 4.5 Action by Telephonic Communications......................15

         Section 4.6 Resignations.............................................15

         Section 4.7 Removal..................................................16

         Section 4.8 Vacancies................................................16

V.       OFFICERS.............................................................16

 

 

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                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

 

 

         Section 5.1 Number...................................................16

         Section 5.2 Election.................................................16

         Section 5.3 Powers...................................................16

         Section 5.4 Salaries.................................................16

         Section 5.5 Removal and Resignation; Vacancies.......................16

         Section 5.6 Chairman of the Board....................................17

         Section 5.7 Chief Executive Officer..................................17

         Section 5.8 Chief Financial Officer..................................17

         Section 5.9 President................................................17

         Section 5.10 Absence or Disability of the Chief Executive Officer....17

         Section 5.11 Vice President..........................................18

         Section 5.12 Secretary...............................................18

         Section 5.13 Assistant Secretary.....................................18

         Section 5.14 Treasurer...............................................18

         Section 5.15 Assistant Treasurer.....................................18

         Section 5.16 Other Officers..........................................18

VI.      CERTIFICATES OF STOCK................................................19

         Section 6.1 Certificates of Stock, Uncertificated Shares.............19

         Section 6.2 Signatures; Facsimile....................................19

         Section 6.3 Transfer.................................................19

         Section 6.4 Replacement..............................................19

         Section 6.5 Beneficial Owners........................................20

VII.     INDEMNIFICATION OF DIRECTORS AND OFFICERS............................20

         Section 7.1 Nature of Indemnity......................................20

         Section 7.2 Advance Payment of Expenses..............................21

         Section 7.3 Procedure for Indemnification............................21

         Section 7.4 Preservation of Other Rights.............................22

         Section 7.5 Insurance................................................22

         Section 7.6 Employees and Agents.....................................22

         Section 7.7 Survival.................................................22

VIII.    GENERAL PROVISIONS...................................................22

         Section 8.1 Fiscal Year..............................................22

         Section 8.2 Corporate Seal...........................................22

         Section 8.3 Dividends................................................22

         Section 8.4 Reserves.................................................23

         Section 8.5 Execution of Instruments.................................23

         Section 8.6 Corporate Books..........................................23

         Section 8.7 Corporate Indebtedness...................................23

         Section 8.8 Deposits.................................................23

         Section 8.9 Checks...................................................24

         Section 8.10 Sale, Transfer, etc. of Securities......................24

         Section 8.11 Voting as Stockholder...................................24

         Section 8.12 Transactions with Interested Parties....................24

IX.      AMENDMENTS...........................................................25

 

 

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                                TABLE OF CONTENTS

                                   (continued)

                                                                            Page

 

 

         Section 9.1 Amendment................................................25

X.       SUBJECT TO CERTIFICATE OF INCORPORATION..............................25

 

 

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                          AMENDED AND RESTATED BY-LAWS

 

                                       OF

 

                                CITI TRENDS, INC.

 

 

--------------------------------------------------------------------------------

 

 

                                    PREAMBLE

 

         These  Amended  and  Restated  By-Laws,  as the same may be amended and

restated from time to time (the "By-Laws"), are subject to, and governed by, the

General  Corporation  Law of the State of  Delaware  (the  "GCL") and the second

amended and restated  certificate of  incorporation,  as the same may be amended

and restated  from time to time,  of Citi Trends,  Inc., a Delaware  corporation

(the "Corporation") then in effect (the "Certificate"). In the event of a direct

conflict between the provisions of these By-Laws and the mandatory provisions of

the GCL or the provisions of the Certificate,  such provisions of the GCL or the

Certificate, as the case may be, will be controlling.

 

                                       I.

 

                                     OFFICES

 

         The  registered  office  of the  Corporation  shall  be in the  City of

Wilmington,  County of New Castle, State of Delaware and the name and address of

its registered agent is c/o The Corporation  Trust Company,  1209 Orange Street,

Wilmington,  Delaware 19801. The Corporation may also have offices at such other

places both  within and without the State of Delaware as the Board of  Directors

may from time to time determine or the business of the Corporation may require.

 

                                      II.

 

                                  STOCKHOLDERS

 

         Section 2.1. Annual Meetings. The annual meeting of the stockholders of

the Corporation for the purpose of electing directors and for the transaction of

such other business as may properly be brought before such meeting shall be held

on such  date,  and at such  time and  place  within  or  without  the  State of

Delaware,  as may be designated  from time to time by resolution of the Board of

Directors and set forth in the notice or waiver of notice of the meeting.

 

         Section  2.2  Time and  Place of  Special  Meetings.  Unless  otherwise

prescribed by law or by the Certificate, special meetings of stockholders of the

Corporation  may be called only by (a) the Chairman of the Board of Directors of

the Corporation; (b) the Board of Directors pursuant to a resolution approved by

the Board of  Directors;  or (c) the Board of  Directors  upon a request  by the

holders  of at least  fifty  percent  (50%) in voting  power of all  outstanding

shares of capital  stock of the  Corporation  entitled to vote at such  meeting.

Such request shall state the purpose of the proposed meeting.

 

 

 

                                      -1-

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         All special meetings of the  stockholders  shall be held at such place,

within or without the State of Delaware,  as shall be designated by the Board of

Directors.  In the absence of any such  designation  by the Board of  Directors,

each such meeting shall be held at the principal office of the Corporation.

 

         Section  2.3  Notice  of  Meetings.  The  Secretary  or  any  Assistant

Secretary shall cause written notice of the place, if any, date and hour of each

meeting of the stockholders and the means of remote  communications,  if any, by

which  stockholders  and proxy holders may be deemed to be present in person and

vote at such  meeting  and,  in the case of a special  meeting,  the  purpose or

purposes for which such  meeting is called,  to be given in the manner set forth

in the next paragraph,  not less than ten (10) nor more than sixty (60) calendar

days prior to the meeting,  to each  stockholder  of record  entitled to vote at

such  meeting.   If  a  stockholder   meeting  is  to  be  held  via  electronic

communications and stockholders will take action at such meeting,  the notice of

such meeting must:  (a) specify the means of remote  communications,  if any, by

which  stockholders  and proxy  holders  may be deemed to be present and vote at

such meeting; and (b) provide the information required to access the stockholder

list.

 

         Notices are deemed given (i) if by mail,  when  deposited in the United

States mail, postage prepaid,  directed to the stockholder at his or her address

as it appears on the record of stockholders of the Corporation, or, if he or she

shall have filed with the Secretary of the  Corporation  a written  request that

notices to him or her be mailed to some other  address,  then directed to him or

her at such other  address;  (ii) if by facsimile,  when faxed to a number where

the stockholder has consented to receive  notice;  (iii) if by electronic  mail,

when  mailed   electronically  to  an  electronic  mail  address  at  which  the

stockholder  consented  to  receive  such  notice;  (iv)  if  by  posting  on an

electronic  network  (such as a website or  chatroom)  together  with a separate

notice to the stockholder of such specific  posting,  upon the later to occur of

(A) such posting or (B) the giving of the separate  notice of such  posting;  or

(v) if by any other  form of  electronic  communication,  when  directed  to the

stockholder in the manner consented to by the stockholder.

 

         For notice given by  electronic  transmission  to a  stockholder  to be

effective,  such stockholder must consent to the Corporation's  giving notice by

that  particular  form of  electronic  transmission.  A  stockholder  may revoke

consent to receive  notice by electronic  transmission  by written notice to the

Corporation.  A  stockholder's  consent to notice by electronic  transmission is

automatically  revoked if the  Corporation is unable to deliver two  consecutive

electronic  transmission  notices  and  such  inability  becomes  known  to  the

Secretary,  Assistant Secretary,  the transfer agent or other person responsible

for giving notice.

 

         A written  waiver of any such  notice  signed  by the  person  entitled

thereto,  or a waiver by  electronic  transmission  by the  person  entitled  to

notice,  whether  before  or after  the time  stated  therein,  shall be  deemed

equivalent  to notice.  Attendance of an individual at a meeting in person or by

proxy  shall  constitute  a waiver of notice of such  meeting,  except  when the

person  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.  Business  transacted at any special meeting

of stockholders  shall be limited to the purposes stated in the notice.  Neither

the  business  to be  transacted  at, nor the  purpose  of, an annual or special

meeting of stockholders need be specified in any written waiver of notice.

 

 

                                      -2-

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         Section 2.4 Organization; Procedure. The Chairman, or in the Chairman's

absence or at the Chairman's  direction,  any officer of the  Corporation  shall

call all meetings of the stockholders to order and shall act as chairman of such

meeting.  The Secretary of the  Corporation  or, in such officer's  absence,  an

Assistant  Secretary  shall act as  secretary  of the  meeting.  If neither  the

Secretary  nor an Assistant  Secretary  is present,  the chairman of the meeting

shall  appoint a secretary of the meeting.  The date and time of the opening and

the closing of the polls for each matter upon which the  stockholders  will vote

at a meeting shall be announced at the meeting by the person  presiding over the

meeting.  The  Board  of  Directors  may  adopt by  resolution  such  rules  and

regulations  for the  conduct of the  meeting of  stockholders  as it shall deem

appropriate.  Except to the extent  inconsistent with such rules and regulations

as adopted by the Board of Directors,  the person  presiding over any meeting of

stockholders  shall have the right and  authority  to convene and to adjourn the

meeting, to prescribe such rules,  regulations and procedures and to do all such

acts as, in the  judgment of such  presiding  person,  are  appropriate  for the

proper conduct of the meeting.  Such rules,  regulations or procedures,  whether

adopted by the Board of Directors or prescribed  by the presiding  person of the

meeting, may include,  without limitation,  the following: (a) the establishment

of an agenda or order of business for the meeting;  (b) rules and procedures for

maintaining  order  at  the  meeting  and  the  safety  of  those  present;  (c)

limitations on attendance at or  participation in the meeting to stockholders of

record of the Corporation, their duly authorized and constituted proxies or such

other  persons as the  presiding  person of the  meeting  shall  determine;  (d)

restrictions  on entry to the meeting after the time fixed for the  commencement

thereof;  and (e)  limitations  on the time allotted to questions or comments by

participants.  The presiding person at any meeting of stockholders,  in addition

to making any other determinations that may be appropriate to the conduct of the

meeting, shall, if the facts warrant,  determine and declare to the meeting that

a matter or business  was not  properly  brought  before the meeting and if such

presiding person should so determine,  such presiding person shall so declare to

the  meeting and any such matter or business  not  properly  brought  before the

meeting  shall  not be  transacted  or  considered.  Unless  and  to the  extent

determined by the Board of Directors or the person  presiding  over the meeting,

meetings of stockholders shall not be required to be held in accordance with the

rules of parliamentary procedure.

