RESTATED
                          CERTIFICATE OF INCORPORATION
 
                                       OF
 
                     OLD REPUBLIC INTERNATIONAL CORPORATION
 
 
 
     The Board of  Directors,  in a procedure  authorized  by Section 245 of the
General  Corporation  Law of  Delaware,  approved  and adopted at a meeting held
August 12,  2004 the  following  Restated  Certificate  of  Incorporation.  This
document only restates and  integrates and does not further amend the provisions
of the Corporation's  Certificate of Incorporation duly filed with the Secretary
of State of Delaware on March 6, 1969 as heretofore amended or supplemented, and
there is no  discrepancy  between those  provisions  and the  provisions of this
restated certificate.
 
FIRST:   The  name of the corporation is Old Republic International Corporation.
 
SECOND:  The  address of its registered office in the State of  Delaware is 2711
         Centerville  Road, Suite 400 in the City of Wilmington 19808, County of
         New Castle. The  name  of its  registered agent  at such address is The
         Prentice-Hall Corporation System, Inc.
 
THIRD:   The nature of the business or purposes to be conducted or promoted are:
 
         To  acquire,  own and  dispose of the whole or any part of the  capital
         stock, securities, assets or obligations of other corporations; and
 
         To engage in any lawful act or activity for which  corporations  may be
         organized under the General Corporation Law of Delaware.
 
FOURTH:  The total  number of shares of all  classes of capital  stock which the
         Corporation  shall have authority to issue is Six Hundred  Seventy-five
         Million (675,000,000) shares divided into three classes as follows:
 
         Seventy-Five  Million (75,000,000) shares of Preferred Stock of the par
         value of one cent ($.01) per share (Preferred Stock).
 
         Five Hundred  Million  (500,000,000)  shares of Common Stock of the par
         value of $1.00 per share (Common Stock).
 
         One Hundred Million (100,000,000) shares of Class B Common Stock of the
         par value of $1.00 per share (Class B Common Stock).
 
         The   designations,   powers,   preferences   and   rights,   and   the
         qualifications,  limitations  or  restrictions  of the above classes of
         stock are as follows:
<PAGE>
 
                                   DIVISION I
 
                                 Preferred Stock
 
1.       The Board of Directors is expressly  authorized  at any time,  and from
time to time, to issue shares of Preferred Stock in one or more series,  and for
such consideration as the Board may determine,  with such voting powers, full or
limited but not to exceed one vote per share, or without voting powers, and with
such designations,  preferences and relative,  participating,  optional or other
special rights,  and  qualifications,  limitations or restrictions  thereof,  as
shall be  stated  in the  resolution  or  resolutions  providing  for the  issue
thereof,  and as are not stated in this  Certificate  of  Incorporation,  or any
amendment  thereto.  All  shares of any one  series  shall be of equal  rank and
identical in all respects.
 
2.       No  dividend  shall be paid or  declared  on any  particular  series of
Preferred  Stock  unless  dividends  shall be paid or  declared  pro rata on all
shares of  Preferred  Stock at the time  outstanding  of each other series which
ranks equally as to dividends with such particular series.
 
3.       Unless and except to the extent  otherwise  required by law or provided
in the resolution or  resolutions of the Board of Directors  creating any series
of Preferred  Stock  pursuant to this  Division I, the holders of the  Preferred
Stock shall have no voting  power with respect to any matter  whatsoever.  In no
event shall the Preferred  Stock be entitled to more than one vote in respect of
each share of stock. Subject to the protective conditions or restrictions of any
outstanding  series of Preferred  Stock,  any amendment to this  Certificate  of
Incorporation  which shall increase or decrease the authorized  capital stock of
any class or classes may be adopted by the affirmative  vote of the holders of a
majority of the outstanding shares of the voting stock of the Corporation.
 
4.       Shares of Preferred Stock redeemed,  converted,  exchanged,  purchased,
retired  or  surrendered  to the  Corporation,  or which  have been  issued  and
reacquired in any manner,  shall upon compliance with any applicable  provisions
of the  General  Corporation  Law of the State of  Delaware,  have the status of
authorized  and unissued  shares of  Preferred  Stock and may be reissued by the
Board of Directors as part of the series of which they were originally a part or
may be  reclassified  into and  reissued as part of a new series or as a part of
any other series,  all subject to the protective  conditions or  restrictions of
any outstanding series of Preferred Stock.
 
 
                                   DIVISION II
 
                      Common Stock and Class B Common Stock
 
1.       Dividends.  Subject to the preferential  rights, if any,  applicable to
shares of the Preferred  Stock and subject to applicable  requirements,  if any,
with respect to the setting  aside of sums for  purchase,  retirement or sinking
funds for the Preferred  Stock,  the holders of the Common Stock and the Class B
Common stock shall be entitled to receive to the extent  permitted by law,  such
dividends  as may be  declared  from  time to time by the  Board  of  Directors;
provided  that whenever a cash dividend is paid to the holders of Class B Common
Stock, the Corporation  shall also pay to the holders of the Common Stock a cash
dividend  per share at least  equal to the cash  dividend  per share paid to the
holders of the Class B Common Stock and further  provided  that the  Corporation
may pay cash  dividends  to the  holders of the  Common  Stock in excess of cash
dividends  paid,  or without  paying cash  dividends,  to holders of the Class B
Common Stock.
 
                                      -2-
<PAGE>
 
2.       Liquidation.  In the event of the voluntary or involuntary liquidation,
dissolution,  distribution  of assets or  winding up of the  Corporation,  after
distribution in full of the preferential  amounts,  if any, to be distributed to
the holders of shares of the  Preferred  Stock,  holders of the Common Stock and
the Class B Common Stock shall be entitled to receive all the  remaining  assets
of the  Corporation of whatever kind available for  distribution to stockholders
ratably in  proportion  to the number of shares of Common  Stock and the Class B
Common Stock held by them, respectively.
 
3.       Voting  Rights.  Except  as may be  otherwise  required  by law or this
Certificate  of  Incorporation,  each holder of the Common  Stock shall have one
vote in respect of each share of Common Stock held by him of record on the books
of the Corporation on all matters voted upon by the stockholders and each holder
of the Class B Common Stock shall have  one-tenth  (1/10) of one vote in respect
of each share of Class B Common  Stock held by him of record on the books of the
Corporation  on all matters  voted upon by the  stockholders;  provided that the
holders of the Common Stock and the Class B Common Stock shall vote  together as
a single class.
 
4.       Definition.   Notwithstanding   the  provisions  of  the  Designations,
preferences,  and rights of Series A Junior  Participating  Preferred Stock, the
Designations,  preferences and rights of Series G-3 Convertible  Preferred Stock
for the purposes of the Corporation's Restated Certificate of Incorporation,  as
amended, the term "Common Stock" shall mean Common Stock as defined in the first
paragraph of this Article  FOURTH and shall not include the Class B Common Stock
of the  Corporation,  provided,  however,  that for the  purposes of the section
titled  "Voting,"  the term  "Common  Stock" shall mean both the Common Stock as
defined in the first  paragraph  of this  Article  FOURTH and the Class B Common
Stock of the Corporation.
 
 
                                  DIVISION III
 
                        Elimination of Preemptive Rights
 
         No holder of stock of any class of the Corporation shall be entitled as
a matter of right to purchase or subscribe for any part of any unissued stock of
any  class,  or of any  additional  stock of any class of  capital  stock of the
Corporation, or of any bonds, certificates of indebtedness, debentures, or other
securities  convertible  into  stock  of  the  Corporation,   now  or  hereafter
authorized, but any such stock of other securities convertible into stock may be
issued and disposed of pursuant to  resolution by the Board of Directors to such
persons,  firms,  corporations or associations  and upon such terms and for such
consideration (not less than the par value or stated value thereof) as the Board
of Directors  in the  exercise of its  discretion  may  determine  and as may be
permitted by law without action by the stockholders.
 
                     DESIGNATIONS, PREFERENCES AND RIGHTS OF
                  SERIES A JUNIOR PARTICIPATING PREFERRED STOCK
 
1.       Designation.
 
         The  shares of such  series  shall be  designated  as  "Series A Junior
Participating  Preferred Stock" (the "Series A Preferred  Stock") and the number
of shares  constituting  the Series A Preferred Stock shall be 10,000,000;  such
number of shares may be increased or  decreased  by  resolution  of the Board of
Directors; provided that no decrease shall reduce the number of shares of Series
A Preferred  Stock to a number  less than the number of shares then  outstanding
plus the number of shares reserved for issuance upon the exercise of outstanding
 
                                      -3-
<PAGE>
 
options,  rights,  or warrants or upon conversion of any outstanding  securities
issued by the Corporation convertible into Series A Preferred Stock.
 
2.       Dividends and Distributions.
 
         (a) Subject to the rights of the holders of any shares of any series of
Preferred  Stock (or any similar stock) ranking prior and superior to the Series
A Preferred  Stock with respect to dividends,  the holders of shares of Series A
Preferred  Stock, in preference to the holders of Common Stock,  par value $1.00
per share (the  "Common  Stock"),  of the  Corporation,  and of any other junior
stock,  shall be  entitled  to  receive,  when and if  declared  by the Board of
Directors,  out of funds legally available for the purpose,  quarterly dividends
payable in cash on the first day of March, June,  September and December in each
year (each such date being referred to herein as a "Quarterly  Dividend  Payment
Date"),  commencing on the first Quarterly Dividend Payment Date after the first
issuance of a share or fraction  of a share of Series A Preferred  Stock,  in an
amount per share (rounded to the nearest cent) equal to the greater of (a) $1 or
(b) subject to the provision for adjustment  hereinafter set forth, 100 time the
aggregate per share amount  (payable in kind) of all non-cash  dividend or other
distributions,  other  than a dividend  payable  in shares of Common  Stock or a
subdivision of the outstanding  shares of Common Stock (by  reclassification  or
otherwise),  declared  on the  Common  Stock  since  the  immediately  preceding
Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend
Payment  Date,  since the first  issuance of any share or fraction of a share of
Series A Preferred Stock. In the event the Corporation shall at any time declare
or pay any dividend on the Common Stock  payable in shares of Common  Stock,  or
effect a subdivision or combination or consolidation  of the outstanding  shares
of Common Stock (by  reclassification or otherwise than by payment of a dividend
in shares of Common  Stock) into a greater or lesser  number of shares of Common
Stock,  then in each such case the amount to which holders of shares of Series A
Preferred Stock were entitled  immediately  prior to such event under clause (b)
of the  preceding  sentence  shall be adjusted by  multiplying  such amount by a
fraction,  the  numerator  of which is the  number of  shares  of  Common  Stock
outstanding  immediately  after such event and the  denominator  of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.
 
