CERTIFICATE OF INCORPORATION
                                       OF
                         HARBOR FLORIDA BANCSHARES, INC.
 
 
                                    ARTICLE I
                                      Name
 
     The  name of the  corporation  is  HARBOR  FLORIDA  BANCSHARES,  INC.  (the
"Corporation").
 
 
                                   ARTICLE II
                                Registered Office
 
     The address of the Corporation's registered office in the State of Delaware
is Corporation Service Company,  1013 Centre Road,  Wilmington,  Delaware 19805.
The  name  of  the  Corporation's  registered  agent  at  such  address  is  the
Corporation Service Company.
 
 
                                   ARTICLE III
                               Purpose and Powers
 
     The purpose of the  Corporation  is to engage in any lawful act or activity
for which a corporation  may be organized  under the General  Corporation Law of
Delaware.
 
 
                                   ARTICLE IV
                                  Capital Stock
 
     SECTION 1. Authorized  Shares. The total number of shares of all classes of
stock which the Corporation shall have authority to issue is 80,000,000  shares,
divided into two classes  consisting of 70,000,000  shares of Common Stock,  par
value $0.001 per share  ("Common  Stock"),  and  10,000,000  shares of Preferred
Stock, par value $0.001 per share  ("Preferred  Stock").  The Board of Directors
shall have  authority by resolution to issue the shares of Preferred  Stock from
time to time on such terms as it may determine and to divide the Preferred Stock
into one or more series and, in connection with the creation of any such series,
to determine and fix by the resolution or resolutions providing for the issuance
of shares thereof:
 
          (a) the distinctive  designation of such series,  the number of shares
     which shall  constitute  such  series,  which  number may be  increased  or
     decreased (but not below the number of shares then  outstanding)  from time
     to time by action
 
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     of the Board of Directors,  and the stated value thereof, if different from
     the par value thereof;
 
          (b) the dividend rate, the times of payment of dividends on the shares
     of such series,  whether  dividends  shall be cumulative,  and, if so, from
     what date or dates,  and the  preference or relation  which such  dividends
     will  bear to the  dividends  payable  on any  shares of stock of any other
     class or any other series of this class;
 
          (c) the  price or prices at  which,  and the terms and  conditions  on
     which, the shares of such series may be redeemed;
 
          (d) whether or not the shares of such series  shall be entitled to the
     benefit of a  retirement  or sinking  fund to be applied to the purchase or
     redemption  of such shares and, if so entitled  the amount of such fund and
     the terms and provisions relative to the operation thereof;
 
          (e)  whether or not the  shares of such  series  shall be  convertible
     into, or exchangeable  for, any other shares of stock of the Corporation or
     any other securities and, if so convertible or exchangeable, the conversion
     price or prices, or the rates of exchange,  and any adjustments thereof, at
     which such  conversion  or  exchange  may be made,  and any other terms and
     conditions of such conversion or exchange;
 
          (f) the rights of the shares of such series in the event of  voluntary
     or  involuntary  liquidation,   dissolution  or  winding  up  or  upon  any
     distribution of the assets of the Corporation;
 
          (g) whether or not the shares of such series shall have  priority over
     or parity  with or be junior to the shares of any other  class or series in
     any respect, or shall be entitled to the benefit of limitations restricting
     (i) the creation of indebtedness of the  Corporation,  (ii) the issuance of
     shares of any  other  class or series  having  priority  over or being on a
     parity with the shares of such series in any respect,  or (iii) the payment
     of dividends  on, the making of other  distributions  in respect of, or the
     purchase  or  redemption  of shares of any other  class or series on parity
     with or ranking  junior to the  shares of such  series as to  dividends  or
     assets,  and the terms of any such  restrictions,  or any other restriction
     with  respect  to  shares of any  other  class or series on parity  with or
     ranking junior to the share of such series in any respect;
 
          (h) whether such series shall have voting  rights,  in addition to any
     voting rights provided by law, and, if so, the terms of such voting rights,
     which may be general or limited; and
 
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          (i)  any  other   powers,   preferences,   privileges,   and  relative
     participating,  optional,  or other special rights of such series,  and the
     qualifications, limitations or restrictions thereof, to the full extent now
     or hereafter permitted by law.
 
     The powers,  preferences  and  relative  participating,  optional and other
special  rights  of each  series of  Preferred  Stock,  and the  qualifications,
limitations or  restrictions  thereof,  if any, may differ from those of any and
all  other  series at any time  outstanding.  All  shares  of any one  series of
Preferred Stock shall be identical in all respects with all other shares of such
series,  except  that  shares of any one series  issued at  different  times may
differ as to the dates from which dividends thereon shall be cumulative.
 
     SECTION 2. Rights of Holders of Common  Stock.  Each holder of Common Stock
shall be entitled  to one vote for each share of Common  Stock held of record on
all matters on which stockholders generally are entitled to vote. Subject to the
provisions of law and the rights of the holders of the  Preferred  Stock and any
other class or series of stock  having a  preference  as to  dividends  over the
Common Stock then outstanding, dividends may be paid on the Common Stock at such
times and in such  amounts as the Board of  Directors  may  determine.  Upon the
dissolution,   liquidation  or  winding  up  of  the   Corporation,   after  any
preferential amounts to be distributed to the holders of the Preferred Stock and
any other class or series of stock  having a  preference  over the Common  Stock
then  outstanding  have been paid or  declared  and set apart for  payment,  the
holders of the Common  Stock  shall be  entitled  to receive  all the  remaining
assets of the Corporation available for distribution to its stockholders ratably
in proportion to the number of shares held by them, respectively.
 
