CERTIFICATE OF INCORPORATION

 

OF

 

ENZO BIOCHEM, INC.

 

Under Section 402 of the Business Corporation Law

 

1.       The name of the Corporation is:

 

ENZO BIOCHEM, INC.

 

2.       The purposes for which the Corporation is formed are:

 

(a)      To  manufacture  or  otherwise   produce,   purchase, process,  compound,   prepare,  inventory,  sell  and conduct research  relating to all kinds of chemicals, drugs, enzymes,  medicines,  physicians and surgeon's supplies  and   instruments   and  all   accessories, appliances,  kits, instruments, and products relating thereto.

 

(b)      To  acquire,   lease,   manage,   operate,   develop, subdivide,  control,  build,  erect or  maintain  any rights or interests in real  property of any kind for any commercial, residential or public purposes.

 

(c)      To  conduct a general  mercantile  and  manufacturing business, to operate a laboratory or similar place of research, and to engage in all activities or services incidental or related thereto.

 

(d)      To manufacture,  acquire,  sell or otherwise  dispose of,  and deal in and  with,  all  kinds  of  personal property.

 

(e)      To acquire, sell or otherwise dispose of, deal in and with,  and grant and obtain rights in respect of, all kinds of intangible property including patent rights, inventions,   discoveries,  formulae  and  processes, copyrights, trademarks, trade names and designs.

 

(f)      To borrow or raise  money,  to issue  securities  and other  evidences  of  indebtedness  of all  kinds and secure  their  payment by the  creation  of  security interests in any of its property.

 

(g)      To acquire, sell or transfer its own securities.

 

(h)      To lend  any of its  funds,  with or  without  either security or interest.

 

(i)      To acquire  and to sell or  otherwise  dispose of (a) any  interest  in  the  business  or  assets  of  any individual,  corporation  or  other  entity,  and (b) securities and  obligations  issued or created by any corporation, governmental  unit or other  entity,  and to exercise any rights relating to them.

 

(j)      To the extent permitted by law, to promote,  finance, underwrite or assist,  financially or otherwise,  and to  assume  or  guarantee  the  obligations  of,  any individual,   corporation   or   other   entity,   in furtherance of its corporate purposes.

 

(k)      To  carry  out  any  of  the  foregoing  purposes  as principal or agent,  either  alone or in  association with others.

 

(l)      To carry on any similar lawful business.

 

The  listing of these  purposes  is not to imply any  limitation  on or exclusion  of any  powers  this  Corporation  may have under New York law now or hereafter in effect.

 

3.       The office of the Corporation will be in the City of New York, County of New York and State of New York.

 

4.       The  aggregate  number of  shares  which  the  Corporation  is authorized to issue is  one-hundred  (100) Common Shares of the par value of ten cents (10(cent)) each.

 

5.       The Secretary of State of New York is designated as the agent of the Corporation upon whom process against it may be served. The Secretary of State shall mail a copy of any process against the Corporation which may be served upon him to the Corporation c/o Elazer Rabbani, 69 Fifth Avenue, New York, New York.

 

6.       Any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board consent in writing to the adoption of a resolution authorizing the action and such written consents and resolutions are filed with the minutes of the proceedings of the Board.

 

7.       The  accounting  period  which  the  Corporation   intends  to establish as its first  calendar or fiscal year for  reporting the franchise tax on business corporations imposed by Article  9-A of the Tax  Law  shall  be from  the  date  of the  filing  of this certificate until December 31, 1976.

 

I affirm under the penalties of perjury that the Statements in this certificate are true.

 

Dated:  August 9, 1976

 

                                                                                                    /s/

 

                                                                                                    EUGENE FARBER

                                                                                                    Address:        Eugene Farber

                                                                                                                          319 East 24th Street

                                                                                                                          New York, New York       10010

 

 

CERTIFICATE OF AMENDMENT

OF THE

CERTIFICATE OF INCORPORATION

OF ENZO BIOCHEM, INC.