         (b) The  Corporation  shall declare a dividend or  distribution  on the
Series  A  Preferred  Stock  as  provided  in  paragraph  (a)  of  this  Section
immediately  after it declares a dividend or  distribution  on the Common  Stock
(other than a dividend payable in shares of Common Stock); provided that, in the
event no dividend or  distribution  shall have been declared on the Common Stock
during the period  between  any  Quarterly  Dividend  Payment  Date and the next
subsequent  Quarterly  Dividend  Payment Date, a dividend of $1 per share on the
Series A  Preferred  Stock  shall  nevertheless  be payable  on such  subsequent
Quarterly Dividend Payment Date.
 
         (c) Dividends  shall begin to accrue and be  cumulative on  outstanding
shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding  the date of issue of such  shares,  unless  the date of issue of such
shares is prior to the  record  date for the first  Quarterly  Dividend  Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such  shares,  or unless the date of issue is a  Quarterly  Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Preferred  Stock entitled to receive a quarterly  dividend
and before such Quarterly  Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative  from such Quarterly  Dividend
Payment Date.  Accrued but unpaid  dividends shall not bear interest.  Dividends
paid on the shares of Series A Preferred  Stock in an amount less than the total
amount of such dividends at the time accrued and payable on such shares shall be
allocated pro rata on a  share-by-share  basis among all such shares at the time
outstanding.  The Board of Directors may fix a record date for the determination
 
                                      -4-
<PAGE>
 
of holders of shares of Series A Preferred  Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall not be more
than 60 days prior to the date fixed for the payment thereof.
 
3.       Voting Rights.
 
         The  holders  of shares  of Series A  Preferred  Stock  shall  have the
following voting rights:
 
         (a) Except as provided in  paragraph  (c) of this Section 3 and subject
to the provisions for adjustment  hereinafter set forth,  each share of Series A
Preferred  Stock shall  entitle  the holder  thereof to 100 votes on all matters
submitted to a vote of the stockholders of the Corporation.
 
         (b) Except as  otherwise  provided   herein or by law,  the  holders of
shares of Series A  Preferred  Stock and the  holders of shares of Common  Stock
shall  vote  together  as  one  class  on all  matters  submitted  to a vote  of
stockholders of the Corporation.
 
         (c) (i) If, on the date used to  determine  stockholders  of record for
any  meeting  of  stockholders  for the  election  of  directors,  a default  in
preference  dividends  (as  defined in  subparagraph  (v) below) on the Series A
Preferred  Stock shall exist,  the holders of the Series A Preferred Stock shall
have the right,  voting as a class as described in  subparagraph  (ii) below, to
elect two directors  (in addition to the directors  elected by holders of Common
Stock of the  Corporation).  Such right may be  exercised  (a) at any meeting of
stockholders for the election of directors or (b) at a meeting of the holders of
shares of  Voting  Preferred  Stock (as  hereinafter  defined),  called  for the
purpose  in  accordance  with the  By-Laws  of the  Corporation,  until all such
cumulative  dividends  (referred to above) shall have been paid in full or until
non-cumulative dividends have been paid regularly for at least one year.
 
              (ii) The right of the holders of Series A Preferred Stock to elect
two  directors as described  above,  shall be exercised as a class  concurrently
with the  rights of holders of any other  series of  Preferred  Stock upon which
voting  rights  to  elect  such  directors  have  been  conferred  and are  then
exercisable. The Series A Preferred Stock and any additional series of Preferred
Stock  which the  Corporation  may issue and which may  provide for the right to
vote with the foregoing series of Preferred Stock are  collectively  referred to
herein as "Voting Preferred Stock."
 
              (iii) Each  director  elected  by the  holders of shares of Voting
Preferred  Stock  shall be  referred  to herein  as a  "Preferred  Director."  A
Preferred  Director so elected  shall  continue to serve as such  director for a
term of one  year;  except  that upon any  termination  of the right of all such
holders to vote as a class of  Preferred  Directors,  the term of office of such
directors shall terminate.  Any Preferred  Director may be removed by, and shall
not be removed except by, the vote of the holders of record of a majority of the
outstanding  shares of Voting  Preferred  Stock  then  entitled  to vote for the
election of directors,  present (in person or by proxy) and voting together as a
single  class (a) at a meeting of the  stockholders,  or (b) at a meeting of the
holders of shares of such  Voting  Preferred  Stock;  called for the  purpose in
accordance with the By-laws of the Corporation, or (c) by written consent signed
by the holders of a majority of the then outstanding  shares of Voting Preferred
Stock then entitled to vote for the election of directors,  taken  together as a
single class.
 
              (iv) So long  as a  default  in any  preference  dividends  on the
Series A  Preferred  Stock  shall  exist or the  holders of any other  series of
Voting Preferred Stock shall be entitled to elect Preferred  Directors,  (a) any
 
                                      -5-
<PAGE>
 
vacancy in the office of a Preferred  Director may be filled (except as provided
in the following clause (b)) by an instrument in writing signed by the remaining
Preferred  Directors and filed with the  Corporation  and (b) in the case of the
removal of any  Preferred  Director,  the  vacancy  may be filled by the vote or
written consent of the holders of a majority of the outstanding shares of Voting
Preferred Stock then entitled to vote for the election of directors  present (in
person or by proxy) and voting  together  as a single  class at such time as the
removal shall be effected. Each director appointed as aforesaid by the remaining
Preferred  Director shall be deemed,  for all purposes hereof, to be a Preferred
Director.  Whenever  (1) no  default  in  preference  dividends  on the Series A
Preferred  Stock  shall  exist  and (2) the  holders  of other  series of Voting
Preferred  Stock shall no longer be entitled to elect such Preferred  Directors,
then  the  number  of  directors  constituting  the  Board of  Directors  of the
Corporation shall be reduced by two.
 
              (v) For purposes  hereof,  a "default in preference  dividends" on
the Series A  Preferred  Stock  shall be deemed to have  occurred  whenever  the
amount of cumulative and unpaid  dividends on the Series A Preferred Stock shall
be  equivalent  to  six  full  quarterly  dividends  or  more  (whether  or  not
consecutive),  and,  having so occurred,  such default  shall be deemed to exist
thereafter until, but only until, all cumulative  dividends on all shares of the
Series A Preferred Stock then outstanding  shall have been paid through the last
Quarterly  Dividend  Payment  Date or  until,  but  only  until,  non-cumulative
dividends have been paid regularly for at least one year.
 
         (d) Except as set forth herein (or as otherwise  required by applicable
law),  holders  of Series A  Preferred  Stock  shall  have no general or special
voting  rights and their  consent shall not be required for taking any corporate
action.
 
4.       Certain Restrictions.
 
         (a) Whenever  quarterly  dividends or other dividends or  distributions
payable on the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared,  on shares of Series A Preferred Stock  outstanding  shall have
been paid in full, the Corporation shall not:
 
              (i) declare or pay dividends, or make any other distributions,  on
any shares of stock ranking junior (either as to dividends or upon  liquidation,
dissolution or winding up) to the Series A Preferred Stock;
 
              (ii) declare or pay dividends, or make any other distributions, on
any  shares  of  stock  ranking  on a parity  (either  as to  dividends  or upon
liquidation,  dissolution  or  winding  up) with the Series A  Preferred  Stock,
except  dividends  paid  ratably  in the Series A  Preferred  Stock and all such
parity stock on which  dividends  are payable or in arrears in proportion to the
total amounts to which the holders of all such shares are then entitled;
 
              (iii)  redeem or purchase or otherwise  acquire for  consideration
shares of any stock ranking junior (either as to dividends or upon  liquidation,
dissolution  or winding up) to the Series A Preferred  Stock,  provided that the
Corporation may at any time redeem,  purchase or otherwise acquire shares of any
such junior stock in exchange for shares of any stock of the Corporation ranking
junior (either as to dividends or upon  dissolution,  liquidation or winding up)
to the Series A Preferred Stock; or
 
              (iv) redeem or purchase or otherwise acquire for consideration any
shares of Series A Preferred  Stock,  or any shares of stock ranking on a parity
 
                                      -6-
<PAGE>
 
with the Series A Preferred  Stock,  except in accordance  with a purchase offer
made in writing or by  publication  (as determined by the Board of Directors) to
all  holders of such  shares  upon such terms as the Board of  Directors,  after
consideration of the respective  annual dividend rates and other relative rights
and  preferences of the respective  series and classes,  shall determine in good
faith will result in fair and equitable treatment among the respective series or
classes.
 
         (b) The Corporation  shall not permit any subsidiary of the Corporation
to purchase or otherwise  acquire for  consideration  any shares of stock of the
Corporation unless the Corporation could, under paragraph (a) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.
 
5.       Reacquired Shares.
 
         Any shares of Series A Preferred Stock purchased or otherwise  acquired
by the  Corporation  in any manner  whatsoever  shall be retired  and  cancelled
promptly  after the  acquisition  thereof.  All such  shares  shall  upon  their
cancellation become authorized but unissued shares of Preferred Stock and may be
reissued as part of a new series of Preferred  Stock  subject to the  conditions
and   restrictions  on  issuance  set  forth  herein,   in  the  Certificate  of
Incorporation,  or in any other Certificate of Designations creating a series of
Preferred Stock or any similar stock or as otherwise required by law.
 
