RESTATED ARTICLES OF INCORPORATION
 
                           QUEST RESOURCE CORPORATION
                           --------------------------
 
     THESE  RESTATED  ARTICLES OF  INCORPORATION  correctly  set forth,  without
change,  the  provisions  of the  Articles of  Incorporation  of Quest  Resource
Corporation (the "Corporation") as previously amended and supersede the original
Articles of Incorporation and all amendments thereto.
 
                                    ARTICLE I
                                      NAME
                                      ----
 
     The name of the Corporation is:
 
                           Quest Resource Corporation
 
                                   ARTICLE II
                                    DURATION
                                    --------
 
     The Corporation shall have perpetual existence.
 
                                   ARTICLE III
                                     PURPOSE
                                     -------
 
     The purpose for which the Corporation is organized shall be to transact all
lawful business for which  corporations may be organized pursuant to the laws of
the State of Nevada.
 
                                   ARTICLE IV
                                  CAPITAL STOCK
                                  -------------
 
     Section 1. Classes and Shares  Authorized.  The authorized capital stock of
the Corporation  shall be 380,000,000  shares of Common Stock,  $.001 par value,
and 50,000,000 shares of Preferred Stock, $.001 par value.
 
     Section 2. Preferred  Stock.  Shares of Preferred Stock may be divided into
such series as may be established, from time to time, by the Board of Directors.
The Board of  Directors,  from time to time,  may fix and determine the relative
rights  and  preferences  of  the  shares  of any  series  so  established.  The
authorized  series of Preferred  Stock  designated  as the "Series A Convertible
Preferred  Stock"  consists  of  500,000  shares,  with  the  following  powers,
preferences, rights, qualifications, limitations, and restrictions:
 
          (a) Voting Rights.
 
               (i) If dividend  payments on the Series A  Convertible  Preferred
          Stock are in default for six or more  consecutive  quarterly  periods,
          the Series A Convertible  Preferred  Stock (1) must be given notice of
          shareholders' meetings; and (2) immediately may elect, as a class, the
          largest number of directors constituting a minority of the Board of
 
 
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          Directors.  In such event, the Common Stock will retain only the right
          to elect,  as a class,  the remaining  directors.  These voting rights
          will continue until all dividends  accrued on the Series A Convertible
          Preferred  Stock have been paid. At such time, the right of the Series
          A  Convertible  Preferred  Stock to vote in the  election of directors
          shall cease,  and  exclusive  voting  rights  (including  the right to
          notice  shareholders'  meetings)  shall  revert to the  Common  Stock.
          However, if further defaults in the payment of dividends on the Series
          A Convertible  Preferred Stock shall occur,  the voting rights granted
          to the Series A Convertible Preferred Stock under this provision shall
          be renewed.
 
               (ii) If the Series A Convertible  Preferred Stock acquires voting
          rights under this provision, a special meeting of the shareholders for
          the election of directors  may be called by any officer or director of
          the Corporation,  in accordance with the bylaws.  In addition,  such a
          meeting  must be called  immediately  by the  Secretary  upon  written
          request  of the  record  holders  of at least  25% of the  outstanding
          Series A Convertible Preferred Stock. For this purpose, any officer or
          holder of Series A Convertible Preferred Stock shall be granted access
          on demand to the Corporation's stock records and shareholder lists.
 
               (iii) At any such special  meeting (or at any annual meeting held
          while the Series A Convertible Preferred Stock has the voting power to
          elect  directors)  the holders of a majority  of the then  outstanding
          shares of Series A Convertible  Preferred Stock,  present in person or
          by proxy, shall constitute a quorum for the election of directors.  If
          the Common Stock fails to elect the number of directors to which it is
          entitled,  additional  directors  may be  appointed  by the  directors
          elected by the Series A Convertible Preferred Stock.
 
               (iv)  The  directors   elected  or  appointed  by  the  Series  A
          Convertible  Preferred Stock,  together with the directors  elected at
          such meeting by the Common Stock,  if any,  shall  constitute the duly
          elected Board of Directors of the Corporation. As soon as the Series A
          Convertible  Preferred  Stock is no longer  entitled to voting  rights
          under this provision because all dividends are paid in full, the terms
          of office  of all  directors  appointed  by the  Series A  Convertible
          Preferred Stock shall immediately terminate and the Board of Directors
          thereafter  shall  constitute  only those  directors  appointed by the
          Common Stock.
 
          (b) Dividends.
 
               (i) Right to Dividends. Holders of shares of Series A Convertible
          Preferred  Stock shall be entitled to receive  dividends at the annual
          rate of 10% of the  purchase  price of $10.00 per share,  payable on a
          quarterly  basis at $0.25 per share  commencing  on May 31, 1999,  and
          thereafter  August 31,  November  30, and  February  28, of each year,
          except that if any such date is not a Business  Day,  which shall mean
          any day except a Saturday, Sunday or day on which banking institutions
 
 
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          are  authorized  or  required  by law to close in the State of Kansas,
          then  such  payments  need not be made on such date but may be made on
          the next succeeding  Business Day with the same force and effect as if
          made on the date fixed therefor,  without interest  ("Dividend Payment
          Date").  Any payment of dividends  declared and due under this Section
          2(b) with  respect  to any  shares of Series A  Convertible  Preferred
          Stock shall be payable out of any funds legally  available  therefore,
          prior and in  preference  to any dividend  payment with respect to the
          Common Stock.  Such payments shall be made payable to the order of the
          record  holder of such shares at the  address  for such record  holder
          shown  on the  stock  records  maintained  by or for  the  Corporation
          ("Corporation's  Records"),  which  check  shall be  mailed  by United
          States first class mail,  postage  prepaid.  Any such payment shall be
          deemed  to have  been  paid by the  Corporation  on the date that such
          payment is  deposited  in the United  States mail as  provided  above;
          provided,  that in the event  the  check or other  medium by which any
          payment shall be made shall prove not to be immediately collectible on
          the date of  payment,  such  payment  shall not be deemed to have been
          made  until  cash in the  amount of such  payment  shall  actually  be
          received by the person entitled to receive such payment.
 