     There shall be no  cumulation of votes for the election of Directors or for
any other purpose.
 
     Every share of Common Stock shall have the same relative  rights as, and be
identical in all respects with, all the other shares of Common Stock.
 
 
                                    ARTICLE V
                              Business Combinations
 
     The provisions of Section 203 of the Delaware  General  Corporation  Law or
any successor provision shall govern the Corporation.
 
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                                   ARTICLE VI
                               Board of Directors
 
     SECTION 1. Number.  The business  and affairs of the  Corporation  shall be
managed  under the  direction  of the Board of Directors  which,  subject to any
right of the holders of any series of Preferred Stock then  outstanding to elect
additional  Directors under specified  circumstances,  shall consist of not less
than five nor more than 15 persons.  The exact  number of  Directors  within the
minimum and maximum  limitations  specified in the preceding  sentence  shall be
fixed  from  time to time by the Board of  Directors  pursuant  to a  resolution
adopted by a majority of the entire Board of Directors.
 
     SECTION 2. Terms.  Beginning with the first annual meeting of  stockholders
held  after  the  filing  of this  Certificate  of  Incorporation,  the Board of
Directors,  other than  those who may be elected by the  holders of any class or
series of stock  having a  preference  over the Common  Stock as to dividends or
upon  liquidation,  shall be divided into three  classes,  class I, class II and
class III,  as nearly  equal in number as  possible.  The terms of office of the
classes of  Directors  elected at the initial  annual  meeting  shall  expire as
follows: the term of office of class I will expire at the 1999 Annual Meeting of
Stockholders,  the term of  office of class II will  expire  at the 2000  Annual
Meeting of  Stockholders  and the term of office of class III will expire at the
2001 Annual  Meeting of  Stockholders.  At each Annual  Meeting of  Stockholders
following such initial classification and election, Directors elected to succeed
those  Directors  whose  terms  expire  shall be elected for a term of office to
expire at the third  succeeding  Annual  Meeting  of  Stockholders  after  their
election.
 
     SECTION 3.  Stockholder  Nomination  of  Director  Candidates.  Stockholder
nominations  for the election of Directors shall be given in the manner provided
in the Bylaws of the Corporation.
 
     SECTION 4. Newly Created Directorships and Vacancies. Subject to the rights
of the  holders of any series of  Preferred  Stock then  outstanding,  Directors
serving  in newly  created  Directorships  resulting  from any  increase  in the
authorized  number of  Directors  shall serve  until the next Annual  Meeting of
Stockholders.  Vacancies  on  the  Board  of  Directors  resulting  from  death,
resignation,  retirement,  disqualification,  removal from office or other cause
shall  be  filled  by a  majority  vote of the  Directors  then in  office,  and
Directors so chosen shall hold office for a term expiring at the Annual  Meeting
of  Stockholders  at which the term of the class to which they have been elected
expires.  No  decrease  in the  number of  Directors  constituting  the Board of
Directors shall shorten the term of any incumbent Director.
 
     SECTION 5 . Removal.  Subject to the rights of the holders of any series of
Preferred  Stock  then  outstanding,  any  Director,  or  the  entire  Board  of
Directors,  may be removed from office at any time,  but only for cause and only
by the  affirmative  vote of the  holders of at least  two-thirds  of the voting
power of all of the shares of the Corporation  entitled to vote generally in the
election of Directors, voting together as a single class.
 
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     SECTION 6. Initial  Directors.  The names and  addresses of the persons who
are to serve as Directors  until the first  annual  meeting of  stockholders  or
until their successors are elected and qualified are as follows:
 
          Name and Address                                 Term
          ----------------                                 ----
 
          Bruce R. Abernethy, Sr.                          2000
          100 S. Second Street
          Fort Pierce, FL  34950
 
          Richard N. Bird                                  2001
          100 S. Second Street
          Fort Pierce, FL 34950
 
          Michael J. Brown, Sr.                            1999
          100 S. Second Street
          Fort Pierce, FL  34950
 
          Richard K. Davis                                 2001
          100 S. Second Street
          Fort Pierce, FL  34950
 
          Edward G. Enns                                   2000
          100 S. Second Street
          Fort Pierce, FL  34950
 
          Frank H. Fee, III                                2001
          100 S. Second Street
          Fort Pierce, FL  34950
 
          Richard B. Hellstrom                             1999
          100 S. Second Street
          Fort Pierce, FL  34950
 
 
                                   ARTICLE VII
                               Stockholder Action
 
     Any action  required or  permitted to be taken by the  stockholders  of the
Corporation  must be  effected  at a duly  called  annual or special  meeting of
stockholders  of the  Corporation  and may not be  effected  by any  consent  in
writing by such stockholders. Except as otherwise required by law and subject to
the rights of the holders of any class of  preferred  stock  having a preference
over the Common Stock as to dividends or upon  liquidation,  special meetings of
stockholders  of the  Corporation  may be called only by the Board of  Directors
pursuant  to a  resolution  approved  by a  majority  of  the  entire  Board  of
Directors.
 