6.       Liquidation, Dissolution or Winding Up.
 
         (a) Subject to the prior and  superior  rights of holders of any shares
of any series of  Preferred  Stock  ranking  prior and superior to the shares of
Series A Preferred Stock with respect to rights upon liquidation, dissolution or
winding  up  (voluntary  or  otherwise),  no  distribution  shall be made to the
holders  of shares of stock  ranking  junior  (either  as to  dividends  or upon
liquidation,  dissolution or winding up) to the Series A Preferred Stock unless,
prior  thereto,  the  holders of shares of Series A  Preferred  Stock shall have
received  $100 per share,  plus an amount equal to accrued and unpaid  dividends
and distributions thereon,  whether or not declared, to the date of such payment
(the  "Series A  Liquidation  Preference").  Following  the  payment of the full
amount of the Series A Liquidation Preference, no additional distributions shall
be made to the  holders  of shares of Series A  Preferred  Stock  unless,  prior
thereto, the holders of shares of Common Stock shall have received an amount per
share (the "Capital  Adjustment") equal to the quotient obtained by dividing (i)
the  Series  A  Liquidation  Preference  by (ii) 100  (the  "Adjusted  Number").
Following the payment of the full amount of the Series A Liquidation  Preference
and the  Capital  Adjustment  in respect of all  outstanding  shares of Series A
Preferred  Stock and Common Stock,  respectively,  holders of Series A Preferred
Stock and holders of Common Stock shall receive their ratable and  proportionate
share of the remaining  assets to be  distributed in the ratio of the Adjustment
Number to 1 with  respect to such  Preferred  Stock and Common  Stock,  on a per
share basis, respectively.
 
         (b) In the  event,  however,  that  there  are  not  sufficient  assets
available to permit  payment in full of the Series A Liquidation  Preference and
the  liquidation  preferences  of all other series of preferred  stock,  if any,
which rank on a parity with the Series A Preferred  Stock,  then such  remaining
assets shall be distributed  ratably to the holders of Series A Preferred  Stock
and the  holders  of such  parity  shares  in  proportion  in  their  respective
liquidation  preferences.  In the event,  however, that there are not sufficient
assets available to permit payment in full of the Capital Adjustment,  then such
remaining assets shall be distributed ratably to the holders of Common Stock.
 
                                      -7-
<PAGE>
 
7.       Consolidation, Merger, etc.
 
         In case the  Corporation  shall enter into any  consolidation,  merger,
combination  or other  transaction  in which  the  shares  of  Common  Stock are
exchanged for or changed into other stock or  securities,  cash and/or any other
property,  then in any such case each share of Series A Preferred Stock shall at
the same time be  similarly  exchanged  or  changed  into an amount  per  share,
subject to the  provisions for adjustment  hereinafter  set forth,  equal to 100
times the aggregate amount of stock, securities,  cash and/or any other property
(payable  in kind),  as the case may be,  into  which or for which each share of
Common Stock is changed or exchanged.  In the event the Corporation shall at any
time declare or pay any dividend on the Common Stock payable in shares of Common
Stock,  or  effect  a  subdivision  or  combination  or   consolidation  of  the
outstanding  shares of Common Stock (by  reclassification  or otherwise  than by
payment of dividend in shares of Common  Stock) into a greater or lesser  number
of shares of Common  Stock,  then in each such case the  amount set forth in the
preceding  sentence with respect to the exchange or change of shares of Series A
Preferred Stock shall be adjusted by multiplying such amount by a fraction,  the
numerator  of  which  is the  number  of  shares  of  Common  Stock  outstanding
immediately  after  such  event and the  denominator  of which is the  number of
shares of Common Stock that were outstanding immediately prior to such event.
 
8.       No Redemption.
 
         The shares of Series A Preferred Stock shall not be redeemable.
 
9.       Ranking.
 
         The Series A Preferred  Stock shall  rank,  with  respect to payment of
dividends  and the  distribution  of  assets,  junior to all series of any other
class of the Corporation's Preferred Stock.
 
10.      Amendment.
 
         The  Certificate  of  Incorporation  of the  Corporation  shall  not be
amended  in any  manner  which  would  materially  alter or change  the  powers,
preferences  or special  rights of the Series A Preferred  Stock so as to affect
them  adversely  without  the  affirmative  vote  of  the  holders  of at  least
two-thirds  of the  outstanding  shares  of  Series A  Preferred  Stock,  voting
together as a single class.
 
                     DESIGNATIONS, PREFERENCES AND RIGHTS OF
                     SERIES G-3 CONVERTIBLE PREFERRED STOCK
 
1.       Designation, Par Value, Amount.
 
         1,500,000  shares of  Preferred  Stock of the  Corporation,  with a par
value of $.01 per share,  are hereby  constituted as a series of Preferred Stock
designated  as "Series G-3  Convertible  Preferred  Stock"  (hereinafter  called
"Series G-3 Preferred Stock").
 
2.       Transferability.
 
         The shares of Series G-3 Preferred  Stock shall not be  transferable by
the  holder  thereof  otherwise  than by will or under the laws of  descent  and
distribution.  In the event that any shares of Series  G-3  Preferred  Stock are
transferred  by will or under  the laws of  descent  and  distribution  and such
shares of Series G-3 Preferred  Stock are not  thereafter  converted into Common
 
                                      -8-
<PAGE>
 
Stock  pursuant to the provisions of paragraphs 6 and 7, the  Corporation  shall
have  the  right  to  redeem  such  shares  of  Series  G-3  Preferred  Stock so
transferred pursuant to the following provisions:
 
         (a) At any time after six  months  from the date of death of the holder
which gave rise to such transfer,  the Corporation  shall have the right, at its
sole option and  election,  to redeem all of such shares of Series G-3 Preferred
Stock so transferred by will or under the laws of descent and  distribution at a
redemption  price per share equal to 95% of the audited  book value per share of
the  Common  Stock as of the  last day of the  latest  full  fiscal  year of the
Corporation,  plus an amount  equal to all  accrued  and  unpaid  dividends  and
distributions  thereon (the sum being hereinafter referred to as the "Redemption
Price"),  whether or not declared, to the date fixed by the Board for redemption
(the "Redemption Date").
 
         (b) The Corporation  shall not redeem pursuant to this paragraph any of
the Series  G-3  Preferred  Stock at any time  outstanding  until all  dividends
accrued  and in arrears  upon all Series G-3  Preferred  Stock then  outstanding
shall have been paid for all past dividend periods, and until full dividends for
the then  current  dividend  period  on all  Series  G-3  Preferred  Stock  then
outstanding,  other  than the  shares to be  redeemed,  shall  have been paid or
declared and the full amount thereof set apart for payment.
 
         (c) Notice of any  redemption of shares of Series G-3  Preferred  Stock
pursuant  to this  paragraph  shall be mailed at least 30, but not more than 60,
days  prior to the  redemption  date to each  holder of  shares  of  Series  G-3
Preferred  Stock to be redeemed,  at such holder's  address as it appears on the
transfer  agent's books.  Any notice which is mailed as herein provided shall be
conclusively  presumed to have been duly given,  whether or not the  stockholder
receives such notice;  and failure to give such notice by mail, or any defect in
such notice,  to the holders of any shares  designated for redemption  shall not
affect the validity of the proceedings for the redemption of any other shares of
Series G-3 Preferred  Stock. On or after the date fixed for redemption as stated
in such notice,  each holder of the shares called for redemption shall surrender
the certificate or certificates evidencing such shares to the Corporation at the
place  designated  in such  notice and shall  thereupon  be  entitled to receive
payment of the Redemption Price.
 
         (d) Shares of the Series G-3  Preferred  Stock  shall be deemed to have
been redeemed immediately prior to the close of business on the Redemption Date,
the right to receive dividends and distributions  shall cease to accrue from and
after the Redemption Date, and the rights of the holder thereof,  except for the
right to receive the Redemption  Price in accordance  herewith,  shall cease and
terminate on the Redemption  Date. As promptly as practical  after the surrender
of such  shares  as  aforesaid,  the  Corporation  shall pay to the  holder  the
Redemption  Price for each share of Series G-3 Preferred  Stock  surrendered for
redemption.
 
3.       Voting Rights.
 
         In addition to any special voting rights provided to the holders of the
Series G-3 Preferred  Stock as or part of a separate series or class pursuant to
paragraph  9,  any  provision  of  the  Certificate  of   Incorporation  of  the
Corporation  and any other voting rights  provided by law, each holder of Series
G-3  Preferred  Stock  shall be entitled to one vote in respect of each share of
stock held by him of record on the books of the Corporation on all matters voted
upon by the  stockholders,  such votes to be counted together with those for any
other  shares of capital  stock having the right to vote on all such matters and
not separately as a class or group.
 
                                      -9-
<PAGE>
 
4.       Dividends.
 
         (a) The  holders  of shares  of Series  G-3  Preferred  Stock  shall be
entitled to receive cumulative cash dividends, when and as declared by the Board
of Directors out of funds legally available  therefor,  at an annual rate, based
upon $19.59 per share,  which  amount shall be  proportionately  adjusted in the
event of any stock  dividend or  distribution  in shares of Series G-3 Preferred
Stock,  any  subdivision,  combination or  reclassification  of the  outstanding
shares of Series G-3 Preferred Stock, or any other similar action,  equal to the
prime rate to  commercial  borrowers  posted by the  Northern  Trust  Company of
Chicago on January 1 or July 1 immediately  preceding the next dividend  payment
date and no more,  before any dividend or distribution in cash or other property
(other  than  dividends  payable  in stock  ranking  junior  to the  Series  G-3
Preferred Stock as to dividends and upon  liquidation) on any class or series of
stock of the Corporation  ranking junior to the Series of G-3 Preferred Stock as
to  dividends  or on  liquidation  shall be  declared  or pair or set  apart for
payment.
 
         (b)  Dividends  on the  Series  G-3  Preferred  Stock  shall be payable
semi-annually,  when and as  declared by the Board of  Directors  on June 30 and
December 31 of each year,  commencing the first June 30 or December 31 after the
date of the initial issuance of shares of the Series G-3 Preferred Stock, except
that if such date is a Saturday,  Sunday or legal  holiday  then such  dividends
shall be payable on the first immediately succeeding calendar day which is not a
Saturday, Sunday or legal holiday, to holders of record on the respective record
dates not exceeding sixty days preceding such dividend  payments dates as may be
determined  by the  Board  of  Directors  in  advance  of the  payment  of  each
particular dividend.
 
         (c) Dividends on the Series G-3 Preferred Stock shall be cumulative and
accrue  from and after the date of  original  issuance  thereof,  whether or not
declared  by the  Board of  Directors.  Accruals  or  dividends  shall  not bear
interest.
 
         (d) No  dividend  may be declared on any other class or series of stock
ranking  junior  or on a  parity  with  the  Series  G-3  Preferred  Stock as to
dividends in respect of any dividend  period  unless there shall also be or have
been  declared  on the  Series  G-3  Preferred  Stock  like  dividends  for  all
semi-annual  periods  coinciding with or ending before such semi-annual  period,
ratably in proportion to the respective annual dividend rates fixed therefor.
 
