FIDELITY BANKSHARES II, INC.
                                     BY-LAWS
 
 
                            ARTICLE I - STOCKHOLDERS
                            ------------------------
 
         Section 1.        Annual Meeting.
         ---------         --------------
 
         An annual meeting of the stockholders, for the election of Directors to
succeed those whose terms expire and for the  transaction of such other business
as may properly  come before the meeting,  shall be held at such place,  on such
date, and at such time as the Board of Directors shall each year fix, which date
shall be within  thirteen  (13)  months  subsequent  to the later of the date of
incorporation or the last annual meeting of stockholders.
 
         Section 2.        Special Meetings.
         ---------         ----------------
 
         Subject  to the  rights  of the  holders  of any  class  or  series  of
preferred  stock of the  Corporation,  special  meetings of  stockholders of the
Corporation  may be called by the Board of  Directors  pursuant to a  resolution
adopted by a majority of the total  number of  Directors  which the  Corporation
would have if there were no vacancies on the Board of Directors (hereinafter the
"Whole Board").
 
         Section 3.        Notice of Meetings.
         ---------         ------------------
 
         Written  notice of the place,  date,  and time of all  meetings  of the
stockholders  shall be given,  not less than ten (10) nor more than  sixty  (60)
days  before the date on which the  meeting is to be held,  to each  stockholder
entitled  to vote at such  meeting,  except  as  otherwise  provided  herein  or
required by law (meaning, here and hereinafter, as required from time to time by
the Delaware General  Corporation Law or the Certificate of Incorporation of the
Corporation).
 
         When a meeting is adjourned  to another  place,  date or time,  written
notice need not be given of the  adjourned  meeting if the place,  date and time
thereof  are  announced  at the  meeting  at which  the  adjournment  is  taken;
provided, however, that if the date of any adjourned meeting is more than thirty
(30) days after the date for which the meeting was originally  noticed,  or if a
new record date is fixed for the adjourned meeting, written notice of the place,
date, and time of the adjourned  meeting shall be given in conformity  herewith.
At any adjourned  meeting,  any business may be transacted which might have been
transacted at the original meeting.
 
         Section 4.        Quorum.
         ---------         ------
 
         At any meeting of the stockholders, the holders of a majority of all of
the shares of the stock entitled to vote at the meeting, present in person or by
proxy  (after  giving  effect  to  the  Article  FOURTH  of  the   Corporation's
Certificate  of  Incorporation),  shall  constitute  a quorum for all  purposes,
unless or except to the  extent  that the  presence  of a larger  number  may be
required  by law.  Where a separate  vote by a class or classes is  required,  a
majority of the shares of such class or classes present in person or represented
by proxy shall  constitute a quorum entitled to take action with respect to that
vote on that matter.
 
         If a quorum  shall  fail to attend any  meeting,  the  chairman  of the
meeting or the holders of a majority of the shares of stock entitled to vote who
are present,  in person or by proxy,  may adjourn the meeting to another  place,
date, or time.
 
                                      F-1
<PAGE>
 
         If a notice of any adjourned special meeting of stockholders is sent to
all  stockholders  entitled to vote  thereat,  stating that it will be held with
those present  constituting a quorum,  then except as otherwise required by law,
those  present at such  adjourned  meeting  shall  constitute a quorum,  and all
matters shall be determined by a majority of the votes cast at such meeting.
 
         Section 5.        Organization.
         ---------         ------------
 
         Such person as the Board of Directors  may have  designated  or, in the
absence of such a person,  the Chairman of the Board of the  Corporation  or, in
his or her absence, the Chief Executive Officer or, in his or her absence,  such
person as may be chosen by the holders of a majority  of the shares  entitled to
vote who are present,  in person or by proxy, shall call to order any meeting of
the  stockholders  and act as  chairman  of the  meeting.  In the absence of the
Secretary of the Corporation,  the secretary of the meeting shall be such person
as the chairman appoints.
 
