AMENDED AND RESTATED
                                     BY-LAWS
                                       OF
                       LONE STAR STEAKHOUSE & SALOON, INC.
 
                                   ARTICLE ONE
 
                                  STOCKHOLDERS
 
            SECTION 1.1 Annual  Meetings.  An annual meeting of  stockholders to
elect directors and transact such other business as may properly be presented to
the  meeting  shall  be held on such  date  and at such  place  as the  Board of
Directors may from time to time fix, and if that day shall be a legal holiday in
the  jurisdiction in which the meeting is to be held, then on the next day not a
legal  holiday or as soon  thereafter  as may be practical as  determined by the
Board of Directors.
 
            SECTION 1.2 Special Meetings.  A special meeting of stockholders may
be called at any time by the  Chairman of the Board,  by the Board of  Directors
pursuant  to a  resolution  adopted by a majority of the Whole Board (as defined
below) or by the Secretary at the direction of a majority of the voting power of
all the then outstanding shares of the voting stock, voting together as a single
class  upon  receipt  of a written  request  to do so  specifying  the matter or
matters,  appropriate  for action at such a meeting.  Any such meeting  shall be
held at such time and at such place, within or without the State of Delaware, as
shall be determined  by the body or person  calling such meeting and as shall be
stated in the  notice of such  meeting.  The Whole  Board  shall  mean the total
number of directors which the Corporation would have if there were no vacancies.
 
            SECTION  1.3 Notice of  Meeting.  For each  meeting of  stockholders
written notice shall be given stating the place,  date and hour and, in the case
of a special  meeting,  the purpose or purposes  for which the meeting is called
and,  if the list of  stockholders  required by Section 1.9 is not to be at such
place at least 10 days prior to the meeting,  the place where such list will be.
Except as  otherwise  provided by Delaware  law,  written  notice of any meeting
shall be given  not less  than 10 or more  than 60 days  before  the date of the
meeting to each stockholder entitled to vote at such meeting. If mailed,  notice
shall be deemed  to be given  when  deposited  in United  States  mail,  postage
prepaid,  directed to stockholder at his address at it appears on the records of
the Corporation.
 
                                      -1-
 
 
 
 
            SECTION 1.4 Quorum.  Except as otherwise required by Delaware law or
the  Certificate  of  Incorporation,  the holders of record of a majority of the
shares of stock  entitled to be voted present in person or  represented by proxy
at a meeting shall  constitute a quorum for the  transaction  of business at the
meeting,  but in the  absence  of a quorum  the  holders  of record  present  or
represented  by proxy at such  meeting may vote to adjourn the meeting from time
to time,  without notice other than announcement at the meeting,  until a quorum
is obtained.  At any such adjourned  session of the meeting at which there shall
be present or  represented  the  holders  of record of the  requisite  number of
shares,  any business may be transacted  that might have been  transacted at the
meeting as originally called.
 
            SECTION 1.5  Chairman and  Secretary at Meeting.  At each meeting of
stockholders the President or the Chief Executive  Officer,  or in their absence
the person designated in writing by the President or Chief Executive Officer, or
if no person is designated,  then a person designated by the Board of Directors,
shall preside as chairman of the meeting;  if no person is so  designated,  then
the meeting shall choose a chairman by plurality vote. The Secretary,  or in his
absence  a person  designated  by the  chairman  of the  meeting,  shall  act as
secretary of the meeting.
 
            SECTION  1.6  Voting;  Proxies.  Except  as  otherwise  provided  by
Delaware law or the Certificate of Incorporation,  and subject to the provisions
of Section 1.10:
 
                   (a)  Each   stockholder   shall  at  every   meeting  of  the
            stockholders be entitled to one vote for each share of capital stock
            held by him.
 
                   (b)  Each  stockholder  entitled  to  vote  at a  meeting  of
            stockholders or to express consent or dissent to corporate action in
            writing without a meeting may authorize another person or persons to
            act for him by proxy, but no such proxy shall be voted or acted upon
            after three  years from its date,  unless the proxy  provides  for a
            longer period.
 
                   (c) Directors shall be elected by a plurality vote.
 
                   (d) Each matter,  other than election of directors,  properly
            presented to any meeting shall be decided by a majority of the votes
            cast on the matter.
 