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                                  ARTICLE VIII
                                Bylaw Amendments
 
     The Board of Directors  shall have power to make,  alter,  amend and repeal
the Bylaws of the  Corporation  (except so far as the Bylaws of the  Corporation
adopted by the  stockholders  shall otherwise  provide).  Any Bylaws made by the
Board of Directors under the powers conferred hereby may be altered,  amended or
repealed by the Board of Directors or by the stockholders.  Notwithstanding  the
foregoing and anything  contained in this  Certificate of  Incorporation  or the
Bylaws to the  contrary,  Section 2 of  Article  I and  Sections  1 through 5 of
Article II of the  Bylaws  shall not be  altered,  amended  or  repealed  and no
provision  inconsistent  therewith shall be adopted without the affirmative vote
of the holders of two-thirds of all votes entitled to be cast in the election of
Directors, voting together as a single class.
 
 
                                   ARTICLE IX
                          Purchase of Equity Securities
 
     SECTION 1.  Prevention of "Greenmail".  Any direct or indirect  purchase or
other  acquisition by the  Corporation of any Equity  Security of any class from
any Substantial  Securityholder  who has beneficially  owned such securities for
less than two  years  prior to the date of such  purchase  or any  agreement  in
respect thereof shall,  except as hereinafter  expressly  provided,  require the
affirmative  vote of the holders of at least a majority of all votes entitled to
be cast in the election of Directors,  excluding Voting Stock beneficially owned
by such  Substantial  Securityholder,  voting  together as a single class.  Such
affirmative vote shall be required  notwithstanding the fact that no vote may be
required, or that a lesser percentage may be specified,  by law or any agreement
with any national  securities  exchange,  or otherwise,  but no such affirmative
vote shall be required  with  respect to any  purchase or other  acquisition  of
securities  made as part of a tender or  exchange  offer by the  Corporation  to
purchase  securities  of the same class made on the same terms to all holders of
such securities and complying with the applicable requirements of the Securities
Exchange Act of 1934 and the rules and regulations thereunder (or any subsequent
provisions replacing such Act, rules or regulations).
 
     SECTION 2. Certain Definitions. For the purposes of this Article IX:
 
          (a) A "Person" shall mean any individual,  firm,  corporation or other
     entity.
 
          (b) "Substantial Securityholder" shall mean any person (other than the
     Corporation  or any  corporation of which a majority of any class of Equity
     Security  is owned,  directly or  indirectly,  by the  Corporation)  who or
     which:
 
               (i) is the  beneficial  owner,  directly or  indirectly,  of five
          percent or more of the class or securities to be acquired;
 
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<PAGE>
 
               (ii) is an  Affiliate of the  Corporation  and at any time within
          the two-year period  immediately prior to the date in question was the
          beneficial owner,  directly or indirectly,  of five percent or more of
          the class of securities to be acquired;
 
               (iii) is an assignee or has otherwise  succeeded to any shares of
          the class of securities  to be acquired  which were at any time within
          the  two-year  period  immediately  prior  to  the  date  in  question
          beneficially owned by a Substantial Securityholder, if such assignment
          or succession  shall have  occurred in the course of a transaction  or
          transactions not involving a public offering within the meaning of the
          Securities Act of 1933.
 
          (c) A person  shall be a  "beneficial  owner" of any  security  of any
     class of the Corporation:
 
               (i) which such person or any of its  Affiliates or Associates (as
          hereinafter defined) beneficially owns, directly or indirectly;
 
               (ii) which such person or any of its Affiliates or Associates has
          (A)  the  right  to  acquire   (whether  such  right  is   exercisable
          immediately  or only  after  the  passage  of time),  pursuant  to any
          agreement,  arrangement  or  understanding  or upon  the  exercise  of
          conversion rights, exchange rights, warrants or options, or otherwise,
          or (B) any right to vote  pursuant to any  agreement,  arrangement  or
          understanding; or
 
               (iii) which is beneficially owned, directly or indirectly, by any
          such  person  with  which  such  person  or any of its  Affiliates  or
          Associates has any agreement,  arrangement  or  understanding  for the
          purpose of acquiring, holding, voting or disposing any security of any
          class of the Corporation.
 
          (d) For the purposes of determining  whether a person is a Substantial
     Securityholder  pursuant to  paragraph  (b) of this Section 2, the relevant
     class of  securities  outstanding  shall be  deemed  to  comprise  all such
     securities  deemed  owned  through  application  of  paragraph  (c) of this
     Section 2, but shall not include  other  securities of such class which may
     be issuable  pursuant to any agreement,  arrangement or  understanding,  or
     upon exercise of conversion rights, warrants or options, or otherwise.
 
          (e)  "Affiliate"  or "Associate"  shall have the  respective  meanings
     ascribed to such terms in Rule 12b-2 of the General  Rules and  Regulations
     under the  Securities  Exchange  Act of 1934,  as in effect on December 31,
     1996.
 
          (f) "Equity  Security" shall have the meaning ascribed to such term in
     Section  3(a)(11) of the  Securities  Exchange Act of 1934, as in effect on
     December 31, 1996.
 