         Section 6.        Conduct of Business.
         ---------         -------------------
 
                  (a)  The  chairman  of  any  meeting  of  stockholders   shall
determine the order of business and the procedure at the meeting, including such
regulation  of the manner of voting and the conduct of discussion as seem to him
or her in order.  The date and time of the  opening and closing of the polls for
each  matter  upon  which the  stockholders  will vote at the  meeting  shall be
announced at the meeting.
 
                  (b) At any  annual  meeting  of the  stockholders,  only  such
business shall be conducted as shall have been brought  before the meeting:  (i)
by or at the direction of the Board of Directors or: (ii) by any  stockholder of
the  Corporation  who is entitled to vote with respect  thereto and who complies
with the notice  procedures  set forth in this Section 6(b).  For business to be
properly  brought before an annual  meeting by a stockholder,  the business must
relate to a proper subject  matter for  stockholder  action and the  stockholder
must have  given  timely  notice  thereof in  writing  to the  Secretary  of the
Corporation. To be timely, a stockholder's notice must be delivered or mailed to
and received at the principal executive offices of the Corporation not less than
ninety  (90) days prior to the date of the annual  meeting;  provided,  however,
that in the event that less than one hundred  (100) days' notice or prior public
disclosure of the date of the meeting is given or made to  stockholders,  notice
by the  stockholder  to be timely must be  received  not later than the close of
business on the 10th day  following  the day on which such notice of the date of
the  annual   meeting  was  mailed  or  such  public   disclosure  was  made.  A
stockholder's  notice to the  Secretary  shall set forth as to each  matter such
stockholder proposes to bring before the annual meeting: (i) a brief description
of the business  desired to be brought before the annual meeting and the reasons
for conducting such business at the annual  meeting;  (ii) the name and address,
as they appear on the  Corporation's  books, of the  stockholder  proposing such
business;  (iii)  the class and  number of shares of the  Corporation's  capital
stock that are  beneficially  owned by such  stockholder  and (iv) any  material
interest of such stockholder in such business. Notwithstanding anything in these
By-laws to the contrary,  no business shall be brought before or conducted at an
annual  meeting  except in accordance  with the provisions of this Section 6(b).
The Officer of the Corporation or other person presiding over the annual meeting
shall,  if the facts so  warrant,  determine  and  declare to the  meeting  that
business  was not properly  brought  before the meeting in  accordance  with the
provisions of this Section 6(b) and, if he or she should so determine, he or she
shall so declare to the meeting and any such  business so  determined  to be not
properly brought before the meeting shall not be transacted.
 
         At any special meeting of the stockholders, only such business shall be
conducted as shall have been brought  before the meeting by or at the  direction
of the Board of Directors.
 
                                      F-2
<PAGE>
 
                  (c) Only  persons who are  nominated  in  accordance  with the
procedures  set  forth in  these  By-laws  shall be  eligible  for  election  as
Directors.  Nominations of persons for election to the Board of Directors of the
Corporation  may be made at a meeting of  stockholders at which Directors are to
be elected  only:  (i) by or at the direction of the Board of Directors or; (ii)
by any  stockholder  of the  Corporation  entitled  to vote for the  election of
Directors at the meeting who complies  with the notice  procedures  set forth in
this  Section  6(c).  Such  nominations,  other  than  those  made  by or at the
direction of the Board of  Directors,  shall be made by timely notice in writing
to the Secretary of the Corporation.  To be timely, a stockholder's notice shall
be delivered or mailed to and received at the principal executive offices of the
Corporation  not less than  ninety  (90) days prior to the date of the  meeting;
provided,  however,  that in the event that less than one  hundred  (100)  days'
notice  or  prior  disclosure  of the  date of the  meeting  is given or made to
stockholders,  notice by the  stockholder  to be timely must be so received  not
later than the close of business on the 10th day following the day on which such
notice of the date of the meeting was mailed or such public disclosure was made.
Such  stockholder's  notice  shall set forth:  (i) as to each  person  whom such
stockholder proposes to nominate for election or re-election as a Director,  all
information  relating  to  such  person  that is  required  to be  disclosed  in
solicitations  of  proxies  for  the  election  of  Directors,  or is  otherwise
required,  in each case pursuant to Regulation 14A under the Securities Exchange
Act of 1934 (including such person's written consent to being named in the proxy
statement as a nominee and to serving as a Director if elected);  and (ii) as to
the  stockholder  giving notice (x) the name and address,  as they appear on the
Corporation's  books, of such stockholder and (y) the class and number of shares
of  the  Corporation's  capital  stock  that  are  beneficially  owned  by  such
stockholder.  At the request of the Board of Directors  any person  nominated by
the Board of Directors for election as a Director shall furnish to the Secretary
of the Corporation that information  required to be set forth in a stockholder's
notice of nomination which pertains to the nominee.  No person shall be eligible
for election as a Director of the  Corporation  unless  nominated in  accordance
with the  provisions of this Section  6(c).  The Officer of the  Corporation  or
other person presiding at the meeting shall, if the facts so warrant,  determine
that a nomination was not made in accordance  with such provisions and, if he or
she  should  so  determine,  he or she  shall  declare  to the  meeting  and the
defective nomination shall be disregarded.
 