                                      -2-
 
 
 
 
 
                   (e)  Election of  directors  and the vote on any other matter
            presented to a meeting shall be by written ballot only if so ordered
            by the chairman of the meeting or if so requested by any stockholder
            present or represented  by proxy at the meeting  entitled to vote in
            such election or on such matter, as the case may be.
 
            SECTION 1.7 Adjourned  Meetings.  A meeting of  stockholders  may be
adjourned to another time or place as provided in Section 1.4 or 1.6(d).  Unless
the Board of Directors  fixes a new record date,  stockholders  of record for an
adjourned  meeting shall be as originally  determined for the meeting from which
the  adjournment  was taken.  If the adjournment is for more than 30 days, or if
after the  adjournment a new record date is fixed for the adjourned  meeting,  a
notice of the  adjourned  meeting shall be given to each  stockholder  of record
entitled to vote. At the adjourned  meeting any business may be transacted  that
might have been transacted at the meeting as originally called.
 
            SECTION 1.8 Consent of Stockholders  in Lieu of Meeting.  Any action
that may be taken at any annual or special meeting of stockholders  may be taken
without a meeting,  without  prior  notice and  without a vote,  if a consent in
writing,  setting  forth the action so taken,  shall be signed by the holders of
outstanding stock having not less than the minimum number of votes that would be
necessary  to  authorize  or take such  action at a meeting  at which all shares
entitled to vote thereon were present and voted. Notice of taking of such action
shall be given  promptly to each  stockholders  that would have been entitled to
vote thereon at a meeting of  stockholders  and that did not consent  thereto in
writing.
 
            SECTION 1.9 List of Stockholders  Entitled to Vote. At least 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 of shares  registered in the name of
each stockholder,  shall be prepared and 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 10 days prior to the meeting,  at a place within
the city where the meeting is to be held.  Such list shall be produced  and kept
at the time and place of the  meeting  during the whole time  thereof and may be
inspected by any stockholder who is present.
 
            SECTION  1.10 Fixing of Record Date.  In order that the  Corporation
may determine the  stockholders  entitled to notice of or to vote at any meeting
of stockholders or any adjournment  thereof,  or to express consent to corporate
 
                                      -3-
 
 
 
action in  writing  without a meeting,  or  entitled  to receive  payment of any
dividend  or other  distribution  or  allotment  of any  rights,  or entitled 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, in
advance,  a record  date,  which  shall not be more than 60 or less than 10 days
before  the date of such  meeting,  nor  more  than 60 days  prior to any  other
action. If no record date is fixed, 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 day
on which the  meeting is held;  the  record  date for  determining  stockholders
entitled to express  consent to corporate  action in writing  without a meeting,
when no prior action by the Board of Directors is necessary, shall be the day on
which the first written consent is expressed;  and the record date for any other
purpose  shall be at the  close of  business  on the day on which  the  Board of
Directors adopts the resolution relating thereto.
 
 
                                   ARTICLE TWO
 
                                    DIRECTORS
 
            SECTION 2.1 Number.  The number of directors  that shall  constitute
the whole  Board of  Directors  shall  initially  be four,  which  number may be
changed  from time to time as  determined  by  action of the Board of  Directors
taken by the affirmative vote of a majority of the Whole Board of Directors.
 
            SECTION 2.2  Election and Term of  Director.  The  directors of this
Corporation  shall be divided into three classes,  with respect to the time that
they  severally  hold office,  as nearly  equal in number as possible,  with the
initial  term of office of the first  class of  directors  to expire at the 2001
annual meeting of stockholders  of the  Corporation  and until their  respective
successors are elected and  qualified,  the initial term of office of the second
class of directors to expire at the 2002 annual meeting of  stockholders  of the
Corporation and until their respective  successors are elected and qualified and
the initial term of office of the third class of directors to expire at the 2003
annual meeting of stockholders  of the  Corporation  and until their  respective
successors  are  elected  and  qualified.  Directors  elected to  succeed  those
directors  whose  terms have  thereupon  expired  shall be elected for a term of
office to expire at the third  succeeding  annual meeting of stockholders of the
Corporation  after their  election  and until their  respective  successors  are
elected and qualified.
 
                                      -4-
 
 
 
 
            SECTION 2.3 Newly Created Directorships and Vacancies.
 