                                       7
 
<PAGE>
 
                                    ARTICLE X
                              Acquisition of Stock
 
     Notwithstanding  anything contained in this Certificate of Incorporation to
the contrary:
 
     SECTION 1.  Restriction.  No person shall  directly or indirectly  offer to
acquire or acquire the beneficial ownership of more than 10% of any class of any
equity security of the  Corporation.  This limitation shall not apply to any tax
qualified employee stock benefit plan of the Corporation.
 
     In the event shares are acquired in violation of this Article X, all shares
beneficially  owned by any person in excess of 10% shall be  considered  "excess
shares"  and shall not be  counted as shares  entitled  to vote and shall not be
voted by any person or counted as voting shares in  connection  with any matters
submitted to the stockholders for a vote.
 
     SECTION 2.  Certain  Definitions.  For the  purposes of this Article X, the
following definitions apply:
 
          (a) The term  "person"  includes  an  individual,  a group  acting  in
     concert,  a  corporation,  a  partnership,  an  association,  a joint stock
     company, a trust, and any unincorporated organization or similar company, a
     syndicate or any other group formed for the purpose of  acquiring,  holding
     or disposing of securities of the Corporation.
 
          (b) The term "offer" includes every offer to buy or otherwise acquire,
     solicitation  of an  offer  to  sell,  tender  offer  for,  or  request  or
     invitation for tenders of, a security or interest in a security for value.
 
          (c) The term  "acquire"  includes every type of  acquisition,  whether
     effected by purchase, exchange, operation of law or otherwise.
 
          (d) The term "acting in concert" means (i) knowing  participation in a
     joint activity or conscious  parallel  action towards a common goal whether
     or not pursuant to an express  agreement,  or (ii) a combination or pooling
     of voting or other  interests  in the  securities  of an issuer or a common
     purpose pursuant to any contract, understanding, relationship, agreement or
     other arrangement, whether written or otherwise.
 
                                       8
 
<PAGE>
 
                                   ARTICLE XI
                               Director Liability
 
     No Director of officer  acting in the capacity of a Director or  performing
duties  as  Director  shall  be  personally  liable  to the  Corporation  or any
stockholder  for monetary  damages for a breach of fiduciary duty as a Director,
except for any matter in respect of which such  Director or officer  acting as a
Director  shall be liable  under  Section  174 of Title 8 of the  Delaware  Code
(relating to the Delaware Corporation Law) or any amendment thereto or successor
provision  thereto or shall be liable by reason that, in addition to any and all
other  requirements  for such liability,  he (i) shall have breached his duty of
loyalty to the  Corporation  or its  stockholders,  (ii) shall not have acted in
good  faith or, in failing to act,  shall not have  acted in good  faith,  (iii)
shall  have  acted in a manner  involving  intentional  misconduct  or a knowing
violation of law or, in failing to act,  shall have acted in a manner  involving
intentional  misconduct or a knowing violation of law or (iv) shall have derived
an improper personal benefit.  Neither the Amendment nor repeal of this Article,
nor  the  adoption  of  any  provision  of  the  Certificate  of   Incorporation
inconsistent  with this  Article,  shall  eliminate or reduce the effect of this
Article  in respect of any  matter  occurring,  or any cause of action,  suit or
claim,  that,  but for  this  Article,  would  accrue  or  arise,  prior to such
amendment, repeal or adoption of an inconsistent provision.
 
 
                                   ARTICLE XII
                   Amendments to Certificate of Incorporation
 
     Notwithstanding  any other  provisions of this Certificate of Incorporation
or the Bylaws of the  Corporation  (and  notwithstanding  the fact that a lesser
percentage  may be specified by law, this  Certificate of  Incorporation  or the
Bylaws of the  Corporation),  the  affirmative  vote of the  holders of at least
two-thirds of all votes entitled to be cast in the election of Directors, voting
together as a single class,  shall be required to amend or repeal,  or adopt any
provisions  inconsistent with, Articles V, VI, VII, VIII, IX or this Article XII
of this Certificate of Incorporation.
 
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<PAGE>
 
                                  ARTICLE XIII
                          Certain Business Combinations
 
     SECTION 1. Vote Required for Certain Business Combinations.
 
          (a) Higher Vote for Certain  Business  Combinations.  Unless otherwise
     required by law, in addition  to any  affirmative  vote  required by law or
     this Certificate of  Incorporation  or the Bylaws of the  Corporation,  and
     except as otherwise expressly provided in Section 2 of this Article XIII, a
     Business  Combination  with, or proposed by or on behalf of, any Interested
     Stockholder or any Affiliate or Associate of any Interested  Stockholder or
     any person who after such  Business  Combination  would be an  Affiliate or
     Associate of such Interested Stockholder, shall require the approval of the
     Board of  Directors  and the  affirmative  vote of the  holders of at least
     66-2/3% of the voting power of the then  outstanding  Voting Stock which is
     not owned by the  Interested  Stockholder  or any Affiliate or Associate of
     such  Interested  Stockholder.  Such  affirmative  vote  shall be  required
     notwithstanding  the fact  that no vote may be  required,  or that a lesser
     percentage  may be specified,  by law or in any agreement with any national
     securities exchange or otherwise.
 