         Section 7.        Proxies and Voting.
         ---------         ------------------
 
         At any meeting of the stockholders,  every stockholder entitled to vote
may vote in person or by proxy  authorized  by an  instrument in writing or by a
transmission permitted by law filed in accordance with the procedure established
for the  meeting.  Any  copy,  facsimile  telecommunication  or  other  reliable
reproduction of the writing or transmission  created  pursuant to this paragraph
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.
 
         All voting,  including on the election of Directors but excepting where
otherwise required by law or by the governing documents of the Corporation,  may
be  by  a  voice  vote;  provided,  however,  that  upon  demand  therefor  by a
stockholder  entitled  to vote or by his or her  proxy,  a stock  vote  shall be
taken. Every stock vote shall be taken by ballots, each of which shall state the
name of the  stockholder  or proxy voting and such other  information  as may be
required under the procedure established for the meeting. The Corporation shall,
in advance of any meeting of stockholders, appoint one or more inspectors to act
at the meeting and make a written report thereof.  The Corporation may designate
one or more persons as alternate  inspectors  to replace any inspector who fails
to  act.  If  no  inspector  or  alternate  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  faithfully  to
execute the duties of inspector  with strict  impartiality  and according to the
best of his or her ability.
 
                                      F-3
<PAGE>
 
         All elections shall be determined by a plurality of the votes cast, and
except as otherwise  required by the Certificate of Incorporation or by law, all
other matters shall be determined by a majority of the votes present and cast at
a properly called meeting of stockholders.
 
         Section 8.        Stock List.
         ---------         ----------
 
         A complete  list of  stockholders  entitled  to vote at any  meeting of
stockholders, arranged in alphabetical order for each class of stock and showing
the address of each such stockholder and the number of shares  registered in his
or her name, shall be open to the examination of any such  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 stock list shall  also be kept at the place of the  meeting  during
the  whole  time  thereof  and  shall  be open to the  examination  of any  such
stockholder who is present. This list shall presumptively determine the identity
of the  stockholders  entitled  to vote at the  meeting and the number of shares
held by each of them.
 
         Section 9.        Consent of Stockholders in Lieu of Meeting.
         ---------         ------------------------------------------
 
         Subject  to the  rights  of the  holders  of any  class  or  series  of
preferred stock of the Corporation, any action required or permitted to be taken
by the  stockholders of the Corporation must be effected at an annual or special
meeting  of  stockholders  of the  Corporation  and may not be  effected  by any
consent in writing by such stockholders.
 
 
                         ARTICLE II - BOARD OF DIRECTORS
                         -------------------------------
 
         Section 1.        General Powers, Number and Term of Office.
         ---------         -----------------------------------------
 
         The  business  and  affairs  of the  Corporation  shall  be  under  the
direction  of its  Board  of  Directors.  The  number  of  Directors  who  shall
constitute the Whole Board shall be such number as the Board of Directors  shall
from time to time have  designated by resolution.  The Board of Directors  shall
annually  elect a Chairman of the Board from among its  members who shall,  when
present, preside at its meetings.
 