            (a) If the number of directors is changed,  any increase or decrease
shall be apportioned among the classes so as to maintain or attain, if possible,
the  equality of the number of  directors  in each class,  but in no case will a
decrease in the number of directors shorten the term of any incumbent  director.
If such equality is not possible,  the increase or decrease shall be apportioned
among the classes in such a way that the  difference  in the number of directors
in any two classes shall not exceed one.
 
            (b)  Vacancies and newly created  directorships  resulting  from any
increase in the authorized  number of directors may be filled only by a majority
of the directors then in office,  although less than a quorum, and a director so
chosen  shall hold office,  subject to Sections  2.4 and 2.5, for the  unexpired
portion of the term of the class in which such  director was chosen to serve and
until his successor is elected and qualified.
 
            SECTION 2.4 Resignation.  Any director of the Corporation may resign
at any  time by  giving  written  notice  of such  resignation  to the  Board of
Directors,  the  President  or  the  Secretary  of  the  Corporation.  Any  such
resignation  shall take effect at the time  specified  therein or, if no time be
specified,  upon  receipt  thereof  by  the  Board  of  Directors  or one of the
above-named  officers;  and, unless  specified  therein,  the acceptance of such
resignation  shall  not be  necessary  to make it  effective.  When  one or more
directors shall resign from the Board of Directors effective at a future date, a
majority of the directors then in office,  including those who have so resigned,
shall have power to fill such  vacancy or  vacancies,  the vote  thereon to take
effect when such resignation or resignations  shall become  effective,  and each
director so chosen shall hold office as provided in these By-Laws in the filling
of other vacancies.
 
            SECTION 2.5 Remova1.  Unless  these  By-Laws or the  Certificate  of
Incorporation otherwise provides,  where the Board of Directors is classified as
provided in Section 141(d) of the Delaware General Corporation Law, any director
or the entire Board of Directors may be removed by stockholders  only for cause,
and the  affirmative  vote of the holders of outstanding  stock  representing at
least  eighty  percent  (80%) in the amount of the entire  capital  stock of the
Corporation then entitled to vote generally in the election of Directors, or the
affirmative vote of at least a majority of the Whole Board, shall be required to
effect such removal.
 
                                      -5-
 
 
 
 
 
            SECTION 2.6 Regular and Annual Meetings, Notice. Regular meetings of
the Board of Directors  Shall be held at such time and at such place,  within or
without the State of Delaware,  as the Board of Directors  may from time to time
prescribe.  No notice need be given of any  regular  meeting,  and a notice,  if
given,  need not  specify  the  purposes  thereof.  A  meeting  of the  Board of
Directors  may be held without  notice  immediately  after an annual  meeting of
stockholders at the same place as that at which such meeting was held.
 
            SECTION 2.7 Special Meetings, Notice. A special meeting of the Board
of Directors may be called at any time by the Board of Directors,  its Chairman,
the Executive Committee,  the President or any person acting in the place of the
President  and  shall  be  called  by any one of them or by the  Secretary  upon
receipt  of a  written  request  to do so  specifying  the  matter  or  matters,
appropriate  for  action at such a  meeting,  proposed  to be  presented  at the
meeting and signed by at least two directors.  Any such meeting shall be held at
such time and at such place,  within or without the State of Delaware,  as shall
be determined by the body or person calling such meeting. Notice of such meeting
stating the time and place  thereof  shall be given (a) by deposit of the notice
in the United  States mail,  first  class,  postage  prepaid,  at least two days
before the day fixed for the meeting  addressed to each  director at his address
as it appears  on the  Corporation's  records  or at such  other  address as the
director may have furnished the Corporation for that purpose, or (b) by delivery
of the notice similarly  addressed for dispatch by telegraph,  cable or radio or
by delivery of notice by telephone or in person,  in each case at least 24 hours
before the time fixed for the meeting.
 
            SECTION 2.8 Chairman of the Board;  Presiding  Officer and Secretary
at Meetings. The Board of Directors may elect one of its members to serve at its
pleasure as Chairman of the Board.  Each meeting of the Board of Directors shall
be  presided  over by the  Chairman  of the Board or in his absence by the Chief
Executive Officer or the President,  if a director,  or if neither is present by
such member of the Board of  Directors  as shall be chosen at the  meeting.  The
Secretary,  or in his absence an Assistant Secretary,  shall act as secretary of
the meeting,  or if no such officer is present, a secretary of the meeting shall
be designated by the person presiding over the meeting.
 