5.       Liquidation Rights.
 
         (a) In the event of any dissolution,  liquidation, or winding up of the
Corporation, whether voluntary or involuntary, the holders of outstanding shares
of the Series G-3  Preferred  Stock shall be  entitled  to  receive,  before any
payment  or  distribution  of  assets of the  Corporation  or  proceeds  thereof
(whether  capital or  surplus)  shall be made to or set apart for the holders of
any class of common  stock of the  Corporation  or any other  class or series of
stock ranking junior to the Series G-3 Preferred Stock upon  liquidation,  cash,
per share,  in an amount  equal to 95% of the book value per share of the Common
Stock on the date of  liquidation  plus a sum  equal  to all  dividends  on such
shares  accrued and unpaid thereon to the date of final  distribution,  but they
shall be entitled to no further payment.  If, upon any liquidation,  dissolution
or winding up of the  Corporation,  the assets of the  Corporation,  or proceeds
thereof,  distributable  among the holders of the Series G-3 Preferred  Stock or
any other  class of  Preferred  Stock  ranking  on a parity  with the Series G-3
Preferred Stock as to payments upon liquidation, dissolution or winding up shall
be  insufficient to pay in full the  preferential  amount  aforesaid,  then such
assets, or the proceeds thereof, shall be distributed among such holders ratably
in accordance with the respective  amounts which would have been payable on such
shares if all amounts  payable  thereon  were paid in full.  For the purposes of
 
                                      -10-
<PAGE>
 
this  paragraph,  the  voluntary  sale,  lease,  exchange or transfer (for cash,
shares of stock,  securities or other consideration) of all or substantially all
of the property or assets of the Corporation to, or a merger or consolidation of
the  Corporation  with one or more  corporations in which the Corporation is the
corporation  surviving such  consolidation or merger shall not be deemed to be a
liquidation, dissolution or winding up, voluntary or involuntary.
 
         (b) If there is a merger of the Corporation  into or the  consolidation
of the Corporation with another  corporation in which the Corporation is not the
survivor, the holders of Series G-3 Preferred Stock shall retain the same rights
in the surviving corporation as outlined herein.
 
6.       Conversion at Option of the Holder.
 
         Each share of Series G-3 Preferred Stock (other than those shares which
have been  surrendered for redemption  pursuant to paragraph 2) may be converted
at any time after six months  from the date of issuance of such shares of Series
G-3 Preferred Stock, at the option of the holder thereof,  into shares of Common
Stock  of the  Corporation,  on the  terms  and  conditions  set  forth  in this
paragraph.
 
         (a) Each share of Series G-3 Preferred  Stock shall be  convertible  at
the option of the holder thereof,  in the manner hereinafter set forth, into .95
fully paid and nonassessable shares of Common Stock of the Corporation.
 
         (b) In order to effect  the  conversion  of shares  of the  Series  G-3
Preferred  Stock into Common  Stock in  accordance  with these  provisions,  the
holder thereof shall  surrender at the  Corporation's  principle  office or such
other  office  or  agency  as the  Board of  Directors  of the  Corporation  may
designate  the  certificate  or  certificates  therefor,  duly  endorsed  to the
Corporation or in blank,  accompanied by a written notice to the  Corporation at
said office stating that such holder elects to convert all or a specified  whole
number of such shares in accordance  with the  provisions of this  paragraph and
specifying the name or names in which the certificate or certificates for shares
of Common stock are to be issued.  No payment or  adjustment  shall be made upon
any  conversion on account of any dividends  accrued on the shares of the Series
G-3 Preferred Stock surrendered for conversion or an account of any dividends on
the Common Stock issued upon such conversion. Shares of the Series G-3 Preferred
Stock shall be deemed to have been converted  immediately  prior to the close of
business on the date (the  "Conversion  Date") of receipt by the  Corporation of
such notice and the surrender of the  certificate or  certificates  representing
the shares of Series G-3  Preferred  Stock to be  converted  (together  with any
required instrument or transfer),  and the rights of the holder thereof,  except
for the right to receive Common Stock of the Corporation in accordance herewith,
shall  cease on the  Conversion  Date,  and the  person or persons  entitled  to
receive the Common Stock issuable upon such conversion  shall be treated for all
purposes as the record holder or holders of such Common Stock on the  Conversion
Date.  As  promptly  as  practicable  after the  receipt of such  notice and the
surrender of such shares as aforesaid,  the Corporation  shall issue and deliver
at said  office to the  person  or person  entitled  to  receive  the same (i) a
certificate or  certificates  for the number of validly  issued,  fully-paid and
nonassessable  shares of Common Stock  issuable upon such  conversion,  together
with a cash  payment  in lieu  of any  fraction  of any  share,  as  hereinafter
provided,  and  (ii) if less  than the full  number  of  shares  of  Series  G-3
Preferred  Stock evidenced by the  surrendered  certificate or certificates  are
being  converted,  a new  certificate or  certificates,  of like tenor,  for the
number of shares evidenced by such surrendered  certificate or certificates less
the number of shares converted.
 
                                      -11-
<PAGE>
 
         (c)  No  fractional  shares  of  Common  Stock  shall  be  issued  upon
conversion  of shares of the Series  G-3  Preferred  Stock  but,  in lieu of any
fraction of a share of Common Stock which would otherwise be issuable in respect
of the aggregate number of shares of the Series G-3 Preferred Stock  surrendered
for conversion at one time by the same holder, the Corporation shall pay in cash
as an  adjustment  of such  fraction an amount equal to the same fraction of the
Market Price (as defined  herein) of the Common Stock,  on the Conversion  Date,
or, if such date is not a Trading Day (as defined herein), on the next preceding
date which was a Trading Day.
 
         (d) The  Corporation  shall at all times reserve and keep available out
of its authorized but unissued  shares the full number of shares of Common Stock
into  which all  shares of the  Series  G-3  Preferred  Stock  from time to time
outstanding are convertible.
 
         (e) The Corporation will pay any and all issue and other taxes that may
be payable in respect of any issue or delivery of shares on conversion of shares
of the Series G-3 Preferred Stock pursuant  hereto.  The Corporation  shall not,
however,  be  required  to pay any tax which may be  payable  in  respect of any
transfer involved in such issue and delivery of shares in a name other than that
in which the shares so converted were registered,  and no such issue or delivery
shall be made unless and until the person  requesting such issue has paid to the
Corporation the amount of any such tax or has  established,  to the satisfaction
of the Corporation, that such tax has been paid.
 
         (f) Shares of Series G-3 Preferred Stock may not be converted after the
close of  business  on the  third  business  day  preceding  the date  fixed for
redemption  or  conversion  by  the  Corporation  of  such  shares  pursuant  to
paragraphs 6 and 7.
 
7.       Redemption or Conversion at Option of the Corporation.
 
         The  Corporation  shall  have the right  either to redeem or to convert
shares of Series G-3 Preferred Stock pursuant to the following provisions:
 
         (a) Each share of Series G-3  Preferred  Stock,  at any time after five
years  following the date of issuance of such share,  shall be redeemable by the
Corporation,  at its sole option and discretion, at a redemption price of $19.59
per  share,  plus an  amount  equal to all  accrued  and  unpaid  dividends  and
distributions  thereof (hereinafter called "Redemption  Price"),  whether or not
declared,   to  the  date  fixed  by  the  Board  of  Directors  for  redemption
(hereinafter  the "Redemption  Date"),  or convertible by the Corporation at its
sole  option and  discretion,  into .95 fully paid and  nonassessable  shares of
Common Stock of the Corporation.
 
         (b) If less than all of the shares of Series G-3 Preferred Stock at the
time  outstanding are to be redeemed or converted,  the shares so to be redeemed
or converted shall be selected by lot, pro rata (as nearly as may be) or in such
other manner as the Board of Directors may  determine in its sole  discretion to
be fair and proper,  except that in any  redemption  or conversion of fewer than
all of the outstanding shares of Series G-3 Preferred Stock, the Corporation may
redeem or convert  all shares  held by holders of less than 100 shares of Series
G-3 Preferred Stock. Not withstanding the foregoing provisions,  the Corporation
shall not redeem or convert less than all of the Series G-3  Preferred  Stock at
any time outstanding  until all dividends accrued and in arrears upon all Series
G-3 Preferred Stock then outstanding  shall have been paid for all past dividend
periods,  and until full dividends for the then current  dividend  period on all
Series  G-3  Preferred  Stock  then  outstanding,  other  than the  shares to be
redeemed  or  converted,  shall have been paid or  declared  and the full amount
thereof set apart for payment.
 
                                      -12-
<PAGE>
 
         (c)  Notice of any  redemption  or  conversion  of shares of Series G-3
Preferred Stock pursuant to this paragraph shall be mailed at least thirty (30),
but not less than sixty (60) days prior to the Redemption Date or the date fixed
by the Board for conversion (the  "Corporation  Conversion Date") to each holder
of shares of Series G-3  Preferred  Stock to be redeemed or  converted,  at such
holder's  address  as it appears  on the books of the  Corporation.  In order to
facilitate the redemption or conversion of shares of Series G-3 Preferred Stock,
the Board of Directors may fix a record date for the determination of holders of
shares of Series G-3  Preferred  Stock to be redeemed or converted not more than
sixty (60) days prior to the date fixed for such redemption or conversion.
 
         (d) Any notice which is mailed as herein provided shall be conclusively
presumed to have been duly given,  whether or not the stockholder  receives such
notice;  and failure to give such notice by mail,  or any defect in such notice,
to the holders of any shares  designated for redemption or conversion  shall not
affect the validity of the  proceedings  for the redemption or conversion of any
other  shares of Series  G-3  Preferred  Stock.  On or after the  Redemption  or
Corporate  Conversion  Date as stated in such notice,  each holder of the shares
called  for  redemption  or  conversion   shall  surrender  the  certificate  or
certificates  evidencing such shares to the Corporation at the place  designated
in such notice and shall  thereupon be entitled to receive either the redemption
price,  in the case of a redemption,  or a certificate or  certificates  for the
number of validly issued,  fully-paid and  nonassessable  shares of Common Stock
issuable in the case of a  conversion,  together  with a cash payment in lieu of
any  fraction of any share,  as  hereinafter  provided.  If less than all shares
represented by any such surrendered certificate are redeemed or converted, a new
certificate shall be issued representing the unredeemed or unconverted shares.
 