         The  Directors,  other than those who may be elected by the  holders of
any class or series of Preferred  Stock,  shall be divided,  with respect to the
time for which they severally hold office, into three classes,  with the term of
office of the first class to expire at the first annual meeting of stockholders,
the term of  office of the  second  class to expire  at the  annual  meeting  of
stockholders  one year  thereafter  and the term of office of the third class to
expire at the annual meeting of  stockholders  two years  thereafter,  with each
Director to hold office until his or her successor  shall have been duly elected
and qualified. At each annual meeting of stockholders, commencing with the first
annual  meeting,  Directors  elected to succeed those Directors whose terms then
expire  shall be elected for a term of office to expire at the third  succeeding
annual meeting of stockholders after their election,  with each Director to hold
office until his or her successor shall have been duly elected and qualified.
 
                                      F-4
<PAGE>
 
         Section 2.        Vacancies and Newly Created Directorships.
         ---------         -----------------------------------------
 
         Subject  to the  rights  of the  holders  of any  class  or  series  of
preferred stock, and unless the Board of Directors otherwise  determines,  newly
created  Directorships  resulting from any increase in the authorized  number of
Directors  or any  vacancies  in the Board of  Directors  resulting  from death,
resignation,  retirement,  disqualification,  removal from office or other cause
may be filled only by a majority  vote of the Directors  then in office,  though
less  than a quorum,  and  Directors  so chosen  shall  hold  office  for a term
expiring at the annual  meeting of  stockholders  at which the term of office of
the class to which they have been  elected  expires  and until  such  Director's
successor shall have been duly elected and qualified.  No decrease in the number
of  authorized  Directors  constituting  the Board shall shorten the term of any
incumbent Director.
 
         Section 3.        Regular Meetings.
         ---------         ----------------
 
         Regular  meetings of the Board of Directors shall be held at such place
or places,  on such date or dates,  and at such time or times as shall have been
established  by the Board of Directors and  publicized  among all  Directors.  A
notice of each regular meeting shall not be required.
 
         Section 4.        Special Meetings.
         ---------         ----------------
 
         Special  meetings of the Board of Directors  may be called by one-third
(1/3) of the Directors  then in office  (rounded up to the nearest whole number)
or by the  Chairman of the Board and shall be held at such place,  on such date,
and at such time as they or he or she shall fix. Notice of the place,  date, and
time of each such special  meeting shall be given to each Director by whom it is
not waived by  mailing  written  notice  not less than five (5) days  before the
meeting or be telegraphing or telexing or by facsimile  transmission of the same
not less than  twenty-four  (24) hours  before  the  meeting.  Unless  otherwise
indicated in the notice  thereof,  any and all business may be  transacted  at a
special meeting.
 
         Section 5.        Quorum.
         ---------         ------
 
         At any meeting of the Board of Directors, a majority of the Whole Board
shall constitute a quorum for all purposes. If a quorum shall fail to attend any
meeting,  a majority of those present may adjourn the meeting to another  place,
date, or time, without further notice or waiver thereof.
 
         Section 6.  Participation in Meetings By Conference Telephone.
         ---------   -------------------------------------------------
 
         Members of the Board of  Directors,  or of any committee  thereof,  may
participate  in a meeting  of such  Board or  committee  by means of  conference
telephone  or similar  communications  equipment  by means of which all  persons
participating  in the meeting can hear each other and such  participation  shall
constitute presence in person at such meeting.
 
         Section 7.        Conduct of Business.
         ---------         -------------------
 
         At any meeting of the Board of Directors,  business shall be transacted
in such order and manner as the Board may from time to time  determine,  and all
matters shall be determined by the vote of a majority of the Directors  present,
except as otherwise  provided  herein or required by law. Action may be taken by
the Board of Directors  without a meeting if all members thereof consent thereto
in  writing,  and the  writing  or  writings  are  filed  with  the  minutes  of
proceedings of the Board of Directors.
 