 

UNDER SECTION 805 OF THE BUSINESS

CORPORATION LAW

 

WE, the  undersigned,  ELAZAR  RABBANI  and  BARRY  W.  WEINER, being respectively the President and Secretary of ENZO  BIOCHEM,  INC.,  do hereby certify:

 

1.       The name of the Corporation is ENZO BIOCHEM, INC.

 

2.       The Certificate of  Incorporation  was filed by the Department of State on August 13,  1976.

 

3.       The Certificate of  Incorporation  is hereby amended to affect the following changes authorized by the Business Corporation Law:

 

(A)      To increase the capitalization of the Corporation.

 

(B)      To change the address to which the Secretary of State shall mail a copy of process  against the Corporation served upon him.

 

(C)      To provide for the  indemnification  of officers  and directors.

 

(D)      To provide for  transactions by the Corporation  with its directors.

 

(E)      To provide for the  adoption,  amendment or repeal of the By-laws of the Corporation.

 

(F)      To   provide   that  no   holder  of  shares  of  the Corporation shall have preemptive rights.

 

4.       To accomplish the  foregoing:

 

(A)      Article 4 is hereby amended to read as follows:

 

"4.  The   aggregate   number  of  shares  which  the Corporation  shall  have  authority  to issue is five million  (5,000,000)  shares,  one  ($.01)  cent  par value,  per share,  all of which shall be  designated Common Stock."

 

(B)      Article 5 is hereby amended to read as follows:

 

"5. The  Secretary of State of New York is designated as the agent of the  Corporation  upon  whom  process against  it may be  served.  The  Secretary  of State shall  mail  a  copy  of  any  process   against  the Corporation  which  may  be  served  upon  him to the Corporation  c/o  Elazar  Rabbani,  300  Park  Avenue South, New York, New York 10010."

 

(C)      Article 8 is hereby added to read as follows:

 

"8. The  Corporation  shall,  to the  fullest  extent permitted  by  the  Business  Corporation  Law of the State of New York, indemnify any and all persons whom it shall have power to indemnify from and against any and all of the expenses,  liabilities or other matter as  provided  under  Article  Seven  of the  Business Corporation Law of the State of New York."

 

(D)      Article 9 is hereby added to read as follows:

 

"9. (a) No contract or other transaction  between the Corporation  and  one or more  of its  directors,  or between the  Corporation  and any other  corporation, firm,  association  or other entity,  in which one or more of its directors  are directors or officers,  or are financially  interested,  shall be either void or voidable  for this  reason  alone or by reason  alone that such  director or  directors  are present at the meeting of the Board or of a committee thereof, which authorizes such contract or transaction,  or that his or their votes counted for such purposes:

 

(1)   If   the   effect   of   such   common directorship,   officership,   or  financial interest is  disclosed or known to the Board or  committee,  and the  Board or  committee authorizes such contract or transaction by a vote  sufficient  for such  purpose  without counting   the   vote  or   votes   of  such interested   director   or   directors,   or against,

 

(2) If such common directorship, officership or financial  interest is disclosed or known to  the   shareholders   entitled   to  vote thereon, and such contract or transaction is approved  by vote of the  shareholders.  For this purpose,  the shares of such interested director  or  directors  shall not be shares entitled to vote; or

 

(3) If the contract or  transaction  is fair and reasonable as to the  Corporation at the time  it  is  authorized  by  the  Board,  a committee or the shareholders.

 

(b) Common or interested  directors may be counted in determining  the presence of a quorum at a meeting of the  Board  or of a  committee  which  approves  such contract or transaction."

 

(E)      Article 10 is hereby added to read as follows: "10. The Board of Directors is  authorized  to alter, repeal or adopt by the  By-laws  of the  Corporation, but any By-law adopted by the Board may be amended or repealed  by  the   shareholders   entitled  to  vote thereon."