               (ii) Cumulative Rights. The right to receive such dividends shall
          be cumulative so that if such  dividends  shall not have been declared
          and paid with  respect to any such  period,  the right to receive such
          dividend  with respect to such period shall  continue and  accumulate,
          and be added to the right to receive dividends in subsequent  periods.
          Any such  delinquent  dividends  shall bear  interest at 15% per annum
          from the Dividend  Payment  Date,  as defined in  Subsection  2(b)(i),
          until the date such  dividend  is paid.  If,  however,  the  shares of
          Series A Convertible Preferred Stock are called for redemption, as set
          forth herein,  on a redemption day falling between a dividend  payment
          record date and the dividend  payment date, in lieu of receiving  such
          dividend on the dividend payment date fixed therefore,  the holders of
          the Series A Convertible  Preferred  Stock to be redeemed will receive
          such  dividend  payment  together  with all other  accrued  and unpaid
          dividends on the date fixed for redemption  (unless such holders elect
          to convert such shares as provided for herein).  In any case where the
          date  fixed for any  dividend  or other  payment  with  respect to the
          Series A Preferred  Stock  shall not be a Business  Day, as defined in
          Subsection  2(b)(i),  then such payments need not be made on such date
          but may be made on the  next  succeeding  Business  Day  with the same
          force  and  effect  as if made on the  date  fixed  therefor,  without
          interest.
 
               (iii) Priority of Dividends.  The Series A Convertible  Preferred
          Stock shall have  priority as to  dividends  over the Common Stock and
          any other class or series of Preferred Stock hereafter issued. So long
          as  any  shares  of the  Series  A  Convertible  Preferred  Stock  are
          outstanding,  no dividend or distribution may be declared, paid or set
          apart  for  payment  on the  Common  Stock or any  other  stock of the
          Corporation, or may any shares of stock ranking junior to the Series A
          Preferred Stock be purchased,  redeemed or acquired by the Corporation
          unless all accrued and unpaid  dividends  on the Series A  Convertible
          Preferred Stock have been paid or declared and set apart for payment.
 
 
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          Whenever  all accrued  dividends  are not paid in full on the Series A
          Preferred  Stock,  all  dividends  declared  on the Series A Preferred
          Stock will be declared or made pro-rata so that all shares of Series A
          Convertible   Preferred  Stock  receive  the  same  pro-rata  dividend
          payment.
 
               (iv)   Accumulated   Dividends.   The  amount  of  any  dividends
          "accumulated" on any share of Series A Convertible  Preferred Stock at
          any  Dividend  Payment  Date shall be deemed to be that  amount of any
          unpaid  dividends  accrued  thereon  to and  excluding  such  Dividend
          Payment Date regardless of whether  declared.  The amount of dividends
          "accumulated" on any share of Series A Convertible  Preferred Stock at
          any date other than a Dividend Payment Date shall be calculated as the
          amount of any unpaid  dividends  accrued  thereon to and excluding the
          last preceding  Dividend Payment Date regardless of whether  declared,
          plus an  interest  penalty  of 15% per annum for the  period  from and
          including such last preceding  Dividend  Payment Date actually paid to
          and excluding the date as of which the calculation is made (regardless
          of whether declared).  The amount of dividends payable for the initial
          dividend  period and any period  shorter than a full  dividend  period
          will be computed on the basis of a 360-day year.
 
               (v)  Dividends  in Arrears.  Dividends in arrears with respect to
          the outstanding shares of Series A Convertible  Preferred Stock may be
          declared  and paid or set apart for  payment at any time and from time
          to time,  without  reference to any regular  Dividend Payment Date, to
          holders of record as they appear on the  Corporation's  Records at the
          close of business on such  Record Date as the Board of  Directors  may
          establish with respect to the payment of such payment in arrears.
 
               (vi)  Other  Dividends.  Holders  of  the  Series  A  Convertible
          Preferred Stock will not be entitled to any participating dividends or
          other distributions,  whether payable in cash, property or securities,
          in excess of the full cumulative dividends described above.
 
          (c) Conversion.
 
               (i) Right to Convert.  Upon the occurrence of a Conversion  Event
          (as defined below), each share of Series A Convertible Preferred Stock
          may,  at the option of the holder of record,  be  converted  into such
          number of shares of Common Stock as is determined under the Conversion
          Ratio (as defined below).
 
               (ii) Conversion  Events. A Conversion  Event,  which triggers the
          right to convert the Series A Convertible  Preferred Stock into Common
          Stock, will be deemed to have occurred in the following circumstances:
 
 
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                    a. Upon written election to convert given to the Corporation
               at any  time by the  holder  of a share of  Series A  Convertible
               Preferred Stock.
 
                    b. Upon written  election to convert given to the holders of
               the  shares  of  Series  A  Convertible  Preferred  Stock  by the
               Corporation  after  the  expiration  of one  (1)  year  from  the
               issuance date of such shares.
 
               (iii)  Conversion  Ratio.  Upon the  occurrence  of a  Conversion
          Event,  each share of Series A  Convertible  Preferred  Stock shall be
          converted into 1.6 shares of Common Stock, adjusted as follows:
 
                    a.  Fractional  Shares.  The  Corporation  shall  not  issue
               fractional  shares of Common  Stock upon  conversion  of Series A
               Convertible Preferred Stock and each such shares must be entirely
               converted,  if at all,  but,  instead of any  fraction of a share
               which may otherwise be issuable, shall issue one whole share.
 
                    b. Adjustment for Internal  Combination or Consolidations of
               Common Stock. If the Corporation declares a dividend or makes any
               other  distribution  on any  capital  stock  of  the  Corporation
               payable  in  Common  Stock,  or the  Corporation  subdivides  the
               outstanding  shares of  Common  Stock  into a  greater  number of
               shares,   then   the   Conversion   Rate   shall   be   increased
               proportionately.  If the  Corporation  combines  the  outstanding
               shares of Common  Stock into a smaller  number of shares then the
               Conversion   Rate  shall  be   decreased   proportionately.   The
               Conversion  Rate shall be  adjusted as of the record date for the
               distribution, subdivision or combination.
 
                    c. Adjustments for External Combination or Consolidations of
               Common Stock. If any capital  reorganization or  reclassification
               of  the  Common  Stock,  any   consolidation  or  merger  of  the
               Corporation  with  another  corporation,  or the  sale  of all or
               substantially  all  of  the   Corporation's   assets  to  another
               corporation  shall  be  effected  in such a way that  holders  of
               Common Stock shall be entitled to receive stock,  securities,  or
               assets with respect to or in exchange for Common Stock,  then, as
               a   condition   of   such    reorganization,    reclassification,
               consolidation,  merger, or sale,  lawful and adequate  provisions
               shall  be  made  providing  that:  (i)  the  Corporation  (or any
               successor  corporation)  shall deposit a sufficient sum to redeem
               the  shares  of  Series  A  Convertible   Preferred   Stock  then
               outstanding;  or (ii) the  holders  of the  Series A  Convertible
               Preferred Stock shall have the right to acquire and receive, upon
               the basis,  terms and conditions of this  Subsection  2(c)(iii)c,
               and in lieu of the shares of Common Stock  issuable on conversion
               of their Series A  Convertible  Preferred  Stock,  such shares of
               stock,  securities,  or assets as may be issued or  payable  with
               respect to or in exchange for a number of  outstanding  shares of
               Common Stock  equal  to  the  number  of  shares  of  such  stock
 