 

         Section  2.5  Quorum.  Except  as  otherwise  provided  by law,  by the

Certificate or these By-Laws,  the holders of one-third (1/3) in voting power of

the capital stock issued and outstanding  and entitled to vote thereat,  present

in person or represented by proxy,  shall constitute a quorum at all meetings of

the stockholders  for the transaction of business,  except that the holders of a

majority  in voting  power of the  capital  stock  issued  and  outstanding  and

entitled to vote thereat,  present in person or represented  by proxy,  shall be

required to  constitute  a quorum for (a) a vote for any director in a contested

election;  (b) the removal of a director; or (c) the filling of a vacancy on the

Board of  Directors if the filling of such vacancy is submitted to a vote of the

stockholders. If a quorum is not present at any meeting of the stockholders, the

presiding  officer shall have the power to adjourn any such meeting from time to

time  until  a  quorum  is  present.  Notice  of any  adjourned  meeting  of the

stockholders of the Corporation need not be given if the place, if any, date and

hour  thereof,  and  the  means  of  remote  communications,  if any,  by  which

stockholders and proxy holders may be deemed to be present in person and vote at

such meeting,  are announced at the meeting at which the  adjournment  is taken;

provided, however, that if the adjournment is for more than thirty (30) calendar

days, or if after the adjournment a new record date for the adjourned meeting is

fixed  pursuant  to  Section  2.6 of these  By-Laws,  a notice of the  adjourned

meeting,  conforming to the requirements of Section 2.3 of these By-Laws,  shall

be given to each stockholder of record entitled

 

 

                                      -3-

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to vote at such meeting.  At any adjourned meeting at which a quorum is present,

any business may be transacted  that might have been  transacted on the original

date of the meeting.

 

         Section 2.6 Record Date.  In order that the  Corporation  may determine

the  stockholders  (a)  entitled  to  notice  of or to  vote at any  meeting  of

stockholders or any adjournment  thereof; (b) entitled to receive payment of any

dividend or other  distribution  or allotment of any rights;  or (c) entitled to

exercise any rights in respect of any change,  conversion or exchange of capital

stock or for the purpose of any other lawful action,  the Board of Directors may

fix a record  date,  which record date shall not precede the date upon which the

resolution  fixing the record  date is  adopted by the Board of  Directors,  and

which record date (i) in the case of clause (a) above,  shall,  unless otherwise

required  by law,  not be more than sixty  (60) nor less than ten (10)  calendar

days before the date of such meeting;  and (ii) in the case of clause (b) above,

shall not be more than sixty (60) calendar days prior to such action. If for any

reason the Board of  Directors  shall not have fixed a record  date for any such

purpose,  the record date for such purpose  shall be  determined  as provided by

law. A determination  of the  stockholders of record entitled to notice of or to

vote at a meeting of stockholders shall apply to any adjournment of the meeting;

provided, however, that the Board of Directors may fix a new record date for the

adjourned meeting.

 

         Section 2.7 Proxies.  At all meetings of stockholders,  any stockholder

entitled to vote thereat shall be entitled to vote in person or by proxy, but no

proxy shall be voted or acted upon after three years from its date,  unless such

proxy  provides  for a longer  period.  Without  limiting  the manner in which a

stockholder may authorize  another person or persons to act for such stockholder

as proxy  pursuant to the GCL, the following  shall  constitute a valid means by

which a stockholder  may grant such  authority:  (a) a stockholder may execute a

written  instrument  authorizing  another  person  or  persons  to act for  such

stockholder  as  proxy,   and  execution  of  the  written   instrument  may  be

accomplished  by  the  stockholder  or  the  stockholder's  authorized  officer,

director,  employee, trustee or agent signing such writing or causing his or her

signature to be affixed to such writing by any reasonable means  including,  but

not limited to, by  facsimile  signature;  or (b) a  stockholder  may  authorize

another person or persons to act for such  stockholder as proxy by  transmitting

or  authorizing  the  transmission  of a telegram,  cablegram  or other means of

electronic  transmission to the person who will be the holder of the proxy or to

a proxy solicitation firm, proxy support service organization or like agent duly

authorized  by the person  who will be the  holder of the proxy to receive  such

transmission,  provided  that any such  telegram,  cablegram  or other  means of

electronic  transmission  must either set forth or be submitted with information

from which it can be  determined  that the  telegram,  cablegram  or  electronic

transmission  was authorized by the  stockholder.  If it is determined that such

telegrams,   cablegrams  or  other  electronic   transmissions  are  valid,  the

inspectors,  or if there are no  inspectors,  such  other  persons  making  that

determination shall specify the information upon which they relied.

 

         Any copy, facsimile telecommunication or other reliable reproduction of

the writing or transmission  created pursuant to the preceding paragraph of this

Section  2.7 may be  substituted  or used in  lieu of the  original  writing  or

transmission  for any  and all  purposes  for  which  the  original  writing  or

transmission could be used, provided that such copy, facsimile telecommunication

or other  reproduction  shall be a complete  reproduction of the entire original

writing or transmission.

 

         Proxies shall be filed with the Secretary of the meeting prior to or at

the  commencement  of the  meeting  to  which  they  relate.  A proxy  shall  be

irrevocable if it states that it is irrevocable  and if, and only as long as, it

is coupled with an interest sufficient in law to support an irrevocable power. A

 

 

                                      -4-

<PAGE>

 

 

stockholder  may revoke any proxy  which is not  irrevocable  by  attending  the

meeting and voting in person or by filing an instrument in writing  revoking the

proxy or by filing  another duly  executed  proxy  bearing a later date with the

Secretary.

 

         Section 2.8 Voting.  Unless otherwise  required by law, the Certificate

or these By-Laws,  any question brought before any meeting of stockholders shall

be  decided  by a  majority  of  votes  cast  by  holders  of the  Common  Stock

represented  and  entitled to vote  thereon,  with each such  holder  having the

number of votes per share and voting as a member of such classes of stockholders

as may be provided in the Certificate, unless the question is one upon which, by

express provision of law or of the Certificate, a different vote is required, in

which case such express  provision shall govern and control the decision of such

question.

 

         Section 2.9 Voting by Ballot. No vote of the stockholders need be taken

by written  ballot,  or by a ballot  submitted by  electronic  transmission,  or

conducted by inspectors of elections unless otherwise  required by law. Any vote

not  required  to be  taken by  ballot  or by  ballot  submitted  by  electronic

transmission may be conducted in any manner approved by the presiding officer at

the meeting at which such vote is taken.

 

         Section 2.10 Inspector of Elections.  The Corporation may, and shall if

required by law, in advance of any meeting of stockholders,  appoint one or more

inspectors of election,  who may be employees of the Corporation,  to act at the

meeting or any  adjournment  thereof and to make a written report  thereof.  The

Corporation may designate one or more persons as alternate inspectors to replace

any  inspector  who fails to act. In the event that no inspector so appointed or

designated is able to act at a meeting of stockholders,  the person presiding at

the meeting  shall appoint one or more  inspectors  to act at the meeting.  Each

inspector,  before entering upon the discharge of his or her duties,  shall take

and sign an oath to execute  faithfully  the  duties of  inspector  with  strict

impartiality  and according to the best of his or her ability.  The inspector or

inspectors so appointed or  designated  shall (a) ascertain the number of shares

of capital  stock of the  Corporation  outstanding  and the voting power of each

such  share;  (b)  determine  the  shares of  capital  stock of the  Corporation

represented at the meeting and the validity of proxies and ballots;  (c) specify

the   information   relied  upon  to  determine   the  validity  of   electronic

transmissions  in  accordance  with Section 2.7 hereof;  (d) count all votes and

ballots;  (e)  determine  and  retain  for a  reasonable  period a record of the

disposition of any challenges made to any  determination by the inspectors;  and

(f) certify their  determination of the number of shares of capital stock of the

Corporation  represented at the meeting and such inspectors'  count of all votes

and ballots.  Such certification and report shall specify such other information

as may be  required  by law.  No person who is a  candidate  for an office at an

election may serve as an inspector at such election.

 

         When  determining  the  shares of  capital  stock  represented  and the

validity  of  proxies  and  ballots,  the  inspector  shall  be  limited  to  an

examination of the proxies,  any envelopes  submitted  with those  proxies,  any

information  provided in accordance  with Section 2.7 of these By-Laws,  ballots

and the regular books and records of the Corporation. The inspector may consider

other reliable  information for the limited  purpose of reconciling  proxies and

ballots  submitted  by or on behalf of banks,  brokers  or their  nominees  or a

similar  person  which  represent  more  votes  than  the  holder  of a proxy is

authorized by the record owner to cast or more votes than the stockholder  holds

of record. If the inspector considers other reliable  information as outlined in

this section, the inspector, at the time of his or her certification pursuant to

provision  (f) of this  Section  2.10  shall  specify  the  precise  information

considered,  the person or persons from whom the information was obtained,

 

 

                                      -5-

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when this  information  was  obtained,  the means by which the  information  was

obtained,  and the basis for the  inspector's  belief that such  information  is

accurate and reliable.

 

         Section  2.11 No  Stockholder  Action by  Written  Consent.  Any action

required or permitted to be taken by the stockholders of the Corporation must be

effected at a duly called annual or special  meeting of the  stockholders of the

Corporation,  and the ability of the  stockholders  to consent in writing to the

taking of any action is specifically denied.

 

         Section 2.12 List of Stockholders  Entitled to Vote. The officer of the

Corporation who has charge of the stock ledger of the Corporation  shall prepare

and  make,  at least ten (10) days  before  every  meeting  of  stockholders,  a

complete list of the stockholders  entitled to vote at the meeting,  arranged in

alphabetical  order,  and showing the address of each stockholder and the number

and class of shares registered in the name of each stockholder.  Such list shall

be open to the  examination of any  stockholder,  for any purpose germane to the

meeting,  during ordinary business hours, for a period of at least ten (10) days

prior to the meeting,  either at a place within the city where the meeting is to

be held, which place shall be specified in the notice of the meeting, or, if not

so specified,  at the place where the meeting is to be held. The list shall also

be produced and kept at the time and place of the meeting  during the whole time

thereof,  and may be  inspected by any  stockholder  of the  Corporation  who is

present.

