SECOND RESTATED CERTIFICATE OF INCORPORATION

 

                                       of

 

                              LIFETIME BRANDS, INC.

 

                     Pursuant to Section 245 of the Delaware

 

                             General Corporation Law

 

         LIFETIME  BRANDS,  INC., a Delaware  Corporation,  hereby  certifies as

follows:

 

 

         1. The name of the  Corporation  is LIFETIME  BRANDS,  INC. The date of

filing of the original  Certificate of Incorporation of the Corporation with the

Secretary of State of the State of Delaware  was  December  22,  1983.  The name

under which the Corporation was originally incorporated is L C Acquisition Corp.

 

         2. The original Certificate of Incorporation as amended or supplemented

was  further  amended  and  restated  by the  filing on April 23,  1991 with the

Secretary  of State of a  Restated  Certificate  of  Incorporation  (the  "First

Restated Certificate of Incorporation").

 

         3. This Second Restated  Certificate of  Incorporation  merely restates

and  integrates  and does not further amend the First  Restated  Certificate  of

Incorporation of the Corporation as heretofore amended or supplemented.

 

         4.  The  First  Certificate  of  Incorporation  of the  Corporation  as

heretofore amended or supplemented is hereby restated to read as follows:

 

                  SECOND RESTATED CERTIFICATE OF INCORPORATION

 

                                       of

 

                              LIFETIME BRANDS, INC.

 

         FIRST: The name of the Corporation is LIFETIME BRANDS, INC.

 

         SECOND:  The address of its registered  office in the State of Delaware

is 2711 Centerville  Road, Suite 400,  Wilmington,  Delaware 19808 in New Castle

County.  The name of its registered  agent at such address is The  Prentice-Hall

Corporation System Inc.

 

         THIRD:  The nature of the  business  or  purposes  to be  conducted  or

promoted is to engage in any lawful act or activity for which  Corporations  may

be organized under the General Corporation Law of the State of Delaware.

 

         FOURTH: The total number of shares of stock which the Corporation shall

have authority to issue is twenty-seven million one hundred (27,000,100) shares,

of which one hundred (100) shares,  of the par value of One Dollar ($1.00) each,

are  to  be  of a  class  designated  Series  A  Preferred  Stock,  two  million

(2,000,000)  shares, of the par value of One Dollar ($1.00) each, are to be of a

class designated Series B Preferred Stock and twenty-five  million  (25,000,000)

shares,  of the  par  value  of  One  Cent  ($.0l)  each,  are to be of a  class

designated Common Stock.

 

         The designation,  relative  rights,  preferences and limitations of the

shares of each class of stock of the Corporation are as follows:

 

         1. Dividend Rights.

 

         (a) The  holders of the Series A  Preferred  Stock shall be entitled to

receive  when,  as, and if  declared  by the Board of  Directors  and out of the

assets of the  Corporation  which  are  legally  available  for the  payment  of

dividends,  cumulative  preferential  cash  dividends  in the amount of $700 per

annum for each share of Series A  Preferred  Stock  held,  and no more,  payable

quarterly in arrears on the last day of March,  June,  September and December of

each year (each such date being  hereinafter  referred to as a "Dividend Payment

Date") commencing June 30, 1984. Dividends upon shares of the Series A Preferred

Stock shall  accrue on a daily  basis  commencing  on the date of  issuance  and

accrued dividends for each dividend period shall  accumulate,  to the extent not

paid,  on the Dividend  Payment  Date on which they shall first become  payable.

Such dividends shall accrue whether or not the Corporation  shall have earnings,

whether  or not  there  shall be funds  legally  available  for the  payment  of

dividends and whether or not such dividends are declared.  Accumulated dividends

on shares of Series A Preferred Stock shall not bear interest.

 

<PAGE>

 

 

         (b) Whenever full  dividends upon the issued and  outstanding  Series A

Preferred Stock as aforesaid for all past quarterly  dividend periods shall have

been paid  without  interest  and whenever  full  dividends  upon the issued and

outstanding Series A Preferred Stock as aforesaid for the then current quarterly

dividend period shall have been declared and either paid or a sum sufficient for

the payment  set aside in full  without  interest,  the Board of  Directors  may

declare,  set aside or pay additional  cash dividends which if declared shall be

payable  on or set apart for the  Series B  Preferred  shares as  follows:  Each

issued and  outstanding  Series B Preferred  share  shall  entitle the holder of

record  thereof to receive  dividends in cash at the rate to be established by a

Board of Directors of the  Corporation  at the time of issuance of such Series B

Preferred  shares on such dates in each  calendar year as the Board of Directors

shall deem  advisable  and which will be  declared  and set apart or paid before

dividends  of any kind  may be  declared  upon  the  common  shares  and  before

distributions  of any kind may be made upon the  issued and  outstanding  common

shares. The right as aforesaid to dividends upon issued and outstanding Series B

Preferred  shares and whether same shall be  cumulative  or  non-cumulative  and

shall or shall not be deemed to accrue  whether  dividends are earned or whether

there be funds weekly  available  therefor  shall be  determined by the Board of

Directors at the time of issuance of Preferred B shares.