 
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               immediately  theretofore receivable upon the conversion of Series
               A   Convertible   Preferred   Stock   had  such   reorganization,
               reclassification,  consolidation,  merger or sale not taken place
               plus all  dividends  declared  and  unpaid as of the date of such
               reorganization, reclassification,  consolidation, merger or sale.
               In any  reorganization or  reclassification  of the Common Stock,
               consolidation,  merger or sale of all or substantially all of the
               Corporation's assets,  appropriate  provisions shall be made with
               respect to the rights and  interests  of the  holders of Series A
               Convertible  Preferred  Stock to ensure  that the  provisions  of
               Subsection 2(c) shall thereafter be applicable,  as nearly as may
               be in  relation  to any  shares  of stock,  securities  or assets
               thereafter receivable upon the conversion of Series A Convertible
               Preferred  Stock.  The  Corporation  shall give record holders of
               Series  A  Convertible  Preferred  Stock  notice  by  mail of any
               transaction  of the type  specified in this  subsection  at least
               thirty  (30) days prior to the date of such  transaction,  or the
               Corporation (or any successor corporation) shall have set aside a
               sufficient  sum to redeem  any  shares  of  Series A  Convertible
               Preferred  Stock  then   outstanding,   in  accordance  with  the
               provisions of Subsection  2(d)(iv),  provided  however,  that the
               Corporation may effect such consolidation,  merger or sale if the
               Corporation  or  the  successor   corporation  shall  assume  the
               obligation to deliver such shares of stock, securities or assets,
               in accordance  with the foregoing  provisions,  to the holders of
               Series A Convertible Preferred Stock.
 
                    d. No  adjustment  shall be made to the  Conversion  Rate in
               connection with the following events:
 
                         1. the offer and sale at a purchase  price equal to the
                    fair  value  thereof  of  additional   shares  of  Series  A
                    Convertible Preferred Stock;
 
                         2. the  issuance at a purchase  price equal to the fair
                    value thereof, of any Common Stock or other securities which
                    may be issuable  upon, or assets which may be  distributable
                    upon,  conversion  or  redemption  of  shares  of  Series  A
                    Convertible Preferred Stock; or
 
                         3. the purchase or  acquisition  by the  Corporation of
                    any of its capital stock,  evidence of indebtedness or other
                    securities.
 
                    (iv)  Mechanics  of  Conversion.  Any  holder  of  Series  A
               Convertible  Preferred Stock may convert, at the holder's option,
               any or all  of  the  holder's  shares  of  Series  A  Convertible
               Preferred  Stock at any  time  prior  to the  conversion  of such
               shares  pursuant to  Subsection  2(c)(ii).  A holder  desiring to
               convert shall deliver and surrender a duly  endorsed  certificate
 
 
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               representing  those shares to the Corporation's  secretary at the
               principal  office  of  the  Corporation   together  with  written
               instructions   specifying  the  number  of  shares  of  Series  A
               Convertible  Preferred  Stock  to be  converted  and the name and
               address  of the  person  to whom  certificates  representing  the
               Common Stock are to be issued. Conversion shall be deemed to have
               been  effected on the date when delivery of notice of an election
               to convert and  certificates for shares is made or on the date of
               the occurrence of any event specified in this Subsection 2(c), as
               the case may be,  and such  date is  referred  to  herein  as the
               "Conversion  Date."  Upon  conversion  of only a  portion  of the
               number of shares covered by a certificate  representing shares of
               Series A Convertible  Preferred Stock surrendered for conversion,
               in the case of conversion  pursuant to this Subsection  2(c), the
               Corporation  shall issue and deliver to or upon the written order
               of the holder of the  certificate so surrendered  for conversion,
               at the expense of the Corporation, a new certificate covering the
               number  of  shares  of  Series  A  Convertible   Preferred  Stock
               representing  the  unconverted  portion  of  the  certificate  so
               surrendered.
 
                    (v)  Disposition of Outstanding  Dividends.  Any accumulated
               and unpaid dividends on such Series A Convertible Preferred Stock
               which  such  holder  is  entitled  to  receive,  but  has not yet
               received,  shall become immediately due and payable and after the
               Conversion Date continue to bear  compounded  interest at 15% per
               annum.
 
                    (vi)  Reservation  of Stock  Issuable Upon  Conversion.  The
               Corporation  shall at all times have reserved for issuance out of
               the authorized  but unissued  shares of Common Stock a sufficient
               number of shares of Common Stock for issuance upon  conversion of
               any shares of Series A Convertible Preferred Stock.
 
                    (vii) No Impairment.  The Corporation,  whether by amendment
               of its Articles of Incorporation,  or through any reorganization,
               transfer  of  assets,  merger,  dissolution,  issue  or  sale  of
               securities or any other voluntary action,  will not avoid or seek
               to avoid the  observance or performance of any of the terms to be
               observed  hereunder by the Corporation,  but at all times in good
               faith will  assist in the  carrying  out of all of such action as
               may  be  necessary  or   appropriate  in  order  to  protect  the
               conversion  rights of the  holders  of the  Series A  Convertible
               Preferred Stock against impairment.
 
                    (viii) Notice. In the event the Corporation shall propose to
               take any actions of the type described in this  Subsection  2(c),
               the  Corporation  shall give  notice to each  holder of shares of
               Series A  Convertible  Preferred  Stock,  in the manner set forth
               herein,  which notice shall specify the record date, if any, with
               respect to any such action and the approximate date on which such
               action is to take place. Such notice shall also  set  forth  such
 
 
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               facts with respect  thereto as shall be  reasonably  necessary to
               indicate the effect of such action (to the extent such effect may
               be known at the date of such notice) on the Conversion  Price and
               the  number,  kind or class of  shares  or  other  securities  or
               property which shall be deliverable  upon conversion of shares of
               Series A Convertible  Preferred  Stock. In the case of any action
               which  would  require  the fixing of a record  date,  such notice
               shall be given at least 10 days  prior to the date so fixed,  and
               in case of all other action,  such notice shall be given at least
               15 days prior to the taking of such proposed  action.  Failure to
               give such  notice,  or any defect  therein,  shall not affect the
               legality or validity of any such action.
 
               (d) Redemption.
 