                                      F-5
<PAGE>
 
         Section 8.        Powers.
         ---------         ------
 
         The Board of  Directors  may,  except  as  otherwise  required  by law,
exercise  all such powers and do all such acts and things as may be exercised or
done by the  Corporation,  including,  without  limiting the  generality  of the
foregoing, the unqualified power:
 
               (1) To declare  dividends  from time to time in  accordance  with
          law;
 
               (2) To purchase or  otherwise  acquire  any  property,  rights or
          privileges on such terms as it shall determine;
 
               (3) To authorize the creation,  making and issuance, in such form
          as it may determine,  of written obligations of every kind, negotiable
          or  non-negotiable,  secured  or  unsecured,  and  to  do  all  things
          necessary in connection therewith;
 
               (4) To remove  any  Officer  of the  Corporation  with or without
          cause,  and from time to time to devolve  the powers and duties of any
          Officer upon any other person for the time being;
 
               (5) To confer  upon any Officer of the  Corporation  the power to
          appoint,  remove  and  suspend  subordinate  Officers,  employees  and
          agents;
 
               (6) To  adopt  from  time  to  time  such  stock,  option,  stock
          purchase,  bonus or other compensation plans for Directors,  Officers,
          employees and agents of the Corporation and its subsidiaries as it may
          determine;
 
               (7) To adopt from time to time such  insurance,  retirement,  and
          other benefit plans for Directors,  Officers,  employees and agents of
          the Corporation and its subsidiaries as it may determine; and
 
               (8) To adopt from time to time regulations, not inconsistent with
          these By-laws,  for the management of the  Corporation's  business and
          affairs.
 
         Section 9.        Compensation of Directors.
         ---------         -------------------------
 
         Directors, as such, may receive, pursuant to resolution of the Board of
Directors,  fixed fees and other  compensation  for their services as Directors,
including,  without  limitation,  their services as members of committees of the
Board of Directors.
 
 
                            ARTICLE III - COMMITTEES
                            ------------------------
 
         Section 1.        Committee of the Board of Directors.
         ---------         -----------------------------------
 
         The Board of Directors, by a vote of a majority of the Whole Board, may
from  time to  time  designate  committees  of the  Board,  with  such  lawfully
delegable powers and duties as it thereby  confers,  to serve at the pleasure of
the Board and shall,  for those  committees and any others  provided for herein,
elect a Director or Directors to serve as the member or members, designating, if
it desires,  other Directors as alternate  members who may replace any absent or
disqualified member at any meeting of the committee. Any committee so designated
may  exercise  the power and  authority  of the Board of  Directors to declare a
dividend,  to  authorize  the  issuance  of stock or to adopt a  certificate  of
ownership and merger pursuant to Section 253 of the Delaware General Corporation
Law  if  the  resolution  which  designates  the  committee  or  a  supplemental
resolution  of the  Board of  Directors  shall so  provide.  In the  absence  or
disqualification  of any member of any committee and any alternate member in his
or her place, the member or members of the committee  present at the meeting and
not  disqualified  from  voting,  whether or not he or she or they  constitute a
quorum,  may by unanimous vote appoint  another member of the Board of Directors
to act at the meeting in the place of the absent or disqualified member.
 
                                      F-6
<PAGE>
 
         Section 2.        Conduct of Business.
         ---------         -------------------
 
         Each  committee  may  determine  the  procedural  rules for meeting and
conducting  its  business  and  shall  act in  accordance  therewith,  except as
otherwise  provided herein or required by law. Adequate  provision shall be made
for notice to members of all  meetings;  one-third  (1/3) of the  members  shall
constitute a quorum  unless the  committee  shall  consist of one (1) or two (2)
members,  in which  event one (1)  member  shall  constitute  a quorum;  and all
matters shall be determined  by a majority vote of the members  present.  Action
may be taken by any committee  without a meeting if all members  thereof consent
thereto in writing,  and the writing or writings  are filled with the minutes of
the proceedings of such committee.
 