 

         (c) Whenever any full  dividends have been declared upon the issued and

outstanding Series B Preferred shares as aforesaid for all past dividend periods

shall have been paid  without  interest  and whenever  full  dividends  upon the

issued and outstanding  Series B Preferred shares aforesaid for the then current

dividend period shall have been declared and either paid or a sum sufficient for

the payment  thereof set aside  without  interest,  the Board of  Directors  may

declare,  set aside or pay  additional  cash  dividends  and/or  may make  share

distributions  of  unissued  common  shares  of the  Corporation  and/or  of its

treasury  common  shares,  if any,  and/or  may make  distributions  of bonds or

property  of  the   Corporation,   including   the  shares  or  bonds  of  other

Corporations.  The holders of record of the issued and outstanding common shares

shall be entitled in respect of said common  shares  exclusively  to receive any

such   additional   cash  dividends  which  may  be  declared  and/or  any  such

distributions  which may be made,  each  issued  and  outstanding  common  share

entitling  the holder of record  thereof to receive an equal  proportion of said

dividends  and/or  distributions.  Any  reference  to  "distributions"  in  this

paragraph  contained  shall not be deemed to include any  distributions  made in

connection with any liquidation,  dissolution, or winding up of the Corporation,

whether   voluntary   or   involuntary;   nor  shall  any  such   reference   to

"distributions" in relation to issued and outstanding shares be deemed to limit,

curtail,  or divest the  authority  of the Board of Directors to make any proper

distributions, including distributions of authorized but unissued common shares,

in relation to its treasury common shares, if any.

 

         2. Redemption Rights

 

         (a)  The  Corporation  may,  through  its  Board  of  Directors  and in

conformity  with the provisions of the General  Corporation  Law, at any time or

from time to time, redeem all or any part of the issued and outstanding Series A

Preferred  shares by paying the holders of record thereof,  out of funds legally

available  therefor,  the sum of Ten  Thousand  ($10,000)  dollars for each such

share  to be  redeemed  plus  an  amount  equivalent  to  all  unpaid  quarterly

dividends,  whether or not earned or  declared,  which have  accrued to the date

fixed for redemption and/or redeem all or any part of the issued and outstanding

Series B Preferred shares by paying the holders of record thereof,  out of funds

legally available therefor,  the par value sum of dollars for each such share to

be redeemed plus an amount equivalent to all dividends,  if any, which have been

declared but not paid, to the date fixed for redemption.  In the event that less

than all of the issued and outstanding Series A Preferred shares and/or Series B

Preferred  shares are to be redeemed,  the shares to be redeemed shall be chosen

by lot, pro rata,  or by such  equitable  method as the Board of  Directors  may

determine.  On and after the date fixed for such redemption,  the holders of the

shares so called for redemption shall not be entitled to any dividends and shall

not have any rights or interests as holders of said shares except to receive the

payment  or  payments  herein   designated,   without  interest  thereon,   upon

presentation and surrender of their certificates therefor.

 

<PAGE>

 

         (b) Notwithstanding  anything to the contrary contained in subparagraph

(a) above,  all shares of Series A Preferred  Stock which are outstanding on the

eighth (8th)  anniversary of the date of original  issuance of such shares shall

be redeemed by the Corporation at the Redemption Price set forth in subparagraph

(a) above.  Such required  redemption  shall be made by the  Corporation  within

sixty (60) days after such eighth anniversary.

 

         (c) Notice of every proposed redemption of Series A Preferred Stock and

Series B Preferred Stock shall be mailed by or on behalf of the Corporation,  by

first class registered or certified mail,  postage prepaid,  sent to the holders

of record of the shares to be redeemed  at their  respective  addresses  as they

shall appear on the records of the  Corporation,  not less than thirty (30) days

nor more than  sixty  (60) days  prior to the date  fixed for  redemption,  such

notice  to state  the  Redemption  Price  and the place at which and the date on

which the shares called for redemption will, upon  presentation and surrender of

the certificates of stock evidencing such shares, be redeemed and the Redemption

Price therefor paid.

 

         (d) If notice of  redemption  shall  have  been  given as  hereinbefore

provided,  then,  from and  after  the date  fixed for  redemption  (unless  the

Corporation shall default in making payment of the Redemption Price), the shares

called  for  redemption  shall no longer be  deemed to be  outstanding,  and all

rights of holders of such shares shall cease and terminate,  except the right of

the holders of such shares, upon surrender of certificates  therefor, to receive

the Redemption Price thereof, without interest.

 

         (e) All shares of Series A Preferred Stock and Series B Preferred Stock

issued  and  thereafter  redeemed,   purchased  or  otherwise  acquired  by  the

Corporation shall be retired.

 

         (f) Common Stock is not redeemable by the  Corporation.  Subject to the

requirements of the Corporation's  By-Laws, the Corporation shall have the right

to  acquire  shares of Common  Stock  and  Class A  Preferred  Stock and Class B

Preferred Stock from any person.