                    (i) Corporation's  Right to Redeem. The Series A Convertible
               Preferred  Stock  may  not  be  redeemed  before  May  31,  2000.
               Thereafter,  subject to the  requirements  and limitations of the
               laws of the state of Nevada,  the  Corporation  may redeem all or
               any  portion of the  outstanding  shares of Series A  Convertible
               Preferred  Stock,  if they  have not  been  converted  to  common
               shares,  at the rate of $10.00 per share plus any accumulated and
               unpaid  dividends,  whether declared or not. If fewer than all of
               the  shares of  Series A  Convertible  Preferred  Stock are to be
               redeemed,  the  Corporation  will  select  those  to be  redeemed
               pro-rata  or by  lot in  such  other  manner  as  the  Board  may
               determine.  There is no  mandatory  redemption  or  sinking  fund
               obligation  with  respect to the Series A  Convertible  Preferred
               Stock. If the Corporation has failed to pay accrued  dividends on
               the Series A Convertible  Preferred  Stock, it may not redeem any
               of the outstanding  shares of the Series A Convertible  Preferred
               Stock until all such  accrued and unpaid  dividends  and,  except
               with respect to shares to be redeemed, the then current quarterly
               dividends have been paid in full.
 
                    (ii) Continuing Right to Convert.  Prior to the date set for
               the redeeming of the shares (the "Redemption  Date"), each holder
               of Series A Convertible  Preferred  Stock shall  continue to have
               the right to convert shares as outlined in Subsection 2(c).
 
                    (iii) Notice.  Notice of the redemption  shall be sent by or
               on behalf of the Corporation, by certified mail, postage prepaid,
               to the  holders of record of the Series A  Convertible  Preferred
               Stock at their respective addresses as they appear on the records
               of the  Corporation,  not less than twenty (20) days but not more
               than sixty (60) days prior to the redemption date, notifying such
               holders of (i) the  election  of the  Corporation  to redeem such
               shares,  (ii) the date of redemption,  (iii) stating the place or
               places at which the shares  called  for  redemption  shall,  upon
               presentation  and surrender of the  certificates  evidencing such
               shares, be redeemed, and the Redemption Price therefore, and (iv)
 
 
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               stating the name and address of any Redemption  Agent selected by
               the  Corporation  in  accordance  with  the  provisions  of  this
               Subsection  2(d),  and the name and address of the  Corporation's
               Transfer Agent for the Series A Convertible  Preferred Stock. The
               Corporation may act as the redemption  agent to redeem the Series
               A Convertible Preferred Stock.
 
                    (iv) Interim Rights. If notice of redemption shall have been
               given as herein provided,  and the Corporation  shall not default
               in the  payment  of the  Redemption  Price,  then each  holder of
               Series A Convertible  Preferred Stock called for redemption shall
               be entitled to all  preferences  and  relative  and other  rights
               accorded by this resolution until and including the date prior to
               the  Redemption  Date.  If the  Corporation  shall  fail  to make
               payment or delivery as aforesaid  on the  Redemption  Date,  then
               each holder of the Series A  Convertible  Preferred  Stock called
               for redemption  shall be entitled to all preferences and relative
               and other rights accorded by this resolution  until and including
               the date prior to the date (the "Final Redemption Date") when the
               Corporation makes payment or delivery as aforesaid to the holders
               of the Series A Convertible Preferred Stock. The Final Redemption
               Date  shall  be no  later  than  five  business  days  after  the
               Redemption  Date.  From and after the Redemption  Date or, if the
               Corporation   shall   default  in  making   payment  or  delivery
               aforesaid,  the Final  Redemption  Date, the Series A Convertible
               Preferred  Stock called for redemption  shall no longer be deemed
               to be outstanding, and all rights of the holders of such Series A
               Convertible Preferred Stock shall cease and terminate, except the
               right  of the  holders  of such  Series A  Convertible  Preferred
               Stock,  upon  surrender  of  certificates  therefor,  to  receive
               amounts to be paid hereunder. The deposit of monies in trust with
               the  Redemption  Agent  shall  be  irrevocable  except  that  the
               Corporation  shall be  entitled  to receive  from the  Redemption
               Agent  the  interest  or other  earnings,  if any,  earned on any
               monies so  deposited  in trust,  and the  holders of any Series A
               Convertible  Preferred Stock redeemed shall have no claim to such
               interest  or  other  earnings,  and  any  balance  of  monies  so
               deposited by the  Corporation and unclaimed by the holders of the
               Series A  Convertible  Preferred  Stock  entitled  thereto at the
               expiration  of one year  from the  Redemption  Date (or the Final
               Redemption  Date, as applicable)  shall be repaid,  together with
               any interest or other earnings thereon,  to the Corporation,  and
               after any such  repayment,  the holders of the Series A Preferred
               Shares entitled to the funds so repaid to the  Corporation  shall
               look only to the Corporation for such payment, without interest.
 
                    (v) Restriction on Redemption. So long as the payment of any
               declared   dividends  on  shares  of  the  Series  A  Convertible
               Preferred   Stock  is  not  paid,  no  shares  of  the  Series  A
               Convertible  Preferred Stock shall be redeemed,  unless consented
               to in writing by a holder thereof after receipt of written notice
               from  the   Corporation   (whether  by   mandatory   or  optional
               redemption) unless all such shares  are  simultaneously  redeemed
 
 
                                       9
<PAGE>
 
 
               and the  Corporation  may not (i) make any payment on account of,
               or set apart  payment  for,  the  purchase or other  acquisition,
               redemption,  retirement or other  requirement of, or with respect
               to,  any  sinking  or other  similar  fund or  agreement  for the
               purchase or other  acquisition,  redemption,  retirement or other
               requirement  of, or with respect to, any other  capital  stock of
               the  Corporation  or  any  warrants,  rights,  calls  or  options
               exercisable or exchangeable for or convertible into other capital
               stock of the  Corporation or (ii) permit any corporation or other
               entity  controlled  directly or indirectly by the  Corporation to
               purchase or otherwise  acquire or redeem any other  capital stock
               of the  Corporation  or any  warrants,  rights,  calls or options
               exercisable or exchangeable for or convertible into other capital
               stock of the Corporation.
 
                    (vi) Section 16 Profits. Notwithstanding any language herein
               to the contrary, in no event shall shares of Series A Convertible
               Preferred Stock be redeemed by the  Corporation  until the holder
               shall have  determined  in good  faith that it is not  subject to
               liability under Section 16 of the Securities Exchange Act of 1934
               or any successor  provision.  All dates for  redemption  shall be
               postponed until such determination is made by the holder.
 