         Section 3.        Nominating Committee.
         ---------         --------------------
 
         The Board of  Directors  shall  appoint a  Nominating  Committee of the
Board,  consisting of not less than three (3) members, one of which shall be the
Chairman of the Board.  The  Nominating  Committee  shall have  authority (a) to
review  any  nominations  for  election  to the  Board  of  Directors  made by a
stockholder  of the  Corporation  pursuant to Section  6(c) (ii) of Article I of
these By-laws in order to determine  compliance  with such By-law  provision and
(b) to  recommend  to the Whole  Board  nominees  for  election  to the Board of
Directors to replace those Directors whose terms expire at the annual meeting of
stockholders next ensuing.
 
 
                              ARTICLE IV - OFFICERS
                              ---------------------
 
         Section 1.        Generally.
         ---------         ---------
 
                  (a) The Board of Directors as soon as may be practicable after
the annual  meeting of  stockholders  shall  choose a Chairman  of the Board,  a
President  and  Chief  Executive  Officer,  one or more Vice  Presidents,  and a
Secretary  and from time to time may choose  such other  Officers as it may deem
proper. The Chairman of the Board shall be chosen from among the Directors.  Any
number of offices may be held by the same person.
 
                  (b) The term of office of all Officers shall be until the next
annual  election of Officers and until their  respective  successors are chosen,
but any Officer may be removed from office at any time by the  affirmative  vote
of two-thirds of the authorized  number of Directors then constituting the Board
of Directors.
 
                  (c) All Officers  chosen by the Board of Directors  shall each
have such powers and duties as generally  pertain to their  respective  offices,
subject to the specific  provisions of this Article IV. Such Officers shall also
have such powers and duties as from time to time may be  conferred  by the Board
of Directors or by any committee thereof.
 
                                      F-7
<PAGE>
 
         Section 2.        Chairman of the Board.
         ---------         ---------------------
 
         The Chairman of the Board  shall,  subject to the  provisions  of these
By-laws  and to the  direction  of the  Board of  Directors,  serve in a general
executive capacity and, when present, shall preside at all meetings of the Board
of  Directors.  The Chairman of the Board shall  perform all duties and have all
powers  which are  commonly  incident  to the office of Chairman of the Board or
which are  delegated  to him or her by the Board of  Directors.  He or she shall
have power to sign all stock  certificates,  contracts and other  instruments of
the Corporation which are authorized.
 
         Section 3.        President and Chief Executive Officer.
         ---------         -------------------------------------
 
         The President and Chief Executive Officer (the "President")  shall have
general  responsibility  for the  management  and  control of the  business  and
affairs  of the  Corporation  and shall  perform  all duties and have all powers
which are  commonly  incident to the offices of  President  and Chief  Executive
Officer or which are delegated to him or her by the Board of Directors.  Subject
to the  direction of the Board of Directors,  the President  shall have power to
sign all stock certificates,  contracts and other instruments of the Corporation
which are  authorized  and shall have  general  supervision  of all of the other
Officers  (other than the  Chairman of the Board),  employees  and agents of the
Corporation.
 
         Section 4.        Vice President.
         ---------         --------------
 
         The Vice President or Vice  Presidents  shall perform the duties of the
President  in his or her absence or during his  disability  to act. In addition,
the Vice  Presidents  shall  perform the duties and exercise the powers  usually
incident to their respective  offices and/or such other duties and powers as may
be properly  assigned  to them by the Board of  Directors,  the  Chairman of the
Board or the President. A Vice President or Vice Presidents may be designated as
Executive Vice President or Senior Vice President or any such designation as the
Board of Directors, Chairman of the Board or President deems appropriate.
 