 

         3. Liquidation and Dissolution Rights

 

         (a) In the event of any  liquidation,  dissolution,  or  winding up the

affairs of the Corporation,  whether  voluntary or involuntary,  each issued and

outstanding  Series A Preferred share shall entitle the holder of record thereof

to payment at the rate of Ten Thousand  ($10,000) dollars for each share plus an

amount equal to all unpaid quarterly dividends, without interest, whether or not

earned or declared, which have accrued thereon to the date of payment before any

payment or  distribution  of the net assets of the  Corporation  (whether stated

capital or  surplus)  shall be made to or set apart for the holders of record of

the issued and outstanding Series B Preferred shares in respect of said Series B

Preferred shares and of the common shares in respect of said common shares.

 

         (b)  After  setting  part or paying  in full the  preferential  amounts

aforesaid  to the  holders  of record of the  issued  and  outstanding  Series A

Preferred  shares,  each issued and  outstanding  Series B Preferred share shall

entitle  the  holder of record  thereof  to payment at the rate of the par value

thereof plus an amount equal to all dividends,  if any, which have been declared

but not paid,  without  interest,  before any payment or distribution of the net

assets of the  Corporation  (whether stated capital or surplus) shall be made to

or set apart for the  holders  of record of the issued  and  outstanding  common

shares in respect of said common shares.

 

         (c) After  setting  apart or paying  in full the  preferential  amounts

aforesaid  to the  holders  of record of the  issued  and  outstanding  Series B

Preferred shares,  the remaining net assets (whether stated capital or surplus),

if any, shall be distributed  exclusively to the holders of record of the issued

and  outstanding  common  shares,  each  issued  and  outstanding  common  share

entitling  the holder of record  thereof to receive an equal  proportion of said

remaining net assets.

 

         (d) If the net assets of the  Corporation  shall be insufficient to pay

in full the  preferential  amounts  among the  holders of the Series A Preferred

shares as aforesaid,  then each issued and outstanding  Series A Preferred share

shall  entitle the holder of record  thereof to an equal  proportion of said net

assets,  and the  holders  of the  Series B  Preferred  shares and of the common

shares shall in no event be entitled to participate in the  distribution of said

net assets in  respect  of

 

<PAGE>

 

their Series B Preferred shares and their common shares, as the case may be. If,

after any payment in full of the full preferential  amounts among the holders of

Series A Preferred shares as aforesaid,  the net assets of the Corporation shall

be insufficient to pay in full the preferential  amount among the holders of the

Series B Preferred shares as aforesaid,  then each issued and outstanding Series

B  Preferred  share  shall  entitle  the  holder of record  thereof  to an equal

proportion of said net assets,  and the holders of the common shares shall in no

event be  entitled  to  participate  in the  distribution  of said net assets in

respect of their common shares.

 

         (e)  Without  excluding  any other  proceeding  which  does not in fact

effect a liquidation, dissolution, or winding up of the Corporation, a merger or

consolidation of the  Corporation,  a merger or consolidation of the Corporation

into or with any other  Corporation,  a merger of any other Corporation into the

Corporation, participation by the Corporation in a plan for share exchanges with

another Corporation, or a sale, lease, mortgage, pledge, exchange,  transfer, or

other  disposition by the Corporation of all or substantially  all of its assets

shall not be deemed,  for the purposes of this  paragraph,  to be a liquidation,

dissolution, or winding up of the Corporation.

 

         4. Voting Rights

 

         Each  issued and  outstanding  Common  share  shall  entitle the holder

thereof to full  voting  power.  Except as any  provision  of law may  otherwise

require,  no Series A or Series B  Preferred  share  shall  entitle  the  holder

thereof to any voting power, to participate in any meeting of  shareholders,  or

to have notice of any meeting of shareholders.

 

         FIFTH:   No  director  shall  be  liable  to  the  Corporation  or  its

stockholders  for  monetary  damages  for  breach  of his  fiduciary  duty  as a

director,  except for liability:  (i) for any breach of the  director's  duty of

loyalty to the Company or its  stockholders;  (ii) for acts or omissions  not in

good faith which involve  intentional  misconduct or a knowing violation of law;

(iii) under section 174 of the Delaware General Corporation Law; or (iv) for any

transaction in which the director derived an improper personal benefit.

 

         SIXTH:  Members  of the Board of  Directors  may be  elected  either by

written ballot or by voice vote, unless otherwise provided in the By-Laws of the

Corporation.

 

         SEVENTH: The Board of Directors of the Corporation may make By-Laws and

from time to time may alter, amend or repeal By-Laws.

 

         5. This Second Restated  Certificate of Incorporation  was duly adopted

by the Board of Directors of the  Corporation in accordance  with Section 245 of

the General Corporation Law of the State of Delaware.

 

         IN WITNESS  WHEREOF,  the  Corporation  has caused this Second Restated

Certificate of  Incorporation of the Corporation to be executed by its President

this 7th day of June, 2005.

 

                                          LIFETIME BRANDS, INC.

 

 

                                          By: /s/ Jeffrey Siegel

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

                                              Name:   Jeffrey Siegel

                                              Title:  President

[As filed 3-15-2006]