 

(F)      Article 11 is hereby added to read as follows:

 

"11.  No  holder  of any  shares  of  stock  of  this Corporation shall be entitled as of right to purchase or  subscribe  for any part of any shares of stock of the   Corporation   authorized   herein   or  of  any additional  shares of stock of any class to be issued by reason of any increase of the  authorized  capital stock of the Corporation, or of any warrants, options or  other  instruments  that  shall  confer  upon the holders   thereof  the  right  to  subscribe  for  or purchase or receive from the  Corporation  any shares of stock of any class which the Corporation may issue or  sell,   whether   or  not  the   same   shall  be exchangeable   for  any   shares   of  stock  of  the Corporation of any class, or to purchase or subscribe for  any   part  of  any   bonds,   certificates   of          indebtedness,           debenture or            other    securities

                                                            convertible or              exchangeable          into shares of stock of

                                                            any class of the                Corporation,           or to which           shall be

                                                            attached          or     appurtenant           any     options,          warrants or

                                                            other        instruments that shall confer upon the holders

                                                            of      such      obligations,             options,          warrants        or      other

                                                            instruments the right to subscribe for or purchase or

                                                            receive         from      the      Corporation          any     shares        of     its

                                                            capital            stock       of      any     class        or      classes         now    or

                                                            hereafter             authorized,              but      any     shares        of      stock

                                                            authorized          herein or any such additional                        authorized

                                                            issue of any shares of stock or any other                                securities

                                                            may    be     issued        and      disposed        of by       the      Board      of

                                                            Directors to such               persons,         firms,         corporations           or

                                                            associations,             and upon such terms and                conditions as

                                                            the      Board      of      Directors          may    in      their         discretion

                                                            determine,          without        offering any thereof on the same

                                                            term      or on any         terms       to the         shareholders           then of

                                                            record or to any class of shareholders."

 

5.       The 60 shares of Common Stock, par value $.10 presently issued and outstanding shall be changed into 460,000 shares of the Common Stock, $.01 par value, at the rate of 7,666 2/3 shares of new Common Stock for each share of old Common Stock.

 

6.       The foregoing  amendments  were  authorized by the vote of the holders of a majority of all  outstanding  shares  entitled to vote thereof at a meeting of shareholders held on the 13th day of March 1980.

 

IN WITNESS  THEREOF,  we have signed this  Certificate on the 13 day of March 1980 and we affirm the statements  contained  herein as true under penalty of perjury.

 

                                                                                                        /s/

 

                                                                                                        Elazar Rabbani, President

 

                                                                                                        /s/

 

                                                                                                        Barry W. Weiner, Secretary

 

 

 

CERTIFICATE OF AMENDMENT OF THE CERTIFICATE OF INCORPORATION

 

OF ENZO BIOCHEM, INC.

 

Under Section 805 of the Business Corporation Law

 

IT IS HEREBY CERTIFIED THAT:

 

FIRST: The name of the Corporation is ENZO BIOCHEM, INC.

 

SECOND: The certificate of incorporation was filed by the department of state on the 13th day of August, 1976.

 

THIRD:  The  amendments  of the  certificate  of  incorporation  of the Corporation affected by this certificate of amendment are as follows:

 

Article  4  of  the  certificate  of  incorporation,  relating  to  the authorized capital stock of the Corporation, is hereby amended to increase the presently existing one cent ($.01) par value common stock and to create a new class of preferred stock to read as follows:

 

"4. The total  number of shares of all  classes of stock which the  Corporation  shall have authority to issue is one hundred million (100,000,000) shares, divided into twenty-five million (25,000,000)  shares of Preferred Stock of one cent ($.01) par value per share, and seventy-five  million (75,000,000) shares of Common Stock of the par value of one cent ($.01) per share. Each share of Common Stock shall be entitled to one vote.

 

No  shareholder  shall have a preemptive  right to acquire any shares or  securities  of any class,  whether nor or hereafter authorized  which may at any time be  issued,  sold or offered for sale by the Corporation.