 

         Section 2.13 Notice of Stockholder Business and Nominations.

 

         (a)      Annual Meetings of Stockholders.

 

              (i)    Nominations  of  persons  for  election  to  the  Board  of

Directors and the proposal of business to be considered by the  stockholders  at

an annual meeting of stockholders may be made only (A) by or at the direction of

the Board of Directors or the Chief Executive Officer; (B) by any stockholder of

the  Corporation  who is entitled to vote at the meeting,  who complies with the

applicable  requirements of the Securities Exchange Act of 1934, as amended (the

"Exchange Act"), and the rules and regulations promulgated  thereunder,  and the

notice procedures set forth in clause (ii) of this Section 2.13(a) and who was a

stockholder  of record at the time such notice is delivered to the  Secretary of

the Corporation;  or (C) pursuant to the Corporation's notice of meeting (or any

supplement thereto).

 

              (ii)   For  nominations or other business to be  properly  brought

before an annual meeting by a  stockholder,  pursuant to clause (B) of paragraph

(a)(i) of this Section  2.13,  the  stockholder  must have given  timely  notice

thereof  in  writing  to the  Secretary  of the  Corporation  and any such other

business  other  than  nominations  of  persons  for  election  to the  Board of

Directors  must  otherwise  be a proper  matter for  stockholder  action.  To be

timely, a stockholder's  notice shall be delivered or mailed to the Secretary at

the principal  executive  offices of the  Corporation and received not less than

ninety (90) calendar  days, nor more than one hundred twenty (120) calendar days

prior to the first anniversary of the previous year's annual meeting;  provided,

however,  that in the event that no annual meeting was held in the previous year

or the date of the annual  meeting was changed by more than thirty (30) calendar

days from the anniversary date of the previous year's annual meeting,  notice by

the stockholder  must be so received not less than ninety (90) calendar days nor

more than one hundred twenty (120) calendar days prior to such annual meeting or

ten (10) calendar days  following the date on which public  announcement  of the

date of the meeting is first made by the  Corporation  or notice of such meeting

is given. In no event shall an adjournment or

 

 

                                      -6-

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postponement of an annual meeting (or the public announcement  thereof) commence

a new time period (or extend any time  period)  for the giving of  stockholder's

notice as described above. Such  stockholder's  notice shall set forth (A) as to

each person whom the stockholder proposes to nominate for election or reelection

as a director  all  information  relating  to such person that is required to be

disclosed in solicitations of proxies for election of directors, or is otherwise

required,  in each case pursuant to  Regulation  14A under the Exchange Act, and

Rule 14a-11  thereunder,  including such person's written consent to being named

in the proxy statement as a nominee and to serving as a director if elected; (B)

as to any other  business  that the  stockholder  proposes  to bring  before the

meeting,  a brief  description of the business  desired to be brought before the

meeting (including the text of any resolutions proposed for consideration),  the

reasons for conducting  such business at the meeting and, in the event that such

business  includes a proposal to amend either the  Certificate or the By-Laws of

the  Corporation,  the  language of the  proposed  amendment;  (C) any  material

interest in such business of such  stockholder  and of any  beneficial  owner on

whose behalf the proposal is made and, in the case of nominations, a description

of all arrangements or  understandings  between the stockholder and each nominee

and any other persons  (naming them) pursuant to which the nominations are to be

made by the stockholder;  (D) a representation  that the stockholder is a holder

of record of capital stock of the  Corporation  entitled to vote at such meeting

and intends to appear in person or by a qualified  representative at the meeting

to propose such business;  (E) a  representation  whether the stockholder or the

beneficial  owner,  if any,  intends or is part of a group which  intends (1) to

deliver  a proxy  statement  and/or  form of proxy to  holders  of at least  the

percentage of the Corporation's outstanding capital stock required to approve or

adopt the proposal or elect the nominee and/or (2) otherwise to solicit  proxies

from  stockholders in support of such proposal or nomination;  and (F) as to the

stockholder  giving  the  notice and any  beneficial  owner on whose  behalf the

nomination or proposal is made, (1) the name and address of such stockholder, as

it appears on the Corporation's  books, and of such beneficial owner and (2) the

class and number of shares of capital stock of the  Corporation  which are owned

beneficially  and of record by such  stockholder and such  beneficial  owner. If

such stockholder does not appear or send a qualified  representative  to present

such  proposal at such annual  meeting,  the  Corporation  need not present such

proposal for a vote at such meeting,  notwithstanding that proxies in respect of

such vote may have been received by the  Corporation.  The presiding  officer of

any annual meeting of stockholders  shall refuse to permit any business proposed

by a stockholder  to be brought before such annual  meeting  without  compliance

with the foregoing  procedures or if the stockholder solicits proxies in support

of  such  stockholder's  proposal  without  such  stockholder  having  made  the

representation  required by clause (E) above. The foregoing notice  requirements

shall be deemed  satisfied by a stockholder if the  stockholder has notified the

Corporation  of his or her intention to present a proposal at an annual  meeting

in compliance with Rule 14a-8 (or any successor  thereof)  promulgated under the

Exchange  Act and  such  stockholder's  proposal  has been  included  in a proxy

statement that has been prepared by the  Corporation to solicit proxies for such

annual meeting. The Corporation may require any proposed nominee to furnish such

other  information as it may reasonably  require to determine the eligibility of

such proposed nominee to serve as a director of the Corporation.

 

              (iii)  Notwithstanding   anything   in  the  second   sentence  of

paragraph  (a)(ii) of this Section 2.13 to the  contrary,  in the event that the

number of directors to be elected to the Board of Directors at an annual meeting

is increased and there is no public  announcement by the Corporation  naming the

nominees for the  additional  directorships  at least one hundred (100) calendar

days prior to the first  anniversary of the preceding  year's annual meeting,  a

stockholder's notice required by this

 

 

                                      -7-

<PAGE>

 

 

Section 2.13 shall also be considered  timely, but only with respect to nominees

for the additional  directorships,  if it shall be delivered to the Secretary at

the principal  executive  offices of the Corporation not later than the close of

business on the tenth day following the day on which such public announcement is

first made by the Corporation.

 

         (b)      Special Meetings of Stockholders.

 

              (i)    Only such  business as shall have been  brought  before the

special  meeting of the  stockholders  pursuant to the  Corporation's  notice of

meeting  pursuant to Section 2.2 of these  By-Laws  shall be  conducted  at such

meeting.

 

              (ii)   In the event  that directors are to be elected at a special

meeting  of  stockholders  pursuant  to the  Corporation's  notice  of  meeting,

nominations  of persons for  election to the Board of  Directors  may be made at

such special meeting of stockholders  (A) by or at the direction of the Board of

Directors;  or (B) provided  that the Board of  Directors  has  determined  that

directors  shall  be  elected  at  such  meeting,  by  any  stockholder  of  the

Corporation who is entitled to vote at the meeting, who complies with the notice

procedures  set forth in this Section 2.13 and who is a stockholder of record at

the  time  such  notice  is  delivered  to the  Secretary  of  the  Corporation.

Nominations  by  stockholders  of persons for election to the Board of Directors

may be made at such special meeting of stockholders if the stockholder's  notice

as required by paragraph  (a)(ii) of this Section 2.13 shall be delivered to the

Secretary at the principal  executive  offices of the  Corporation not more than

one hundred  twenty (120)  calendar  days prior to such special  meeting and not

less than ninety (90)  calendar  days prior to such special  meeting or ten (10)

calendar days following the date on which a public  announcement  of the date of

the special  meeting and of the  nominees to be elected at such meeting is first

made or notice of such meeting is given.  In no event shall the  adjournment  or

postponement of a special meeting (or the public announcement  thereof) commence

a new time period (or extend any time period) for the giving of a  stockholder's

notice as described above.

 

         (c)      General.

 

              (i)    Only persons  who  are  nominated in  accordance  with  the

procedures  set  forth  in this  Section  2.13  shall  be  eligible  to serve as

directors and only such business shall be conducted at a meeting of stockholders

as shall have been brought before the meeting in accordance  with the procedures

set  forth in this  Section  2.13.  Except as  otherwise  provided  by law,  the

Certificate  or these By-Laws,  the presiding  officer of the meeting shall have

the power and duty to determine whether a nomination or any business proposed to

be brought  before the  meeting  was made or  proposed  in  accordance  with the

procedures set forth in this Section 2.13 (including  whether the stockholder or

beneficial  owner,  if any, on whose behalf the  nomination  or proposal is made

solicited (or is part of a group which solicited) or did not so solicit,  as the

case may be, proxies in support of such stockholder's representation as required

by clause  (a)(ii)(E) of this Section  2.13) and, if any proposed  nomination or

business is not in  compliance  with this  Section  2.13,  to declare  that such

defective  proposal or  nomination  shall be  disregarded.  Notwithstanding  the

foregoing  provisions of this Section 2.13, if the  stockholder  (or a qualified

representative  of the  stockholder)  does not  appear at the  annual or special

meeting of  stockholders of the Corporation to present a nomination or business,

such  nomination  shall be disregarded  and such proposed  business shall not be

transacted,  notwithstanding  that proxies in respect of such vote may have been

received by the Corporation.

 

 

                                      -8-

<PAGE>

 

 

              (ii)   For purposes of this Section  2.13,  "public  announcement"

shall  include  disclosure  in a press  release  reported  by the Dow Jones News

Service,  Associated Press or comparable  national news service or in a document

publicly filed by the  Corporation  with the Securities and Exchange  Commission

pursuant to Section 13, 14, or 15(d) of the Exchange Act.

 

              (iii)  For  purposes of this  Section  2.13,  no  adjournment  nor

notice of  adjournment of any meeting shall be deemed to constitute a new notice

of such  meeting  for  purposes  of  this  Section  2.13  and in  order  for any

notification  required to be delivered by a stockholder pursuant to this Section

2.13 to be timely,  such  notification  must be delivered within the periods set

forth above with respect to the originally scheduled meeting.