               (e)  Liquidation  Preference.  Upon  liquidation,  dissolution or
          winding up of the  Corporation,  the holders of  outstanding  Series A
          Convertible  Preferred  Stock  shall be entitled to receive out of the
          assets of the Corporation  available for distribution to shareholders,
          before  any  distribution  of assets  shall be made to the  holders of
          shares  of Common  Stock or any  other  junior  stock,  a  liquidation
          preference  in an amount  equal to $10.00  per  share,  plus an amount
          equal to all accumulated and unpaid dividends on such shares of Series
          A Convertible  Preferred  Stock. If, upon any voluntary or involuntary
          liquidation, dissolution or winding up of the Corporation, the amounts
          payable with respect to the Series A Convertible  Preferred  Stock are
          not paid in full,  the holders of the Series A  Convertible  Preferred
          Stock shall share  ratably in any such  distribution  of assets of the
          Corporation in proportion to the full respective  preferential amounts
          (including  accumulated  and  unpaid  dividends)  to  which  they  are
          entitled.  After  payment to the  holders of the Series A  Convertible
          Preferred Stock of the full preferential amount (including accumulated
          and unpaid  dividends)  provided for in this Section 2(e), the holders
          of the  Series A  Preferred  Stock  shall be  entitled  to no  further
          participation  in any  distribution  of  assets  by  the  Corporation.
          Neither the  voluntary  sale,  conveyance,  exchange or transfer  (for
          cash,  securities  or other  consideration)  of all or any part of the
          property or assets of the Corporation, nor the consolidation or merger
          or other  business  combination  of the  Corporation  with or into any
          other  corporation or corporations,  shall be deemed to be a voluntary
          or  involuntary   liquidation,   dissolution  or  winding  up  of  the
          Corporation,  unless  such  voluntary  sale,  conveyance,  exchange or
          transfer  shall  be  in  connection   with  a  plan  of   liquidation,
          dissolution or winding up of the Corporation.
 
 
                                       10
<PAGE>
 
 
               (f) Miscellaneous.
 
                    (i) So long as any shares of Series A Convertible  Preferred
               Stock are  outstanding,  the Corporation  shall not,  without the
               affirmative  vote or the  written  consent as provided by law, of
               the  holders  of  75% of  the  outstanding  shares  of  Series  A
               Convertible  Preferred  Stock,  voting  as a  class,  change  the
               preferences  rights or limitations with respect to such Series in
               any  material  respect  prejudicial  to the  holders  thereof  or
               increase  the  authorized  number of shares of such  Series,  but
               nothing  herein shall require such a class vote or consent (a) in
               connection  with any increase in the total  number of  authorized
               shares  of   common   stock  or  (b)  in   connection   with  the
               authorization,  designation, increase or issuance of any class or
               series of stock  holding a ranking  subordinate  to the  Series A
               Convertible Preferred Stock.
 
                    (ii) Covenants. The Corporation covenants and agrees that:
 
                         a. Shares of Common Stock or other securities  issuable
                    or assets  distributable on conversion of shares of Series A
                    Convertible  Preferred  Stock  shall be  deemed to have been
                    issued  or paid  on the  date of  original  issuance  of the
                    Series A Convertible Preferred Stock.
 
                         b. The  issuance of  certificates  for Common  Stock or
                    other  securities  on conversion of the Series A Convertible
                    Preferred   Stock  shall  be  made  without  charge  to  the
                    registered  holder  thereof or other  costs  incurred by the
                    Corporation in connection  with the conversion of the Series
                    A Convertible  Preferred  Stock and the related  issuance of
                    Common Stock or other securities.
 
                    (iii)  Transfer.  Shares of Series A  Convertible  Preferred
               Stock shall be transferable only on the Corporation's Records, on
               delivery of the certificate(s)  representing  those shares,  duly
               endorsed  by the  holder or by his duly  authorized  attorney  or
               representative  or accompanied by proper  evidence of succession,
               assignment, or authority to transfer. In all cases of transfer by
               an attorney,  the original letter of attorney,  duly approved, or
               an official copy thereof, duly certified,  shall be deposited and
               remain with the  Corporation.  In case of transfer by  executors,
               administrators,  guardians, or other legal representatives,  duly
               authenticated  evidence of their  authority shall be produced and
               may be required to be deposited  and remain with the  Corporation
               in  its  discretion.   On  any  registration  or  transfer,   the
               Corporation  shall  deliver a new  certificate  representing  the
               share of Series A Convertible  Preferred  Stock so transferred to
               the person entitled thereto.
 
 
                                       11
<PAGE>
 
 
                    (iv)  Notices.  Except as  otherwise  provided  herein,  any
               notice  required or  permitted  to be given to the holders of the
               Series A Convertible Preferred Stock shall be deemed to have been
               duly given as of the date  deposited  in the United  States mail,
               postage  prepaid for first class  delivery,  and addressed to the
               holders of record in the  Corporation's  Records at the addresses
               appearing on the Corporation's Records.
 
                    (v) Costs. The Corporation shall pay all documentary, stamp,
               transfer  or  other   transactional  taxes  attributable  to  the
               issuance or delivery of shares of Common Stock upon conversion of
               any shares of Series A Convertible  Preferred Stock provided that
               the Corporation  shall not be required to pay any taxes which may
               be payable in respect of any transfer involved in the issuance or
               delivery of any  certificate for such shares in a name other than
               that  of the  holder  of  the  shares  of  Series  A  Convertible
               Preferred Stock in respect of which such shares are being issued.
 
                    (vi) Valid Issuance. All shares of Common Stock which may be
               issued  upon  conversion  of the  shares of Series A  Convertible
               Preferred Stock will upon issuance by the Corporation be duly and
               validly issued,  fully paid and  nonassessable  and free from all
               taxes,  liens and charges with  respect to the issuance  thereof,
               and the  Corporation  shall  take no action  which  will  cause a
               contrary result (including without  limitation,  any action which
               would cause the  Conversion  Price to be less than the par value,
               if any, of the Common Stock).
 
     Section 3. Common Stock.
 
          (a) After the requirements  with respect to preferential  dividends on
     the Preferred Stock, if any, shall have been met, and after the Corporation
     shall have complied with all the requirements,  if any, with respect to the
     setting aside of sums as sinking funds or redemption or purchase  accounts,
     and  subject  further  to  any  other  conditions  which  may be  fixed  in
     accordance  with the  provisions of Section 2 of this Article IV, then, and
     not otherwise, the holders of the Common Stock shall be entitled to receive
     such  dividends  as may be  declared  from  time to time  by the  Board  of
     Directors of the Corporation paid out of funds legally available therefor.
 
          (b) After distribution in full of the preferential  amount, if any, to
     be  distributed  to the  holders  of the  Preferred  Stock in the  event of
     voluntary  or  involuntary  liquidation,  distribution  or sale of  assets,
     dissolution,  or winding-up of the  Corporation,  the holders of the Common
     Stock  shall be  entitled  to receive  all of the  remaining  assets of the
     Corporation,  tangible  and  intangible,  of whatever  kind  available  for
     distribution to stockholders, ratably in proportion to the number of shares
     of the Common Stock held by them respectively.
 