 

The  Preferred  Stock may be divided into and issued from time to time in one or more  series as may be fixed and  determined by the Board of Directors. The relative rights and preferences of the  Preferred  Stock of each series shall be such as shall be stated in any  resolution  or  resolutions  adopted  by the Board of Directors setting forth the designation of the series and fixing and determining the relative rights and preferences thereof,  any such  resolution  or  resolutions  being  herein called a  "Directors'  Resolution."  The Board of Directors is hereby  authorized to fix and determine such variations in the designations,   preferences,   and  relative,   participating, optional  or  other   special   rights   (including,   without limitation,  special voting rights,  of conversion into Common Stock or other  securities,  redemption  provisions or sinking fund  provisions)  as between series and between the
Preferred  Stock or any series  thereof and the Common  Stock, and the  qualifications,  limitations or  restrictions of such rights, all as shall be stated in a Directors' Resolution, and the shares of Preferred  Stock or any series  thereof may have full or limited  voting  powers,  or be without voting powers, all as shall be stated in a Directors' Resolution."

 

Article 10 of the  certificate  of  incorporation  of the  Corporation, relating  to the  power of the  Board of  Directors  to  alter,  repeal or adopt By-laws of the Corporation, is hereby amended to read as follows:

 

"10. The Board of Directors is authorized to alter,  repeal or adopt  By-Laws of the  Corporation.  Any  By-Laws  made by the directors  under the powers  conferred  hereby may be altered, amended or repealed by the  directors or by the  shareholders. Notwithstanding  the foregoing and anything  contained in this certificate  of  incorporation  to the  contrary,  ARTICLE  I, Sections 2 and 11, ARTICLE II, Sections 2, 11, 12, and 15, and ARTICLE V of the  By-Laws  shall not be  altered,  amended  or repealed  and no  provision  inconsistent  therewith  shall be adopted without the affirmative  vote of (i) the holders of at least 50% of the voting power of the then  outstanding  shares of  stock  entitled  to  vote  generally  in the  election  of directors,  voting  together  as a  single  class  and  (ii) a majority of such shares owned by persons not  affiliated  with an  Interested  Shareholder  (as defined in Article 14 of this certificate  of  incorporation)  provided  that notice of such proposed alteration, amendment, repeal or adoption is included in the notice of any special  meeting called for the taking of such  action.  Notwithstanding  any other  provisions  of this certificate of incorporation or the By-Laws of the Corporation (and not withstanding the fact that the lesser  percentage may be specified by law,  this  certificate  of  incorporation  or By-Laws of the  Corporation),  the affirmative vote of (i) the holders  of at  least  80% of the  voting  power  of the  then outstanding  shares or stock entitled to vote generally in the election of directors,  voting together as a single class, and (ii) a majority of such shares  beneficially  owned by persons not affiliated  with an Interested  Shareholder (as defined in Article 14 of this  certificate  of  incorporation),  shall be required to alter,  amend,  adopt any  provision  inconsistent with or repeal this Article 10."

 

The following is hereby added to the  certificate of  incorporation  as Article 12, relating to director's liability:

 

"12.  No director  of the  Corporation  shall be liable to the Corporation or its  shareholders for damages for any breach of duty in such capacity, provided that nothing contained in this Article
shall  eliminate or limit the liability of a director (i) if a judgment   or  other   final   adjudication   adverse  to  him establishes  that his acts or  omissions  were in bad faith or involved intentional  misconduct or a knowing violation of law or that he  personally  gained in fact a  financial  profit or other  advantage to which he was not legally  entitled or that his  acts  violated  Section  710 of  the  New  York  Business Corporation  Law or (ii) for any act or omission prior to July 8, 1988."