         (e) No  payment  or  adjustment  shall be made upon any  redemption  or
conversion on account of any  dividends  accrued on the shares of the Series G-3
Preferred  Stock  surrendered  for redemption or conversion or on account of any
dividends on the Common Stock issued upon such redemption or conversion.  Shares
of the Series  G-3  Preferred  Stock  shall be deemed to have been  redeemed  or
converted  immediately  prior to the close of business on the Redemption Date or
Corporation  Conversion  Date, and the rights of the holder thereof,  except for
the right to receive the Redemption  Price or Common Stock of the Corporation in
accordance  herewith,   shall  cease  on  the  Redemption  Date  or  Corporation
Conversion  Date, and the person or person  entitled to receive the Common Stock
issuable  in the case of  conversion  shall be treated  for all  purposes as the
record  holder or holders of such  Common  Stock on the  Corporation  Conversion
Date.
 
         (f)  No  fractional  shares  of  Common  Stock  shall  be  issued  upon
conversion  of shares of the Series  G-3  Preferred  Stock  but,  in lieu of any
fraction of a share of Common Stock which would otherwise be issuable in respect
of the aggregate number of shares of the Series G-3 Preferred Stock  surrendered
for conversion at one time by the same holder, the Corporation shall pay in cash
as an  adjustment  of such  fraction an amount equal to the same fraction of the
Market  Price (as  defined  herein),  of the Common  Stock,  on the  Corporation
Conversion Date, or, if such date is not a Trading Day (as defined  herein),  on
the next preceding date which was a Trading Day.
 
         (g) The  Corporation  shall at all times reserve and keep available out
of its authorized but unissued  shares the full number of shares of Common Stock
into  which all  shares of the  Series  G-3  Preferred  Stock  from time to time
outstanding are convertible.
 
         (h) The Corporation will pay any and all issue and other taxes that may
be payable in respect of any issue or delivery of shares on conversion of shares
of the Series G-3 Preferred Stock Pursuant  hereto.  The Corporation  shall not,
 
                                      -13-
<PAGE>
 
however,  be  required  to pay any tax which may be  payable  in  respect of any
transfer involved in such issue and delivery of shares in a name other than that
in which the shares so converted were registered,  and no such issue or delivery
shall be made unless and until the person  requesting such issue has paid to the
Corporation the amount of any such tax or has  established,  to the satisfaction
of the Corporation, that such tax has been paid.
 
         (i) In the case of a redemption,  the  Corporation  may, on or prior to
the Redemption  Date, but not earlier than 45 days prior to the Redemption Date,
deposit with its transfer agent or other  redemption agent selected by the Board
of Directors of the Corporation, as a trust fund, a sum sufficient to redeem the
shares of Series G-3 Preferred  Stock called for  redemption,  with  irrevocable
instructions  and authority to such transfer agent or other  redemption agent to
give or complete the notice of redemption  thereof and to pay to the  respective
holders of such shares of Series G-3  Preferred  Stock as evidenced by a list of
such holders  certified by an officer of the  Corporation,  the Redemption Price
upon surrender of their  respective  share  certificates.  Such deposit shall be
deemed to constitute  full payment of such shares of Series G-3 Preferred  Stock
to their holders;  and from and after the date of such deposit,  notwithstanding
that any  certificates  for such shares of Series G-3 Preferred  Stock shall not
have been surrendered for cancellation,  the shares represented thereby shall no
longer be deemed outstanding,  the rights to receive dividends and distributions
shall cease to accrue from and after the Redemption  Date, and all rights of the
holders of the shares of Series G-3 Preferred  Stock called for  redemption,  as
stockholders  of the  Corporation  with respect to such shares,  shall cease and
terminate,  except the right to receive the Redemption Price,  without interest,
upon the  surrender of their  respective  certificates,  and except the right to
convert their shares into Common Stock as provided in paragraph 6 hereof,  until
the close of business on the Redemption  Date. In case the holders of any shares
shall not, within six years after such deposit,  claim the amount  deposited for
redemption  thereof,  such transfer agent or other redemption agent shall,  upon
demand,  pay over to the  Corporation  the balance of such amount so  deposited.
Thereupon,  such transfer agent or other  redemption  agent shall be relieved of
all  responsibility  to the holders  thereof and the sole right of such  holders
shall be as general  creditors of the Corporation.  To the extent that shares of
Series G-3 Preferred Stock called for redemption are converted into Common Stock
prior to the Redemption  Date, the amount deposited by the Corporation to redeem
such shares  shall  immediately  be returned to the  Corporation.  Any  interest
accrued on any funds so deposited shall belong to the Corporation,  and shall be
paid to it from time to time on demand.
 
8.       Distribution of Reclassification of Series G-3 Preferred Stock in the
         Event of Distribution or Reclassification of Common Stock or Class B
         Common Stock; Adjustment of Conversion Ratio.
 
         (a) In the event the  Corporation  shall at any time after the issuance
of Series G-3 Preferred Stock pay a dividend or make a distribution in shares of
Common Stock or Class B Common Stock or subdivide or reclassify its  outstanding
shares of Common Stock or Class B Common  Stock into a greater  number of shares
of Common  Stock or Class B Common  Stock,  respectively,  then a  proportionate
dividend,  distribution,  subdivision  or  reclassification  of the  outstanding
Series G-3 Preferred  Stock shall also be effected,  as of the effective date of
the applicable  distribution  or adjustment  with respect to the Common Stock or
Class B Common Stock. In such event, the Redemption Price per share specified in
these provisions shall be reduced proportionately as to all shares of Series G-3
Preferred  Stock  outstanding or thereafter  issued and the annual  dividend per
share specified in these  provisions  shall be adjusted as provided in paragraph
4.
 
                                      -14-
<PAGE>
 
         (b) In the event the  outstanding  Common Stock or Class B Common Stock
of the Corporation is hereinafter combined into a smaller number of shares, then
the  rate  of   conversion   only,   specified   herein,   shall   be   adjusted
proportionately.
 
9.       Relative Rights of Preferred Stock.
 
         So long as any of the Series G-3  Preferred  Stock is  outstanding  the
Corporation will not:
 
         (a) Declare,  or pay, or set apart for payment,  any  dividends  (other
than  dividends  payable in stock  ranking  junior to  the Series G-3  Preferred
Stock as to dividends and upon  liquidation) or make any distribution in cash or
other property on any other class or series of stock of the Corporation  ranking
junior  to the  Series  G-3  Preferred  Stock  either  as to  dividends  or upon
liquidation and will not redeem,  purchase or otherwise  acquire,  any shares of
any such  junior  class or  series if at the time of  making  such  declaration,
payment, distribution, redemption, purchase or acquisition the Corporation shall
be in default  with  respect to any dividend  payable on, or any  obligation  to
retire shares of, Series G-3 Preferred Stock, provided that, notwithstanding the
foregoing, the Corporation may at any time redeem, purchase or otherwise acquire
shares of stock of any such junior class in exchange for, or out of the net cash
proceeds  from the sale of, other shares of stock of any junior class or series;
or
 
         (b) Without the affirmative vote or of the holders of two-thirds of all
the Series G-3 Preferred  Stock at the time  outstanding,  given in person or by
proxy,  by  resolution  adopted at an annual or special  meeting  called for the
purpose, at which the holders of the shares of this series shall vote separately
as a class, (i) authorize, create or issue, or increase the authorized or issued
amount,  of any  class or  series  of stock  ranking  prior  to the  Series  G-3
Preferred Stock either as to dividends or upon liquidation; or (ii) amend, alter
or  repeal  any  of  the   provisions  of  the   Corporation's   Certificate  of
Incorporation, By-Laws or Certificate of Designations, preferences and rights of
the Series G-3 Preferred  Stock,  so as to materially  and adversely  affect the
preferences,  rights,  privileges or powers of the Series G-3  Preferred  Stock;
provided, however, that any increase in the authorized Preferred Stock or in the
creation and issuance of other  series of  Preferred  Stock  ranking on a parity
with the  Series  G-3  Preferred  Stock  shall not be deemed to  materially  and
adversely affect such preferences, rights, privileges or powers.
 
10.      Status.
 
         Shares of this series  which have been  converted  into Common Stock or
which have been issued and acquired in any manner by the Corporation (excluding,
until the Corporation  elects to retire them,  shares which are held as treasury
shares but including  shares  redeemed and shares  purchased and retired) shall,
upon  compliance  with any  applicable  provisions  of the laws of the  State of
Delaware,  have the status of authorized and unissued  shares of Preferred Stock
and may be reclassified  and reissued as part of a new series of Preferred Stock
to be created by resolution or  resolutions of the Board of Directors or as part
of any series of  Preferred  Stock  other than this  series,  all subject to the
conditions  and  restrictions  on  issuances  set  forth  in any  resolution  or
resolutions  adopted by the Board of  Directors  providing  for the issue of any
series of Preferred Stock.
 
11.      Priority.
 
         The Series A Preferred Stock,  Common Stock and Class B Common Stock of
the  Corporation  shall rank  junior to,  the Series G-3  Preferred  Stock as to
dividends and upon liquidation.
 
                                      -15-
<PAGE>
 
12.      Certain Definitions.
 
         (a) For the purposes of these  provisions  the terms "Common Stock" and
"Class B Common  Stock"  mean the  Common  Stock of the  Corporation,  $1.00 par
value, and the Class B Common Stock of the Corporation,  $1.00 par value, as the
same exist as of the original date of issue of the Series G-3 Preferred Stock or
as such stock may be reconstituted from time to time.
 
         (b) As used in these  provisions,  the term  "Market  Price" on any day
shall mean the  reported  last  sales  price on such day or, in the case no such
sale takes place on such day, the average of the reported  closing bid and asked
prices, in each case on the New York Stock Exchange,  or, if the Common Stock is
not listed or admitted to trading on such  Exchange,  on the principal  national
securities  exchange on which the Common Stock is listed or admitted to trading,
or, if not listed or admitted to trading on any  national  securities  exchange,
then the average of the closing bid and asked  prices of the Common Stock in the
over-the-counter  market as reported on NASDAQ or a similar  reporting  service;
and the  term  "Trading  Day"  shall  mean a date on which  the New  York  Stock
Exchange (or any  Successor to such  Exchange)  is open for the  transaction  of
business.
 