          (b)   Definition  of  "Business   Combination".   The  term  "Business
     Combination" as used in this Article XIII shall mean:
 
               (i)  any  merger,   consolidation   or  share   exchange  of  the
          Corporation or any Subsidiary  with (A) any Interested  Stockholder or
          (B)  any  other  corporation  (whether  or not  itself  an  Interested
          Stockholder) which is, or after such merger or consolidation would be,
          an Affiliate or Associate of an Interested Stockholder;
 
               (ii) any sale, lease,  exchange,  mortgage,  pledge,  transfer or
          other  disposition (in one  transaction or a series of  transactions),
          except  proportionately  as a stockholder of such  corporation,  to or
          with any  Interested  Stockholder or any Affiliate or Associate of any
          Interested  Stockholder  of  any  assets  of  the  Corporation  or any
          Subsidiary  having an  aggregate  Market Value equal to 10% or more of
          either the aggregate market value of all the assets of the Corporation
          determined on a  consolidated  basis or the aggregate  market value of
          all of the outstanding stock of the Corporation;
 
               (iii) any  transaction  which results in the issuance or transfer
          by the  Corporation or any Subsidiary (in one  transaction or a series
          of   transactions)  of  any  securities  of  the  Corporation  or  any
          Subsidiary to any Interested Stockholder or any Affiliate or Associate
          of any  Interested  Stockholder  except (A) pursuant to the  exercise,
          exchange or conversion of securities exercisable for, exchangeable for
          or convertible into stock of
 
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<PAGE>
 
          the Corporation or any Subsidiary  which  securities were  outstanding
          prior to the time the Interested Stockholder became such, (B) pursuant
          to a dividend or distribution paid or made, or the exercise,  exchange
          or conversion  of  securities  exercisable  for,  exchangeable  for or
          convertible  into stock of the  Corporation  or any  Subsidiary  which
          security is  distributed  pro rata to all holders of a class or series
          of  stock of the  Corporation  subsequent  to the time the  Interested
          Stockholder  became  such,  (C)  pursuant to an exchange  offer by the
          Corporation to purchase stock made on the same terms to all holders of
          such  stock  or  (D)  any   issuance  or  transfer  of  stock  by  the
          Corporation,  provided, however, that in no case under (B) through (D)
          above  shall  there be an  increase  in the  Interested  Stockholder's
          proportionate  share  of the  stock  of any  class  or  series  of the
          Corporation or of the Voting Stock of the Corporation;
 
               (iv) the adoption of any plan or proposal for the  liquidation or
          dissolution of the  Corporation  or any  Subsidiary  proposed by or on
          behalf of an Interested  Stockholder  or any Affiliate or Associate of
          any Interested Stockholder; or
 
               (v) any  reclassification  of securities  (including  any reverse
          stock split), or recapitalization  of the Corporation,  or any merger,
          consolidation  or share  exchange of the  Corporation  with any of its
          Subsidiaries or any other transaction  (whether or not with or into or
          otherwise involving an Interested  Stockholder) which in any such case
          has  the  effect,   directly  or   indirectly,   of   increasing   the
          proportionate  share of the outstanding  shares of any class of equity
          or convertible  securities of the Corporation or any Subsidiary  which
          is directly or indirectly  owned by any Interested  Stockholder or any
          Affiliate or Associate of any Interested Stockholder;
 
               (vi) any transaction  involving the Corporation or any Subsidiary
          which has the  effect,  directly  or  indirectly,  of  increasing  the
          proportionate   share  of  the  stock  of  any  class  or   securities
          convertible  into  the  stock  of any  class  or  series  owned by the
          Interested Stockholder of the Corporation or of any Subsidiary, except
          as a result of immaterial  changes due to fractional share adjustments
          or as a result of any  purchase or  redemption  of any shares of stock
          not caused, directly or indirectly, by the Interested Stockholder; or
 
               (vii) any receipt by the  Interested  Stockholder of the benefit,
          directly or indirectly  (except  proportionately  as a stockholder  of
          such  corporation) of any loans,  advances,  guarantees,  pledges,  or
          other  financial  benefits  (other than those  expressly  permitted in
          subparagraphs  (i)-(vi)  above) provided by or through the Corporation
          or any Subsidiary.
 
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<PAGE>
 
     SECTION 2. When Higher Vote is Not Required. The provisions of Section 1 of
this  Article  XIII  shall  not  be  applicable  to  any   particular   Business
Combination,  and such Business  Combination shall require only such affirmative
vote as is  required  by law and any other  provisions  of this  Certificate  of
Incorporation  or the  bylaws  of  the  Corporation,  if  all of the  conditions
specified in either the following paragraphs (a) or (b) are met:
 
          (a) Approval by  Disinterested  Directors.  The  Business  Combination
     shall have been approved by a majority of the Disinterested Directors.
 