 
                                       12
<PAGE>
 
 
          (c) Except as may  otherwise  be required  by law,  each holder of the
     Common  Stock  shall  have one vote in  respect of each share of the Common
     Stock held by him on all matters voted upon by the stockholders.
 
     Section 4. General Provisions.  The capital stock of the Corporation may be
issued for money, property,  services rendered,  labor done, cash advanced to or
on behalf of the  Corporation,  or for any other  assets of value in  accordance
with an action of the Board of Directors,  whose judgment as to the value of the
assets  received in return for said stock shall be  conclusive,  and said stock,
when issued, shall be fully paid and nonassessable.
 
                                    ARTICLE V
                                     VOTING
                                     ------
 
     Cumulative voting in the election of directors is not authorized.
 
                                   ARTICLE VI
                                PREEMPTIVE RIGHTS
                                -----------------
 
     Shareholders of the Corporation shall not have preemptive rights to acquire
unissued or treasury  shares of the Corporation or securities  convertible  into
such shares or carrying a right to subscribe to or acquire such shares.
 
                                   ARTICLE VII
                                     OFFICE
                                     ------
 
     The  principal  office of the  corporation  in the State of Nevada shall be
3896 Scripps Way, Las Vegas, Nevada, located in Clark County.
 
                                  ARTICLE VIII
                               BOARD OF DIRECTORS
                               ------------------
 
     Section  1.  Board  of  Directors;  Number.  The  governing  board  of  the
Corporation  shall  be  known  as the  Board of  Directors,  and the  number  of
directors  may from time to time be  increased  or  decreased  in such manner as
shall be provided in the Bylaws of the Corporation,  provided that the number of
directors shall not be reduced to less than three unless the outstanding  shares
are held of record by fewer  than three  shareholders,  in which case there need
only be as many directors as there are shareholders.
 
     Section 2.  Classification  of Directors.  The Board of Directors  shall be
divided  into three  classes,  Class 1, Class 2 and Class 3, each class to be as
nearly  equal in number  as  possible.  The term of office of Class 1  directors
shall expire at the first annual  meeting of the  shareholders  following  their
election,  that of Class 2 directors  shall expire at the second annual  meeting
following  their  election,  and that of Class 3 directors  shall  expire at the
third annual meeting following their election. At each annual meeting after such
classification,  a number of  directors  equal to the number of the class  whose
term expires at the time of such  meeting  shall be elected to hold office until
the  third  succeeding  annual  meeting. No classification of directors shall be
 
 
                                       13
<PAGE>
 
 
effective  prior to the first annual meeting of shareholders or at any time when
the Board of Directors  consists of less than six members.  Notwithstanding  the
foregoing,  and except as otherwise required by law, whenever the holders of any
one or more series of Preferred Stock shall have the right, voting separately as
a class,  to elect one or more  directors of the  Corporation,  the terms of the
director  or  directors  elected  by  such  holders  shall  expire  at the  next
succeeding annual meeting of shareholders.
 
     Section 3. Nomination of Directors.
 
          (a) Nominations for the election of directors may be made by the Board
     of  Directors,  by a  committee  of  the  Board  of  Directors,  or by  any
     shareholder entitled to vote for the election of directors.  Nominations by
     shareholders  shall be made by notice in  writing,  delivered  or mailed by
     first class United States mail,  postage  prepaid,  to the Secretary of the
     Corporation,  not  less  than 14 days nor  more  than 50 days  prior to any
     meeting of the shareholders called for the election of directors; provided,
     however,  that if less  than 21 days'  notice  of the  meeting  is given to
     shareholders,  such  written  notice  shall  be  delivered  or  mailed,  as
     prescribed,  to the Secretary of the Corporation,  not later than the close
     of the seventh  day  following  the day on which  notice of the meeting was
     mailed to shareholders.
 
          (b) Each  notice  under  subsection  (a) shall set forth (i) the name,
     age,  business  address  and, if known,  residence  address of each nominee
     proposed in such notice,  (ii) the  principal  occupation  or employment of
     such  nominee,  and (iii) the number of shares of stock of the  Corporation
     which are beneficially owned by each such nominee.
 
          (c) The  chairman  of the  shareholders'  meeting  may,  if the  facts
     warrant, determine and declare to the meting that a nomination was not made
     in accordance with the foregoing procedure,  and if he should so determine,
     he shall so declare to the meeting and the  defective  nomination  shall be
     disregarded.
 
     Section 4. Certain Powers of the Board of Directors. In furtherance and not
in  limitation  of the powers  conferred  by statute,  the Board of Directors is
expressly authorized:
 
          (a) to manage and govern the  Corporation  by majority vote of members
     present  at any  regular  or  special  meeting  at which a quorum  shall be
     present,  to make,  alter,  or amend the Bylaws of the  Corporation  at any
     regular or special  meeting,  to fix the amount to be  reserved  as working
     capital over and above its capital stock paid in, to authorize and cause to
     be executed  mortgages and liens upon the real and personal property of the
     Corporation,  and to designate one or more  committees,  each  committee to
     consist of two or more of the directors of the  Corporation,  which, to the
     extent  provided  in the  resolution  or in the Bylaws of the  Corporation,
     shall have and may  exercise  the powers of the Board of  Directors  in the
     management of the business and affairs of the  Corporation  (such committee
     or committees  shall have such name or names as may be stated in the Bylaws
     of the  Corporation or as may be determined from time to time by resolution
     adopted by the Board of Directors);
 
 
                                       14
<PAGE>
 
 
          (b)  to  sell,  lease,  exchange,  or  otherwise  dispose  of  all  or
     substantially  all of the  property  and assets of the  Corporation  in the
     ordinary course of its business upon such terms and conditions as the Board
     of Directors may determine without vote or consent of the shareholders;
 
          (c) to sell, pledge, lease, exchange,  liquidate, or otherwise dispose
     of all or  substantially  all of the property or assets of the Corporation,
     including its goodwill, if not in the ordinary course of its business, upon
     such  terms  and  conditions  as the  Board  of  Directors  may  determine;
     provided, however, that such transaction shall be authorized or ratified by
     the  affirmative  vote of the  holders of at least a majority of the shares
     entitled to vote  thereon at a  shareholders'  meeting duly called for such
     purpose, or authorized or ratified by the written consent of the holders of
     all of the shares entitled to vote thereon; and provided, further, that any
     such  transaction  with any  substantial  shareholder  or  affiliate of the
     Corporation  shall be authorized or ratified by the affirmative vote of the
     holders of at least  two-thirds of the shares entitled to vote thereon at a
     shareholders' meeting duly called for that purpose, unless such transaction
     is with any subsidiary of the Corporation or is approved by the affirmative
     vote of a majority of the continuing  directors of the  Corporation,  or is
     authorized  or ratified  by the  written  consent of the holders of all the
     shares entitled to vote thereon;
 