            SECTION 2.9 Quorum. A majority of the Whole Board of Directors shall
constitute a quorum for the  transaction  of  business,  but in the absence of a
quorum a majority of those  present  (or if only one be present,  then that one)
may adjourn the meeting,  without notice other than announcement at the meeting,
until such time as a quorum is  present.
 
 
                                      -6-
 
 
 
Except as otherwise required by the Certificate of Incorporation or the By-Laws,
the vote of the majority of the directors present at a meeting at which a quorum
is present shall be the act of the Board of Directors.
 
            SECTION 2.10 Meeting by Telephone. Members of the Board of Directors
or any committee  thereof may  participate in meetings of the Board of Directors
or 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 such participation  shall constitute  presence in person at such
meeting.
 
            SECTION 2.11 Action Without Meeting.  Unless otherwise restricted by
the Certificate of  Incorporation,  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 of such
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
of such committee.
 
            SECTION 2.12 Executive and Other Committees.  The Board of Directors
may,  by  resolution  passed  by a  majority  of the Whole  Board of  Directors,
designate an Executive  Committee  and one or more other  committees,  each such
committee to consist of one or more directors as the Board of Directors may from
time to time  determine.  Any such  committee,  to the extent  provided  in such
resolution  or  resolutions,  shall  have and may  exercise  all the  powers and
authority  of the Board of  Directors  in the  management  of the  business  and
affairs of the  Corporation,  including  the power to authorize  the seal of the
Corporation  to be  affixed  to all  papers  that  may  require  it but no  such
committee  shall have such power of  authority  in  reference  to  amending  the
Certificate of Incorporation,  adopting an agreement of merger or consolidation,
recommending  to  the  stockholders  the  sale,  lease  or  exchange  of  all or
substantially all of the Corporation's property and assets,  recommending to the
stockholders a dissolution of the  Corporation or a revocation of a dissolution,
or amending the By-Laws;  and unless the resolution  shall expressly so provide,
no such committee  shall have the power or authority to declare a dividend or to
authorize the issuance of stock. In the absence or  disqualification of a member
of a  committee,  the member or members  thereof  present at any meeting and not
disqualified  from voting,  whether or not he or they  constitute a quorum,  may
unanimously  appoint  another  member  of the Board of  Directors  to act at the
meeting in place of any such absent or disqualified  member. Each such committee
other than the  Executive  Committee  shall have such name as may be  determined
from time to time by the Board of Directors.
 
 
                                      -7-
 
 
 
            SECTION 2.13 Advance Notice of Stockholder Nominees for Director and
Other Stockholder Proposals.
 
            (a) The matters to be  considered  and brought  before any annual or
      special meeting of  stockholders  of the  Corporation  shall be limited to
      only such matters,  including the nomination and election of directors, as
      shall be brought  properly  before  such  meeting in  compliance  with the
      procedures set forth in this Section 2.13.
 
            (b) For any matter to be properly  brought before any annual meeting
      of stockholders,  the matter must be (i) specified in the notice of annual
      meeting  given by or at the  direction  of the  Board of  Directors,  (ii)
      otherwise  brought before the annual meeting by or at the direction of the
      Board of  Directors  or (iii)  brought  before the  annual  meeting in the
      manner  specified in this Section 2.13(b) (x) by a stockholder  that holds
      of record stock of the Corporation  entitled to vote at the annual meeting
      on such matter  (including  any election of a director) or (y) by a person
      (a "Nominee  Holder")  that holds such stock  through a nominee or "street
      name"  holder  of  record  of  such  stock  and  can  demonstrate  to  the
      Corporation  such  indirect   ownership  of,  and  such  Nominee  Holder's
      entitlement to vote,  such stock on such matter.  In addition to any other
      requirements  under applicable law, the certificate of  incorporation  and
      these By-Laws, persons nominated by stockholders for election as directors
      of the  Corporation  and any  other  proposals  by  stockholders  shall be
      properly  brought before an annual meeting of stockholders  only if notice
      of any such matter to be  presented  by a  stockholder  at such meeting (a
      "Stockholder   Notice")  shall  be  delivered  to  the  Secretary  of  the
      Corporation at the principal  executive office of the Corporation not less
      than 90 nor more than 120 days prior to the first  anniversary date of the
      annual meeting for the preceding year; provided, however, that if and only
      if the annual  meeting is not  scheduled  to be held  within a period that
      commences 30 days before and ends 30 days after such  anniversary date (an
      annual  meeting date  outside  such period being  referred to herein as an
      "Other  Meeting  Date"),  such  Stockholder  Notice  shall be given in the
      manner  provided  herein by the later of (i) the close of  business on the
      date 90 days  prior  to such  Other  Meeting  Date or (ii)  the  close  of
      business on the tenth day  following  the date on which such Other Meeting
      Date is first publicly announced or disclosed. Any stockholder desiring to
      nominate  any person or  persons  (as the case may be) for  election  as a
 