         Section 5.        Secretary.
         ---------         ---------
 
         The  Secretary  or  an  Assistant  Secretary  shall  issue  notices  of
meetings,  shall  keep  their  minutes,  shall  have  charge of the seal and the
corporate books,  shall perform such other duties and exercise such other powers
as are usually  incident to such offices  and/or such other duties and powers as
are properly  assigned  thereto by the Board of  Directors,  the Chairman of the
Board or the President.
 
         Section 6.        Assistant Secretaries and Other Officers.
         ---------         ----------------------------------------
 
         The Board of Directors  may appoint one or more  Assistant  Secretaries
and such other Officers who shall have such powers and shall perform such duties
as are  provided in these  By-laws or as may be assigned to them by the Board of
Directors, the Chairman of the Board or the President.
 
         Section 7.     Action with Respect to Securities of Other Corporations.
         ---------      -------------------------------------------------------
 
         Unless otherwise  directed by the Board of Directors,  the President or
any Officer of the  Corporation  authorized by the President shall have power to
vote and otherwise act on behalf of the  Corporation,  in person or by proxy, at
any meeting of  stockholders of or with respect to any action of stockholders of
any other corporation in which the Corporation may hold securities and otherwise
to exercise any and all rights and powers which the  Corporation  may possess by
reason of its ownership of securities in such other corporation.
 
                                      F-8
<PAGE>
 
                                ARTICLE V - STOCK
                                -----------------
 
         Section 1.        Certificates of Stock.
         ---------         ---------------------
 
         Each  stockholder  shall be entitled to a certificate  signed by, or in
the name of the Corporation by, the Chairman of the Board or the President,  and
by the  Secretary  or an  Assistant  Secretary,  or any  Treasurer  or Assistant
Treasurer,  certifying  the number of shares  owned by him or her. Any or all of
the signatures on the certificate may be by facsimile.
 
         Section 2.        Transfers of Stock.
         ---------         ------------------
 
         Transfers  of stock shall be made only upon the  transfer  books of the
Corporation  kept  at  an  office  of  the  Corporation  or by  transfer  agents
designated to transfer  shares of the stock of the  Corporation.  Except where a
certificate  is  issued  in  accordance  with  Section  4 of  Article V of these
By-laws,  an outstanding  certificate for the number of shares involved shall be
surrendered for cancellation before a new certificate is issued therefor.
 
         Section 3.        Record Date.
         ---------         -----------
 
         In order that the Corporation may determine the  stockholders  entitled
to notice of or to vote at any meeting of stockholders, or to receive payment of
any dividend or other distribution or allotment of any rights or to exercise any
rights in respect of any  change,  conversion  or  exchange  of 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 on which the  resolution
fixing the record date is adopted  and which  record date shall not be more than
sixty  (60)  nor less  than ten (10)  days  before  the date of any  meeting  of
stockholders,  nor more than  sixty  (60) days  prior to the time for such other
action as hereinbefore described;  provided,  however, that if no record date is
fixed by the Board of Directors,  the record date for  determining  stockholders
entitled  to notice of or to vote at a meeting of  stockholders  shall be at the
close of business on the day next preceding the day on which notice is given or,
if notice is waived,  at the close of business on the day next preceding the day
on which the meeting is held,  and,  for  determining  stockholders  entitled to
receive payment of any dividend or other  distribution or allotment of rights or
to  exercise  any rights of change,  conversion  or exchange of stock or for any
other  purpose,  the record date shall be at the close of business on the day on
which the Board of Directors adopts a resolution relating thereto.
 
         A  determination  of 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 4.        Lost, Stolen or Destroyed Certificates.
         ---------         --------------------------------------
 
         In the event of the loss,  theft or destruction  of any  certificate of
stock,  another may be issued in its place  pursuant to such  regulations as the
Board  of  Directors  may  establish  concerning  proof of such  loss,  theft or
destruction  and  concerning  the  giving  of a  satisfactory  bond or  bonds of
indemnity.
 
                                      F-9
<PAGE>
 
 
         Section 5.        Regulations.
         ---------         -----------
 
         The issue,  transfer,  conversion and  registration  of certificates of
stock shall be governed by such other  regulations as the Board of Directors may
establish.
 