 

The following is hereby added to the  certificate of  incorporation  as Article 13, relating to classification of the Board of Directors:

 

"13. (a) The  Directors of the  Corporation,  other than those who may be elected by the  holders of any series of  Preferred Stock under specified circumstances, shall be classified, with respect to the time for which they severally hold office, into three classes, as nearly equal in number as possible, as shall be  provided  in the manner  specified  in the  By-Laws of the Corporation,  one class to be  originally  elected  for a term expiring at the annual meeting of  shareholders  to be held in 1989,  another  class  to be  originally  elected  for a  term expiring at the annual meeting of  shareholders  to be held in 1990,  and another class to be  originally  elected for a term expiring at the annual meeting of  shareholders  to be held in 1991,  with each class to hold office  until its  successor is elected  and   qualified.   At  each  annual  meeting  of  the shareholders of the  Corporation,  the successors of the class of  directors  whose  term  expires  at the  meeting  shall be elected  to hold  office  for a term  expiring  at the  annual meeting of  shareholders  held in the third year following the year of their  election.  Election of directors need not be by ballot unless the By-Laws of the Corporation so provide.

 

(b) Advance notice of shareholder nominations for the election of  directors  shall be given in the  manner  provided  in the By-Laws of the Corporation.

 

(c) Newly created directorships resulting from any increase in the  number of  directors  and any  vacancies  on the Board of Directors resulting from death, resignation, disqualification, removal or other cause shall be filled by the affirmative vote of a majority of the remaining  directors then in office, even though  less  than a quorum  of the  Board of  Directors.  Any director  elected in accordance  with the  preceding  sentence shall hold  office for the  remainder  of the full term of the class of directors in which the new  directorship  was created or the vacancy  occurred and until such  director's  successor shall have been  elected  and  qualified.  No  decrease in the number of directors, constituting the Board of Directors shall shorten the term of any incumbent director.

 

(d)  Subject  to the  rights of the  holders  of any Series of Preferred  Stock, any director may be removed from office only with cause and only by the affirmative vote of (1) the holders of  at  least  80%  of  the  combined   voting  power    of  the then-outstanding shares of stock entitled to vote generally in the election of directors,  voting  together as a single class and  (ii) a  majority  of such  shares  beneficially  owned by persons not  affiliated  with an  Interested  Shareholder  (as defined in Article 14 of this Certificate of Incorporation).

 

(e)  Notwithstanding  any other provisions of this certificate of  incorporation  or  the  By-Laws  of the  Corporation  (and notwithstanding  the  fact  that a  lesser  percentage  may be specified by law, this certificate of incorporation or By-Laws of the  Corporation),  the affirmative vote of (i) the holders of at  least  80% of the  combined  voting  power  of the then outstanding  shares of stock entitled to vote generally in the election of directors,  voting together as a single class, and (ii) a majority of such shares  beneficially  owned by persons not affiliated  with an Interested  Shareholder (as defined in Article 14 of this  certificate  of  incorporation),  shall be required to alter,  amend,  adopt any  provision  inconsistent with or repeal this Article 13."

 

The following is hereby added to the  certificate of  incorporation  as Article 14, relating to business combinations:

 

"14. (1) In addition to any  affirmative  vote required by law or this certificate of incorporation,  and except as otherwise expressly  provided  in  Section  (2) of this  Article  14,  a Business  Combination (as  hereinafter  defined) shall require the affirmative vote of (i) the holders of at least 80% of the voting power of the then  outstanding  shares of capital stock of the Corporation  entitled to vote generally in the election of directors (the "Voting Stock"), voting together as a single class, and (ii) a majority of such shares  beneficially  owned by persons not affiliated with the Interested  Shareholder (as hereinafter defined).  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.

 

(2) The provisions of Section (1) of this Article 14 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,   if  all  of  the  conditions specified  in either of the  following  paragraphs A and B are met or, in the case of a Business  Combination  not  involving the payment of  consideration  to the holders  of  outstanding   Voting  Stock,   if  the  condition specified in the following paragraph A is met:

 

(A)      The  Business  Combination  shall  have been approved  by a  majority  of the  Continuing Directors (as hereinafter defined).