                                      -8-
 
 
 
 
 
      director  or  directors  of  the  Corporation  at  an  annual  meeting  of
      stockholders  shall  deliver,  as  part  of  such  Stockholder  Notice,  a
      statement in writing setting forth the name of the person or persons to be
      nominated,  the  number  and class of all shares of each class of stock of
      the Corporation  owned of record and beneficially by each such person,  as
      reported to such  stockholder by such person,  the  information  regarding
      each such person  required by  paragraphs  (a), (e) and (f) of Item 401 of
      Regulation  S-K adopted by the Securities  and Exchange  Commission,  each
      such person's  signed consent to serve as a director of the Corporation if
      elected,  such stockholder's name and address, the number and class of all
      shares  of each  class of stock of the  Corporation  owned of  record  and
      beneficially  by such  stockholder  and, in the case of a Nominee  Holder,
      evidence  establishing such Nominee Holder's  indirect  ownership of stock
      and  entitlement  to vote such stock for the  election of directors at the
      annual  meeting.  Any  stockholder  who gives a Stockholder  Notice of any
      matter  (other  than a  nomination  for  director)  proposed to be brought
      before an annual meeting of  stockholders  shall deliver,  as part of such
      Stockholder  Notice,  the text of the proposal to be presented and a brief
      written statement of the reasons why such stockholder  favors the proposal
      and setting  forth such  stockholder's  name and  address,  the number and
      class of all  shares of each  class of stock of the  Corporation  owned of
      record and beneficially by such stockholder, any material interest of such
      stockholder  in the matter  proposed  (other  than as a  stockholder),  if
      applicable,  and, in the case of a Nominee Holder,  evidence  establishing
      such Nominee Holder's indirect  ownership of stock and entitlement to vote
      such stock on the matter proposed at the annual meeting.  As used in these
      By-Laws,  shares  "beneficially  owned"  shall mean all shares  which such
      person is deemed to  beneficially  own  pursuant  to Rules 13d-3 and 13d-5
      under the  Securities  Exchange  Act of 1934 (the  "Exchange  Act").  If a
      stockholder  is entitled to vote only for a specific  class or category of
      directors at a meeting (annual or special),  such  stockholder's  right to
      nominate one or more individuals for election as a director at the meeting
      shall be limited to such class or category of directors.
 
            Notwithstanding  any provision of this Section 2.13 to the contrary,
      in the event  that the number of  directors  to be elected to the Board of
      Directors of the Corporation at the next annual meeting of stockholders is
      increased  by virtue of an increase in the size of the Board of  Directors
 
                                      -9-
 
 
 
      and either all of the nominees for director at the next annual  meeting of
      stockholders  or the  size of the  increased  Board  of  Directors  is not
      publicly announced or disclosed by the Corporation at least 100 days prior
      to the  first  anniversary  of the  preceding  year's  annual  meeting,  a
      Stockholder  Notice shall also be considered  timely  hereunder,  but only
      with respect to nominees to stand for election at the next annual  meeting
      as the result of any new positions  created by such increase,  if it shall
      be  delivered  to the  Secretary  of  the  Corporation  at  the  principal
      executive  office of the  Corporation not later than the close of business
      on the tenth day following the first day on which all such nominees or the
      size  of the  increased  Board  of  Directors  shall  have  been  publicly
      announced or disclosed.
 