 
                              ARTICLE VI - NOTICES
                              --------------------
 
         Section 1.        Notices.
         ---------         -------
 
         Except as otherwise  specifically  provided  herein or required by law,
all notices required to be given to any stockholder, Director, Officer, employee
or agent shall be in writing and may in every instance be  effectively  given by
hand delivery to the recipient thereof,  by depositing such notice in the mails,
postage paid, or by sending such notice by prepaid telegram or mailgram or other
courier.  Any such notice  shall be  addressed  to such  stockholder,  Director,
Officer,  employee or agent at his or her last known address as the same appears
on the books of the Corporation.  The time when such notice is received, if hand
delivered,  or  dispatched,  if  delivered  through  the mails or by telegram or
mailgram or other courier, shall be the time of the giving of the notice.
 
         Section 2.        Waivers.
         ---------         -------
 
         A written  waiver of any  notice,  signed by a  stockholder,  Director,
Officer,  employee or agent,  whether  before or after the time of the event for
which notice is to be given,  shall be deemed  equivalent to the notice required
to be given to such stockholder,  Director,  Officer, employee or agent. Neither
the business nor the purpose of any meeting need be specified in such a waiver.
 
 
                           ARTICLE VII - MISCELLANEOUS
                           ---------------------------
 
         Section 1.        Facsimile Signatures.
         ---------         --------------------
 
         In addition to the provisions for use of facsimile signatures elsewhere
specifically authorized in these By-laws, facsimile signatures of any Officer or
Officers of the  Corporation may be used whenever and as authorized by the Board
of Directors or a committee thereof.
 
         Section 2.        Corporate Seal.
         ---------         --------------
 
         The Board of Directors may provide a suitable seal, containing the name
of the Corporation,  which seal shall be in the charge of the Secretary.  If and
when so directed by the Board of Directors or a committee thereof, duplicates of
the seal may be kept and used by the Comptroller or by an Assistant Secretary or
an assistant to the Comptroller.
 
         Section 3.        Reliance upon Books, Reports and Records.
         ---------         ----------------------------------------
 
         Each Director,  each member of any committee designated by the Board of
Directors,  and each Officer of the Corporation shall, in the performance of his
or her  duties,  be fully  protected  in relying in good faith upon the books of
account or other records of the Corporation and upon such information, opinions,
reports or  statements  presented to the  Corporation  by any of its Officers or
employees,  or  committees  of the Board of Directors so  designated,  or by any
other person as to matters  which such Director or committee  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.
 
                                      F-10
<PAGE>
 
         Section 4.        Fiscal Year.
         ---------         -----------
 
         The fiscal  year of the  Corporation  shall be as fixed by the Board of
Directors.
 
         Section 5.        Time Periods.
         ---------         ------------
 
         In applying any provision of these  By-laws which  requires that an act
be done or not be done a  specified  number of days prior to an event or that an
act be done  during a period of a  specified  number of days  prior to an event,
calendar days shall be used,  the day of the doing of the act shall be excluded,
and the day of the event shall be included.
 
 
                            ARTICLE VIII - AMENDMENT
                            ------------------------
 
         The Board of Directors may by a two-thirds vote amend,  alter or repeal
these  By-laws  at any  meeting of the Board,  provided  notice of the  proposed
change is given not less than two days prior to the  meeting.  The  stockholders
shall also have power to amend,  alter or repeal these By-laws at any meeting of
stockholders,  provided notice of the proposed change was given in the Notice of
the Meeting;  provided,  however, that,  notwithstanding any other provisions of
these By-laws or any provision of law which might otherwise permit a lesser vote
or no vote,  but in  addition  to any  affirmative  vote of the  holders  of any
particular class or series of the Voting Stock Designation or these By-laws, the
affirmative  votes of the holders of at least 80% of the voting power of all the
then-outstanding  shares of the Voting Stock, voting together as a single class,
shall be required to alter, amend or repeal any provisions of these By-laws.