 
FIFTH:        The number of  directors  of the  Corporation  shall be fixed from
              time to time by, or in the manner  provided in its by-laws and may
              be increased or  decreased  as therein  provided,  but in no event
              shall the number of directors of the Corporation be less than five
              (5) nor more than eighteen (18). The directors shall be classified
              with  respect  to the time for which  they  shall  severally  hold
              office  by  dividing  them  as  equally  as the  total  number  of
              directors will permit into three classes,  and all directors shall
              hold office until their successors are elected and qualified.  The
              term of service of each class of directors shall be three years or
              until the third annual meeting of the  shareholders  following the
              election  of the  class.  The terms of  service  of each  class of
              directors shall expire in successive years. At each annual meeting
              of the  shareholders,  successors to the class of directors  whose
              terms then  expire  shall be elected to serve for the full term of
              three  years or until the third  annual  meeting  of  shareholders
              following  their election.  At each  succeeding  annual meeting of
              shareholders,  the shareholders  shall elect directors only of the
              class whose terms then expire.
 
SIXTH:        The Corporation is to have perpetual existence.
 
SEVENTH:      The private property of the  stockholders  shall not be subject to
              the payment of corporate debts to any extent whatsoever.
 
EIGHTH:       In  furtherance  and not in limitation of the powers  conferred by
              statute, the Board of Directors is expressly  authorized,  subject
              to the protective  conditions or restrictions,  of any outstanding
              series of Preferred Stock fixed by the Board of Directors pursuant
              to the authority  conferred upon the Board of Directors by Article
              Fourth of this  Certificate  of  Incorporation  and Section 151 of
              Title 8 of the Delaware Code:
 
              1. To make, alter or repeal the By-Laws of the Corporation.
 
              2. To authorize  and cause to be executed  mortgages  and liens on
              the real and personal property of the Corporation.
 
                                      -16-
<PAGE>
 
              3.  To set  apart  out of any  of  the  funds  of the  Corporation
              available  for  dividends  a reserve  or  reserves  for any proper
              purpose and to abolish any such  reserve in the manner in which it
              was created.
 
              4. By a majority of the whole  Board,  to  designated  one or more
              committees,  each  committee  to  consist  of two or  more  of the
              Directors of the Corporation.  The Board may designate one or more
              Directors as alternate  members of any committee,  who may replace
              any absent or disqualified member of any meeting of the committee.
              Any such committee, to the extent provided in the resolution or in
              the By-Laws 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,  and may authorize the seal of the
              Corporation  to be  affixed to all papers  which may  require  it;
              provided,  however, the By-laws may provide that in the absence or
              disqualification of any member of such committee or committees the
              member  or  members   thereof  present  at  any  meeting  and  not
              disqualified  from voting,  whether or not he or they constitute a
              quorum,  may  unanimously  appoint  another member of the Board of
              Directors to act at the meeting in the place of any such absent or
              disqualified member.
 
              5.  Subject  to the  provisions  of  Article  Fourteenth  of  this
              Certificate  of  Incorporation,  when  and  as  authorized  by the
              affirmative  vote of the holders of a majority of the stock issued
              and  outstanding  having  voting  power  given  at a  stockholders
              meeting duly called upon such notice as is required by statute, or
              when  authorized  by  the  written  consent  of the  holders  of a
              majority  of the voting  stock  issued and  outstanding,  to sell,
              lease or exchange  all or  substantially  all of the  property and
              assets  of  the  Corporation,   including  its  goodwill  and  its
              corporate franchises, upon which such terms and conditions and for
              such consideration, which may consist in whole or in part of money
              or property  including shares of stock in, and/or other securities
              of  any  other  corporation  or  corporations,  as  its  Board  of
              Directors  shall deem  expedient and for the best interests of the
              Corporation.
 
NINTH:        Whenever a  compromise  or  arrangement  is proposed  between this
              Corporation  and its creditors or any class of them and/or between
              this  Corporation  and its  stockholders or any class of them, any
              court of equitable  jurisdiction  within the State of Delaware may
              on the application in a summary way of this  Corporation or of any
              creditor  or  stockholder  thereof  or on the  application  of any
              receiver or receivers  appointed  for this  Corporation  under the
              provisions  of Section 291 of Title 8 of the  Delaware  Code or on
              the  application  of trustees in dissolution or of any receiver or
              receivers  appointed for this Corporation  under the provisions of
              Section 279 of Title 8 of the Delaware Code order a meeting of the
              creditors  or class of  creditors  and/or of the  stockholders  or
              class of stockholders of this Corporation,  as the case may be, to
              be  summoned  in such  manner  as the  said  court  directs.  If a
              majority  in  number  representing  three-fourths  in value of the
              creditors  or class of  creditors  and/or of the  stockholders  or
              class of  stockholders  of this  Corporation,  as the case may be,
              agree to any compromise or arrangement  and to any  reorganization
              of  this  Corporation  as a  consequence  of  such  compromise  or
              arrangement,  the  said  compromise  or  arrangement  and the said
              reorganizations  shall,  if  sanctioned  by the court to which the
              said application has been made, be binding on all the creditors or
 
                                      -17-
<PAGE>
 
              class of  creditors,  and/or on all the  stockholders  or class of
              stockholders of this Corporation,  as the case may be, and also on
              this Corporation.
 
TENTH:        Meetings of stockholders and of the Board of Directors may be held
              within  or  without  the State of  Delaware,  as the  By-laws  may
              provide.  The books of the Corporation may be kept (subject to any
              provision contained in the statutes) outside the State of Delaware
              at such place or places as may be designated  from time to time by
              the  Board of  Directors  or in the  By-laws  of the  Corporation.
              Elections of Directors  need not be by written  ballot  unless the
              By-laws of the Corporation shall so provide.
 
ELEVENTH:     The  Corporation  reserves  the right to amend,  alter,  change or
              repeal   any   provision   contained   in  this   Certificate   of
              Incorporation,  in the  manner  now  or  hereafter  prescribed  by
              statute,  and all rights  conferred upon  stockholders  herein are
              granted subject to this reservation.
 
TWELFTH:      No contract or transaction between the Corporation and one or more
              of its Directors or officers,  or between the  Corporation and any
              other corporation,  partnership, association or other organization
              in which one or more of its Directors or officers are Directors or
              officers, or have a financial interest,  shall be void or voidable
              solely for this reason,  or solely because the Director or officer
              is  present  at or  participates  in the  meeting  of the Board or
              committee thereof which authorizes the contract or transaction, or
              solely because his or their votes are counted for such purpose if:
 
                   (a)  The  material  facts  as to his  interest  and as to the
              contract or transaction are disclosed or are known to the Board of
              Directors  or the  committee,  and the Board or  committee in good
              faith  authorizes the contract or transaction by a vote sufficient
              for such  purpose  without  counting  the  vote of the  interested
              Director or Directors; or
 
                   (b)  The  material  facts  as to his  interest  and as to the
              contract  or  transaction  are  disclosed  or  are  known  to  the
              stockholders  entitled  to  vote  thereon,  and  the  contract  or
              transaction is specifically  approved in good faith by vote of the
              stockholders; or
 
                   (c) The contract or transaction is fair as to the Corporation
              as of the time it is  authorized,  approved  or  ratified,  by the
              Board of Directors, a committee thereof, or the stockholders.
 
              Common or interested  Directors may be counted in determining  the
              presence of a quorum at a meeting of the Board of  Directors or of
              a committee which authorizes the contract or transaction.
 
THIRTEENTH:   1. 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 he
              is  or  was  a  Director,   officer,  employee  or  agent  of  the
              Corporation or is or was serving at the request of the Corporation
              as a Director,  officer, employee or agent of another corporation,
              partnership,  joint  venture, trust  or other  enterprise, against
 
                                      -18-
<PAGE>
 
              expenses (including attorneys' fees), judgments, fines and amounts
              paid in  settlement  actually  and  reasonably  incurred by him in
              connection  with such action,  suit or  proceeding  if he acted in
              good faith and in a manner he 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 this conduct was unlawful. The termination of any
              action,  suit  or  proceeding  by  judgment,   order,  settlement,
              conviction or upon a plea of nolo  contendere  or its  equivalent,
              shall not, of itself, create a presumption that the person did not
              act in good faith and in a manner which he 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 his conduct was unlawful.
 
              2. 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 he is or was a Director,  officer,  employee or agent of
              the  Corporation,  or is or  was  serving  at the  request  of the
              Corporation as a Director,  officer,  employee or agent of another
              corporation, partnership, joint venture, trust or other enterprise
              against expenses  (including  attorneys' fees) and amounts paid in
              settlement  actually and reasonably  incurred by him in connection
              with the defense or  settlement of such action or suit if he acted
              in good faith and in a manner he  reasonably  believed to be in or
              not opposed to the best  interests of the  Corporation  and except
              that no such  indemnification  shall  be  made in  respect  to any
              claim,  issue or matter as to which  such  person  shall have been
              adjudged  to be liable to the  Corporation  unless and only to the
              extent  that the Court of  Chancery  of  Delaware  or the court in
              which  such  action  or suit  was  brought  shall  determine  upon
              application that despite the adjudication of liability but in view
              of all the  circumstances  of the case,  such person is fairly and
              reasonably entitled to indemnity for such expenses which the Court
              of Chancery or such other court shall deem proper.
 
              3. To the extent that any person referred to in paragraphs 1 and 2
              of this Article  Thirteenth  has been  successful on the merits or
              otherwise in defense of any action, suit or proceeding referred to
              therein or in defense of any claim,  issue or matter  therein,  he
              shall be indemnified against expenses (including  attorneys' fees)
              actually and reasonably incurred by him in connection therewith.
 
              4. Any  indemnification  under  paragraphs 1 and 2 of this Article
              Thirteenth  (unless  made  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  or agent is proper in the  circumstances  because he has
              met the  applicable  standard of conduct set forth in paragraphs 1
              and 2 of this Article Thirteenth. Such determination shall be made
              (a) by the Board of Directors  by a majority  vote of a quorum (as
              defined in the By-Laws of the Corporation) consisting of Directors
              who were not parties to such action, suit or proceeding, or (b) if
              such quorum is not  obtainable,  or even if obtainable a quorum of
              disinterested  Directors so directs,  by independent legal counsel
              in a written opinion, or (c) by the stockholders.
 
