EXHIBIT 3.2

 

                                    Composite

 

                              Amended and Restated

 

          Certificate of Incorporation of Talk America Holdings, Inc.

 

     FIRST:  The  name  of  the corporation is Talk America Holdings, Inc.  (the

"Corporation").

 

     SECOND:  The  address  of  the  registered office of the Corporation in the

State  of  Delaware is No. 1209 Orange Street, in the City of Wilmington, County

of New Castle. The name of the Corporation's registered agent at such address is

The  Corporation  Trust  Company.

 

     THIRD:  The  purposes for which the Corporation was formed are to engage in

any  lawful  act  or  activity for which corporations may be organized under the

Delaware  General  Corporation  Law.

 

     FOURTH:  The  total  number  of  shares  of  all  classes of stock that the

Corporation  shall  have  authority  to  issue  is  105,000,000,  consisting  of

5,000,000  shares  of  Preferred Stock, par value $0.01 per share, as more fully

described in Section A. below (the "Preferred Stock"), and 100,000,000 shares of

Common  Stock,  par value $0.01 per share, as more fully described in Section B.

below  (the  "Common  Stock").

 

     A. Preferred Stock. The shares of Preferred Stock may be divided and issued

from  time  to  time  in one or more series as may be designated by the Board of

Directors  of  the  Corporation, each such series to be distinctly titled and to

consist of the number of shares designated by the Board of Directors. All shares

of  any  one  series  of Preferred Stock so designated by the Board of Directors

shall  be alike in every particular, except that shares of any one series issued

at  different  times may differ as to the dates from which dividends thereon (if

any)  shall accrue or be cumulative (or both). The designations, preferences and

relative,  participating,  optional  or  other  special rights (if any), and the

qualifications,  limitations  or restrictions thereof (if any), of any series of

Preferred  Stock  may  differ from those of any and all other series at any time

outstanding.  The  Board  of  Directors  of  the Corporation is hereby expressly

vested with authority to fix by resolution the powers, designations, preferences

and  relative, participating, optional or other special rights (if any), and the

qualifications, limitations or restrictions and (if any), of the Preferred Stock

and  each  series  thereof  which  may  be designated by the Board of Directors,

including,  but without limiting the generality of the foregoing, the following:

 

          1.  The  voting  rights and powers (if any) of the Preferred Stock and

each  series  thereof;

 

          2.  The  rates  and  times  at  which, and the terms and conditions on

which,  dividends (if any) on the Preferred Stock, and each series thereof, will

be  paid  and  any  dividend  preferences  or  rights  of  cumulation;

 

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          3.  The  rights  (if  any) of holders of the Preferred Stock, and each

series  thereof,  to  convert the same into, or exchange the same for, shares of

other classes (or series of classes) of capital stock of the Corporation and the

terms  and  conditions for such conversion or exchange, including provisions for

adjustment of conversion or exchange prices or rates in such events as the Board

of  Directors  shall  determine;

 

          4.  The  redemption  rights  (if  any)  of  the Corporation and of the

holders of the Preferred Stock, and each series thereof, and the times at which,

and  the  terms  and  conditions  on which, the Preferred Stock, and each series

thereof,  may  be  redeemed;  and

 

          5. The rights and preferences (if any) of the holders of the Preferred

Stock,  and  each series thereof, upon the voluntary or involuntary liquidation,

dissolution  or  winding  up  of  the  Corporation.

 

     B.  Common  Stock.  All shares of Common Stock shall be identical and shall

entitle  the  holders  thereof  to  the  same  rights  and  privileges.

 

          1.  Dividends.  When  and  as  dividends  are declared upon the Common

Stock,  whether  payable  in  cash,  in  property  or  in shares of stock of the

Corporation,  the  holders  of  Common Stock shall be entitled to share equally,

share  for  share,  in  such  dividends.

 

          2. Voting Rights. Each holder of Common Stock shall be entitled to one

vote per  share.

 

          3.  Liquidation.  In  the  event  of  any  liquidation, dissolution or

winding  up  of the Corporation, whether voluntary or involuntary, after payment

shall  have  been  made to holders of the Preferred Stock of the full amounts to

which  they shall be entitled as stated and expressed herein or as may be stated

and expressed pursuant hereto, the holders of Common Stock shall be entitled, to

the  exclusion of the holders of the Preferred Stock, to share ratably according

to the number of shares of the Common Stock held by them in all remaining assets

of  the  Corporation  available  for  distribution  to  its  stockholders.