 

(B)      All of the following  conditions  shall have been met:

 

(i)      The  aggregate  amount  of the cash and the Fair Market Value (as hereinafter defined) as of the  date  of  the  consummation  of the  Business

                                                            Combination             (the            "Consummation              Date")            of

                                                            consideration            other        than       cash to be           received         per

                                                            share by holders of common                 stock of the             Corporation

                                                            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  the Interested  Shareholder  for any  shares  of common stock of the Corporation  acquired by

                                                                                it        (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            in which it            became      an

                                                                                Interested Shareholder, whichever is higher;

                                                                                or

 

(b)      the Fair Market  Value per share of common stock of the  Corporation on the  Announcement  Date  or on the  date  on which the Interested  Shareholder  became an Interested  Shareholder  (such later date is referred  to  in  this  Article  14  as  the "Determination Date"), whichever is higher.

 

(ii)     The  aggregate  amount  of the cash and the Fair Market Value as of the Consummation Date of  consideration  other than cash to be received per share by  holders  of shares  of any  other  class 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 of outstanding   Voting   Stock,   whether  or  not  the Interested  Shareholder  has previously  acquired any shares of a particular class of Voting Stock);

 

(a)      (if     applicable)    the highest  per  share  price   (including  any brokerage  commissions,  transfer  taxes and soliciting   dealers'   fees)  paid  by  the Interested  Shareholder  for any  shares  of such class of Voting  Stock  acquired  by it (1) within the two-year  period  immediately prior to the Announcement Date or (2) in the transaction in which it became an Interested Shareholder, whichever is higher;

 

(b)      (if     applicable)    the highest  preferential  amount  per  share to which the holders of shares of such class 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 of Voting  Stock on the Announcement  Date  or on the  Determination Date, whichever is higher.

 

                                                                (iii)          The consideration to be received by

                                                            holders of a particular                     class of outstanding                 Voting

                                                            Stock       shall        be in cash or in the                   same     form as the

                                                            Interested Shareholder has previously paid for shares

                                                            of such        class of          Voting       Stock.        If the          Interested

                                                            Shareholder          has      paid       for      shares        of any        class of

                                                            Voting Stock with varying forms of consideration, the

                                                            form of consideration                 for such class of Voting Stock

                                                            shall be either                cash or the form used to acquire the

                                                            largest          number      of      shares        of such        class of Voting

                                                            Stock previously acquired by it.

 

(iv)     After  the  Determination  Date and prior   to  the   consummation   of   such   Business Combination;  (a) except as approved by a majority of the  Continuing  Directors,  there shall have been no failure  to  declare  and  pay  at the  regular  date therefor any full quarterly dividends (whether or not cumulative)  payable in accordance  with the terms of any  outstanding  Voting Stock;  (b) there shall have been (1) no reduction in the annual rate of dividends paid on the common stock of the  Corporation  (except as necessary to any subdivision of the common stock), except as approved  by a majority  of the  Continuing 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 common stock of the

                                                            Corporation,           unless the failure so to increase                             such

                                                            annual          rate        is      approved       by     a     majority         of     the

                                                            Continuing           Directors;             and      (c)       such        Interested

                                                            Shareholder          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              Shareholder            becoming         an        Interested

                                                            Shareholder.

 

(v)      After the Determination  Date, such Interested  Shareholder  shall not have  received the

                                                            benefit,                 directly               or          indirectly                   (except

                                                            proportionately              as a       shareholder),             of      any     loans,

                                                            advances,         guarantees,           pledges        or      other       financial

                                                            assistance or any tax credits or other tax advantages

                                                            provided by the Corporation,                     whether in anticipation

                                                            of or in connection with such Business Combination or

                                                            otherwise.

 

(vi)     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  all shareholders  of the  Corporation  at  least  30 days prior   to  the   documentation   of  such   Business Combination (whether or not such proxy or information statement  is required to be mailed  pursuant to such Act or subsequent provisions).