          (b) Price and Procedure Requirements.  All of the following conditions
     shall have been met:
 
               (1) Minimum  Price  Requirements.  With respect to every class or
          series  of  Voting  Stock  of the  Corporation,  whether  or  not  the
          Interested Stockholder has previously acquired beneficial ownership of
          any shares of such class or series of Voting Stock:
 
                    (i) The  aggregate  amount  of the cash and the Fair  Market
               Value  as of  the  date  of  the  consummation  of  the  Business
               Combination of  consideration  other than cash to be received per
               share by holders  of Common  Stock in such  Business  Combination
               shall be at least equal to the higher of the following:
 
                         (A)  (if   applicable)  the  highest  per  share  price
                    (including  any brokerage  commissions,  transfer  taxes and
                    soliciting  dealers'  fees)  paid  by or on  behalf  of  the
                    Interested  Stockholder  for any  share of  Common  Stock in
                    connection   with   the   acquisition   by  the   Interested
                    Stockholder  of  beneficial  ownership  of  shares of Common
                    Stock (1) within the two-year  period  immediately  prior to
                    the  first  public  announcement  of  the  proposal  of  the
                    Business  Combination (the  "Announcement  Date"), or (2) in
                    the  transaction or series of related  transactions in which
                    it became an Interested Stockholder, whichever is higher, in
                    either  case as adjusted  for any  subsequent  stock  split,
                    stock dividend, subdivision or reclassification with respect
                    to Common Stock; and
 
                         (B) the Fair Market  Value per share of Common Stock on
                    the Announcement Date or on the date on which the Interested
                    Stockholder  became an Interested  Stockholder  (such latter
                    date  is   referred   to  in  this   Article   XIII  as  the
                    "Determination Date"),  whichever is higher, as adjusted for
                    any subsequent stock split, stock dividend,
 
                                       12
 
<PAGE>
 
                    subdivision  or  reclassification  with  respect  to  Common
                    Stock.
 
                    (ii) The  aggregate  amount of the cash and the Fair  Market
               Value  as of  the  date  of  the  consummation  of  the  Business
               Combination of  consideration  other than cash to be received per
               share by  holders  of  shares  of any  other  class or  series of
               outstanding  Voting  Stock shall be at least equal to the highest
               of the following (it being intended that the requirements of this
               paragraph  (b)(ii)  shall be required  to be met with  respect to
               every class or series of outstanding Voting Stock, whether or not
               the Interested  Stockholder has previously acquired any shares of
               a particular class or series of Voting Stock):
 
                         (A)  (if   applicable)  the  highest  per  share  price
                    (including  any brokerage  commissions,  transfer  taxes and
                    soliciting  dealers'  fees)  paid  by or on  behalf  of  the
                    Interested  Stockholder  for any  shares  of such  class  or
                    series of Voting Stock in connection with the acquisition by
                    the Interested  Stockholder of beneficial  ownership of such
                    shares (1) within the two-year period  immediately  prior to
                    the Announcement Date, or (2) in the transaction in which it
                    became an Interested  Stockholder,  whichever is higher,  in
                    either  case as adjusted  for any  subsequent  stock  split,
                    stock dividend, subdivision or reclassification with respect
                    to such class or series of Voting Stock;
 
                         (B) (if applicable) the highest preferential amount per
                    share to which the holders of shares of such class or series
                    of Voting Stock are  entitled in the event of any  voluntary
                    or involuntary liquidation, dissolution or winding up of the
                    Corporation; and
 
                         (C) the Fair  Market  Value per share of such  class or
                    series of Voting  Stock on the  Announcement  Date or on the
                    Determination  Date,  whichever is higher, in either case as
                    adjusted for any  subsequent  stock split,  stock  dividend,
                    subdivision or  reclassification  with respect to such class
                    or series of Voting Stock.
 
                                       13
 
<PAGE>
 
               (2) Other Requirements.
 
                    (i)  The  consideration  to  be  received  by  holders  of a
               particular class or series of outstanding Voting Stock (including
               Common  Stock)  shall  be in  cash  or in the  same  form  as the
               Interested  Stockholder  has  previously  paid for shares of such
               class or series of Voting Stock.  If the  Interested  Stockholder
               has paid for  shares of any class or series of Voting  Stock with
               varying forms of  consideration,  the form of  consideration  for
               such class or series of Voting  Stock shall be either cash or the
               form used to acquire the  largest  number of shares of such class
               or series of Voting Stock previously acquired by it.
 
                    (ii)  After  such  Interested   Stockholder  has  become  an
               Interested  Stockholder  and  prior to the  consummation  of such
               Business Combination: (A) except as approved by a majority of the
               Disinterested  Directors,  there  shall  have been no  failure to
               declare and pay at the regular date  therefor  any full  periodic
               dividends   (whether  or  not   cumulative)  on  any  outstanding
               Preferred  Stock;  (B) there shall have been (1) no  reduction in
               the annual rate of dividends  paid on the Common Stock (except as
               necessary to reflect any subdivision of the Common Stock), except
               as approved by a majority of the Disinterested Directors, and (2)
               an  increase in such annual rate of  dividends  as  necessary  to
               reflect any reclassification (including any reverse stock split),
               recapitalization, reorganization or any similar transaction which
               has the effect of reducing  the number of  outstanding  shares of
               the Common  Stock,  unless the failure so to increase such annual
               rate is approved by a majority  of the  Disinterested  Directors;
               and (C) such  Interested  Stockholder  shall  have not become the
               beneficial owner of any additional  shares of Voting Stock except
               as part  of the  transaction  which  results  in such  Interested
               Stockholder  becoming an Interested  Stockholder  or by virtue of
               proportionate stock splits or stock dividends.
 