 

              (iv)   Notwithstanding  the  foregoing  provisions of this Section

2.13, a stockholder  shall also comply with all applicable  requirements  of the

Exchange  Act and the rules  and  regulations  thereunder  with  respect  to the

matters set forth in this  Section  2.13.  Nothing in this Section 2.13 shall be

deemed to affect any rights of stockholders to request inclusion of proposals in

the Corporation's proxy statement pursuant to Rule 14a-8 under the Exchange Act.

 

         Section  2.14  Opening and Closing of Polls.  The date and time for the

opening  and the  closing  of the polls for the  matters  to be voted  upon at a

stockholder  meeting  shall be announced at the  meeting.  The  inspector of the

election shall be prohibited from accepting any ballots, proxies or votes or any

revocations  thereof or changes  thereto after the closing of the polls,  unless

the  Court  of  Chancery  upon  application  by a  stockholder  shall  determine

otherwise.

 

         Section 2.15 Confidential Voting.

 

         (a)  Proxies  and  ballots   that   identify   the  votes  of  specific

stockholders  shall be kept in confidence by the inspectors of election  unless:

(i) there is an opposing solicitation with respect to the election or removal of

directors;  (ii)  disclosure is required by applicable  law; (iii) a stockholder

expressly  requests  or  otherwise  authorizes  disclosure  in  relation to such

stockholder's vote; or (iv) the Corporation  concludes in good faith that a bona

fide dispute exists as to the  authenticity  of one or more proxies,  ballots or

votes,  or as to the  accuracy of any  tabulation  of such  proxies,  ballots or

votes.

 

         (b) The  inspectors  of  election  and any  authorized  agents or other

persons  engaged in the  receipt,  count and  tabulation  of proxies and ballots

shall be advised of this Section 2.15 and instructed to comply herewith.

 

         (c) The  inspectors  of election  shall  certify,  to the best of their

knowledge  based on due  inquiry,  that  proxies and  ballots  have been kept in

confidence as required by this Section 2.15.

 

                                      III.

 

                                    DIRECTORS

 

         Section 3.1 General Powers. The business and affairs of the Corporation

shall be managed by or under the  direction of a Board of  Directors,  which may

exercise  all the  powers of the  Corporation  and do all such  lawful  acts and

things as are not by law or by the  Certificate or by these By-Laws  directed or

required to be exercised or done by the stockholders.

 

 

                                      -9-

<PAGE>

 

 

         Section 3.2 Number and Election of  Directors.  The number of directors

of the  Corporation  shall be fixed from time to time by resolution of the Board

of Directors adopted by the vote of a majority of the entire Board of Directors,

but such  number  shall in no case be less than five (5) nor more than nine (9).

The  majority  of the  directors  will be  "independent"  under the rules of the

Nasdaq  National  Market  (the  "Nasdaq")  subject  to the  phase in  rules  for

companies  listing on the Nasdaq in connection  with an initial public  offering

and the controlled company exception under the Nasdaq rules.  Except as provided

in Section 3.3 of this Article, directors shall be elected by a plurality of the

votes cast at Annual  Meetings of  Stockholders.  Any director may resign at any

time by submitting an electronic  transmission or by delivering a written notice

of  resignation,  signed by such  director,  to the  Chairman or the  Secretary.

Unless otherwise  specified  therein,  such  resignation  shall take effect upon

delivery. Directors need not be stockholders.

 

         Section  3.3  Classified  Board;  Election of  Directors.  The Board of

Directors shall be divided into three classes, designated Classes I, II and III,

which shall be as nearly equal in number as possible. Directors of Class I shall

hold  office  for an  initial  term  expiring  at the first  annual  meeting  of

stockholders to be held after the date hereof.  Directors of Class II shall hold

office for an initial term expiring at the second annual meeting of stockholders

to be held after the date  hereof.  Directors of Class III shall hold office for

an initial term of office  expiring at the third annual meeting of  stockholders

to be held after the date hereof. Except as otherwise provided in Section 3.4 of

these By-Laws,  at each annual meeting of stockholders of the  Corporation,  the

respective successors of the directors whose terms are expiring shall be elected

for terms  expiring  at the  annual  meeting of  stockholders  held in the third

succeeding year.

 

         Section 3.4 Additional  Directorships.  Newly created  directorships or

vacancies  on the  Board of  Directors  shall be  filled  by a  majority  of the

directors then in office,  regardless of whether such  directors  fulfill quorum

requirements,   or  by  a  sole  remaining  director;   and  the  newly  created

directorships shall be distributed among the three classes of directors so that,

as nearly as  possible,  each  class  will  consist  of  one-third  (1/3) of the

Corporation's  directors.  Any director elected to fill any vacancy on the Board

of Directors not resulting from an increase in the number of directors  shall be

of the same class as that of the director whose death,  resignation,  removal or

other event caused the vacancy and shall have the same remaining term as that of

his  predecessor.  A  director  elected  to fill a  vacancy  or a newly  created

directorship shall hold office until such director's  successor has been elected

and qualified or until such  director's  earlier death,  resignation or removal.

Any vacancy or newly created  directorship may also be filled by the vote of the

holders  of a  majority  in  voting  power  of  the  capital  stock  issued  and

outstanding and entitled to vote.  Directors may be removed only for cause,  and

only by the  affirmative  vote of at least a  majority  in  voting  power of all

outstanding  capital stock of the Corporation  entitled to vote generally in the

election of directors, voting as a single class.

 

         Section  3.5  Place  of  Meetings.  The  Board  of  Directors  may hold

meetings,  both  regular  and  special,  either  within or without  the State of

Delaware.

 

         Section  3.6 Annual and  Regular  Meetings.  The annual  meeting of the

Board of Directors for the purpose of electing  officers and for the transaction

of such other  business as may come before the meeting  shall be held as soon as

practicable  following  adjournment of the annual  meeting of the  stockholders.

Notice of such annual meeting of the Board of Directors  need not be given.  The

Board of Directors  from time to time may by resolution  provide for the holding

of regular  meetings and fix the place (which may be within or without the State

of Delaware) and the date and

 

 

                                      -10-

<PAGE>

 

 

hour of such meetings.  Notice of regular meetings need not be given;  provided,

however, that if the Board of Directors shall fix or change the time or place of

any regular meeting,  notice of such action shall be mailed promptly, or sent by

telephone,  including a voice  messaging  system or other  system or  technology

designed to record and communicate messages,  telegraph,  facsimile,  electronic

mail or other electronic means, to each director who shall not have been present

at the meeting at which such action was taken,  addressed or  transmitted to him

or her at his or  her  usual  place  of  business,  or  shall  be  delivered  or

transmitted to him or her personally. Notice of such action need not be given to

any director who attends the first  regular  meeting  after such action is taken

without  protesting  the  lack  of  notice  to him or  her,  prior  to or at the

commencement of such meeting,  or to any director who submits a signed waiver of

notice, whether before or after such meeting.

 

         Section  3.7  Special  Meetings.  Special  meetings  of  the  Board  of

Directors  shall be held whenever  called by the  Chairman,  any director or the

Chief  Executive  Officer  (or,  in the event of the Chief  Executive  Officer's

absence or  disability,  by any other  officer) at such place (within or without

the State of  Delaware),  date and hour as may be  specified  in the  respective

notices or waivers of notice of such meetings.  Special meetings of the Board of

Directors may be called on twenty-four (24) hours' notice, if notice is given to

each director personally or by telephone, including a voice messaging system, or

other  system  or  technology  designed  to  record  and  communicate  messages,

telegraph,  facsimile, electronic mail or other electronic means, or on five (5)

calendar  days'  notice,  if notice is mailed  to each  director,  addressed  or

transmitted  to him or her at such  director's  usual place of business or other

designated location.  Notice of any special meeting shall be deemed to have been

waived by any director who attends such meeting  without  protesting the lack of

notice to him or her, prior to or at the commencement of such meeting, or to any

director  who submits a signed  waiver of notice,  whether  before or after such

meeting, and any business may be transacted thereat.

 

         Section 3.8 Executive Session.  The independent members of the Board of

Directors  shall meet  regularly in executive  sessions at such place (within or

without  the  State  of  Delaware),  date and  hour as may be  specified  in the

respective notices or waivers of notice of such sessions.  Executive sessions of

the Board of  Directors  may be called on  twenty-four  (24) hours'  notice,  if

notice  is  given  to each  independent  director  personally  or by  telephone,

including a voice messaging  system,  or other system or technology  designed to

record and communicate messages, telegraph,  facsimile, electronic mail or other

electronic  means, or on five (5) calendar days' notice,  if notice is mailed to

each  independent  director,  addressed  or  transmitted  to him or her at  such

independent  director's  usual place of business or other  designated  location.

Notice of any  executive  session  shall be  deemed  to have been  waived by any

independent  director who attends such meeting  without  protesting  the lack of

notice to him or her, prior to or at the commencement of such meeting, or to any

independent  director who submits a signed waiver of notice,  whether  before or

after such meeting, and any business may be transacted thereat.

 

         Section 3.9 Quorum. Except as may be otherwise specifically provided by

law,  the  Certificate  or  these  By-Laws,  at all  meetings  of the  Board  of

Directors, a majority of the entire Board of Directors shall constitute a quorum

for the  transaction  of  business  and the act of a majority  of the  directors

present at any meeting at which there is a quorum  shall be the act of the Board

of Directors.

 

         Section 3.10 Adjournment.  A majority of the directors present, whether

or not a quorum is present, may adjourn any meeting of the Board of Directors to

another time or place. No notice

 

 

                                      -11-

<PAGE>

 

 

need be  given  of any  adjourned  meeting  unless  the  time  and  place of the

adjourned  meeting are not announced at the time of  adjournment,  in which case

notice  conforming to the  requirements of Section 3.7 of these By-Laws shall be

given to each director.

 

         Section 3.11 Action without Meeting. Unless otherwise restricted by the

Certificate  or these By-Laws,  any action  required or permitted to be taken at

any meeting of the Board of Directors or of any  committee  thereof may be taken

without a meeting, if all members of the Board of Directors or committee, as the

case may be, consent  thereto in writing,  and the writing or writings are filed

with the minutes of proceedings of the Board of Directors or committee.

 

         Section 3.12  Regulations;  Manner of Acting.  To the extent consistent

with applicable  law, the Certificate and these By-Laws,  the Board of Directors

may adopt such rules and regulations for the conduct of meetings of the Board of

Directors and for the  management  of the property,  affairs and business of the

Corporation as the Board of Directors may deem appropriate.  The directors shall

act only as a Board, and the individual  directors shall have no power to act on

behalf of the Board.