            (c) Except as provided in the  immediately  following  sentence,  no
      matter shall be properly  brought before a special meeting of stockholders
      unless such matter shall have been brought before the meeting  pursuant to
      the  Corporation's  notice of such meeting.  In the event the  Corporation
      calls a special meeting of stockholders for the purpose of electing one or
      more directors to the Board of Directors, any stockholder entitled to vote
      for the election of such director(s) at such meeting may nominate a person
      or persons (as the case may be) for  election to such  position(s)  as are
      specified in the  Corporation's  notice of such  meeting,  but only if the
      Stockholder  Notice  required by Section 2.13(b) hereof shall be delivered
      to the Secretary of the Corporation at the principal  executive  office of
      the  Corporation  not later  than the close of  business  on the tenth day
      following  the  first  day on which the date of the  special  meeting  and
      either the names of all nominees  proposed by the Board of Directors to be
      elected at such  meeting or the number of  directors  to be elected  shall
      have been publicly announced or disclosed.
 
            (d) For purposes of this  Section  2.13, a matter shall be deemed to
      have been "publicly announced or disclosed" if such matter is disclosed in
      a press  release  reported by the Dow Jones News Service,  the  Associated
      Press or a  comparable  national  news  service or in a document  publicly
      filed by the Corporation with the Securities and Exchange Commission.
 
            (e) In no event  shall the  adjournment  of an annual  meeting  or a
      special meeting,  or any announcement  thereof,  commence a new period for
      the giving of notice as provided in this Section  2.13.  This Section 2.13
 
                                      -10-
 
 
 
      shall not apply to (i) any  stockholder  proposal  made  pursuant  to Rule
      14a-8 under the  Exchange Act or (ii) any  nomination  of a director in an
      election  in which  only the  holders of one or more  series of  Preferred
      Stock  of  the  Corporation  issued  pursuant  to  Article  FOURTH  of the
      certificate  of  incorporation  are  entitled  to vote  (unless  otherwise
      provided in the terms of such stock).
 
            (f) The  chairman  of any  meeting of  stockholders,  in addition to
      making any other  determinations that may be appropriate to the conduct of
      the meeting,  shall have the power and duty to determine whether notice of
      nominees  and other  matters  proposed to be brought  before a meeting has
      been duly given in the manner provided in this Section 2.13 and, if not so
      given,  shall  direct and declare at the meeting  that such  nominees  and
      other matters shall not be considered.
 
            SECTION  2.14  Independent  Directors.  A  majority  of the Board of
Directors  shall be  comprised  of  Independent  Directors.  For the  purpose of
Section 2.14, the term "Independent Director" shall mean a director who: (i) has
not been employed by the  Corporation in an executive  capacity  within the last
five  years;  (ii) is not,  and is not  affiliated  with a  company  that is, an
advisor or consultant to the Corporation,  or a significant customer or supplier
of the company;  (iii) has no personal services contract(s) with the Corporation
or  the  Corporation's  senior  management;   (iv)  is  not  affiliated  with  a
not-for-profit   entity  that  receives   significant   contributions  from  the
Corporation;  (v)  within  the  last  five  years,  has  not  had  any  business
relationship  with the  Corporation  that the  Corporation  has been required to
disclose under the Securities and Exchange  Commission  disclosure  regulations;
(vi) is not employed by a public  company at which an  executive  officer of the
Corporation serves as a director;  (vii) has not had a relationship described in
(i) through (vi) above with any affiliate of the Corporation;  and (viii) is not
a member of the  immediate  family of any person  described in (i) through (vii)
above.
 
                                 ARTICLE 3.THREE
 
                                    OFFICERS
 
            SECTION  3.1  Election;   Disqualification.   The  officers  of  the
Corporation  shall  be  a  Chairman  of  the  Board,  Chief  Executive  Officer,
President,  one or more Vice  Presidents,  a Secretary and a Treasurer,  each of
whom shall be selected by the Board of  Directors.  The Board of  Directors  may
elect a Controller,  one or more  Assistant  Secretaries,  one or more Assistant
 
                                      -11-
 
 
 
Treasurers,  one or more Assistant Controllers and such other officers as it may
from time to time determine. Two or more offices may be held by the same person.
 
            SECTION 3.2 Term of Office.  Each officer shall hold office from the
time of his election and  disqualification to the time at which his successor is
elected  and  qualified,  unless  he shall  die or  resign  or shall be  removed
pursuant to Section 3.4 at any time sooner.
 