              5. Expenses incurred in defending a civil or criminal action, suit
              or  proceeding  may  be  paid by  the  Corporation  in  advance of
 
                                      -19-
<PAGE>
 
              the final  disposition  of such action,  suit or proceeding in the
              manner  provided in  paragraph 4 of this Article  Thirteenth  upon
              receipt  of an  undertaking  by  or on  behalf  of  the  Director,
              officer,  employee  or  agent  to repay  such  amount  if it shall
              ultimately be determined that he is not entitled to be indemnified
              by the Corporation as authorized in this Article Thirteenth.
 
              6. The indemnification and advancement of expenses provided by, or
              granted  pursuant  to other  sections of this  Article  Thirteenth
              shall not be deemed  exclusive  of any other rights to which those
              seeking indemnification or advancement of expenses may be entitled
              under any statute,  by-law,  agreement,  vote of  stockholders  or
              disinterested  Directors  or  otherwise,  both as to action in his
              official  capacity  and as to action  in  another  capacity  while
              holding such office.
 
              7. The  Corporation  shall have  power to  purchase  and  maintain
              insurance  on  behalf  of any  person  who  is or was a  Director,
              officer,  employee  or  agent  of  the  Corporation,  or is or was
              serving at the request of the Corporation as a Director,  officer,
              employee  or  agent of  another  corporation,  partnership,  joint
              venture, trust or other enterprise, against any liability asserted
              against him and incurred by him in any such  capacity,  or arising
              out of his status as such,  whether or not the  Corporation  would
              have the power to indemnify him against such  liability  under the
              provisions of this Article Thirteenth.
 
              8. The indemnification and advancement of expenses provided by, or
              granted  pursuant  to,  this  Article  Thirteenth  shall,   unless
              otherwise  provided when authorized or ratified,  continue as to a
              person who has ceased to be a Director, officer, employee or agent
              and  shall  inure  to the  benefit  of the  heirs,  executors  and
              administrators  of such a person.  Any repeal or  modification  of
              this Article  Thirteenth  shall not adversely  affect any right to
              indemnification  or  advancement  of  expenses  of any  present or
              former  Director,  officer,  employee or agent of the  Corporation
              existing at the time of such repeal or modification.
 
              9. For  purposes of this  Article  Thirteenth,  references  to the
              "Corporation"   shall  include,   in  addition  to  the  resulting
              corporation,    any   constituent   corporation   (including   any
              constituent  of a  constituent)  absorbed  in a  consolidation  or
              merger which, if its separate existence had continued,  would have
              had power and  authority to  indemnify  its  Directors,  officers,
              employees or agents,  so that any person who is or was a Director,
              officer, employee or agent of such constituent corporation,  or is
              or was serving at the request of such constituent corporation as a
              Director,  officer,  employee  or  agent of  another  corporation,
              partnership, joint venture, trust or other enterprise, shall stand
              in  the  same  position  under  the  provisions  of  this  Article
              Thirteenth, with respect to the resulting or surviving corporation
              as he would have with respect to such  constituent  corporation if
              its separate existence had continued.
 
              10. For purposes of this Article Thirteenth,  references to "other
              enterprises"  shall include employee benefit plans;  references to
              "fines" shall  include any excise taxes  assessed on a person with
              respect to any employee  benefit plan;  and references to "serving
              at the request of the Corporation"  shall include any service as a
              Director,  officer,  employee  or agent of the  Corporation  which
              imposes  duties  on,  or  involves  services  by,  such  Director,
              officer,  employee or agent with  respect to an  employee  benefit
 
                                      -20-
<PAGE>
 
              plan, its participants or beneficiaries; and a person who acted in
              good  faith and in a manner he  reasonably  believed  to be in the
              interest  of the  participants  and  beneficiaries  of an employee
              benefit  plan  shall be  deemed  to have  acted  in a manner  "not
              opposed to the best interests of the  Corporation"  as referred to
              in this Article Thirteenth.
 
              11.  If  this  Article   THIRTEENTH  or  any  portion   hereof  is
              invalidated  by any  court  of  competent  jurisdiction,  then the
              Corporation shall nevertheless  provide such  indemnification  and
              advancement of expenses as would  otherwise be permitted under any
              portion  of this  Article  Thirteenth  that  shall  not have  been
              invalidated.
 
FOURTEENTH:   1. Except as set forth in paragraph 2 of this Article  Fourteenth,
              the  affirmative  vote or  consent  of the  holders  of 80% of the
              outstanding  shares  of all  classes  of stock of the  Corporation
              entitled to vote in elections  of  Directors,  considered  for the
              purposes  of  this  Article  Fourteenth  as one  class,  shall  be
              required to:
 
                   (a) for the  adoption  of any  agreement  for the  merger  or
              consolidation   of  the   Corporation   with  or  into  any  other
              Corporation (as hereinafter defined), or
 
                   (b) to authorize any sale, lease, exchange,  mortgage, pledge
              or  other  disposition  of  all,  or  substantially  all,  or  any
              Substantial  Part (as  hereinafter  defined)  of the assets of the
              Corporation  or any  Subsidiary  (as  hereinafter  defined) to any
              Other Corporation, or
 
                   (c) to authorize the issuance or transfer by the  Corporation
              of any Substantial  Amount (as hereinafter  defined) of securities
              of the Corporation in exchange for the securities or assets of any
              Other  Corporation if, in any such case, as of the record date for
              the  determination of stockholders  entitled to notice thereof and
              to vote thereon or consent  thereto such Other  Corporation is the
              Beneficial Owner (as hereinafter  defined) of more than 10% of the
              outstanding  shares of the stock of the  Corporation  entitled  to
              vote in elections of Directors considered for the purposes of this
              Article  Fourteenth as one class. Such affirmative vote or consent
              shall be in  addition to the vote or consent of the holders of the
              stock  of  the  Corporation   otherwise   required  by  law,  this
              Certificate of Incorporation or any agreement or contract to which
              the Corporation is a party.
 
              2. The provisions of paragraph 1 of this Article  Fourteenth shall
              not be applicable  to any  transaction  described  therein if such
              transaction is approved by resolution of the Board of Directors of
              the  Corporation,  provided  that (a) a majority of the members of
              the Board of Directors voting for the approval of such transaction
              were duly  elected  and acting  members of the Board of  Directors
              prior to the time  such  Other  Corporation  shall  have  become a
              Beneficial  Owner of more  than 10% of the  shares of stock in the
              Corporation  entitled to vote in  elections of  Directors;  or (b)
              such transaction is approved by resolution  unanimously adopted by
              the whole Board of Directors of the  Corporation at any time prior
              to the consummation thereof.
 
                                      -21-
<PAGE>
 
              3. The  Board  of  Directors  shall  have  the  power  and duty to
              determine  for the  purposes of this  Article  Fourteenth,  on the
              basis of  information  known to such Board,  if and when any Other
              Corporation  is the  Beneficial  Owner  of  more  than  10% of the
              outstanding shares of stock of the Corporation entitled to vote in
              elections  of  Directors,  and any  such  determination  shall  be
              conclusive   and  binding  for  all   purposes  of  this   Article
              Fourteenth.
 
              4. As used in this Article  Fourteenth,  the following  terms have
              the meanings as set forth below:
 
              (a) "Other  Corporation"  means any person,  firm,  corporation or
              other entity, other than a subsidiary of the Corporation.
 
              (b) "Substantial  Part" means any assets having a then fair market
              value, in the aggregate, of more than $5,000,000.
 
              (c)  "Subsidiary"  means any  corporation in which the Corporation
              owns,  directly  or  indirectly,  more  than  50%  of  the  voting
              securities.
 
              (d)  "Substantial  Amount" means any securities of the Corporation
              having a then fair market value of more than $5,000,000.
 
              (e) "Beneficial Owner" of stock means a person, or an affiliate or
              "associate"  of such  person  (as such  terms are  defined in Rule
              12b-2 of the General Rules and  Regulations  under the  Securities
              Exchange  Act of 1934 as in  effect  on  February  1,  1978),  who
              directly or indirectly  controls the voting of such stock,  or who
              has any option,  warrants,  conversion  or other rights to acquire
              such stock.
 
FIFTEENTH:    In  addition to any  separate  class  vote,  if any,  which may be
              required by law, the affirmative vote of the holders of 80% of the
              outstanding  shares  of all  classes  of stock of the  Corporation
              entitled to vote in the election of  Directors,  such  outstanding
              shares of stock to be considered  as one class,  shall be required
              in order  to amend or  repeal  any of the  provisions  of  Article
              Fourteenth or subsection 5 of Article Eighth of the Certificate of
              Incorporation.  The affirmative  vote of the holders of 66-2/3% of
              the outstanding  shares of all classes of stock of the Corporation
              entitled to vote in the election of  Directors,  such  outstanding
              shares of stock to be considered  as one class,  shall be required
              in order to amend or repeal any of the provisions of Article Fifth
              of  the   Certificate  of   Incorporation.   The  same  respective
              stockholder   vote   requirements   prescribed  by  the  foregoing
              provisions  of this  Article  Fifteenth  shall  also be  required,
              respectively, in order to amend or repeal the respective foregoing
              provisions of this Article Fifteenth  prescribing such stockholder
              vote requirement.
 
SIXTEENTH:    1.  The   provisions  of  this  Article   Sixteenth   shall  apply
              independently  of any  other  provision  of  this  Certificate  of
              Incorporation  if any Other  Corporation (as hereinafter  defined)
              seeks  to  accomplish  a  Business   Combination  (as  hereinafter
              defined)  within the ten year period  following the date the Other
              Corporation became an Acquiring Entity (as hereinafter defined).
 
                                      -22-
<PAGE>
 
              2. As used in this Article  Sixteenth,  the following  terms shall
              have the meanings as set forth below:
 
              (a) "Acquiring  Entity" means any Other  Corporation which is, and
              for fewer than ten years has been,  the  Beneficial  Owner of more
              than 10% of the  outstanding  shares  of stock of the  Corporation
              entitled to vote in elections  of  Directors,  considered  for the
              purposes of this paragraph as one class.
 
              (b)  "Affiliate"  or "Associate" of a person have the same meaning
              as is assigned to such terms under Rule 12b-2 of the General Rules
              and  Regulations  (the  "Regulations")  under the  Securities  and
              Exchange Act of 1934 as in effect on March 1, 1983.
 
              (c) "Beneficial Owner" of stock means a person, or an Affiliate or
              Associate of such person, who is a "beneficial owner" of stock, as
              such term is defined  under Rule  13d-3 of the  Regulations  as in
              effect on March 1, 1983,  except  that,  without  limitation,  any
              shares  of  voting  stock of the  Corporation  that any  Acquiring
              Entity,  or any Affiliate or Associate of such  Acquiring  Entity,
              has the  right  to  acquire  pursuant  to any  agreement,  or upon
              exercise of conversion rights,  warrants or options,  or otherwise
              shall be deemed beneficially owned by the Acquiring Entity.
 