 

         Section 3.13 Attendance by Telephone.  Unless  otherwise  restricted by

the Certificate or these By-Laws,  members of the Board of Directors,  or of any

committee designated by the Board of Directors,  may participate in a meeting of

the Board of Directors,  or any committee,  by means of conference  telephone or

similar communications  equipment by means of which all persons participating in

the meeting  can hear each  other,  and such  participation  in a meeting  shall

constitute presence in person at the meeting.

 

         Section 3.14 Removal. Any director may be removed at any time, but only

for cause,  upon the affirmative  vote of the holders of a majority of the votes

which could be cast by the holders of all  outstanding  shares of capital  stock

entitled to vote for the  election  of  directors,  voting  together as a class,

given at a duly called annual or special meeting of stockholders.

 

         Section 3.15 Compensation of Directors.  The amount, if any, which each

director shall be entitled to receive as compensation for his or her services as

such shall be fixed from time to time by resolution of the Board of Directors.

 

         Section 3.16  Reliance on Accounts and Reports,  etc. A director,  or a

member of any  committee  designated by the Board of  Directors,  shall,  in the

performance  of his or her duties,  be fully  protected in relying in good faith

upon the records of the Corporation and upon information,  opinions,  reports or

statements presented to the Corporation by any of the Corporation's  officers or

employees,  or committees designated by the Board of Directors,  or by any other

person as to the matters the member  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.

 

                                      IV.

 

                                BOARD COMMITTEES

 

         Section 4.1 How  Constituted.  The Board of Directors may designate one

or more  Committees,  including,  but not  limited  to,  an Audit  Committee,  a

Compensation Committee and a Corporate Governance Committee, each such Committee

to consist of such number of directors as

 

 

                                      -12-

<PAGE>

 

 

from time to time may be fixed by the Board of Directors. The Board of Directors

may designate one or more directors as alternate  members of any such Committee,

who may replace any absent or  disqualified  member or members at any meeting of

such  Committee.  Thereafter,  members of each such  Committee may be designated

from time to time by the Board of Directors. Any such Committee may be abolished

or re-designated  from time to time by the Board of Directors.  Each member (and

each alternate  member) of any such Committee  (whether  designated at an annual

meeting of the Board of Directors or to fill a vacancy or otherwise)  shall hold

office until his or her successor  shall have been designated or until he or she

shall cease to be a director, or until his or her earlier death,  resignation or

removal.

 

         Section 4.2 Powers.

 

         (a) Audit Committee.  The Audit  Committee,  except as otherwise may be

provided in any  resolution  of the Board of  Directors or as may be required by

applicable  law,  shall  have and may  exercise  the  authority  of the Board of

Directors to, among other things:

 

              (i)    have direct responsibility for the selection, compensation,

retention,   replacement  and  oversight  of  the  work  of  the   Corporation's

independent  auditors,  including  prescribing  what  services are allowable and

approve in advance all services provided by the auditors;

 

              (ii)   set clear hiring policies for employees or former employees

of the independent auditors;

 

              (iii)  review all proposed corporation  hires formerly employed by

the independent auditors;

 

              (iv)   have direct  responsibility  for  ensuring its receipt from

the  independent  auditors  at  least  annually  of a formal  written  statement

delineating  all   relationships   between  the  auditor  and  the  Corporation,

consistent with Independence Standards Board Standard No. 1;

 

              (v)    discuss  with the  independent   directors   any  disclosed

relationships  or services that may impact the objectivity  and  independence of

the auditor and for taking,  or  recommending  that the full Board of  Directors

take, appropriate action to oversee the independence of the independent auditor;

 

              (vi)   discuss  with  the  internal auditors  and the  independent

auditors the overall scope and plans for their  respective  audits including the

adequacy of staffing, compensation and resources;

 

              (vii)  review,  at least  annually,  the  results and scope of the

audit and other services provided by the Corporation's  independent auditors and

discuss any audit problems or difficulties and management's response;

 

              (viii) review the Corporation's annual audited financial statement

and quarterly  financial  statements and discuss the statements  with management

and the independent auditors;

 

              (ix)   review and discuss with management,  the internal  auditors

and the independent auditors the adequacy and effectiveness of the Corporation's

internal controls,

 

 

                                      -13-

<PAGE>

 

 

including the  Corporation's  ability to monitor and manage business risk, legal

and ethical compliance programs and financial reporting;

 

              (x)    review and discuss  separately  with the internal  auditors

and the independent  auditors,  with and without management present, the results

of their examinations;

 

              (xi)   review  the   Corporation's   compliance   with  legal  and

regulatory independence;

 

              (xii)  review and  discuss  the  Corporation's  interim  financial

statements  and  the  earnings  press  releases  prior  to  the  filing  of  the

Corporation's report on Form 10-Q, as well as financial information and earnings

guidance provided to analysts and rating agencies;

 

              (xiii) review and discuss the  Corporation's  risk  assessment and

risk management policies;

 

              (xiv)  prepare  an  Audit   Committee   report   required  by  the

Securities and Exchange  Commission to be included in the  Corporation's  annual

proxy statement;

 

              (xv)   engage independent counsel and other advisors to assist the

audit committee in carrying out its duties;

 

              (xvi)  review  and   approve  all   related   party   transactions

consistent  with the rules  applied to companies  listed on the Nasdaq  National

Market; and

 

              (xvii) establish  procedures  regarding complaints received by the

Corporation or the  Corporation's  employees  regarding  accounting,  accounting

controls or accounting matters.

 

         (b)  Compensation  Committee.  The  Compensation  Committee,  except as

otherwise may be provided in any  resolution of the Board of Directors or as may

be required by applicable  law, shall have and may exercise all the authority of

the Board of Directors  with  respect to  compensation,  benefits and  personnel

administration of the employees of the Corporation to, among other things:

 

              (i)    review and approve corporate goals and objectives  relevant

to our  Chief  Executive  Officer's  and the  other  named  executive  officers'

compensation;

 

              (ii)   evaluate the Chief Executive Officer's performance in light

of these corporate goals and objectives;

 

              (iii)  either  as  a  committee,   or  together   with  the  other

independent  directors,  determine  and  approve the  compensation  of the Chief

Executive Officer;

 

              (iv)   make   recommendations   to  the  Corporation's   Board  of

Directors regarding the salaries,  incentive compensation plans and equity-based

plans for the employees of the Corporation; and

 

              (v)    produce  a  compensation   committee  report  on  executive

compensation  as  required  by the  Securities  and  Exchange  Commission  to be

included in the Corporation's annual proxy statement or annual

 

 

                                      -14-

<PAGE>

 

 

report on Form 10-K filed with the Securities and Exchange Commission.

 

         (c) Corporate Governance Committee. The Corporate Governance Committee,

except as otherwise may be provided in any  resolution of the Board of Directors

or as required by applicable law, shall, among other things:

 

              (i)    identify  candidates  qualified  to become  board  members,

consistent with criteria approved by the Board of Directors;

 

              (ii)   recommend the candidates to be selected as nominees for the

next annual meeting of the stockholders;

 

              (iii)  develop and  recommend  to the Board of  Directors a set of

corporate governance principles applicable to the Corporation; and

 

              (iv)   oversee  the  evaluation  of the  Board  of  Directors  and

management.

 

         (d)  Other  Committees.  Each  other  Committee,  except  as  otherwise

provided in this  section,  shall have and may exercise such powers of the Board

of Directors as may be provided by  resolution  or  resolutions  of the Board of

Directors.

 

         Section 4.3 Proceedings. Each Committee may, subject to approval of the

Board of Directors,  adopt a charter  specifying its scope of responsibility and

may fix its own rules of procedure and may meet at such place (within or without

the State of Delaware),  at such time and upon such notice,  if any, as it shall

determine  from  time  to  time.  Each  Committee  shall  keep  minutes  of  its

proceedings  and shall report such  proceedings to the Board of Directors at the

meeting of the Board of Directors next following any such proceedings.

 

         Section  4.4 Quorum and  Manner of Acting.  Except as may be  otherwise

provided in the  resolution  creating  such  Committee,  at all  meetings of any

Committee the presence of members (or alternate members) constituting a majority

of the total  membership  of such  Committee  shall  constitute a quorum for the

transaction of business.  The act of the majority of the members  present at any

meeting at which a quorum is  present  shall be the act of such  Committee.  Any

action  required or permitted  to be taken at any meeting of any such  Committee

may be taken without a meeting,  if all members of such Committee  shall consent

to such action in writing or by  electronic  transmission,  and such  writing or

writings or electronic  transmission or transmissions are filed with the minutes

of the proceedings of the Committee. The members of any such Committee shall act

only as a Committee,  and the individual members of such Committee shall have no

power as such.

 

         Section  4.5  Action  by  Telephonic  Communications.  Members  of  any

Committee  designated by the Board of Directors may  participate in a meeting of

such  Committee  by means of  conference  telephone  or  similar  communications

equipment  by means of which all persons  participating  in the meeting can hear

each other,  and  participation  in a meeting  pursuant to this provision  shall

constitute presence in person at such meeting.

 

         Section 4.6 Resignations. Any member of any Committee may resign at any

time by delivering a written notice of  resignation,  signed by such member,  to

the Chairman or the Chief

 

 

                                      -15-

<PAGE>

 

 

Executive Officer.  Unless otherwise  specified therein,  such resignation shall

take effect upon delivery.

 

         Section  4.7  Removal.  Any member  (and any  alternate  member) of any

Committee may be removed from his or her position as a member of such  Committee

at any time, either for or without cause, by resolution adopted by a majority of

the whole Board of Directors.

 

         Section 4.8 Vacancies.  If any vacancy shall occur in any Committee, by

reason of death,  resignation,  removal or otherwise, the remaining members (and

alternate  members) shall continue to act, and any such vacancy may be filled by

resolution adopted by a majority of the whole Board of Directors.

 

                                       V.