            SECTION 3.3  Resignation.  Any officer of the Corporation may resign
at any  time by  giving  written  notice  of such  resignation  to the  Board of
Directors,  the Chief Executive  Officer,  the President or the Secretary of the
Corporation.  Any such  resignation  shall  take  effect  at the time  specified
therein  or,  if no time be  specified,  upon  receipt  thereof  by the Board of
Directors or one of the above-named officers; and, unless specified therein, the
acceptance of such resignation shall not be necessary to make it effective.
 
            SECTION 3.4 Removal. Any officer may be removed at any time, with or
without cause, by the vote of a majority of the Whole Board.
 
            SECTION 3.5 Vacancies.  Any vacancy  however caused in any office of
the Corporation may be filled by the Board of Directors.
 
            SECTION 3.6 Compensation.  The compensation of each officer shall be
such as the Board of Directors may from time to time determine.
 
            SECTION 3.7  Chairman of the Board.  The Chairman of the Board shall
be the Chairman of all meetings of the Board of Directors.
 
            SECTION 3.8 Chief Executive  Officer.  The Chief  Executive  Officer
shall be the Chief Executive Officer of the Corporation and, in the absence of a
President,  shall  have  general  charge  of the  business  and  affairs  of the
Corporation,  subject, however, to the right of the Board of Directors to confer
specified powers on officers and subject generally to the direction of the Board
of Directors and the Executive Committee, if any.
 
            SECTION 3.9  President.  The President  shall have general charge of
the business and affairs of the Corporation, subject however to the right of the
Board of Directors to confer specified powers on officers and subject  generally
to the direction of the Board of Directors and the Executive Committee, if any.
 
                                      -12-
 
 
 
 
 
            SECTION 3.10 Vice  President.  Each Vice  President  shall have such
powers and duties as generally  pertain to the office of Vice  President  and as
the Board of Directors or the President may from time to time prescribe.  During
the absence of the President or his inability to act, the Vice President,  or if
there shall be more than one Vice  President,  then that one  designated  by the
Board of  Directors,  shall  exercise the powers and shall perform the duties of
the  President,  subject  to the  direction  of the Board of  Directors  and the
Executive Committee, if any.
 
            SECTION 3.11 Secretary.  The Secretary shall keep the minutes of all
meetings of stockholders and of the Board of Directors. He shall be custodian of
the  corporate  seal  and  shall  affix it or  cause  it to be  affixed  to such
instruments  as require  such seal and attest  the same and shall  exercise  the
powers and shall perform the duties incident to the office of Secretary, subject
to the direction of the Board of Directors and the Executive Committee, if any.
 
            SECTION 3.12 Other  Officers.  Each other officer of the Corporation
shall  exercise the powers and shall perform the duties  incident to his office,
subject to the discretion of the Board of Directors and the Executive Committee,
if any.
 
                                  ARTICLE FOUR
 
                                  CAPITAL STOCK
 
            SECTION 4.1 Stock Certificates. The interest of each holder of stock
of the  Corporation  shall be evidenced by a certificate or certificates in such
form as the Board of Directors may from time to time prescribe. Each certificate
shall be signed by or in the name of the  Corporation by the President or a Vice
President and by the Treasurer or an Assistant  Treasurer or the Secretary or an
Assistant Secretary.  Any or all the signatures appearing on such certificate or
certificates may be a facsimile. If any officer, transfer agent or registrar who
has signed or whose facsimile signature has been placed upon a certificate 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 were such officer, transfer agent or registrar at the date of issue.
 
            SECTION 4.2 Transfer of Stock. Shares of stock shall be transferable
on the books of the  Corporation  pursuant to applicable  law and such rules and
regulations as the Board of Directors shall from time to time prescribe.
 
                                      -13-
 
 
 
 
 
            SECTION  4.3  Holders  of  Record.  Prior  to  due  presentment  for
registration  of transfer  the  Corporation  may treat the holder of record of a
share of its stock as the complete owner thereof  exclusively  entitled to vote,
to receive  notifications  and otherwise  entitled to all rights and powers of a
complete owner thereof, notwithstanding notice to the contrary.
 