                    (iii)  After  such  Interested  Stockholder  has  become  an
               Interested  Stockholder,  such Interested  Stockholder  shall not
               have  received  the  benefit,   directly  or  indirectly  (except
               proportionately  as  a  stockholder),  of  any  loans,  advances,
               guarantees,  pledges  or other  financial  assistance  or any tax
               credits or other tax  advantages  provided by the  Corporation or
               any Subsidiary,  whether in anticipation of or in connection with
               such Business Combination or otherwise.
 
                                       14
 
<PAGE>
 
                    (iv)  A  proxy  or  information   statement  describing  the
               proposed Business Combination and complying with the requirements
               of the  Securities  Exchange  Act  of  1934  and  the  rules  and
               regulations  thereunder (or any subsequent  provisions  replacing
               such  Act,  rules  or   regulations)   shall  be  mailed  to  the
               stockholders  of the  Corporation  at least 30 days  prior to the
               consummation  of such Business  Combination  (whether or not such
               proxy or information  statement is required to be mailed pursuant
               to such Act or subsequent provisions).
 
                    (v)  After  such   Interested   Stockholder  has  become  an
               Interested  Stockholder,  such Interested  Stockholder  shall not
               have  made any  major  change in the  Corporation's  business  or
               capital  structure  without  the  approval  of a majority  of the
               Disinterested Directors.
 
     SECTION 3. Certain Definitions. For the purpose of this Article XIII:
 
          (a) A  "person"  shall  mean  any  individual  or  firm,  corporation,
     partnership,  limited  partnership,  joint venture,  trust,  unincorporated
     association,   government  or  any  political   subdivision  or  agency  or
     instrumentality of a government or other entity and shall include any group
     comprised  of any person and any other  person with whom such person or any
     Affiliate  or Associate of such person has any  agreement,  arrangement  or
     understanding,  directly  or  indirectly,  for the  purpose  of  acquiring,
     holding, voting or disposing of Voting Stock.
 
          (b)  "Interested  Stockholder"  shall mean any person  (other than the
     Corporation or any Subsidiary) who or which:
 
               (i) is the beneficial  owner,  directly or indirectly,  of Voting
          Stock  entitled to cast more than 15% of the votes in the  election of
          Directors;  is an Affiliate or Associate of the Corporation and at any
          time  within  the  two-year  period  immediately  prior to the date in
          question was the beneficial owner,  directly or indirectly,  of 15% or
          more of the  combined  voting  power  of the then  outstanding  Voting
          Stock; or
 
               (ii) is an assignee of or has  otherwise  succeeded to any shares
          of Voting  Stock  which were at any time  within the  two-year  period
          immediately  prior to the date in question  beneficially  owned by any
          Interested  Stockholder,  if such assignment or succession  shall have
          occurred in the course of a transaction or series of transactions  not
          involving a public  offering  within the meaning of the Securities Act
          of 1933.
 
                                       15
 
<PAGE>
 
          (c) A person shall be a "beneficial owner" of any Voting Stock:
 
               (i) which  such  person or any of its  Affiliates  or  Associates
          beneficially owns, directly or indirectly;
 
               (ii) which such person or any of its Affiliates or Associates has
          (A)  the  right  to  acquire   (whether  such  right  is   exercisable
          immediately  or only  after  the  passage  of time),  pursuant  to any
          agreement,  arrangement  or  understanding  or upon  the  exercise  of
          conversion rights, exchange rights, warrants or options, or otherwise,
          or (B)  the  right  to vote  or  direct  the  voting  pursuant  to any
          agreement,  arrangement or understanding,  or (C) the right to dispose
          of or direct the disposition of pursuant to any agreement, arrangement
          or understanding; or
 
               (iii) which is beneficially owned, directly or indirectly, by any
          other  person  with  which  such  person or any of its  Affiliates  or
          Associates has any agreement,  arrangement  or  understanding  for the
          purpose of  acquiring,  holding,  voting or disposing of any shares of
          Voting Stock.
 
          (d) For the purpose of  determining  whether a person is an Interested
     Stockholder  pursuant  to  paragraph  (b) of this  Section 3, the number of
     shares of Voting Stock deemed to be outstanding shall include shares deemed
     owned through  application of paragraph (c) of this Section 3 but shall not
     include any other shares of Voting Stock which may be issuable  pursuant to
     any agreement, arrangement or understanding, or upon exercise of conversion
     rights, warrants or options, or otherwise.
 
          (e)  "Affiliate"  or "Associate"  shall have the  respective  meanings
     ascribed to such terms in Rule 12b-2 of the General  Rules and  Regulations
     under the  Securities  Exchange  Act of 1934,  as in effect on December 31,
     1996,  except that the Corporation or any Subsidiary shall not be deemed to
     be an Affiliate or an Associate of any Interested Stockholder.
 
          (f)  "Subsidiary"  means any  corporation  of which a majority  of any
     class  of  equity  security  is  owned,  directly  or  indirectly,  by  the
     Corporation;  provided, however, that for the purposes of the definition of
     Interested  Stockholder  set forth in paragraph  (b) of this Section 3, the
     term "Subsidiary" shall mean only a corporation of which a majority of each
     class  of  equity  security  is  owned,  directly  or  indirectly,  by  the
     Corporation.
 