 

                                    OFFICERS

 

         Section 5.1 Number. The officers of the Corporation shall be elected by

the Board of Directors and may include a Chairman,  a Chief Executive Officer, a

President,  one or more Vice Presidents,  a Chief Financial Officer, a Secretary

and a Treasurer.  The Board of Directors  may appoint such other  officers as it

may deem  appropriate;  provided that officers of the rank of Vice President and

below may be appointed by the Compensation Committee.  Such other officers shall

exercise such powers and perform such duties as may be  determined  from time to

time by the Board of Directors,  the Chief  Executive  Officer or the President.

Any number of offices may be held by the same person. No officer, other than the

Chairman, need be a director of the Corporation.

 

         Section  5.2  Election.  Unless  otherwise  determined  by the Board of

Directors,  the  officers  of the  Corporation  shall be elected by the Board of

Directors at the annual meeting of the Board of Directors,  and shall be elected

to hold  office  until  the  next  succeeding  annual  meeting  of the  Board of

Directors.  In the  event of the  failure  to elect  officers  at such  meeting,

officers  may be  elected  at any  regular  or  special  meeting of the Board of

Directors.  Officers of the rank of Vice  President  and below may be elected by

the Compensation Committee.  Each officer shall hold office until such officer's

successor has been elected and qualified, or until such officer's earlier death,

resignation or removal.

 

         Section 5.3 Powers.  Each of the officers of the Corporation elected by

the Board of  Directors  or  appointed  by an officer in  accordance  with these

By-Laws shall have the powers and duties  prescribed by law, by these By-Laws or

by the Board of Directors and, in the case of appointed officers, the powers and

duties prescribed by the appointing officer, and, unless otherwise prescribed by

these  By-Laws or by the Board of Directors or such  appointing  officer,  shall

have such further powers and duties as ordinarily pertain to that office.

 

         Section  5.4  Salaries.  Except as  otherwise  provided  by Section 4.2

hereof,  the salaries of all executive  officers (as  determined by the Board of

Directors)  of the  Corporation  shall be fixed by the Board of  Directors.  The

Chief Executive Officer shall fix the salaries of all non-executive officers.

 

         Section  5.5  Removal and  Resignation;  Vacancies.  Any officer may be

removed for or without cause at any time by the Board of Directors.  Any officer

may resign at any time by delivering  notice of  resignation,  either in writing

signed by such officer or by electronic transmission,

 

 

                                      -16-

<PAGE>

 

 

to the Board of  Directors  or the Chief  Executive  Officer.  Unless  otherwise

specified therein, such resignation shall take effect upon delivery. Any vacancy

occurring in any office of the  Corporation  by death,  resignation,  removal or

otherwise, shall be filled by the Board of Directors.

 

         Section 5.6 Chairman of the Board. The Chairman,  if any, when elected,

shall have  general  supervision,  direction  and  control of the  business  and

affairs of the  Corporation,  subject to the control of the Board of  Directors,

shall preside at meetings of stockholders  and shall have such other  functions,

authority  and duties as  customarily  appertain  to the  Chairman of a business

corporation  or as may be  prescribed  by the  Board of  Directors.  During  the

absence  or  disability  of the Chief  Executive  Officer,  the  Chairman  shall

exercise  all the powers  and  discharge  all the duties of the Chief  Executive

Officer. The Chairman shall also perform such other duties and may exercise such

other powers as from time to time may be assigned to him by these By-Laws.

 

         Section 5.7 Chief Executive Officer.  The Chief Executive Officer shall

have general  control and  supervision  of the policies  and  operations  of the

Corporation  and  shall  see that all  orders  and  resolutions  of the Board of

Directors are carried into effect.  The Chief Executive  Officer shall be a U.S.

citizen.  He or she shall manage and administer the  Corporation's  business and

affairs  and shall  also  perform  all duties and  exercise  all powers  usually

pertaining to the office of a chief  executive  officer of a corporation.  He or

she  shall  have the  authority  to  sign,  in the  name  and on  behalf  of the

Corporation,   checks,  orders,  contracts,  leases,  notes,  drafts  and  other

documents and instruments in connection with the business of the Corporation and

together with the  Secretary,  or any Assistant  Secretary,  conveyances of real

estate and other  documents and instruments to which the seal of the Corporation

is  affixed.  He or she shall  have the  authority  to cause the  employment  or

appointment  of such  employees and agents of the  Corporation as the conduct of

the business of the Corporation may require, to fix their  compensation,  and to

remove or  suspend  any  employee  or agent  elected or  appointed  by the Chief

Executive  Officer or the Board of Directors.  The Chief Executive Officer shall

perform  such other  duties and have such other powers as the Board of Directors

or the Chairman may from time to time prescribe.

 

         Section 5.8 Chief Financial Officer.  The Chief Financial Officer shall

be  the  principal   financial   officer  of  the  Corporation  and  shall  have

responsibility  for the financial  affairs of the  Corporation and shall keep or

cause  to be kept  correct  records  of the  business  and  transactions  of the

Corporation.  The Chief  Financial  Officer  shall perform such other duties and

exercise  such  other  powers as are  normally  incident  to the office of chief

financial  officer and as may be  prescribed  by the Board of  Directors  or the

Chief Executive Officer from time to time.

 

         Section 5.9 President. The President shall perform such duties and have

such powers as the Board of  Directors or the Chief  Executive  Officer may from

time to time prescribe.

 

         Section 5.10 Absence or Disability of the Chief Executive  Officer.  In

the event of the absence of the Chief  Executive  Officer or in the event of the

Chief Executive  Officer's  inability to act, the officer, if any, designated by

resolution  of the Board of  Directors  (or in the event  there is more than one

such designated  officer,  then in the order of  designation)  shall perform the

duties of the Chief Executive  Officer,  and when so acting,  shall have all the

powers and be subject to all the  restrictions of the Chief  Executive  Officer.

Any such  officer or officers  acting in the absence or  inability to act of the

Chief Executive Officer shall be U.S. citizens.

 

 

                                      -17-

<PAGE>

 

 

         Section  5.11  Vice  President.  The Vice  Presidents  shall  have such

designations  and shall perform such duties and have such powers as the Board of

Directors or the Chief Executive Officer may from time to time prescribe.

 

         Section 5.12 Secretary.  The Secretary shall keep or cause to be kept a

record of all the  proceedings  of the meetings of the  stockholders  and of the

Board of  Directors,  and shall cause all notices to be duly given in accordance

with the provisions of these By-Laws and as required by law. The Secretary shall

be the  custodian  of the records and of the seal of the  Corporation  and cause

such  seal  (or  a  facsimile   thereof)  to  be  affixed  to  instruments  when

appropriate. The Secretary shall perform, in general, all duties incident to the

office of secretary  and such other duties as may be specified in these  By-Laws

or as may be assigned to him or her from time to time by the Board of  Directors

or the Chief Executive Officer.

 

         Section 5.13 Assistant Secretary.  The Assistant Secretary, or if there

be more than one, the Assistant Secretaries in the order determined by the Board

of Directors (or if there be no such  determination,  then in the order of their

election),  shall,  in the  absence  of the  Secretary  or in the  event  of the

Secretary's  inability  or refusal to act,  perform the duties and  exercise the

powers of the  Secretary and shall perform such other duties as may from time to

time be prescribed by the Board of Directors,  the Chairman, the Chief Executive

Officer, the President or the Secretary.

 

         Section 5.14 Treasurer. The Treasurer shall have charge and supervision

over and be responsible for the moneys,  securities,  receipts and disbursements

of the Corporation, and shall keep or cause to be kept full and accurate records

of all  receipts  of the  Corporation,  and  shall  cause the  moneys  and other

valuable  effects  of the  Corporation  to be  deposited  in the name and to the

credit  of the  Corporation.  The  Treasurer  shall  disburse  the  funds of the

Corporation as may be ordered by the Board of Directors,  taking proper vouchers

for such disbursements,  and shall render to the Chairman, the President and the

Board of  Directors,  at its regular  meetings or when the Board of Directors so

requires,  an account of all  transactions  as  Treasurer  and of the  financial

condition of the  Corporation.  The Treasurer shall perform such other duties as

may from time to time be prescribed by the Board of Directors, the Chairman, the

Chief Executive Officer or the Chief Financial Officer.

 

         Section 5.15 Assistant Treasurer.  The Assistant Treasurer, or if there

shall be more than one, the Assistant  Treasurers in the order determined by the

Board of Directors (or if there be no such  determination,  then in the order of

their  election),  shall, in the absence of the Treasurer or in the event of the

Treasurer's  inability  or refusal to act,  perform the duties and  exercise the

powers of the  Treasurer and shall perform such other duties and have such other

powers as may from time to time be  prescribed  by the Board of  Directors,  the

Chairman, the Chief Executive Officer or the Chief Financial Officer.

 

         Section 5.16 Other Officers.  The Chief  Executive  Officer or Board of

Directors  may  appoint  other  officers  and agents for any group,  division or

department into which this Corporation may be divided by the Board of Directors,

with titles as the  President or Board of  Directors  may from time to time deem

appropriate. All such officers and agents shall receive such compensation,  have

such tenure and exercise  such  authority as the President or Board of Directors

may specify.  All appointments made by the Chief Executive Officer hereunder and

all the terms and conditions thereof must be reported to the Board of Directors.

 

 

                                      -18-

<PAGE>

 

 

         In no case  shall an officer  or agent of any one  Group,  Division  or

Department  have authority to bind another Group,  Division or Department of the

Company or to bind the Corporation  except as to the business and affairs of the

Group, Division or Department of which he or she is an officer or agent.

 

 

                                      VI.

 

                              CERTIFICATES OF STOCK

 

         Section 6.1 Certificates of Stock, Uncertificated Shares. The shares of

capital stock of the  Corporation  may be either  represented by certificates or

uncertificated  shares;  provided  that the Board of  Directors  may  provide by

resolution  or  resolutions  that some or all of any or all classes or series of

the  capital  stock of the  Corporation  shall  be  uncertificated  shares.  Any

resolution of the Board of Directors  providing for uncertificated  shares shall

not apply to shares  represented  by a  certificate  until such  certificate  is

surrendered to the  Corporation.  Subject to Section 6.4 below,  notwithstanding

the  adoption of such  resolution  by the Board of  Directors,  every  holder of

capital stock  represented by  certificates  and, upon request,  every holder of

uncertificated  shares shall be entitled to have a certificate  signed by, or in

the name of, the Corporation,  (a) by the Chairman, the Chief Executive Officer,

the  President  or a Vice  President;  and (b) by the  Treasurer,  an  Assistant

Treasurer,  the Secretary or an Assistant Secretary,  representing the number of

shares registered in certificate form. Such certificate shall be in such form as

the Board of Directors may determine,  to the extent  consistent with applicable

law, the Certificate and these By-Laws.