            SECTION 4.4 Lost, Stolen,  Destroyed or Mutilated Certificates.  The
Corporation  shall  issue a new  certificate  of stock to replace a  certificate
theretofore  issued by it  alleged to have been lost,  destroyed  or  wrongfully
taken, if the owner or his legal representative (i) requests replacement, before
the  Corporation  has notice that the stock  certificate  has been acquired by a
bona fide  purchaser;  (ii)  files with the  Corporation  a bond  sufficient  to
indemnify  the  Corporation  against any loss or  destruction  of any such stock
certificate  or the  issuance  of any  such new  stock  certificate;  and  (iii)
satisfies  such other terms and  conditions  as the Board of Directors  may from
time to time prescribe.
 
                                  ARTICLE FIVE
 
                                  MISCELLANEOUS
 
            SECTION 5.1 Indemnity.
 
            (a) Each  person who was or is made a party or is  threatened  to be
made a party to or is involved  in any  action,  suit,  or  proceeding,  whether
civil, criminal,  administrative or investigative  (hereinafter a "proceeding"),
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,  officer,  employee  or  agent  of  the
Corporation  or is or was  serving  at the  request  of  the  Corporation,  as a
director,  officer  or  employee  or  agent  of  another  corporation  or  of  a
partnership,  joint venture,  trust or other enterprise,  including service with
respect to  employee  benefit  plans,  whether the basis of such  proceeding  is
alleged  action in an  official  capacity as a  director,  officer,  employee or
agent, or in any other capacity while serving as a director,  officer,  employee
or agent,  shall be  indemnified  and held  harmless by the  Corporation  to the
fullest extent  authorized by the Delaware  General  Corporation Law as the same
exists or may hereafter be amended (but, in the case of any such amendment, only
to the extent that such amendment  permits the  Corporation  to provide  broader
indemnification  rights than said law permitted the Corporation to provide prior
to  such   amendment)  and  in  the  manner   provided  in  the  Certificate  of
Incorporation  of the  Corporation  and as  otherwise  permitted by the Delaware
General Corporation Law.
 
                                      -14-
 
 
 
 
 
            SECTION  5.2 Waiver on Notice.  Whenever  notice is  required by the
Certificate  of  Incorporation,  the By-Laws or any  provision  of the  Delaware
General Corporation Law, a written waiver thereof, signed by the person entitled
to notice,  whether before or after the time required for such notice,  shall be
deemed  equivalent  to  notice.  Attendance  of  a  person  at a  meeting  shall
constitute a waiver of notice of such meeting,  except when the person attends a
meeting for the express  purpose of objecting,  at the beginning of the meeting,
to the transaction of any business because the meeting is not lawfully called or
convened.  Neither  the  business to be  transacted  at, nor the purpose of, any
regular  or  special  meeting  of the  stockholders,  directors  or members of a
committee of directors need be specified in any written waiver or notice.
 
            SECTION 5.3 Fiscal Year.  The fiscal year of the  Corporation  shall
start on such date as the Board of Directors shall from time to time prescribe.
 
            SECTION 5.4 Corporate Seal. The corporate seal shall be in such form
as the Board of Director  may from time to time  prescribe,  and the same may be
used by causing it or a facsimile  thereof to be  impressed or affixed or in any
other manner reproduced.
 
                                      -15-
 
 
 
 
 
 
                                   ARTICLE SIX
 
                              AMENDMENT OF BY-LAWS
 
            SECTION  6.1  Amendment.  Except with  respect to  Sections  2.2 and
2.3(a) of these By-Laws, the By-Laws may be altered,  amended or repealed by the
stockholders  or by the Board of Directors by a majority  vote.  With respect to
Sections  2.2 and 2.3(a),  the  affirmative  vote of the holders of  outstanding
stock  representing  at least eighty  percent  (80%) in the amount of the entire
capital stock of the Corporation then entitled to vote generally in the election
of  directors  shall be required to amend or repeal,  or to adopt any  provision
inconsistent  with  Sections  2.2  and  2.3(a),  unless  approved  by  at  least
seventy-five  percent (75%) of the Whole Board of the Corporation.  In the event
that at least  seventy-five  percent (75%) of the Whole Board  approves any such
provision,  then  the  affirmative  vote of the  holders  of  outstanding  stock
representing  at least a majority in the amount of the entire  capital  stock of
the  Corporation  then  entitled to vote  generally in the election of directors
shall be required  to amend or repeal,  or to adopt any  provision  inconsistent
with Sections 2.2 and 2.3(a).