 

     C.  Other Provisions. No holder of any of the shares of any class or series

of stock or options, warrants or other rights to purchase shares of any class of

stock  or of other securities of the Corporation shall have any preemptive right

to  purchase  or  subscribe for any unissued stock of any class or series or any

additional  shares of any class or series to be issued by reason of any increase

of  the  authorized  capital stock of the Corporation of any class or series, or

bonds,  certificates of indebtedness, debentures or other securities convertible

into  or  exchangeable  for  stock of the Corporation of any class or series, or

carrying  any  right  to  purchase  stock  of  any class or series, but any such

unissued  stock,  additional  authorized shares of any class or series of stock,

securities  convertible into or exchangeable for stock, or carrying any right to

purchase  stock,  may  be  issued  and disposed of pursuant to resolution of the

Board of Directors to such persons, firms, corporations or associations, whether

any such persons, firms, corporations or associations are holders or others, and

upon  such  terms  as  may  be deemed advisable by the Board of Directors in the

exercise  of  its  sole  discretion.

 

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     FIFTH:  The  Board  of Directors shall consist of not less than one (1) nor

more than fifteen (15) persons, the exact number to be fixed and determined from

time  to  time by resolution of the Board of Directors or, prior to the election

of  an  initial  Board  of  Directors,  by  the  Incorporator.

 

     SIXTH:  Prior  to the first closing date for the initial public offering of

the  common  stock  of  the Corporation, the directors shall be elected for such

term  as  is specified by the Incorporator (prior to the issuance of shares) who

elected  such  directors or by the shareholders which elected such directors, as

the  case  may  be.  On  and after the first closing date for the initial public

offering  of the common stock of the Corporation, the directors shall be divided

into three (3) classes, as nearly equal in number as possible, known as Class 1,

Class  2,  and  Class  3. The initial directors of Class 1 shall serve until the

third (3rd) annual meeting of shareholders. At the third (3rd) annual meeting of

the  shareholders, the directors of Class 1 shall be elected for a term of three

(3)  years and, after expiration of such term, shall thereafter be elected every

three (3) years for three (3) year terms. The initial directors of Class 2 shall

serve until the second (2nd) annual meeting of shareholders. At the second (2nd)

annual meeting of the shareholder, the directors of Class 2 shall be elected for

a  term  of  three  (3)  years  and,  after  the  expiration of such term, shall

thereafter  be  elected  every  three  (3)  years  for three (3) year terms. The

initial directors of Class 3 shall serve until the first (1st) annual meeting of

shareholders.  At  the first (1st) annual meeting of shareholders, the directors

of  Class  3  shall  be  elected  for  a  term of three (3) years and, after the

expiration  of  such term, shall thereafter be elected every three (3) years for

three  (3)  year terms. Each director shall serve until his successor shall have

been  elected  and  shall  qualify,  even  though  his  term of office as herein

provided  has  otherwise  expired,  except  in  the  event of his earlier death,

resignation,  removal  or  disqualification.  This Article Sixth, or any portion

thereof,  may  be  changed  by a by-law amendment which is adopted by all of the

then  members  of  Board  of  Directors.

 

     SEVENTH:  In  furtherance  and not in limitation of the powers conferred by

the  laws of the State of Delaware, the Board of Directors of the Corporation is

expressly  authorized  and empowered to make, alter or repeal the By-laws of the

Corporation,  subject  to  the  power  of the stockholders of the Corporation to

alter  or  repeal  any  By-law  made  by  the  Board  of  Directors.

 

     EIGHTH:  The  Corporation  reserves  the right at any time and from time to

time  to  amend,  alter,  change  or  repeal  any  provisions  contained in this

Certificate of Incorporation; and other provisions authorized by the laws of the

State  of  Delaware at the time in force may be added or inserted, in the manner

now  or  hereafter prescribed by law; and all rights, preferences and privileges

of whatsoever nature conferred upon stockholders, directors or any other persons

whomsoever  by  and pursuant to this Certificate of Incorporation in its present

form  or  as hereafter amended are granted subject to the right reserved in this

Article.

 

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     NINTH:  To the fullest extent permitted by the Delaware General Corporation

Law  as  the  same  exists  or  may  hereafter  be  amended,  a director of this

Corporation  shall  not  be  liable  to  the Corporation or its stockholders for

monetary  damages  for  breach  of  fiduciary  duty  as  a  director.

 

     TENTH:  The  name  and  mailing  address  of  the  Incorporator  is:

 

 

               Mr.  Daniel  Borislow

               Tel-Save

               22  Village  Square

               New  Hope,  PA  18938