 

         Section 6.2  Signatures;  Facsimile.  All signatures on the certificate

referred to in Section 6.1 of these  By-Laws  may be in  facsimile,  engraved or

printed  form,  to the extent  permitted by law. In case any  officer,  transfer

agent or  registrar  who has  signed,  or whose  facsimile,  engraved or printed

signature  has been placed  upon a  certificate  representing  shares of capital

stock of the Corporation shall have ceased to be such officer, transfer agent or

registrar before such certificate is issued, it may be issued by the Corporation

with the  same  effect  as if he or she were  such  officer,  transfer  agent or

registrar at the date of issue.

 

         Section  6.3  Transfer.  Except as  otherwise  established  by rules or

regulations adopted by the Board of Directors, upon surrender to the Corporation

or the  transfer  agent of the  Corporation  of a  certificate  for shares  duly

endorsed  or  accompanied  by  proper  evidence  of  succession,  assignment  or

authority to transfer,  it shall be the duty of the  Corporation  to issue a new

certificate  of  stock or  uncertificated  shares  in  place of any  certificate

therefor issued by the Corporation to the person  entitled  thereto,  cancel the

old certificate and record the transaction on its books.

 

         Section 6.4 Replacement. In case of the loss, destruction or theft of a

certificate  for any stock of the  Corporation,  a new  certificate  of stock or

uncertificated  shares  in  place  of any  certificate  therefor  issued  by the

Corporation may be issued upon satisfactory  proof of such loss,  destruction or

theft and upon such terms as the Board of Directors may prescribe.  The Board of

Directors  may in its  discretion  require the owner of the lost,  destroyed  or

stolen certificate, or his legal representative, to give the Corporation a bond,

in such sum and in such form and with such  surety or sureties as it may direct,

to indemnify the Corporation  against any claim that may be made against it with

respect to a certificate alleged to have been lost, destroyed or stolen.

 

 

                                      -19-

<PAGE>

 

 

         Section 6.5 Beneficial  Owners.  The  Corporation  shall be entitled to

recognize the exclusive  right of a person  registered on its books as the owner

of shares to receive  dividends,  and to vote as such owner,  and to hold liable

for  calls  and  assessments  a person  registered  on its books as the owner of

shares,  and shall not be bound to recognize  any equitable or other claim to or

interest in such share or shares on the part of any other person, whether or not

it shall have express or other notice thereof,  except as otherwise  provided by

law.  The  Corporation  shall not be required to register any transfer of shares

made in  violation  of any  agreement  among a  stockholder  or  investor in the

Corporation and the Corporation, or recognize as a holder of any such shares any

transferee in such a violative transaction.

 

                                      VII.

 

                    INDEMNIFICATION OF DIRECTORS AND OFFICERS

 

         To the fullest extent permitted by the laws of the State of Delaware:

 

         Section 7.1 Nature of Indemnity. Each person who was or is made a party

or is  threatened  to be  made  a  party  to or is  otherwise  involved  in  any

threatened,  pending or completed  action,  suit or  proceeding,  whether civil,

criminal,   administrative   or  investigative   (hereinafter  a  "proceeding"),

including,  without limitation, an action by or in the right of the Corporation,

by  reason of the fact that he or she or a person of whom he or she is the legal

representative  is or was a director or an officer of the  Corporation  or is or

was serving at the request of the Corporation as a director,  officer or trustee

of another corporation,  partnership,  joint venture, trust or other enterprise,

including  service with  respect to an employee  benefit  plan  (hereinafter  an

"indemnitee"),  whether  the basis of such  proceeding  is alleged  action in an

official  capacity  as a director,  officer or trustee or in any other  capacity

while serving as a director,  officer or trustee,  shall be indemnified and held

harmless by the Corporation to the fullest extent  authorized by the GCL, as the

same exists or may hereafter be amended, against all expense, liability and loss

(including  attorneys' fees,  judgments,  fines, ERISA excise taxes or penalties

and amounts paid or to be paid in settlement) reasonably incurred or suffered by

such indemnitee in connection  therewith;  provided,  however,  that,  except as

provided in these  By-Laws  with  respect to  proceedings  to enforce  rights to

indemnification   and   "advancement  of  expenses"  (as  defined  below),   the

Corporation  shall  indemnify any such  indemnitee in connection with an action,

suit or proceeding (or part thereof)  initiated by such  indemnitee only if such

action,  suit or  proceeding  (or part  thereof) was  authorized by the Board of

Directors.  Furthermore, the Corporation may only indemnify such person if he or

she acted in good faith and in a manner he or she  reasonably  believed to be in

or not opposed to the best  interests of the  Corporation,  and, with respect to

any criminal action or proceeding had no reasonable cause to believe that his or

her conduct was unlawful;  except that in the case of an action or suit by or in

the  name of the  Corporation  to  procure  a  judgment  in its  favor  (a) such

indemnification  shall  be  limited  to  expenses  (including  attorneys'  fees)

actually and reasonably  incurred by such person in the defense or settlement of

such action or suit; and (b) no indemnification  shall be made in respect of any

claim,  issue or matter as to which such person  shall have been  adjudged to be

liable to the Corporation  unless and only to the extent that the Delaware Court

of  Chancery  or the  court in which  such  action  or suit  was  brought  shall

determine upon  application  that,  despite the adjudication of liability but in

view of all the  circumstances of the case, such person is fairly and reasonably

entitled to indemnity for such expenses  which the Delaware Court of Chancery or

such other court shall deem proper.

 

 

                                      -20-

<PAGE>

 

 

         The termination of any action,  suit or proceeding by judgment,  order,

settlement,  conviction,  or upon a plea of nolo  contendere or its  equivalent,

shall not, of itself,  create a presumption  that the person did not act in good

faith  and in a  manner  which  he or she  reasonably  believed  to be in or not

opposed to the best  interests  of the  Corporation,  and,  with  respect to any

criminal action or proceeding,  had reasonable  cause to believe that his or her

conduct was unlawful.

 

         Section 7.2 Advance  Payment of  Expenses.  In addition to the right to

indemnification conferred in this Article VII, an indemnitee shall also have the

right to be paid by the Corporation  the expenses  (including  attorneys'  fees)

incurred  in  defending  any such action or  proceeding  in advance of the final

disposition  of such  action  or  proceeding  (hereinafter  an  "advancement  of

expenses")  upon  receipt  of an  undertaking  by or on  behalf  of  the  person

indemnified  to repay  such  payment  if it is  ultimately  determined  by final

judicial decision from which there is no further right to appeal  (hereinafter a

"final  adjudication")  that such  person  is not  entitled  to  indemnification

conferred in this Article VII or otherwise.  Such expenses (including attorneys'

fees) incurred by former directors and officers shall be so paid upon such terms

and  conditions,  if any, as the  Corporation  deems  appropriate.  The Board of

Directors may authorize the Corporation's  counsel to represent such director or

officer in any action,  suit or proceeding,  whether or not the Corporation is a

party to such action, suit or proceeding.

 

         Section  7.3  Procedure  for   Indemnification.   If,  following  final

disposition of a proceeding,  a claim for indemnification under this Article VII

is not paid in full by the  Corporation  within sixty (60) calendar days after a

written claim has been received by the  Corporation,  or if,  whether  before or

after final disposition of a proceeding,  a claim for an advancement of expenses

under this Article VII is not paid in full by the Corporation within twenty (20)

calendar days after a written claim has been  received by the  Corporation,  the

indemnitee  may at any time  thereafter  bring suit against the  Corporation  to

recover the unpaid amount of the claim. If successful in whole or in part in any

such suit, or in a suit brought by the  Corporation to recover an advancement of

expenses  pursuant  to the  terms of an  undertaking,  the  indemnitee  shall be

entitled  to be paid also the expense of  prosecuting  or  defending  such suit,

including without limitation  reasonable attorneys' fees. In any suit brought by

the  indemnitee to enforce a right to  indemnification  hereunder  (but not in a

suit brought by the indemnitee to enforce a right to an advancement of expenses)

it shall be a defense that the indemnitee  has not met any  applicable  standard

for indemnification set forth in the GCL. In any suit brought by the Corporation

to recover an advancement of expenses  pursuant to the terms of an  undertaking,

the  Corporation  shall  be  entitled  to  recover  such  expenses  upon a final

adjudication  that  the  indemnitee  has  not met any  applicable  standard  for

indemnification  set forth in the GCL.  Neither the  failure of the  Corporation

(including its directors who are not parties to such action, a committee of such

directors,  independent  legal  counsel,  or its  stockholders)  to have  made a

determination   that   indemnification  of  the  indemnitee  is  proper  in  the

circumstances  because the indemnitee has met the applicable standard of conduct

set forth in the GCL, nor an actual determination by the Corporation  (including

its directors who are not parties to such action, a committee of such directors,

independent legal counsel,  or its stockholders) that the indemnitee has not met

such  applicable  standard  of  conduct,  shall  create a  presumption  that the

indemnitee  has not met the  applicable  standard  of conduct or, in the case of

such a suit brought by the  indemnitee,  be a defense to such suit.  In any suit

brought  by the  indemnitee  to  enforce  a right  to  indemnification  or to an

advancement of expenses  hereunder,  or brought by the Corporation to recover an

advancement of expenses  pursuant to the terms of an undertaking,  the burden of

proving that the

 

 

                                      -21-

<PAGE>

 

 

indemnitee  is  not  entitled  to be  indemnified,  or to  such  advancement  of

expenses, under this Article VII or otherwise shall be on the Corporation.

 

         Section 7.4 Preservation of Other Rights. The rights to indemnification

and to the  advancement  of expenses  conferred in this Article VII shall not be

exclusive  of any other  right  which any person may have or  hereafter  acquire

under  any  statute,  the  Certificate,   these  By-Laws,   agreement,  vote  of

stockholders or directors or otherwise.

 

         Section 7.5  Insurance.  The  Corporation  may  purchase  and  maintain

insurance, at its expense, to protect itself and any director, officer, employee

or agent of the  Corporation  or any person who is serving at the request of the

Corporation as a director,  officer,  employee or agent of another  corporation,

partnership,  joint  venture,  trust or other  enterprise  against any  expense,

liability  or loss,  whether  or not the  Corporation  would  have the  power to

indemnify such person against such expense, liability or loss under the GCL.