          (g)  "Disinterested  Director"  means  any  member  of  the  Board  of
     Directors  of the  Corporation  who is  unaffiliated  with  the  Interested
     Stockholder  and was a member of the Board of  Directors  prior to the time
     that the Interested
 
                                       16
 
<PAGE>
 
     Stockholder  became  an  Interested  Stockholder,  and any  successor  of a
     Disinterested   Director  who  is  not  an  Affiliate  of  the   Interested
     Stockholder  and is  recommended to succeed a  Disinterested  Director by a
     majority of Disinterested Directors then serving on the Board of Directors.
 
          (h) "Fair Market Value" means:  (i) in the case of stock,  the highest
     closing sale price during the 30-day period immediately  preceding the date
     in  question  of a share of such stock on the  Composite  Tape for New York
     Stock  Exchange-Listed  Stocks,  or,  if such  stock is not  quoted  on the
     Composite  Tape, on such exchange,  or, if such stock is not listed on such
     exchange,  on the principal United States  securities  exchange  registered
     under the  Securities  Exchange  Act of 1934 on which such stock is listed,
     or,  if  such  stock  is not  listed  on  such  exchange,  on the  National
     Association  of  Securities  Dealers,   Inc.  Automated  Quotations  System
     ("NASDAQ")  National  Market  ("NMS"),  or if such stock is not included on
     NASDAQ-NMS,  the highest  closing bid quotation  with respect to a share of
     such stock during the 30-day  period  preceding the date in question on the
     NASDAQ or any system then in use, or if no such  quotations  are available,
     the fair  market  value on the date in question of a share of such stock as
     determined by the Board of Directors in good faith; and (ii) in the case of
     property  other than cash or stock,  the fair market value of such property
     on the date in question as  determined  by the Board of  Directors  in good
     faith.
 
               (i) In the  event  of  any  Business  Combination  in  which  the
          Corporation survives,  the phrase "consideration other than cash to be
          received"  as used in  paragraphs  (b)(1)(i)  and (ii) of Section 2 of
          this Article XIII shall  include the shares of Common Stock and/or the
          shares  of any  other  class or series  of  outstanding  Voting  Stock
          retained by the holders of such shares.
 
               (ii) "Voting Stock" means the then outstanding  shares of capital
          stock of the Corporation entitled to vote generally in the election of
          Directors.
 
     SECTION 4. Powers of the Board of Directors. A majority of the Directors of
the  Corporation  shall have the power and duty to determine for the purposes of
this Article XIII, on the basis of  information  known to them after  reasonable
inquiry (a)  whether a person is an  Interested  Stockholder,  (b) the number of
shares of Voting Stock beneficially  owned by any persons,  (c) whether a person
is an Affiliate or Associate  of another,  and (d) whether the  requirements  of
Section 2(b) have been met.
 
     SECTION 5. No Effect on Fiduciary  Obligations of Interested  Stockholders.
Nothing  contained  in this  Article  XIII shall be  construed  to  relieve  any
Interested Stockholder from any fiduciary obligation imposed by law.
 
                                       17
 
<PAGE>
 
     SECTION 6. Amendment,  Repeal, Etc.  Notwithstanding any other provision of
this  Certificate  of  Incorporation  or  the  bylaws  of the  Corporation  (and
notwithstanding  the fact that a lesser percentage or separate class vote may be
specified  by law,  this  Certificate  of  Incorporation  or the  bylaws  of the
Corporation),  any  proposal to amend or repeal this  Article  XIII or adopt any
provision of this  Certificate of  Incorporation  inconsistent  with it which is
proposed  by or on behalf  of an  Interested  Stockholder  or any  Affiliate  or
Associate of such Interested  Stockholder  shall require the affirmative vote of
the holders of at least  66-2/3% of the Voting Stock  entitled to be cast at the
election  of  Directors,  excluding  Voting  Stock  beneficially  owned  by such
Interested  Stockholder,  unless such amendment,  repeal or adoption is declared
advisable by the affirmative vote of two thirds of the entire Board of Directors
and a majority of the Disinterested Directors.
 
 
                                   ARTICLE XIV
                                 Indemnification
 
     Indemnification  shall be provided for to the fullest extent  authorized in
the  Bylaws.  Any  repeal or  amendment  of this  Article  XIV shall not  effect
indemnification  provided  under this Article with respect to any state of facts
existing at or before the time of such  amendment and any  proceeding,  whenever
brought, based in whole or in part upon any such state of facts.
 
 
                                   ARTICLE XV
                                  Incorporator
 
     The name and mailing  address of the  incorporator  of the  Corporation  is
_____________,   Corporation  Service  Company,   1090  Vermont  Avenue,   N.W.,
Washington, D.C. 20005.
 
     The undersigned  being the sole  incorporator  hereinbefore  named, for the
purpose of forming a corporation  pursuant to the General Corporation Law of the
State of Delaware, makes this certificate,  hereby declaring and certifying that
this is my act and deed and the facts herein  stated are true,  and  accordingly
have hereunto set my hand this 6th day of November, 1997.
 
 
 
                                        /s/
                                        ----------------------------------------
                                                                  , Incorporator