          (d)  to  merge,  consolidate,   or  exchange  all  of  the  issued  or
     outstanding  shares of one or more  classes  of the  Corporation  upon such
     terms and  conditions  as the Board of Directors may  authorize;  provided,
     however, that such merger, consolidation,  or exchange shall be approved or
     ratified by the  affirmative  vote of the holders of at least a majority of
     the shares entitled to vote thereon at a shareholders'  meeting duly called
     for that purpose,  or authorized or ratified by the written  consent of the
     holders  of all of the  shares  entitled  to vote  thereon;  and  provided,
     further,  that  any  such  merger,  consolidation,  or  exchange  with  any
     substantial shareholder or affiliate of the Corporation shall be authorized
     or ratified by the affirmative  vote of the holders of at least  two-thirds
     of the shares  entitled to vote  thereon at a  shareholders'  meeting  duly
     called for that purpose, unless such merger, consolidation,  or exchange is
     with any subsidiary of the  Corporation  or is approved by the  affirmative
     vote of a majority of the continuing  directors of the  Corporation,  or is
     authorized  or ratified  by the  written  consent of the holders of all the
     shares entitled to vote thereon; and
 
          (e) to distribute to the shareholders of the Corporation,  without the
     approval of the shareholders, in partial liquidation, out of stated capital
     or capital  surplus  of the  Corporation,  a portion  of the  Corporation's
     assets,  in cash or in property,  so long as the partial  liquidation is in
     compliance with the Colorado Corporation Code.
 
          (f) as used in this  Section  4, the  following  terms  shall have the
     following meanings:
 
               (i) an  "affiliate"  shall mean any person or entity  which is an
          affiliate  within the meaning of Rule 12b-2 of the  General  Rules and
          Regulations under the Securities Exchange Act of 1934, as amended;
 
 
                                       15
<PAGE>
 
 
               (ii) a  "continuing  director"  shall  mean a  director  who  was
          elected  before  the  substantial  shareholder  or  affiliate  of  the
          Corporation  which is to be a party to a proposed  transaction  within
          the scope of  subsections  (c) and (d) of this Section 4 became such a
          substantial  shareholder or affiliate of the Corporation,  as the case
          may  be,  or is  designated  at or  prior  to his  first  election  or
          appointment  to the Board of  Directors by the  affirmative  vote of a
          majority of the Board of Directors who are continuing directors;
 
               (iii) a  "subsidiary"  shall  mean any  corporation  in which the
          Corporation owns the majority of each class of equity security; and
 
               (iv) a "substantial  shareholder" shall mean any person or entity
          which is the beneficial owner, within the meaning of Rule 13d-3 of the
          General Rules and  Regulations  under the  Securities  Exchange Act of
          1934, as amended,  or 10% or more of the outstanding  capital stock of
          the Corporation.
 
                                   ARTICLE IX
                              CONFLICTS OF INTEREST
                              ---------------------
 
     Section 1. Related Party Transactions.  No contract or other transaction of
the Corporation  with any other person,  firm, or  corporation,  or in which the
Corporation is interested, shall be affected or invalidated by (a) the fact that
any one or more of the directors or officers of the Corporation is interested in
or is a director or officer of such other firm or  corporation;  or (b) the fact
that that any director or officer of the  Corporation,  individually  or jointly
with  others,  may be a party to or may be  interested  in any such  contract or
transaction, so long as the contract or transaction is authorized,  approved, or
ratified at a meeting of the Board of  Directors by  sufficient  vote thereon by
directors not interested therein, to which such fact of relationship or interest
has been disclosed,  or so long as the contract or transaction has been approved
or ratified by vote or written consent of the shareholders  entitled to vote, to
whom such fact of relationship or interest has been disclosed, or so long as the
contract or transaction is fair and reasonable to the  Corporation.  Each person
who may become a director or officer of the  Corporation is hereby relieved from
any liability that might otherwise  arise by reason of his contracting  with the
Corporation  for the benefit of himself or any firm or  corporation  in which he
may be in any way interested.
 
     Section 2.  Corporate  Opportunities.  The officers,  directors,  and other
members of  management  of the  Corporation  shall be subject to the doctrine of
corporate  opportunities only insofar as it applies to business opportunities in
which the  Corporation has expressed an interest as determined from time to time
by  resolution  of the Board of  Directors.  When  such  areas of  interest  are
delineated,  all such business opportunities within such areas of interest which
come  to  the  attention  of the  officers,  directors,  and  other  members  of
management of the Corporation shall be disclosed promptly to the Corporation and
made available to it. The Board of Directors may reject any business opportunity
presented  to it, and  thereafter  any  officer,  director,  or other  member of
management  may  avail  himself  of such  opportunity.  Until  such  time as the
Corporation, through its Board of Directors, has designated an area of interest,
 
 
                                       16
<PAGE>
 
 
the officers,  directors,  and other  members of  management of the  Corporation
shall be free to engage in such areas of interest on their own.  The  provisions
hereof shall not limit the rights of any officer,  director,  or other member of
management of the Corporation to continue a business  existing prior to the time
that such area of interest is designated by the  Corporation,  nor shall they be
construed  to release any  employee of the  Corporation  (other than an officer,
director,  or member of management) from any duties which such employee may have
to the Corporation.
 
                                    ARTICLE X
                                 INDEMNIFICATION
                                 ---------------
 
     Section 1. Direct Actions.  The Corporation  shall indemnify any person who
was or is a  party,  or is  threatened  to be made a party,  to any  threatened,
pending,  or completed  action,  suit, or proceeding,  whether civil,  criminal,
administrative, or investigative (other than an action by or in the right of the
Corporation),  by  reason of the fact  that  such  person is or was a  director,
officer, employee,  fiduciary, or agent of the Corporation, or is or was serving
at the request of the Corporation as a director,  officer, employee,  fiduciary,
or agent of another  corporation,  partnership,  joint venture,  trust, or other
enterprise,  against expenses (including attorney fees),  judgments,  fines, and
amounts paid in settlement,  actually and reasonably  incurred by such person in
connection  with such action,  suit or proceeding,  if such person acted in good
faith and in a manner such person  reasonably  believed to be in, or not opposed
to, the best  interests of the  Corporation,  and,  with respect to any criminal
action or proceeding,  had no reasonable  cause to believe such person's conduct
was unlawful.  The  termination of any action,  suit, or proceeding by judgment,
order,  settlement,  or  conviction,  or upon a plea of  nolo  cotendere  or its
equivalent,  shall not of itself create a  presumption  that such person did not
act in good faith and in a manner such person  reasonably  believed to be in, or
not opposed to, the best interests of the  Corporation  and, with respect to any
criminal  action  or  proceeding,  had  reasonable  cause to  believe  that such
person's conduct was unlawful.
 