 

         Section 7.6 Employees and Agents.  The  Corporation  may, to the extent

authorized  from  time  to time by the  Board  of  Directors,  grant  rights  to

indemnification  and to the  advancement of expenses to any employee or agent of

the Corporation to the fullest extent of the provisions of this Article VII with

respect to the  indemnification  and  advancement  of expenses of directors  and

officers of the Corporation.

 

         Section 7.7 Survival.  The rights  conferred  upon  indemnitees in this

Article VII shall be contract  rights and such  rights  shall  continue as to an

indemnitee  who has ceased to be a director,  officer or trustee and shall inure

to the benefit of the  indemnitee's  heirs,  executors and  administrators.  Any

amendment,  alteration or repeal of this Article VII that adversely  affects any

right of an indemnitee or its successors shall be prospective only and shall not

limit or eliminate any such right with respect to any  proceeding  involving any

occurrence  or alleged  occurrence  of any action or  omission  to act that took

place prior to such amendment, alteration or repeal.

 

                                     VIII.

 

                               GENERAL PROVISIONS

 

         Section 8.1 Fiscal Year.  The fiscal year of the  Corporation  shall be

fixed by resolution of the Board of Directors.

 

         Section 8.2 Corporate Seal. The corporate seal shall be in such form as

may be  approved  from time to time by the Board of  Directors.  The seal may be

used by causing it or a facsimile  thereof to be  impressed or affixed or in any

other manner reproduced.

 

         Section 8.3 Dividends.  Subject to any applicable provisions of law and

the  Certificate  or any  resolution  or  resolutions  adopted  by the  Board of

Directors  pursuant to authority  expressly  vested in it by the Certificate and

Section 151 of the GCL,  the Board of  Directors  may, at any regular or special

meeting of the Board of  Directors,  out of funds  legally  available  therefor,

declare  dividends  upon  the  capital  stock of the  Corporation,  and any such

dividend may be paid in cash, property, or shares of the Corporation's stock.

 

 

                                      -22-

<PAGE>

 

 

         A member  of the  Board of  Directors,  or a  member  of any  committee

designated  by the Board of  Directors,  shall be fully  protected in relying in

good  faith  upon the  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, or by any other

person as to matters  the  director  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,  as to the value and amount

of the assets,  liabilities and/or net profits of the Corporation,  or any other

facts pertinent to the existence and amount of surplus or other funds from which

dividends might properly be declared and paid.

 

         Section  8.4  Reserves.  There may be set aside out of any funds of the

Corporation  available for dividends  such sum or sums as the Board of Directors

from time to time,  in its absolute  discretion,  thinks  proper as a reserve or

reserves  to meet  contingencies  or for  such  other  purpose  as the  Board of

Directors  shall think  conducive to the interests of the  Corporation,  and the

Board of Directors may similarly modify or abolish any such reserve.

 

         Section 8.5 Execution of Instruments.  The Chief Executive Officer, the

President, the Chief Financial Officer, any Vice President, the Secretary or the

Treasurer  may enter into any contract or execute and deliver any  instrument in

the name and on behalf of the  Corporation.  The Board of Directors or the Chief

Executive  Officer may  authorize  any other  officer or agent to enter into any

contract or execute and deliver any  instrument in the name and on behalf of the

Corporation.  Any such  authorization  may be general  or  limited  to  specific

contracts or instruments.

 

         Section 8.6 Corporate  Books.  The books of the Corporation may be kept

outside  of the  State of  Delaware  at such  place or  places  as the  Board of

Directors may from time to time determine.

 

         Section 8.7  Corporate  Indebtedness.  No loan shall be  contracted  on

behalf of the  Corporation,  and no evidence of indebtedness  shall be issued in

its name,  unless  authorized  by the Board of  Directors,  the Chief  Executive

Officer or the Chief Financial  Officer.  Such  authorization  may be general or

confined to specific instances.  Loans so authorized may be effected at any time

for the Corporation from any bank, trust company or other  institution,  or from

any firm,  corporation or  individual.  All bonds,  debentures,  notes and other

obligations  or evidences of  indebtedness  of the  Corporation  issued for such

loans shall be made, executed and delivered as the Board of Directors, the Chief

Executive  Officer  or the Chief  Financial  Officer  shall  authorize.  When so

authorized by the Board of Directors,  the Chief Executive  Officer or the Chief

Financial Officer, any part of or all the properties, including contract rights,

assets,  business  or  goodwill  of  the  Corporation,  whether  then  owned  or

thereafter  acquired,  may be mortgaged,  pledged,  hypothecated  or conveyed or

assigned in trust as security for the payment of such bonds,  debentures,  notes

and other  obligations or evidences of indebtedness of the  Corporation,  and of

the interest thereon,  by instruments  executed and delivered in the name of the

Corporation.

 

         Section 8.8  Deposits.  Any funds of the  Corporation  may be deposited

from time to time in such banks, trust companies or other depositaries as may be

determined by the Board of Directors,  the Chief  Executive  Officer,  the Chief

Financial  Officer  or the  Treasurer  or by such  officers  or agents as may be

authorized  by the  Board of  Directors  or the  Chief  Executive  Officer,  the

Treasurer  or  the  Chief  Financial  Officer  or the  Treasurer  to  make  such

determination.

 

 

                                      -23-

<PAGE>

 

 

         Section  8.9  Checks.  All checks or demands for money and notes of the

Corporation  shall be signed by such officer or officers or such agent or agents

of the Corporation,  and in such manner,  as the Board of Directors or the Chief

Executive Officer from time to time may determine.

 

         Section  8.10  Sale,  Transfer,  etc.  of  Securities.  To  the  extent

authorized  by the Board of Directors  or by the Chief  Executive  Officer,  the

President, the Chief Financial Officer, any Vice President, the Secretary or the

Treasurer  or any other  officers  designated  by the Board of  Directors or the

Chief Executive Officer may sell,  transfer,  endorse,  and assign any shares of

stock,  bonds  or  other  securities  owned  by or  held  in  the  name  of  the

Corporation,  and may make,  execute and deliver in the name of the Corporation,

under its corporate seal (if required),  any instruments that may be appropriate

to effect any such sale, transfer, endorsement or assignment.

 

         Section 8.11 Voting as  Stockholder.  Unless  otherwise  determined  by

resolution of the Board of Directors, the Chief Executive Officer, the President

or any Vice  President  shall  have full  power and  authority  on behalf of the

Corporation to attend any meeting of  stockholders  of any  corporation in which

the  Corporation  may hold stock,  and to act, vote (or execute proxies to vote)

and  exercise  in person or by proxy all other  rights,  powers  and  privileges

incident to the ownership of such stock.  Such officers  acting on behalf of the

Corporation  shall  have full power and  authority  to  execute  any  instrument

expressing consent to or dissent from any action of any such corporation without

a meeting.  The Board of Directors  may by  resolution  from time to time confer

such power and authority upon any other person or persons.

 

         Section  8.12  Transactions  with  Interested  Parties.  No contract or

transaction  between  the  Corporation  and  one or  more  of the  directors  or

officers,  or between the  Corporation and any other  corporation,  partnership,

association,  or other  organization  in which one or more of the  directors  or

officers are  directors,  officers or employees,  or have a financial  interest,

shall be void or voidable solely for this reason, or solely because the director

or  officer  is  present  at or  participates  in the  meeting  of the  Board of

Directors or a committee of the Board of Directors which authorizes the contract

or  transaction  or  solely  because  his or their  votes are  counted  for such

purpose, if:

 

         (a) the material facts as to his relationship or interest and as to the

contract or transaction  are disclosed or are known to the Board of Directors or

the committee,  and the Board of Directors or committee in good faith authorizes

the  contract  or  transaction  by the  affirmative  votes of a majority  of the

disinterested directors,  even though the disinterested directors be less than a

quorum;

 

         (b) the material facts as to his relationship or interest and as to the

contract or transaction are disclosed or are known to the stockholders  entitled

to vote thereon,  and the contract or  transaction is  specifically  approved in

good faith by vote of the stockholders; or

 

         (c) the contract or transaction is fair as to the Corporation as of the

time it is  authorized,  approved  or  ratified  by the  Board of  Directors,  a

committee of the Board of Directors, or the stockholders.

 

         Common or  interested  directors  may be  counted  in  determining  the

presence  of a quorum at a meeting of the Board of  Directors  or of a committee

which authorizes the contract or transaction.

 

 

                                      -24-

<PAGE>

 

 

                                      IX.

 

                                   AMENDMENTS

 

         Section 9.1  Amendment.  Subject to the  provisions of this Section 9.1

and the Certificate,  these By-Laws  (including this Article IX) may be amended,

altered or repealed:

 

         (a) by  resolution  adopted  by a  majority  of the Board of  Directors

without a  stockholder  vote at any  special or regular  meeting of the Board of

Directors  if,  in the  case  of  such  special  meeting  only,  notice  of such

amendment,  alteration  or repeal is contained in the notice or waiver of notice

of such meeting; provided, however, that the amendment,  alteration or repeal of

the provisions of Sections 2.2,  2.11,  3.2, 3.3, or 3.14 hereof or this Section

9.1 shall require the  affirmative  vote of the holders of  two-thirds  (2/3) or

more of the combined voting power of the outstanding  shares of capital stock of

the Corporation entitled to vote generally in the election of directors; or

 

         (b) at any  regular or special  meeting  of the  stockholders  upon the

affirmative  vote of the  holders of  two-thirds  (2/3) or more of the  combined

voting  power of the  outstanding  shares of  capital  stock of the  Corporation

entitled to vote  generally in the election of directors,  voting  together as a

single  class,  if, in the case of such  special  meeting  only,  notice of such

amendment,  alteration  or repeal is contained in the notice or waiver of notice

of such meeting.

 

                                       X.

 

                     SUBJECT TO CERTIFICATE OF INCORPORATION

 

         These  By-Laws and the  provisions  hereof are subject to the terms and

conditions of the Certificate of the Corporation  (including any certificates of

designations filed  thereunder),  and in the event of any conflict between these

By-Laws and the Certificate, the Certificate shall control.

 

Adopted: May 17, 2005

 

 

                                      -25-