              (d) "Business  Combination"  means any transaction as described in
              paragraph 1 of Article Fourteenth.
 
              (e)  "Continuing  Director"  means a Director  duly elected to the
              Board of Directors prior to the time the Other Corporation  became
              an Acquiring Entity, and the term "Outside Directors" shall mean a
              Director who is not (i) an officer or employee of the  Corporation
              or any  relative of an officer or  employee  or (ii) an  Acquiring
              Entity, or an officer, Director,  employee, Affiliate or Associate
              of an Acquiring Entity, or a relative of any of the foregoing.
 
              (f) "Other  Corporation"  shall have the same meaning as set forth
              in paragraph 4 of Article Fourteenth.
 
              For the purposes of this Article Sixteenth, the Board of Directors
              shall  have the  power  and  duty to  determine,  on the  basis of
              information known to such Board, if and when any Other Corporation
              is or has become an Acquiring Entity. Any such determination shall
              be  conclusive  and  binding  for all  purposes  of  this  Article
              Sixteenth.
 
 
              3. Except as set forth in paragraph 4 of this  Article  Sixteenth,
              the  affirmative  vote of the holders of 66-2/3% of all classes of
              stock  of  the  Corporation  entitled  to  vote  in  elections  of
              directors,  considered  for this  purpose as one class,  excluding
              stock of which the Acquiring Entity is the Beneficial Owner, shall
              be required  for  approval of any  Business  Combination  with any
              Other  Corporation  unless  all of the  following  conditions  are
              fulfilled:
 
              (a) The cash or fair  market  value or other  consideration  to be
              received per share by common  stockholders  of the  Corporation in
 
                                      -23-
<PAGE>
 
              such  Business  Combination  will not, at the time of the Business
              Combination is effected, be less than the greater of:
 
                   (i)  the  highest  per  share  price   (including   brokerage
              commissions and/or soliciting dealers' fees) paid by the Acquiring
              Entity  in  acquiring  any of its  holdings  of the  Corporation's
              Common Stock; or
 
                   (ii) an  amount  bearing  a  percentage  relationship  to the
              market price of the  Corporation's  Common Stock immediately prior
              to the public  announcement of such Business  Combination equal to
              the  highest  percentage  relationship  that any per  share  price
              (including brokerage  commissions and/or soliciting dealers' fees)
              theretofore paid by the Acquiring Entity for any of its holding of
              the  Corporation's  Common  Stock bore to the market price of such
              Common Stock immediately prior to the transaction resulting in the
              acquisition of such Common Stock; or
 
                   (iii) the book value of the Corporation's  Common Stock as of
              the  end  of  the  most  recent  calendar  quarter  determined  in
              accordance with generally accepted accounting principles; or
 
                   (iv) an amount  calculated  by  multiplying  the earnings per
              share  of the  Corporation's  Common  Stock  for the  four  fiscal
              quarters  immediately  preceding the record date for determination
              of  stockholder  entitled to vote on such Business  Combination by
              the then  price  earnings  multiple  of the  Acquiring  Entity  as
              customarily computed and reported in the financial press.
 
              Appropriate  adjustments  shall be made with respect to (i), (ii),
              (iii) and (iv) above for  recapitalization  and for stock  splits,
              stock  dividends,   and  like   distributions.   For  purposes  of
              subparagraph  3(a) of this  Article  Sixteenth,  the  term  "other
              consideration to be received" shall include,  without  limitation,
              capital stock of this Corporation  retained by its existing public
              stockholders in the event of a Business  Combination in which this
              Corporation is the surviving corporation.
 
              (b) After the Other Corporation has become an Acquiring Entity:
 
                   (i) the Corporation's  Board of Directors shall have included
              at all times  representation  by one or more Continuing  Directors
              unless  the  lack of such  representation  results  entirely  from
              either death or normal  retirement  under  retirement  policies in
              effect prior to the time the Other Corporation became an Acquiring
              Entity; and
 
                   (ii)  there  shall  have  been no  reduction  in the  rate of
              dividends  payable on the  Corporation's  Common  Stock  except as
              required  by law  or as  may  be  necessary  to  insure  that  the
              Corporation  is  not  in  breach  of  any  covenant  in any of its
              agreements for borrowed money, or except as may have been approved
              by a majority vote of the Continuing Directors; and
 
                   (iii) such Acquiring Entity shall not have acquired any newly
              issued  shares  of  stock,   directly  or  indirectly,   from  the
              Corporation  (except upon  conversion  of  convertible  securities
              acquired  by it prior to  becoming  an  Acquiring  Entity  or as a
 
                                      -24-
<PAGE>
 
              result of a pro rata stock dividend or stock split, or except with
              the approval of a majority vote of the Continuing Directors).
 
              (c) Without  the  approval  of a majority  vote of the  Continuing
              Directors,  such Acquiring  Entity shall not have (i) received the
              benefit  directly  or  indirectly  (except  proportionately  as  a
              stockholder) of any loans, advances,  guarantees, pledges or other
              financial assistance provided by the Corporation, or (ii) made any
              major changes in the Corporation's business or equity structure.
 
              (d) A timely mailing shall have been made to the  stockholders  of
              this   Corporation   containing  in  a  prominent  place  (i)  any
              recommendations as to the advisability (or  inadvisability) of the
              Business  Combination  that the  Continuing  Directors  or Outside
              Directors  may choose to state,  if there are at the time any such
              Directors,   and  (ii)  the  opinion  of  a  reputable  nationally
              recognized investment banking or financial services firm as to the
              fairness (or not) of the terms of the Business  Combination,  from
              the point of view of the  stockholders of this  Corporation  other
              than the  Acquiring  Entity  (such  firm to be  engaged  solely on
              behalf of such other stockholders, to be paid a reasonable fee for
              its services by this Corporation upon receipt of such opinion,  to
              be a firm that has not previously  been  significantly  associated
              with the  Acquiring  Entity and, if there are at the time any such
              Directors,  to  be  selected  by  a  majority  of  the  Continuing
              Directors and Outside Directors).
 
              4. The provisions of paragraph 3 of this Article  Sixteenth  shall
              not  be  applicable  to  any  Business  Combination  if  (a)  such
              transaction is approved by resolution  unanimously  adopted by the
              whole Board of Directors of the  Corporation  at any time prior to
              the  consummation  thereof;  or (b) the  Business  Combination  is
              solely between this  Corporation and another  corporation,  50% or
              more of the voting stock of which is owned by this Corporation and
              none of which is owned by the Acquiring  Entity;  provided that if
              this Corporation is not the surviving entity,  each stockholder of
              this  Corporation  receives the same type of consideration in such
              transaction in proportion to his stock holdings and the provisions
              of this Article  Sixteenth  of the  Corporation's  Certificate  of
              Incorporation are continued in effect or adopted by such surviving
              corporation   as  part  of  its  Articles  of   Incorporation   or
              Certificate  of  Incorporation,  as the case may be,  without  any
              charge.
 
              5.  In  connection  with  a  proposed  Business  Combination,  the
              Continuing  Directors may retain special outside legal counsel, an
              investment  banking  firm,  an  accounting  firm,  and such  other
              experts  that they,  in their  discretion,  may deem  necessary or
              appropriate to assist them in their evaluation of the transaction,
              all at the expense of the Corporation.
 
              6. In  addition  to any other  provision  of this  Certificate  of
              Incorporation,  there shall be required to amend, alter, change or
              repeal  any  of the  provisions  of  this  Article  Sixteenth  the
              affirmative vote of the holders of 66-2/3% of all classes of stock
              of the  Corporation  entitled to vote in elections  of  Directors,
              considered for this purpose as one class, excluding stock of which
              an Acquiring Entity, if any, is the Beneficial Owner.
 
                                      -25-
<PAGE>
 
              7. Nothing in this Article Sixteenth shall be construed to relieve
              an Acquiring Entity from any fiduciary  obligation imposed by law.
              The conditions and voting  requirements of this Article  Sixteenth
              shall be in addition  to the  conditions  and voting  requirements
              imposed  by  law  or  other  provisions  of  this  Certificate  of
              Incorporation, including, without limitation, Article Fourteenth.
 
SEVENTEENTH:  No Director of the Corporation  shall be personally  liable to the
              Corporation  or its  shareholders  for  monetary  damages  for any
              breach of fiduciary duty as a Director;  provided,  however,  that
              this  Article   Seventeenth  shall  not  eliminate  or  limit  the
              liability of a Director (1) for any breach of the Director's  duty
              of loyalty to the Corporation or its shareholders, (2) for acts or
              omissions  not  in  good  faith  or  which   involve   intentional
              misconduct or a knowing violation of law, (3) under section 174 of
              the General  Corporation Law of the State of Delaware,  or (4) for
              any  transaction  from  which the  director  derived  an  improper
              personal benefit.  If the General  Corporation Law of the State of
              Delaware is amended after the approval by the  shareholders of the
              Corporation  of  this  provision  to  authorize  corporate  action
              further   eliminating  or  limiting  the  personal   liability  of
              Directors,  then the  liability  of a Director of the  Corporation
              shall be eliminated or limited to the fullest extent  permitted by
              the  General  Corporation  Law  of the  State  of  Delaware  as so
              amended.
 
 
 
 
 
 
 
                         [Signatures on following page]
 
 
<PAGE>
 
 
 
                   Any repeal or modification  of the forgoing  paragraph by the
              shareholders  of the  Corporation  shall not adversely  affect any
              right or protection of a director of the  Corporation  existing at
              the time of such repeal or modification.
 
 
              IN WITNESS WHEREOF,  said Old Republic  International  Corporation
has caused this Restated  Certificate of Incorporation to be signed and executed
by its President and it's attested by its Secretary.
 
 
                                         OLD REPUBLIC INTERNATIONAL CORPORATION
 
 
                                            /s/ Aldo C. Zucaro
                                         --------------------------------------
                                         Aldo C. Zucaro, Chairman, President &
                                                  Chief Executive Officer
 
ATTEST:
 
 
/s/ Spencer LeRoy, III
------------------------------------
Spencer LeRoy III, Sr. VP, Secretary
        & General Counsel