     Section 2. Derivative  Actions.  The Corporation shall indemnify any person
who was or is a party,  or is threatened to be made a party,  to any threatened,
pending,  or completed  action or suit by or in the right of the  Corporation to
procure a judgment in its favor by reason of the fact that such person is or was
a director, officer, employee,  fiduciary, or agent of the Corporation, or is or
was serving at the request of the Corporation as a director,  officer, employee,
fiduciary, or agent of another corporation,  partnership,  joint venture, trust,
or other  enterprise  against  expenses  (including  attorney fees) actually and
reasonably  incurred by such person in connection with the defense or settlement
of such action or suit,  if such person acted in good faith and in a manner such
person  reasonably  believed to be in, or not opposed to, the best  interests of
the Corporation,  except that no indemnification shall be made in respect of any
claim,  issue,  or matter as to which such person shall have been adjudged to be
liable for negligence or misconduct in the  performance of such person's duty to
the  Corporation,  unless,  and only to the extent that, the court in which such
action or suit was brought shall determine upon  application  that,  despite the
adjudication  of liability,  but in the view of all  circumstances  of the case,
such  person is fairly  and  reasonably  entitled  to  indemnification  for such
expenses which such court deems proper.
 
 
                                       17
<PAGE>
 
 
     Section 3.  Expenses.  To the extent  that a director,  officer,  employee,
fiduciary,  or agent of the  Corporation  has been  successful  on the merits or
otherwise in defense of any action,  suit, or proceeding referred to in Sections
1 and 2 of this Article X, or in defense of any claim, issue, or matter therein,
such person shall be  indemnified  against  expenses  (including  attorney fees)
actually and reasonably incurred by him in connection therewith.
 
     Section 4. Determination. Any indemnification under Sections 1 or 2 of this
Article X (unless ordered by a court) shall be made by the  Corporation  only as
authorized in the specific case upon a determination that indemnification of the
director,   officer,   employee,   fiduciary,  or  agent  is  proper  under  the
circumstances because such person has met the applicable standard of conduct set
forth in Sections 1 or 2 of this Article X. Such determination shall be made (i)
by the Board of Directors by a majority vote of a quorum consisting of directors
who were not parties to such  action,  suit,  or  proceeding,  or (ii) if such a
quorum is not  obtainable  or,  even if  obtainable,  a quorum of  disinterested
directors so directs,  by  independent  legal counsel in a written  opinion,  or
(iii) by the  affirmative  vote of the  holders of a  majority  of the shares of
stock entitled to vote and represented at a meeting called for such purpose.
 
     Section 5. Advance of Expenses. Expenses (including attorney fees) incurred
in defending a civil or criminal action,  suit, or proceeding may be paid by the
Corporation  in  advance  of the final  disposition  of such  action,  suit,  or
proceeding  as  authorized  in Section 4 of this  Article X, upon  receipt of an
undertaking by or on behalf of the director,  officer,  employee,  fiduciary, or
agent to repay such amount  unless it shall be ultimately  determined  that such
person is entitled to be  indemnified  by the  Corporation as authorized in this
Article X.
 
     Section 6. Insurance. The Board of Directors may exercise the Corporation's
power to purchase and maintain insurance on behalf of any person who is or was a
director,  officer, employee,  fiduciary, or agent of the Corporation,  or is or
was serving at the request of the Corporation as a director,  officer, employee,
fiduciary or agent of another corporation, partnership, joint venture, trust, or
other  enterprise,  against  any  liability  asserted  against  such  person and
incurred by such person in any such  capacity,  or arising out of such  person's
status as such, whether or not the Corporation would have the power to indemnify
such person against such liability under this Article X.
 
     Section 7. Miscellaneous.  The  indemnification  provided by this Article X
shall  not be  deemed  exclusive  of any other  rights  to which  those  seeking
indemnification  may be entitled under these Restated Articles of Incorporation,
the Bylaws, agreements,  vote of the shareholders or disinterested directors, or
otherwise, both as to action in such person's official capacity and as to action
in another capacity while holding such office, and shall continue as to a person
who has ceased to be a  director,  officer,  employee,  fiduciary,  or agent and
shall inure to the  benefit of the heirs and  personal  representatives  of such
person.
 
 
                                       18
<PAGE>
 
 
                                   ARTICLE XI
                           ARRANGEMENTS WITH CREDITORS
                           ---------------------------
 
     Whenever a compromise or arrangement is proposed by the Corporation between
it and its creditors or any class of them,  and/or between the  Corporation  and
its shareholders or any class of them, any court of equitable  jurisdiction may,
on summary application by the Corporation, or by a majority of its shareholders,
or  on  the  application  of  any  receiver  or  receivers   appointed  for  the
Corporation,  or on the application of trustees in dissolution,  order a meeting
of the creditors or class of creditors  and/or of the  shareholders  or class of
shareholders  of the  Corporation,  as the case may be, to be  notified  in such
manner as the court  decides.  If a  majority  in number  representing  at least
three-fourths  in amount  of the  creditors  or class of  creditors  and/or  the
holders of the  majority of the stock or class of stock of the  Corporation,  as
the  case  may  be,  agree  to  any  compromise  or  arrangement  and/or  to any
reorganization  of the  Corporation,  as a  consequence  of such  compromise  or
arrangement,  then said  compromise or  arrangement  and/or said  reorganization
shall,  if  sanctioned by the court to which the  application  has been made, be
binding  upon  all  the  creditors  or  class  of  creditors  and/or  on all the
shareholders or class of shareholders  of the  Corporation,  as the case may be,
and also on the Corporation.
 
                                   ARTICLE XII
                             SHAREHOLDERS' MEETINGS
                             ----------------------
 
     Shareholders'  meetings may be held at such time and place as may be stated
or fixed in accordance with the Bylaws. At all shareholders' meetings, one-third
of all shares entitled to vote shall constitute a quorum.
 
                                  ARTICLE XIII
                                    AMENDMENT
                                    ---------
 
     These Restated  Articles of  Incorporation  may be amended by resolution of
the Board of Directors  if no shares have been issued,  and, if shares have been
issued,  by the  affirmative  vote of the  holders of at least a majority of the
shares  entitled to vote thereon at a meeting duly called for that purpose,  or,
when authorized,  when such action is ratified by the written consent of all the
shareholders entitled to vote thereon.
 
 
                                      * * *
 
     The undersigned,  being the Secretary of the Corporation,  hereby certifies
that he was  authorized  to sign these  Restated  Articles of  Incorporation  by
resolution of the Board of Directors adopted on December 7, 2005.
 
 
                                        /s/  David Grose
                                        ----------------------------------------
                                        David Grose, Secretary