 

                                                                                (vii)             Such Interested             Shareholder          shall

                                                            not have made any major changes in the                          Corporation's

                                                            business         or equity          capital          structure           without        the

                                                            approval of a majority of the Continuing Directors.

 

                                       (3)                For purposes of this Article 14;

 

(A)      The term "Business  Combination"  shall mean any of the  transactions  or series of  transactions  which is referred  to in any one or more of the clauses (i) through (v) below.

 

(i)      any merger or  consolidation of the Corporation  or  any   Subsidiary   (as   hereinafter defined) with (a) any  Interested  Shareholder or (b) any  other  Corporation  (whether  or not  itself  an Interested  Shareholder)  which  is,  or  after  such merger or  consolidation  would be, an Affiliate  (as hereinafter defined) of an Interested Shareholder; or

 

(ii)     any    sale,    lease,    exchange, mortgage,  pledge,  transfer or other disposition (in one  transaction or a series of  transactions)  to or with any  Interested  Shareholder or any Affiliate of any  Interested  Shareholder  of  any  assets  of the Corporation  or any  Subsidiary  having an  aggregate Fair Market Value of $1,000,000 or more; or

 

                                                                                (iii)              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

                                                            Shareholder            or      any     Affiliate            of     any      Interested

                                                            Shareholder in exchange for cash, securities or other

                                                            property         (or      a     combination            thereof)            having       an

                                                            aggregate Fair Market Value of $1,000,000 or more; or

 

(iv)     the   adoption   of  any   plan  or proposal for the  liquidation  or  dissolution of the Corporation proposed by or on behalf of an Interested Shareholder   or  any  Affiliate  of  any  Interested Shareholder; or

 

(v)      any  reclassification of securities

                                                            (including               any        reverse             stock            split),               or

                                                            recapitalization of the Corporation, or any merger or

                                                            consolidation            of      the      Corporation          with      any of its

                                                            Subsidiaries or any other transaction (whether or not

                                                            with or into or               otherwise         involving         an     Interested

                                                            Shareholder)           which      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           Shareholder          or any Affiliate of any

                                                            Interested Shareholder.

 

(B)      A "person" shall mean any individual,  firm, corporation or other entity.

 

(C)      "Interested   Shareholder"  shall  mean  any person (other than the Corporation or any Subsidiary and other than any  profit-sharing,  employee  stock  ownership or other employee  benefit plan of the Corporation or any Subsidiary or any trustee of or fiduciary with respect to any such plan when acting in such capacity) who or which:

 

(i)      is the beneficial  owner,  directly or indirectly, of more than 9% of the voting power of the outstanding Voting Stock;

 

(ii)     is an Affiliate  or  Associate  (as hereinafter  defined) 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 9% or more of the voting power of the then outstanding Voting Stock; or

 

                                                                                (iii)              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              Shareholder,             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;

 

                                        provided,         however,        that        the term          "Interested            Shareholder"

                                        shall not include any person who, but for this proviso,                                         would

                                        be an Interested Shareholder on June 1, 1988.

 

(D)      A person shall be a  "beneficial  owner"  of any share of 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  pursuant to any  agreement,  arrangement  or understanding; or

 

                                                                                (iii)              which        are         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.


(E)      For the  purposes of  determining  whether a person is an Interested  Shareholder pursuant to paragraph (C) of this  Section  (3),  the  number of shares of Voting  Stock deemed to be  outstanding  shall  include  shares deemed owned through  application  of paragraph (D) 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.

 

(F)      "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 10, 1987.

 

(G)      "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  Shareholder  set forth  in  paragraph   (C)  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.

 

(H)      "Continuing  Director"  means any  member of the Board of Directors of the Corporation (the "Board"), while such person is a member of the Board, who is unaffiliated with the Interested Shareholder and was a member of the Board prior to the time that the Interested Shareholder, and any successor of  a  Continuing   Director  who  is  unaffiliated  with  the Interested   Shareholder  and  is  recommended  to  succeed  a Continuing Director by a majority of Continuing Directors then on the Board.

 

(I)      "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 the New  York  Stock  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 any such exchange,  the highest closing sales price or bid  quotation  with respect to a share of such stock during the 30-day period preceding the date in question on the National  Association of Securities  Dealers,  Inc.  Automated Quotations  System 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 in good faith by a majority of the Disinterested  Directors; 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 in good faith by a majority of the Continuing Directors;

 

(J)      In the event of any Business  Combination in which the  Corporation  survives,  the  phrase  "Consideration other than cash to be received" as used in paragraph  B(i) and (ii) of  Section  (2) of this  Article 14 shall  includes  the shares of common stock of the Corporation and/or the shares of any other class of  outstanding  Voting Stock  retained by the holders of such shares.

 

(4) A majority of the Continuing  Directors of the Corporation shall have the power and duty to determine for the purposes of this  Article  14 on the  basis of  information  known to them after  reasonable   inquiry,   (A)  whether  a  person  is  an Interested  Shareholder,  (B) the  number  of shares of Voting Stock  beneficially  owned by any person, (c) whether a person is an  Affiliate  or  Associate  of  another,  (D)  whether  a transaction or a series of transactions constitutes a Business Combination,  and (E) whether the assets which are the subject of any Business  Combination  have, or the consideration to be received  for the  issuance or transfer of  securities  by the Corporation or any Subsidiary in any Business Combination has, an aggregate Fair Market Value of $1,000,000 or more. Any such determination   made  in  good  faith  shall  be  binding  and conclusive on all parties.

 

(5) Nothing contained in this Article 14 shall be construed to relieve  any   Interested   Shareholder   from  any  fiduciary obligation imposed by law.

 

(6) The fact that any provision complies with paragraph (B) of Section  (2) of this  Article  14 shall  not be  construed  to impose any fiduciary duty obligation or  responsibility on the Board,  or  any  member  thereof,  to  approve  such  Business Combination  or  recommend  its  adoption  or  approval to the shareholders  of the  Corporation  nor shall  such  compliance limit, prohibit or otherwise restrict in any manner the Board, or any  member  thereof,  with  respect to  evaluations  of or actions  and  responses  taken with  respect to such  Business Combination.

 

(7)  Notwithstanding  any other provisions of this certificate of  incorporation  or  the  By-Laws  of the  Corporation  (and notwithstanding  the  fact  that a  lesser  percentage  may be specified by law,  this  certificate  of  incorporation  or by By-Laws of the  Corporation),  the affirmative vote of (a) the holders  of 80%  or  more  of the  voting  power  of the  then outstanding  Voting Stock,  voting together as a single class, and  (b) a  majority  of such  shares  beneficially  owned  by persons not affiliated with the Interested Shareholder,  shall be required to alter, amend or repeal, or adopt any provisions inconsistent  with, this Article 14, provided,  however,  that this Section (7) shall not apply to any alteration, amendment, repeal or adoption unanimously recommended by the Board if all such  directors  are persons who would be eligible to serve as Continuing  Directors  within  the  meaning  of  Section  (3), paragraph H of this Article 14."

 

FOURTH: The foregoing amendments of the certificate of incorporation of the Corporation were authorized by the vote at a meeting of the Board of Directors of the Corporation, followed by the vote of the holders of at least a majority of all of the outstanding shares of the Corporation entitled to vote on the said amendments of the certificate of incorporation.

 

IN WITNESS  WHEREOF,  we have  subscribed this document on the date set forth below and do hereby  affirm,  under the  penalties  of  perjury,  that the statements contained therein have been examined by us and are true and correct.

 

Date:  July 21, 1988

 

                                                                                                    /s/

 

                                                                                                    Dr. Elazar Rabbani, President

 

                                                                                                    /s/

 

                                                                                                    Barry W. Weiner, Secretary